Known as an Electronic Kanban, or E-Kanban, this signaling system is very important in a production facility. In a mix of technology that prompts materials to move around, it replaces kanban cards with electronic messages and barcodes. This makes it a “lean-and-just in time production” to ensure that the goods run on schedule. This means: do we need to manufacture more parts? When do we have to produce more? How much?
E-Kanbanis the epitome of today’s modern manufacturing. This system gives speed, accuracy, and agility to a very competitive industry. A typical E-Kanban scans barcodes during the different stages of production, like a communication network for the machines, factories, and storage facilities. For instance, if a storage (whether internal or external) runs low on supply, then it will send a signal for restocking. It usually uses the Internet to route these messages, making possible a real time inventory of the supply chain.
In a lean manufacturing setting, pull systems area critical and integral component. With the Kanban system as its visual aid, pull systems are processes dictated by customer demand. This means that one section is in sync with all the other departments, so they can deliver the exact product to their client. And another consideration is to minimize waste, so every production line must use every material at their disposal in the final commodity.
For those who want to take advantage of this technology, pull systems come in three basic types: the replenishment pull, the sequential pull, and the mixed pull that combines the elements of the other two kinds. And every pull system must have these technical elements down pat: a. let products flow in small batches, which means that it could approach one piece flow; b. pacing the processes, so as not to overproduce; c. signal replenishments using E-Kanban; and d. level the quantity and product mix.
After discussing the relevance of E-Kanban and pull systems, we now come at the heart of the supply chain. As factories develop from human-powered to being dictated by technology, to inventory optimization means taking on the right amount, in the right venues, so you can meet revenue goals and customer demands. But there should be no more than that.
So when one talks about inventory optimization, it may be seen as a strategy, perhaps a goal, and even a sort of technology that propels modern production lines. Treat is as a journey, rather than a final destination. It will keep on improving, building on the present technology and practices.
Inventory optimization is an enterprise decision to reduce costs, avoid future increases in price, and take a better account of demands and supplies.
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E-Kanban uses pull systems to improve inventory optimization