by Jeffrey Ries
Following this process lessens crisis and confusion that frequently occurs when there is an unavailable resource. “Done” work can only occur when the product is finalized and in use. This process saves time and reduces the quantity of re-work necessary.
Organizations that adopt a Kanban system find that the time and effort put into the adoption phase is worth it. The challenges of trying a new agile system like this reap several benefits, including reducing risk and improving the outcome. Employing the mechanisms outlined above in this chapter illustrates the way Kanban assists software development teams, which sometimes these teams can be scattered across the globe, onto the same page. This is feasible thanks to virtual boards and integrated Kanban software. These systems provide easily viewable WIP and strategy to provide tracking systems for project status and individual tasks. These tools are designed to make a Kanban system easier for your team.
Developmental processes are also benefited through the implementation of a Kanban system. Bottlenecks are identified, and workflow is efficiently tracked through this methodology. This means if you are searching for an improved throughput for your software development, a Kanban process provides a powerful solution to your needs. Now you can offer exceptional software to your clients in the best delivery time possible while simultaneously lowering the risks associated with the process.
Chapter 6: Applying A Kanban Process to Workflow in Your Company
While a Kanban process can be applied to manufacturing and software development, many organizations do not engage in physical products. Consequently, industry leaders have taken notice of the Kanban system and discovered application methods for it in knowledge or creative environments. Jim Benson and David J. Anderson led the charge to adopt the Kanban process improvements in their business. These changes were embraced by others and have been used by companies for decades, enjoying similar efficiency and quality.
For example, a marketing department can re-imagine their creative process as a "production" line with requests for features beginning at one point and improving the results coming off the line at the other side. Like in other industries, showing a visual process of work from start to finish allows a business to improve their workflow. It shows bottlenecks early in the process and encourages all the WIP to be finished in the time anticipated.
Knowledge work, like your company’s workflow, can follow the four steps of the Kanban process effectively.
Workflow Can Be Visual
Just like in a manufacturing or software development environment, the work and workflow are visualized in a Kanban system. This process allows team members and stakeholders the ability to see the process of work tasks. Results and communication are then improved thanks to the transparency of the process, including all the lines of work, bottlenecks, and "showstoppers." Some teams prefer to have a whiteboard with post-it's while others prefer a digital system for displaying the board. Whatever method your company adopts, the purpose is to show how work is moved from start to finish, no matter how "good" or "bad" it appears.
Work in Progress is Limited
The demand is what pulls a task to another stage. Demand can be from the customer, or it can be from an opening in the downstream. Whatever the case, it is similar to a “just in time” objective. Given a specific time frame, the limit for what is manageable for your team is set for your pipeline’s capacity. To illustrate, consider a design team. They are not limited to producing a set amount of deliverables related to what the marketing team can use in a campaign.
Flow is the Focus
The beginning of the end of the project is free to flow when there is a limit placed on the work in progress, and it is a visual workflow. The formation of backlogs can be prevented by the early identification and resolution of the bottlenecks. These interruptions can be resolved before they cause a major breakdown in production. This is true in a creative workplace, just as it is in manufacturing. For example, if the design team has trouble taking on a certain amount of graphic design before heading to web marketing, then it is easy to identify a need for additional resources, training, or alternative limitations. This early identification is critical to three factors: conflicts are prioritized based on the "showstopper," the value to the customer remains high and they stay close to the project, and the investment continues to have a positive return for the company. If the work lags in the process, the investment is tied up, the customer's value decreases, and conflicts are mismanaged.
On a Kanban board, there is a number assigned to each group, column, or list. This number identifies the workload the team can realistically produce in a week or another given time frame. When a list is at capacity, it is considered "blocked." This means that nothing can be added to the list until something moves and creates space for it. A task that is moved must go to another list, including the "done" list. If a manager recognizes that a list is constantly "blocked," they can address the backlog before things pile up beyond functionality. For example, if work is completed, but it is waiting for QA to open up to review the work, and items continue to sit and wait for QA, a manager can see the jam and work to address the issue to get the project moving again.
Improvement is Constantly Happening
Improvement opportunities are identified thanks to the continuous analysis and monitoring that the Kanban methodology requires. Quality, the pace of production, the flow tracked throughout the process is what is used to measure the effectiveness of the team. Being able to visualize the workflow for the company is an immensely valuable instrument used by any business to improve the procedures of their workplace. For the “overachiever,” who often takes on more work than they can handle, benefits from the limitations placed on the work in progress. A daily and weekly restriction of tasks makes sure your team members do not try to multitask, ultimately costing you time and money. Instead, they are free to produce quality work in the shortest time possible.
A Kanban process is a simple, agile approach, but its efficiency and effectiveness are hard to rival. It assists teams in operating at a higher productivity level, minimizes conflict, and provides an even distribution of value to your clients. If your organization values improvement on a continuous basis, a Kanban system is a reduced-risk and reduced-cost option to consider.
How Kanban Can Fit Any Workplace Team and Workflow
Maybe you are running an organization with several project management teams, or maybe you are a small company with only a couple people dedicated to an agile project. It does not matter the size of your company; a Kanban system can fit in with your organizational goals. Ultimately, implementing this agile project management methodology will offer you peace and prosperity in your company (and often your own life!).
Tell a Complex Story Through a Simple Board
The first thing you see when you enter a company implementing a Kanban process is a gorgeous board. Maybe this board is a colorful array of post-its scattered across various columns, or it is a sleek online board with interactive cards and lists. No matter the version you see, it is there, and it is beautiful. The aesthetic appeal alone makes it a great tool to select to manage your organization and strategize workflow. Consider the phrase, "a picture is worth a thousand words." Yet a Kanban board is worth more than that! A scan of the board reveals the movement of tasks in the project. Things like completed tasks, the state of each task, and the progress of each task are evident, along with even more information. There will be no struggle to find more information about a project. It is all at your fingertips and visual plane with the Kanban board.
Simplicity Means No Learning Curve
Using a board is a simple process. It does not require extensive training to learn how to operate one. The stages of your project are divided easily, and the board is “decorated” with your tasks in specific categories. Each task is assigned to a team member. When the team member assigned to it completes a task, they are able to place it into the next, downstream list. This whole process is self-explanatory, meaning you
can save time by not training your team on how to use it. Once you decide to adopt a Kanban system, it is possible to be up and running as a Kanban organization in just a few days.
Shifting Priorities can be Accounted for Quickly
When a customer specifies what they want at the beginning previous project management systems made the assumption that these requirements are frozen until delivery. In reality, this is not what happens. Priorities constantly change over and over again. When the scope changes, a manager needs to shift priorities with it. Changes are easily managed on a Kanban board. Even small changes can be made quickly and visually on the board. When you are using an electronic board, then even the team members assigned to the changed task are alerted.
Your Workplace Runs with Your Workflow
As you create a visual Kanban organization, your work will begin to run more smoothly alongside your workflow. You will see everything, address issues early, and keep the process moving. The hard work is alleviated with the simplicity of Kanban boards. It is flexible, visual, flowing, and easy.
Chapter 7: Implement A Kanban System Effectively
Your organization can understand lean management easily because it is such a simple method for improving business activity. To illustrate the simplicity of a lean methodology, you cannot get a better example than the Kanban process. It is a tool that controls the flow of information and materials. Despite its simplicity, many organizations are still confused by the concept. Maybe it is because it is so simple. Implementing Kanban should be easy, but it is often implemented below its true potential. This then leads to the process being abandoned. This is why implementing it effectively is so critical.
Below are rules, guidelines, and considerations necessary to a successful Kanban system implementation. Before you begin the process of implementation, consider the following:
A Kanban process can be:
A device to communicate from the operation last conducted to the usage point. Or, from the supplier to the customer.
P.O.’s provided to your suppliers.
Orders for work to your areas of manufacture.
A tool for visual communication.
A method for reducing paperwork.
A Kanban system should not be used for:
Batch or lot or single item production. Something you only create a few times a year should not be managed with a Kanban process.
Stock designed or used for safety purposes.
Inventory held by a supplier. For example, consignment or dropshipping is not appropriate for a Kanban system. This situation is not considered a "win-win" lean situation.
A tool to plan long-term. Traditional management methodologies are best for situations like introducing new products, changes to a customer’s usage, and changes in engineering.
To start, within your company, select one area to implement a Kanban system. Begin implementation with less than eight items in this area. Alert your business regarding the implementation and answer questions they raise about how the methodology works. Once the initial implementation is successful and smooth in the one area of your organization, consider adding more areas or items to the process.
Guidelines for Successful Implementation
Prior to implementing a Kanban process:
A reduction is arranged. If this is ignored than the typical process, a "batch production," continues because the sizes of orders are still large.
Production and requirements are uniform or level. Kanban can work for complex situations, but when it is early in the implementation phase, it is best, to begin with, requirements that are more uniform.
Suppliers outside your organization need to be certified. The history of the supplier's outside quality is the reasons for not requiring the inspection of their deliveries. This way "on hold" or "rejected" deliveries do not prevent the workflow.
Choose a bright color for any Kanban related container, cart, or tote and paint them all. A vibrant green is a good choice if you are stuck on what to choose. This allows all members of your organization to recognize a Kanban tool, especially during the implementation phase. It is also an easy way to keep track of all the materials necessary for your new system, ensuring all items stay in their correct place.
“Supermarkets” are a good tool to use if you use it well:
A “supermarket” provides a temporary place for a supplier to house items that are between the customer and the user.
This is best employed when several customers are internal and rely on a supplier that is external. Another reason to employ a “supermarket” is when several customers are internal, and a supplier is also internal.
This method provides a barrier between the many customers and the supplier, so the supplier does not receive several signals from all the requests.
The “supermarket” sends the only signal to the supplier that is at the highest priority
The Rules For Implementing a Kanban Process in Your Organization
Your customers, suppliers, stakeholders, and entire organization need to be involved in your implementation. Do not even try to launch a Kanban process without their knowledge. Anyone that adds value to the chain of production needs to be included. After all, these are the people that support and report your company as a revolutionary. They must be a part of the revolution, too.
The source is the origination point for quality. Customers should never receive a defective product or poor information. Immediate correction is required. Otherwise, you risk losing your customer's pipeline.
Support equipment must be reliable. Choose an area to implement a Kanban system where there is TPM or Total Productive Maintenance.
Lead times and setup should be short. Requirements for delivery should occur evenly every month. This means a Kanban system should be focused on parts and products that are consistent. Reduce setup and efforts to minimize the lead-time for raw materials for items that differ each month according to the requirements of the customer.
Programs to reduce setup at the supplier level, whether external or internal, should be developed. If they do not have their own program in place, you should assist them with one. Lead times and the capacity to manufacture should not be influenced by the time required to set up. That is the only time when a Kanban process should be implemented.
Customers should receive the supplier’s materials directly. Non-certified suppliers, or those that still require inspection upon delivery, require the usage point to do the inspection. If this is not possible, then a certified supplier should replace the option in use.
Trial and error are necessary to find how it will work best for your company. This is because nothing is fixed. When there are changes to the level of sales or containers or cards are reduced because activities are continuously improved, you need to be ready to make changes to your system. This is especially important during the implementation stage of the Kanban system.
How to Implement a Kanban Process Effectively
Once you identify the area and actions you want to address with a Kanban process to begin, you will want to follow the steps outlined below:
Create a visual of what you want to accomplish. Assemble a series of photographs that show off how it should look along with a label that is clear and definitive. Make it so simple that even someone not working in your organization can understand it.
Theorize the consumption of the product on a daily basis. Use your own observations, data, or ask your employees about how much consumption possibly occurs. Accuracy is not essential at this point. Keep this step simple.
Determine how or what you will use to send a signal. Consider things like cards, containers, spaces, color, and if you will use a digital or manual system. If you are completely new to using a Kanban system, consider keeping it simple and doing it by hand to try it out. Do not get caught up in the fancy, expensive software system unless you are ready to expand your Kanban process to other areas or more items.
If the materials are heavy, do not use bins. Instea
d, use carts that roll. Choose a bright color, like a vibrant green as suggested in the previous chapter. If your colors are vibrant green, choose something different. This process requires you to make choices based on your common sense. Decide what you think is best and try it out. You can always alter your choice if you find it is not the best fit.
The quantity of Kanban cards or bins must be calculated. This is done through a mathematical equation:
Kanban # = Daily Qty X Lead Time in Days X (1 + ss) / Qty Inside the Container
Kanban # - The number of cards or containers