Friday, October 9, 2015

Microsoft Dynamics AX 2012 Manufacturing – Lean Ninja IoT Scenario Part 4: Functionality/Make to Order

Microsoft Dynamics AX 2012 Manufacturing – Lean Ninja IoT Scenario Part 4-3: Functionality/Make to Order
 
 
Addendum A: MRP
 
Please note that in this scenario in order to generate kanban for replenishing Near Side Line location from Warehouse bulk location based on Minimum on-hand requirement we used Kanban pegging event routine. In fact we could also use MRP to generate planned or firmed kanban for these purpose. The implication of doing this may be a delay if you run MRP infrequently, that's why for a quick turnaround it is preferred to run Kanban pegging event routine in a batch.  
 
As a part of Addendum A I'll still showcase how MRP can be used to generate kanban for replenishing Near Side Line location from Warehouse bulk location based on Minimum on-hand requirement.
 
So instead of running Pegging events processing we'll run MRP this time for Wheel2 item to limit the scope of MRP execution
 
MRP
 
 
Infolog
 
 
Now we'll look at Net requirements for Wheel2 item. There we can see how planned kanban has been generated to cover Minimum stock requirement for Wheel2 item
 
Net requirements
 
 
Net requirements (Side line location BULK-003)
 
 
Net requirements (Near Side line location BULK-002)
 
 
Net requirements (Near Side line location BULK-002) – Planned kanban 1
 
 
Net requirements (Near Side line location BULK-002) – Planned kanban 2
 
 
Net requirements (Warehouse location BULK-000)
 
 
Inventory transactions in this case will look like the following
 
Inventory transactions
 
 
Addendum B: Transfer
 
It was explained at the beginning why it was decided to use Manufacturing kanban to replenish Near Side Line location from Warehouse bulk location. The main reason was a necessity to implement wave kanban picking. In fact if we would not have to deal with wave kanban picking we could have used Withdrawal kanban instead. In Addendum B I'll showcase how we could set up Withdrawal kanban rule to replenish Near Side Line location from Warehouse bulk location.
 
This is how we will create Kanban rule and appropriate Transfer activity for production flow
 
Production flow: Activity = Replenish Near Side Line <- Bulk 2 (Welcome)   
 
 
Production flow: Activity = Replenish Near Side Line <- Bulk 2 (New activity)   
 
 
Production flow: Activity = Replenish Near Side Line <- Bulk 2 (Create transfer activity)   
 
 
Production flow: Activity = Replenish Near Side Line <- Bulk 2 (Assign transfer locations)   
 
 
Production flow: Activity = Replenish Near Side Line <- Bulk 2 (Assign activity time)   
 
 
Production flow: Activity = Replenish Near Side Line <- Bulk 2 (Wizard completed)   
 
 
Now we'll take a look at newly created activity
 
Production flow: Activity = Replenish Near Side Line <- Bulk 2
 
 
Production flow: Activity = Replenish Near Side Line <- Bulk 2
 
 
Then we'll create Withdrawal kanban rule as shown below
 
Kanban rule
 
 
Kanban rule - Events
 
 
Kanban rule – Production flow
 
 
Now I'll introduce enough on-hand for Wheel2 item in Warehouse bulk location (BULK-001), I'm not going to use WMS processes this time that's why on-hand in Warehouse location BULK-000 won't count
 
Inventory journal
 
 
And then I'll execute Kanban pegging event processing routine
 
Pegging events processing
 
 
Infolog
 
 
The following Withdrawal kanban has been created
 
Kanban
 
 
And inventory transactions at this point will look like the following
 
Inventory transactions (Wheel2)
 
 
This concludes the walkthrough!
 
Summary: In this walkthrough I illustrated how to establish an advanced Make to Order Lean Manufacturing scenario in Microsoft Dynamics AX 2012. We went through the process of setting up data, creation of initial demand, manufacturing process and Lean costing. In particular both warehouse management processes and lean manufacturing processes were used to enable this scenario. We also considered a high degree of variability, specifically, using different locations, handling different quantities and different products throughout the scenario. 
                               
Tags: Microsoft Dynamics AX 2012 R3, Lean Manufacturing, Pull, Kanbans, Kanban rules, Production flow, Warehouse Management, Hand-held devices.
 
Note: This document is intended for information purposes only, presented as it is with no warranties from the author. This document may be updated with more content to better outline the issues and describe the solutions.
 
Author: Alex Anikiev, PhD, MCP
 
Special thanks for collaboration in building this scenario goes to Lean Transformation Guru at MCAConnect, Phil Coy

Microsoft Dynamics AX 2012 Manufacturing – Lean Ninja IoT Scenario Part 4: Functionality/Make to Order

Microsoft Dynamics AX 2012 Manufacturing – Lean Ninja IoT Scenario Part 4-2: Functionality/Make to Order
 
 
Section: Creation
 
We'll begin with replenishment of Near Side Line location (BULK-002) from Warehouse bulk location (BULK-001). First we'll introduce a necessary on-hand in BULK-000 location as presented below
 
On-hand
 
 
Then we can run Kanban pegging event routine to generate necessary kanban
 
Kanban pegging event
 
 
Infolog
 
 
Please note that Manufacturing kanban has been generated to replenish Near Side Line location from Warehouse bulk location
 
Kanban rule
 
 
Kanban
 
 
At this point we are missing BOM structure for kanban, so we are going to assign BOM version manually to kanban using Assign alternative BOM version function
 
Assign alternative BOM version - Before 
 
 
Assign alternative BOM version - After
 
 
Now we'll look at kanban pegging tree
 
Kanban pegging tree
 
 
And also we'll take a look at inventory transactions
 
Inventory transactions
 
 
Please remember that we are using Manufacturing kanban for replenishment of Near Side Line location from Warehouse bulk location. And the next step will be to plan the entire pegging tree to plan kanban Process job, generate Kanban picking wave and Warehouse work
 
Plan entire pegging tree
 
 
Kanban pegging tree – Kanban jobs
 
 
 
Please note that Kanban Process job changes its status to Planned now
 
Inventory transactions
 
 
At this point we can also review Kanban wave
 
Kanban wave
 
 
and generated Warehouse work
 
Work
 
 
Please note that wave would not be created and items would be picked if I had on-hand in BULK-001 for Wheel2
 
Now Warehouse worker will use hand-held device to execute Warehouse work
 
Login
 
 
Menu - Inventory
 
 
Menu – Inventory – Kanban picking
 
 
Kanban picking
 
 
Kanban picking
 
 
Kanban picking
 
 
Kanban picking
 
 
Kanban picking
 
 
Kanban picking work is now completed and we can take a look at inventory transactions
 
Inventory transactions
 
 
In a meantime we can also see Process kanban job planned on Schedule board and visible on Kanban board for Process jobs  
 
Kanban board – Schedule board
 
 
Kanban board – Schedule board
 
 
Kanban board - Process jobs
 
 
Kanban board - Process jobs
 
 
Kanban board - Process jobs (Details)
 
 
Kanban board - Process jobs (Picking list)
 
 
Kanban board - Process jobs
 
 
At this point we could complete kanban straight from Kanban board for process jobs, but instead of this we'll do kanban put away in WMS
 
Menu - Inventory
 
 
Kanban put away
 
 
Kanban put away
 
 
Kanban put away
 
 
Kanban put away
 
 
Now when kanban put away work is completed we can take a look at inventory transactions
 
Inventory transactions
 
 
Also we can observe completed kanban on Kanban board for Process jobs
 
Kanban board for Process jobs
 
 
After we completed Manufacturing kanban we have replenished Near Side Line location (BULK-002) from Warehouse bulk location (BULK-001). We can see how inventory on-hand was updated for Wheel2
 
On-hand
 
 
Before we proceed to the next step I want to also introduce additional on-hand for Body in the point of consumption, Line Side location (BULK-003)
 
Inventory journal
 
 
Next we'll place a new Sales order for AlexMotorcycle2
 
Sales order
 
 
Please note that AlexMotorcycle2 finished product is expected to be in a Finished good location (BULK-004). After we save Sales order the system based on Kanban rules in place will automatically create necessary kanbans. We can review created kanbans by opening Pegging tree form 
 
Pegging tree (Process kanban)
 
 
As you can see according to Kanban rules 2 Kanban jobs will have to be completed to produce AlexMotorcycle2, one for Transfer and another one for Process
 
Kanban (Process)
 
 
Pegging tree (Transfer kanban)
 
 
Kanban (Transfer)
 
 
This is how inventory transactions look like at this point 
 
Inventory transactions (Wheel2)
 
 
Inventory transactions (Body2)
 
 
Inventory transactions (AlexMotorcycle2)
 
 
Now I'll plan the entire pegging tree
 
Plan pegging tree
 
 
Please note that Kanban Process job has been Planned, and no Kanban picking wave was generated
 
Pegging tree – Kanban jobs
 
 
In a meantime we can review Transfer and Process jobs on Kanban board for Transfer jobs and Kanban board for Process jobs correspondingly
 
Kanban board for Transfer jobs
 
 
Kanban board for Transfer jobs
 
 
Kanban board for Transfer jobs - Details
 
 
Kanban board for Transfer jobs – Picking list
 
 
Kanban board for Transfer jobs - Pegging
 
 
Kanban schedule board
 
 
Kanban board for Process jobs
 
 
Kanban board for Process jobs
 
 
Kanban board for Process jobs - Details
 
 
Kanban board for Process jobs – Picking list
 
 
Kanban board for Process jobs - Pegging
 
 
You can also review Process job and Transfer job on the same screen as presented below
 
Kanban board for Process jobs
 
 
Now we can begin the execution of kanbans
 
Section: Execution
 
We'll begin with Starting Transfer job first
 
Transfer – Start
 
 
In case you want to do partial picking you can use Pick screen as presented below
 
Pick
 
 
Here's how inventory transactions look like after this step
 
Inventory transactions
 
 
Then we'll complete Transfer
 
Transfer – Complete
 
 
In case you want to do partial registration you can use Registration screen as presented below
 
Registration
 
 
Here's how inventory transactions look like after this step
 
Inventory transactions
 
 
As we complete Transfer now we have enough Wheels in its Part location for Workcell worker to execute Assembly process. We'll start Process kanban job now
 
Process job - Start
 
 
In case you want to do partial picking you can use Pick screen as presented below
 
Pick
 
 
Pick
 
 
Please note that according to Storage dimension group I had to specify Locations on both lines
And again we'll take a look at inventory transactions 
 
Inventory transactions (Wheel2)
 
 
Inventory transactions (Body2)
 
 
In case we need to complete partial quantity or specify Good/Error quantities you can use Complete job and error details screen as presented below
 
Process job – Complete with details
 
 
Process job
 
 
In case you need to update partial registration you can use Registration screen as presented below
 
Registration
 
 
Now we can take a look at inventory transactions again
 
Inventory transactions (AlexMotorcycle2)
 
 
Inventory transactions (Wheel2)
 
 
Inventory transactions (Body2)
 
 
Once we completed Manufacturing kanban we can see finished product is available in Finished goods location now
 
On-hand
 
 
And because we have produced the product we can now send it to the customer
 
Sales order – Packing slip and Invoice
 
 
Please note Location is specified on Sales order line per Storage dimension group requirement
 
After we updated Sales order physically and financially we can review inventory transactions
 
Inventory transactions (AlexMotorcycle2)
 
 
Inventory transactions (Body2)
 
 
Inventory transactions (Wheel2)
 
 
The very last step will be to run Lean costing routine to cost the production flow
 
Section: Costing
 
Cost the production flow
 
 
Prompt
 
 
Please note that no further registrations of kanban jobs will be possible after the date costing, but that's fine for the sake of this demo
 
Inventory transactions (AlexMotorcycle2)
 
 
Inventory transactions (Body2)
 
 
Inventory transactions (Wheel2)
 
 
                               
Tags: Microsoft Dynamics AX 2012 R3, Lean Manufacturing, Pull, Kanbans, Kanban rules, Production flow, Warehouse Management, Hand-held devices.
 
Note: This document is intended for information purposes only, presented as it is with no warranties from the author. This document may be updated with more content to better outline the issues and describe the solutions.
 
Author: Alex Anikiev, PhD, MCP
 
Special thanks for collaboration in building this scenario goes to Lean Transformation Guru at MCAConnect, Phil Coy