Kanban is a

• Visual management method for any work that follows a process.

Japanese term
• Visualizes both the process(workflow) and actual work.
means
• Goal is to identify potential bottlenecks in process and fix them.
Billboard/Signboard

• Started in 1940
•
History

Developed by Taiichi Ohno for Toyota automotive in Japan

Brief

• Created as simple planning system, to control and manage work and inventory
• In 2004, David Anderson adapted in other fields like software, IT, services(HR,
legal, marketing etc. )

TO-DO DOING DONE Helps to improve flow

Visual Reduce lead time
Information Delivers value faster to customer
Improves predictability and quality

• Start with what you are doing now • Visualize flow of work
• Agree to pursue incremental, •
Core Practices
Limit WIP
Fundamental

•
Principle

evolutionary change Manage Flow

• Respect current roles & • Make process policies explicit
responsibilities • Implement feedback loop
• Encourage act of leadership at all • Improve collaboratively and evolve
levels. experimentally
 EXAMPLE

• A great example of a Kanban system is used today in Tokyo Imperial Palace

Gardens in Japan.
• The staff here uses a foolproof method to limit the flow of visitors.
• Each visitor receives a plastic card at the entrance, which must be returned
while leaving the garden.
• Because the total number of cards is meaningfully limited, only so many visitors
can stroll through the palace in a given time.
• New visitors have to wait in line till the next card/slot is available.
• The access to the palace is free, but it is granted only if the pre-allotted cards
are available.
 2 BIN KANBAN SYSTEM
• 2 – bin Kanban system relies on visual cards as signals for
replenishing the inventory.
• Two bins with materials necessary for production are
placed on factory floor.
• A kanban card is attached to each bin.
• The production team draws materials from one of the
bins.
• Once bin is empty, request is sent for more materials.
(Kanban card attached to bin is used as signal)
• Until material arrives, team relies on second bin.

2 – bin system optimization ADVANTAGES

• C = No. of Kanban cards, equals no. of bins used. • It makes sure production is never idle
• S = Size of the bin • Optimized inventory volume
• L = Lead time to replenish the empty bin • Reduced waste
• D = Daily demand for particular material • Reduction in total cost
• Reduced waiting time
(C-1)*S = L * D • Minimized lead time
 3 BIN KANBAN SYSTEM

3 – bin system connects different

part of work processes.
(In some cases, company to outside
supplier)

• One bin is placed at the factory where products are made, one at store
where parts are held, and one at supplier.
• When factory runs out of parts, empty bin is sent to store to be refilled.
• The store fills the bin and sends its own emptied bin to supplier.
• The supplier then sends full bin to store