The KANBAN method for controlling production and material flow is based on the actual stock quantity in production. Material that is required on a regular basis is continually provided in small quantities in production. Replenishment or the production of a material is only triggered when a higher production level actually requires the material. This replenishment is triggered directly in production using previously maintained master data. The entries you have to make in the system have been reduced to a minimum, for example, the scanning of a bar code. All other actions in the system are carried out automatically in the background.
With KANBAN, the production process controls itself and manual posting is reduced as far as possible. The effect of this is a reduction in lead time and in stock.
In KANBAN, the signal for material replenishment can be triggered, for example, by the work center that requires the material (demand source) by sending a card to the work center that is responsible for manufacturing the material (supply source). This card describes which material is required, the quantity of the material required and where the material is to be delivered. The name KANBAN originally stems from these cards, which are called "kanban" in Japanese. When receiving the material, you can automatically post the goods receipt at the demand source by a further kanban signal by bar code, for example.
The following graphic illustrates the KANBAN process:
If you want to make full use of the KANBAN technique, your production must fulfill a number of preconditions: