Configure parameters
There are several components that need to be set up to use lean manufacturing in Supply Chain Management. This unit will discuss the components and their functionality in lean manufacturing.
Lean manufacturing parameters
Go to Production control > Setup > Production control parameters and select the Lean manufacturing tab.
In the Production instruction field, you can select the type of document that is used for production instructions that are displayed on the kanban board.
Production flow costing
Lean manufacturing disrupts the traditional cost concepts of job costing because the context of a production order is not available. Lean manufacturing for Supply Chain Management uses the production flow as the cost accumulator.
Cost of material and semi-finished and finished products are tracked for each item and cost group. Work in process (WIP) is tracked for every production flow.
To set up WIP accounts for subcontracting, go to Production control > Setup > Production > Production groups, expand the Ledger-Lean subcontracting option, and then assign ledger accounts.
The production group defines the set of accounts that are used for the financial postings that are related to the production flow. The most important accounts are the WIP and Offset accounts, which are the basis of variance calculation for the production flow.
Lean schedule group
Lean schedule groups are defined to group and distinguish products in kanban scheduling. The grouping can be done as generic association for each company or can be specific to a work cell. Each group has an assigned color code for visual indication in the kanban scheduling list page.
Go to Product information management > Lean manufacturing > Lean schedule groups to create a schedule group and then set a color and add lean schedule items to show kanbans for assigned items with different colors for better visibility.
