The Kanban method for controlling production and material flow is based on the actual stock quantity in production. With Kanban, instead of being pushed through production by higher-level planning, materials are called from the supply source by production at the manufacturing level where they’re needed (pull principle). Replenishment or production of a material is only triggered when a higher production level requires the material. This replenishment is triggered directly in production using previously maintained master data.
Kanban replenishment is commonly used in - but not restricted to - repetitive manufacturing environments, when a production process requires that the same or similar products are produced over a certain period at a certain rate per period. The products produced always follow the same sequence through the machines and work centers in production. Routings tend to be simple and don’t vary much.