What is the KANBAN Method?

Kanban is a term in Japanese which means Visual Board. Kanban is used as a method to signal the inventory of production materials in the Inventory Just in Time system. By applying this method, production materials supplied will arrive on time according to the required quantity, thereby reducing handling and storage costs.

Kanban comes from two Japanese words, namely [看] “Kan” which means “Seeing” or “Visual” while the word [板] “Ban” when translated directly into English becomes “Board” or “Card”. So, kanban can be interpreted / translated into “Visual Board” or “Visual Card”.

Basically, kanban is a management method to visualize communication and control of a series of activity flows in production, thus allowing everyone to see the flow of these activities and adjust them according to their needs.

The Kanban method is generally applied in companies engaged in manufacturing. Nowadays, many non-manufacturing companies are applying this method in order to create an effective and efficient work flow.

There are three important steps in applying the Kanban Method, which are:

1. Workflow Visualization

A job will be easier to monitor and supervise if it is divided into several parts or segments. The part or segment of the work is then arranged into a workflow and displayed in the form of a table or work list that can be seen by all stakeholders.

Likewise, the list of production ingredients so that all stakeholders can see and know it. This visualization can use the simplest method, by sticking post it paper or information cards on the board or by using special software for kanban.

2. Limiting WIP (Work In-Progress)

Firmly define limits on work / tasks or the number of product units that are still in process. The work that has been arranged in the Workflow must be completed in accordance with the specified time period so that work that is pending or “still in progress” can be controlled to a minimum.

Whereas for Products in the production process, with this WIP limitation, the required Inventory will be to a minimum.

3. Measure the Lead Time required

Lead Time is the cycle time it takes to complete one unit of product (work/task) from start to finish. In the kanban method, measurement and determination of Lead Time are needed to optimize the work process so that the completion time can be predicted as accurately as possible.