Call-Off Production, Triggered by the Traditional Kanban Card or by Electronic Kanban: A Case Study at Ericsson
2010 (English)In: POMS 21st Annual Conference, 2010Conference paper (Refereed)
This study analyzes a concept for materials supply called call-off production, used by the telecom company Ericsson, where a case study was performed. Call-off orders are initiated from the production area and submitted through electronic data interchange (EDI) to an external supplier, a third-party logistics provider, skipping the traditional purchase ordering process. In call-off production Ericsson applies two forms of kanban for triggering the replenishment, namely the conventional kanban card and electronic kanban. For both variants, call-off production implies a short lead time, frequent deliveries, and the potential for controlling tied-up capital, using few resources, and providing a high level of delivery service. The study indicates that the conventional kanban card requires more handling than electronic kanban. On the other hand, electronic kanban could hide problems in the stock. To conduct the analysis, a theoretical framework and an analysis model were created as a foundation. Call-off production could be an uncomplicated and efficient method for manufacturing companies to manage some of the purchased products. This study’s intended contribution is to increase the knowledge of a supply model in practice.
Place, publisher, year, edition, pages
materials supply, call-off production, kanban
Other Engineering and Technologies
IdentifiersURN: urn:nbn:se:hig:diva-10201OAI: oai:DiVA.org:hig-10201DiVA: diva2:442509
Production and Management Operation Society 2010