the dilemma of variable consumption stocks
The transition to electronic kanban solves the problem of supplying variable consumption stocks due to the high seasonality of the product
“Be sober when relaxing”
In the Treviso hills there is a company that has made its mission a true philosophy. A philosophy of the salle de bains, we could say, understood as a hammam of lifestyle. A concept to furnish spaces dedicated to absolute relaxation, the bathroom in fact, according to the cardinal principles of beauty, innovation and Italian product quality. So much so that in the present day this company, IDEAGROUP, is a leader in the creation of furniture and furnishings for the bathroom and its products are synonymous with high design, research, flexibility and maximization of production capacity.
The problem in the management of material flows in the furniture production sector lies in the high seasonality of the products, a problem well known also in IDEAGROUP. Because of this, the traditional kanban didn’t work at its best. The result: manual kanban required costly maintenance, stocks increased instead of decreasing, and production downtime (Stock-outs) remained a problem.
Hence the decision to introduce KanbanBOX and make the substantial transition to an electronic kanban system, with excellent results. The web software is responsible for managing more than 200 kanban items and 6 suppliers, with a plan to introduce at least two more to the network.
In the transition from MRP production management to electronic kanban, IDEAGROUP recorded an average percentage reduction of 50% in stocks and, consequently, in fixed assets. Therefore, the electronic system has made it possible to obtain more control over stocks, including those with variable consumption. In addition, the ease of collection of consumption data and the delivery reliability of suppliers has increased.
Thanks to KanbanBOX we have achieved two goals that we set ourselves: reduction of stocks and zero stock-outs.
We spoke with Engineer Pier Antonio Foscan, KPO of the company, who told us about his experience with our software: “Some had doubts about the transition to electronic kanban due to the problems they had with manual kanban. The free test was a great way to convert and convince everyone. Now the most sceptical are the most enthusiastic. Thanks to KanbanBOX we can say that we have achieved two goals we had set ourselves: reduction of stocks and zero stock-outs“.
The positive results were seen in just two or three months, then in the space of a year they consolidated.
IDEAGROUP can relate:
- a 25% percentage reduction in stock in the transition from manual to electronic kanban
- a 50% percentage reduction in stock in the transition from MRP to electronic kanban
- zero stock-outs.
The software was implemented in the system in a period of high seasonality, gradually inserting suppliers into the system. The additional benefit according to Engineer Foscan is that KanbanBOX allows the monitoring of the delivery reliability of suppliers, allowing the latter to clearly and quickly view the status of active orders.
This favours the link between supplier and customer and therefore delivery punctuality: “In some cases we have managed to reduce supply Lead Times by 50% compared to a traditional kanban”.
KanbanBOX has been easy to implement and is used without problems by both the company and suppliers, even by those who do not know kanban and who do not have computer knowledge: “KanbanBOX is very simple to use. The use is immediate and the software can be used by people with any level of experience.
That’s why, concludes Ing. Foscan, “KanbanBOX only brings benefits!”.
