Question
The Kanban system improves efficiency and visibility in the supply chain by using a visual method to manage work as it moves through a process. It uses cards (Kanban cards) to represent work items and columns to represent each stage of the process. When a card is moved from one column to the next, it signals that work has progressed to the next stage. This allows everyone involved in the process to see the status of every piece of work at any time. This visibility leads to improved communication and coordination, reducing the time it takes to complete tasks and identify bottlenecks. Furthermore, it helps in reducing stockpiling as each material in the production process has its own Kanban card, ensuring suppliers work off the same system.
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The epiphany came in 1956 when Ohno went to the US and visited the American supermarket chain Piggly Wiggly. The system inspired him to use paper cards across the supply chain to track demand and signal actions as needed. These cards would be attached to the production line until a card was finished. The card would then be attached to the car, and once it is sold, the card would go back to the production line. Only when the card would return to the line could the workers start developing a new product. Even then, cards would be held in a "pending queue" until they hit a specific number, which indicated there was enough demand to continue. (Source) Cards weren't just used for cars - but every material in the production process had its own Kanban card so that suppliers would work off the same system. This reduced stockpiling, improved efficiency, and provided visibility throughout the whole supply chain. By 1964, the Kanban system spread throughout the whole company and was used across...
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