To appreciate the principles of Kanban, you must understand first what it really is all about. The common misconception is that it is an inventory control system, when in fact it is a scheduling system. The system basically tells you what to produce and when to produce it. From there you can determine how much you should produce. This lean manufacturing tool is what can save your business money, time and other resources usually wasted during the manufacturing process of a product.

Before Kanban became popular among Western manufacturers, the assembly line setup in mass production scenarios meant lots of people working in groups but with little interaction or concern with or for the other groups. There was no unified scheduling system and delivery times per group were usually long. Maintaining overall quality and keeping wastage to a minimum was a challenge because of components being produced separately with updates not communicated effectively and regularly among groups.

However, lean production helps solve all those issues. Kanban identifies the causes behind wastage and eliminates them, and essentially produces only what end users want and when they actually want or need it. Say goodbye to producing things on a mass basis; the key thing now is to deliver on demand, reduce inventory, aim for continuous improvement in processes, which include reducing shortages.

The scheduling system and manufacturing process involves these basic principles and rules:

You do not send defective products or materials to the subsequent process.

The subsequent process obtains only essential materials.

Produce only the exact quantities.

Stabilize the manufacturing process.

Another great thing about Kanban is that it adjusts to the changing volume of demand. It allows companies to self-regulate their manufacturing while still adhering to a scheduling system. They can replenish or refill based on usage and according to signals in the system that indicate material levels and order volume. Additionally, this flexible system lets manufacturers produce new models or prototypes using available material.

Inventory-wise, a manufacturer need not fret with handling or storage issues. Because Kanban discourages "hoarding" material for future use, companies can save thousands, even hundreds of dollars, on storage needs. In the old days, manufacturers had to invest in massive warehouses to store superfluous materials and even unsold products. This meant having to constantly move things around to make room for another batch of excess material, which again spells more money. But an efficient system with a fixed quantity, a dedicated location and predefined method of moving material can cut down on material management costs.

With that said, Kanban also help improves a company’s "5S", which is a housekeeping or organization methodology that sorts, straightens, sweeps, standardizes and sustains workplaces in the name of efficiency. All unnecessary tools, part and instructions are removed and the work spaces are organized for maximum efficiency and output.

In summation, the methods and principles work to give your company the leanest, time-saving, cost-saving and fastest way to produce while minimizing waste and without sacrificing quality . Make this system a part of your manufacturing process and enjoy the benefits it will surely bring you.