Kanban, also known as Kamban, is a system commonly used by an organization to help them manages their level of production. It is a term that is commonly misinterpreted by those people who don’t properly understand it. Trying to implement the Knban system without fully understanding it can lead to a lot of setback and negative results which are not good for the overall development of the organization.
It is therefore very important for one to properly grasp and understand the concepts and variables behind the Kanban system BEFORE implementing them in any kind of an organizational setting. Again, this will help in preventing huge losses and damage to both the organization’s operational structure as well as hits to it’s reputation, which might be incurred as a result of improperly implementing Kanban techniques.
Kanban Is A Japanese Word
If translated to English, Kanban means “billboard”. It can also refer to a signboard. The Kanban system is used to bring about a sense of organization in lean management. Its concept is mostly based on the utilizing of cards to convey certain defined and targeted messages to workers and employees within the organization.
The Kanban system can also be applied to the JIT concept. It is very important to understand each and every concept and module of the Kanban system. This will enable one to have the knowledge and idea about how to implement or incorporate the technique(s) into your own organization or business system.
The Kanban system is made out of six types or variables although only two of them are commonly used. This is because of their popularity and simplicity. The two variables mostly consist of the input system and the output system. This is a very ideal way of managing your inventory and reducing costs. The output and input method ensure that the work done or created within the organization has a continuous flow or progress. Every resource is then made available according to it’s usage or requirement. The input and output system works simultaneously from one process to another. The Kanban system, or method, helps you in managing your inventory since you’ll not experience problems such as low stock, as new inventory flows in, as needed.