Lean Manufacturing Execution In Microsoft Dynamics AX 2012, manufacturing execution for lean manufacturing is implemented based on a job framework to plan, track, and process based on kanban pull signals. A kanban signals demand for the pull system that triggers jobs based on the production flow activities specified in the supply policies for lean manufacturing—the kanban rules. The lean manufacturing execution framework covers the complete variety of scenarios, including circulating kanbans, supermarkets, and kanban creation based on events to support build to order, assemble-to-order, and—in combination with Product Configurator—configure-to-order. THE KANBAN FRAMEWORK A kanban is an essential part of a pull system of supply, which is a critical element of lean production and supply. Kanban rules are the supply policies for lean manufacturing. They are tied to production flows as the foundation that defines the lean manufacturing organization. Kanban rules can be set up to support a variety of make-to-stock and make-to-order scenarios. The basic kanban types and replenishment strategies are shown in the following diagram. Replenishment strategy Make to Stock Kanban Type Make to Order Variable Quantity Fixed Quantity Single use Minimum On-Hand Scheduled Sales Event Component (BOM) Prod BOM Line Kanban Line Manufacturing Withdrawal KANBAN TYPES The two kanban types within Microsoft Dynamics AX 2012—Manufacturing and Withdrawal—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. 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 do not get planned as manufacturing kanbans do. MANUFACTURING WITHOUT PRODUCTION ORDERS Lean manufacturing in Microsoft Dynamics AX introduces a new job and transaction framework that allows manufacturing without production orders. CYCLE TIME PERFORMANCE INDICATOR Lean manufacturing in Microsoft Dynamics AX allows the calculation of required and actual cycle times for a specific activity. The cycle time performance indication visualizes the actual cycle time performance of a work cell on the kanban boards. SUBCONTRACTING Lean manufacturing for Microsoft Dynamics AX fully supports subcontracting of activities to vendors. KANBAN QUANTITY CALCULATION Feature overview The kanban quantity calculation is used to determine the kanban quantities for the kanban rules based on historical or actual demand. The kanban quantity calculation policy allows the configuration of the calculation formula and the periods used for the calculation. The calculation is run as a simulation that allows multiple recalculations; the results can be manually overwritten before creating the future kanban rules. KANBAN BOARD FOR PROCESS JOBS The kanban board for process jobs is the single manufacturing user interface to prepare, pick, start, and complete jobs for lean manufacturing: The kanban board provides all information and overviews related to the kanban jobs to check availability of material and priority of jobs. BARCODES All job status registrations can be supported by barcode or RFID scan by setting the scanning mode of the kanban board and scanning the kanban card number in the registration field. Scanning modes are: Prepare Start Complete Empty handling unit Select job in job list KANBAN QUANTITY OVERVIEW The kanban quantity overview controls give a visual indication on the on-hand, supply, and demand status of the kanban rules related to the selected work cell. EVENT KANBANS Event kanbans are only created out of the related demand, so event kanbans belong to the category “make-to-order.” The creation of event kanbans is initiated when certain events occur. In Microsoft Dynamics AX, these events include when you create sales lines, when estimating production orders, upon creation of upper-level kanban demand, or when reaching a certain level of on-hand inventory. PRINTING OF KANBAN CARDS AND PICK LISTS Kanban cards can be printed manually or automatically, triggered by the kanban creation or a status change of a kanban job. Kanban cards can be printed in two different styles: With production instructions With shipment information (including batch and serial numbers) Pick lists can be printed as a separate ad-hoc document out of the production flow based on the selected jobs or as an attachment to the kanban cards. INVENTORY AND WAREHOUSE MANAGEMENT INTEGRATION Lean manufacturing in Microsoft Dynamics AX fully supports tracking with batch and serial numbers for products and material. Material can be picked with output orders and shipped through shipments to remote sites or subcontractors. Kanban transfer jobs are managed by an own kanban board for transfer jobs that allows filtering on production flow activities, warehouses, and locations by source or destination—or both. Microsoft Dynamics is a line of integrated, adaptable business management solutions that enables you and your people to make business decisions with greater confidence. Microsoft Dynamics works like and with familiar Microsoft software, automating and streamlining financial, customer relationship and supply chain processes in a way that helps you drive business success. U.S. and Canada Toll Free 1-888-477-7989 Worldwide +1-701-281-6500 www.microsoft.com/dynamics CCAX2012BV075 © 2011 Microsoft Corporation