Kanban Replenishment Planning

 
Kanban is a meaning of supporting pull-based replenishment in manufacturing systems. A kanban system is a self regulatory pulling system that leads to shorter lead times a nd reduced inventory. Kanban systems are  typically applied to items with relatively constant demand and medium-to-high production volume.

Kanbans represent replenishment signals that are manual and highly visible, such as color code card that moves the material, a light that goes on when replenishment is required, or an empty bin that is moved to the supply location to trigger replenishment.

Kanban System Features: Kanban system includes the following characteristics

Close Co-Operation between the users and supply channel.

Short Re-Supply Lead time

Relatively small quantities reordered at a time.

Relative frequent ordering

Kanban Planned Items

To define a kanban planned item, we must set the release time Fence attribute in the MPS/MRP Planning attribute group to the Kanban Item (Do Not Release) option in the Master Item window. We can define pull sequences only for kanban planned items.

Navigation: MCR INV > Master Items > MPS/MRP Planning

Define Pull Sequences:

For Every Kanban Planned item, we must defined a Pull Sequence, which is a series of locations that model the replenishment network on the shop floor. For example a kanban location can be a sub-inventory locator. The replenishment source for a kanban location can be another kanban location, a production, or an external source. We can use locators even if locator control is turned off at organization and item levels.

Kanban can be sourced from an external supplier or an internal organization. A supplier source type kanban triggers a purchase request to the supplier, while an inter-org-source-type kanban can results in an inter-organization transfer.

Pull Sequence Terms:

Planning Only	Choose Planning Only if you want the program to perform the kanban calculations for you, but you will use a manual system to execute the kanbans. You will be able to calculate kanban sizes but will not be able to generate and print kanban cards or execute the replenishment cycle.
Kanban Size and Number of Kanban Cards	You will choose what you want the program to calculate: kanban size or kanban cards. The product of kanban size and number of kanban cards (or containers) will satisfy the demand at capacity for the planning horizon. Kanban size refers to the number of items in each kanban container. Each kanban container has one kanban card, so the number of kanban cards is the same as the number of kanbans for each item.
Enter Minimum Order Quantity (Optional)	Minimum Order Quantity represents the minimum number of units per kanban container. It is used when calculating kanban size or during the kanban execution process to aggregate kanbans smaller than the minimum order quantity. This field defaults from the Item Master window but can also be overridden.
Replenishment Lead Time	The Replenishment Lead Time must be expressed in days. This is how long it will take to physically replenish the kanban. For example, if you enter two days, the Kanban Planner will size the kanban to two times the average daily demand. If you leave the field blank, the program will assume replenishment is one day when calculating kanban sizes.

Kanban cards are created for an item, sub-inventory, and locator (Optional). They are uniquely identified by a kanban number. For cards generated from a kanban pull sequence, the number is automatically generated. For manually defined cards, both replenishable and non-replenishable, we can enter an unused kanban number or let the system create the number.

We cannot override the quantity for generated cards, but we can add additional cards or delete existing cards from pull sequence to control the inventory in  the replenishment chain.

A supplier source defaults from the sourcing rules, if a sourcing rule is available for the item and kanban location. Only the primary supplier, based on the split percentage and ranking, is used. We can manually override the quantity and supplier source on a pull sequence only before the cards are printed. Changes the pull sequences are not reflected until the cards are deleted and new ones are created. Updates the sourcing rules apply only to cards created after the update.

Kanban Card Status:

Kanban cards are generated with a default Card Status of Active. When you define a card manually, you can initially give it either Active or Hold status. If the Supply Status is Full, you can temporarily pull a card out of the replenishment chain by changing the Card Status to Hold. You can later change the status back to Active. You can terminate use of a card by changing the Card Status to Canceled, but you cannot reverse this change. Only Canceled cards can be deleted.

Kanban Supply Status: All the following Supply Status codes can be set either manually or automatically.

New	The Kanban has just been created and is not yet part of the replenishment chain.
Empty	The Kanban is empty and a replenishment signal has been generated (available only for Inter Org and Supplier source types).
Wait	The Kanban is waiting until the minimum order quantity has been met by the aggregation of cards.
In-Process	For the Supplier source type, the purchase order has been approved. For the Inter Org source type, the internal requisition has been approved.
Full	The Kanban has been replenished (Once receive the goods).

All cards are generated with a status of New. You can switch this status to Empty to trigger a kanban replenishment signal. During initial setup, you can switch the status to Full if you are starting out with a full bin. When you are defining a card manually, you can create a card with a status of Empty, Full, or New.
Kanban Replenishment Sources: You can create kanban cards with the following source types:

Inter Org	Replenished by another organization
Intra Org	Replenished from another subinventory in the same organization
Production	Replenished by a production line
Supplier	Replenished by an external supplier

Kanban Card Printing: You can print Kanban cards for a replenishment plan or a replenishment chain when you generate the cards. You can also print cards individually if the card information is complete.You can print duplicate cards only if the original is lost or voided. You are given a warning message before you can print duplicates.

Define Items (MI-KBN01, MI-KBN02 and MI-KBN03) in the master Items:


 
Navigation: MCR INV > Kanban > Pull Sequences > New > Source

For each item we have to generate card numbers. We have two options to generate card number. One is automatic through Generate Cards button by running concurrent program called Print Kanban Cards, second one is manual through Cards button.

Select 1^st item MI-KBN01 and Click on Generate Cards to create cards automatically. Click on Cards to see the Kanban cards which are automatically generated.

Select 2^nd item MI-KBN02 and Click on Cards to create cards manually. Click on Cards to see the Kanban cards which are automatically generated.
 
Similarly for item MI-KBN03, system generated 8 cards given for an item.



Kanban Replenishment Planning Continue...