{"id":4438,"date":"2025-08-26T13:30:54","date_gmt":"2025-08-26T11:30:54","guid":{"rendered":"https:\/\/www.kanbanrocket.com\/?p=4438"},"modified":"2025-08-26T15:46:00","modified_gmt":"2025-08-26T13:46:00","slug":"how-to-size-kanban-system","status":"publish","type":"post","link":"https:\/\/www.kanbanrocket.com\/en\/how-to-size-kanban-system\/","title":{"rendered":"How to Size a Kanban System: a Practical Guide to Get It Right"},"content":{"rendered":"

When talking about Kanban<\/strong>, the focus is often on the visual or operational aspects<\/strong> of the system: cards, racks, signage.
\nBut what really determines the success of a Kanban system<\/strong> is something less visible, yet much more important: its sizing<\/strong>.<\/p>\n

An undersized Kanban<\/strong> leads to stockouts<\/strong>. An oversized Kanban<\/strong> ties up capital and wastes warehouse space. Both situations undermine the benefits.<\/p>\n

The key is to find the right balance<\/strong>, starting from a set of variables that must be carefully analyzed.<\/p>\n

    \n
  1. \n

    Understanding consumption: the first (and often underestimated) step<\/strong><\/h3>\n<\/li>\n<\/ol>\n

    Every Kanban system is designed to satisfy a demand<\/strong>.
    \nThe first question to ask is therefore: how much and how do we consume this material?<\/strong><\/p>\n

    Many companies start with rough estimates<\/strong>, such as the average consumption of the past months. But this simplification often leads to mistakes:<\/p>\n

      \n
    • The average consumption<\/strong> is simple to calculate, but it does not protect against small demand fluctuations.<\/li>\n
    • The maximum consumption<\/strong> guarantees safety, but results in an oversized and inefficient system<\/strong>.<\/li>\n
    • The most effective approach is to use statistical average consumption<\/strong>, which combines rigor and flexibility:\n
        \n
      • Calculate a moving average<\/strong> of consumption over a time window equal to the lead time, and then use the 95th percentile<\/strong> of the averages obtained as reference.<\/li>\n
      • This builds a system that accounts for peaks without exaggerating.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n

        This method provides a robust consumption value<\/strong>, not overly sensitive to daily variability but still able to react promptly to physiological demand fluctuations<\/strong>.<\/p>\n

          \n
        1. \n

          Lead time and safety lead time: the heart of the system<\/strong><\/h3>\n<\/li>\n<\/ol>\n

          Once consumption is defined, it is essential to know precisely the overall lead time<\/strong> \u2014 the time between consuming a container and its replenishment, considering all phases (e.g., order reception, production, shipment).<\/p>\n

          In Kanban sizing, depending on the situation, the correct lead time must be considered:<\/p>\n

            \n
          • Purchase lead time<\/strong>: time between request signal and delivery by the supplier.<\/li>\n
          • Production lead time<\/strong>: time needed to replenish the card through internal production.<\/li>\n
          • Transfer lead time<\/strong>: for internal transfers between warehouses.<\/li>\n
          • Sales lead time<\/strong>: time between request signal and customer delivery.<\/li>\n<\/ul>\n

            The Kanban system assumes these lead times are constant and reliable<\/strong>.
            \nIf a supplier or internal work center cannot maintain stable times, the pull logic<\/strong> loses effectiveness.<\/p>\n

            A good practice, for example, is to formalize agreements with suppliers through supply contracts<\/strong> in the case of purchase Kanban.<\/p>\n

            Since suppliers (internal or external) may face problems or unexpected consumption may occur, a Safety Lead Time (SLT)<\/strong> is introduced.
            \nIts purpose is to absorb possible delays or unforeseen peaks<\/strong>, improving the system\u2019s overall reliability.<\/p>\n

            The SLT is not a fixed value<\/strong>, but must be defined according to system characteristics:<\/p>\n

              \n
            • A very reliable supplier with steady demand \u2192 low SLT<\/strong>.<\/li>\n
            • An unreliable supplier with variable demand \u2192 high SLT<\/strong>, with deliberate oversizing for protection.<\/li>\n<\/ul>\n
                \n
              1. \n

                Containers: an often-overlooked but crucial variable<\/strong><\/h3>\n<\/li>\n<\/ol>\n

                The choice of container is not only a logistics issue<\/strong>: it has a direct impact<\/strong> on the sustainability of the Kanban system over time.<\/p>\n

                A key question to ask is: how many times per day can I afford to cycle a Kanban card on this item?<\/strong><\/p>\n

                  \n
                • If the container is too small<\/strong>, operators will be forced to handle frequent replenishments<\/strong>, impacting their operational activities.<\/li>\n
                • If the container is too large<\/strong>, the system becomes rigid<\/strong>, less flexible, and increases the risk of unused stock.<\/li>\n<\/ul>\n

                  A best practice is to carefully assess container size. If consumption frequency is too high, use a second-level container<\/strong>:<\/p>\n

                    \n
                  • Instead of attaching a card to every single box, it can be linked to the pallet<\/strong> containing those boxes.<\/li>\n
                  • This reduces rotation frequency while greatly simplifying management complexity, without losing pull logic.<\/li>\n<\/ul>\n

                    Ergonomics<\/strong> is another key factor:<\/p>\n

                      \n
                    • Heavy materials require containers compatible with forklifts.<\/li>\n
                    • Light materials can be managed manually.<\/li>\n
                    • Warehouse layout and movement frequency must also be carefully considered.<\/li>\n<\/ul>\n
                        \n
                      1. \n

                        Sizing formulas: everything changes depending on the type of Kanban<\/strong><\/h3>\n<\/li>\n<\/ol>\n

                        Depending on the type of Kanban<\/strong>, the logic for calculating the number of cards<\/strong> changes.<\/p>\n

                        Pure Kanban<\/strong><\/h3>\n

                        The most classic form<\/strong>. Each container has its own card.
                        \nThe number of cards is calculated as:<\/p>\n

                        \"\"<\/p>\n

                        A safety stock<\/strong> can then be added, expressed in days or as a percentage.<\/p>\n

                        Lot Kanban<\/strong><\/h3>\n

                        Used when suppliers or internal production work in lots much larger than actual consumption<\/strong>.
                        \nIn this case, the formulas differ from pure Kanban:<\/p>\n

                        \"\"<\/p>\n

                        The card circulates with each container, but the order is only released once a sufficient quantity<\/strong> is accumulated to generate the lot.<\/p>\n

                        This approach reduces inventory<\/strong>, as shown in the chart below:<\/p>\n

                        \"\"<\/p>\n

                        Signal Kanban<\/strong><\/h3>\n

                        Kanban cards are always two<\/strong>.
                        \nThere is only one case where a single card<\/strong> is used, placed at the Reorder Point (ROP)<\/strong>: this is the Signal Kanban<\/strong>.<\/p>\n

                        When stock drops below this threshold, a signal<\/strong> is triggered.
                        \nThe formula is:<\/p>\n

                        \"\"<\/p>\n

                        No number of cards is calculated here: the goal is to determine the point where the system must react<\/strong>.<\/p>\n

                        Important condition:<\/strong> all material must be stored in one single location<\/strong>.<\/p>\n

                        When sizing goes wrong<\/strong><\/h3>\n
                          \n
                        • Time is wasted<\/strong><\/li>\n
                        • Money is wasted<\/strong><\/li>\n
                        • Confidence in the method is lost<\/strong><\/li>\n<\/ul>\n

                          On the other hand, a properly designed system<\/strong> is robust, sustainable, and adaptable to change<\/strong>, provided it is correctly maintained<\/strong>.<\/p>\n

                          Tools like KanbanRocket<\/strong> allow companies to automate these analyses<\/strong> and keep parameters always up to date, even in complex contexts with seasonality or trends<\/strong>.<\/p>\n","protected":false},"excerpt":{"rendered":"

                          When talking about Kanban, the focus is often on the visual or operational aspects of the system: cards, racks, signage. But what really determines the success of a Kanban system is something less visible, yet much more important: its sizing. An undersized Kanban leads to stockouts. An oversized Kanban ties up capital and wastes warehouse […]<\/p>\n","protected":false},"author":5,"featured_media":3322,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[84],"tags":[],"yoast_head":"\nHow to Size a Kanban System: a Practical Guide to Get It Right - KanbanRocket<\/title>\n<meta name=\"description\" content=\"Learn how to size a Kanban system correctly. 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