Kanban

In this article we want to talk about another classic from Lean Management Kanban or the so called Pull System.

The word Kanban itself has its roots in the Chinese Japanese language and means card, label or sticker. In industrial manufacturing planning systems or general in logistics control Kanban describes a replenishment system for consumed parts according to the amount used steered by cards that give the signal following the Pull Principle.

The material in the Kanban System is exclusively oriented to the consumption of your production process. The cards are a key element of this kind of control system and provide proper information transfer. Kanban control loops from the work station of flexible production control and serves to smooth material flow through your inbound or even outbound logistics. In addition Kanban serves you to implement a sustainable reduction of material stocks, increases the ability to deliver and saves you pure cash.

In an ideal world Kanban would control your entire value chain from the supplier to the end customer. In this way you would have installed an complete smooth supply chain with almost no chance of interruption and massive stocks. And now comes the but – to steer production with Kanban – a continuous monitoring is required for a smooth material supply. To make it short: it requires discipline from all involved parties along the supply chain.

Lets have a look to the development of Kanban.

The first Kanban System was developed by none other than Taiici Ohno (of course) at Toyota Motor in the 1940s. One of the main reasons for the implementation of Kanban was the low productivity and efficiency of Toyota compared to western competitors. With the Kanban System, Toyota achieved a significant change towards flexible and efficient production control that had a massive impact on productions output while at the same time reducing the costs for inventory in raw material, work in progress (WIP) and finished goods.

To give the complete picture it wasn’t implementing the Kanban system itself to drive the success of Toyota, there are other key factors that together where making the difference. Just to name Just in time as an example of key elements of the Toyota Production System. It is and always will be a combination of different methods and philosophy that brings you forward.

In the 1970s the Kanban Concept was adapted in the industry in the USA and Germany. As they haven’t known better, they pretty much copied the complete Toyota Production System (TPS) in order to get the principles running.

Pull or Kanban System

Either way you call it, the material flow is controlled by boxes or cards. Kanban Cards serving in a simple way all information needed to identify what parts are needed in what quantity at what place. The amount typically is defined by the replenishment time at the work station. With the so called two box principle you make sure that the operator never runs short on components. Nowadays there are also digital version of it called eKanban, but the principle behind is the same. The trigger of supply is the Kanban Card starting of the pull chain of material.

To use Kanban efficient, it is not suitable for all parts. Kanban is perfect for small parts with a small amount of variants and a consistent demand. For this reason, you’ll see Kanban Systems in the industry mostly used for C-Parts management. The rest of the components are steered with the support of MRP. Only in rare cases you find that even the supply of big components are controlled with the Kanban methodology.

One nice side effect with Kanban, you can set up the way you can steer your bottleneck. That means, when you have done a proper value stream analysis you know the capacity for your bottleneck and will only order what this process step can handle.

Sensei

In the lean world a sensei is a lean production expert that transfers his knowledge as mentor on to his mentees.

To be successful with a Sensei it's been revealed that you need to start at the top and find a sensei to work with in order to engage all employees on the shop floor. As Lean activities reach industrial maturity, the role of the Sensei remains a gray area.

It is obvious that your organization needs a Sensei to adapt and successfully implement Lean principles. Therefore, the Sensei position will be your bottleneck in Lean implementation. In every Lean transformation process, one learns at some point that the success of a company consists in learning to learn.

As a little guide, consider the following three effects:

Learning curve: The learning curve of each department and initiative is tracked by their manager in the organization rather than having to compare it to established best practices across your organization.

Spillover: Effective learning practices are passed through hands-on, experiential learning from person to person within your organization rather than through predetermined processes.

Value-Based: Lean as a whole provides a learning framework that aims to balance customer satisfaction (which leads to organizational success) with employee satisfaction (and personal fulfillment) through a set of principles and tools aimed at discovering how MUDA can be reduced and value can be increased . Adding activities in all areas of the organization.

This approach has both sides of the medal, but the weak and the strength are lying in the learning path of each employee. Following the lean principles, every employee is expected to discover:

What do I need to learn: What is my personal challenge in order to better align my work with customer value and thus sustainable and profitable growth with the satisfaction of all my colleagues to reconcile.

Learning from the shop floor: The learning style is deeply embedded in daily operations. Employees are learning results from their support of learning activities at all levels. Because all employees solve their problems or show initiative, everyone is expected to interpret the conclusions of others and find a way to adopt the solutions to their own work. It is the responsibility of the Sensei to support its learners in this learning phase. Learning by doing is the correct way to describe it.

Create a learning environment for your employees: Learning on the job is never easy, especially in today's business climate. Consequently, one of the key functions of a Sensei in the Lean perspective is to create a visual environment for employees where it is easier to recognize than normal and where opportunities for continuous improvement in small steps (Kaizen in Lean jargon) are clearly visible Everyone. A learning environment also means a stable affective environment where mistakes are not punished but seen as a source of learning.

The Sensei is not a boss at all. He or She has no power and can only suggest. The Sensei's task is to help all employees in your organization to develop their own lean thinking through practical exercises in workshops. The Sensei's job is to convince middle managers that solving today's problems will, in the long run, prevent tomorrow's fires.

The essence of Lean is learning while solving problems. This is a difficult task at the best of times, and indeed every person in your organization must be taught to learn how to learn. In relation to managers, the Sensei has five main roles of support:

1. Finding problems

2. Tackling problems

3. Creating problems

4. Solving problems

5. And finally learnings from problems

"If you have no problems, you are dead". is a classic lean principle. Perhaps the most important part of Lean's problem-solving learning approach is the initial problem-finding phase. Lean's approach to business is to capitalize on every problem.

“Sometimes you WIN sometimes you LEARN!”

— Operations Insider