Did you know that the term ‘Kanban’ originates from the Japanese words ‘Kan’ meaning ‘visual,’ and ‘ban’ meaning ‘card or board’? This visual system has revolutionized the manufacturing industry, streamlining processes and significantly improving efficiency. Read on and learn how the Kanban system in manufacturing can change your operations and significantly increase productivity.

What Does Kanban Mean?

Kanban, a term of Japanese origin, literally translates to «visual card». This concept is centered around the use of visual cues, such as signs or boards, to manage and monitor work as it progresses through various stages of a process. Initially conceived and implemented by Toyota Motor Company, Kanban has evolved into a universal methodology for managing workflow at individual, team, and even organizational levels. 

It’s a signaling device that provides authorization and instructions for production or withdrawal of items in a pull system. By enabling maximum efficiency and limiting work-in-progress, Kanban has become a preferred method for designing, managing, and improving flow systems for knowledge work.

What is a Kanban System in Manufacturing?

When it comes to manufacturing, a Kanban system serves as an effective visual management tool that orchestrates the flow of production. It operates on the principles of Just-in-Time (JIT) and lean manufacturing. This system assists in controlling what is produced, in what quantity, and when, thereby eliminating waste and improving efficiency.

A Kanban system in manufacturing essentially uses visual signals—often cards or digital boards—to manage and control the flow of resources and inventory throughout the production process. This approach helps to limit the amount of work in progress at any given time, which in turn reduces overproduction and excess inventory, leading to significant cost savings.

One commonly used method within the Kanban system is the 2-Bin system. In this setup, when the first bin of materials is exhausted, it signals that it’s time to replenish, thereby ensuring a continuous supply of parts without overstocking.

What are Different Types of Kanban?

Kanban comes in various forms tailored to specific needs. Let’s delve into three primary types: Production Kanban, Withdrawal Kanban, and Transportation Kanban.

Production Kanban

The Production Kanban, also known as ‘make kanban’ or ‘manufacturing kanban’, serves as a directive for the manufacturing floor. It is a signal to start producing more parts or products. This type of Kanban helps maintain a steady production rate, matching it with demand to avoid overproduction, and ensuring an efficient use of resources.

Withdrawal Kanban

Next on the list is Withdrawal Kanban, sometimes referred to as ‘move kanban’ or ‘conveyance kanban’. These cards authorize the movement of items from one location to another, typically from storage to the production lines. The purpose is to ensure that only necessary items are moved, reducing unnecessary transportation and handling, which are forms of waste in lean manufacturing.

Transportation Kanban

The third key type is Transportation Kanban. These cards signal the need to transport parts from one process to another within the production facility. They help manage the internal logistics, ensuring a smooth flow of materials and minimizing delays. 

Benefits of a Kanban System in Manufacturing

Manufacturers can reap several benefits by implementing this system:

• Transparency in Workflow: The visual aspect of the system allows everyone to see the progress and status of tasks at a glance.
• Efficiency Boost: By limiting work-in-progress, the system ensures overproduction is avoided, reducing waste. 
• Inventory Control: The system aids in managing inventory levels effectively, curtailing costs linked with excess inventory.
• Flexibility Enhancement: The system enables manufacturers to adjust production smoothly based on customer demand.
• Down Time Reduction: Bottlenecks and issues can be identified promptly, helping to decrease downtime and increase productivity.
• Continuous Improvement: The system’s iterative approach encourages an ongoing culture of refinement, boosting efficiency and effectiveness.

Challenges in Using a Kanban System in Manufacturing

While the system offers many benefits, manufacturers may face certain challenges when implementing it:

• Demand Variability: The system works best with stable demand. Large fluctuations can make it difficult to maintain optimal inventory levels.
• Resistance to Change: Implementing a new system requires a cultural shift. Employees may resist changes initially, making adoption challenging.
• Training and Understanding: Employees need to be trained to use the system effectively. Misunderstanding the principles can lead to inefficiencies.
• Dependency on Suppliers: The system relies on suppliers delivering exactly what’s needed, when it’s needed. Supplier unreliability can disrupt the workflow.
• Maintaining Visual Systems: Keeping the visual elements of the system updated can be time-consuming and might require dedicated resources.
• Over-Reliance on the System: While the system is effective, it should not replace managerial oversight. There’s a risk that problems may go unnoticed if everyone relies solely on the system.

How to Implement a Kanban System in Manufacturing

If you’re a manufacturer and interested in implementing the Kanban system, then you should take a closer look at the following steps involved: 

1. Understand Your Process: Map out your current manufacturing process, identify bottlenecks and inefficiencies.
2. Define Your Workflow Stages: Break down your process into distinct stages. Each stage should represent a step in your production line.
3. Design Your Kanban Board: Create a visual representation of your workflow. This could be a physical board with cards or a digital tool.
4. Set Work-In-Progress Limits: Determine how many tasks can be in each stage at a time. This helps prevent overproduction and ensures a smooth flow of work.
5. Implement Pull System: Rather than pushing work through the system, allow the next stage to ‘pull’ work when they are ready.
6. Train Your Team: Ensure everyone understands the system and knows how to use the Kanban board.
7. Monitor and Adjust: Regularly review the system, identify issues, and make necessary adjustments. This promotes continuous improvement.

Final Thoughts

The Kanban system offers manufacturers an effective approach to visualize workflow, limit work-in-progress, and improve efficiency. By using visual signals like cards or boards, production can be optimized to match demand, reducing waste and costs. 

Though implementing Kanban brings challenges like resistance to change and supplier dependency, the benefits of enhanced flexibility, inventory control, and continuous improvement make it worthwhile if executed properly. 

For more insights on implementing lean techniques like Kanban and boosting manufacturing performance, be sure to explore other articles on this blog.