We've talked about both Kanban and Electronic Kanban in previous posts here. Kanban is inclusive of Electronic Kanban and what we'll call Manual Kanban for purposes of comparison in this post. Manual Kanban, as you've probably guessed, is basically non-Electronic. Both include all the basic components of a Kanban system.
We're defining these terms because we want to address a commonly asked question we hear from prospective clients within the sales cycle? Should we implement a "manual" Kanban system before we implement Electronic Kanban.
The short answer is NO. A good Electronic Kanban system will not just support traditional Kanban activities, but ensures a few other activities are supported making it ultimately more efficient. With a good eKanban system, you can can still print out Kanban cards and reuse these cards over and over. Customers can also use a manual Heijunka board so that everyone can see the status of all material and production in conjunction with Electronic Kanban so there's no real difference there between the two systems.
But there are some significant advantages to eKanban as well. Quality software will let users calculate when cards should be added or deleted from the system and when a card is lost, missing, or where it was last seen, helping to keep a Kanban system on track. Good manufacturing software will also integrate with most ERP systems, allowing integration across the network. But the most significant advantage comes with the bar code scanning inherent in most Electronic Kanban implementations. With bar code scanning, you ensure a level of integration and accuracy of inventory that is hard to attain manually.
Furthermore, we've found there's no real advantage from learning Kanban manually before upgrading. As shop floors and companies in general become more integrated with electronic systems (and most have ERP implementations of one kind or another), one could argue it might be more difficult to integrate a "manual" Kanban system into your Lean production facility than an Electronic one.
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2 comments:
You can see a proprietary electronic Kanban system that is implemented for the packaging industry and has resulted in tremendous savings in materials, time and is very sustainable in practice here:
http://www.since1878.com/sustainable-packaging.php
The e-Kanban is not the be-all end-all. There are some problems:
1) If used internally between departments, the signal to replenish is sent after a certain number of parts are used. So, if the beginning stock is 100 and the order point is 50, after 50 parts are scanned, the order signal is sent. This requires your inventory control to be 100%. If not, the signal is not sent at the correct time, usually late.
2) Though you eliminate lost cards, the scanning must be accurate. If a part is scanned twice or not scanned at all, it's the same as losing a card.
3) Also, your BOMs must be 100% accurate. If not, components are not included in the scan and the signal is not sent.
The strength of a manual Kanban internally is that the operators have visibility and can see problems sooner. With the e-Kanban internally, the problem is not seen until much later.
I do believe that e-Kanbans can be very useful between a plant and it's suppliers, however.
TPS Practitioner
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