How do you handle inventory exceptions and emergencies with Kanban?

1 What is Kanban?

Kanban is a Japanese word that means "signboard" or "card". It is a system of inventory control that uses visual cues, such as cards, bins, or labels, to signal the status of each item or process. For example, a Kanban card can indicate the quantity, location, and specifications of a product or material. A Kanban bin can show the minimum and maximum levels of inventory. A Kanban label can mark the priority, quality, or destination of a shipment. The main goal of Kanban is to ensure that the right amount of inventory is available at the right time and place, without overstocking or understocking.

2 How does Kanban work?

Kanban works on the principle of pull, rather than push. This means that inventory is replenished only when there is a demand from the downstream process or the customer, rather than based on forecasts or schedules. This way, Kanban reduces the risk of overproduction, excess inventory, and waste. Kanban also works on the principle of continuous improvement, or kaizen. This means that the system is constantly monitored and adjusted to eliminate bottlenecks, defects, and delays. Kanban also encourages collaboration and communication among all the stakeholders involved in the inventory flow, from suppliers to customers.

3 What are the benefits of Kanban?

Kanban offers many advantages for inventory control, such as minimizing inventory costs, improving customer satisfaction, enhancing operational efficiency, and fostering a culture of teamwork and problem-solving. It does this by reducing the amount of inventory needed, avoiding obsolescence, spoilage, and theft. It also ensures the right products arrive at the right time and quality. Furthermore, it streamlines the inventory flow and reduces the need for storage space, handling, and transportation. Finally, Kanban involves everyone in the inventory process and empowers them to make decisions and improvements.

4 What are the challenges of Kanban?

Kanban can face some challenges, such as requiring a high level of coordination and cooperation among all the parties involved in the inventory flow. It also depends on the accuracy and reliability of the visual signals and the data they represent, and may not be able to cope with sudden changes in demand or supply. Any miscommunication, discrepancy, inconsistency, or ambiguity can lead to disruptions, confusion, mistakes, inventory shortages or surpluses, and affect the quality and delivery of the products.

5 How do you handle inventory exceptions and emergencies with Kanban?

Kanban is a powerful system of inventory control that can help you achieve your business goals, but it is not immune to unexpected situations that can disrupt normal operations. To handle inventory exceptions and emergencies with Kanban, you should create a contingency plan that identifies potential causes and effects, defines the roles and responsibilities of each team member, establishes the procedures and protocols for dealing with them, prepares the resources and tools for handling them, and reviews and updates the plan regularly. This will help you minimize the impact of inventory exceptions and emergencies on your performance and reputation.