Introduction
A lean manufacturing scenario is usually more than an accumulation of unrelated kanban rules or material-supply policies. The flow of material and products throughout work cells and locations for a specific production or supply scenario can be described as a sequence or small network of process or transfer activities called a production flow.
The activity-based production flows in Dynamics 365 Supply Chain Management are to establish a production and cost context for various kanban scenarios. All kanban rules are directly connected to this pre-defined structure.
The activity-based model allows users to set up a wide range of scenarios. Also, the activity-based model comes without the added complexity for the shop floor workers because all scenarios use the same activity-based user interface.
Work cell
A work cell is a type of resource group that can be used in lean manufacturing process activities. Work cells have input and output locations and a capacity definition based on a production flow model.
Semi-finished products
In traditional manufacturing within Supply Chain Management, production orders allow users to report jobs on an operation level. With each finished operation, the product reaches a different state of semi-finished product. However, this status is not registered in inventory unless the last operation of a production order has been completed and the next BOM level is reached.
Semi-finished products that do not represent a BOM level are usually identified by the product ID of the next BOM level and the last completed operation. An activity that consumes semi-finished products cannot be the first activity in a production flow.
With lean manufacturing for Supply Chain Management, this concept can be applied to production with manufacturing kanbans through the underlying production flow activities.
The semi-finished options are:
Update on hand receipt - Select if the activity outputs products that are finished products (BOM level) and the product receipt is registered in inventory.
When you use the Update on hand receipt parameter, the value of the finished product is moved out of the production flow at standard cost.
When you clear the check box, the value of the received product remains in the WIP of the related production flow. The value is moved out of WIP when the goods are transferred or consumed by the succeeding activity in the production flow.
Pick up - Select if the activity consumes semi-finished products. A semi-finished product is any intermediate state of a product that is between two BOM levels.
Receive - Select if the activity outputs semi-finished products. You can only select this check box if the Update on hand receipt check box is not selected.