Overlooked Waste Reduction of Kanban

Kanban is a very powerful tool when used properly.  It can lead to significant waste reduction.  Most people tend to think of the inventory waste reduction.  While kanban can lead to inventoryreduction, it could also lead to an inventory increase.  If a company is running so light on inventory and always creating shortages at the customer, kanban can help but it will most likely add inventory to the system.  Or if a company tries to use kanban on items that are not used but a couple of times a year, most likely the inventory will be increased in order to keep them in-stock year round.

No matter the circumstance though, if used properly, kanban will reduce the waste of information and material flow/transportation through the facility.

In a traditional environment, information flow is separated from the material flow.  The information comes from the office to someone out doing the work.  The person doing the work creates a schedule to be published.  When the schedule is published the material handler moves the material to the area to be worked on.  Then the material is processed.

The genius of kanban is taking the information flow and the material flow and combining it into one.    When the kanban is returned to the supplier, it triggers the work to be completed and when to be completed by.  It becomes the scheduling and the inventory control, as well as directing the where and when for the material to flow.  The kanban travels with the matieral and describes what the material is, the quantity to produce, who ordered it, and when it is due.  All in one package.

This reduces a lot of transactional waste of transportation and can eliminate non-value added work done by some people, freeing up time to do more value added work.

This is often missed because many people focus solely on reducing inventory through kanban and not reducing inventory through flow.  So, in cases when the inventory is increased, and rightfully so, due to a kanban system then kanban gets a bad name because “it isn’t lean.”  As Mark Graban would say, that is more L.A.M.E. then Lean.

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Posted on September 22, 2010, in Flow, Tools, Waste and tagged , , , , , , , , , . Bookmark the permalink. 1 Comment.

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