How Can the Kanban Methodology Improve Your Team?

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The Kanban project management approach is a visual system used to manage work and enhance workflows. Properly applying the Kanban method helps eliminate process bottlenecks and improve work efficiency, which is why many companies adopt it as a framework for implementing agile methodologies. In fact, the Kanban method was developed to improve automobile manufacturing processes. As early as the 1940s, Toyota aimed to enhance the efficiency of its production plants. They drew inspiration from supermarkets adopting the Just-In-Time (JIT) system. In a JIT system, companies produce products only as needed. This process worked well for supermarkets because they couldn’t afford to accumulate inventory. Instead, they adopted a conservative ordering approach to ensure replenished stock met demand without overordering and causing surpluses.

With this in mind, Toyota introduced a card-based system in its factories to reduce inventory. Instead of keeping most parts readily available, Toyota compressed the quantity of each part to a smaller, more limited amount. When more parts were needed, workers would use a Kanban card to indicate the need to replenish their limited supplies. In this way, Toyota implemented its own JIT system and created a streamlined, efficient process. More than half a century later, the software industry adapted Toyota’s Kanban cards to create a viable project management methodology. In 2010, David J. Anderson, founder of the Agile Project Leadership Network, published Kanban: Successful Evolutionary Change for Your Technology Business, the authoritative work on the Kanban method. One of the key reasons for its popularity is its simplicity.

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How Does the Kanban Method Work?

The Kanban method uses visualization of processes and work to identify and correct inefficiencies. In traditional setups, a board is a physical object (typically a whiteboard) that teams can easily view, but virtual Kanban boards are increasingly popular today.

1. Creating a Kanban Board

At its most basic, a Kanban board consists of clearly labeled columns representing work not started, work in progress, and completed work. Teams adjust the columns at the outset to better fit their workflow. For example, instead of a single "In Progress" column, they might use columns like "Design," "Development," and "Quality Check."

Regardless of the specific columns chosen, every "In Progress" column must have an explicit limit on the number of items it can contain at any given time. As projects move through the workflow, they are represented by Kanban cards that travel across the board’s columns.

2. Creating Kanban Cards

Kanban cards are typically sticky notes, index cards, or similarly sized pieces of paper representing a single task. They record relevant information such as deadlines, assigned team members, or the date the card moves on the board. Avoid overloading cards with details—the board and cards should primarily serve as a visual representation of work, not a repository for project specifics.

3. Using the Kanban Board

Cards start in the "To-Do" column, often called the backlog. When work begins on a task, the card moves to an"In Progress" column. Kanban operates on a "pull" system rather than a "push" system. ("Push" occurs when a delivery team finishes tasks without regard for the receiving team’s capacity, while "pull" relies entirely on the receiving team’s bandwidth.) This pulling is governed by each column’s Work-in-Progress (WIP) limit. For example, if a column has a WIP limit of two tasks, no new items can be added until fewer than two remain. If design finishes a task but development is at full capacity, the task stays in design, creating a bottleneck. When a developer completes a task and moves it to the next column, they can then pull a card from design.

When bottlenecks arise, the team collaborates to overcome them. Team members may need to step outside their usual roles—for instance, pitching in to complete quality checks. However, Kanban also focuses on long-term improvements. To use Kanban effectively, teams must consider how to adjust processes to prevent future bottlenecks. By visualizing the workflow, teams can make issues apparent. The team adjusts processes as needed, essentially refining the workflow through experimentation. This might involve tweaking column limits, reevaluating swim lanes, or making other modifications.

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The Fundamental Principles of Kanban

When implementing the processes outlined above, keep these principles in mind:

• Visualize the Workflow Keep the Kanban board highly visible and update it frequently. Accurate visibility into the process enables the team to identify and resolve issues promptly. Additionally, Kanban visualization helps teams improve communication.
• Limit Work-in-Progress (WIP) Set WIP limits for each column. These limits effectively prevent efficiency drops caused by multitasking or reordering. Determining the optimal limit may require trial and error, but a best practice is to start with a WIP limit of two.
• Pursue Continuous Improvement The Kanban method is dedicated to kaizen (Japanese for "continuous improvement"). Use the Kanban board to identify issues, implement changes, and solve problems. Some users argue that Kanban is more accurately a process refinement system than a project management system.

The Basic Practices of Kanban

If you decide to integrate the Kanban method into project management, follow these four steps to ensure the workflow enhances team efficiency:

• Define a Clear Process Strategy Kanban is effective only if everyone on the team understands how it functions. After defining WIP limits, map all processes onto the Kanban board. Ensure all team members understand how work flows through the board and establish expectations for resolving bottlenecks.
• Manage the Process Go beyond visualizing the workflow—actively manage it. Define key metrics, such as how long tasks take to move through the board, and use these metrics to refine processes. When an issue arises in a stage, take appropriate measures to prevent recurrences.
• Use Feedback Loops Regularly review data on the Kanban board. Conduct reviews at scheduled intervals (e.g., biweekly) and whenever obvious issues (like bottlenecks) occur. Regular feedback ensures continuous improvement.
• Collaborate on Improvements The Kanban method relies heavily on team collaboration. Therefore, working together to solve problems is critical. Issues that a product manager alone cannot identify or resolve can be addressed through team collaboration to keep the workflow on track.

The Advantages of the Kanban Method

• Simplicity The Kanban method requires minimal on boarding, simply a Kanban board and cards. Such low startup costs make implementing Kanban remarkably easy. Similarly, the system’s simplicity makes it more likely that team members will understand and use it properly.
• Adaptability Kanban works with diverse teams and processes. In fact, many teams use Kanban alongside other systems like Waterfall project management. The flexibility of columns allows Kanban to adapt to a team’s workflow without removing existing systems.
• Flexibility Kanban is effective for teams with unstable priorities. While Work-in-Progress (WIP) limits must remain fixed, backlog items in columns can be reorganized as needed without disrupting the workflow. Since new work always starts at the top of the column, teams can prioritize critical tasks there, ensuring the next item is addressed without affecting ongoing work.
• Efficiency Limiting WIP prevents teams from sacrificing efficiency for task quantity. Although some leaders worry that fewer tasks will be in progress at a given time, many teams find WIP limits help them deliver work faster.
• Effectiveness By focusing on workflow improvement, Kanban benefits teams in ways other project management systems cannot. It doesn’t just complete projects, it completes them better. As a result, teams continuously improve by streamlining processes, reducing waste, and accelerating delivery.
• Incremental Change Kanban encourages changes based on visualized data, eliminating the need for wholesale overhauls. Instead, the board can be adjusted incrementally as needed. This gradual approach not only reduces resistance from team members but also prevents changes that could severely hinder workflow.