Introduction
In Dynamics 365 Supply Chain Management, a kanban is implemented as a framework to plan, track, and process manufacturing and replenishment, based on pull signals.
Kanban replenishment strategies
The various kanban replenishment strategies are fixed quantity kanbans, scheduled kanbans, and event kanbans. These strategies are used to handle common manufacturing and replenishment scenarios.
The next units demonstrate the purpose of the various kanban replenishment strategies for triggering kanban pull signals and the benefit that those mechanisms can offer to Lean organizations.
The replenishment strategies are:
Fixed - Typically, this strategy is used in make-to-stock scenarios.
Scheduled - This strategy is used in make-to-stock scenarios.
Event - This strategy is typically used in make-to-order scenarios.
A kanban is an essential part of a pull system of supply, which is a critical element of lean production/supply. When a kanban has been consumed, it should be passed (triggered) to the source of supply to replenish it. This source of supply is defined through the production flow activities to which the kanban is linked.
Kanban rules in Supply Chain Management are tied to production flows as the foundation that defines the activities of a kanban. Kanban rules can be set up to support a variety of make-to-stock and make-to-order scenarios.
Kanban types
The two kanban types are Manufacturing and Withdrawal. These kanban types are used to manufacture and transfer materials in the production process.
Manufacturing kanban
A kanban of the type Manufacturing is assigned to a process that adds value. The kanban is linked to a production flow activity and thus a resource group with the role of a work cell. Manufacturing kanbans relate to at least one process activity.
The first activity of a manufacturing kanban must be a process activity. A process activity can be followed by a transfer or another process activity, allowing a kanban to span multiple activities.
Subcontracting activities are also modeled as activities and use manufacturing kanbans for the processing that occurs at the vendor.
New or unplanned process jobs appear on the kanban schedule board to be scheduled if they have not been configured to be automatically planned. If the jobs are automatically planned, they are added directly to the kanban schedule and can be processed directly with the Kanban schedule board for process jobs.
Planning period and time fence
Kanban process jobs are planned based on the configuration of the production flow model that is associated with the work cell. The Planning period and Planning time fence that are set on the production flow model define the periods for the Kanban schedule board. Planning periods can be either days or weeks. The Kanban schedule board displays the kanban jobs that are scheduled during the defined planning time fence. Kanbans can only be scheduled within this planning time fence.
Capacity shortage reaction
The Capacity shortage reaction defines the method of kanban scheduling that you should use if no capacity is available during the required period when kanbans are automatically planned. The Capacity storage reaction includes the following options:
Postpone - The job is postponed until the day that throughput becomes available.
Cancel - Automatic planning of the kanban job is canceled.
Add to the requested period - The job is added to the scheduled period of the required date. The result is that the work cell is overloaded during the scheduled period.
Distribute - The kanbans of a single event are distributed to the available production periods, starting with the first available period.
Schedule board for process jobs
After the kanbans have been planned, the shop floor then uses the Kanban schedule board for process jobs for performing against the various kanban jobs.
Withdrawal kanban
A kanban with the type Withdrawal creates a transfer job that is based on a transfer activity. Withdrawal kanbans are used to move a kanban of a specific item between supermarkets, warehouses, and production locations. Withdrawal kanbans do not add value and are not planned as manufacturing kanbans are.
Schedule board for transfer jobs
Withdrawal kanbans are implemented on the shop floor by using the Kanban board for transfer jobs. The Kanban board for transfer jobs page provides a worker with the visibility that they need to gather materials to replenish line side supermarkets and to support the picking of materials from supermarkets. Physical traceability requirements are also supported.
Fixed quantity kanban
A fixed quantity kanban rule relates to a fixed number of handling units; meaning, the numbers of active kanbans are constant. Whenever the products of a kanban are consumed and handling units are manually emptied, a new kanban of the same type is created.
The Fixed quantity, which is the number of kanbans in the flow, should be calculated based on historical and future demand and service factor.
If the quantity is too low, you risk running out of stock to meet demand, and if it is too high, then there is a risk for building up stock.
Go to Production control > Periodic tasks > Kanban quantity calculation > Calculate kanban quantity for a process job that can help you calculate the fixed kanban quantity.
The Calculate kanban quantity process job is based on the Kanban quantity calculation policy. You can assign the Kanban quantity calculation policies for each kanban rule.
Production control > Periodic tasks > Kanban quantity calculation > Kanban rules
Fixed quantity kanbans are often used with fixed circulating cards but can also be used with single use cards. A fixed quantity kanban is a make-to-stock scenario.