1. Kanban Management Implementation Guide
  2. Understanding Kanban Management Setup

Understanding Kanban Management Setup

JD Edwards EnterpriseOne Kanban Management integrates with several other systems, and it is critical that you set up each system appropriately to support the business processes.

In the JD Edwards EnterpriseOne Inventory Management system, branch/plant constants enable you to customize how you process daily transactions for each branch/plant in the distribution and manufacturing systems. You use the Branch/Plant Constants program (P41001) to set location control and warehouse control. By predefining locations to which material can be moved or completed through work order completions transactions, location and warehouse control can support backflush as an inventory-level improvement technique.

You must set up the bills of material and routings that support the work order and rate schedule for kanban-controlled items in the JD Edwards EnterpriseOne Product Data Management system. The bill of material associates each component item to a routing step which, in turn, identifies the consuming location of the item. If you are using work center locations for backflushing transactions, you should make sure that the business processes are accurately defined to do so.

In the JD Edwards EnterpriseOne Shop Floor Management system, you set up manufacturing constants to define branch-specific information that affects processing throughout the manufacturing systems. You use the Manufacturing Constants program (P3009) to specify the value for backflush options on the Manufacturing Constants tab. On the Commitment Control tab, you specify when inventory is committed and backflushed.

When you finish producing items on the shop floor, you need to record the completions to inventory. The completion transactions that you enter in the JD Edwards EnterpriseOne Shop Floor Management system update the item quantity records in the JD Edwards EnterpriseOne Inventory Management system. You can record completions for discrete and process work orders, as well as rate schedules.

You use the Super Backflush (P31123) and Work Order Completions (P31114) programs to enter completions for work orders, and the Completions Workbench program (P3119) to enter completions to rate schedules.

The Super Backflush program, which is called by the check-In transaction (one-phase) or completion transaction (two-phase), completes the kanban-generated work orders and rate schedules. To use Super Backflush to complete manufacturing orders, you should:

  • Set up the bills of material and routings with the correct issue codes and pay point codes, respectively.

  • Define consuming locations in the item's routing that agree with the related kanbans.

When you create a manufacturing order using a kanban transaction, the system automatically updates the work order completion form with the finished goods location identifier. This location is the supplying location identifier of the related kanban.

Inventory kanbans are always only one-phase, even though you can technically define them as two-phase. When you check out an inventory (source type 2) kanban, the kanban is marked in the software as requiring replenishment, but no software transactions occur. When you check in the kanban, you initiate an inventory transfer to move the material from the supplying location to the consuming location.

Kanban-controlled items that are supplied by an outside source (supplier) can use blanket orders in the JD Edwards EnterpriseOne Procurement system to facilitate order and replenishment of those items.

You can enter a blanket order when you have an agreement with a supplier to purchase a certain quantity or amount of goods over a period of time. Blanket purchase orders enable you to negotiate and control supplier prices over longer periods of time. When you create a blanket purchase order, you enter the total quantity for which you have negotiated with the supplier.

When you are ready to receive a portion of the goods or services on a blanket order, you must release the quantity or amount for which you want to create a purchase order. For example, if you have a blanket order for 1200 widgets, and you want to receive 100, you must locate the blanket order detail line and release 100 widgets. When you have a valid blanket order and the kanban is set up to release from blanket purchase orders, the system automatically debits the blanket order for the kanban quantity. When multiple blanket orders for the kanban item exist, a blanket release form appears so that you can select the blanket order from which you want to release materials.

The system creates transfer orders for kanbans that move from one branch/plant to another. You use sales orders and purchase orders during the check-out and check-in processes.

Integration with Oracle's JD Edwards EnterpriseOne Demand Flow® Manufacturing (DFM) provides support for DFM kanbans in base manufacturing. DFM kanbans include raw in-process (RIP) (source type 0) and dual card (source type 6) replenishment sources.

For JD Edwards EnterpriseOne Kanban Management, you must identify the items as kanban-controlled, create the kanban master, define the calculation method, define the parameter values, and then generate and print the kanban cards.