What Is Kanban Scheduling?

What are the benefits of Kanban scheduling?

Kanban’s core philosophy focuses on establishing a stable production flow that is based on customer demand. 

Therefore, production work takes place only when a customer demand request comes in. Such a production scheduling system has many benefits including:

• Significant reduction in inventory with just-in-time production improving cash flow
• Limits the work-in-progress and helps save on raw material and production costs
• Reduces unnecessary product wastage and saves production costs
• Increases team productivity and allows companies to scale efficiently

What are the different kinds of Kanban scheduling systems?

Here are the most widely used Kanban systems:

1. Production Kanban - In this Kanban system, any sold or consumed items are replaced with new ones.
2. Withdrawal Kanban - Items are moved or relocated from one work process or place to another in a withdrawal Kanban. 
3. Signal Kanban - Signal Kanban is a system that triggers replenishment or production of a specific product with a pre-defined batch size.

How does Kanban scheduling work?

Kanban scheduling has a systematic approach to work that can be better understood with a simple example. Here’s a sample Kanban scheduling system that a supermarket may have.

• Supermarket stores hundreds of defined inventory items in different locations
• A customer selects specific items and goes to the checkout counter to purchase them
• The cashier scans the items and emits signals or ‘Kanban’ to the inventory database that the chosen items have been consumed and are no longer in stock
• Now supermarket employees can refill the stock after specified quantities of supplies are depleted

When is Kanban scheduling useful?

Though Kanban methodology is a holistic concept that can be applied across disciplines, it is beneficial for certain situations:

• When consumption demand is relatively stable or predictable
• Time to replenish stocks is clear and can be predicted
• Custom production is required where lot sizes can be different across orders