Configure scheduled kanban rules
Kanban rule setup
A kanban rule is a material supply policy that governs process and transfer activities that are based on kanbans. The kanban rule defines the way in which an item is produced or transferred and links the item to the activities within the production flow.
Based on the firm horizon of the supply forecast or actual demand from sales orders or production, Master planning automatically creates the kanbans that are needed to cover the related issues. The creation is done based on the kanban rule for the firmed horizon. The planner can also manually create planned orders of type Kanban and firm them to scheduled kanbans.
Go to Product information management > Lean manufacturing > Kanban rules to create new scheduled kanban rules.
The following list describes the fields on the Kanban rule FastTab (access the FastTab by selecting the Kanban rule):
Type - Specifies whether the kanban is a manufacturing kanban that creates a kanban process job or a withdrawal kanban that creates a kanban transfer job.
Replenishment strategy - Select Scheduled when you are creating a scheduled kanban rule. Scheduled kanbans are generated during Master planning based on actual demand, forecast, or minimum stock levels that signal demand. Scheduled kanbans can also be created manually.
Kanban rule - Automatically assigned number that identifies the kanban rule.
Product selection - The identification of the product selection of the kanban rule.
First plan activity - Select the first activity of the kanban rule. This selection links the kanban to the production flow version activity. The first activity of a manufacturing kanban rule must be a process activity. The first and only activity of a withdrawal kanban rule must be a transfer activity.
Multiple activities - Select this check box to configure multiple activities for the kanban rule. Only manufacturing kanbans can have multiple activities. Scheduled kanban rules have to end with an activity that updates inventory; otherwise, the activity selection is not valid.
Last plan activity - When the Multiple activities check box is selected, you can select the last activity of the kanban rule. When Multiple activities is selected, you can choose the activity flow based on the production flow activity relations to produce the kanban-specific flow. The lookup page displays all activities that are downstream from the first activity in the same production flow version.
Register as empty - Select an option to define when material handling units are registered as empty. The options in this field are:
When handling units are received - When the last job of a kanban is completed, the kanbans are registered as empty and disappear from the kanban quantity overviews. This option is the default setting for scheduled kanbans, and it can also be used for the other replenishment strategies. When this option is used with the fixed quantity strategy, a new kanban is created whenever the last job of the previous kanban is completed.
When the source requirement is registered - When the products that are supplied by event kanbans are consumed by the demand source, the kanbans are registered as empty. The kanbans then disappear from the kanban quantity overview in the kanban boards.
Manual (includes scanning empty) - The kanbans must be explicitly registered as empty. Use this setting when products are stored in supermarkets before they are consumed or shipped. This option is the default setting for fixed quantity kanbans.
The following list describes the fields on the Details FastTab:
Product selection - Scheduled Kanban rules can specify a Product selection of the type Product, Product family, or All.
Product - The kanban rule is valid for a single item number. For items with product dimensions, the kanban rule can be valid for a specific dimension or for all values of the product dimension. You can ensure that the kanban rule is valid for all values of the product dimension by leaving the product dimension of the kanban rule blank.
Product family - The kanban rule is valid for all items and the related product dimensions that are assigned to a single item allocation key.
All - The kanban rule is valid for all products that are supplied by the kanban rule's last activity. In other words, the kanban rule is valid for all items of planned order type Kanban that have issues related to the supplied location (site, warehouse) of the kanban rule.
Product - When this option is selected in the Product selection field, select the item from the lookup list. If the product carries product dimensions, the product dimension fields are activated but not mandatory.
Product family - When this option is selected in the Product selection field, select the Item allocation key from the lookup list.
Valid - Effective date and Expiration date - Select the dates when the kanban rule becomes effective and when it expires.
Lead time - View the lead time that is needed to replenish the kanban. The lead time is the actual lead time that is agreed upon to replenish a kanban in a supermarket when the handling unit is empty. Likely, the actual lead time is longer than the calculated lead time.
Unit of measure - The unit of measure that is used with the lead time. When the unit of measure is changed, the lead time is recalculated according to the defined conversion of the old and new units of measure. Only units of measure of the class Time can be used.
The following list describes the fields on the Quantities FastTab:
Default quantity - For scheduled kanban rules, enter the default product quantity to use for each kanban. A value in this field is not required for scheduled quantity rules.
Minimum quantity - For scheduled kanban rules, enter the minimum product quantity to use for each kanban. The value that is entered in the Default order settings, Inventory quantity, and Min. order quantity setting is used as the default value. You can change it, but it cannot be less than the minimum order quantity for inventory.
Maximum quantity - For scheduled kanban rules, enter the maximum product quantity to use for each kanban. The value that is entered in the Default order settings, Stock quantity, and Max. order quantity setting is used as the default value. The Maximum quantity will override the default, but it cannot be more than the stock quantity setting.
Product quantity variance - Select this check box to allow the finished product quantity to differ from the specified product quantity for each instance of a kanban job that references the kanban rule.
Variance below - Enter the quantity by which the finished product quantity can be less than the specified product quantity.
Variance above - Enter the quantity by which the finished product quantity can exceed the specified product quantity.
Alert boundary minimum - Enter the number of kanbans to define the minimum kanban quantity for each work cell or supermarket. This kanban level is visible in the Kanban quantity overview of the kanban boards. The Alert boundary minimum has the following effects:
When the number of jobs for active kanbans that are planned does not meet the specified minimum alert quantity, the background color is red instead of green. Active kanbans can have any handling unit status except Empty.
The kanban rules are sorted by planning importance, which you can calculate for active kanbans by using the following formula:
Alert boundary minimum - number of jobs that have the Status = Planned
Scheduled and event kanban rules are not displayed on the Kanban quantity overview if the following conditions are true:
Alert boundary minimum = zero
There are no active Kanbans
Alert boundary maximum - Enter the number of kanbans to define the maximum kanban quantity for each work cell or supermarket. This boundary helps you visualize excess inventory in a supermarket. It also gives a visual signal when more scheduled or event kanbans than expected are created for a kanban rule.
The kanban level is visible in the Kanban quantity overview of the kanban boards. When the number of completed jobs for active kanbans is more than the specified maximum alert quantity, the background color is red instead of green. Active kanbans can have any handling unit status except Empty.
Automatic planning quantity - To automatically plan a kanban instead of manually loading it onto a work cell, you can set an automatic planning quantity. Enter the number of unplanned jobs that cause automatic planning to occur. An unplanned kanban job has the status of Not planned.
Maximum planned jobs - When you use automatic planning of unplanned kanban jobs, enter the maximum number of kanban jobs that are planned for a specific kanban rule. Use this limit to avoid overloading a work cell for scheduled and event kanbans. This situation could occur due to false demand or exceptionally large customer orders.
The following list describes the fields on the Kanban and cards FastTab:
Card number sequence - The kanban card number sequence that is assigned to the kanban rule. When a kanban rule is created, the default number sequence from the production parameters is used.
It is a proven best practice to use unique and short number sequences for fixed circulating cards. This approach helps to identify a specific card more efficiently.
Automatic printing - Select the event that causes automatic printing of kanban cards. The options in this field are:
None - Automatic printing is not used. We recommend that you use this setting when circulating cards or electronic kanban processing is used.
Creation - Print kanbans when the kanban is created. We recommend that you use this setting when a physical planning board for event kanbans is used and circulating cards cannot be used.
Plan - Print kanbans when the first job of the kanban is planned. We recommend that you use this setting when a printed kanban card triggers the processing of kanban jobs on the shop floor.
Prepare - Print kanbans when the first job of a kanban flow is registered as prepared.
Start - Print kanbans when the first job of a kanban flow is registered as in progress.
Receive - Print kanbans when the first job of a kanban flow is registered as completed. This option is often used if batch or serial numbers of the finished items are printed on the kanban card.
Print picking list with card - Select this slider to Yes to print the picking list with the kanban card.
Print instructions - Select the information to print on the kanban card. The options in this field are:
Work instructions - Print the production instructions document that is attached to the kanban.
Shipping instructions - Print the complete ship to address and tracking information, including batch and serial numbers, on the kanban card.
Circulating cards - Select this check box to use circulating cards with the current kanban rule.
Number of active cards - Enter the number of active circulating cards that are in circulation at a given time for the kanban rule.
Card assignment - Select the method of assigning circulating cards. The options in this field are:
Automatic - When a kanban is created, a card is assigned automatically when these conditions are true: an unassigned active kanban and an unassigned active card exist for a kanban rule. This option is the default setting.
When kanbans are created before circulating cards are created, the cards are assigned automatically when the cards are created. If there is a shortage of cards, when a kanban is registered as empty, the card is automatically assigned to a new kanban. This approach is especially useful when circulating cards correspond to a limited number of conveyers, racks, or bins.
Manual - You must assign a card manually in the Kanban board. You can do this process when you prepare a kanban job.
Single use kanbans use circulating cards - For fixed quantity kanban rules, select this check box to use circulating cards with single use kanbans. When this slider is not selected, single use kanban cards are created for single use kanbans. Circulating cards are then reserved for use with kanbans that are not created for single use.
Product family and item allocation keys
Kanban rules can be set up against product families, such that those items within the product family that are represented by the kanban rule. With scheduled kanbans, these rules can be useful because the product family is represented by an item allocation key. Item allocation keys can be used so that the total forecast quantity is distributed down to the item or item dimensions based on percentages.
For example, a sales forecast line with 100 pieces is created on the item allocation key. The key contains two items with 45 percent and 55 percent, respectively. During forecast planning, a requirement line for each item number is created with 45 and 55 pieces, respectively.
Master planning > Setup > Demand forecasting > Item allocation keys
Inventory considerations for scheduled kanbans
A scheduled kanban by definition always ends at an inventory-controlled location. Therefore, a scheduled kanban rule must have a last activity that updates on-hand inventory. When you try to select a last activity that is not inventory controlled, an error message is displayed.