Kanban cards are used in manufacturing plants to signal when inventory is low. They were developed by Taiichi Ohno in the late 1940s and are used to reduce costs by controlling inventory. There are two main types of kanban cards: move cards and production cards. Kanban posts are the central location for all kanban cards. When an item is needed, an employee will insert the appropriate card into the kanban portion of the post for new orders.
Kanban cards are an essential part of any kanban system. Cards are used in manufacturing plants to signal that a part or material is running low and needs to be replaced. Each kanban card provides specific information about what is needed and exactly how much is needed.
These cards were originally developed by Taiichi Ohno in the late 1940’s for use in Toyota® factories. Ohno borrowed the word kanban from Japanese, which originally referred to elaborate wooden or metal signs used as trademarks in 17th-century Japan. Since the mid-20th century, less elaborate kanban paper has been used in factories around the world to reduce costs.
The purpose of a kanban system is to reduce costs by controlling inventory. Overstocked wastes space, and employees waste time storing excess materials and moving them later. No company, however, wants to run out of an item and keep customers waiting. Proper use of kanban cards ensures that there is enough inventory on hand for normal operation with very little overstock.
Move cards, also known as transportation cards, and production cards are the two main types of kanban cards. A movement card is used to request the movement of materials from one work station or storage location to another within a manufacturing facility. This is most often used for common parts, such as screws and bolts, that can mostly be kept in one place, so they don’t take up much space at a specific workstation.
Production schedules signal that more than one part needs to be manufactured, either by manufacturing in-house or by ordering from a supplier. A signal or material card is a type of production card that tells managers to order a specific material. Vendor listings can be sent directly to a vendor to order more stock.
A kanban post is the central location for all kanban cards. When something is needed, an employee will insert the appropriate card into the kanban portion of the post for new orders. When a manager places an order, he will enter the corresponding kanban card in the section for items that have been ordered but not received.
In most systems, the kanban tag is entered when the item has been received. When the stock is depleted, the kanban paper will become visible and an employee will place the paper in the kanban post to place the order. In other systems, all cards remain at the post. If an item is not ordered or is awaiting shipment, it will simply be filed with the other kanban cards until it is needed.
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