In the world of inventory management, the Kanban system stands out as a powerful tool for enhancing efficiency and reducing waste. For over 40 years, our Lancashire-based family-run business has been at the forefront of providing innovative inventory solutions to some of the biggest names in aerospace, pharmaceuticals, and train lineside businesses. In this guide, we’ll introduce you to the concept of Kanban and show you how it can revolutionise your inventory control processes.
What is Kanban?
Kanban, a Japanese term meaning “visual signal” or “card,” is a scheduling system for lean and just-in-time (JIT) production.
It was developed by Toyota in the 1940s to improve manufacturing efficiency.
The core idea is simple: use visual cues to signal when to produce or restock items, ensuring a smooth and efficient workflow. Something we all strive to achieve.
Key Benefits of Kanban
- Enhanced Efficiency: Kanban streamlines inventory processes by reducing the time employees spend searching for parts and managing stock.
- Reduced Waste: By aligning inventory levels with actual consumption, Kanban minimises overproduction and excess inventory.
- Improved Workflow: Visual signals and clear instructions help maintain a continuous flow of materials, preventing bottlenecks and delays.
- Increased Flexibility: Kanban systems can be easily adjusted to accommodate changes in demand, ensuring optimal inventory levels at all times.
How Kanban Works
Kanban systems use visual signals, such as cards or flags, to indicate when an item needs to be replenished. Here’s a simple breakdown of how a Kanban system operates:
- Visual Signals
Kanban cards, or bins in our case, are placed at specific points in the inventory process. Each card or bin represents a specific quantity of an item. When the item is used, the card or bin moves to a designated area or changes colour, signalling that it’s time to reorder or produce more.
Our systems have a simple flag attached to each bin which pops up and signals when the active stock has depleted and it’s time to reorder.
- Just-in-Time (JIT) Production
Kanban supports JIT production by ensuring that items are only produced or restocked when needed.
This reduces the amount of inventory held at any given time, freeing up space and reducing carrying costs.
- First-In, First-Out (FiFo)
Kanban encourages the use of older inventory first, preventing stock from becoming obsolete or expiring.
This is particularly important in industries like pharmaceuticals, where product shelf life is critical.
TwinBin’s Kanban Systems
At TwinBin, we specialise in providing Kanban systems designed to meet the unique needs of various industries. Our two-bin systems are simple yet highly effective:
- Upper Bin: Holds the reserve stock.
- Lower Bin: Holds the active stock.
When the lower bin is empty, a flag is triggered, prompting immediate action to reorder or replenish.
This ensures a continuous supply of parts without overstocking.
Implementing Kanban: A Step-by-Step Guide
- Assess Your Current System: Identify areas where your current inventory management process is lacking. Look for frequent stockouts, excess inventory, and inefficiencies.
- Define Your Kanban Cards/Bins: Determine the appropriate visual signals for your inventory items. This could be cards, flags, or electronic signals.
We have varying kanban solutions: full systems like the TwinBins which can store and organise your stock or simple visual indicators which you can easily add to your current systems.
5. Set Replenishment Levels: Establish the quantity of each item that should trigger a replenishment order.
6. Train Your Team: Ensure that all employees understand the Kanban system and their roles in maintaining it.
7. Monitor and Adjust: Regularly review your Kanban system to identify areas for improvement and make necessary adjustments.
Conclusion: Unlocking the Potential of Kanban
Kanban is more than just a visual tool; it’s a powerful methodology for optimising inventory control. By reducing waste, enhancing efficiency, and improving workflow, Kanban systems like the TwinBin can drive significant improvements in your business performance. Whether you’re in aerospace, pharmaceuticals, or manufacturing, investing in a modern Kanban system is a strategic move towards long-term success.
Ready to transform your inventory management process? Email info@twinbin.com today to order your sample pack and learn how our innovative Kanban solutions can help you achieve your business goals.