Kanban (translated from Japanese to mean visual ‘Kan’ card ‘ban’) is a visual signalling system which is used to trigger the supply a process with its needs. In simple terms it is a scheduling system that informs what is required, when it is required and how much is required to perform an operation.
However, it is not an Inventory Control system. Kanban determines a processes production quantities, thereby facilitates JIT production and ordering.
Kanban systems can be a card, a labelled container, a computer order ticket, or other device that is used to signal that more products or parts are needed.
The Kanban contains information on the exact product or component specifications that are needed for the subsequent process step. Kanban is used to control the Work-in-Progress (WiP), production, and inventory flow and by doing so, serves to eliminate over-production.
Different types of Kanban include:
- Supplier – orders given to outside parts suppliers when parts are needed for the assembly lines;
- In-factory – used between processes in a factory; and
- Production – indicate operating instructions for processes within a line.
