Lean Mastery Collection
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Material usage is not consistent. When you offer a wide variety of products, but each product has a low volume, your bins will stay full. The unused materials are then taking up space and costing you money.
Materials must be traceable. Kanban does not allow you to mix loose materials into another bin for another lot. You need to keep a record of the lot used and document the materials not used. This is the best method for controlling a lot through a Kanban process, but it is more complicated than other, more loose processes.
If the traditional Kanban process is not right for all situations, what other choices are there? As mentioned earlier, Kitting and Pick-list are ideas. Kitting; however, is a “bad” word in the Lean community, so instead, think of it as a “Kanban Set." This methodology involves a selection of materials related to the sequence of building a specific product. An AGV or cart would bring the set to the manufacturing line. Because the set would not be delivered until is it signaled, usually by the return of an empty set or tray, it is considered a "pull" system.
A “pull” system means materials and products are delivered when an order is placed. This type of method is beneficial because it reduces the need for storing inventory. Lower inventory levels and reduced costs are the secondary benefits. The opposite of a “pull” system, is a “push” model. The “push” system is a forecast for inventory needs. The company then manufactures to meet the forecast and then pushes, or sells, it to their customers. The problem with this model is forecasts are typically wrong and results in many leftover products.
A product does not need to have just one “Kanban Set.” To minimize material handling and movement, the materials could be chosen in smaller amounts. This process also minimizes the number of materials on the side of the line, which opens up more space on the production line. Materials coming in can have limited handling because the "Kanban Set" is placed in a logical location.
As an alternative to having materials on the line at each workstation, the "pick to light" process can be more efficient for the manufacturer. “Pick to light” is a system designed for fulfilling orders or manufacturing products. Normally the operator scans a barcode that is adhered to a tote or carton. These bins are a temporary holding place for materials. The scan reveals the location for materials so the operator can retrieve the necessary items. When the correct quantity of items is selected the operator presses a button to indicate the activity was completed. The operator continues to refill bins as indicated by this system until all materials are gathered for the manufacturing process.
What people have realized since the 1990’s is that Kanban is still relevant, in the right situations. In other scenarios, like the ones mentioned earlier, quality, use of space, and labor inefficiency can result from trying to force a Kanban process where it does not belong. Instead, these situations should consider a “Kanban Set!”
Chapter 2: How to Utilize the Kanban Process in a Non-Manufacturing Setting
There are three primary parts to Kanban, no matter if you look at examples from a Toyota factory in the 1950s or on a Lean practitioners Kanban app. The three elements are board, list, and card. Essentially, the board contains a list, which creates the workflows from the various cards. Each is defined below:
Board- This is what houses the workflow. In other project management processes, this is referred to as a "workspace" or "project."
List- Also called a "lane," this has a series of aligned cards, usually related to the same part of the production line, and is the title of a column on a board. In other project management systems, it is called the "task list" or "to-do list."
Card- A card is found under a list title on a board. This is a product that needs to be created or a task that needs to be done. These are actionable items. In other systems, these are called "tasks" or "to-do's."
A Kanban board is as versatile as an Excel spreadsheet; its applications are endless. For example, if you are about to launch a new product, you can have two Kanban boards, one for marketing and one for development. Marketing would create a board with lists titled "Internal Promotion," "Press Pitches," and "Marketing Ideas." Development would create lists such as, "To-do," "Doing, and "Done." Each department would then create task cards to move from one column to the other as they bring up and complete each task.
While this example above only offers two ideas in a non-manufacturing setting, there are many more applications to explore. But no matter how you want to implement a board, you need to master the basics of moving from just having a list and a bunch of cards to developing an efficient and orderly workflow.
8 Primary Features of a Kanban Board
The features presented in this section all function primarily the same, no matter how you implement it. Some features only apply to an electronic version of the Kanban system, such as a Kanban app, while others apply to both a physical Kanban board and an electronic app. In addition, the names and titles may depend on the practitioner or app you use, but again, the functionalities are always similar.
1. Boards and Lists are Filled with Moving Cards
Being able to easily move cards around is critical to effectively utilizing Kanban boards. It is the most utilized feature in a Kanban model. In fact, the existing cards you have on the board will move more than the new ones you create. In an app, you can click on the card, hold down the button on your mouse, and move your cursor to a new location. This action allows you to move your card from one list to another or to change the location of the card on the existing list. Because this is a feature you will often utilize if you are using an app, find out what process works with the app you have chosen and become familiar with the layout and functionality as soon as possible. For example, LeanKit offers the ability to change list locations. You can have a higher or lower list, and you will need to know how to drag a card between them. Try it out and find where and how you can move your cards. After all, you cannot break it!
Unlike in a manual or physical board situation, you can look back the path each card has taken on your Kanban board. When you move a card on a physical board, you will either have to take pictures or mentally remember where it was to know its journey throughout the process. In an app, technology keeps track for you. In many apps, when you click on the card, it will "flip over" to reveal its backside. Here it will often show you its activity list. Much more efficient than the manual way!
2. People Are Invited To A Kanban Board, And Assignments Or Subscriptions Of Individual Cards Are Outlined.
As with other project management systems, collaborators, clients, and teammates can be invited to the project. An invitation can be extended through the app for access to the entire board or only for an individual card. Some apps only allow you to invite app members to the board while others will allow you to invite anyone by entering their name and email into the invitation fields. After they are added to the board, they can then act on the cards. If a member is added to a single card, they can only act on that card. Typically they can edit a card, comment on them, move or add them. In addition, they can also observe the stream of activity relevant to the board they are a part of. This allows the members to see the project process even if they are not an active part of the tasks.
To assign or share the responsibility of a task you can add a card to a member or user. This prompts the app to send notifications related to the activities for the card. If your card gets a comment, for example, you will receive a notification. If someone else is assigned that card, they will get the notification as well. When someone wants to follow the progress of a card but are not responsible for the activities, many apps provide the option to "subscribe" to it. This allows the member to monitor the activity and receive notifications but not act on the card. On the other hand, if you want to “unfollow” the activities of a card, you can unsubscribe from it. This is a good practice when you want to keep your inbox free from unnecessary notifications.
3. On the Backs of Cards, Include Notes or Communicate in Related Discussions
Typically, on the backside of the card, there are fields for card descriptions, a place to upload related files, and a discussion forum. Also, similar to tagging someone on Twitter, you can mention a person directly in the comment or description by writing, "@-(their username)." To access the back of the card, click on the card itself to flip it over or find the link that lists additional features for the card and select "back of card" or another similar phrase.
4. Cards Can Have Tasks or Checklists Attached
A card needs a checklist because each task is not always a simple situation. In a virtual board, the cards can contain 1 or more task lists or checklists to make the card more functional. Thinking back to the marketing example introduced at the beginning of this chapter, the marketing department had a list titled, "Press Pitches." Under this list, there is a card labeled, "Outreach." On this card there is a checklist containing the following to-do items:
Create a preliminary email for the pitch
Complete follow-up communication with additional details
Deliver media assets
Confirm coverage
Publish coverage
In some apps, the front of the card illustrates the status and progress of the checklist, showing a stage of completion as each task is checked off. This way each member can easily see the progress of the card. Similar to discussions and notes, checklists can have specific member's names included by using the same format: "@-(their username)."
5. Limits to Work in Progress Included
For new practitioners, creating epic task lists can be exciting but overwhelming to all involved. This is why several apps provide the option to limit the number of tasks that can be created in a list and offer WIP’s, or work in progress limits. WIP’s are pronounced like “whips.” This restriction can be applied to one or all columns on a board, so you have a limit to the number of cards allowed on the list.
When you know the workload your team can realistically handle, you can set your limits accordingly. For example, if your marketing team can realistically produce 3 pitches per week, then set the limit for "Press Pitches" to no more than 3 cards.
6. Cards can be Tagged or Labeled
A “label” or “tag” allows you to clarify certain details of a card that cannot be immediately determined by its location on the list. Your administrator or app will determine if this clarification process is called “tagging” or “labeling.” Both terms are synonymous at this point in the Kanban process.
For example, if a marketing idea is for an online publication and not for a print campaign, you can add a label to the card to denote that it will be published electronically. Maybe a card requires outside assistance from another department or one task is more challenging than another; both are situations where you need a clear label. Tags are created uniquely for each board you operate. Change the label’s names and colors to fit the workflow for the board you are working on.
7. Due Dates can be Assigned to Cards
When there is not a due date on a card, it probably will not get done. Deadlines are essential to getting tasks completed. Depending on the app you are using you can click on the clock icon on a card or find the field for the deadline on the back of the card. Typically there is a drop-down menu that allows you to select the date the card must be finished by.
Besides setting the date, the people assigned or subscribed to the card can also get notifications when the deadline is approaching and when something is considered overdue.
8. View a Calendar with Cards
Another added benefit of an electronic app is that it offers a seamless calendar view related to the board. In an app, the ability to switch from the "standard" board view to a calendar view is a simple toggle of a switch. This view will show all the advancing deadlines, schedules, and delivery dates for tasks. In this view you can also edit, move and add cards. If something is overdue or cannot be completed by its original deadline, you can drag the card to a new date to reset the deadline.
Trying Out Kanban
If you are interested in implementing the Kanban process in your business but want to test it out first, below are some ideas on how to start small before applying it to your whole company or department:
Use a Kanban board for your personal to-do list
Customize a calendar for editorial content
Create a space to house ideas and content for projects
Share a plan of action with teammates or clients
Follow a sales funnel
Develop a tracking system for applicants to streamline your hiring process
Chapter 3: Applying Kanban to Lean Manufacturing
Lean manufacturing and the Kanban process are often considered a natural pair. When a manufacturer wants to remove or reduce waste in their process, they use a methodical approach, which classifies them as “Lean.” Because Kanban is a method for systematically replacing materials when needed, it is obvious why the two work well together.
The Function of Inventory Management in a Kanban Environment
There is a balance that the Kanban system looks to achieve between having the least amount of inventory possible and functioning at full capacity. This simple concept introduced by a supermarkets restocking process led to the introduction of Toyota’s 6 principles of an efficient system:
The downstream remove materials in the exact amounts outlined by a Kanban system. “Downstream” can refer to customers, line operators, or anyone coming into contact with supplies or materials.
The upstream delivers materials in the exact amount and succession outlined by a Kanban system. “Upstream” can refer to the supplier, manager, or materials handler.
Movement or production does not happen without a Kanban task.
Every moment and every material should be part of a Kanban list or card.
The proceeding downstream should never receive incorrect or defective materials from their direct upstream.
The quantity of Kanban processes being used prudently lowers the levels of inventory while also improving the identification of problems in the current process.
In addition, the inventory actually being utilized is aligned with the need for that inventory. "Pulling" is often the term applied to this concept. A signal is sent when a certain material is exhausted. This signal tells the supplier it is time to send more products and consequently an order is tracked in the cycle for replenishment. This simple method also tracks the frequency of necessary restocking. Cards or bins are used to signal the need for refilling specific products.
In Lean manufacturing, bins are a popular method for tracking. A bin process provides a visual indication to start the process of restocking. An operator or employee is given two bins to work from. They are to pull materials from the first bin until it is exhausted, and then they move to the second bin. When the employee moves to the second bin, the first empty bin sends a signal to the line manager to reorder materials. In an efficient system, the employee will be replenished with materials before the second bin is depleted. To decide how many materials should be placed in a bin, first determine how long it will take the supplier to deliver materials and then how long it takes for your operator to deplete one bin.
Pros and Cons of Kanban in Lean Manufacturing
For lean manufacturing, using a logical process for inventory monitoring and customer demand fulfillment makes rational business sense. That is why the Kanban system makes so much sense for this type of application. Despite it being a sound pairing, some considerations must be addressed before a concrete process can be implemented. Recognizing the several pros and possible cons for Kanban lean manu
facturing allows your business to implement a Kanban process effectively.
Pros of using a Kanban Inventory Management Process in Lean Manufacturing
Lowers the costs and levels of inventory. Workspace is increased when there is less inventory cluttering the area. Also, providing the minimum quantity of inventory saves money. The business does not purchase materials that will not be used.
Need is determined by the demands of the customer. When materials and products are exhausted, you can identify best-selling products. If a product hardly ever needs new parts restocked, you can assume it has a low demand by your customer.
Production is to deliver, not to store. The line only gets the materials necessary to deliver what is needed. The saved storage space now opens more room on the line for assembly. Also, fewer mistakes are made in grabbing incorrect products because they are being stored on the floor and not a storeroom.