What is Kanban?
Kanban is a Japanese method of managing inventory developed by Toyota in 1953. The system involves tickets that travel through a supply chain system. There are typically three bins, one for the warehouse that sends to customers, one in a control point and one at the supplier. As the bin at the warehouse gets low because the product has been sent to the customer, the ticket is sent back to the control point which ships more product the warehouse. As the bin at the control gets low, a ticket is sent to the supplier which ships more product to the control point. The point of Kanban is to keep inventory as low as possible so that there is no over- or under-production. Usually when a company implements Kanban, they see that they were producing much more than necessary and relieved bottlenecks.
The Problem with Kanban
Although Kanban presents some really great opportunities to relieve inventory stress and cut costs, there are some downsides to the program. Kanban is a lot easier to implement when you are a big company that has constant demand and products that won’t change. Since the bins are automatically refilled every time they run low, you are assuming that there is no slow season, no change in demand. There is no demand forecasts or projections built into the Kanban system.
How ERP Helps
Using Kanban and ERP together can eliminate the weak points of the Kanban system. ERP serves the supply chain best by forecasting and predicting demand based on historical and current data. If you’re a hats and mittens manufacturer, then ERP can predict what size of inventory you will need during the winter months. When you use ERP’s strong predictive analytics tools, you can use those forecasts to estimate and adjust your Kanban.
How YGL BeyondERP can help SMEs in manufacturing industry to adopt and implement Industry 4.0?
We Help Manage Industry 4.0 Implementation via ERP System
With YGL, you’ll be working with the most experienced professionals in the ERP industry. Whether you need short-term support or resources for a long term engagements, our ERP Consultants have the expertise to help you implement and integrate the ERP system requirement for Industry 4.0. With a core team of functional and technical ERP consultants that are both skilled and certified, we can quickly implement a robust ERP System to maximize the value of your investment.
YGL BeyondERP system applications allows you to enable a seamless workflow from your finance to warehouse and right down to your production efficiency by providing you the essential management dashboard which allows you to have a clear visibility.
As an industry leader in ERP system Implementation, we can be sure that each YGL consultants have the highest qualifications. We provide a wide range of ERP System Integrations with experience ranging from IOT(Internet of Things) right down to Data analytics on OEE (Overall Equipment Effectiveness), supporting all functional modules to complete project management for your project needs. All of our consultants are fully vetted for the project they’re submitted for, which means you’re only reviewing the most qualified consultants who do what you need done.
We Can Help to implement ERP System Integration under Industry 4.0
We look forward to hearing from you. Contact us today so that we can help you with our YGL BeyondERP which is strategy Industry 4.0 ready implementation needs heading towards Industry 4.0.
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