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Kanban Lean Manufacturing System

How Does Kanban Work?

Imagine a factory that produces widgets. The production of this widget requires two parts being put together at the factory. Let's call them Part A and Part B.

The manufacturing process consists of three "stages": Tthe receiving area where parts A and B are received and stored. The "assembly" area where parts A and B are put together to form the widget. And the shipping area, where the widgets are shipped off to various stores.

The two parts are stored in separate bins. The completed widgets are placed on pallets. When a pallet is shipped to a store, an empty pallet is returned to the worker's area.

The factory might operate something like this:

The factory worker starts by getting one of Part A and one of Part B from their respective bins. They assemble a widget. The widget is placed on a pallet.
When the pallet is full it goes to the shipping area.

When a store needs widgets, the pallet is shipped to the store. The pallet of completed widgets stays in the shipping area until it is shipped. If there is a pallet in the shipping area, the worker knows not to make any more widgets.

The kanban in this case is the pallet. If it is empty, more widgets must be made. If it is full, no widgets will be made.

Likewise, in the bins for Part A and Part B there is a label. This label informs workers that when the level of parts drops below a certain level, more should be ordered.

Obviously, in a high volume factory there might be 20 widget assembling stations and 30 pallets. Each individual system must be continually modified to find the exact right level for the kanban to signal that a action is required.

Kanban, while incredibly efficient, and requiring less predictive modeling than many other organizational techniques like MRP, requires a firm commitment to continual improvement. This method is known as kaizen. It is another crucial element to becoming leaner and more efficient.

What Is Kanban? | Benefits of Kanban | How Does Kanban Work? | Kanban & Pull Production | JIT