The Kanban system is a simple system for managing work. It uses cards or digital tools to show tasks and their status. It helps teams work better together by visualizing work and making sure everyone knows what to do.
The Kanban system is mainly used within the factory, but it can also be applied to purchasing products from outside.
Kanban System Definition And Brief Introduction
In India, some software teams use the Kanban system to manage their work in the manufacturing process. The teams make a visual plan of their tasks and only take on new ones when they have space, which helps them work better.
What are Kanban Core Practices?
Kanban Core Practices are simple methods that businesses use to manage their work better and get things done faster. There are 5 Kanban core practices. These are as mentioned below:
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Visualizing your work process is the first key step. This means you need to clearly understand how work gets done, what the tasks are, and what risks might come up. It's about drawing a map of your workflows from start to finish.
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Next, it’s important to not have too much work going on at once. Make sure your work plate isn’t too full. This helps keep things under control and makes sure work moves smoothly without any pile-ups.
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Managing the flow is about how work moves through your process. You need to make sure all the tasks are moving along nicely without getting stuck.
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Then, you need to have clear rules and understandings. This is about knowing exactly how things should be done, what's allowed, and what's not. It’s about setting clear guidelines so everyone knows what to do.
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Lastly, always look for ways to do things better and try new ideas. Improvement and development go hand in hand in the Kanban system of inventory management. This means constantly checking if there's a better way to do your work and being open to changing things up. It keeps your process fresh and up-to-date.
What is Push Production Vs Pull Production?
The push and pull methods in the Kanban system are two different approaches. These methods have different ways of getting things done. Each way has its own benefits and drawbacks. Let us have a look at them in detail:
| Aspect | Push Production | Pull Production |
|---|---|---|
| Definition | Push Production is based on projected or anticipated demands. | Pull Production is based on actual customer demand. |
| Operation | Businesses produce goods in advance, often based on forecasts. | Businesses start producing only after receiving orders. |
| Inventory Management | Tends to build inventory based on expected demand. | Keeps minimal inventory; produces goods as needed. |
| Demand Prediction | Relies on predictions of customer demand. | Based on real-time demand data. |
| Risk of Overproduction | Higher risk, as production is not always aligned with actual demand. | Lower risk, as production is directly linked to customer orders. |
| Flexibility | Less flexible, as it relies on forecasts and plans. | More flexible, and adapts to actual demand fluctuations. |
| Efficiency | Can be efficient in stable markets with predictable demand. | More efficient in markets with variable or unpredictable demand. |
| Suitability | Better for businesses with predictable and stable demand. | Ideal for businesses where demand can fluctuate. |
| Stock Management | Risk of excess stock or stockouts if predictions are inaccurate. | Reduced risk of excess stock, more responsive to market changes. |
| Customer Response | Slower response to changing customer needs. | Faster response to customer orders and changing needs. |
Read Also: What Is Corporate Performance Management (CPM)?
How Does Kanban Pull Production Work?
When utilizing a Kanban pull system, the pull signal gets activated as soon as the cards' count in the column falls below the designated limit.
This means that the previous task is over, and a new task can be started. Once the limit of the work in progress is met and the remaining one is not completed, no more tasks can be done any further.
What Types Of Kanban Systems Are There?
There are different types of Kanban systems designed to improve workflow and productivity in various industries and businesses. Those are:
1. Production Kanban
It comprises all the parts on the list required for production. These parts are necessary for the production process to be carried out smoothly.
2. Withdrawal Kanban
These types of Kanban function when there is an emergency signal that needs to be given. It usually functions during times of emergency and is mostly used to withdraw any kind of production process.
3. Emergency kanban
The emergency Kanban signals a sudden change in the number of products required. This is a very important type of Kanban system as it indicates an emergency change in the number of products required.
4. Express Kanban
This Kanban is used when there is an unexpected shortage. Through the express Kanban, the part which the production system falls short of is brought.
Read Also: What Is Professional Services Automation? The Beginner's Guide To PSA
Benefits Of The Kanban System
The Kanban system has many benefits for businesses. It helps improve efficiency, reduce waste, and make things work better. The benefits of the Kanban production system are:
1. Visibility and transparency
One of this system's main benefits is visibility and transparency. This helps the team to understand the workflow, which further helps in better work management.
2. Flexibility
Kanban's system focuses on prioritizing the ongoing task. Only once it's over does it try to bring in more tasks from the backlog.
3. Less time, more output
The entire team is responsible for the smooth functioning of the work and focuses on providing better services. Kanban tries to optimize the workflow. It is done so that more output is produced and only a little time is consumed.
4. Reduce waste
Kanban aims at distributing more resources and reducing waste. It only orders that much of the work required once the previous inventory is over.
Read Also: What Is Seasonal Inventory & How to Manage It Effectively
What Are The Rules Of Kanban?
Kanban has easy rules that make work smoother and help teams get things done faster and better. Here are some of the rules:
1. Not pass defective products
Kanban's main rule is to pass good and valuable products. It only stops unusable products from passing through.
2. Take only the required amount
Kanban takes only the required amount. It orders new inventory after the previous amounts are over. In this way, wastage is also prevented.
3. Produce exact quantity
Kanban does not waste products. It produces the exact amount needed, nothing more or less than that. This rule of the Kanban system makes it a user-friendly system.
4. Level up the production
One of the most important rules of Kanban is to level up the production. To achieve a better workflow and put the production units to work, it is important to level up the production.
5. Improve the production
Another main rule of the Kanban system is to improve production. When the production system improves there will be customer satisfaction. When customer satisfaction is there, more work is expected to arrive.
Important Kanban Words You Should Learn
To make the most of Kanban and improve your work processes, it's helpful to know these important Kanban terms. Here are some of the important words:
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Backlog: The backlog term refers to leftover work in a kanban board that needs to be completed.
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Blocker: A blocker is a hurdle on the way to completion of a process. Work cannot be completed on time because of the disturbance created by it.
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Blocker clustering: It is a technique to identify the blockers in the Kanban workflow. This needs to be done so as to carry on with the smooth functioning of the production.
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Board: The board is the place where all kinds of workflow are displayed. It is done so as to keep a record of the things that are going on and need to be done.
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Card: There are various works that need to be done in a Kanban system. All these works range from the smallest to the biggest. The card is the smallest unit of work on the Kanban board.
Calculating Kanban Quantities
The basic formula to calculate kanban quantities is: N= DT(1+X)/C
Here, N is the number of Kanban cards. D is the demand for the part. T is the time from the beginning till the end. X is the number of items saved during a shortage of inventory. C is the capacity that the containers can hold.
Enhance Your Kanban System With The Best!
TranZact is the best software that will help in enhancing your Kanban system. It provides a user-friendly interface that is easy to use. TranZact provides the required tools to improve inventory management.
FAQs On Kanban System
1. Why should Kanban project management software be used?
The Kanban project management system should be used because:
- It helps the team organize their work
- It helps in the smooth functioning of the work and its completion
2. Why use the Kanban productivity system?
The Kanban productivity system should be used because it helps organize and track various activities. The various activities need to be tracked and organized so as to improve the production process.
3. What is risk management in Kanban?
In Kanban, risk management is known as lowering or managing the risk factors. This is an important part of the Kanban because it is used to lower any kinds of risk levels associated with production.
4. What is inventory management in Kanban?
Maintaining the products used for production is known as inventory management. These products need to be maintained thoroughly. They must be kept in good condition and checked from time to time to ensure smooth production.
5. What is the Kanban control system?
Starting from workflow, inventory, and many other things, controlling is a key requirement in a Kanban system. Everything controlled within the Kanban system is known as its Kanban control system.
6. What are the Kanban system implementation steps?
The Kanban system implementation steps are:
- Visualizing workflow
- Application of work in process
- Explicit policymakingManaging flow
