Kanban is a Japanese term that translates to "billboard" or "signboard". It is a scheduling system used in lean manufacturing and just-in-time (JIT) production. Kanban is a system that helps manage work by balancing the demands with available capacity, and by improving the handling of system-level bottlenecks.
Work items are visualized to give participants a view of progress and process, from start to finish—usually via a Kanban board. Work is pulled as capacity permits, rather than work being pushed into the process when requested.
History of Kanban
The Kanban system was developed by Taiichi Ohno, an industrial engineer at Toyota, as a system to improve and maintain a high level of production. Ohno was inspired by the American supermarket system, where customers obtained their own items and new items were restocked as needed, not in surplus. This "pull" system contrasted with the "push" system used by most companies, where production was forecasted and items were produced in advance of need.
Ohno implemented this system at Toyota with great success, and it has since been adopted by many other companies worldwide. The Kanban system has evolved over time, but its core principles remain the same: visualize work, limit work in progress, and improve flow.
Visualize Work
Visualizing the workflow is a fundamental principle of Kanban. This is often done using a Kanban board, which is a tool that helps teams see the work that needs to be done, is in progress, and has been completed. The board is divided into columns, each representing a stage in the workflow. Work items, represented by cards, move from left to right across the board as they progress through the stages.
Visualizing the work in this way helps teams understand the state of the work at any given time. It can highlight bottlenecks, where work is piling up because it can't be processed quickly enough. It can also show when work is being completed faster than it's coming in, which could indicate a need for more work or a reallocation of resources.
Limit Work in Progress
Limiting work in progress (WIP) is another key principle of Kanban. By limiting the amount of work that can be in progress at any one time, teams can focus on completing tasks rather than starting new ones. This helps to reduce the time it takes for a work item to be completed, known as the cycle time, and improves the flow of work.
WIP limits are usually set for each stage of the workflow. If a stage reaches its WIP limit, no new work can be started in that stage until some work is completed and moved to the next stage. This encourages teams to work together to complete tasks and prevent bottlenecks.
Benefits of Kanban
Kanban offers many benefits in the realm of operational excellence. It promotes efficiency, productivity, and a smooth workflow. It also encourages continuous improvement, a key aspect of operational excellence. By visualizing the workflow and limiting work in progress, teams can identify and address issues in the process, leading to improved performance over time.
Furthermore, Kanban can help reduce waste in the process. By only producing what is needed when it's needed, companies can avoid overproduction and excess inventory, both of which are forms of waste. This can lead to cost savings and a more efficient use of resources.
Efficiency and Productivity
Kanban can significantly improve efficiency and productivity. By visualizing the workflow and limiting work in progress, teams can focus on the tasks at hand rather than juggling multiple tasks at once. This can lead to a reduction in the time it takes to complete tasks, known as the cycle time, and an increase in the number of tasks completed in a given time period, known as the throughput.
Furthermore, by identifying and addressing bottlenecks in the process, teams can ensure that work flows smoothly from one stage to the next. This can reduce delays and downtime, further improving efficiency and productivity.
Continuous Improvement
Kanban promotes a culture of continuous improvement. By regularly reviewing the workflow and performance metrics, teams can identify opportunities for improvement and implement changes to the process. This iterative approach to improvement helps teams to continuously improve their performance and achieve operational excellence.
Furthermore, the visual nature of the Kanban board makes it easy for teams to see the impact of their improvements. This can motivate teams to continue seeking ways to improve and can foster a culture of innovation and excellence.
Implementing Kanban
Implementing Kanban in an organization involves several steps. First, the workflow must be visualized and the work items must be defined. Then, the WIP limits must be set for each stage of the workflow. Finally, the team must be trained on the Kanban system and the Kanban board must be maintained and updated regularly.
It's important to note that implementing Kanban is not a one-time event, but a continuous process. The workflow and WIP limits should be reviewed and adjusted regularly based on the team's performance and the changing needs of the organization. Furthermore, the team should be encouraged to suggest improvements to the process and to take ownership of their work.
Visualizing the Workflow
The first step in implementing Kanban is to visualize the workflow. This involves mapping out the steps that a work item goes through from start to finish. Each step becomes a column on the Kanban board, and work items are represented by cards that move from left to right across the board as they progress through the steps.
Visualizing the workflow in this way helps teams understand the process and see where work is at any given time. It can also highlight bottlenecks and other issues in the process, which can then be addressed to improve the flow of work.
Setting WIP Limits
Once the workflow has been visualized, the next step is to set WIP limits for each stage of the workflow. These limits determine the maximum number of work items that can be in progress at each stage at any one time. If a stage reaches its WIP limit, no new work can be started in that stage until some work is completed and moved to the next stage.
Setting WIP limits helps to prevent overloading of stages and ensures that work flows smoothly through the process. It also encourages teams to work together to complete tasks and prevent bottlenecks.
Conclusion
Kanban is a powerful tool for achieving operational excellence. It promotes efficiency, productivity, and continuous improvement, all key aspects of operational excellence. By visualizing the workflow, limiting work in progress, and continuously improving the process, teams can achieve a high level of performance and deliver value to their customers.
While implementing Kanban requires effort and commitment, the benefits it offers make it a worthwhile investment. Whether you're a small team looking to improve your workflow or a large organization seeking to achieve operational excellence, Kanban can help you reach your goals.
