In this meetup we explored Kanban, the lean principle that helps control inventory in lean manufacturing processes. We will discussed its history and academic definitions, and explained how it can apply to different personal and professional contexts to promote process optimization.

1. Introduction to Kanban:
Principles of Inventory Control
NYBPP Meetup (3/9/2017)
Highlights and Q&A

2. Agenda
I. Introduction to Kanban: Principles of Inventory Control
■ What is ‘Kanban’?
■ Kanban in Lean Methodology
■ Kanban in Agile Methodology
■ Automation & Transparency through Visualization
■ The Power of Pull
■ Summary
II. Q&A
■ How do Kanban concepts translate to digital services?
■ How can Kanban concepts be applied to my personal life?
■ How do I control my inventory if everything is pushed to me?

3. Introduction to Kanban: Principles of
Inventory Control
Achieving pull through inventory control

4. What is Kanban?
Kanban translates literally to “billboard
or signboard” in English. When it was
first developed, it was primarily
implemented as a tool in the physical
space called a “kanban card”.
We now translate it more loosely to a
system of visualizing inventory
movement as a way to control it.
Kanban as a way of thinking is one of
the foundational elements of “pull” -- a
demand-driven vs forecast-driven
process mentality.
The way we use kanban cards to
control physical inventory aligns with
the overall principles of lean process
improvement.

5. Kanban in Lean
Rules of Kanban:
● The later process collects product from the earlier process
● The later process informs the earlier process what to produce
● The earlier process only produces what the later process
needs
● No products are moved or produced without Kanban authority
● No defects are passed to the later process

6. Kanban in Lean
Decreasing the size or number of kanbans within the system will increase
the system’s sensitivity to changes or problems. This is often the best way
to highlight issues within the process and to drive improvements.
Kanban system
configurations are based
on the following variables:
● Demand
● Lead time
● Downtime
● Changeover time
● Length of shift(s)
● Safety stock

7. Kanban in Agile
In this context, kanban refers to a method for managing knowledge work
which balances demands for work with the available capacity for new work.
Work items are visualized to give participants a view of progress and
process, from task definition to customer delivery. Team members "pull"
work as capacity permits, reducing work in process, improving task
completion rates, and allows for organic optimization of teams.
This is the exact same
logic as is found in lean
manufacturing.
Instead of physical
inventory, inventory is
tasks assigned and the
pull is coming from the
customer in the form of
a requested deliverable
that relies on the
completion of the tasks.

8. Automation and Transparency through Visualization
The power of Kanban is in visualization!
A common theme in our discussions is visualization. By visualizing elements that
would not normally be seen, the entire process chain becomes more transparent.
This allows the response to variables to be automated, by those who might not
normally have the visibility of the overall process needed to react properly.

9. The Power of Pull
Using a “pull” rather than a “push” system is foundational
to lean thinking and process improvement. Allowing
consumption to pace inventory is a “pull” approach.
● Reducing WIP, and producing outputs in a market-aligned, just-in-time fashion,
has a big impact on waste reduction and smooth process flow-through.
● Kanban is a way to visualize the effect of market demand on operating volume.

10. Summary
• Kanban helps visualize inventory levels and usage in a way
that enables it to be controlled within a process from end to end,
reducing waste and improving productivity.
• Kanban is applied differently in knowledge work than in
manufacturing, and has a prominent position in Agile methods.
• Kanban helps add transparency to processes by allowing
communication to be coordinated automatically within large
processes where many different parties are involved.
• Kanban combats stockpiling, batching, uneven flow, and
provides more of a realistic representation of the pull of
market demand - making processes more reactive to the value
they are creating and better set up for continuous improvement
efforts.

11. Q&A
Answering questions from the Meetup

12. How do Kanban concepts translate to digital
services?
Exactly the same as physical inventory.
● Emails are the biggest form of digital inventory,
followed by transactions in administration systems
of any kind.
○ With these items, you want to avoid all the same
pitfalls and problems as with physical inventory.
● Increasing process transparency, introducing visual
controls, and letting employees pull tasks (rather than
have tasks pushed) are all critical, in an environment
where the process is less tactile and intuitive.

13. How can Kanban concepts be applied to my personal
life?
Anything you use and stock in your house
is inventory!
● Considering when to order and how much to stock of
your personal goods will generally help optimize your
space and your cost.
● Generally, increasing your understanding of how you
pull items to use as a consumer will help better plan
your budget and usage patterns even as an individual.

14. How do I control my inventory if everything is
pushed to me?
You can’t!
● When things are pushed on to you, you can’t
control flow, efficiency, etc. and that’s bad.
● You have to do everything you can to change your part
of the process to straight through flow, with low WIP,
and making sure that you pull it at the pace you can
work it. If you don’t have that kind of control you can’t
really do that much!

15. THANK YOU FOR COMING!
• Thank you so much for coming to our meetup – we hope to see you again
in future sessions and please don’t hesitate to post additional questions on
the group discussion board.
NYBPP Meetup
Please leave us a positive review!
• Also, join our Facebook Group!
https://NYBPP Meetup Facebook Group