Describing the Kanban Principle

Objective

After completing this lesson, you will be able to describe the Kanban principle

The Kanban Principle

Kanban is a method for effective consumption-based control of material replenishment in production. Material components that have a regular consumption are kept in small quantities in containers that circulate between the work centers or production lines and a replenishment source, such as a warehouse for example. Replenishment of a material component is triggered when a container in production becomes empty. A sufficiently large number of containers circulate between the supply source and production to ensure a steady supply.

Kanban offers the following advantages:

  • The replenishment process is designed to be self-controlling.

  • The inputs in the system are reduced to a minimum, e.g. to the input of a barcode to set a container to empty or full.

  • The supply sources are informed faster about the requirements situation at the work centers or production lines.

  • Replenishment elements such as stock transfer reservations, production orders or purchase orders are created automatically.

  • Goods receipts from the replenishment elements to the storage locations of the work centers or productions lines are posted automatically.

  • Inventory information is always up to date.

  • Lead times and stock levels are reduced.

  • The system collects data about the Kanban process, which can be used for process optimization.

Kanban Principle

Kanban Principle