Kanban - Part II

II.
Fundamentals of Kanban
A. History and Origins
In the late 1940s, the Toyota Group was facing a crisis due to intense competition from
both domestic and foreign corporations. To address this crisis, engineer Taiichi Ohno
proposed a solution aimed at improving and optimizing the group's production system.
Initially named Just-in-Time, this method was designed to synchronize production
schedules with customer demand by identifying shortages of materials in the process.
The team utilized multi-colored Kanban cards to record information, and these cards
sequentially moved through workstations in the production line: a card might serve as
an order sheet at a workstation, then transition to a transportation order as it moved to
the next station.
When implementing this, Toyota adhered to the following principles:
• Details are always passed from the preceding stage to the succeeding stage.
• Production does not commence without receiving the Kanban card.
• Each container on the production line must contain a Kanban card specifying: product
details, origin, destination, and quantity.
• Each container, each tray must contain the exact designated quantity, without excess
or shortage.
• Defective or excess items are not passed to the subsequent stage.
• The time interval between deliveries and the number of Kanban cards are minimized.
As a result, the Kanban cards truly helped the team tightly control each stage in the
production line. Importantly, they all demonstrated a connection to the preceding
workflow and carried complete information.
Later on, engineer Taiichi Ohno and the Toyota Group realized that the Kanban principle
was not limited to the manufacturing domain but could be applied to any other process
or organization. This realization laid the groundwork for the Kanban management
method as it is known today.
B. The Principles and Philosophy of Kanban
The Core Principles of Kanban
Kanban comprises 6 core principles:
1. Visualize the workflow:
Utilize a Kanban board to visualize the workflow.
A Kanban board typically consists of columns representing different stages of the work
process, and cards representing tasks.
2. Limit work in progress (WIP):
Limit the number of tasks allowed to be in progress simultaneously at each stage of the
work process.
This helps minimize waste from congestion and work overload.
3. Manage the workflow:
Track and adjust the workflow to ensure that tasks move smoothly through the system.
Identify and eliminate bottlenecks in the work process.
4. Establish explicit process policies:
Define clear rules and procedures for moving tasks through the Kanban board.
This helps ensure consistency and transparency in the work process.
5. Implement feedback loops:
Gather regular feedback on the work process and make necessary adjustments.
Utilize feedback loops for continuous improvement of the Kanban process.
6. Improve collaboration:
Encourage collaboration and communication among team members.
Create a work environment where individuals can easily share information and support
each other.
The Philosophy of Kanban
Kanban is based on a philosophy that emphasizes continuous improvement and

adaptation to change. This method encourages teams to objectively observe their
workflow and make small yet effective changes to enhance efficiency. Kanban also
underscores the importance of respect for individuals. It encourages teams to empower
employees so they can make decisions and solve problems independently.
C. The Difference Between Kanban and Scrum
Scrum Kanban
History and Software Development Lean Manufacturing
Origins
Operating Continuous improvement through the Utilize imagery to visualize
Principles implementation and evaluation of workflow and tasks (board,
Sprint cycles columns, and cards)
Core - Transparency (Minh bạch) - Effective (Hiệu quả)
Principles - Adaptation (Thích ứng) - Efficient (Hiệu suất)
- Inspection (Kiểm tra) - Predictable (Có thể dự đoán)
Workflow Fixed duration, with sprint phases As a continuous flow
Deployment - Build and manage Product Backlog - Sketch the workflow on the
Steps - Plan Sprint Kanban board
- Execute Sprint - Set WIP Limit for each
- Daily Stand-up column
- Sprint Review - Create Kanban cards
- Sprint Retrospective - Start working
- Improve the Kanban system
Team A complete team with 3 specific roles: No specific roles assigned,
Structure Product Owner, Scrum Master, Scrum applicable to any team
Development Team structure
Performance Completion velocity Cycle time
Metrics Workload volume Total time from request to
Team satisfaction completion
Efficiency of workflow
Appendix: Images
• Traditional Kanban Signboard: This image depicts a shop in Japan with a

traditional Kanban signboard hanging in the front. This signboard can be seen as
an initial example of how Kanban was used to attract attention and convey
information.
• Kanban System in Toyota Factory: This image illustrates how the Kanban
system is used in Toyota factories to manage workflow and inventory. Kanban
cards are attached to material containers to signal when more materials are
needed.
• Taiichi Ohno implementing Kanban at Toyota to manage production:
• Kanban spreading to other industries in Japan:
• Kanban introduced to the West by David J. Anderson:

• Kanban applied in software development and project management:
• Kanban becomes more popular and applied in various fields:

• The difference between Kanban and Scrum:

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II.

A. History and Origins

When implementing this, Toyota adhered to the following principles:

• Production does not commence without receiving the Kanban card.

• Defective or excess items are not passed to the subsequent stage.

The Core Principles of Kanban

Kanban comprises 6 core principles:

1. Visualize the workflow:

Utilize a Kanban board to visualize the workflow.

2. Limit work in progress (WIP):

This helps minimize waste from congestion and work overload.

3. Manage the workflow:

Identify and eliminate bottlenecks in the work process.

4. Establish explicit process policies:

This helps ensure consistency and transparency in the work process.

5. Implement feedback loops:

Utilize feedback loops for continuous improvement of the Kanban process.

The Philosophy of Kanban

Kanban is based on a philosophy that emphasizes continuous improvement and

C. The Difference Between Kanban and Scrum

• Traditional Kanban Signboard: This image depicts a shop in Japan with a

• Kanban introduced to the West by David J. Anderson:

• Kanban becomes more popular and applied in various fields:

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