Project Brief

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Automated Kanban Signaling Project

Systemental designed an interactive, automated e-kanban signaling process for a large international Tier 1 manufacturer of clutch parts to replace a manual kanban material replenishment - shipping system. The client needed an interim solution to capture savings and verify the applicability of a costly ERP module planned for future purchase. The new ERP functionality was more than 2 years away and the local lead executive did not want to wait for the savings he knew was possible or to find out if his organization would have trouble adopting the expensive new tools.

Systemental was challenged to create an affordable solution that would mimic the planned ERP functionality. As stated above, the idea driving the project was to limit implementation / adoption risks associated with the planned ERP module, and to generate short-term cost savings with high ROI. Systemental handled the full scope of the project from design through implementation, documentation, training, and coaching, and verification of success. Manufacturing, shipping, and transportation were integrated by the new, complete, end-to-end, automated e-kanban signaling process for five plants in the U.S., Australia, and Mexico.

The Systemental developed e-kanban process and tools reduced excess inventory and improved manufacturing, warehousing and distribution, and production planning. Benefits include lower inventories, free storage space, lower costs for expediting, and better work schedules. Company saves $2 million annually.

Summary

Client	Tier-1 clutch manufacturing facility. Five plants located on two continents.
Problem	Manual kanban card system for tracking shipments was effective but cumbersome. Client company faced over $100,000 in risks due to uncertainty about Oracle’s suitability.
Solution	Systemental’s team designed an automated e-kanban system for end-to-end material replenishment and handled the full scope of the work. Project included planning, design, implementation, documentation, training, and coaching for five plants in three countries. Systemental partnered with company’s in-house team, including front-line employees, to test the design and Web-based e-kanban functions.
Results	Client savings over $2 million annually. Corporate managers voted Systemental’s electronic kanban system as a best practice at this Fortune 500 company. In two years, the project reduced excess inventory, freed up space, dramatically cut costs for expedited orders, and set up employee-directed scheduling. Major results: improved on-time delivery, quality, and productivity. All employees can access relevant information. Risks removed when Systemental proved the fit between an Oracle process and company capacity.
Contact	Toll free 866-434-2040