Epicor ERP Kanban Course 10.0.700.2
Disclaimer This document is for informational purposes only and is subject to change without notice. This document and its contents, including the viewpoints, dates and functional content expressed herein are believed to be accurate as of i ts date of publication. However, Epicor Software Corporation makes no guarantee, representations or warranties with regard to the enclosed information and specifically di sclaims any applicable implied warranties, such as fitness for a particular purpose, merchantability, satisfactory quality or reasonable skill and care. As each user of Epicor Epi cor software is likely to be unique in their requirements in the use of such software and their business processes, users of this document are always advised to discuss the content of this document with their Epicor account manager. All information contai ned herein is subject to change without notice and changes to this document since printing and other important information about the software product are made or published in release notes, and you are urged to obtain the current release notes for the software product. We welcome user comments and reserve the right to revise this publication and/or make improvements or changes to the products or programs described in this publication at any time, without notice. The usage of any Epicor software shall be pursuant to an Epicor end user license agreement and the performance of any consulting services by Epicor personnel shall be pursuant to Epicor's standard services terms and conditions. Usage of the solution(s) described in this document with other Epicor software or third party products may require the purchase of licenses for such other products. Where any software is expressed to be compliant with local laws or requirements in this document, such compliance is not a warranty and is based solely on Epicor's current understanding of such laws and requirements. All laws and requirements are subject to varying interpretations as well as to change and accordingly Epicor cannot guarantee that the software will be compliant and up to date with such changes. All statements of platform and product compatibility in this document shall be considered individually in relation to the products referred to in the relevant statement, i.e., where any Epicor software is stated to be compatible with one product and also stated to be compatible with another product, it should not be interpreted that such Epicor software is compatible with both of the products running at the same time on the same platform or environment. Additionally platform or product compatibility may require the application of Epi cor or third-party updates, patches and/or service packs and Epicor has no responsibility for compatibility issues which may be caused by updates, patches and/or service packs released by third parties after the date of publ ication of this document. Epicor ® is a registered trademark and/or trademark of Epicor Software Corporation in the United States, certain other countries and/or the EU. All other trademarks mentioned are the property of their respective owners. Copyright © Epicor Software Corporation 2014. All rights reserved. No part of this publication may be reproduced in any form without the prior written consent of Epicor Software Corporation.
ED865905 90521-10-9300-58310702 10.0.700.2 Revision: July 25, 2014 2:27 a.m. Total pages: 29 course.ditaval
Kanban Course
Contents
Contents Kanban Course........................................................................................................................4 Before You Begin....................................................................................................................5 Audience.........................................................................................................................................................5 Prerequisites....................................................................................................................................................5 Environment Setup..........................................................................................................................................5 Workshop Constraints..............................................................................................................................6
Kanban Overview...................................................................................................................7 Part Warehouse / Part Warehouse Bin Parameters............................................................................................9 Kanban Requests...........................................................................................................................................10 Production Kanban Requests..................................................................................................................10 Purchase Kanban Requests.....................................................................................................................10 Stock Kanban Requests...........................................................................................................................11 Kanban Examples...........................................................................................................................................12 Establish Part Details...............................................................................................................................12 Receive Kanban Requests........................................................................................................................12 Send Request to Replenish Stock............................................................................................................14
Application Setup.................................................................................................................15 Company Configuration................................................................................................................................15 Workshop - Review a Company Kanban Prefix........................................................................................15 Site Configuration Control.............................................................................................................................16 Workshop - Review a Site Kanban Prefix.................................................................................................16 Kanban Type Maintenance.............................................................................................................................17 Workshop - Review Kanban Types..........................................................................................................18
Daily Kanban Processing......................................................................................................19 Define Kanban Values on Part Records...........................................................................................................19 Workshop - Link Purchase Kanban Replenishment Type to a Part............................................................19 Workshop - Link Production Kanban Replenishment Type to a Part.........................................................20 Workshop - Link Stock Kanban Replenishment Type to a Part.................................................................20 Kanban Warehouse Monitor..........................................................................................................................21 Workshop - Review Kanban Requests.....................................................................................................21 Purchase Order Entry.....................................................................................................................................23 Workshop - Enter a Purchase Order........................................................................................................23 Workshop - Link Kanban to a Purchase Order.........................................................................................24 Workshop - Review the Kanban Warehouse Monitor..............................................................................24 Kanban Receipts Entry...................................................................................................................................25 Workshop - Enter a Kanban Receipt........................................................................................................26 Workshop - Review the Kanban Warehouse Monitor..............................................................................26 Time and Expense Entry.................................................................................................................................27 Workshop - Review Time Against the Kanban Job...................................................................................27
Conclusion.............................................................................................................................28
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Kanban Course
Kanban Course
Kanban Course This course explains the concept behind Kanban, provides an overview of the required setup, and identifies how Kanban is applied within the Epicor application. Upon successful completion of this course, you will be able to: •
Set up the kanban types you need for your manufacturing process.
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Define Kanban Values on Part Records.
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View future demand to dynamically calculate future replenishment kanban records with the manufacturing flow kanban. Reduce on-hand inventories as parts are electronically triggered for replenishment as needed with real-time manufacturing kanban records. Enter a Kanban Receipt.
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Kanban Course
Before You Begin
Before You Begin Read this topic for information you should know in order to successfully complete this course.
Audience Specific audiences will benefit from this course. •
Shop Floor Employee
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Shop Floor Manager
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Production Manager
Prerequisites To complete the workshops in this course, the necessary modules must be licensed and operating i n your training environment. For more information on the modules available, contact your Epicor Customer Account Manager at
[email protected]. It is also important you understand the prerequisite knowledge contained i n other valuable courses. •
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Navigation Course - This course introduces navigational aspects of the Epicor application's user interface. Designed for a hands-on environment, general navigation principles and techniques are available at each of the interface levels in the Epicor appl ication - system, module, and program. Workshops focus on each of these levels and guide you through each navigational principle introduced. Knowledge Camp Course - This course provides a high level overview of the quote to cash flow through the Epicor 9.05 application. You begin with how to create a quote, process it as an order, and fill the order across production planning and purchasing. The course also covers the manufacturing plan and shipment of parts to a customer, as well as how to process invoices, enter cash receipts, and generate supplier payments. Inventory Management Course - This course provides an overview of the i nventory management process. Use this module to update and maintain raw materials, work in process (WIP), as well as fini shed goods inventory quantities and costs.
Environment Setup The environment setup steps and potential workshop constraints must be reviewed in order to successfully complete the workshops in this course. Your Epicor training environment, in which the Epicor demonstration database is found, enables you to experience Epicor functionality in action but does not affect data in your live, production environment. The following steps must be taken to successfully complete the workshops in this course.
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Before You Begin
1.
Kanban Course
Verify the following or ask your system administrator to verify for you: •
Your Epicor training icon (or web address if you are using Epicor Web Access) points to your Epicor training environment with the Epicor demonstration database installed. Do not complete the course workshops in your live, production environment. Note It is recommended that multiple Epicor demonstration databases are installed. Contact Support or Systems Consulting for billable assistance.
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The Epicor demonstration database is at the same service pack and patch as the Epicor application. Epicor's education team updates the Epicor demonstration database for each service pack and patch. If your system administrator upgrades your Epicor application to a new service pack or patch, he or she must also download the corresponding Epicor demonstration database from EPICweb > Support > Epicor > Downloads and install it. If this is not performed, unexpected results can occur when completing the course workshops. Your system administrator restored (refreshed) the Epicor demonstration database prior to starting this course. The Epicor demonstration database comes standard with parts, customers, sales orders, and so on, already defined. If the Epicor demonstration database is shared with multiple users (that is, the database is located on a server and users access the same data, much like your live, production environment) and is not periodically refreshed, unexpected results can occur. For example, if a course workshop requires you to ship a sales order that came standard in the Epicor demonstration database, but a different user already completed this workshop and the Epicor demonstration database was not restored (refreshed), then you will not be able to ship the sales order. Epicor's education team has written the course workshops to minimize situations like this from occurring, but Epicor cannot prevent users from manipulating the data in your installation of the Epicor demonstration database.
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Log in to the training environment using the credentials manager/manager. If you are logged in to your training environment as a different user, from the Options menu, select C hange User.
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From the Main menu, select the company Epicor Education (EPIC06).
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From the Main menu, select Main.
Licenses •
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Job Management license required for kanban functionality. Advanced Material Management (AMM) license required for kanban to display in the Material Request Queue. Material Requirements Planning (MRP) license required for kanban functionality to generate supply and demand records.
Workshop Constraints The workshops in this course can be performed only once in each instance of a restored (refreshed) database. If a user has already completed these workshops in the database, the database must be restored (refreshed) before another user can complete this course.
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Kanban Overview
Kanban Overview Kanban is a Japanese term that means card (Kan) and signal (Ban). It is a system that uses cards, or requests, to move parts from one area to another on a production line. Using visual aid cards instead of system-generated work orders helps to reduce production costs by controlling inventory. The Kanban concept means a supplier or a warehouse only delivers parts to the production lin e precisely when particular parts are needed, so there is no storage in the production area. Since parts are used right away, inventory stock and work in process (WIP) are reduced. Likewise, kanban regulates manufacturing, as only the part quantities listed on the kanban requests are produced. This helps reduce the chance of overproduction and excess inventory. Kanban limits how much inventory is in the production process. The kanban system becomes the authority through which inventory is produced. Because these requests come directly from resources, employees control the production process. Employees become responsible for making sure that the materials they need are available when they need them. This system ultimately is a chain in which orders flow from one resource to another, causing components to be pulled to the production line. This strategy is the reverse of more traditional forecast methods, where components are instead pushed to the production line and often wait in storage. The Kanban system controls WIP, production, and inventory flow. Resources on the production line only produce components when they receive a kanban request. This request contains all the information on a product at each stage of manufacturing; it also indicates which parts need to be pulled for the next stage of the process. The core records required to implement this system are kanban types. These types define the action required when a quantity is requested on the production line. Stock kanban types can also be set up to generate requests on the Material Request Queue in the Advanced Material Management (AMM) module. The kanban functionality complements the Material Requirements Planning (MRP) functionality as well. First, you use MRP to create jobs for the requirements planning. The kanban procedures maintain the stock quantities you need on these repetitive jobs. The shop floor personnel then completes the jobs and use Kanban Receipts to update inventory quantity and locations. The Kanban Process flow is as follows:
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Kanban Overview
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Kanban Course
Kanban Overview
Part Warehouse / Part Warehouse Bin Parameters Use the Part Maintenance > Part > Sites > Warehouse > Detail sheet or the Part Maintenance > Part > Sites > Warehouse > Bin Information > Detail sheet to define parameters that designate how the quantity requirements for the part should be replenished in specified warehouses (or warehouse bins) using the Kanban functions in the Epicor application. These functions use the defined parameters to monitor on-hand inventory balances for the part at the warehouse (or warehouse bin) levels. These parameters include: •
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Specifying the warehouse (or warehouse bin) being replenished. Assigning a Kanban type code (Production, Purchased or Stock) that indicates the type of replenishment taking place for the part in the designated warehouse or warehouse bin. Specifying minimum, maximum, safety and Kanban quantities. Depending on the specified Kanban type code, designating the site, the purchase/line order or the supplying warehouse/bin that are the supply sources for the Kanban replenishment inventories.
The parameter fields: •
Initial / Minimum Qty - Indicates the minimum quantity that must be on-hand for this part in a specific warehouse (or warehouse bin). When the existing on-hand quantity for this part in this warehouse (or warehouse bin) falls below this minimum quantity, the Epicor application generates a Kanban request. Important It is important to note that Kanban is triggered only when the current On-Hand Quantity value in the warehouse or warehouse bin drops below the Minimum Quantity value setting when you established the Kanban record, no Kanban request is triggered. The Epicor application uses these values, in conjunction with the Kanban type, to generate kanban requests. The next topic describes the different types requests.
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Threshold / Safety Qty - Indicates the threshold / safety quantity needed in stock in this warehouse bin to cover requirements until a shipment arrives from the supplier. If the on-hand quantity in the warehouse bin falls below this limit, you may run out of material before the next shipment arrives. The Time Phased Material Requirements report uses this value as a selection option to show all parts that are under this quantity. Replenish / Kanban Qty - Designates the Kanban batch quantity for this part in a specific warehouse (or warehouse bin). For example, if you replenish in batches of 50 units at a time, enter 50 into this field. When the Epicor application generates a Kanban request, it calculates the move quantity in increments of the value you enter in this field. For example, if a quantity of 75 units is needed to replenish the warehouse, it generates a Kanban request for a quantity of 100 (2 x 50) to cover the requirement. Maximum Qty - Indicates the maximum quantity that should be on-hand for this part in this warehouse (or warehouse bin). It is the quantity to which this warehouse should be filled when the Epicor application generates Kanban requests. Important When replenishing inventory at the warehouse level, the designated supply warehouse (in a part warehouse or part warehouse bin record) must be different than the destination warehouse you specify in the Warehouse field. Example If you are defining parameters for Part A in Warehouse 1, you will not be able to specify Warehouse 1 as the supply warehouse. For proper Kanban or replenishment generation processing, they must be different from each other. This is not appl icable when replenishing inventory at the warehouse bin level; the supply bin can also be located within the same warehouse.
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Kanban Overview
Kanban Course
Kanban Requests The type of Kanban request that the Epicor appl ication generates (Production, Purchase or Stock) and how it is fulfilled, is dependent on the Kanban type assigned to part records at the warehouse (or warehouse bin) levels in the Replenishment Type field in the Part Maintenance > Part > Sites > Warehouse > Detail or Part Maintenance > Part > Sites > Warehouse > Bin Information > Detail sheets. When the Epicor application generates automatic Production, Purchase or Stock Kanban requests, it either updates an existing MtlQueue transaction record (if one already exists for the identical part/lot/warehouse/bin combination), or creates a new one. Note You can monitor generated Kanban records at either the warehouse level, using the Kanban Warehouse Monitor, or at the bin level, using the Kanban Bin Monitor. You do this by first assigning a kanban type to the warehouse or bin defined on the part record.
Production Kanban Requests The Production Kanban type designates that production Kanban requests be generated for the part to which this Kanban type is assigned. The Epicor application uses the Site field as specified in the part warehouse or part warehouse bin record to select the source site that manufactures the replenishment inventory for the part. The kanban functionality complements the Material Requirements Planning (MRP) functionality as well. First, you use MRP to create jobs for the requirements planning. The kanban procedures maintain the stock quantities you need on these repetitive jobs. The shop floor personnel then completes the jobs and uses Kanban Receipts to update inventory quantity and locations. These receipts also update the production quantity on unfirm MRP jobs; this makes sure that material requirements planning is synchronized to actual demand.
Purchase Kanban Requests The Purchase Kanban type designates that a new release is being generated on the purchase order to which the replenishment is linked. The Epicor application uses the following parameters defined in the part warehouse or part warehouse bin record: •
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PO - Specifies the purchase order number to which the detail line item is linked for replenishment of the associated warehouse. The specified purchase order must have been entered into Purchase Order Entry and must contain the part number for which a Kanban request is being generated. Line - Specifies the line number of the detail record on the purchase order being used for replenishment of this warehouse. This number uniquely identifies the record within the purchase order number. The specified purchase order must have been entered into Purchase Order Entry and must contain the part number being defined in Part Maintenance.
The Epicor application compares the purchase order and the detail li ne against the warehouse or bin information specified in the part warehouse (or part warehouse bin record). Because more quantity is needed, the kanban functionality removes the approval from the purchase order. It then creates a new release by using the next open release number on the purchase order detail line. The Due Date value will equal the current date; it uses the Kanban quantity defined in the part warehouse (or part warehouse bin) record to calculate the request quantity. Logic Supplier Request Quantity = ((Maximum Quantity - On-Hand Quantity)/Kanban Quantity) x Kanban Quantity
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Kanban Overview
Note The following parameters have been defined at the part warehouse bin level: •
Initial / Minimum Qty - 100
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Threshold / Safety Qty - 100
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Replenish / Kanban Qty - 50
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Maximum Qty - 400
Example If the current on-hand inventory balance for the part is 75, the purchase order release quantity that displays is 300. This is calculated by subtracting 75 from 400, which equals 325. When this number is divided by the Kanban Quantity, the purchase order release quantity becomes 300. This value, added to the 75 current on-hand inventory quantity, keeps the total amount below the 400 Maximum Quantity.
Stock Kanban Requests The Stock Kanban type designates that stock move requests be generated for the part to which this Kanban type is assigned. To determine if there is adequate supply stock available for generation of a Kanban request, the Epicor application uses the following parameters defined in the part warehouse or part warehouse bin record: •
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Supply Warehouse - Designates the warehouse from which inventory is being withdrawn for replenishment of the part in the designated destination warehouse (or warehouse bin). Supply Bin - Designates the warehouse bin that contains an on-hand supply quantity from which inventory is being withdrawn to replenish the part in the designated destination warehouse (or warehouse bin). Note If you selected a supply warehouse, but did not specify a supply bin in the Supply Bin field, the Epicor application considers the total inventory in the supply warehouse as available replenishment stock. However, if you specified both a supply warehouse and a supply bin, the Epicor application searches for available replenishment stock in the designated supply bin only. Note If your Epicor application is configured and licensed with the Advanced Material Management module, and if the Create transaction on the Material Queue check box has been selected in Kanban Type Maintenance for the assigned Kanban type, the application creates a stock request (MtlQueue record) that has a transaction type of STK-STK. The quantity on the stock request is the difference between the Maximum Quantity and the On-Hand Quantity.
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Kanban Overview
Kanban Course
Kanban Examples A typical Kanban workflow uses visual cues, such as physical cards, to signal that inventory needs to move from one location to another. These examples describes how inventory requests flow through a warehouse using the kanban method.
Establish Part Details Use Part Maintenance to create the part, 38FW (a 3/8" flat washer), which is a stock part located in a bin. You enter the part details which include a Maximum On-Hand Quantity of five, which means no more than five kanbans can exist in the bin. You al so enter a Minimum On-Hand Quantity of two, which means at least two kanbans are always needed in the bin. For this example, the warehouse bin has five kanbans of part 38FW, which look similar to the following:
Receive Kanban Requests Use the KanbanBin Monitor to track requested part quantities for the current day. The monitor report shows that a job for parent part DCD-100-SP (a Frame Rail that requires part 38FW), is currently being manufactured out on the shop floor. The appli cation determines that the job needs more stock quantity of part 38FW, so it automatically creates a kanban request. When this request is received, a kanban is removed from the bin. The bin with five kanbans looks similar to the following when the request is received. After the request is filled, four kanbans remain in the bin.
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Kanban Overview
Now a second request for 38FW is received and another kanban is removed from the bin. The bin with kanbans looks similar to the following, now with three remaining kanbans.
A third request is received and another kanban is removed from the bin. The bin with kanbans looks similar to the following, now with only two remaining kanbans.
Because the bin now only has the Minimum On-Hand Quantity of two remaining kanbans, the application sends a warning that it is time to replenish stock of part 38FW.
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Kanban Overview
Kanban Course
Send Request to Replenish Stock When the warning is received, a stock request is created to replenish the difference between the Maximum On-Hand Quantity and the On-Hand Quantity. The stock request is for three kanbans.
The cycle of requests for kanbans continues so that the kanban stock is always between the minimum and maximum quantity. If over time, less quantity is needed, you can reduce the maximum quantity of kanbans required for the part.
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Kanban Course
Application Setup
Application Setup This section of the course reviews the setup of maintenance programs that affect the overall usage of Kanban.
Company Configuration Use Company Configuration to define the module options for companies in the Epicor application. Use these options to define how this company will interact with the module licensed for it. When you install the Epicor application, one company record is created by default. You first use Company Maintenance to define overall options like email setup, document attachments, and external BAQ sources. You then use Company Configuration to define how the company interacts with the various modules you have licensed. Tip You can purchase a Multi-Site license that enables you to set up multiple companies within Company Configuration. To do this, first create the company within the Epicor Administration Console. You can then display the new company in this program and configure it as necessary. Menu Path
Navigate to this program from the Main Menu: •
System Setup > Company/Site Maintenance > Company Configuration
Workshop - Review a Company Kanban Prefix Use Company Configuration to define the prefix used on all Kanban job identifiers. These values are the default prefixes used on jobs suggested by the kanban functionality. In this workshop, review the current company kanban prefix. Navigate to Company Configuration. Menu Path: System Setup > Company/Site Maintenance > Company Configuration 1. Navigate to the Modules > Production > Job sheet. 2. In the KanBan Prefix field, enter or verify KB displays. 3. Click Save. 4. Exit Company Configuration.
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Site Configuration Control Use Site Configuration Control to define how each site interacts with various functions in the Epicor application such as the Inventory Management, Production Management, Shipping/Receiving, Time Management, and Expense Management modules. You first create site records through Site Maintenance. You can then open each record within Site Configuration Control to define parameters for several application functions. Important Before you can open a site record in Site Configuration Control, you may need to have your System Administrator give you security rights to that site in your user account. •
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Within Inventory Management, you define the warehouses the site uses for shipping, receiving, DMR Processing, and so on. You also indicate which warehouses are shared with other warehouses. You also define transfer orders by setting up the definitions for transferring part quantities and the resources involved in transfer orders. Lastly, you define the serial tracking and cycling counting used for parts manufactured through each site. The Production Management settings involve defining the prefixes used on unfirm, firm, and kanban jobs at the site. You can also define some production yield parameters. For the Shipping/Receiving functionality, you enter the various manifests this site uses for general, international, FedEx, and UPS shipping. You also define how shipment billing is handled by the current site. You use the Advanced Material Management (AMM) settings to specify default parameters for fulfillment allocation processing, and to indicate how the site interacts with the Material Request Queue and other AMM functionality. The Time and Expense settings determine whether labor hours and/or incurred expenses entered by employees require approval by other authorized employees. If approval is required, you also define approver rights to change or delete transactions, the methods used to approve time entries and expense entries, and the default workflow groups to use for time entries and expense entries when they are unspecified for employees.
Menu Path
Navigate to this program from the Main Menu: •
System Setup > Company/Site Maintenance > Site Configuration Important This program is not available in the Epicor Web Access.
Workshop - Review a Site Kanban Prefix A KanBan prefix is also defined for the site that processes kanban requests. In this workshop, review the current site kanban prefix. Navigate to Site Configuration Control. Menu Path: System Setup > Company/Site Maintenance > Site Configuration Important This program is not available in the Epicor Web Access.
1. In the Site field, search for and select Main. 2. Navigate to the Modules > Production Management sheet.
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Application Setup
3. In the KanBan Prefix field, enter or verify KBP displays.
The Epicor application will use these prefixes when it generates kanban requests and jobs. 4. Click Save. 5. Exit Site Configuration Control.
Kanban Type Maintenance Use Kanban Type Maintenance to define the specific types of Kanban and distribution replenishment move requests the Epicor application should generate. You then select and assign Kanban types to part records at the warehouse (or warehouse bin) levels using the Part Maintenance > Part > Sites > Warehouse > Detail or Part Maintenance > Part > Sites > Warehouse > Bin Information > Detail sheets. The Epicor application uses Kanban type codes in Kanban processing (which is a production replenishment function), and the Replenishment Workbench, which is a distribution replenishment function. •
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Based on the parameters defined for the Kanban type assigned to a part, the Epicor application generates a Kanban or replenishment move request. This specific type of transaction, and how it is generated is based on the Action type assigned to the Kanban type code. These include Kanban-related actions ( Production, Purchase or Stock) and Replenishment Workbench-related actions ( Whse/Bin Replenishment (Auto) or Whse/Bin Replenishment (Manual)). Tip To learn how to set up and use the Kanban and Replenishment Workbench functionality, review the Kanban Implementation, Replenishment Workbench Implementation and Replenishment Workbench topics. To learn how you assign Kanban types on each part record, read the Part Maintenance > Part > Sites > Warehouse > Detail and Part Maintenance > Part > Sites > Warehouse > Bin Information > Detail topics. Note Once Kanban type codes have been defined and then assigned to part records (at the warehouse or warehouse bin level), future changes made in Kanban Type Maintenance to previously assigned codes are not propagated to the associated part records. •
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For example, if you create a Kanban Type code and select Purchase in the Action field, assign it to part records, and then change the Action field in Kanban Type Maintenance to Stock at a future time, this change is not reflected in the associated part records. With respect to the replenishment and Kanban functionality, the parts continue to be processed i n the same manner they were before the operating parameters of the Kanban type code were changed. The best practice in this situation is to create a new Kanban type code with new parameters, and then assign the new code to part records using the Replenishment Type field in the Part Maintenance > Part > Sites > Warehouse > Detail or Part Maintenance > Part > Sites > Warehouse > Bin Information > Detail sheets.
Menu Path
Navigate to this program from the Main Menu: •
Material Management > Inventory Management > Setup > Kanban Type
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Production Management > Job Management > Setup > Kanban Type
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Workshop - Review Kanban Types In this workshop, review the existing kanban types. Navigate to Kanban Type Maintenance. Menu Path: Production Management > Job Management > Setup > Kanban Type 1. Click the Type button.
The Kanban Type Search window displays. 2. Click Search. 3. Click Select All and click OK.
In the tree view, Kanban Types display. 4. From the tree view, select the Production-Flow kanban type.
Notice its Action value is set to Production. Parts linked to this kanban type generate production requests when their On-Hand Quantity values drop below their Minimum Quantity values. 5. From the tree view, select the Purchase KanBan kanban type.
This kanban type's Action value is set to Purchase. Parts linked to this kanban type generate purchase requests when their On-Hand Quantity values drop below their Minimum Quantity values. Notice the Update PO release schedule check box is selected. This indicates the Epicor application recalculates a purchase order release dates when a purchase kanban generates a new release on the PO. 6. From the tree view, select the Transport-Stock kanban type.
This kanban type's Action value is set to Stock. Parts linked to this kanban type generate stock requests when their On-Hand Quantity values drop below their Minimum Quantity values. Notice the Add new Material record to queue check box is selected. This indicates the Epicor application creates a new material record in the Material Request Queue. 7. Click Save. 8. Exit Kanban Type Maintenance.
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Daily Kanban Processing
Daily Kanban Processing This section of the course reviews Kanban processing that takes pl ace during a typical work day.
Define Kanban Values on Part Records Use Part Maintenance to define the Kanban Quantity, Minimum Quantity, and Maximum Quantity values on each part. You also indicate the kanban type used on this specific part. You can enter kanban values at either the Warehouse or Bin levels. To define these values at the Warehouse level, you enter the kanban values on the Part > Sites > Warehouses > Detail sheet. To define these values at the Bin level, you enter the kanban values on the Part > Sites > Warehouse > Bin Information > Detail sheet. These values include: •
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Specifying the warehouse (or warehouse bin) being replenished. Assigning a Kanban type code (Production, Purchased or Stock) that indicates the type of replenishment taking place for the part in the designated warehouse or warehouse bin. Specifying minimum, maximum on-hand and safety stock quantities. Designating the supplying warehouse/bin or purchase/line order that are the sources for the replenishment inventories.
Workshop - Link Purchase Kanban Replenishment Type to a Part In this workshop, link a purchase kanban replenishment type to part 10C1. Navigate to Part Maintenance. Menu Path: Material Management > Purchase Management > Setup > Part 1. In the Part field, enter 10C1 and press Tab. The part record for 10C1 displays; this record is for a purchased part you use in your manufacturing process. 2. Navigate to the Part > Sites > Detail sheet.
Notice the part record has a record set up for the Main site. 3. Navigate to the Part > Sites > Warehouses > Detail sheet. 4. In the Replenishment Type field, select Purchase KanBan. 5. In the Initial/Minimum Qty field, enter 250.00.
This field indicates the minimum quantity that must be on-hand for this part in a specific warehouse (or warehouse bin). 6. In the Maximum Qty field, enter 1,000.00.
This field indicates the maximum quantity that should be on-hand for this part in this warehouse (or warehouse bin). 7. In the Replenish/Kanban Qty field, enter 50.
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Daily Kanban Processing
Kanban Course
Designates the Kanban batch quantity for this part in a specific warehouse (or warehouse bin). Each kanban record uses this quantity. 8. Click Save.
Now whenever the current on-hand quantities for these parts fall bel ow their minimum quantity values, the Epicor application generates kanban records. 9. Remain in Part Maintenance for the next workshop.
Workshop - Link Production Kanban Replenishment Type to a Part In this workshop, link a production kanban replenishment type to part CA10. 1. Navigate to the Part > Detail sheet. 2. In the Part field, enter CA10 and press Tab. 3. Navigate to the Part > Sites > Detail sheet.
Notice the part record has a record set up for the Main site. 4. Navigate to the Part > Sites > Warehouses > Detail sheet. 5. Enter the following kanban values: Field
Data
Replenishment Type
Production-Flow
Initial/Minimum Qty
100
Maximum Qty
500
Replenish/Kanban Qty
50
6. Click Save. 7. Remain in Part Maintenance for the next workshop.
Workshop - Link Stock Kanban Replenishment Type to a Part In this workshop, link a stock kanban replenishment type to part 00M3A. 1. Navigate to the Part > Detail sheet. 2. In the Part field, enter 00M3A and press Tab. 3. Navigate to the Part > Sites > Detail sheet.
Notice the part record has a record set up for the Main site. 4. Navigate to the Part > Sites > Warehouses > Detail sheet. 5. Enter the following kanban values:
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Field
Data
Replenishment Type
Transport - Stock
Initial/Minimum Qty
50
Maximum Qty
500
Replenish/Kanban Qty
50
6. Click Save. 7. Exit Part Maintenance.
Kanban Warehouse Monitor The Kanban Warehouse Monitor displays information about current kanban records in a dashboard format. This includes information such as the requested part quantities, analysis of the kanban records, and request details for the current day. Menu Path
Navigate to this program from the Main Menu: •
Material Management > Inventory Management > General Operations > Kanban Monitor
•
Production Management > Job Management > General Operations > Kanban Monitor
Workshop - Review Kanban Requests In this workshop, review kanban production, supplier, and stock requests. Navigate to the Kanban Monitor. Menu Path: Production Management > Job Management > General Operations > Kanban Monitor 1. The Kanban Warehouse Monitor populates with current kanban information. 2. Verify the Kanban Controlled Items > By Item sheet displays. 3. In the By Item grid, in the Part Number column, select part CA10.
The record is highlighted in yellow as there are already on-hand quantities in stock. 4. Navigate to the Production Requests sheet.
In the Production Requests grid, part CA10 displays. These requests identify when a production kanban has a minimum quantity that is greater than the on-hand quantity for the part. Because the current quantity is below the minimum quantity for the part, a request is generated. 5. In the No Of Kanbans column, verify 9 displays. 6. In the Kanban Qty column, verify 50 displays.
This is the value entered previously in the part master file for part CA10.
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7. In the Qty Required column, verify 480 displays.
There are 20 units of part CA10 in stock and the maximum quantity defined in the part master file for part CA10 was 500 units. The application subtracts the current on-hand quantity from the maximum quantity. 8. In the Kanban Controlled Items > By Item sheet, in the By Item grid, select part 00M3A.
The record is highlighted in red as there are no on-hand quantities in stock. 9. Navigate to the Stock Requests sheet.
In the Stock Requests grid, part 00M3A displays. These requests identify when a stock kanban has a minimum quantity that is greater than the on-hand quantity for the part. Because the current quantity is below the minimum quantity for the part, a request is generated. 10. In the No Of Kanbans column, verify 10 displays. 11. In the Kanban Qty column, verify 50 displays.
This is the value entered previously in the part master file for part 00M3A. 12. In the Qty Required column, verify 500 displays. 13. In the Kanban Bin Monitor > Kanban Controlled Items > By Item sheet, in the By Item grid, select part 10C1.
The record is highlighted in red as there are no on-hand quantities in stock. 14. Navigate to the Supplier Requests sheet.
In the Supplier Requests grid, part 10C1 displays. These requests identify when a purchase kanban has a minimum quantity greater than the on-hand quantity for the part. Because the current quantity i s below the minimum quantity for the part, a request generates. 15. In the No Of Kanbans column, verify 20 displays. 16. In the Kanban Qty column, verify 50 displays.
This is the value entered previously in the part master file for part 10C1. 17. In the Qty Required column, verify 1000 displays.
You should refresh this dashboard periodically to manage the progress on these kanban requests. 18. Exit Kanban Warehouse Monitor.
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Purchase Order Entry Use Purchase Order Entry to enter and print new purchase orders and to change existing orders. •
•
To print the purchase order open in the program, on the Standard toolbar, click the Print button, or from the File menu, select Print. To mass print multiple purchase orders, from the program's Actions menu, select Mass Print.
If you have the Epicor application set up to handle consolidated purchasing and are logged into the central purchasing company, you can create consolidated purchase orders in this program. For more information, refer to the Consolidated Purchasing topic in the Application Help. Menu Path
Navigate to this program from the Main Menu: •
Material Management > Purchase Contracts Management > General Operations > Purchase Order Entry
•
Material Management > Purchase Management > General Operations > Purchase Order Entry
Common Functions
Following are the common Purchase Order Entry functions: To
Do This
Add, edit, or delete a Memo for the current record
From the Actions menu, select Memo, or on the Standard toolbar, click Memo.
Review, add, edit, or delete Attachments for the current record
From the Actions menu, select Attachments, or on the Standard toolbar, click Attachments.
Review the Change Log for the current record From the Actions menu, select Change Log, or on the Standard toolbar, click Change Log.
Workshop - Enter a Purchase Order The Kanban monitor indicated a supplier request of 1000 units for part 10C1. In this workshop, enter a purchase order for part 10C1. Navigate to Purchase Order Entry. Menu Path: Material Management > Purchase Management > General Operations > Purchase Order Entry 1. From the New menu, select New PO. 2. In the Supplier field, search for and select A-Z Metals. 3. Navigate to the Lines > Detail sheet. 4. From the New menu, select New Line. 5. In the Part/Rev field, enter 10C1 and press Tab. 6. In the Our Qty field, enter 1000 and press Tab.
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7. In the Unit Price field, enter 5. 8. In the Due Date field, select the date two weeks from today. 9. Click Save. 10. Navigate to the Summary sheet. 11. Record the purchase order number_________. 12. Select the Unapproved check box.
The Approved status displays. 13. Click Save and exit Purchase Order Entry.
Workshop - Link Kanban to a Purchase Order In this workshop, link the purchase order entered in the Workshop - Enter a Purchase Order to the warehouse for part 10C1. Navigate to Part Maintenance. Menu Path: Production Management > Job Management > Setup > Part 1. In the Part field, enter 10C1 and press Tab. 2. Navigate to the Part > Sites > Warehouses > Detail sheet. 3. In the Supply pane, in the PO field, enter the purchase order number created in the Workshop - Enter a Purchase Order and press Tab. 4. In the Line field, enter 1 and press Tab. 5. Click Save.
The kanban warehouse has been linked to this purchase order. 6. Exit Part Maintenance.
Workshop - Review the Kanban Warehouse Monitor In this workshop, review part 10C1 in the Kanban Warehouse Monitor. Navigate to the Kanban Monitor. Menu Path: Production Management > Job Management > General Operations > Kanban Monitor 1. The Kanban Warehouse Monitor populates with current kanban information. 2. Verify the Kanban Controlled Items > By Item sheet displays. 3. In the By Item grid, in the Part Number column, select part 10C1. 4. Navigate to the Supplier Requests sheet.
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5. On the Standard toolbar, click Refresh.
The PO and PO Line columns display the purchase order you l inked to the kanban warehouse in the Workshop - Link Kanbans to a Purchase Order. 6. In the PO column, right click and select Open With > PO Entry. Purchase Order Entry displays. Tip You can now enter the PO releases you need to satisfy the kanban purchase requests. As you receive part quantities from this supplier, the Kanban Warehouse Monitor updates with these requests. When you receive enough quantity above the Minimum Quantity defined on the bin, the part's listing on the By Item grid are no longer red, indicating you have enough On-Hand Quantity available for this part. The purchase order needs to be unapproved before new releases are created.
7. Exit Purchase Order Entry. 8. Exit the Kanban Warehouse Monitor.
Kanban Receipts Entry Use Kanban Receipts Entry to enter information about quantities, scrap, and non-conformances for a particular part number. Leverage this program to quickly create a job based on production kanban requests generated by the Epicor application. Once the part in entered and quantities defined, the Epicor applicatio n generates a job, pulls methods, backflushes all materials and labor to complete and close the job. This program also includes any subassembly that uses bills of material (BOMs). It then adds the good quantity to Finished Goods inventory, enters the scrap pieces, and moves discrepant pieces into Quality Assurance (QA) inspection. Example Typically a production worker first reviews the Kanban Warehouse or Kanban Bin Monitors to see any production kanban requests. Based on the production quantity requirement he or she initiates production for the required part. At the end of the working day, or once full job production quantities are complete, the production worker enters a new kanban receipt with defined produced part details together with production and scrap quantities. As soon as the kanban receipt is submitted, a new job is automatically generated and closed, labor entered against the job, and the Kanban Warehouse or Kanban Bin Monitors updated.
Kanban Receipts also handles processing of lower level lot tracked component and phantom BOM parts. The top level assembly parts themselves can be non-tracked, lot tracked or serial number tracked. •
•
If the top level assembly contains a bill of materials with one of more lot tracked components, a Lower Level Job Materials window displays after you click Update in Kanban Receipts. Lower Level Job Materials prompts for entry of lot numbers for each of the lot tracked components. If the specified lot does not have enough quantity to fulfill the required Kanban quantity, you must enter multiple lot numbers to cover the requirement. Note If the method of manufacturing defined for the specified assembly part contains lower level components (materials or subassemblies) that are flagged as serial tracked, Kanban Receipts does not create a job or material transactions for that assembly. If one of the components is a serial tracked, a message displays stating that the top level assembly part itself cannot be used in Kanban receipt processing. Note An error message appears if you attempt to enter an assembly part number designated as a Pull as Assembly item in the Engineering Workbench > Method of Manufacturing > Materials sheet. This
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processing restriction applies regardless of the type of components (normal, lot tracked or serial tracked) associated with it. Menu Path
Navigate to this program from the Main Menu: •
Production Management > Job Management > General Operations > Kanban Receipts
Workshop - Enter a Kanban Receipt In this workshop, enter a receipt against part CA10, reducing the quantity needed to satisfy the production kanban requests. Navigate to Kanban Receipts. Menu Path: Production Management > Job Management > General Operations > Kanban Receipts 1. In the Employee field, enter 105 and press Tab.
Charles L. Johnson displays. 2. In the Part field, enter CA10 and press Tab. 3. In the Quantity field, enter 16. 4. Click Update.
The Kanban Job was Closed and Completed message displays. 5. To the message, click OK.
This quantity value is now recorded against the kanban requests for part CA10. 6. Exit Kanban Receipts.
Workshop - Review the Kanban Warehouse Monitor In this workshop, review part CA10 in the Kanban Warehouse Monitor. Navigate to the Kanban Monitor. Menu Path: Production Management > Job Management > General Operations > Kanban Monitor 1. The Kanban Warehouse Monitor populates with current kanban information. 2. Verify the Kanban Controlled Items > By Item sheet displays. 3. In the By Item grid, in the Part Number column, select part CA10. 4. In the Qty On Hand column, 36 displays.
The on-hand quantity has increased from 20 to 36 units, as a result of the entered kanban receipt. 5. In the Kanban Analysis section, select the By Location sheet. 6. In the By Location grid, review the analysis for part CA10.
The information includes kanban type, revenue, beginning quantity, and the after quantity.
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7. Exit the Kanban Warehouse Monitor.
Time and Expense Entry Use Time and Expense Entry to enter employee time and expenses and submit them for approval. After time transactions and expense transactions are entered, you can view, modify, recall, and copy them. You can also monitor the status of transactions and enter comments for approvers. Menu Path
Navigate to this program from the Main Menu: •
Production Management > Job Management > General Operations > Time and Expense Entry
•
Service Management > Expense Management > General Operations > Time and Expense Entry
•
Service Management > Field Service > General Operations > Time and Expense Entry
•
Service Management > Maintenance Management > General Operations > Ti me and Expense Entry
•
Service Management > Project Management > General Operations > Time and Expense Entry
•
Service Management > Time Management > General Operations > Time and Expense Entry
Workshop - Review Time Against the Kanban Job In this workshop, review the time entry which was automatically reported against the auto-generated kanban job in Kanban Receipt. Navigate to Time and Expense Entry. Menu Path: Production Management > Job Management > General Operations > Time and Expense Entry 1. Click the Employee ID button and search for and select Charles L. Johnson. 2. On the left, in the Calendar, select today's date. 3. Navigate to the Time > Daily Time > Detail > Detail sheet. 4. In the Job pane, in the Job field, the kanban job number displays.
The kanban job begins with the KBP prefix as defined in Company Configuration and Site Configuration Control. 5. In the Labor Qty field, verify 16 displays.
This is the quantity enter in Kanban Receipt. 6. In the Labor pane, in the Labor Hrs field, 8 displays.
The labor hours have been calculated based on the completed quantities. 7. Exit Time and Expense Entry.
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Conclusion
Kanban Course
Conclusion Congratulations! You have completed the Kanban course.
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Additional information is available at the Education and Documentation areas of the EPICweb Customer Portal. To access this site, you need a Site ID and an EPICweb account. To create an account, go to http://support.epicor.com.