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suppliers on kanban.
“We decided to work in phases,
starting with certain product lines
and key suppliers. We were
fortunate in that our planners and
suppliers had experienced the
nightmares of a paper-intensive
environment, and were definitely
ready for a change! It helped that
our suppliers were familiar with
kanban.
“If your company is new to kanban,
make sure you work with your
suppliers so that they understand
key concepts such as
replenishment time—and
recognize that this is not just
another new system, it’s a
partnership.”
-- Cari Gintz, Pacific Scientific HTL
Purchasing Manager
PS/HTL’s Kanban Automation in Action
Based on lead times established when a PO is written, the system generates an expected date for
the supplier, so deliveries won’t come too early or too late.
The floor associate cell lead does all kanban scanning. Kanban signal status is color-coded and
certain. Yellow is healthy, telling the supplier to fill the order with the normal replenishment time.
Red means ship ASAP regardless of expected date, because parts are out of stock. Green indicates
no outstanding signals for the part.
When the supplier gets the emailed link triggered by the kanban scan, they can quickly scan for
yellow kanbans. For suppliers without Internet access, Signum can even send the traditional paper
fax electronically, recording when it was sent. And the system ensures that suppliers never get a
kanban signal on a closed PO.
Unexpected Dividends
The timely knowledge provided by the new system offers some dividends that would have been
impossible with even the best paper fax system.
All components are linked to cells, so the manager can quickly scan the Signum database to see
the health of every cell by how many bins are red or yellow. Gintz’s experienced eye has learned
to read the data for trends and even spot performance problems such as associates scanning 2 cards
on the same day.
When demand spikes, PS/HTL can put in a special “spike card” to the supplier, without disrupting
the normal flow of kanban parts. The system’s ability to handle such exceptions is a major
productivity enhancer, according to Gintz.
Because suppliers are more accountable and now have their own window into the system, they’ve
begun initiating improvements themselves. After a few weeks on the system, a dial and nameplate
supplier figured out that they could reduce their lead time from 20 to 7 days. The visual, open
system facilitates supplier communication that was impeded and even obliterated in the paper fax
world.
Gintz also cites Datacraft Solutions’ tech support as a huge bonus. “I’ve worked with numerous
database systems and have never experienced such a response from MIS people. They don’t just
say, ‘Fill in this vanilla form and make your processes fit’. They listen and really try to understand
and respond to our requests.”
3
Next Steps
In the next phase, PS/HTL plans to train their remaining suppliers and move to a totally fax-free
system. With Datacraft Solutions they are exploring streamlined supplier webcasts that would
simplify Gintz’s job and reduce supplier ramp-up time.
Additionally, PS/HTL is partnering with Datacraft on integration with Oracle for the receiving
module. And facilitated by their Datacraft system, PS/HTL anticipates that their work with
suppliers will yield even greater reductions in replenishment lead time.
Benefits from PS/HTL’s Datacraft
Adoption
􀂃 Drastically reduced parts shortages
􀂃 Shorter replenishment times
􀂃 Elimination of hard to read paper
fax release sheets
􀂃 Elimination of fax releases sent on
expired POs
􀂃 Elimination of duplicate fax sheets
􀂃 Electronic confirmation that the
supplier received a kanban—no
more guessing on whether the fax
went through
􀂃 Early electronic warning of demand
spikes requiring quantities over and
above current kanban levels.
􀂃 Handling more suppliers without a
corresponding increase in Buyers
or Planners
Setting the standard in Kanban Automation
Copyright 2004
About the Datacraft Solutions System
The Datacraft Solutions web-based kanban automation system that PS/HTL adopted consists of
two integrated components, Signum and Curator.
The Manufacturer’s Tool
Signum integrates inventory barcode scanners and kanban cards into a simple browser-accessible
interface where buyers/planners can plan and calculate their kanban requirements, automatically
　
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