What is kanban: definition, meaning and 5 use cases

By Matteo Biagini

Clarifying what is Kanban: Card, Method, Board

What is kanban?

Kanban is a visual element used to optimize work. Depending on the context, it can refer to a physical or digital card, a container, a method for managing materials (manually or with the support of dedicated software), or an approach to project management.

If this definition isn’t completely clear, that’s perfectly normal.

“What is kanban?” is one of the most common searches for those approaching production or organizational management, or simply for those who have heard about it.

However, online searches often yield partial or conflicting definitions, leading to confusion.

This article aims to provide a clear and concise answer to the question “what is kanban?” and its various applications.

Etymology and General Definition

The term kanban (accent on the first A, pronounced kànban) is a Japanese word that translates to “signal” or “visual card” since derives from the union of Kan (visual, 看) and Ban (signal, 板).

Generally, kanban helps optimize work using visual signals, with its form varying based on the context.

What is Kanban as a Card (Kanban Card)

In its simplest form, particularly in the production sector, a kanban is a paper card featuring:

Placement on the outside of a container, either permanently (e.g., adhesive paper) or temporarily (e.g., by insertion).
Concise information about its contents, such as the part number name and code, quantity, who supplies it (e.g., central warehouse), and who requests it (e.g., line A).
Facilitation of activities foreseen for that component. For example, it may indicate that the part inside the container must undergo a specific operation or be moved from one location to another.

Let’s consider an example: an operator assembling handles onto a support. When the container of handles is empty, the operator hands the corresponding kanban card to the warehouse operator. Based on the information on the card, the warehouse operator replenishes the material, without the need for emails, communication, or third-party approvals.

Everything needed is on the card, and receiving it is the signal that the original container has been emptied and must be refilled.

In a production context, the term kanban can also extend to other visual signals that indicate required actions, such as:

Containers without kanban cards, used exclusively for a specific component. When returned empty to the warehouse, they signal that the material needs to be replenished.
Empty spaces, such as a designated area in the warehouse, which indicate the need to be filled with the expected components.

What are electronic kanban cards (e-kanban cards)

An electronic kanban card, or e-kanban card (sometimes incorrectly written as “ekanban”), is a kanban card equipped with barcodes, QR codes, or RFID chips.

This electronic component allows the information associated with the card to be transmitted digitally.

In practical terms, when an operator finishes the components in a container, instead of physically returning the paper kanban card, they simply scan the barcode or QR code on the kanban card using a scanner gun, handheld device, or another scanning tool.

Once scanned, the replenishment request is sent to an electronic kanban software, where users can view not only which materials need to be replenished, but also the current status of inventory and stock levels.

What is an Electronic Kanban Software (or e-kanban software)

An electronic kanban software is a system used by companies to track, monitor, and manage all materials associated with electronic kanban cards.

In practical terms, it allows users to view, in a single interface, all the information needed to manage and keep under control:

Inventory stock levels, avoiding both excess stock and the risk of stockouts
Production orders, including multi-stage processes or sequential work cells
Orders with suppliers, subcontractors, and external partners
Material movements

The logic behind electronic kanban software is based on kanban principles as a method for managing materials in production and commercial environments.

What is Kanban as a Production Management System (Kanban System or Method)

Kanban cards, whether electronic or not, are fundamental elements of the kanban system or kanban method.

The kanban method is a production management strategy developed by Taiichi Ohno, industrial engineer who revolutionized Toyota’s production system, leading the company to become one of the most important car manufacturers in the world over the years.

This method aims to reduce waste, particularly overproduction and excess inventory, by purchasing/producing only the pieces required to replace those that subsequent processes have required following real market demand.

This means kanban method can be classified as:

Pull production methodology: production is externally “pulled” by the real market demand (and not by its forecasts) and internally by the pace of downstream production processes
Lean production methodology whom philosophy focuses on minimizing waste.

The method includes practical rules for kanban card management (e.g. the card must be detached only when the container is emptied and consumed) and broader process optimization principles. For examples “Never pass on defective parts to the next process” and “Stabilize, rationalize, and simplify production processes.”

What is Kanban as Project Management Method (Kanban Method)

In 2007 David J. Anderson adapted the kanban method for software development and project management, calling it the Kanban Method or simply Kanban with a capital K.

The Method is based on a series of principles (e.g. encouraging small and continuous improvements as well as active participation of everyone in identifying possible changes) and practices. These include the need to limit work in progress (WIP) and visually manage workflows.

Important notice: the use of workflow visualization methods is an essential requirement but not sufficient to apply the Kanban Method in its entirety and effectiveness.

What is Kanban Board as Workflow Visualization Tool

A Kanban board, whether physical or digital, is a tool for visualizing and managing workflows i.e. is one of the fundamental practices (but not the only one) envisaged by the Kanban Method applied to project management.

It typically includes:

Columns representing activity states (e.g., to-do, in-progress, completed)
Kanban cards or Post-it notes representing tasks, moved between columns according to process stages. On each card there are the main information about the task e.g. deadline, responsible etc.
Rules for applying Kanban Method principles, such as limiting WIP and Pull logic: according to this each collaborator “pulls” into the column of activities in progress only the amount that he/she knows can manage, avoiding work overload.

Kanban boards can be customized with additional columns, information, and elements like horizontal rows (called swimlanes) to separate activities by type, groups etc.

What are so-called “kanban software”

The term “kanban software” is a generic and somewhat informal term used, depending on the context, to refer to two different types of software.

In project management, it refers to project management software with boards inspired by Kanban boards, such as Trello and Asana (see the section above on the “Kanban Method for Project Management” and Kanban boards).
In production and logistics, it refers to software for managing electronic kanban, also known as “electronic kanban software” or “e-kanban software” (see the section “What is Electronic Kanban Software”).

KanbanBOX belongs to this second category: an electronic kanban software that enables optimal management of production, purchasing, material handling, and sales flows, both through standard kanban system features and additional functionalities such as:

Want to better understand how electronic kanban software works?

Download our Free Guide to Electronic Kanban on this page.

Meaning of the word kanban: when context changes everything

The term kanban can refer to different elements, ranging from a card with textual information or a barcode, to a container, from a project management method to a system for managing purchasing, production, material handling, and sales in an efficient, consumption-driven way.

Given the many interpretations and uses of the term kanban, to avoid misunderstandings it is recommended to specify the context using terms such as kanban card, kanban container, Kanban method, Kanban board, etc., rather than simply “kanban.”

To explore the topics covered in this article further, we recommend the following resources:

Discover KanbanBOX, the electronic kanban software

Are you interested in kanban to improve the management of materials, inventory, production, or purchasing?

Take it a step further: discover KanbanBOX electronic kanban, the digital evolution of kanban that provides greater visibility, more control, and increased responsiveness across the entire supply chain.