Kanban in Industry: 5 Applications That Work

Five applications, no invented cases

This text does not report cases of specific companies or promise results. The five scenarios below are illustrative: typical situations that repeat in different factories and where kanban is usually a good answer.

For each one, you see the problem, the kanban design, and what to measure. Card quantities do not appear here: the calculation is in kanban sizing, and the overview of the method is in kanban: practical guide.

1. Component replenishment on the assembly line

Problem (illustrative): screws, connectors, and small parts are sometimes short and sometimes in excess at the side of the line. The operator interrupts assembly to fetch material.

Kanban design: one bin per item, with two compartments. When the first empties, the bin's card goes to the collection box and the material handler replenishes from the warehouse on a fixed route.

What to measure: number of stops for lack of material, replenishment time, and items that fell below the minimum.

Common trap: supplying off a fixed route. Without a defined schedule and path, the material handler becomes a firefighter and the card loses its meaning.

2. Packaging kanban

Problem (illustrative): boxes, pallets, and labels run out at shipping, and finished product waits for packaging. In other weeks, the space is taken up by empty packaging.

Kanban design: the empty pallet itself is the signal. A marked area with a maximum and minimum quantity works as a space kanban: if the area is empty, it is time to order; if it is full, nobody replenishes.

What to measure: shipping delays due to lack of packaging and average quantity of packaging in stock.

Common trap: not marking the maximum limit. Without it, the space fills with packaging and the kanban turns into a warehouse.

3. Supply supermarket

Problem (illustrative): production consumes raw material from several families, but orders are placed by estimate, creating large stocks of some items and stockouts of others.

Kanban design: a supermarket close to production, with a fixed address per item and a withdrawal card. Production withdraws; the card goes back to the warehouse or the internal supplier as a replenishment order. See the concept in pull production.

What to measure: stockouts, turnover per item, and time between withdrawal and replenishment.

Common trap: including all items at once. Start with those of the most regular consumption and leave the sporadic ones for later.

4. Tooling and maintenance kanban

Problem (illustrative): inserts, drills, and machine spare parts are bought only after they run out. The machine stops waiting for the item.

Kanban design: each critical item has a reorder point marked on the shelf or in the cabinet. When it reaches the mark, a card triggers the purchase. High-cost, low-turnover items stay outside the kanban and follow another rule. Link it with the TPM routine.

What to measure: machine downtime hours due to lack of parts and tool changeover time.

Common trap: ignoring the supplier lead time when setting the reorder mark. If purchasing takes long, the point needs to be higher.

5. Supplier kanban

Problem (illustrative): the supplier delivers large, irregular batches. The factory stocks up to protect itself and still suffers shortages.

Kanban design: returnable containers with a card. The empty container goes back to the supplier and its card authorizes the next delivery, in smaller batches and at an agreed frequency. The supplier needs a forecast and leveling, as in heijunka.

What to measure: on-time delivery compliance, the item's inventory level at the factory, and shortage frequency.

Common trap: imposing the system on the supplier without agreeing on volume and forecast. The agreement must serve both sides, and batch quality must be stable.

What the five applications have in common

In all of them, consumption triggers replenishment, the quantity is limited, and the signal is visible. These elements form the visual management foundation of the loop.

Another similarity: none of them works with chaotic demand or unstable quality. Before the card comes process stability.

Next step

Choose one of the five scenarios that resembles your current pain. Measure the baseline for two weeks: stops, stockouts, and inventory. Only then design the loop, set the limit, and run a small pilot. Compare before and after with the same indicators.

If the pilot improves nothing, do not adjust the card before investigating the cause: instability in quality and demand is usually the reason.

Also record the loop's rules on one page: who withdraws, who replenishes, what the limit is, and what to do when the card is late. A written rule keeps the system from depending on the memory of a single person. For the classic rules, see the golden rules of kanban.

Frequently asked questions

Are the scenarios in the article real cases?

No. They are typical, illustrative scenarios, described without numerical results, to show where kanban usually works.

Where does kanban work best in industry?

On items of repetitive, reasonably stable consumption, with a known and short replenishment lead time.

Does kanban work for low-turnover items?

Generally not. Rare, expensive items usually follow another replenishment rule, such as order on demand.

What should I measure after implementing kanban?

Shortages and stops, inventory level, turnover, and replenishment time. Compare with the previous baseline.

Do I need physical cards?

Not necessarily. The signal can be an empty space, a bin, or an electronic record, as long as it is visible and limited.

About the author

Vagner Soares

Lean Manufacturing & Behavioral Management Specialist

Over 20 years in the automotive and metalworking industries (GM and Dana), Lean Manufacturing practitioner since 2006. SENAI instructor and mentor in Brazil’s Brasil Mais Produtivo program, delivering consulting, training and audits for 50+ companies, combining quality, productivity and people development.

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