New Awesome Lean

Alex AnikiievTechnical Architect

AgendaThe basics of lean in AXConcepts and definitions Architecture

Setting up and generating kanbans Activities on kanban ruleReplenishment strategies

Planning and processing kanbansScheduling boardProcess boardTransfer board

Lean primerOld leanNew lean

The basics of lean in AX

Industry Summit

Concepts and definitionsActivity A single operation or a group of operations needed to provide a product or a service

Production flowA plan modeling a flow of activities needed to provide a product, service or good, from raw material to a customer

KanbanA pull signal to trigger supply for a specific demand/replenishment. Often a physical card or an electronic signal

JobA single occurrence of an activity for a specific signal (kanban)

Architecture (1 of 9)Kanban rule – A material supply policy for Lean Manufacturing

Architecture (2 of 9)Kanban rule – A material supply policy for Lean Manufacturing

Architecture (3 of 9)Kanban rule – A material supply policy for Lean ManufacturingKanban flow – One or more activities included in a kanbanActivityProduction flow

Architecture (4 of 9)Kanban rule – A material supply policy for Lean ManufacturingKanban flow – One or more activities included in a kanbanActivityProduction flowProcess Work cell – A resource group dedicated to Lean Manufacturing

Architecture (5 of 9)Kanban rule – A material supply policy for Lean ManufacturingKanban flow – One or more activities included in a kanbanActivityProduction flowProcess Work cell – A resource group dedicated to Lean ManufacturingTransfer

Architecture (6 of 9)Kanban rule – A material supply policy for Lean ManufacturingKanban flow – One or more activities included in a kanbanActivityProduction flowProcess Work cell – A resource group dedicated to Lean ManufacturingTransferKanban card – Kanban information placeholder

Architecture (7 of 9)Kanban rule – A material supply policy for Lean ManufacturingKanban flow – One or more activities included in a kanbanActivityProduction flowProcess Work cell – A resource group dedicated to Lean ManufacturingTransferKanban card – Kanban information placeholderKanban – A signal for replenishmentJob – Single occurrence of an activity for a specific signal (kanban)

Architecture (8 of 9)Kanban rule – A material supply policy for Lean ManufacturingKanban flow – One or more activities included in a kanbanActivityProduction flowProcess Work cell – A resource group dedicated to Lean ManufacturingTransferKanban card – Kanban information placeholderKanban – A signal for replenishmentJob – Single occurrence of an activity for a specific signal (kanban)

Architecture (9 of 9)Kanban rule – A material supply policy for Lean ManufacturingKanban flow – One or more activities included in a kanbanActivityProduction flowProcess Work cell – A resource group dedicated to Lean ManufacturingTransferKanban card – Kanban information placeholderKanban – A signal for replenishmentJob – Single occurrence of an activity for a specific signal (kanban)

Setting up and generating kanbans

Industry Summit

Kanban rules (1 of 4)Kanban rule A material supply policy for Lean Manufacturing

Kanban rules (2 of 4)ProcessManufacturing

Transfer Withdrawal

Kanban rules (3 of 4)Kanban flowOne or more activities included in a kanban

Production flowDescription

Activity 1

Activity 2

Activity 1

Activity 2

Activity 3

Activity 4

Activity 1

Activity 2

Kanban rules (4 of 4)FixedReplenish a box when emptyApplied to areas where demand is stable over a period of time

ScheduledMRP or planner creates kanbans based on demand or minimum stockMinimum stock event (batch job independent of MRP)Using CTP on a sales orderApplied to areas where demand is fluctuatingFor example, seasonal demand

EventProduce to order or Configure to orderTriggered by an event, for example, creation of a sales order lineApplied to areas where each kanban should cover a specific demand

Mixing replenishment strategies

Fixed kanban (1 of 5)

• Pre-created according to the needed kanban quantity

• The initial number of kanbans is defined manually or it is calculated based on the kanban quantity calculation

• When kanban is empty, a new instance of the kanban is created to replenish the consumed item

• Fixed kanbans cannot be manually firmed. As they only are re-created based on consumption

Kanban for 5 pcs

Activity (Idle)

Kanban for 5 pcs

Kanban for 5 pcs

15 pcs

Fixed kanban (2 of 5)

• Pre-created according to the needed kanban quantity

• The initial number of kanbans is defined manually or it is calculated based on the kanban quantity calculation

• When kanban is empty, a new instance of the kanban is created to replenish the consumed item

• Fixed kanbans cannot be manually firmed. As they only are re-created based on consumption

Kanban for 5 pcs

Activity (Idle)

Kanban for 5 pcs

Customer8

7 pcs

Kanban for 5 pcs

Empty

Fixed kanban (3 of 5)

• Pre-created according to the needed kanban quantity

• The initial number of kanbans is defined manually or it is calculated based on the kanban quantity calculation

• When kanban is empty, a new instance of the kanban is created to replenish the consumed item

• Fixed kanbans cannot be manually firmed. As they only are re-created based on consumption

Kanban for 5 pcs

Kanban for 5 pcs

Activity (Active)

Kanban for 5 pcs

8

Fixed kanban (4 of 5)

• Pre-created according to the needed kanban quantity

• The initial number of kanbans is defined manually or it is calculated based on the kanban quantity calculation

• When kanban is empty, a new instance of the kanban is created to replenish the consumed item

• Fixed kanbans cannot be manually firmed. As they only are re-created based on consumption

Kanban for 5 pcs

Kanban for 5 pcs

Activity (Active)

Kanban for 5 pcs

8

Kanban for 5 pcs

Fixed kanban (5 of 5)

• Pre-created according to the needed kanban quantity

• The initial number of kanbans is defined manually or it is calculated based on the kanban quantity calculation

• When kanban is empty, a new instance of the kanban is created to replenish the consumed item

• Fixed kanbans cannot be manually firmed. As they only are re-created based on consumption

Activity (Idle)

8

Kanban for 5 pcs

Kanban for 5 pcs

Kanban for 5 pcs

Event kanban (1 of 3)• One event triggers one or multiple event kanban rules

• Changes can either modify an existing event kanban (if not started), create a new event kanban or delete event kanbans

• An event kanban is always pegged to one source of demand (sales line, production BOM line, kanban line)

Event kanban (2 of 3)Manual Create an exceptional event kanban

Batch Reccuring batch job in short cycles (every 15 minutes, every hour, etc)

Automatic Event kanbans are created, updated or deleted immediatly with the event

Event kanban (3 of 3)

Manual Batch Automatic

Sales event Allowed Allowed Allowed

BOM line event Not applicable Not applicable Allowed

Kanban line event Allowed Allowed Allowed

Stock replenishment

eventNot applicable Allowed Not applicable

Scheduled kanbanAutomated creation Master planning creates scheduled kanbans for planned kanban orders in the firming fenceCTP calculation creates scheduled kanban for relevant items

Manual creationSupply schedule formManual firming of planned kanbans in the planned order formManual creation from the kanban rule

Planning and processing kanbans

Industry Summit

Kanban schedule board• Schedule

• Capacity - Loaded/Total

• Cycle time performanceindicator

• Kanban quantity Overview

• Job status symbols legend

• Kanbans colored by lean schedule groups

Kanban board for process jobs • Job list/ Sequence

• Job details

• Instructions

• Picking list

• Pegged jobs (upstream)

• Barcode mode

• Barcode input

• Finished goods overview

• Material overview

Kanban board for transfer jobs • Job list/ Sequence

• Filter

• Job details

• Picking list

• Pegged jobs (upstream)

• Barcode mode

• Barcode input

• Kanban quantity overview

Lean primer Industry Summit

Lean primerLearn more on my blogManufacturing components Manufacturing process

AlexCar

AlexFrame

Floor

Roof

2 x Side

Engine

Transmission

Welding

Assembly

Painting

Runtime

Runtime

Queue time before

Runtime

Queue time after

Old LeanSetup Multisite, Items, Operations, Work cells, Work centers and Work center groups, BOMs, Routes

Creation and Estimation Kanban, Production order

Scheduling and ExecutionHeijunka board, Sales order, Lean order schedule, Production order

CostingProduction order

New LeanSetup Released products, Resources and Resources groups, BOMs, Production flow model and Production flows, Activities, Kanban rules

Creation Kanban

SchedulingKanban schedule board

ExecutionKanban board for Process jobs, Kanban board for Transfer jobs

CostingBackflush costing calculation, Production flow

New vs. Old Quick comparisonAX 2009 AX 2012

Manufacturing kanban Manufacturing kanban (Process activity)

Replenishment kanban Withdrawal kanban (Transfer activity)

Lean order schedule Sales event kanban

Drumbeat Throughput ratio

Work cell Work cell (Resources group)

Fixed kanban Fixed quantity kanban

Target kanban Minimum stock event kanban

PTO kanban Sales event, kanban line event kanban

Heijunka board Kanban schedule board

Manufacturing kanban board Kanban board for Process jobs

Replenishment kanban board Kanban board for Transfer jobs

Tips• Do not fall for the temptation of using only one activity and one location – this will make it impossible to filter (operational issues) and cause performance issues

• Implement flow: Keep material moving, reduce security buffers, kanban sizes and batch sizes

• Implement cellular manufacturing: Group resources to work cells, remove buffer space

• Optimize system performance and user satisfaction by only registering required data. Don’t register data because you might use it one day …

• One product can have multiple active kanban rules. For example, a fixed rule and an event rule for large sales orders

• Configure production flows and activities as versions

• Use product configuration in combination with sales event kanbans

• Remember implementing lean is not just an ERP exercise!

ResourcesLearn more on Information Sourcehttps://informationsource.dynamics.com Core concepts

(Business value, How-To, Design insights, Implementation considerations)RFP Q&AServicesAvailable for all users with Partner Source or Customer Source login

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