Kanban is more than just a tool for inventory management—it’s a complete system that drives efficiency, reduces stockouts, and improves production flow. Brian Meyers and his team at Fat American Manufacturing implemented over 1,000 Kanban cards in just four months. In this deep dive, we explore:
- How they transitioned from MRP to Kanban.
- The challenges they faced and the solutions they implemented.
- The long-term impact and future plans for Kanban at their facility.
“Kanban is really there to support your customer and is an actual competitive advantage.” – Tom Hughes
How Kanban cards manage inventory and production [00:14]
Kanban cards act as real-time signals for inventory movement. Each card holds all the critical details—part numbers, reorder points, and even QR codes linking to Standard Operating Procedures (SOPs).
- Tracks both internally manufactured and purchased inventory.
- Prevents stockouts by maintaining optimal inventory levels.
- Works alongside ERP systems to reduce overproduction.
Implementing a 2-bin system [01:04]
Fat American Manufacturing uses a two-bin system to ensure smooth inventory flow.
- Inventory is divided into front and back bins for a continuous supply.
- When the front bin empties, the Kanban card triggers replenishment.
- The system eliminates guesswork, ensuring stock is always available.
Kanban Card breakdown: What’s on it? [01:48]
Each Kanban card at Fat American Manufacturing contains:
- Part number and order quantity.
- QR codes linking to SOPs.
- Supplier details for externally purchased items.
This level of detail ensures that employees have all the information they need at a glance.
“A missing $7 flap disc can disrupt several thousand dollars worth of orders being processed today.” – Brian Meyers
How Kanban was rolled out [04:42]
Rolling out Kanban wasn’t an overnight process. The team started small and expanded strategically.
- The first implementation focused on the bolt pack area, where stockouts were common.
- From there, Kanban was introduced into repeat production processes.
- Eventually, it expanded across the entire manufacturing operation.
Managing the transition from ERP & MRP to Kanban [09:46]
Shifting from an MRP-driven system to Kanban required careful planning.
- MRP was disabled for parts managed by Kanban.
- ERP suggestions were adjusted to prevent over-ordering.
- The team ensured that inventory levels matched actual demand.
This transition reduced waste and improved production flexibility.
The future of Kanban at Fat American Manufacturing [14:01]
With Kanban fully integrated, the next step is expanding it to large-scale products with long lead times.
- The goal is to shorten lead times from weeks to just days.
- Improved stock availability will provide a competitive edge.
- Further automation and data integration will refine the system.
Fat American Manufacturing’s implementation of 1,000+ Kanban cards is a testament to the power of lean thinking. By strategically rolling out the system, refining their processes, and integrating it with existing tools, they have created a more efficient and responsive manufacturing environment.