E-Kanban Hybrid Model for Malaysian Automotive Component Suppliers with IoT Solution

Abstract

The supply chain in the automotive component industry today had faced multiple challenges on-demand, delivery, and costs simultaneously. In order to keep up with the uncertainties on order requirement, the component suppliers need to continuously innovate their business practice to be more efficient and cheaper than competitors. Kanban is a proven lean tool for a pull production system that controls the flow of material between various workstations by using a signal or travelling card methods. As the supply chain industry has entered the new era of Industry 4.0, the concept of signalling system has been restructured along with new technologies given the advantages of the Internet of Things (IoT). This study aims to develop a concept for electronic Kanban (e-Kanban) to speed up the information and data transfer for production planning and scheduling between companies by using Hybrid e-Kanban Production Systems. The model applies an effective tool of Microsoft Excel combined with cloud database using Microsoft OneDrive. This data sharing on production planning and scheduling can reduce preparation and delivery time for the product. The supplier than can view customer's production data in real-time and respond to any changes to minimize their inventory, to avoid overproduction and wastage. The traditional travelling card method had some issues on the missing card, recording and documentation. However, the e-Kanban ensures the production database is recorded and documented with the necessary production details at real-time. The e-Kanban addresses various industrial challenges including customer satisfaction, communication, and innovation. The author demonstrates the application in a shared database. Furthermore, by implementing an e-Kanban cloud database design, it improves production efficiency, reduces material cost and labour usage. This paper discussed the potential benefits contributed by e-Kanban for cost-efficient operations.