1. iKANBAN Interoperable KANBAN Process
April 2005
iKANBAN Interoperable KANBAN Process
Supply Chain Process Platform (SCPP) - iKANBAN

2. Our example KANBAN Basic Information
The KANBAN principle is a consumption control mechanism
KANBAN manages the material flow in a complex supply chain
KANBAN enables the „Just in time“ principle – every arriving KANBAN triggers supply and production
KANBAN optimizes consumption by strictly implementing a pull process.
KANBAN is simple and efficient– by establishing automatic control loops.
A consumption notification signal flows back to the producer - by returning the KANBAN
The inventory between two control points is limited by the number of container maps.
April 2005
Supply Chain Process Platform (SCPP) - iKANBAN

3. KANBAN Principles The Toyota Equation
An equation developed at Toyota Motor Car Company for calculating the initial number of KANBAN cards needed in a Just-in-Time manufacturing network.
In words, the number of KANBAN equals the number of production units to be made during the transportation lead time (to the next stage).
The equation is n = (d*L* (1+b))/c
n number of cards,
d number of units made per hour,
L transportation lead-time in hours,
b safety factor, usually initially set at 0.1,
c number of units in a parts container, if one is used.
This number is a starting point – every effort must be made to decrease the number in order to continuously reduce the stock levels !
April 2005
Supply Chain Process Platform (SCPP) - iKANBAN

4. KANBAN Integration with SCPP
Information Flow
Producer
Consumer
Barcode Reader
Barcode Reader
Material Flow
per SCPP
April 2005
Supply Chain Process Platform (SCPP) - iKANBAN

5. Supply Chain Process Platform (SCPP) - iKANBAN
April 2005
KANBAN States: Legend
KANBAN State 9 3 4 2
Max. No. of KANBANs
Actual No. of KANBANs
Upper Limit of KANBANs
Lower Limit of KANBANs
Signalization
April 2005
Supply Chain Process Platform (SCPP) - iKANBAN
Supply Chain Process Platform (SCPP) - iKANBAN

6. KANBAN States Inbound – Outbound - Transit
April 2005
KANBAN States Inbound – Outbound - Transit 1
Shortfall State 9 4 2
Normal State 9 3 4 2 5
Overdelivery State 9 4 2
Inbound - Outbound
Transit 1
Empty State 9 3
Full State 9
April 2005
Supply Chain Process Platform (SCPP) - iKANBAN
Supply Chain Process Platform (SCPP) - iKANBAN

7. KANBAN Process Model Exception States
April 2005
KANBAN Process Model Exception States
Scan Points at System Boundaries
Organization A
Organization B
Transport
SP A Full
SP B Full
Outbound
Inbound
SP A Empty
SP B Empty
Transport
April 2005
Supply Chain Process Platform (SCPP) - iKANBAN
Supply Chain Process Platform (SCPP) - iKANBAN

8. KANBAN Process Model Normal States
April 2005
KANBAN Process Model Normal States
Scan Points at System Boundaries
Organization A
Organization B
Transport
SP A Full
SP B Full
Outbound
Inbound
Normal
State 9 4 2
SP A Empty
SP B Empty
Transport
April 2005
Supply Chain Process Platform (SCPP) - iKANBAN
Supply Chain Process Platform (SCPP) - iKANBAN

9. SCPP (Supply Chain Process Platform) – Principles
April 2005
SCPP (Supply Chain Process Platform) – Principles
SCPP is a set of interoperable Internet Technology Services (Webservices) for cross border Supply Chain Processes
SCPP supports distributed Supply Chain Processes across system boundaries applying Internet interoperability principles
SCPP especially supports "Ready to Use" interoperable processes and models for the Automotive Industry
iKANBAN – interoperable KANBAN processes and control
iVMI – interoperable Vendor Managed Inventory
iDCP – interoperable Demand Capacity Planning
iSCMo – interoperable Supply Chain Monitoring
April 2005
Supply Chain Process Platform (SCPP) - iKANBAN
Supply Chain Process Platform (SCPP) - iKANBAN

10. SCPP (Supply Chain Process Platform) – Scope
April 2005
SCPP (Supply Chain Process Platform) – Scope
Supply Chain Process examples in the Automotive Industry
VMI – Vendor Managed Inventory (Odette Project)
CMI – Collaborative Managed Inventory (AIAG/Odette/Jama Project)
DCP – Demand Capacity Planning (based on Odette Specification)
SCMo – Supply Chain Monitoring (based on Odette Specification)
…..
Just in Time or KANBAN in various characteristics
Supply Chain Processes in the Automotive Industry are by nature spanning across the Supply Chain
Processes involve multiple parties
Complexity influenced by material -, information - and process work-flow
Existing Information systems are not designed for these processes
Open for custom Supply Chain Processes
Use of predefined Interoperable Process Components (IPCs)
Use of flexible predefined recursive sub models
Use of Webservice Templates
Communication via high level Internet Protocols (e. g. SOAP)
April 2005
Supply Chain Process Platform (SCPP) - iKANBAN
Supply Chain Process Platform (SCPP) - iKANBAN

11. SCPP Interoperability - Benefits
April 2005
SCPP Interoperability - Benefits
Interoperability - the implementation completely based on internet technologies
All Documents locally defined in XML (e. g. messages, states, exceptions etc.)
Webservices (using WSDL – Web-Service Definition Language)
Internet Protocol Stack (from TCP/IP to SOAP)
Scalability – there is no leading system across the Supply Chain
every node in the Supply Chain is loosely coupled with other nodes
Consistency – there is no central database, each database is bund able
Stateless design
No synchronization issues
Safe transactions
there are no batch processes across the supply chain – everything is “online” and “real-time”
Inherent security
Every party may implement a proprietary security policy due to the purely local data storage
Communication via Internet Protocols like SOAP
April 2005
Supply Chain Process Platform (SCPP) - iKANBAN
Supply Chain Process Platform (SCPP) - iKANBAN

12. SCPP Architecture Service Types and Interoperability Hub
Four types of services are available for each specific Supply Chain Process acting on the iHub
Rendering Service
Specific view for actors in the process
Can be used in several applications, portals etc. along the Supply Chains
Docking Services
Docking to other systems such as
ERP systems (SAP, Oracle, …)
MRP systems (QAD, …)
Office Applications (MS Excel, OpenOffice, …)
Or simply keying in the data
Process Service
Standard-handling of spanning Supply Chain Processes
Exception-handling of spanning Supply Chain Processes
Model Service
Recursive Model for a specific spanning process in Supply Chains
Rendering Service
Process Service
Process Service
iHub
Model Service
Model Service
Docking Services
iHub needs to be defined
April 2005
Supply Chain Process Platform (SCPP) - iKANBAN

13. SCPP Interoperability Architecture: Information Flow - Material Flow - Technology
Process Service Model Service
Presentation Service
Docking Service
Technology
Material Flow
Information Flow
Tier 1
OEM
Tier 2
Tier 3
Lean Implementation
PHP Apache http Server MySQL Virtual SOAP Server
85%
Light Weight Implementation
Java Apache http Server MySQL Tomcat, ESB
10%
Rich Implementation
Java Apache http Server, MS IIS, … MySQL, DB2, Oracle, MS SQL Tomcat, ESB, Weblogic, Websphere, .Net, … 5%
April 2005
Supply Chain Process Platform (SCPP) - iKANBAN

14. SCPP Service Implementation Levels Dependent on Infrastructure
Tier 3ff
Customers IT-Infrastructure Provider or In house
Lean Implementation
Simple IT-infrastructure
Simple packaged installation
Manual data input or transfer of text files
Tier 2
Light Weight Implementation
Given IT-infrastructure
Scalable and simple installation
Data input through standard adapters
OEM
Rich Implementation
Complex enterprise IT-infrastructure
Highly scalable installation
ERP Connectors secure online data transfer
Multiple presentation level requirements
April 2005
Supply Chain Process Platform (SCPP) - iKANBAN

15. Multi Stage KANBAN Process Model with Consolidation
April 2005
Multi Stage KANBAN Process Model with Consolidation
Consolidation of KANBAN States
April 2005
Supply Chain Process Platform (SCPP) - iKANBAN
Supply Chain Process Platform (SCPP) - iKANBAN

16. Multi Stage KANBAN Process Model Loosely Coupled KANBAN Models
April 2005
Multi Stage KANBAN Process Model Loosely Coupled KANBAN Models
Coupling of KANBAN Models
April 2005
Supply Chain Process Platform (SCPP) - iKANBAN
Supply Chain Process Platform (SCPP) - iKANBAN

17. Supply Chain Process Platform (SCPP) - iKANBAN
“Interoperable KANBAN” Pedicting System Behavior through online Simulation
Collaborative setup of the iKANBAN “Game”
Supply Chain nodes at “Any time, any place, no matter”
Number of actors is unlimited
Multi stage, multi tier KANBAN
Excellent training effect
With or without real data
Time-lapse function
Optimization of KANBANs
Predicting of KANBAN systems behavior
Simulation of change management and exception handling
Last but not least a lot of fun in playing iKANBAN
April 2005
Supply Chain Process Platform (SCPP) - iKANBAN

18. SCPP iSolutions Added Value
Local strategy retains untouched by managing of overlapping Supply Chains
Global visibility is neither desirable nor necessary in almost all spanning Supply Chain Processes
Change processes are effectively supported along the Supply Chain
Varying implementation levels facilitate smaller suppliers to be part of a bigger community i. e. by using a Lean Implementation
Significant savings along the Supply Chain via support by interoperable solutions
Clustering of iHubs reduces dramatically the virtual endpoints and therefore the active clients in use for one actor
Aggregation and mapping again reduces no. of clients for an actor without loosing information
System assisted exception management across system borders allows to run overlapping Supply Chains smooth and effective
Overall result is a significant reduction of resources and inventory
April 2005
Supply Chain Process Platform (SCPP) - iKANBAN