Kanban

The kanban supply system is typically used for low-cost and high-volume component items used to manufacture products or assemble larger component items or subassemblies into end items. You can also use the kanban system to supply floor stock items.

Kanban supply orders are generated to supply the component items from a business partner, work center, or warehouse to a shop floor warehouse.

A kanban signal is used to trigger the creation of a kanban supply order. A kanban signal includes a label code and a supply quantity, and is linked to a warehouse and item combination.

Typically, a kanban signal represents a kanban bin. When the user scans the label code on the empty bin, LN generates a supply order for the item quantity defined for the signal.

A signal can also represent more than one bin. For example, a label is attached to every second bin. When both bins are empty, the user scans the label of the second empty bin to generate a supply order for both empty bins.

Kanban signals are defined for a warehouse and item combination in the Item Data by Warehouse (whwmd2110s000) session. You can link multiple kanban signals to a warehouse and item combination. The signals defined for an item and warehouse represent the kanban loop.

Depending on the demand for the item, you can increase or decrease the number of signals for the kanban loop.

You can either calculate or manually specify the number of signals for the loop. If calculated, the number of signals is determined by the average daily demand for a particular period.

Kanban signals are reusable or non-reusable.

If reusable, a signal can be used continually to trigger supply orders in the kanban loop. If the demand for the item decreases and fewer signals are required, you can temporally deactivate the signals and reactivate them when the demand increases.

If non-reusable, a signal is linked to only one supply order. When the supply order is received in the shop floor warehouse, the signal is permanently closed and a new signal is generated.

Kanban orders are generated or manually created using the Generate Orders (KANBAN) (whinh2200m000) session. Usually the creation of kanban supply orders is bar code driven and executed using a scanner. A kanban order is generated when the bar code of the kanban label is scanned.

However, users can also manually create kanban orders. In addition, if the Generate Kanban Order Automatically check box is selected in the Item Data by Warehouse (whwmd2110s000) session, a kanban order is generated for a newly created or activated signal.