What is the Kanban system?

The term “Kanban” comes from the Japanese words “kan” and “ban” in a loose translation can be translated as “visible” and “sheet of paper”, but the whole term also means a signboard.

Kanban System

Kanban is a method of controlling the production process, which is based on the actual usage of production materials. Kanban is usually part of the implementation of the Just-in-Time concept in the organization.

This system is a tool used to control the flow of production, semi-finished products and materials in a manner that prevents the formation of unnecessary stocks. The system allows to avoid unnecessary planning of individual processes, through the introduction of so-called supermarkets, which control the production. Each process then produces only what is currently in demand. The second essential element of the Kanban system is a signal – usually a Kanban Card. Kanban card was originally used as a paper form. Nowadays, more and more companies use electronic forms. They are filled out one by one by people responsible for particular stages of production.

Typically, production cards include items such as part number and name, lot size, number of material delivered to the card, conveyor type, and where the material was picked and delivered. In addition to the production cards, there are also order and dispatch cards.

In which enterprises is the Kanban system applicable?

Practically in every enterprise Kanban system can be implemented. Both in service companies and in manufacturing companies. Each organization in its processes uses materials, regardless of their form. These may be, for example, office supplies, documentation, raw materials included in the composition of certain products, or semi-finished products occurring between individual processes.

However, in practice, Kanban works best in low variability and high volume production.

Kanban implementation – requirements

Kanban system implementation process is based on several fundamental phases. These phases are based on defining the value stream, identifying bottlenecks, eliminating waste from production processes, planning the Kanban system, building supermarkets and monitoring the implementation of assumptions – maintaining the system.

Introduction of Kanban system also requires many changes in the organization and proper preparation for the implementation process.

• You should calculate the amount of inventory.
• You should level the production –  it should have low variability.
• You should include the transportation in the production process. Experts recommend the use of so-called logistics trains.
• Each material, product, packaging must have its own marking and designated place of storage. The marking system must be clear to all users.
• You should optimize transport containers . They should contain a certain amount of components. Too small or too large may cause unnecessary turbulence in the process.
• Kanban requires complete involvement of all employees participating in the process.

The Kanban idea

The idea of Kanban can be presented in the following seven points, often referred to as the “7 x none” phrase:

1. No deficiencies.
2. No delays.
3. No inventory.
4. No queues.
5. No idle time.
6. No unnecessary process and control operations.
7. No displacement.

The goal of Kanban is to bring the organization to a situation where there are no shortages, delays, records, queues, idle time, unnecessary process and control operations, and displacements.

What benefits can you expect from implementing Kanban?

After you implement the Kanban system in an organization, you can observe the following effects:

• Reducing the occupied production and storage space.
• Elimination of unnecessary inventory at the workstation, which improves ergonomics.
• Components and tools can be located closer to the place of use, which reduces one of the losses called “unnecessary movements”.
• Better control over material management.
• Increased productivity and process efficiency – the operator focuses on adding value.
• Visualization of production execution status.
• Ability to monitor the pace of production. Kanban shows whether the production realizes the orders in accordance with the production schedule.
• Reduction of production costs.