Kanban ‘Use’ for ‘Business Growth’!

The term ‘Kanban’ is generic and describes two approaches to ‘Operations Management’. The first ‘Lean Tool‘ Kanban use involves a ‘Production Level‘ view where ‘Parts Replenishment’ occurs in a ‘Just in Time’ (JIT) ‘Supply Chain’ system. As ‘Parts’ are consumed in production, a ‘Trigger Point’ is reached and a ‘Kanban Card’ signals ‘Replenishment’ to resupply parts before the final ‘Buffer’ quantity is consumed. This system consists of a ‘Parts Bin’ in inventory that replenishes the ‘Production Floor’ resetting ‘Part Quantity’ until consumption signals another resupply. After the resupply, a ‘Vendor Activity’ is enacted to replenish the ‘Bin Inventory’. (This ‘Kanban’ operation is known as the ‘3-bin Kanban System’).

The main benefit of this JIT Kanban system focuses on aligning part inventory levels with the ‘Rate of Demand’ set by the customer which is translated into the ‘Heartbeat of Production’ and accompanying inventory ‘Part Levels’.

The second ‘Kanban’ approach involves an ‘Upper-Level’ operations view of the ‘Flow of Work’ which utilizes a ‘Kanban Board’ to visualize ‘Stages of Work’. ‘Service’ and ‘Knowledge’ (software development) work is often optimized with this type of Kanban system. (Also known as SCRUM Development using the ‘Agile’ production philosophy).

In this ‘Kanban’ system, a ‘Master Controller’ addresses ‘Production Issues’ at each stage of product development. This ‘Operations View’ optimizes ‘Work Flow’ with available ‘Work Capacity’ and allows the ‘Master Controller’ to ‘Spot Bottlenecks’ and adjust as required. The ‘Master Controller’ acts as the ‘Point-Man’ to optimize production of the ‘Development Team’. The ‘Customer’ is represented by a ‘Product Owner’ who represents ‘Stakeholders’ and the ‘Voice of the Customer’. A ‘Kanban Board’ allows a ‘Visual’ to schedule and deliver ‘Stages of Work‘ required for efficient product development.

Each of these Lean ‘Kanban’ approaches to ‘Optimization’ focuses on the efficient delivery of parts and products from Kanban systems which delivers ‘PRODUCTION CAPACITY‘ and ‘BUSINESS GROWTH’!

Todd Adams

OBR Optimization Engineering: Lean Six Sigma CI, ERP Software Development, Quality Systems Enhancement, Business Process Improvement, CI Project Work. www.OBREngineering.com; POC: Todd Adams, Todd.Adams@OBREngineering.com; (424) 241-0290.

As the Famous Sales Guru Grant Cardone says, 10X your OBSESSION!

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