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 manufacturingthe 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, andin combination with Product Configuratorconfigure-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 2012Manufacturing and
Withdrawalare 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
destinationor both.

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Microsoft Dynamics works like and with familiar Microsoft software, automating and streamlining financial, customer relationship and supply chain processes in a way that
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CCAX2012BV075
2011 Microsoft Corporation