Kanban is a Japanese term that translates to "billboard" or "signboard". It is a visual system for managing work as it moves through a process. Kanban visualizes both the process (the workflow) and the actual work passing through that process. The goal of Kanban is to identify potential bottlenecks in your process and fix them so work can flow through it cost-effectively at an optimal speed or throughput.
Originally developed in the late 1940s by Toyota to improve manufacturing efficiency, Kanban has since been applied to a wide variety of industries including software development, IT operations, business processes, and more. It is a key tool in the arsenal of any product manager or operations manager looking to improve efficiency and effectiveness.
Principle 1: Visualize Work
The first principle of Kanban is to visualize the work. By creating a visual model of your work and workflow, you can observe the flow of work moving through the Kanban system. Making the work visible—along with blockers, bottlenecks, and queues—exposes inefficiencies and problems in the workflow so that the team can address them.
Visualizing work in progress helps teams to understand the state of every piece of work at any point in time. This visibility allows teams to understand whether they have capacity to bring in more work or whether they are overburdened. It also helps to identify any bottlenecks or slowdowns in the process.
How to Visualize Work
Work visualization in Kanban is typically done using a Kanban board. A Kanban board is a tool that helps visualize the workflow and the work passing through that workflow. The board is divided into columns, each representing a stage in the workflow. Cards, representing work items, move from left to right across the board as they progress through the workflow.
The simplest form of a Kanban board has three columns: To Do, In Progress, and Done. However, Kanban boards can be customized to fit any workflow by adding or removing columns as necessary. For example, a software development team might have columns for Backlog, Ready for Development, Development, Testing, and Deployed.
Benefits of Visualizing Work
Visualizing work allows teams to see the status of all tasks at a glance. This transparency helps teams identify bottlenecks, manage work in progress, and make informed decisions about what to work on next. It also promotes accountability, as everyone can see who is responsible for what work.
Furthermore, visualizing work can lead to improved communication and collaboration. By making the workflow and work items visible, teams can have more meaningful and productive discussions about their work. They can also more easily identify and resolve issues, leading to improved efficiency and productivity.
Principle 2: Limit Work in Progress
The second principle of Kanban is to limit work in progress (WIP). By limiting the amount of work that is in progress at any one time, you can reduce the time it takes an item to travel through the Kanban system. You can also avoid problems caused by task switching and reduce the need to constantly reprioritize items.
Limiting WIP is crucial in Kanban systems because it helps to balance the flow-based approach with the team’s capacity. It prevents team members from overcommitting and helps to identify bottlenecks in the process.
How to Limit Work in Progress
Work in progress limits are typically implemented using a pull system. In a pull system, team members pull new work from the backlog when they have capacity, rather than having work pushed onto them based on the product manager’s priorities. This ensures that team members are only working on a few items at a time, which helps to keep focus and reduce waste.
WIP limits can be set for each stage of the workflow or for the entire system. They can be adjusted as necessary based on team capacity and workflow efficiency. It’s important to remember that the goal is not to keep every team member busy at all times, but to ensure that work flows through the system smoothly and efficiently.
Benefits of Limiting Work in Progress
Limiting work in progress has several benefits. First, it helps to reduce multitasking, which can lead to inefficiencies and mistakes. By focusing on a limited number of tasks, team members can produce higher quality work and complete tasks more quickly.
Second, limiting work in progress helps to expose bottlenecks in the workflow. If work is piling up in one stage of the workflow, it’s a sign that that stage is a bottleneck. This visibility allows the team to address the bottleneck and improve the flow of work.
Principle 3: Manage Flow
The third principle of Kanban is to manage flow. Flow refers to the movement of work items through the Kanban system. Managing flow is about managing work in a way that it moves through the system as fast as possible, while ensuring that the quality of work is high.
Managing flow effectively requires continuous monitoring and adjusting of the system. It involves observing the system, identifying issues and inefficiencies, and making adjustments to improve flow.
How to Manage Flow
Managing flow in a Kanban system involves several practices. One key practice is to monitor key metrics such as lead time (the time it takes a work item to move through the system) and throughput (the number of work items processed in a given time period). These metrics provide insights into the efficiency of the workflow and can help identify areas for improvement.
Another key practice is to use policies to guide the handling of work items. Policies can include definitions of when a work item is considered done, how work items should be prioritized, and how work should be distributed among team members. Clear policies help to ensure that work flows through the system in a consistent and predictable manner.
Benefits of Managing Flow
Managing flow effectively can lead to several benefits. First, it can help to reduce lead times, as work items spend less time waiting in queues. This can lead to faster delivery of value to customers, which can improve customer satisfaction and competitiveness.
Second, managing flow can lead to more predictable delivery. By monitoring flow and making adjustments to improve it, teams can achieve a more steady and predictable flow of work. This predictability can help with planning and can lead to more reliable delivery.
Principle 4: Make Process Policies Explicit
The fourth principle of Kanban is to make process policies explicit. This means that the rules and guidelines that govern how work is done in the Kanban system should be clearly defined and made visible to all team members.
Explicit process policies help to ensure that everyone understands how work should be done, which can lead to more consistent and efficient workflow. They also provide a basis for improvement, as they make it clear what is expected and what can be changed.
How to Make Process Policies Explicit
Process policies can be made explicit in several ways. One common practice is to document the policies and make them easily accessible to all team members. This can be done through a shared document, a wiki, or even on the Kanban board itself.
Another practice is to use visual indicators on the Kanban board to represent policies. For example, a policy about how to handle blocked work items might be represented by a red card or a special symbol. This visual representation helps to ensure that the policy is consistently applied.
Benefits of Making Process Policies Explicit
Making process policies explicit has several benefits. First, it helps to ensure that everyone is on the same page about how work should be done. This can lead to more consistent workflow and can reduce misunderstandings and conflicts.
Second, explicit process policies provide a basis for improvement. By making the policies visible and understandable, they can be scrutinized and improved. This can lead to continuous improvement of the workflow, which is a key goal of Kanban.
Principle 5: Implement Feedback Loops
The fifth principle of Kanban is to implement feedback loops. Feedback loops are mechanisms that provide information about the state of the system and allow for adjustments to be made. They are crucial for continuous improvement, as they provide the information needed to identify issues and make improvements.
Feedback loops can take many forms, including meetings, metrics, and visual indicators on the Kanban board. The key is to ensure that feedback is timely, relevant, and actionable.
How to Implement Feedback Loops
Feedback loops in a Kanban system can be implemented in several ways. One common practice is to hold regular meetings to review the state of the system and discuss improvements. These meetings can be daily stand-ups, weekly reviews, or monthly retrospectives, depending on the needs of the team.
Another practice is to use metrics to provide feedback about the system. Metrics such as lead time, throughput, and work in progress can provide valuable insights into the efficiency and effectiveness of the workflow. These metrics should be reviewed regularly and used to guide improvements.
Benefits of Implementing Feedback Loops
Implementing feedback loops has several benefits. First, they provide the information needed to identify issues and make improvements. This can lead to continuous improvement of the workflow, which is a key goal of Kanban.
Second, feedback loops promote a culture of learning and improvement. By regularly reviewing and discussing the state of the system, team members can learn from each other and from their experiences. This can lead to a more effective and efficient workflow, and a more engaged and motivated team.
Principle 6: Improve Collaboratively, Evolve Experimentally
The sixth principle of Kanban is to improve collaboratively and evolve experimentally. This means that improvements should be made as a team, with everyone contributing their ideas and insights. It also means that changes should be made incrementally and experimentally, with the understanding that not all changes will lead to improvements.
Collaborative improvement and experimental evolution are crucial for continuous improvement, as they allow for a wide range of ideas and approaches to be tried and tested. They also promote a culture of learning and improvement, as team members learn from each other and from their experiences.
How to Improve Collaboratively and Evolve Experimentally
Improving collaboratively involves engaging all team members in the improvement process. This can be done through regular meetings, brainstorming sessions, and other collaborative activities. The key is to create a safe and open environment where everyone feels comfortable sharing their ideas and insights.
Evolutionary change involves making small, incremental changes and evaluating their impact. This can be done through experiments, where a change is implemented on a small scale and its effects are observed. If the change leads to improvement, it can be implemented on a larger scale. If not, it can be discarded or modified.
Benefits of Improving Collaboratively and Evolving Experimentally
Improving collaboratively and evolving experimentally have several benefits. First, they allow for a wide range of ideas and approaches to be tried and tested. This can lead to more effective and innovative improvements.
Second, they promote a culture of learning and improvement. By engaging all team members in the improvement process and experimenting with changes, teams can learn from each other and from their experiences. This can lead to a more effective and efficient workflow, and a more engaged and motivated team.
Conclusion
Kanban is a powerful tool for managing work and improving efficiency and effectiveness. Its principles of visualizing work, limiting work in progress, managing flow, making process policies explicit, implementing feedback loops, and improving collaboratively and evolving experimentally provide a framework for continuous improvement and effective workflow management.
By understanding and applying these principles, product managers and operations managers can create a more effective and efficient workflow, deliver value to customers more quickly, and create a more engaged and motivated team. Whether you're new to Kanban or an experienced practitioner, these principles can guide you in your journey to continuous improvement and operational excellence.