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Kanban is a material replenishment system that incorporates signals, pull instructions, visual cues, bins, carts, containers, etc., to help coordinate material and parts transactions throughout the factory and with suppliers. Material and parts are kept in specified quantities and containers when needed. Implementing a kanban system will help your company reduce the amount of inventory and help predict better flow of material. It will help simplify scheduling and improve productivity.

The amount of material or parts for each kanban item depends on product volume, size of the part, lead time from the stockroom, supplier lead times, supplier quantities, market trends, and variations in your model mix. Each kanban system, like all lean systems, must be tailored to each business model and structure. There is no “one size fits all.”

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