Kanban is a means of supporting pull-based replenishment in manufacturing systems.
A Kanban system is a self-regulating pull system that leads to shorter lead times and reduced inventory.
Kanban systems are typically applied to items that have relatively constant demand and medium-to-high production volume.
Kanban represent replenishment signals that are usually manual and highly visible, such as a color-coded card that moves with 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.
The four types of Kanban available in the system trigger transactions that pull material from different replenishment sources.
1. Inter-Org Transfer – Replenishment through IR ISO
2. Intra-Org – Replenishment through Sub inventory transfer.
3. Production – Replenishment through WIP Job.
4. Supplier – Replenishment through purchase from external supplier.
A pull sequence is a group of information that defines a Kanban location, source information, and planning parameters for an item.
An item can have multiple pull sequences that make up a replenishment chain
Pull sequences are used to calculate the number or quantity in each Kanban container at that location.
A Kanban location can be a sub inventory or an inventory locator.
Important Pull Sequence terms
Planning Only Flag – Program Will Perform Kanban Calculations. User Can Manually Execute Kanban sequence. User cannot generate and print Kanban cards or execute the replenishment cycle.
Kanban Size and Number of Kanban Cards – Kanban cards are functionally containers .Kanban size is number of items in each Kanban container.
Minimum Order Qty -- This is used when calculating Kanban size or during the Kanban execution process to aggregate Kanban smaller than the minimum order quantity. This Field defaults from item master which can be overridden.
Replenishment Lead Time --This is how long it will take to physically replenish the Kanban.
Production Kanban use the replenishment lead time to calculate the size of the Kanban but use the Lead Times on the Item Master window to determine when to schedule jobs created by replenishing the production Kanban
Supplier and inter-org Kanban use the replenishment lead time to calculate the size of the Kanban and to schedule the "need date" for the purchase requisition
Incase Lead Time is Left Blank Kanban will use the lead time defined in the Item Master window for the "need date" on the requisition. (Need date = sysdate + pre-processing + processing + post processing time if the replenishment lead time on the pull sequence is left blank.)
Allocation Percent -- The allocation percent represents the percent of independent demand for the Kanban item that is to be supplied from this pull sequence.
Lot Multiplier -- When Kanban planning sizes the containers at the location, it will size in multiples of this quantity ex if Fixed Lot Multiplier is 10 and Requirement is 15, Kanban Will Generate a card for 20
Safety Stock Days -- Safety Stock Days is the number of day’s demand that will be added to the Kanban for safety stock.
Kanban Chain: Kanban Chain is a series of pull sequences that model the replenishment network on the shop floor. Example Sub inventory Transfer to Stores, Stores to Supplier.
Kanban cards are created for an item, sub inventory, and locator.
Kanban cards are generated with a default Card Status of Active.
If the Supply Status is full, we can temporarily pull a card out of the replenishment chain by changing the Card Status to Hold.
We can stop the usage of a card by changing the status to Cancelled Which Cannot be made Active or Hold Again.
A Cancelled Card can be deleted.
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).
Full -- The Kanban has been replenished.
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.
Non-replenishable Kanban are used to meet unexpected peaks in demand. For demand variations that are infrequent and unplanned, Oracle Flow Manufacturing allows non-replenishable kanban cards.
These cards are created for specific items in specific quantities as needed. Non-replenishable kanban cycle through the system only once, after which they are removed from production.
Points to Note While Creating Manual Kanban Cards
Replenishable and Non Replenishable KANBAN Cards Can be manually generated.
Replenishable KANBAN Card Can be Manually Created Only with Reference to Pull Sequence .
Cards can be created in EMPTY, FULL and NEW Status.
1. For Pull Sequence --MTL_KANBAN_PULL_SEQUENCES
2. For Kanban Cards -- MTL_KANBAN_CARDS
3. For Kanban Activities -- MTL_KANBAN_CARD_ACTIVITY
2. For Kanban Pull Sequence --MTL_KANBAN_PULL_SEQUENCES_V