Fixed Kanbans in Dynamics 365 SCM with Warehouse Management
In a warehouse-managed environment, supplying production resources with small quantities of material is a common requirement. One possible solution is a Kanban flow, where the operator uses one container while the second container is replenished by the warehouse team. Once the first container is empty, it is returned to the replenishment cycle, ensuring that material is available at the resource without requiring the operator to create a warehouse request manually.
In Dynamics 365 Supply Chain Management, this process can be implemented using fixed Kanban rules in combination with Warehouse Management (WHS). The destination is defined by the activity in the production flow, whereas the source location in the main warehouse can be controlled by WHS location directives.
Configuration: Fixed Kanban Replenishment with WHS
- Navigate to Production control > Setup > Lean production flow > Value streams and create a value stream for the material supply process. The value stream provides the organisational context for the production flow and its activities. After that create a generic logistic Production flow model.
- Create the production flow with 1 transfer activity: Lean production flow > Production flows, associated with the value stream. Add a Version.
- Under the Activities button, use Create new plan activity, where in the wizard you create the transfer activity: Activity type = Transfer. The work cells are irrelevant; mark both Update on hand on receipt and Update on hand on pick.
- Choose the same “From” and “To” locations, namely the location of the resource: the activity represents the destination of the material flow. The actual source location can be determined separately by the WHS location directive.
- Enter something into the time, finish creating the activity, but then enter the Details mode and enable Auto complete by put line! This setting allows the transfer activity to be completed automatically with the last put step on the mobile device in the warehouse.
- Activate the flow version.
- Create the fixed Kanban rule: navigate to Product information management > Lean manufacturing > Kanban rules and create a rule of type Withdrawal.
- The same screw will be at more locations, potentially in containers of different sizes. Every Item-Location combination requires an own Kanban rule with a specific quantity.
- Set Replenishment strategy = Fixed. Select the transfer activity created in the previous steps as the First plan activity. This automatically populates the Receipt location of the resource. Set Register as empty = Manual.
- Specify the product and the Default quantity. This quantity defines how much material is requested when an empty container triggers replenishment i.e. the size of the box.
- Set the Fixed kanban quantity = 2 for the two-container replenishment cycle, or 1 if the replenishment is fast enough for a one-container system.
- At the bottom of the screen, you may pre-create the Kanban cards with the button + Add. Each becomes a unique barcode and a unique – and different from the barcode card number – Kanban number.
- Configure warehouse work classes and the work template: under Warehouse management > Setup > Work, create the work classes required for Kanban picking and putting, then a work template for the Kanban picking work order type with the following sequence:
- Under Warehouse management > Setup > Location directives, configure a directive for the Kanban picking work type. Use the directive query and actions to determine the source location from which the material is picked. This is where the actual warehouse source is controlled, independently of the destination defined in the production flow.
- No separate put-away location directive nor a Kanban put away work template is required for this scenario because the destination is given by the transfer activity.
- Under Warehouse management > Setup > Waves > Wave templates, configure the template used to process Kanban replenishment demand. Enable automatic wave creation and automatic release of work. Configure the remaining wave settings according to the intended processing flow.
- Test the process: scan a Kanban card on the Transfer Kanban board (Production control > Kanban > Kanban board for transfer jobs) to make it empty.
- The system creates the replenishment demand and processes the corresponding wave to generate warehouse work. The warehouse worker executes the picking and put operations, replenishing the container with the fixed quantity defined in the Kanban rule.
- After the put operation, the material is available at the resource location, and Auto complete by put line allows the transfer activity to be completed through that process: the Kanban resets and becomes Completed automatically, awaiting the new cycle.
The fixed Kanban card cycle
To summarise:
- An empty container triggers replenishment: when a container is empty, the operator scans its Kanban card on the transfer-job Kanban board in empty-container mode. This triggers the replenishment process for that card.
- The system creates the replenishment demand: the Kanban is activated, and a Kanban wave is generated. Wave processing creates the warehouse work required to pick the fixed quantity and deliver it to the destination associated with the production-flow activity.
- The warehouse replenishes the container: the warehouse worker executes the picking and put operations. The source location is determined by the WHS location directive, while the destination is defined by the production-flow activity. The quantity to be replenished comes from the fixed Kanban rule.
- The replenished container returns to the resource: once the warehouse work is completed, the container is available for use at the resource. The other container can continue to supply material while this replenishment takes place.
- The cycle repeats: when the next container becomes empty, its Kanban card triggers another replenishment cycle. The circulating cards allow the process to repeat without creating a new Kanban rule for each replenishment.
Fixed Kanban or Min/Max replenishment?
For this process, the fixed Kanban rule provides a direct connection between the production resource, the container and the replenishment quantity. The empty Kanban card is the trigger, and the Kanban rule determines the quantity to be replenished. The WHS module then generates and lets execute the warehouse work, including the determination of the source location. The machine operator is in control.
Min/Max replenishment addresses a slighty different requirement. It is a warehouse replenishment mechanism based on inventory thresholds by location (!), whereas the fixed Kanban process is driven by the consumption and replenishment cycle of a defined container. The Dynamics 365 system periodically controls the min/max levels and hopefully reacts on time, but only as well, as good the quantities in the BOM are, and as timely the workers record material consumption.
Production and Manufacturing blog series
Further reading:
Assistance and Secondary operations in D365 for SCM
Integrate APS with Dynamics 365 for SCM
D365 Mass de-reservation utility
Picking list journal: Inventory dimension Location must be specified
Consumable “Kanban” parts in D365 Warehouse management
Subcontracting with Warehouse management Part 2
Subcontracting with Warehouse management Part 1
Semi-finished goods in an advanced warehouse
The case of a missing flushing principle