< Fundamental Knowledge (3) >

e-Kanban

August, 2006
Production & Logistics
Control Dept. / GPC / TMC
 Fundamental edition

Chapter 1: The role of e-Kanban

Chapter 2: Information necessary for e-Kanban

Chapter 3: Functions of e-Kanban

Chapter 4: Format
Chapter 1: The role of e-Kanban
1. Main role
2. Differences from the current KANBAN
(Fill-up method)
3. Purpose and aim of e-Kanban
1. Main role
What is e-Kanban?
One of the methods to procure the necessary parts to produce vehicles

KANBAN TOYOTA
Supplier Parts order

Parts NQC

Parts delivery Parts management

Level up!
Conventional order method
- Monthly (Fix) order method
- Returnable Kanban
e-Kanban
VLT info method /
(Fill-up method) Planned ordering
2. Differences from the current
KANBAN (Fill-up method)
What is Fill-up method?
W T
TOYOTA
Supplier

Assembly
A

Delivery

KANBAN cycle: 1-4-4 Issuance of

KANBAN
Order (KANBAN is brought back)

Issue KANBAN (=order) at the same time when the parts are used,
and fill up for the parts that were “actually used”. = Fill up method
L/O
2. Differences from the current
KANBAN (Fill-up method)
With e-Kanban TOYOTA
W T

Jig-in
Date: Sep. 6
Virtual line Attachment point
A
L/O scheduled date and time
Supplier This condition means Sep. 10 Sep. 10 Sep. 10
information sequence. 09:20 09:18 09:16
Not-yet welded vehicles are
waiting, as if there were
a production line
L/O

Progress PC store

The virtual line enables to grasp the L/O date of production vehicle in the future,
and enables to grasp the actual usage timing of the parts (contents) that will be
sold in the future
2. Differences from the current
KANBAN (Fill-up method)
With e-Kanban TOYOTA
W T

Jig-in

Virtual line Attachment point

A
Supplier
From KANBAN issuance
to Shipping preparation
Supplier preparation time Process depth
L/O
Internal logistics L/T
External logistics L/T

Progress PC store

The time between L/O and KANBAN issuance can be controlled as L/T
and the order timing for each Part Number can be grasped
2. Differences from the current
KANBAN (Fill-up method)
Order image TOYOTA
W T

Order target vehicle Jig-in

Order Attachment point

A
Supplier

L/O

Progress lane PC store

Place part orders Just In Time based on the expected vehicle “sales”
and realize the parts order that based on the actual demands
3. Purpose and aim of e-Kanban

Reduction of internal parts stocks

Reduce the safety stocks
by Fill-up method
(Production fluctuation x Reflected L/T)
Reduction of procurement lead time
Issue KANBAN not by the following
process but by the direct data receiving
Realization of Heijunka order
Realize the parts orders without fluctuation
by the Heijunka
Prepare the foundations that realize
the customer oriented demand & supply
Chapter 2: Information necessary for e-Kanban
1. Information from other systems
2. Lead time information
3. Production result information
1. Information from other systems
<System map>
● Contents list, Hikiate ● Parts NQC ● S/F information
Part Number
● External logistics delivery cycle information
G-ALC ● External logistics delivery L/T

P-SMS GPPS
G-SCM

T-LMS
● Management of
● Customer parts location codes procurement Part Number
● Process depth ● Order calculation
It is necessary to cooperate
with other systems of G-SCM
ARS e-Kanban Only e-KBN is NG
Local system

System
Plant Supplier

PDS

e-Kanban
Skid label
KANBAN room

“Key point” : e-Kanban system cannot operate without related systems

2. Lead time information
e-Kanban
TOYOTA

Order

Supplier

PCstore

L/O

P-lane
Line side

Supplier shipping
preparation period External logistics L/T Internal logistics L/T Process depth

- Printing out of KANBAN and manifest - Departure from supplier to arrival - From P-lane exit to - From attachment
- Parts pick-up at TMC (To P-lane exit) part attachment point point to L/O point
and shipping preparation

“Key point” : Establish the “L/T” control management in place of KANBAN cycle
2. Lead time information

e-Kanban T- LMS ARS

Supplier shipping
Supplier shipping Internal logistics Process
preparation
preparation period
period
External
Externallogistics
logistics L/T
L/T Internal L/T
logistics L/T depth
Process depth

- Printing out of KANBAN and manifest - Departure from supplier to arrival - From P-lane exit to - From attachment
- Parts pick-up at TMC (To P-lane exit) part attachment point point to L/O point
and shipping preparation

“Key point” : Assure each L/T accuracy of each system

3. Production result information
TMT case: Standard result reflection L/T = 3 days

項目
Item 日
Day D
D D+1
D+1 D+2
D+2 D+3
D+3 D+4
D+4

e-Kanban

Input the actual

production result Order calculation Order calculation

Calculate Calculate
Complete existing order calculation D+1 day D+2 days
Production schedule
生産計画（台） (units) 560 550 560 550 560
Implementation
実行計画（台）
schedule (units) 570 560 570 560 580
Qty ordered by
e-KBN発注数（台分）
e-KBN (vehicles) 570 560 570 560-20 580+30
Actual production
生産実績（台）
result (units) 550 590 570 560 580
Schedule x result
計画×実績差（台）
difference (units) -20 +30 0 0 0
Internal stocks
構内在庫（台分）
(vehicles) +20 -10 -10 -30 0

“Key point” : Order reflection into e-Kanban is after 3 days L/T

Chapter 3: Functions of e-Kanban
1. Order based on the virtual line
2. e-Kanban system enables to directly
send & receive the order data
3. Order dividing and Heijunka function
1. Order based on the virtual line
Characteristics of Fill-up method

KANBAN cycle: 1-: 4-

かんばんサイクル 4
1-4-4
○後補充方式の場合
- Case for Fill-up method
D-1 D D+1
First Second Third Fourth First Second Third Fourth First Second Third Fourth
1便 load 2便load 3便load 4便 load 1便 load 2便load 3便
load 4便 load 1便 load 2便
load 3便load 4便load
Number of KANBAN
かんばん外れ数
withdrawn
（発注数）
(order quantity) 12 15 13 14 13 14 14 13 14 14 12 14
Number of
delivered parts
納入数 13 14 14 14 12 15 13 14 13 14 14 13
Difference No.
外れ数と納入数
of KANBAN
の差異
withdrawn x delivered 1 -1 1 0 -1 1 -1 1 -1 0 2 -1

Orders are placed based on “actual used parts Qty”

and the parts are delivered based on the KANBAN cycle

There is difference between delivered parts Qty and Safety stocks

actual usage Qty. are necessary
1. Order based on the virtual line
e-Kanban x Characteristics

KANBAN cycle: None

かんばんサイクル : なし e-Kanban
○e-Kanbanの場合
- With e-Kanban
D-1 D D+1
First Second Third Fourth First Second Third Fourth First Second Third Fourth
1便 load 2便load 3便load 4便 load 1便 load 2便load 3便
load 4便 load 1便 load 2便
load 3便load 4便load
Number of KANBAN
かんばん外れ数
withdrawn
（使用実績）
(order quantity) 12 15 13 14 13 14 14 13 14 14 12 14
Number of
delivered parts
納入数 12 15 13 14 13 14 14 13 14 14 12 14
Difference No.
外れ数と納入数
of KANBAN
の差異
withdrawn x delivered 0 0 0 0 0 0 0 0 0 0 0 0

Order and deliver parts based on

“the expected parts QTY to be used” and the lead time

In theory, the delivered parts QTY is Safety stocks are not

matched with the QTY of parts used necessary in theory

Internal stocks can be reduced

2. e-Kanban system enables to directly
send & receive the order data
Issued by following process TOYOTA
Order

e-Kanban

Bring back Print

Attachment point

L/O

Supplier
Progress PC store

The mechanism: Each receiving dock issues Kanban cards,

and truck driver brings them back and delivers parts.
When using e-Kanban system, the following process (TMC) can print
out and issue Kanban cards to instruct delivery.
2. e-Kanban system enables to directly
send & receive the order data
Direct data receiving TOYOTA
Order
Bring back
e-Kanban
Electronic
transmission
Attachment point
Print

L/O

Supplier
Progress PC store

Electronically
* The mechanism:transmit e-Kanban to
Electronically the supplier,
transmits
andthethe supplier order
e-Kanban outputs e-Kanban
data These conditions
* Network infrastructure
Compared with followingthat accepts
process are necessary
issuance, the bring-back
electronic
lead time cantransmissions
be shortenedall the time

The procurement lead time can be reduced

3. Order dividing and Heijunka function
Order dividing function
Suppliers are,
D day OnTherefore,
the day *D,Part
ifwhen
the number
the total
number A of
= vehicle
boxes quantity
DENSO is
divided
with by the
* Part
e-Kanban divide
is number number,
B = AISINthe 540 units
540 units,toward
Production plan 560 the order is =evenly divided as the matrix
The
* Part dividing
No.A 12by T-LMS
boxes are necessary
560-20 below. * DENSO = divide by 8
Order quantity * Part No.B = 20 boxes are necessary
* AISIN = divide by 12
540
T-LMS

Divide Order No. #1 #2 #3 #4 #5 #6 #7 #8

12 boxes Number of
number Part 2 1 2 1 2 1 2 1
boxes
8 number A
DENSO
Order No. #1 #2 #3 #4 #5 #6
20 boxes Number of
2 2 1 2 1 2
boxes
Part Order No. #7 #8 #9 #10 #11 #12
12 number B
AISIN Number of
boxes 1 2 2 1 2 2
3. Order dividing and Heijunka function
Order Heijunka function
Supplier Part Order
number quantity #1 #2 #3 #4 #1 #2 #3 #4
TOYODA
GOSEI W 27 7 7 6 7 7 7 6 7
TOYODA Heijunka
GOSEI X 18 5 4 5 4 5
4 4 5 4
5
TOYODA function
GOSEI Y 11 3 3 3 2 3 3 3 2
TOYODA
GOSEI Z 2 1 0 1 0 1 0 1 0
Total - - 16 14 15 13 16
15 14 15 13
14

As With
the result of order-dividing,
e-Kanban, the order
when fluctuatedcan
HEIJUNKA by be
each order #,
done Not
Heijunka
appliedisHeijunka
applied
(Supplier: Toyoda
depending Gosei
on fluctuation (KANBAN
(KANBANqty isqty
fluctuated)
is not
Dividing number: 4)
condition fluctuated)

1. Avoid inconvenience to supplier due to order fluctuations

2. Follow up the loading Heijunka

Realize the Heijunka order

Chapter 4: Format
1. e-Kanban
2. Skid label
3. PDS (Part Delivery Sheet)
1. e-Kanban Purpose of use: Identification and
management of box by box

Back No.

<Actual e-Kanban>

1 e-Kanban
/BOX
2. Skid label Purpose of use: Management of skids
from departure to arrival at receiving dock

G
PLANT NAME
GATEWAY 1 or 2 labels
SUPPLIER CODE, NAME per skid
TGT1-C TOYODA GOSEI (THAILAND) CO.,LTD

G2 01
DOCK CODE MROS NO.(P-LANE)

ORDER NUMBER

2005053001
SUPPLIER PICK UP ROUTE ARRIVAL, DATE/TIME DEPARTURE, DATE/TIME
28/05/2005
GC02-01 03:20
ROUTE 1

ROUTE 2

MAIN (P-LANE)
30/05/2005
GC02-01 07:30
CONVEYANCE NO.

SKID NO. OF .
3. PDS (Part Delivery Sheet)
Purpose of use: Acceptance
ARRIVAL DATE ARRIVAL TIME COLLECT COLLECT TIME
PART DELIVERY SHEET DATE

27/11/2003 10:23
QTY of NUMBER OF TMT SAMRONG MAIN ROUTE No.
PALLETS COLLECTED BOXES
XMR2-08
1 PDS per 1 order
1S AHT1ASW00350

SUPPLIER NAME SUPPLIER CODE ORDER NUMBER PAGE DOCK CODE

Asno Easstern Co.,Ltd. AHT1-A 2003120108 1/1 SW

MROS NO. Supp. Pick Up 1st XMR2-03 2nd Last XMR2-08
Route No. 722B-S-DP
Arrival Time Departure Time Arrival Time Departure Time Arrival Time Departure Time
08 XS04-01 28/11/03 13:13 01/12/03 13:21 01/12/03 15:32

TOTAL SUPPLIER TOYOTA

KANBAN Q'ty/ ORDER TOTAL QTY
PART NUMBER ADDRESS KANBAN OF CONFIRM
NUMBER PACK (KANBANS) (pcs.)
ONE SKIDS

55714-35011-00 0008 F - 07 40 1 40
Check PDS as Shipping Invoice
comparing with the actual parts
on parts arriving from the supplier
* (Invoice for supplier)

SUPPLIER TTKL STAFF/DRIVER TOYOTA PDS BAR CODE

READING
END
 1/7

Course Name Fundamental Knowledge (3) Lecture name e-Kanban

VM-NO Explanations

Introduction Today, I will be discussing the fundamental knowledge 3, one of which is e-Kanban.
Currently, the types of e-Kanban are various place by place, for example, Japanese type, overseas type, (North America, Europe,
next generation type). We are now carrying out the standardization.
In this lecture, I would like to explain about the basics of next-generation version.
(Already introduced in Turkey, Czechoslovakia, and Asian region such as TMT.)
▼

2 In today’s lecture, I would like to explain the basic items of e-Kanban, using 4 Chapters.
▼

3 In Chapter 1, I will be explaining “The role of e-Kanban”, major roles,

and difference from the conventional parts procurement style that uses returnable Kanban. (Fill-up method)
Lastly, I would like to explain the purpose and aim of e-Kanban introduction.
▼

4 What is e-Kanban?
▼ One of the methods to procure the necessary parts for TMC vehicle productions.
▼ Starting with parts NQC, e-Kanban plays the role of parts ordering, parts delivery, and internal parts management.
▼ e-Kanban is a new mechanism to be used in place of conventional Monthly fixed order style,
or returnable Kanban style (Fill-up method).
▼

5 Now, I would like to review the conventional Fill-up method, to understand e-Kanban in contrast.
▼ Fill-up method is to take the parts from rack, and at the same time,
▼ to issue the Kanban attached on the parts boxes, and the parts are filled up based on the preset Kanban cycles.
In other words, fill up the necessary qty after using the part, so we call that as Fill-up method.
▼
 2/7

Course Name Fundamental Knowledge (3) Lecture name e-Kanban

VM-NO Explanations

6 ▼ On the other hand, e-Kanban has the virtual line, that is the vehicle sequence information, inside the system,
▼ different from Fill-up method, e-Kanban can grasp the assumed L/O time and date for each vehicle, and the related vehicle parts
Information. Fill-up method places the orders based on the actual used qty.
▼ While e-Kanban enables to grasp the actual usage timing of the parts that “will be sold” in the future. *Note: Read the box.
▼

7 ▼ At the same time, as the replacement of the conventional Kanban cycle,

e-Kanban manages the L/T of the target vehicle, from L/O time, attachment point, internal stagnation hours, truck transport hours,
to Kanban issuance, as shown on the screen.

▼ This management enables to grasp the order timing per each part no.
▼

8 ▼ I would like to explain the order image utilized these two information,
setting the red vehicle on the screen as the parts order target vehicle .
▼ As you see on the screen, when vehicle production is in progress, e-Kanban places the parts order in consideration of L/T.
Based on the production progress conditions, parts are delivered skid by skid, to plants, internal logistics area, and to the line side.
When vehicle arrives at the attachment point, all necessary parts have already been delivered.
▼ We can realize the “Just In Time” ordering.
▼

9 Utilizing this e-Kanban system, TMC aims to achieve the following 3 points;
▼ Reduction of internal parts stocks (Safety stock due to fill-up method)
▼ Reduction of procurement lead time
▼ Realization of Heijunka order
▼ As the extension goal, we are aiming “to supply based on Customer Oriented demand”.
(That means to deliver the vehicle needed by customers, on the time needed).
▼
 3/7

Course Name Fundamental Knowledge (3) Lecture name e-Kanban

VM-NO Explanations

10 Next, I would like to explain the information necessary for e-Kanban. No.1 is information from other systems.
No.2 & 3 are L/T information and production result information which are important to control information inside e-Kanban system.
▼

11 G-SCM is the abbreviation of Global Supply Chain Management system.

This is the generic name of Production & Logistics related mechanism, that is introduced world wide by TOYOTA.
Seeing, focused on e-Kanban,
▼ P-SMS manages Contents list, Hikiate, Part No information by each parts Gen-tan-I.
▼ GPPS calculates NQC of the target parts, and sends the data to e-Kanban system.
Like these, various system are linked and operating together.
Therefore, the coordination with all G-SCM systems are necessary to operate e-Kanban,
▼ You have to remember that e-Kanban system cannot operate alone.
▼

12 e-Kanban has lead time information which plays the same role as Kanban cycle.
But the L/T information is more accurate than that.
To secure the accuracy, we need to grasp the following L/T.

▼ Setting supplier shipping preparation period from ordering point, to supplier manifest print-out, and then to delivery preparation.
▼ Setting external logistics L/T from the truck departure from the supplier to arrival at TMC (If using P-lane, to the exit of P-lane).

▼ Setting internal logistics L/T, from P-lane exit to the parts attachment point.
▼ Setting process depth from the parts attachment point to L/O point. We have to manage these Lead times.

The key point is, we have to study the mechanism and organization to manage these L/T, in view of operation efficiency study.
▼
 4/7

Course Name Fundamental Knowledge (3) Lecture name e-Kanban

VM-NO Explanations

13 Among the L/T as I explained now, I would like to explain again in view of system relations,
▼ “Supplier shipping preparation period” and “Internal logistics L/T” are managed by e-Kanban.
▼ “External logistics L/T” is managed by T-LMS.
▼ “Process depth” is managed by ARS (Address Registration System).
It is very important in stock controlling to assure the accuracy of each L/T in each system.
▼

14 Next, I would like to explain the outline of e-Kanban order calculation and reflection into production results.
▼ First, when production plan is prepared like this,
▼ and plant implementation schedule is prepared like this,
▼ e-Kanban normally procures the parts based on the implementation schedule volumes.
Please look at day D, implementation schedule of the day was 570 unit production, but the result was 550 units.
That means there are 20 units as internal stock, and there is 20 units difference between the schedule and result.
▼ Next D+1, input the production result of day D,
then e-Kanban system understands there is 20 units difference between the schedule and result.
▼ As the result of order calculation, reflect -20 units of the previous date result into the order.
Then we have to order total 540 units on D+3, 560 units - (minus) 20 units = (equals) 540 units.
▼ As the same, input D+1 day production result information, reflect the result difference into D+4 orders.
In other words, e-Kanban reflects the order qty adjustment 3 days after, based on production result information.
(Shorter L/T is more favorable as it is more flexible to production fluctuation.)
▼

15 Next, I would like to explain functions of e-Kanban as simple as possible, in line with the purposes and aims I explained in Chapter 1,
and how each of them are realized.
▼
 5/7

Course Name Fundamental Knowledge (3) Lecture name e-Kanban

VM-NO Explanations

16 ▼ First, when using conventional Fill-up method,

▼ Parts are ordered based on the actual used qty, and delivered based on the Kanban cycle,
▼ so, the delivered qty is not always matched with the actual used qty at the delivery timing.
▼ Structurally, we have to prepare the safety stocks.
▼

17 ▼ But using e-Kanban, it can send order and receive delivery Just In Time, based on the expected parts Qty to be used and lead time ,
like the order image that you saw in Chapter 1. So, if no production obstructions,
▼ The parts delivery qty and the actual used qty can be matched theoretically, the safety stock becomes un-necessary.
▼ Therefore, we can reduce the internal parts stocks.
▼

18 ▼ Next, before studying L/T reduction, I would like to explain the following Kanban issuance method.
Following process issuance means the mechanism like this; TMC plant, who is the following process, prints out and issues e-Kanban
card and a supplier truck driver brings back the Kanban card, and deliver the parts.
▼ In this case, the L/T is from the order point by the receiving dock, to the delivery to the dock.
We can use e-Kanban system for this following process issuance.
▼
 6/7

Course Name Fundamental Knowledge (3) Lecture name e-Kanban

VM-NO Explanations

19 ▼ On the contrary, “Direct data receiving” means the mechanism shown on the screen.
Electronically send the order data to the suppliers,
and the supplier prints out e-Kanban cards, and delivers the parts.
Compared with the following process issuance method,
▼ bringing back e-Kanban cards by a truck driver becomes un-necessary, so we can reduce the procurement L/T.
▼ However, to realize this direct data receiving method, “the system to send e-Kanban data to suppliers” and
“Network infrastructure availability” are Must to have.
If either of these is not available, we cannot send any data. It is important to study sufficiently in advance.
▼

20 Next, I would like to explain order dividing, and Heijunka functions that can actualize Heijunka ordering.
First, order dividing function,
▼ When the parts ordering for 540 vehicles is fixed on the day D,
NQC shows 12 boxes of Part No A, and 20 boxes of Part No B are necessary.

▼ In addition, suppose the supplier for Part No A is DENSO, and the supplier for Part No B is AISIN,
and suppose T-LMS set the order dividing ratio to 8 and 12.

▼ e-Kanban divides the 1 day order as the matrix shown on the screen.
This is the order dividing function.
▼

21 Besides,
▼ When Kanban qty is fluctuated in each order No for the same supplier, as shown on the screen,

▼ Due to e-Kanban order dividing function, the order qty is automatically evened out, and order Heijunka can be completed.
▼ As the result, we can prevent the inconvenience of order fluctuation toward suppliers, and also can complete loading Heijunka.
However, we have to prepare the safety parts stocks when using this function,
because there is difference between delivered parts Qty and actual usage Qty.
▼
 7/7

Course Name Fundamental Knowledge (3) Lecture name e-Kanban

VM-NO Explanations

22 Lastly, I would like to explain simply the actual formats of e-Kanban, Skid label, and PDS as Chapter 4.
▼

23 The purpose of e-Kanban use is “Identification and management box by box”. e-Kanban is attached on every box.
e-Kanban has information as you see on the screen, necessary information for the target vehicle parts.

Such as arrival time and date from supplier, the specific information for the target part, and receiving dock information.
▼

24 Skid labels are used for “Management of skids from supplier to arrival at receiving dock “. 1 or 2 labels are attached per a skid.
▼

25 And, we have PDS as the manifest, used for parts acceptance.

PDS is prepared, 1 sheet per a order.
We check the actual parts comparing with this PDS at parts arrival timing, and use this for delivery delay control,
and special truck delivery control.
▼

26 That’s all for the explanation of e-Kanban, Visual Manual (Fundamental Knowledge course).
Do you have any questions?