Kanban in Manufacturing: Examples and How It Works
Kanban started on the factory floor. Learn how the Kanban production system works, the types of Kanban cards, Toyota’s rules, how pull differs from push – and see three real Kanban board manufacturing examples.
Quick answer: Kanban in manufacturing is a pull-based production system: downstream processes withdraw parts as they need them, and Kanban cards authorise upstream processes to make or move exactly what was used. It was developed by Taiichi Ohno at Toyota and limits work in progress, inventory and overproduction.
1. Key Takeaways
- Kanban in manufacturing is a pull system: nothing is produced without a signal from the next process.
- It was developed by Taiichi Ohno at Toyota and is a core part of the Toyota Production System.
- The main card types are production and withdrawal (transport) Kanban.
- Kanban limits WIP, shortens lead times and makes problems visible.
- A Kanban board helps factory teams manage orders, issues and improvement projects.
2. What Is Kanban in Manufacturing?
Kanban in manufacturing is a pull-based production system in which downstream processes withdraw parts as they need them, and Kanban cards or signals authorise upstream processes to make or move exactly the quantity that was used.
“Kanban” is Japanese for signboard or card. On the factory floor, a Kanban is attached to a container of parts. When the container is used, the card becomes an instruction: make or move one more container. Without a card, nothing is produced – which is what prevents overproduction.
3. How the Kanban Production System Works
The Kanban production system is a loop: the line uses parts, the withdrawal card goes back, a production card authorises the upstream cell, the supermarket is refilled and the loop repeats.
Toyota began developing this system in the late 1940s after studying how supermarkets restock shelves only when customers take products, and applied it in its main plant machine shop in 1953.
4. Types of Kanban Used in Manufacturing
The main types of Kanban in manufacturing are production Kanban, withdrawal (transport) Kanban and supplier Kanban, with signal, emergency and electronic variants.
| Type | What it authorises |
|---|---|
| Production Kanban | A process to produce a fixed quantity |
| Withdrawal / transport Kanban | Moving a container to the next process |
| Supplier Kanban | An outside supplier to deliver |
| Signal Kanban | A batch when stock reaches a reorder point |
| E-kanban | The same signals sent by scan or sensor |
5. Toyota’s Rules for Kanban Production
Toyota’s Kanban rules say that each process takes only what it needs, produces only what is requested, makes nothing without a Kanban, keeps the card with the parts, never passes on defects and steadily reduces the number of cards.
- The downstream process withdraws only what it consumes.
- The upstream process produces only the quantity and sequence requested.
- Nothing is made or moved without a Kanban.
- A Kanban always travels with its parts.
- Defective parts are never sent to the next process.
- Reducing the number of Kanbans exposes problems to improve.
Hang the rules on a board the floor can see
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6. Push vs Pull Production
Push production builds to a forecast and lets WIP pile up; pull production with Kanban builds only what was consumed and caps WIP with the number of cards.
7. Kanban Board Manufacturing Examples
Here are three Kanban board manufacturing examples built in PlanBoards – a production board, an andon and issues board and a Kanban rollout board.
Production Kanban board – Line 1
Kanban Received, Scheduled, Producing (WIP 3), Quality Check and To Supermarket. Cards carry the production Kanban and the heijunka (levelled) schedule.
Factory floor – andon and issues
Problems raised at the andon move from Open Issues to Root Cause, Fixing (WIP 2) and Standard Work.
Kanban rollout – Plant 1
The introduction of Kanban itself, managed as a project: Map, Pilot, Scale and Sustain.
8. Benefits of Kanban in the Manufacturing Industry
Kanban in the manufacturing industry reduces WIP and inventory, shortens lead times, makes the floor easier to read and exposes problems so they can be fixed.
9. How to Introduce Kanban in a Factory
To introduce Kanban in a factory, map the flow, create a supermarket, calculate card numbers, make the cards and train people, pilot one loop and reduce cards over time.
- Map the flow. Draw the value stream and pick one product family.
- Create a supermarket. Decide where buffer stock between processes will sit.
- Calculate card numbers. Demand × lead time × (1 + safety) ÷ container quantity.
- Make and train. Print cards and train operators on the rules.
- Pilot one loop. Run one line for a few weeks and track stock-outs.
- Reduce cards over time. Remove cards to lower WIP and expose problems.
10. Kanban in Manufacturing FAQ
These are the questions people ask about Kanban on the factory floor.
What is Kanban in manufacturing?
Kanban in manufacturing is a pull-based production control system: downstream processes take parts as they need them, and Kanban cards or signals authorise upstream processes to produce or move exactly what was used.
Who invented the Kanban production system?
Taiichi Ohno developed Kanban at Toyota as part of the Toyota Production System. Toyota began applying the idea in its main plant machine shop in 1953, inspired by how supermarkets restock shelves.
What are the main types of Kanban in manufacturing?
Production Kanban (what to make), withdrawal or transport Kanban (what to move), supplier Kanban (what to order), plus signal, emergency and electronic Kanban variants.
What is a Kanban supermarket?
A small, controlled store of parts placed between processes. Downstream processes withdraw from it, and each withdrawal triggers production to refill it.
How is Kanban different from MRP?
MRP pushes production based on forecasts and schedules. Kanban pulls production based on actual consumption. Many factories use MRP for planning and Kanban for daily execution.
What is a Kanban board in manufacturing used for?
Teams use Kanban boards to track production orders, quality issues, maintenance, improvement projects and the Kanban rollout itself.
Does Kanban work for every factory?
It works best for repetitive production with fairly stable demand. Highly custom, one-off production usually needs other scheduling methods alongside it.
11. Sources and Further Reading
These are the sources behind this guide.
- Wikipedia: Kanban · Toyota Production System
- Toyota Motor Corporation. Toyota Production System.
- Lean Enterprise Institute. What is Lean?
- Ohno, T. (1988). Toyota Production System: Beyond Large-Scale Production. Productivity Press.
Related pages: SME & Projects · Features · Sharing Cards
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