Kanban Pull Replenishment

Kanban in Japanese means “sign” or “signal”. This system is used in where the items have a relatively stable demand and medium to high production volume.

Kanban Cards are used in a Pull based System. A pull based system is one where inventory items for a particular part or assembly area are replenished as soon as they are needed. When the items are needed, Kanban cards in Oracle Inventory change their Supply Status to Empty, and Inventory generates the Kanban replenishment request.

Kanban represents replenishment signals that are usually manual & highly visible (e.g. Color Coded Card / Empty Bin etc)

Kanban card supply status:

All Kanban cards are generated with default Card Status of Active and based on the availability of the material card status changes as designed.

The Various valid statuses of Kanban Cards are:

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.

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- organization source type, the internal requisition has been approved.

In-transit - You have received an advanced shipment notice indicating that All Kanban cards are generated with a Supply Status of New. You can change this status to Empty to trigger a Kanban replenishment signal. During initial setup, you can switch the status to Full if you are starting out with a full bin. When you are defining a card manually, you can create it with a status of Empty, Full or

New.

Kanban Source Types

The Kanban Source types identifies the type of replenishment that is required to fulfill a material requirement planning that is generated by a Kanban.

There are 4 different types of Source Types:

1. Production
2. Intra Org
3. Inter Org
4. Supplier

In this blog we are working on “Intra Org‟ source type to achieve the material movement between two different sub-inventories in fixed quantities/lots /boxes.

When the Kanban Pull Sequence Source Type is set to Intra Org, i.e. the item is to be transferred from a Subinventory within the Organization; the Kanban replenishment would result in a Replenishment Move Order generation, which would authorize the movement of the material within an Organization.

When the Source type is Intra Org, while defining the Source type, choose the Source Inventory and the locator from where you want to replenish.

Kanban Planned Items - Setup

You can specify an item to be a Kanban planned item by setting the Release Time Fence attribute in the MPS/MRP Planning Attribute Group to Kanban Item. Kanban planned items only can be used in defining a pull sequence.

Nav: Inventory -> Items->Organization Items

Kanban Pull Sequences – Setup

For every Kanban planned item, you must define a pull sequence, which is a series of Kanban locations that model the replenishment network. A Kanban location can be a Subinventory or an inventory locator. The replenishment source for a Kanban location can be another Kanban location, a production line, another organization or an outside supplier. You have the option to use locators even if the locator control is turned off at the organization, Subinventory and item levels.

Nav: Inventory -> Inventory Management -> Inventory Planning-> Kanban Management-> Pull Sequences

Select the required item and destination sub-inventory and locator.

Source - Select the source type as ‘Intra Org’ and select the source sub-inventory (In this case VMI sub-inventory). Check Auto Allocate check box to automatic allocation.

Kanban - Select Calculate option as ‘Kanban Size’ and enter the Number of cards as one (1). Enter the size of the card according to your average daily usage. Important: You need to enter the size only in multiples of your standard package qty only. Check Auto Request check box to automatic move order creation and Optionally you can enter the minimum order quantity also.

Planning – Select the lead time as one day and enter the lot multiplier value according to your standard packaging quantity.

Generate Kanban Cards

Use the Generate Kanban Cards process to automatically generate kanban cards. You can generate cards for individual pull sequences in the Pull Sequences Summary and Pull Sequences windows.

Click on ‘Generate Cards’ button to create the Kanban Card. System pops up print decision message, click on ‘Yes’.

Click on ‘Cards’ button to review the system generated the Kanban card information.

Replenish Kanban Cards

User need to scan the Kanban Card in Mobile device to initiate the replenishment process. Login to the mobile device and Navigate as below:

Whse Mgmt -> Warehousing > Inventory -> Kanban-> Replenish

A screen will be displayed as shown below:

Enter the Card Number which automatically fetches all the relevant details associated with the card.

9 Click on Replenish Button.

A message will be shown with the Move Order number created.

Assign Task:

A pending task will be created which can be viewed from the Warehouse Control Board. Assign this task to a specific user as shown below so that the user can perform it in the mobile device.

The warehouse operator needs to login to the mobile device and navigate to

Whse Mgmt > Tasks -> Directed Tasks -> Warehousing -> Replenishment.

Confirm the detail and generate a new Xfer LPN where the material should be loaded.

Click on ‘Load and Drop’ Button.

Confirm the ‘To Sub’ and ‘To Loc’ Detail and press Done button to finish the replenishment.

The transaction gets completed and the LPN LPN2A is now available in BULK subinventory. This completes the end-to-end Kanban process.