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Dynamic Kanban

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DK

Definition

The viewboard management method is adjusted to the dynamic changes in demand.

In detail

Dynamic Kanban (DK) is a pull-based material management method where the core is that kanban quantities and parameters (such as capacity, trigger points) are not fixed but dynamically adjusted based on actual demand fluctuations. It addresses the problem of traditional fixed kanban causing excess inventory or material shortages under unstable demand, making production and material flow more aligned with actual needs. Compared to static kanban, dynamic kanban emphasizes responsiveness and flexibility, typically used in conjunction with Production-Sales-Inventory (PSI) and Heijunka (leveling) to form a closed loop. Its outputs are dynamically adjusted kanban parameters and a controlled material replenishment plan.

Example in practice

A factory's product demand fluctuated seasonally, and fixed kanban led to stockouts in peak season and inventory buildup in off-season. After introducing dynamic kanban, kanban quantities were updated monthly based on the PSI plan. When demand exceeded preset thresholds, a controlled expansion was triggered, increasing kanban signals. Daily management monitored execution, ultimately achieving inventory levels synchronized with demand, reducing stockouts and buildup, and improving material flow efficiency.