Kanban vs. eKanban: Automation Makes the Difference
In Lean Manufacturing environments and Demand-Driven Supply Chains, Kanban systems have proven useful for scheduling material and supplies deliveries on a Just-in-Time basis to replenish inventories required to feed shop floor production lines. Kanban was originally developed by Toyota in the 1950s as a way to manage material flow on high-volume assembly lines. Over the past three decades, the Kanban process and its Just-in-Time inventory management strategy have been widely adopted by the global automotive industry and other manufacturing sectors.
In a traditional manual Kanban system, Kanban cards are deployed to track the path of materials and parts as they move from place to place through the production process. When materials have been consumed the empty contained is sent back to the point of replenishment. Today's Kanban systems often deploy bar coded cards or labels which can be tracked electronically using bar code scanners.
Kanban is a chain process in which orders flow from one process to another, with production and Just-in-Time delivery of material components being "pulled" through the production line and controlled by workers on that line - in contrast to traditional methods where components are "pushed" through based on previous demand forecasts. At the factory level, Lean Manufacturing is essentially the successful execution of these pull and demand-driven methodologies. By controlling the flow of materials and parts on a pull or JIT basis, Kanban systems can help manufacturers in a steady demand environment to more realistically satisfy that demand and help to reduce inventory levels, so reducing stock-outs and delayed deliveries.
What then is the advantage of an eKanban system over a traditional Kanban approach? The answer is: Technology-based Automation.
eKanban: Go Lean with "Instant MRP"
Thanks to advanced computer technology, Kanban processes can now be automated even further via Electronic Kanban, a fully automated, interactive software solution. eKanban provides wider and deeper functionality, with sophisticated processes that can be readily integrated with other business process systems - from spreadsheets to enterprise applications, such as ERP and CRM. Progressive manufacturers striving to implement Lean Manufacturing principles are finding that eKanban provides a solid foundation to:
- Achieve lean inventory management and control
- Reduce time and costs associated with material flows
- Avoid the cost and risk of stock-outs and overproduction
- Respond with speed and agility to changes in demand
- Gain tighter shop floor control
Advanced automation enables eKanban to elevate Kanban's simple "alert" capabilities to previously unattainable heights. It provides the ability to not only monitor inventory levels, but to trigger automatic replenishment when a predefined minimum for each item is reached, and to analyze and report on these material flows in real-time.
This allows eKanban to react to variable demand pulls rather than fixed container quantities.
That's why Glovia Services sometimes calls its eKanban Solution "Instant MRP."
Imagine what would happen if a company such as yours could implement a fully automated eKanban solution. A flexible solution that plugs seamlessly into your spreadsheet, financial, ERP and CRM systems. An "Instant MRP" toolset that can improve your business processes - from inventory, through production, engineering, shipping and receiving. An analytical solution that provides comprehensive reporting capabilities, allowing you to continually measure and evaluate the progress of your Lean Manufacturing initiative and discover its real-time business value. What a difference that could make!
GSInnovate eKanban Edition from Glovia Services allows you to transform your MRP and production strategies right from your desktop. Flexible, affordable and delivered conveniently over the Web, GSInnovate eKanban Edition requires no additional software, hardware or IT staff and can be implemented quickly and easily, without disrupting your business. To learn more, request a Web demo for a closer view. Or call 1-877-474-8896 to speak with one of our experts.
