Alban Giacomo – Quality and Complexity
AGB Alban Giacomo S.p.A., based in Romano d’Ezzelino, Italy, is a leading manufacturer of fitting systems for doors, windows, and furniture. For decades, the company has stood for innovation, quality, and reliability in the industry.
The vast catalog with over 20,000 products, manufactured in seven specialized production facilities in Italy, creates immense complexity. Traditional, forecast-based production control systems (PUSH system) were increasingly overwhelmed, leading to increased work-in-progress (WIP) inventories, poor coordination between plants, extended delivery times, and a lack of real-time transparency in manufacturing processes. To optimize operational processes and increase supply chain efficiency, AGB decided to replace its manual material control with a digital solution and implement an e-Kanban system company-wide.
Operational Pressure in a High-Variety Environment
Before digitalization, AGB used a manual Kanban system. This was based on laminated A5 cards containing basic information such as item number, description, and container quantity. Kanban calculation was performed using an Excel spreadsheet managed by a single person. This system increasingly encountered its limits and caused several key challenges:
- Lack of Transparency: To check the status of Kanban loops, a physical inventory check on-site was necessary. A quick, comprehensive overview of critical stock was not possible.
- Information Barriers: Knowledge about material availability was mostly limited to the person physically working with the items. Effective information exchange was hardly possible.
- High Risk of Errors: Manual cards could easily be lost or damaged, leading to incorrect orders or material shortages.
- Lack of Standardization: Different departments had developed their own card designs, leading to confusion and inefficiency. The goal was clear: AGB needed a solution that visually showed at a glance where bottlenecks were imminent and proactively minimized the risk of material failures.
Strategic Decision for Lean Digitalization: Why e-Kanban?
Given the increasing operational pressure, a solution was sought that could address the immediate challenges of production control while aligning with the company’s long-term strategic goals. After careful evaluation, AGB decided to implement the IKS e-Kanban system. The implementation took approximately four to five months and was characterized by two crucial success factors:
- Targeted Selection of Items: Instead of immediately implementing the system across the board, AGB started with a small, manageable selection of items. This allowed the team to understand the full potential of the software and build confidence in the new method. After this successful pilot phase, the system was gradually expanded to a wider range of items.
- User Buy-in: The biggest challenge was convincing experienced warehouse and production employees of the changeover. Initially, there was skepticism towards the “invisible” change. Through targeted training and visualization of benefits – such as the reorganization of storage areas and the avoidance of overproduction – the team was convinced. Today, years later, it is these same users who proactively suggest new items for inclusion in the e-Kanban system.
The Arguments Against Manual Kanban
The manual Kanban system was completely inadequate for an operation of the size and geographical distribution of AGB. There were several reasons to implement the IKS e-Kanban system:
- Real-time Transparency Across the Entire Company: An IKS e-Kanban system offers a central, digital dashboard that displays the status of every Kanban loop in all production facilities in real-time. This eliminates the “black box” problem and provides planners and managers with unprecedented transparency and control.
- Automated and Fail-safe Signaling: Instead of physical cards, signals are transmitted electronically via scanners or automated triggers. This happens instantly, eliminating the risk of lost cards and removing sources of human error.
- Seamless ERP Integration: The modern IKS e-Kanban system can be tightly integrated with the existing ERP system. This enables the automatic creation of production orders or supplier orders, streamlining administrative processes and ensuring data consistency across platforms.
- Data Collection for Analysis: Every Kanban movement generates valuable data points that are analyzed to optimize inventory, calculate accurate lead times, identify bottlenecks, and drive continuous improvements. This perfectly aligns with AGB’s identity as a “technologically advanced industry” and its data-driven quality approach.
A Phased Company-Wide Rollout
The transition to company-wide use of IKS at AGB was a significant strategic initiative, implemented through a carefully prepared, multi-phase plan. This approach was designed to minimize risks, build organizational momentum, ensure seamless technological integration, and ultimately embed the principles of lean manufacturing deeply within the corporate culture.
The Integrated Kanban System IKS is now a central tool in AGB’s operational areas. It is used both internally for controlling high-throughput semi-finished products and externally in collaboration with suppliers. Currently, IKS comprises 340 Kanban control loops with a total of 4,500 Kanban cards distributed across 16 departments/suppliers.
Qualitative Achievements and a Humorous Anecdote
The effects of transitioning to a digital pull system were immediately visible in the key performance indicators that determine the efficiency and effectiveness of manufacturing. Based on this digital lean transformation, the results were profound. Optimizations included:
- WIP inventory levels
- Delivery and lead times
- Material availability of required components
- Utilization of storage space
AGB plans to consistently extend the use of e-Kanban to all suitable areas. The simple and intuitive user interface has created high acceptance among employees.
A small anecdote to conclude, which the warehouse employees tell us regarding the purchased cardboard packaging material:
Before: “How many boxes did you buy? I have no more space, ” to store them – next time I’ll bring them to your house!”
Today: “When are the boxes arriving? I still have several free ” spots on the shelves – I hope they’re not late!”