How to optimize project management with the Kanban methodology

In a company, the typical production process consists of a flow of activities that goes from receiving an order to delivering the final product. At any point along this journey, delays or even blockages may arise due to so-called ‘bottlenecks’ or other sources of inefficiency. The consequences are easy to predict. The Kanban methodology, which in Japanese means ‘visual card’, is inserted into this context, allowing all inefficiencies to be eliminated, thus optimizing time and costs related to business activities.

What is the Kanban methodology?

The Kanban methodology originated in Toyota’s production plants as a planning system for more agile production. In the 1950s, the Japanese company introduced the Just-in-time (JIT) manufacturing method, which uses a production system based on customer demand (pull) instead of the practice of producing goods and then pushing them into the market (push). In this way, a production system perfectly calibrated to demand and required volumes is achieved.

The Kanban methodology ensures that information flows at the pace of processes, determined by real needs that guide production. In this sense, we can say that Kanban is the right hand of Just-in-Time: a visual signal (visual card) used to plan and authorize the stages of production processes.

The goal of the Kanban methodology is to minimize production times and quantities produced, focusing only on what adds value to the customer. To achieve this, years of testing, field experience, and joint efforts from key figures in the Lean and Agile communities are required—working methodologies that every professional should know and that are therefore studied in programs such as a Master in Project Management.

How does the Kanban methodology work?

The simplest way to understand the Kanban methodology is to adopt its philosophy and apply it to daily work. However, there are six practices that allow successful implementation of Kanban.

1. Visualize the workflow: In its simplest form, a Kanban board consists of three columns, each containing notes that show tasks that have been requested, are in progress, or have been completed. Each item moves through the flow from start to finish. By observing this process, projects can be easily tracked and bottlenecks identified in real time, promoting continuous improvement.

2. Limit Work in Progress (WIP): One of Kanban’s main functions is to eliminate interruptions by setting a limit on the number of items classified as Work in Progress. In this way, no new item enters this state until one of the pending items has been completed, allowing focus on finishing work without generating waste and inefficiencies.

3. Manage flow: Flow is the movement of work items through the production process at a predictable and sustainable pace. One of the main goals of implementing Kanban is to create a smooth and consistent workflow to improve delivery times and avoid delays.

4. Make process policies explicit: A clearly defined process discussed with all team members increases self-organization. When team members understand the common goal, it becomes easier to work and make decisions that generate positive impact and performance improvements.

5. Use feedback loops: For positive change to occur, regular meetings are necessary to ensure organizations respond appropriately to potential changes and allow knowledge transfer between all stakeholders. Kanban recommends feedback loops at both team and service levels.

6. Improve collaboratively: When the team has a shared understanding of the process, the likelihood of reaching consensus in case of problems increases. Kanban suggests using scientific approaches to implement continuous improvements based on method, feedback, and scientifically validated metrics.

What is the Kanban methodology for?

The Kanban methodology provides an immediate and general overview of work, allowing timely interventions when needed. The five main benefits of Kanban are:

• Greater workflow visibility: The basic idea of Kanban is to visualize every stage of the workflow. In this way, the Kanban board becomes a central information hub that organizes all elements in one place. All team members can, at any time, get an update on the overall status of each project or task.
• Increased delivery rates: Kanban provides many ways to closely analyze work distribution. With a clear view of where tasks take longer, delays are easy to identify. As a result, the team can improve workflow and significantly increase delivery rates.
• Constant alignment between business goals and the team: By promoting transparency, feedback, and regular review meetings, Kanban practices help clarify strategic company goals and align them with daily team work. This alignment increases organizational agility.
• Greater predictability: As work items accumulate on the Kanban board, processes can be deeply understood using appropriate flow metrics. Analyzing workflow time enables more accurate predictions of deliverable work and data-driven decisions.
• Higher customer satisfaction: Kanban reduces wasted time by focusing only on necessary tasks. By applying WIP limits, the final output is optimized according to customer expectations.

Principles of the Kanban methodology

Before applying Kanban at a business level, it is important to understand its fundamental principles:

• Start with what you are doing now: Kanban offers the flexibility to be applied directly to existing workflows, systems, and processes without interrupting ongoing work. Its benefits are gradual, and improvements are adopted over time.
• Embrace incremental and evolutionary change: Kanban is designed to minimize resistance by encouraging continuous, incremental, and evolutionary changes. Radical changes that could disrupt teams or performance are avoided.
• Encourage leadership acts: Kanban promotes leadership and decision-making among all team members. Insights from daily observations contribute to continuous improvement, leading to optimal performance at team, department, and company level.