Direct answer. Kanban is a visual signaling system, historically a card or cardboard tag, that triggers the replenishment or production of a part only when it is actually consumed. It's the central tool of pull flow: nothing is produced or delivered until a kanban signal has explicitly requested it, unlike a push-flow logic based on forecasts.
From the Toyota tag to the project-management board
The word "kanban" literally means "tag" or "visual signboard" in Japanese. The system was formalized at Toyota in the 1950s: each bin or container of parts is paired with a kanban card that circulates between stations. When a station consumes a bin, it sends the corresponding card upstream, which automatically triggers the production or replenishment of a new bin, and nothing more. This mechanism prevents overproduction and keeps intermediate stock to the strict minimum.
In logistics and warehousing, the same principle shows up in restocking picking zones: a signal (a physical card, a scanned barcode, a low-level sensor) triggers a restock order only when the stock at the point of consumption drops below a defined threshold. The milk-run, a scheduled line-side supply route, often relies directly on kanban signals to determine what to load at each pass.
The term has also been borrowed outside its original industrial context to describe the "kanban board," a column-based board (to do / in progress / done) used in project management and software development, popularized by tools such as Trello. The principle stays the same: make the state of the work visible and limit work in progress to what the system can actually absorb.
FAQ
Is kanban only a logistics method?
Originally, yes: kanban was born in industrial production at Toyota to control parts flows. The term was later adopted in project management and software development in the form of a visual board (kanban board), reusing the same principle of pull flow and visibility over work in progress.
What is the difference between kanban and just-in-time?
Just-in-time is the overall goal, producing or delivering exactly at the right time, with no overstock or shortage. Kanban is the operational tool that achieves that goal: it's the concrete signal that triggers each replenishment at the precise moment it actually becomes necessary, station by station.
Related terms
Just-in-time · Lean · Push flow / pull flow · Milk-run · Scheduling · Slotting · Location addressing.
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