Manufacturing journalist Thomas R. Cutler profiled Digital Kanban in the summer issue of Software Magazine.
Kanban, in its most simplifying role, is a visual signal (or cue) that something needs to be replenished. More specifically, lean manufacturers today use digital kanban by Datacraft Solutions (www.datacraftsolutions.com) to drive a process to make, move, or buy the appropriate parts. Thus, digital kanban becomes one of the fundamental building blocks of a pull (or consumption based) replenishment system.

One supplier of replenishment-based supply-chain digital kanban stressed the importance of measuring ROI. Stephen Parker, CEO of Datacraft Solutions, makers of Signum, “The ROI is most often achieved within the first few days because of the unique approach to rapid integration to existing systems. Unlike major software installations that can take months or even years to achieve ROI, Signum can integrate in just days or weeks.”

Parker adds, “True replenishment-based supply chain is so much more than kanban functionality. ERP systems professing kanban features do not begin to capture the real-time benefits achieved with automatic flow-through supply chain.”

Some of those benefits include:

• Suppliers are no longer a part of the problem; instead, they become contributors to the solution. A centralized, interactive repository allows both ends of the chain to interact with (and ultimately improve) the parameters of replenishment.
• Performance is now measured bidirectionally, and the responsibility (and subsequent accountability) is distributed across the chain. Suppliers are no longer the only resource required to perform according to terms; the manufacturers’ compliance is visible now as well. Read the rest of this entry »

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