Electronic Kanban vs. Kanban -- It's Evolution

Previously, we defined Kanban in a post on this blog. If you are a regular reader, you have no doubt also heard us frequently mention Electronic Kanban, as we are purveyors of Electronic Kanban software. So what exactly is Electronic Kanban (or eKanban)?

We defined Kanban as a signaling methodology that prompts the movement of materials within a production facility or company. Electronic Kanban users employ technology to replace non-electronic components like Kanban cards with electronic signaling or messaging.

While Electronic Kanban could utilize things like a stop signal and still techincally be "Electronic", we think of it as more of a manufacturing software driven system that encompasses barcode scanning to accurately measure parts inventory throughout the supply chain. The use of a part would be noted through barcode scanning and depletion could then electronically signal a need for replenishment across the production process.

In our Ultriva system, everyone from floor employees to managers accesses a single web portal to receive signals and alerts while their activities within the production process are automatically updated through barcode scans.

At its core, despite the fact that activities and signals are transmitted and received through a different format, the principles of Electronic Kanban and Kanban remain the same:

1) The signal, which drives activity or movement is still at the center of the system
2) The system becomes a demand-driven system with or without the deployment of technology
3) The signaling system remains highly visual and simple and is inclusive of all employees. As web usage has become mainstream, so has the ability for workers across a supply chain to utilize the web to manage a Kanban system

If both Kanban and Electronic Kanban inherently drive the same positive outcomes, what is the advantage of Electronic Kanban? Simply put, when inventory tracking and signaling happens automatically, it requires fewer humans to make it happen and it happens instantaneously, which translates to less waste and more speed and accuracy across the supply chain -- exactly what you want to see in a Lean production system. While the deployment of a Kanban system will drive lower inventory, lower costs, and faster turnarounds than a supply chain without, an eKanban system will drive even greater benefits.