Different Kinds of Kanban Systems

• Kanban are physical inventory cues that make it easier to run just-in-time inventory management systems. Jupiterimages/Comstock/Getty Images

  Kanban is a Japanese term, meaning card or sign, associated with just-in-time (JIT) production systems. JIT allows companies to produce goods when the customer needs them, and this means the companies don't have to tie up money in inventories. The Kanban technique facilitates JIT-ordering systems and production. Kanban is a physical inventory control cue that sends a signal. The kanban could be a card, a container or any other device to send an inventory cue that a manufacturing process needs parts.

Supplier Kanbans

• These kanbans help place orders with outside suppliers when the factory needs parts for its assembly lines. With this type of kanban, the supplier will replenish the raw material at given intervals. The supplier will provide supplies as needed, rather than providing a fixed supply.

Production Kanbans

• Production kanbans provide operating instructions for processes within a line. In this type of kanban, a signal could travel from the end of a line or section to the preceding section or the raw material store. When the production process completes work on one batch, work starts on another batch. This prevents the buildup of work in process. Factories use this method to manage work flow and capacity, more than they use it to manage raw material flow.

In-Factory Kanbans

• These kanbans provide a cue about a need for materials in between processes in a factory. These types of kanbans may deal with more mixes and larger batch sizes, as a result of longer scheduling time. One variant of this is the two-card system, first used by Toyota. The two cards involve the scheduling system, which provides a cue as to which job is next, and the kanban card that cues the need for a part. In one variation of this system, the signal for replenishment from the kanban system is separated from the produce signal from the scheduling system. In another variation of this system, the scheduling system generates a card after the kanban system signals a need for replenishment.