How does the Kan Ban system work?

Kanban means “card” and is a supply chain management system, or better, a supply chain improvement system based on a physical card (subsequently extended to any physical signal) used to send a signal to the provider (internal or external)
What does this system contribute? In a variable demand scenario, placing supply orders without the need for an information system (computer) and following the customer’s demand. If you also frequently check the amount to be ordered and the amount of security, the inventory used will be minimal.
Advantages of using the Kanban system:

  • Level the demand with the flow of production: It attacks two wastes the overproduction and the excess of inventories.
  • Improves the level of service in relation to compliance with the client (internal and external).
  • Supports production planning activities.

To adopt kanban it must be considered that the production must be leveled and mixed, so that almost always the same volumes must be manufactured. This system does not allow variability of more than 15% -20% without changing the signaling parameters.
Kanban is not a system where everything is put into a schedule, it is worth considering that Kanban is a production control system designed to allow the person in charge of the process to visualize the production requirements in a flexible and fast way, at the same time as Make sure that all parts or supplies are ordered or produced only if necessary.

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