Kanban for Manufacturing: Benefits, Challenges, Examples

Kanban manufacturing is a type of lean manufacturing that has become more popular in recent years because it makes manufacturing operations more efficient, reduces waste, and improves quality. Kanban was invented in Japan for the auto industry, but now a wide range of businesses and organizations from different industries across the globe use it. This article talks about Kanban for manufacturing, including its benefits, problems, and examples of its usage. This article will show how Kanban can help you improve your manufacturing processes and reach your business goals, whether you are new to Kanban or want to make your current production system better.
Also, getting Kanban certification online allows individuals to enhance their knowledge and skills in Kanban methodology conveniently and efficiently.

What is Kanban?

Kanban a visual signaling system to manage and control the flow of production resources and inventory. The term "kanban" is derived from the Japanese terms "kan" (card) and "ban" (signal or board). Each item or component in a project has a kanban card that lists details about it, including its name, part number, and quantity. When the additional stock of a part is required, a kanban card that is linked to it serves as a signal.

On a kanban board, which is usually a whiteboard or a digital screen, the kanban cards are put in columns that match the different stages of production. As components are utilized, the kanban card is moved to the next column to signal that more of that component must be manufactured or ordered.
Conventional kanban boards are divided into three columns, each with a different name:

• To do
• Doing
• Done

While different workplaces may use different names for them and have varying numbers of columns, the fundamental concept of shifting the kanban card from one column to the next upon completion of work remains constant.

The Kanban system is an important component of Agile methodology; taking an Agile course can help you become a Kanban specialist.

Kanban in the Manufacturing Industry

In a manufacturing process, the flow of materials and information is managed and controlled using the kanban system. Because it is a pull-based system, consumer demand drives production. The Kanban system alerts the production process to generate the required items when a customer places an order.

Each item in a kanban system has a kanban card that lists details about it, including its description, part number, and quantity. The kanban card is removed and moved to the next step of the process when an item is used up in the production process, indicating the need for more of that item to be manufactured.

Kanban is intended to reduce waste and increase production process efficiency. Using a pull-based method, it lowers inventory levels and lessens the possibility of overproduction. Another benefit is the ability to spot bottlenecks and other problems in the production process, which can then be fixed and made better.

In general, Kanban is a powerful tool for making manufacturing operations more efficient and effective.

Example of Kanban System in Manufacturing

Here's an example to help understand the concept of what is kanban in lean manufacturing. And what is production Kanban?: 

Consider a company that produces televisions. The company uses a production line with several workstations, each of which is responsible for a different phase of the production process.

To begin using the kanban system, the company would make a kanban card for each television component, such as the LED screen, main board, and IR sensor. The kanban card would contain details such as the part name, part number, and the quantity that must always be in stock.

The company would next set up a kanban board to represent the production process. There would be a column on the board for each stage of the production process, such as "raw materials," "production," and "assembly." 

When production starts, the employees at each workstation take the required components out of inventory and move the corresponding kanban cards to the next column on the kanban board. For instance, the worker would shift 10 LED screen kanban cards from the "raw materials" column to the "production" column on the kanban board if the first workstation requires 10 LED displays to begin production.

A worker would move the corresponding kanban cards to the following column on the board once a workstation has finished processing a batch of parts. For instance, if a TV's mainboards are assembled at the second workstation, the worker would shift the matching IR sensor kanban cards to the "assembly" column on the board.

Once the finished TVs were ready for delivery, the last workstation would move the relevant kanban cards to the "completed items" column. This meant that the customer could get their order. Based on the data provided by the kanban cards, the company would then replace the inventory by making or ordering more parts as needed.

Kanban Process in Manufacturing

Kanban is a way to keep track of work as it moves through a process. It is a visual management technique. The main steps of the Kanban process in manufacturing are as follows:

• Outline the process: Determine the steps and resources required for the manufacturing process.
• Create a pull system: Develop a pull-based production system in which work is produced when there is consumer demand.
• Create Kanban cards: Make Kanban cards to represent each labor and link them to the physical product or workstation.
• Set up Kanban boards: Set up Kanban boards that reflect the status of each unit of work, such as to do, in process, and done.
• Limit work in progress: To avoid overproduction and waste, set a restriction on the number of units of work that can be in progress at any given time.
• Track performance: Use measures like lead time, cycle time, and throughput to monitor the performance of the production system.
• Continued enhancement: Review and optimize the production process regularly to discover and eliminate bottlenecks and inefficiencies and to increase overall performance.

Kanban Manufacturing Examples

Here are a few examples of how Kanban used in manufacturing:

• Automobile manufacturing industry: Kanban is a popular method of managing the flow of parts and resources required for assembly in the automotive industry. By giving a visual reference for when components are required, this method helps to reduce waste and improve efficiency.
• TPS (Toyota Production System): The TPS is a well-known example of a Kanban-based manufacturing system. Cards or containers are utilized in this system to communicate when inventory levels are low and more components or supplies are required.
• Pharmaceutical Manufacturing: Kanban is used in pharmaceutical manufacturing to ensure that the correct amount of ingredients is available for production.
• Boeing (Aircraft industry): Boeing manages their airplane production using Kanban. To indicate the state of each stage of the manufacturing process, the company employs a system of color-coded cards. It allows workers to identify which activities need to be accomplished next and aids in the smooth operation of the manufacturing process.
• Electronics industry (Intel): Kanban is used in Intel's semiconductor manufacturing operations. The organization manages the movement of products and equipment between workstations using an electronic Kanban card system.

Benefits of a Kanban System in Manufacturing

The following are some benefits of using a Kanban system:

• Increased productivity: Kanban increases productivity by shifting attention from starting work to finishing tasks. Teams can concentrate on finishing projects before beginning new ones by visualizing the outcome and limiting the amount of work in progress, which boosts productivity and speeds up delivery times.
• Improved flexibility: Kanban is adaptable to changing production needs and can accommodate demand fluctuations.
• Lower costs: When you optimize processes and make them simple to follow, you potentially save expenses.
• Improved inventory management: By manufacturing only what is required, the Kanban system helps reduce inventory levels. This can lead to lower storage costs and more efficient resource utilization.
• Waste reduction: Kanban eliminates waste by employing a pull-based system in which manufacturing occurs only in response to customer demand. This helps in the elimination of overproduction and excess inventory, both of which can result in waste.

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Challenges of a Kanban System in Manufacturing

A Kanban system has a lot of benefits for industrial operations, but it can also be hard to set up and use in some ways. A Kanban system typically faces a variety of challenges, including:

• Lack of understanding of the concept of "What is kanban inventory?": Although the Kanban technique appears easy, many teams struggle when trying to put it into practice. Your team has to be informed about what will happen before you start implementing Kanban. Staff may misuse the system inappropriately or fail to see its benefits if they are unaware of it or its purpose. Thus, education and training are essential for a kanban system to be successful.
• WIP limitations not used or obeyed: WIP limits help you along with assisting your team in developing their focus; they also allow you to determine how much work you can do. You won't be aware of where things are getting stuck in your process if you don't employ or adhere to your WIP limitations. As a result, you'll miss out on identifying possibilities to improve your process.
• Communication lapses: A kanban system's success depends on effective communication. Delays, mistakes, and other issues may result from disruptions in the communication between departments or suppliers.
• Not using the full capacity of the Kanban: This may occur when teams fail to continuously improve their procedures or when they don't understand the kanban principles. Inefficiencies, longer lead times, and lost opportunities to improve the workflow can all result from underutilization. To overcome this obstacle, teams must concentrate on widening their understanding of kanban and continuously optimizing their procedures to take full advantage of its capabilities.
• Inconsistent workflow: Kanban cannot function properly without a consistent workflow. Maintaining a stable workflow can be difficult when workloads are inconsistent or when demand is unpredictable.
• Can become very complicated: Kanban boards require management and maintenance or they will become too complicated to follow. Again, incremental evolution is crucial here, since your organization must create its guidelines and determine what works best for your team.

Using Kanban To Eliminate Waste in Manufacturing

The core principle of Kanban is to produce what is needed, when it is needed, and in the exact quantity. Kanban helps to decrease waste in numerous ways by adhering to this idea.

Kanban eliminates waste by using a just-in-time (JIT) production method, which means that parts or goods should arrive 'just in time' to be used, to the greatest extent possible. Most of the time, this means keeping a much smaller number of different products in stock, where they can be lost, broken, or go out of date. When we use just-in-time solutions, it is much less likely that extra parts will have to be thrown, which is a waste.

Kanban also eliminates waste by encouraging continual improvement. Kanban helps teams find and fix production bottlenecks and inefficiencies, like delays, mistakes, and motions that take too much time. By making improvements to the manufacturing process all the time, teams can reduce waste caused by inefficiencies and improve the flow of work.

Kanban also helps reduce waste by limiting the amount of work in progress (WIP). Teams can avoid overuse or underuse of resources by limiting the number of work items that can be in progress at any given time. It, in turn, cuts down on waste caused by poor use of resources and helps make the best use of them.

True Understanding Lies in Application

We hope this article helped you understand the concept of "what does kanban mean in manufacturing?" To become a Kanban professional, upskill yourself with KnowledgeHut’s Kanban certification online courses. Kanban manufacturing is an effective technique for increasing efficiency, minimizing waste, and optimizing processes. The benefits of kanban are clear, and it has been used successfully in many industries. By using Kanban, organizations can improve their productivity, profitability, and ability to stay competitive, while giving their customers more value.

As we have learned about kanban and seen examples of it in this article, we also know the pros and cons of kanban in manufacturing. Now it's time to implement them in real-life and succeed in your projects. Start by having a clear idea of how things are done, and then look for places where Kanban can help improve workflow and cut down on waste. Such practices make you a professional in Kanban manufacturing.