Kanban is a Japanese word meaning signboard, sign, or card. A Kanban system primarily uses visual cues to signal when a particular action should occur. In a manufacturing environment, for example, a card listing specific information can be sent from the shipping department to the assembly line requesting a certain number of products. The Kanban card in this example serves as a link between the two departments and works to trigger the action of moving that material, enabling the work to occur exactly when it should.
Systems based on the idea of Kanban are commonly used in hospitals, offices, homes, warehouses, and countless more facilities. Used as a part of a Lean manufacturing system, many businesses have found Kanban as a beneficial way to reduce inventory and eliminate waste from the workflow.
Businesses that employ Kanban systems do so with specific rules in mind and meticulous planning before beginning the transition to this simple yet effective method. No matter how different the unique Kanban systems look from business to business, they're all based on the same basic idea: using visual cues to trigger action.