A key objective of flow manufacturing and JIT production is to minimize inventory and increase inventory turns. Raw material is pulled into production as needed to meet demand and the pulled material is replenished using a kanban signal. The minimum amount of material possible, based on replenishment time is held at the line in kanban bins. As each bin is emptied, a signal is issued to replenish the bin and the next bin is used to pull the material.
There are many kanban systems in use today but the most commonly used are the two-bin (two card) system and the multibin (multicard) system. Oracle Flow Manufacturing supports both these systems for planning and execution during production.
Oracle Flow Manufacturing calculates the optimal number of kanbans needed in each kanban location. It can calculate the number of kanbans needed when a bin quantity is specified or it can calculate the kanban size if the number of bins are specified. Oracle Flow Manufacturing allows the simulation of multiple kanban plans. Kanbans currently in use can be compared and adjusted against kanban requirements for consistently varying demands. This process helps in both maintaining minimal material inventory and continuity of material flow from the supplier to the production line.
Oracle Flow Manufacturing helps you define the kanban locations for each item along with the supply source information. The supply source can be suppliers, other production lines, other inventory organizations in the enterprise, or other kanban locations in the same organization. A complete chain of demand-supply pull sequences can be defined for kanban planning.
Non-replenishable kanbans are used to meet unexpected peaks in demand. For demand variations that are infrequent and unplanned, Oracle Flow Manufacturing allows non-replenishable kanban cards. These cards are created for specific items in specific quantities as needed. Non-replenishable kanbans cycle through the system only once, after which they are removed from production.
Oracle Flow Manufacturing generates appropriate events for each kanban signal. For kanbans that are sourced through suppliers, the system can generate requisitions and purchase orders. Sourcing rules can also be used to create blanket releases against purchase contracts. Internal requisitions can be generated for interorganization replenishments.
Oracle Flow Manufacturing supports different statuses of kanban cards to help track their release cycle. Supported statuses include Full, Empty, In-Process, In-Transit, Hold, and others. Kanban Cards can also be accumulated and released together when a minimum order quantity greater than the kanban size is specified. A number of modifiers such as safety stock days and lot multiplier allow you to create a smooth signaling and replenishment system.
Modifying and Creating Pull Sequences on the Graphical Network