Delivery

Improving Delivery Performance - with Kanban

Providing quality and exceptional service is expected in this market-driven business world. To provide ‘On Time Delivery’ is not a supplementary advantage, but an essential necessity to stay competitive and meet customer demands. Delivery is a critical KPI within the EMSQDP framework (operational management system), representing Environment, Morale, Safety, Quality, Delivery, Performance. With Kanban, a tool to optimize efficiency and delivery, the complex demands of On Time Delivery can be reached.

Within the realm of supply chain, Delivery is the process of a product being transported from the manufacturer or warehouse to the customer or buyer as promised. A delivery process must be structured to avoid any delayed shipments. This includes communication between warehouses in order to obtain all needed raw materials in time, assembling and packaging products, transportation methods for smooth shipment, and backup products in emergencies to be able to fulfill all deliveries on time regardless of emergency situations.

A well-known Delivery system that benefits the delivery process would be Kanban: “A lean manufacturing technique that aims to eliminate raw material wastage by supplying only what is needed when it is required”, said Alex Zhezherau, Product Director for Wrike Inc. This provides a quicker and more efficient process in regard to both external and internal Kanban.

“ …Kanban system guarantees same day internal deliveries for all products included in the stock profile. This is possible because preferred suppliers carry the stock levels for each marketplace product based on future site demands. The amount of inventory is determined by the number and capacity of bins in the system plus a quantity needed to respond to possible changes in the number of bins”, published in the scholarly article known as Kanban in Construction. This prevents excess inventory by limiting the levels of raw materials to what is needed, nothing is based on projecting sales. By using a materials pull system, Kanban creates a smoother flow which prevents bottlenecks and other problems that may disrupt or slow down the delivery process.

Kanban was a system created due to necessity, Toyota needed a way to compete in the highly competitive global market with a tighter budget. That is where Taiichi Ohno, an engineer for Toyota and creator of the Toyota Production System, was able to create a visual-based signal scheduling method that shows raw materials consumed, raw materials replenished, as needed in a pull systems production process. It was his way of elevating procedures discovered by the Americans, in particular Henry Ford's early production techniques. Some of the new techniques implemented were pull-based scheduling, which is a method that works on demand, reducing waste and improving efficiency. Continuous improvement was also implemented, also known as Kaizen, as described by the Lean Project Management Foundation, “Continuous small improvements initiated by employees. All employees should continually seek ways to improve their individual performance and should team up with others to improve team performance. Kaizen encourages employees to take ownership for their work and improves their motivation”. This improves the company's speed and efficiency in regards to labor and delivery, building a better workforce that constantly strives for optimization.

The perceived complexity of Kanban deters many from attempts to implement it, with a plentiful amount finding it too overwhelming for the team to use. A team must have structure, discipline and willingness to accept these new techniques for Kanban to succeed. In order to begin implementing Kanban, communication is vital, welcoming leadership of all levels and collaborating in order to better understand the process. “Without proper maintenance, your kanban board might become too complex and prove counterproductive for your team's efficiency”, published in 2024 by Workmajig. Kanban is a system best implemented when it is understood and accepted by the whole team.

Overall, Kanban has many benefits to achieving on-time Delivery, regardless of the industry Kanban can advance not only a materials team but an industry. With that said, its importance to On-Time Delivery stands out, with Kanban providing many benefits for both the consumer and non-consumer. By creating a healthier, disciplined structure and workflow, one can expect this transition to improve communication, collaboration, and enable enhanced outcomes.

Summary

• On-Time Delivery is crucial for competitiveness in the market, and it’s a critical KPI within the EMSQDP framework (Environment, Morale, Safety, Quality, Delivery, Performance).

• Kanban is a lean manufacturing technique designed to improve efficiency and optimize delivery by eliminating waste and ensuring that only necessary materials are used.

• Delivery Process: The product must be transported from manufacturer to customer on time, requiring smooth communication, timely raw material procurement, and effective transportation methods.

• Kanban's primary goal: Supply materials only as needed when required, preventing excess inventory and streamlining production.

• Kanban ensures same-day internal deliveries by using a pull system, where preferred suppliers carry stock levels based on demand forecasts for each product.

• Kaizen (Continuous Improvement): A core aspect of Kanban, encouraging ongoing improvements initiated by employees to enhance performance and efficiency.

• The perceived complexity of Kanban may deter some, but it’s most effective when the whole team is on board and committed to structured implementation.

• Proper communication and leadership are essential for successful Kanban implementation; a kanban board must be maintained to avoid complexity and inefficiency.

• Kanban improves on-time delivery across various industries by fostering better collaboration, communication, and workflow discipline.

• Overall, Kanban’s benefits go beyond materials management, positively affecting the entire workflow and leading to enhanced delivery outcomes.