What Is Kanban In Manufacturing And How To Use It

Kanban is a visual signaling system that helps manage workflow, especially in environments where production is triggered by demand rather than by a predetermined schedule. This approach is highly essential when using kanban in manufacturing, as it helps reduce waste and enhance efficiency, aligning with the principles of lean manufacturing. 

However, utilizing Kanban properly requires a bit of foresight and lessons in practicality. Thus, in this article, we’re going to cover how to use it properly used and implement it within manufacturing industries. 

What Is Kanban In Lean Manufacturing?

Lean manufacturing aims to maximize output by minimizing waste. As part of this approach, the Kanban framework plays a crucial role in managing workflow. Kanban is designed to create a smooth flow of materials that are just enough to complete each task. This helps maintain productivity while minimizing excess inventory and reducing delays. 

Kanban cards track the progress of a specific item. When an item is moved to the next stage of production, the Kanban card is also moved with it. Thus, both keep moving across the production line until they are finished.

Once an item has passed a certain phase of production, a new order for replenishment of the same item is placed. New materials are then delivered to produce a new item, and the process of moving that item along the stages of production begins again. This ‘pull’ system, as opposed to a ‘push’ system, allows companies to control their inventory and produce required products based on demand. 

Additionally, Kanban also focuses on kaizen—a mindset that champions continuous improvement. In the context of lean manufacturing, this involves making constant small incremental changes to the workflow until optimal production capacity has been achieved.

Benefits Of Using Kanban In Manufacturing

The introduction of Kanban can lead to several benefits for manufacturing companies, such as:

  • Reduction in Inventory: The pull-based system of Kanban helps in limiting inventory, which in turn helps in reducing storage costs and improving the cash flow. This approach also helps reduce the risks of having outdated inventory on hand.
  • Improved Quality: One of the core principles of Kanban is continuous improvement—a constant, ongoing process that ensures that any bottlenecks are rectified. As a result, Kanban systems in manufacturing often lead to higher quality products.
  • Increased Efficiency: Since Kanban provides a visual overview of the entire workflow, it can help companies in improving the overall manufacturing process, thus leading to reduced lead times and increased efficiency.
  • Flexibility: Kanban adherence to Agile principles means that it can effectively handle changing customer demands and market conditions, making it easier for manufacturers to respond to any fluctuations.

Challenges Of Implementing Kanban For Manufacturing

While Kanban may seem like a straightforward methodology that’s easy to implement, it isn’t always properly executed due to external factors or difficulties. Some of these include:

  • Resistance to Change: Employees may resist the transition to a Kanban system, particularly if they are accustomed to traditional methods. Overcoming this resistance requires effective communication, training, and support.
  • Lack of Teamwork: Kanban relies on co-operation between employees to properly function. However, if there’s a lack of teamwork either due to a lack of understanding Kanban or any resistance to change, the whole system cannot function as intended.
  • Supplier Reliability: Kanban systems rely on suppliers to deliver materials on time and in the correct quantities. If suppliers are unreliable, or if there are any disruptions within the supply chain, it can lead to slower production and increased costs.
  • Complexity: Implementing Kanban in complex manufacturing environments with multiple product lines and processes can be challenging. Careful planning and customization are required to ensure that the system is effective and efficient.

Steps To Implement Kanban Production In Lean Manufacturing

While the steps for implementing a Kanban system may vary from company to company, there are some universal steps that all companies must follow. These steps include:

  • Process Mapping: Identify the value-added steps in the production process and eliminate any non-value-added activities.
  • Inventory Analysis: Determine the optimal inventory levels for each component or product.
  • Kanban Card Design: Create Kanban cards or electronic signals to trigger replenishment orders.
  • Implementation: Gradually introduce Kanban cards into the production process, starting with low-risk areas.
  • Continuous Improvement: Monitor the performance of the Kanban system and adjust as needed to optimize efficiency.

Manufacturing Kanban Board Example

 

Kanban in manufaturingLet’s look at some Kanban board examples in a typical manufacturing process to better understand how Kanban is used in this industry.

The Kanban board above is split into four columns that denote various stages of production. Each column holds tasks that are all within that production stage. However, once a task is finished with its requirement, it moves from one column to the next. Once it reaches the last column and finishes its requirement, the task is taken off the board. 

This type of visual representation allows managers to have a bird’s eye view of the entire process, allowing them to monitor and track progress. They can also determine which tasks need to be completed urgently, making it easy to take the necessary decisions accordingly. 

Parting Words

Since Kanban espouses many principles from lean manufacturing, it’s a natural tool that can help any company establish lean manufacturing practices. However, its usefulness can be hampered by other external factors such as demand fluctuations and company culture. Additionally, implementing Kanban can be challenging due to its inherent complexity, particularly for companies using it for the first time. 

Therefore, managers must consider everything before trying to implement Kanban boards in their workflows. They can also consider various solutions to mitigate these challenges such as providing training for Kanban systems and various other standardized practices.