How do you control inventory and material flow with kanban?

1 What is kanban?

Kanban is a Japanese word that means "signboard" or "billboard". It was originally developed by Toyota in the 1940s as a way to synchronize the supply of parts with the production of cars. Kanban uses a pull system, where each process only requests and receives the materials it needs from the previous process, rather than a push system, where each process produces and sends as much as possible to the next process. This way, kanban helps to avoid overproduction, excess inventory, and bottlenecks.

4 How do you implement kanban?

To successfully implement kanban in your industrial engineering projects, you must identify the steps and activities that add value to your product or service from the customer's perspective. You should then visualize your current process and determine the inputs, outputs, and constraints of each step. Additionally, you need to select the type and number of signals, the location and size of the areas, and establish rules and policies for moving and replenishing the signals. Finally, you should track and measure key indicators of your system such as cycle time, throughput, lead time, and inventory levels, making adjustments based on data and feedback.

5 What are the challenges of kanban?

Kanban is not a one-size-fits-all solution and may not work in every situation or industry. Challenges of kanban include managing variability and uncertainty, balancing demand and capacity, and changing the culture and mindset. Kanban relies on stable and predictable demand and supply, which may not be the case for some products or services that have seasonal, fluctuating, or complex customer needs. It also requires a balance between the demand and the capacity of each process, which may be difficult to achieve or maintain in some cases, especially when there are external factors such as market changes, supplier issues, or quality problems. Finally, implementing kanban involves a shift from a push to a pull system, which may require a change in the culture and mindset of the people involved, such as managers, workers, and customers; these individuals may resist or misunderstand the new approach.

6 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?