Kanban management flow

GN Techonomy_2023_B+Y

Kanban Management Flow: How it Works

Kanban is a supply management technique that enables synchronization between consumption in production activities and the need to purchase components being used.

The term Kanban is a Japanese word meaning visual signal/tag, and it refers to physical (or electronic) tags used to signal the need to produce, purchase, or move a specific quantity of goods.

It originates from the business philosophy of Lean Production, specifically, Kanban is a visual management technique aimed at enabling Just-In-Time management, which seeks to produce the necessary item in the necessary quantity at the necessary time.

Kanban tags are placed on a container dedicated to a predefined quantity of a component. Each production phase, during the normal process flow, consumes the material, and once the material is depleted (or when it is close to being depleted), the tag is sent back to the previous phase, "pulling" the demand.

The procedural steps of a 3-way Kanban Management system will be outlined below.

Kanban State 1: Production Department Operator

The production operator, at the designated pick-up station, receives a production order and retrieves the necessary materials from the Kanban container located on the line.

After consuming all the materials in the bin, the operator returns the empty container to the replenishment station, represented by the receiving warehouse. This operation, performed via a mobile device, transitions the Kanban from State 1 to State 2.

The consumption of materials by the production operator triggers the need to place a supply order to restock the warehouse with the quantity used at that moment.

The order placement and dispatch to the supplier occur automatically through the JD Edwards system at the time of the status transition from State 1 to State 2. The stock depletion, however, can be done manually by the operator or through a scheduled report (if the material is listed in the bill of materials), always with the support of the JD Edwards system.

Kanban State 2: Logistics/Warehouse Operator

The logistics or warehouse operator, once the supplier has returned the filled container, receives the materials related to the supply order generated in the previous phase.

The receipt of the materials is done both physically and via a mobile device, which associates the material stock with the location at the supply station (receiving warehouse).

The corresponding Kanban transitions from State 2 to State 3.

Kanban State 3: Production Department Operator

The logistics or warehouse operator, after refilling the Kanban container, transfers the materials to the pick-up station within the production departments.

This transfer is done both physically and via a mobile device, which allows the Kanban to transition from State 3 to State 1 after being accepted by the production operator.