Key takeaways
Kanban (Japanese for "signboard") is the practical mechanism behind pull production. Instead of pushing material forward on a schedule, each step makes or moves something only when a downstream signal says it is needed. The classic form is a card that travels with a bin: when the bin empties, the card returns upstream as authorisation to produce one more.
The deeper purpose is to limit work-in-process. By fixing the number of cards, you fix the maximum inventory between steps, which keeps lead times short and cash from piling up on the floor.
The loop is simple: a downstream process consumes a container of parts, the kanban signal goes back upstream, the upstream process produces exactly enough to refill it, and no more. With no signal, there is no production. The number of signals in circulation is a deliberate choice that sets the buffer between steps. Fewer cards means leaner flow but less cushion; more cards means more cushion but more inventory. The relationship to pull versus push is covered in pull versus push production.
This is the part most people miss. A capped work-in-process is uncomfortable on purpose. When inventory is unlimited, a slow or unreliable step is hidden because the buffer in front of it absorbs the variation. Cap the buffer and the problem surfaces immediately: the line stops, everyone sees where, and the pressure goes onto fixing the real cause rather than papering over it with stock. Kanban does not solve problems; it makes them impossible to ignore.
Kanban controls flow; Fabrico shows you whether the flow is actually healthy. When a pull loop keeps stalling at one step, Fabrico's live OEE and downtime by asset reveal whether that step is a genuine constraint, a reliability problem, or a quality issue, so you fix the right thing instead of adjusting cards blindly. The constraint view is covered in bottleneck analysis. Fabrico is built and hosted in the EU with data residency in mind and is ISO 27001 certified. To see where your flow really stalls, book a demo.
Many manufacturers pair these methods with the best inventory management systems.
For a practical next step, compare the leading options in our guide to the best shop floor management software.
A signaling system that pulls production: each step makes or moves work only when a downstream signal (a card, bin, or digital trigger) authorises it. This caps work-in-process and ensures nothing is produced before it is needed.
The number of signals in circulation is fixed, and production cannot happen without a free signal. So the maximum inventory between two steps is capped by the card count. When all signals are in use, upstream production simply stops.
Because the stop reveals a problem that unlimited inventory would have hidden. A capped buffer forces a slow or unreliable step into the open, directing effort at the real cause instead of masking it with stock.
When demand is highly variable or work is one-off, the refill logic breaks down and you get stockouts or overstock. Long changeovers also undermine it; reduce those with SMED before relying on small kanban loops.
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