A specific type of inventory control system. The kanban system is based upon a series of colored cards.

These cards denote such factors as quantity, the type of part and the manufacturer. A card is placed in the bin or other container with each group of manufactured items as an identifier for those involved with the next phase of production or distribution.

Basic Kanban Systems

The most basic type of kanban system involves the use of a few different types of cards to signal to different sections of a production process that a part either needs to be produced, is finished or more of a particular part is required. The most standard types of card used in this type of kanban are withdrawal kanbans and production kanbans. Withdrawal kanbans, also called conveyance kanbans, are used to authorize the passing of parts from one level of production to another. The card moves to the next stage until all of the parts it is attached to are used, at which point it returns to be attached to a new batch of parts. Production kanbans are used to order the production of new parts. This is how the most basic type of kanban production system works. "Pull"-Style Kanban

"Pull"-style kanban works in essentially the same manner as the basic kanban system, except the production of new parts for entrance into the production system depends on the level of demand from customers. Supermarket-Style Kanban

The supermarket version of kanban provides a more versatile option to manufacturers. This system requires that the manufacturer have a small stock of every kind of component necessary to their work. Each part will have a particular spatial allocation. As each component runs out, a message goes out to the supplier for more of those parts, and shipments of new components arrive regularly. Non-Card Kanban

Non-card kanban systems also exist. All that is required to make a kanban system work is some sort of signal to another part of the production process that

something is needed. For instance, if parts are taken off of a pallet, the simple act of returning the empty pallet can qualify as a kanban if need be. Electronic Kanban

Kanban systems do not necessarily use physical cards, either. Sometimes, an electronic system will be used to signal between the different parts of the production process.

Push vs. Pull System The kanban system described is a pull system. Traditionally, a push system is and has been employed. The push system is also more commonly known as the Materials Requirements Planning (MRP) system. This system is based on the Planning Department setting up a longterm production schedule which is then dissected to give a detailed schedule for making or buying parts. This detailed schedule then pushes the production people to make a part and push it forward to the next station. The major weakness of this system is that it relies on guessing the future customer demand to develop the schedule that production is based on and guessing the time it takes to produce each part. Over-estimation and under-estimation may lead to excess inventory or part shortages, respectively. One of the major reasons kanbans are used is to eliminate or reduce the above mentioned wastes throughout an organization due to the pull system that is employed. Waste can come from over-production (inventory) and therefore, the need for a stockroom. This waste is eliminated. Part shortages (under-production) are also eliminated. Costs are reduced by eliminating the need for many of the purchasing personnel and the paperwork associated with purchasing. The planning departments workload is also reduced as they no longer need to produce work orders.