How can you implement a Kanban inventory system in your establishment?

1 What is Kanban?

Kanban is a Japanese word that means "signboard" or "visual signal". It is a system of inventory control that uses visual cues, such as cards, bins, labels, or boards, to indicate the status of inventory items and trigger replenishment actions. The basic idea is to keep only the minimum amount of inventory needed to fulfill customer orders, and to replenish it as soon as it is consumed. This way, you can reduce inventory costs, improve cash flow, and avoid overproduction and waste.

2 How does Kanban work?

Kanban works by dividing the inventory process into three stages: supply, work in progress, and demand. Each stage has a limit on how much inventory it can hold, which is determined by the expected demand and the lead time of replenishment. When an inventory item moves from one stage to another, it creates a visual signal that indicates a change in inventory level. For example, when a customer orders a dish, the chef takes the ingredients from the supply stage and moves them to the work in progress stage, where they are prepared and cooked. This creates a gap in the supply stage, which signals the need to order more ingredients from the supplier. When the dish is ready, the chef moves it to the demand stage, where it is served to the customer. This creates a gap in the work in progress stage, which signals the need to start preparing another dish.

3 How can you implement Kanban in your establishment?

Implementing Kanban in your establishment requires four steps. First, you need to identify your inventory items and categories, which can be grouped based on their type, usage, or frequency of replenishment. Second, you should determine the maximum and minimum amounts of inventory that you want to keep in each stage and category, as well as the signals that will indicate them. For example, cards, bins, labels, or boards can be used to show inventory levels and when more or less is needed. Color codes, symbols, or numbers can also be used for clarity. Third, you should arrange your inventory items and signals according to the stages and categories defined. Shelves, racks, refrigerators, freezers, or other storage spaces can be used to organize your inventory items. You may also use software or apps to track and monitor inventory levels and signals electronically. Finally, you need to monitor and adjust your Kanban system by checking inventory levels and signals regularly. You should also review your inventory limits and signals periodically and adjust them as needed.

4 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?