What is Kanban and How Can it Help Small Business?

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Small business owners in today’s world can take advantage of centuries’ worth of knowledge and methodology to more efficiently and effectively run their organisations. Tools and systems devised by communities have been honed by business leaders as they have been passed down generation to generation. These have morphed into modern technological methods that are surprisingly easy to use. One of those methods is Kanban. What Kanban is today is very different to what it was originally but some of the same principles such as transparency and clarity still apply.

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What is Kanban?

Kanban is a workflow management method that visualises the tasks that need to be undertaken for a project to be completed.

It has been successfully used in project management since the 1940s, although the name originated about 400 years ago.

Kanban is the Japanese word for signboard. In the 1600s, Japanese shop owners made creative signs on cards and hung them outside their shops to attract customers. Kanban then became a common way for them to advertise their shops.

Then in the 1940s, a businessman working at car manufacturing company Toyota implemented a work organisation system to make operations more efficient and effective, using cards similar in style to the Kanban boards that shop owners had used for centuries.

In today’s workplaces, the Kanban system can be used to conduct any kind of project management.

The method’s benefits include enabling flexible planning options, transparency, clear communication and faster output.

What is a Kanban board?

A Kanban board is how the system is visualised.

Historically, it has been a physical board but in today’s workplace, it is more commonly a virtual system that can be accessed through the use of share files, software tools or other cloud computing methods.

A Kanban board needs to be accessible to all parties – whether they be managers, workers or cross-functional teams – to be able to clearly show the progress of a project and each task.

How Kanban works

At its simplest level, Kanban methodology involves three columns: Requested, In Progress and Completed. Tasks are listed and divided into columns, then are moved into the next column as the task progresses.

For example, all the tasks that need to be completed to achieve a project are listed in the column on the left. Each task is written on to its own card and placed in the first column. These are the Requested tasks. As the task is assigned or picked up by a team or worker to start on, the card is moved into the middle column. These are where the In Progress tasks are listed.

As the tasks are completed, the card is moved to the Completed column to communicate to all involved that the task has been finished. At more complicated levels, Kanban can work with many more than three columns and the system may change. For example, a column may be inserted for work that is on hold. Or, cards may move backwards at certain points if tasks need to be tweaked or repeated.

As another example, the first column may not list tasks that are required to be assigned but are instead ideas or suggestions for possible projects. The second column may be the column actively worked on, or list the tasks that have been committed to, and tasks are only moved from the first to the second column when the second column is empty.

Meanwhile, the tasks in the first column do not have to be tackled in order from top to bottom. For example, the task listed on the fourth card from the top of the column can be moved into the second column, whenever that task is assigned. This can provide flexibility and help tasks to be prioritised in real time.

The visual nature and the principles of Kanban remain the same, however organisations are able to tailor the system to however it best meets their needs.

The benefits of Kanban

By outlining the tasks in a visual way, it clearly communicates to all parties the progress of tasks and the project. It can also improve transparency and clarity by showing which stage each task is at and who may be responsible for it.

A particular benefit is that the system can clearly show bottlenecks to the workflow and where extra resources may need to be diverted. For example, each column may represent a team and each card may be assigned to one worker. If there are three people in each team, but more than three cards are positioned in the column, it can indicate that the team needs to be allocated more team members or that the tasks are taking longer than expected. Leaders can clearly see they need to take immediate action to address the problem.

The benefit of digital boards is that more details can be included on each card than is possible on physical boards. For example, a physical card may only detail the name of the task and the assignee, whereas a digital card can be set up so that when it is clicked on, a detailed description of the job or instructions are listed to help the employee, which can help them to get started on the task more quickly.

How to implement a Kanban board

Many organisations may already use an online project management tool that is based on Kanban without realising it.

Trello, Asana and ClickUp are some of the more well-known software providers that offer Kanban-based tools but there are many alternatives available. Most offer free trials to test their system, then charge for use or to access more advanced features.

Businesses may want to build their own Kanban board using a spreadsheet. A whiteboard or even an office wall can be used as a physical board, if desired, using sticky notes as the cards.

Business owners or team leaders may be able to fill out the board with all the required information themselves, however consider bringing employees into the initial process or to provide feedback. Workers may be able to identify gaps or suggest additions that can help ensure all required tasks are listed.

Examples of Kanban in action

Any industry can use Kanban methodology, but there are some in which it is more commonly used.

Retail

Retail was the industry which inspired the Japanese businessman to formulate the Kanban system almost 100 years ago.

He saw that supermarkets were using a similar system. To minimise the amount of excess stock held in the store room at any one time, it would order more when the shelf stock decreased to a certain level. This also kept customers happy as there was always stock on hand.

Retailers today can use the same system within their online inventory management tools to flag when stocks are low and more needs to be ordered.

IT

The Kanban method is popular in the software development industry, particularly during strategic development and the initial stages of the planning process.

The method helps to identify tasks that will need to be completed at some point but do not need to be urgently addressed. It also ensures tasks are finished before new ones are started.

The method can also enable developers to make initial software releases available to users while they continue to work on minor improvements.

Construction

Many builders may instinctively be using Kanban methodology when constructing residential or commercial buildings by organising certain tradesmen to be rostered to work on site when others have completed the work.

An example of this is that the task of carpenters building the house frame needs to be completed before the task of installing the roof is initiated by the roofers.

However, there may be many tradesmen who may be able to work concurrently, if one prioritises part of their responsibilities before others. For example, a plumber can install outdoor taps before indoor taps, enabling a landscaper to come on site to do their work while the plumber finishes their jobs inside.

A Kanban board can help facilitate the organisation of these tasks for the builder and ensure that tasks have been completed before tradespeople arrive on-site to do their assigned jobs.

Once a Kanban board is in place, it will not take long for business owners to see the benefits in efficiency and effectiveness – and these are all possible thanks to those Japanese store owners, who decided to be creative when making their wares stand out.

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Indeed’s Employer Resource Library helps businesses grow and manage their workforce. With over 15,000 articles in 6 languages, we offer tactical advice, how-tos and best practices to help businesses hire and retain great employees.