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Definition: Kanban is a signaling system that has an important role in just-in-time production. It is the Japanese word for 'card' or signboard.
K messages are sent as a signal to the warehouse, requesting a standard quantity of parts, products or inventory when they are almost depleted (considering the time it takes to order and/or to manufacture them).
Because K aligns inventory levels with actual consumption, it reduces inventory levels, increases inventory turnover, enhances supplier/customer relationships and improves the accuracy of manufacturing schedules.
Nowadays, K signals are increasingly sent via electronic means (RFID).