How to implement a Kanban system
You know the pain of having shelves full of parts while still running out of the one item you need today. Kanban fixes that by giving you a simple, visual and repeatable way to control stock.
This guide shows you a nine-step approach, with real examples from Fat American Manufacturing. You’ll see how to create cards, place reorder points, set up a board, train your team and roll the system out across your facility.
Key takeaways:
- You can launch Kanban fast with simple tools.
- You cut stockouts without increasing inventory.
- You give your team a clear process that anyone can follow.
Step 1: Pick an example area
Start in a small, low-risk space so you can learn without disrupting production. Consumables work well because they move often and aren’t critical to your process. The transcript shows Brian Myers using storage for office supplies and cleaning items. It gave him a safe way to test the system and build confidence.
You’re looking for an area where mistakes don’t hurt and improvements show up fast.
Key takeaways:
- Choose a contained area like stationery, cleaning materials or break-room supplies.
- Make it your “sand pit” to experiment and learn.
- Keep the scope narrow so you can spot problems early.
Step 2: Identify stock items and locations
List the SKUs involved and mark where each item will live. Use the boxes items are delivered in or add bins if needed. If you plan to roll Kanban out further, start labeling locations such as A1, A2 and so on. It keeps the whole system organized from day one.
Getting locations right saves your team from hunting for items and guessing where cards belong.
Key takeaways:
- Document every SKU you want in the system.
- Assign a clear physical location for each item.
- Use simple location codes to keep things tidy.
Step 3: Create your Kanban cards
Tom explains the two GembaDocs card sizes and three card types: the Kanban card, the Kanban pull card and bin labels. Each card contains practical details like part number, supplier, delivery times and stock location.
You can add photos, barcodes and QR codes that link to item pages, order forms or even SOPs.
There’s also a bulk import option for teams dealing with large inventories.
Key takeaways:
- Use photos to avoid mix-ups on the shop floor.
- Include ordering info so anyone can reorder fast.
- Decide ordering quantities based on pack size, lead time and consequences of running out.
- Keep calculations simple at the start.
Step 4: Print and place your cards
Put the Kanban card and pull card at the physical reorder point. A two-bin system works well because it forces the person grabbing the last available stock to pull the card.
The examples in the transcript show bins with lids or divided boxes where you physically cannot access the backup stock without pulling the card. That simple friction keeps the system honest.
Key takeaways:
- Position cards so the user must pull them to reach backup stock.
- Use two-bin setups to keep the flow simple.
- Add clear labels to each stock location.
Step 5: Create your Kanban board
You need a place for cards to be turned in and tracked. Start with a simple box on a desk if you want. Over time, build a more visual board with slots for “to order,” “ordered,” and expected delivery dates.
Brian’s upgraded board let his team scan cards, place orders and track daily arrivals.
Key takeaways:
- Build a visible home for all cards.
- Separate “needs ordering” and “on order.”
- Add dates so everyone sees what’s coming in.
Step 6: Write clear SOPs for how the system works
Don’t rely on assumptions. Document how cards should be pulled, where they go, how often they’re collected and how they are matched back to incoming stock.
Tom shows examples made in GembaDocs that sit right on the Kanban rack. The instructions sit exactly where people need them.
Key takeaways:
- Explain how to pull, place and return cards.
- Keep SOPs where the work happens.
- Remove any room for interpretation.
Step 7: Train everyone who touches the system
Training drives consistency. Brian explains that most problems come from process issues, not people. When someone doesn’t follow the system, it’s almost always because they didn’t understand it or the setup wasn’t clear enough.
Show your team how Kanban protects them from running out of inventory, not just how to pull a card.
Key takeaways:
- Train every person who handles stock.
- Explain the purpose behind the system.
- Fix training gaps instead of blaming people.
Step 8: Treat mistakes as improvement opportunities
Tom explains that mistakes are part of any change. Look at mistakes as signals that something needs adjusting.
Ask simple questions:
- Was the SOP clear?
- Was the person trained well enough?
- Is there a weak point in the process?
Key takeaways:
- See errors as feedback, not failure.
- Improve the process instead of criticizing individuals.
- Strengthen the system after every problem.
Step 9: Roll the system out
Once the test area runs smoothly, expand the system to other parts of your facility. Focus on areas where stockouts cause delays or frustration.
Roll out gradually so each area gets the attention it needs.
Key takeaways:
- Grow one area at a time.
- Target high-impact departments.
- Keep refining the system as you scale.
Learn more
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