Kanban System | Glossary

Definition:

The term  “Kanban” is a Japanese word which means “signal-card” in English and it invented by Industrial engineer “Taiichi Ohno” in order to improve efficiency at Toyota.

In manufacturing environment, this card signals upstream process to produce more.  The Kanban System used as a simple planning system, in which one can control and manage work and inventory at every stage of production optimally. Kanban is a concept identified with Lean and just-in-time (JIT), it is used in the planning which  clearly tells you

  • what to produce?
  • when to produce it?
  • how much to produce?

in a systematic way of approach, that will match inventory with demand and achieve higher levels of quality and throughput.

Application of this in knowledge work, especially in software engineering would enable a sustainable pace and find an approach to introduce changes with minimal resistance.  Kanban System helps to change the focus from a push to meet demand forecasts to a pull generated by actual demand.

Future Reading:

Book: “KANBAN A Successful Evolutionary Change for Your Technology Business” by David J Anderson

https://leankit.com/learn/kanban/what-is-kanban

http://www.everydaykanban.com/what-is-kanban

https://tallyfy.com/kanban-system

Management by Exception | Glossary

Definition:

Management by Exception (MBE) focuses on identifying and handling exceptional situations that needs management’s attention, typically human intervention. MBE concept was propounded by Frederick Winslow Taylor an American Mechanical Engineer and one of the first management consultant who sought to improve industrial efficiency.

MBE is a “policy by which management devotes time in investigating only those situations in which actual results differ significantly from planned results”.

It’s objective is to facilitate management’s focus on really important tactical and strategic decision making. Exceptional cases can be an opportunity which needs to be identified and tapped or a problem which needs to be solved in time with a strategy. This benefits organisation, with efficient utilization of management’s time for business to grow and improve it’s services rather than using valuable resources on routine tasks.

Further Reading:

https://en.wikipedia.org/wiki/Frederick_Winslow_Taylor

https://en.wikipedia.org/wiki/Management_by_exception#cite_note-CAMBRIDGE-1