Digitalization of the Kanban System

Abstract

Technologies of the fourth industrial revolution are closing the gap between physical and virtual world in manufacturing process and it will have a huge effects on whole supply-chain. The changing paradigm of manufacturing value chain affects tier 1 and 2 suppliers in Turkey as also affects every country and industry. Definitely, the digitalization of the lines and value chain will bring challenges to these suppliers. They either has to invest for new technologies and competent workers, or will be open to lose their market proximity advantage to cost effective competitors. A case study from a tier 1 supplier, Aisin Turkey (which is operating as a supplier to manufacturers like Toyota, Hyundai, Honda), will be shared along with the lessons learned and possible extension strategies for similar companies. In 2017 a dedicated design and manufacturing team is assigned for application of Industry 4.0 technologies and virtual product labers that can communicate with machines, lines and their die changing systems according to orders coming from customers. In this study, details of this digital production management method and the potential impacts of Industry 4.0. or digitalization of manufacturing on tier 1 and 2 automotive suppliers in Turkey will be explored.