Dynamics AX 2012 Industry Solutions - Lean manufacturing

Conrad VolkmannSenior Program Management LeadMicrosoft Corporation

BRK345

Disclaimer© 2012 Microsoft Corporation. All rights reserved. Microsoft, Windows, Windows Vista and other product names are or may be registered trademarks and/or trademarks in the U.S. and/or other countries. Other names and brands may be claimed as the property of others.

Microsoft Dynamics AX 2012 R2 is a pre-release product under development. The information herein is for informational purposes only and represents the current view of Microsoft Corporation as of the date of this presentation. Because Microsoft must respond to changing market conditions, it should not be interpreted to be a commitment on the part of Microsoft. Microsoft cannot guarantee the accuracy of any information provided after the date of this presentation. All product release dates and features specified are preliminary based on current expectations, and are subject to change without notice. Microsoft may make changes to specifications and product descriptions at any time, without notice.

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MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION. NO LICENSE, EXPRESS OR IMPLIED, BY ESTOPPEL OR OTHERWISE, TO ANY INTELLECTUAL PROPERTY RIGHTS IS GRANTED BY THIS PRESENTATION. Microsoft products are not intended for use in medical, life saving, or life sustaining applications.

Session Focus – What is new in AX 2012 R2?

Controlling material

consumption for specific activities in a production

flow

Pulling material for

manufacturing Kanban’s from internal supply

Scanning in the Kanban board for

transfer job’s

Key Implementation

Tips

Challenges

Pierre, Value stream managerHad to introduce BOM-Levels per activity to enable control of the material per activity.

Ellen, the Warehouse managerGot flooded in event kanban’s pulling from the warehouse

Ahmed, the WaterspiderNeeds a simpler scanning process independent of filters to report the transfer jobs

Activity A1 Activity A2 Activity A3

Supermarket

Semi-Finished

Pick

AssemblyComponents

Backflush

Raw MaterialWarehouse

Pick

Backflush

Backflush

Supermarket

Semi-Finished

Pick

FinishedGoods

Warehouse

Replenish

Replenish

2 Hrs

5 days

5 Hrs

1 Day

20 Min

2 Days

7:20 Hrs

8 Days, 20 Min20 Min

I need a simple and secure way to scan the kanban

cards.

I need an easy way to configure an

maintain my production flows.

It must be transparent what is needed where and

when.

Replenishment strategies for Kanban:

Fixed quantity kanban Replenish a box when empty

Scheduled kanbanMRP or planner creates kanbans based on demand or minimum / security stockMinimum stock event (batch job independent of MRP)

Kanban line event kanbanPull to order

Creation methods for Kanban line event Kanbans:

AutomaticChild kanbans are created with the parent kanban (Multi Level !!!)User has to wait until all automatic kanbans are created.

Batch Child kanbans are created by a recurring batch jobNew in R2 !!! Batch job can filter on status of parent kanban !!

ManualChild kanbans are only created on demand

demo

Kanban rules and kanban creation for material replenishment It must be

transparent what is needed where and

when.

Using the kanban board for transfer jobs Filters

Filter by Warehouse (Source/Target) Filter by Activity Limit the number of lines in the job list Filters are remembered by session

Fast tabs Close unneeded Fast-Tabs

Scanning modes Start/Complete/Empty – New in R2: Independent of filters !! Select – New in R2: no refresh of the job list and quantity overview

demo

Scanning in the Kanban board for transfer job’s

I need a simple and secure way to scan the kanban

cards.

Terminology: Semi-Finished Product In a lean production flow a semi-finished product is a product resulting of a production flow activity, that has not reached the next BOM-Level.

Semi-Finished products have no unique reference. They are represented by the related finished product (next BOM level) and the last

completed activity

Semi-Finished products cannot be posted to inventory

The inventory value of the material issued to semi-finished products is contained in the WIP accounts of the production flow

Activity A1 Activity A2 Activity A3

Supermarket

Semi-Finished

Pick

AssemblyComponents

Backflush

Raw MaterialWarehouse

Pick

Backflush

Backflush

Supermarket

Semi-Finished

Pick

FinishedGoods

Warehouse

Replenish

Replenish

2 Hrs

5 days

5 Hrs

1 Day

20 Min

2 Days

7:20 Hrs

8 Days, 20 Min20 Min

Finished

Product

Componen

t 6

Componen

t 5

Componen

t 4

Componen

t 3Componen

t 2Componen

t 1

Controlling material consumption for specific activities in a production flow Prerequisites

A production flow with multiple activities using the “Semi-finished” principle

Configuration: BOM-Line: Flushing principle Production flow activities: Picking activities Default behavior

An activity that is configured to pick up semi-finished does not have a default picking activity

All other activities create a default picking activity (for the input location of the work cell)

demo

Controlling material consumption for specific activities in a production flow

I need an easy way to configure an

maintain my production flows.

Multi activity kanban rules vs. single activity kanban rules A kanban rule that spans over all activities of a production flow is close to a production order – PUSH principle !!

A kanban rule can end with an activity that receives a semi-finished product.

The semi-finished product can have different replenishment strategies than the finished product

A kanban line event rule for a semi-finished is very similar to a multi activity kanban – PUSH principle !!

Top tips from this sessionsResist the temptation to model PUSH scenarios with KanbanLimit the number of reported activities, do not use more than 3 activities in a Kanban – Ideal: 1Reduce BOM-Levels and use Semi-finished products in LeanNo production related BOM Levels are needed any more to model lean scenarios.Limit the complexity of event chainsManaging of event chains often causes more trouble than benefits. Avoid micromanagement!!

Reduce the number of inventory transactionsMove material used in the production flow to WIP as early as possible.

Verify your event kanban creation strategyAutomatic kanban creation impacts response times, consider the batch strategy !!

Related Sessions

BRK340 Dynamics AX 2012 Inventory Costing

CHK310

Dynamics AX for Manufacturing Q&A

BRK346 Cost accounting for Lean Manufacturing

BRK337

Increased visibility and productivity using Master Planning in Dynamics AX 2012

BRK338 Dynamics AX 2012 R2 Forecasting

© 2012 Microsoft Corporation. All rights reserved. Microsoft, Windows, and other product names are or may be registered trademarks and/or trademarks in the U.S. and/or other countries.The information herein is for informational purposes only and represents the current view of Microsoft Corporation as of the date of this presentation. Because Microsoft must respond to changing market conditions, it should not be interpreted to be a commitment on the part of Microsoft, and Microsoft cannot guarantee the accuracy of any information provided after the date of this presentation. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.