Logistics Wordbook


Logistics Glossary

What is Kanban?

Kanban is a Japanese word for card or signal, with the foundation from Lean the use of Kanban’s is one method of operationalizing the pull system. In a simple form, it is a method used by a consumer or customer to signal for the supplier to deliver more items. The common principle used is that the receipt of a Kanban triggers the moment, production or supply of one unit or standard container of units.

Kanban is most suited for operations with a stable demand and predictable forecast, meaning a warehouse with a high variation of parts will not have much success with the implementation of Kanban.

It is a method used to manage workflow for establishing, managing, and improving services, this is done through six different practices that include:

  • Visualizing workflow,
  • Limit WIP (Work In Progress),
  • Manage Flow,
  • Make Process Policies Explicit,
  • Feedback loops and improving collaboratively.

What is a Two-bin System?

Two-bin systems is a type of Kanban that uses pull and is easily applied for small material. The system is based on having two bins of the same article available at the picking location. The picking will be performed at one bin at a time, when the first bins is empty it will be replenished, and the picker can continue picking from the second bin. When both bins are full, they should represent a maximum quantity for that article in that workspace

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