If you have shopped for project management or enterprise resource planning software recently, you’ve likely come across the term ‘Kanban’, but if you’re like most software buyers, you likely have no idea what ‘Kanban’ means. So, what is Kanban? Kanban is a Japanese word that literally means “card” or “billboard”. In the terms of project management, Kanban is a way of visually organizing production using cards, each of which represents a task or step in the production process.
The system was born in the late 1940’s; Toyota engineers developed the method after noticing the “just-in-time” delivery model used at supermarkets. Instead of ordering product to restock shelves based upon vendor availability, supermarket clerks ordered based upon the current store inventory. The engineers used the “just-in-time” model used by supermarkets as a basis to develop a manufacturing management process that relied on matching inventory with demand in order to increase both quality and throughput.
The result? Kanban. On the manufacturing floor, workers would use a Kanban, or card, to represent steps in the manufacturing process. Adjacent up-and-downstream workstations communicated with one another via the Kanban cards; a container at each station would contain a Kanban that, when received, authorized the station to produce parts and/or ship the full container to the next workstation. The visual nature of using a card or billboard allowed teams to better communicate with one another, reducing waste, maximizing efficiency, and standardizing both instructional signals and processes.
The result? Toyota became the largest, most profitable auto manufacturer in the world. Whether used for development or manufacturing, Kanban has six rules, developed by Toyota, that help ensure a successful implementation. 1. Downstream processes use items only in amounts specified by the Kanban card. 2. Upstream processes produce items only in amounts specified by the Kanban card. 3. Nothing is made, moved, or altered without a corresponding Kanban card.
4. If an item is produced or shipped, it must have a corresponding Kanban card. 5. Errors, defects, or shortages are never sent downstream 6. The total number of Kanban cards are limited to reduce inventory or work-in-progress and reveal bottlenecks or other problems. While the benefits of Kanban/Lean processes to manufacturing and development are relatively well-known, a Kanban system can be used with great effect in a myriad of industries. Any team that generates a product can use Kanban.
We even use Kanban software on several teams here at TechnologyAdvice. While Kanban takes some getting used to when transferring from a traditional waterfall system, once your team becomes more comfortable with the process it will help reduce lead times, and increase team communication and outputs. To find out more about Kanban-based project management and enterprise resource planning systems, check out our website where we can help you find the right software for your work.
This is a kanban board animation video that details how Toyota uses Kanban. Kanban is a software system that was born in the late 1940’s; Toyota engineers developed the method after noticing the “just-in-time” delivery model used at supermarkets. Check out the Top Benefits of Kanban to learn more, or see our full list of […]
This is a kanban board animation video that details how Toyota uses Kanban. Kanban is a software system that was born in the late 1940’s; Toyota engineers developed the method after noticing the “just-in-time” delivery model used at supermarkets.
Check out the Top Benefits of Kanban to learn more, or see our full list of the best Project Management software.
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