How do you evaluate the performance and impact of your kanban system?

1 Define your goals and expectations

Before you can measure the effectiveness of your kanban system, you need to define what you want to achieve with it. What are your goals and expectations for your production process, your inventory levels, your quality standards, and your customer satisfaction? How do you align your kanban system with your strategic objectives and your market conditions? You should have clear and realistic targets for each aspect of your kanban system, and communicate them to your team and stakeholders.

2 Track your throughput and lead time

One of the main benefits of a kanban system is that it can increase your throughput and reduce your lead time. Throughput is the number of units or tasks that you complete in a given period of time, while lead time is the time it takes from receiving an order to delivering the product or service. By tracking these metrics, you can see how well your kanban system is balancing your supply and demand, and how fast you are meeting your customer needs. You can use tools like kanban boards, charts, and reports to monitor your throughput and lead time, and identify any bottlenecks or delays.

3 Monitor your work in progress and inventory

Another key feature of a kanban system is that it limits your work in progress (WIP) and inventory to the optimal level for your process. WIP is the number of units or tasks that are in progress at any given time, while inventory is the amount of raw materials, components, or finished goods that you have in stock. By monitoring these metrics, you can see how well your kanban system is minimizing your waste, maximizing your space, and avoiding overproduction or underproduction. You can use tools like kanban cards, bins, or signals to control your WIP and inventory, and adjust them according to your demand fluctuations.

4 Measure your quality and customer satisfaction

A third benefit of a kanban system is that it can improve your quality and customer satisfaction. Quality is the degree to which your products or services meet or exceed your specifications and standards, while customer satisfaction is the extent to which your customers are happy with your products or services. By measuring these metrics, you can see how well your kanban system is enhancing your value proposition, reducing your defects and errors, and increasing your customer loyalty and retention. You can use tools like quality control checks, feedback surveys, or reviews to assess your quality and customer satisfaction, and implement corrective actions if needed.

5 Compare your results and benchmarks

After you have collected and analyzed your metrics, you need to compare them with your goals and expectations, as well as with your industry or market benchmarks. This will help you evaluate the performance and impact of your kanban system, and determine if you are meeting or exceeding your standards and expectations. You can use tools like dashboards, scorecards, or reports to display and compare your results and benchmarks, and highlight your strengths and weaknesses.

6 Continuously improve your kanban system

Finally, you need to use your evaluation findings to continuously improve your kanban system. You should identify the root causes of any problems or gaps, and implement solutions or improvements. You should also celebrate and reward any successes or achievements, and share best practices or lessons learned. You should regularly review and update your goals and expectations, as well as your kanban system parameters and rules, to adapt to any changes or opportunities. You should also involve your team and stakeholders in the improvement process, and solicit their feedback and suggestions.

7 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?