Kanban rules (form)

Article
10/09/2018

Applies To: Microsoft Dynamics AX 2012 R3, Microsoft Dynamics AX 2012 R2, Microsoft Dynamics AX 2012 Feature Pack, Microsoft Dynamics AX 2012

Click Production control > Setup > Lean manufacturing > Kanban rules.

Use this form to create and configure kanban rules. A kanban rule defines the following:

When kanbans are created or generated to signal demand
How the kanbans are fulfilled

Task that uses this form

Key tasks: Create a kanban rule

Navigating the form

The following tables provide descriptions for the controls in this form.

Setup actions

Action button	Description
Kanban rule	Configure a new kanban rule.
Duplicate kanban rule	Open the Duplicate kanban rule form to create a kanban rule that is based on an existing rule. Use this form to reuse information and save time when you create kanban rules.
Replace kanban rule	Open the New replacement rule form to create a kanban rule that is a duplicate of the current rule and that replaces the current rule. Use this function when attributes of an existing kanban rule, such as the kanban quantities or specific activities, are planned to change at a specific date.
Delete	Delete the selected kanban rule. Kanban rules can only be deleted if the handling unit status of all active kanbans is Not assigned. When kanban rules are deleted, all kanbans, kanban cards, kanban jobs, and related transactions are also deleted. We therefore recommend that you set an expiration date for kanban rules that are no longer used but are kept for statistical reasons. These kanban rules are inactive, but all kanbans and transactions are kept.
Recalculate lead time	For fixed kanban rules, recalculate the lead time that is required to replenish a new kanban at the final receipt location. The calculated lead time is based on the selected kanban flow and the activity times. The calculated lead time is the minimum lead time that is required. The average lead time is probably longer than the calculated lead time.
Auto - planning	Use this function after changes which affect automatic planning are made to kanban rules. You can configure kanbans to use automatic planning on the Quantities tab.
Choose kanban flow	For kanban rules that are configured for multiple activities, open the Choose kanban flows form to select a kanban flow. You can also generate new kanban flows.
View kanban flow	For kanban rules that are configured for multiple activities, open the Kanban flow form to view the kanban flow that is assigned.
View source	Open the Production flows form to view the settings of the production flow that is referenced by the first activity.
View destination	For kanban rules that are configured to use multiple activities, open the Production flows form to view the settings of the production flow that is referenced by the last activity.
Filter	Open the Filter form to select criteria for filtering kanban rules that are displayed.

Heading and grid

Field	Description
Type	Select or view the kanban type. The options are as follows: Manufacturing – Create a process kanban job Withdrawal – Create a transfer kanban job
Replenishment strategy	Select the replenishment strategy for the products that are covered by the kanban rule. The replenishment strategy defines the method that is used to create or generate kanbans. The options are as follows: Fixed – The user defines and manually creates a fixed quantity of kanbans. The basic kanban concept is defined by a fixed quantity of kanban cards that circulate between the source of supply and the point of consumption. The quantity of active kanbans is constant. When a material handling unit is registered as empty, a new kanban is created to replace it. You define the kanban quantity on the Quantities tab. See the Fixed kanban quantity field description below for more information. Scheduled – Kanbans are generated during master planning or created manually by the planner based on actual demand, forecast, or minimum stock levels that signal demand. Event – Kanbans are generated directly from demand. Define and configure the event type on the Events tab. Use this option to set up rules that define a make-to-order scenario.
Kanban rule	The identification of the kanban rule.
Product selection	The identification of the product selection of the kanban rule. This information is entered on the Details tab. In this form, you cannot filter by product selection, but you can filter by product or product family.
First plan activity	Select the first activity of the kanban rule. When you select an activity, the validity dates of the activity are copied to the validity dates of the kanban rule. The first activity is also the only activity of the kanban rule unless you configure multiple activities. The first activity of a manufacturing kanban rule must be a process activity. The first and only activity of a withdrawal kanban rule must be a transfer activity.
Multiple activities	Select this check box to configure multiple activities for the kanban rule. Only manufacturing kanbans can have multiple activities.
Last plan activity	When the Multiple activities check box is selected, select the last activity of the kanban rule. The lookup form displays all activities that are downstream from the first activity in the same production flow version. The Choose kanban flows form opens and displays the valid kanban flows for the production flow version.

Details FastTab

View or enter basic information about the current kanban rule.

Field	Description
Product selection	Select the product category that is replenished by the kanban rule. The options are as follows: Product – The kanban rule is valid for a single item number. For items with product dimensions the kanban rule can be valid for a specific dimension or for all values of the product dimension. Fixed quantity kanban rules must always specify a Product selection of the type Product, and the product cannot have optional product dimensions. Product family – The kanban rule is valid for all items and the related product dimensions that are assigned to a single item allocation key. All - The kanban rule is valid for all products that are supplied by the last activity of the kanban rule.
Product	When the Product option is selected in the Product selection field, select the item from the lookup list. If the product carries product dimensions, the Product dimension fields are enabled. For fixed quantity kanban rules, the product dimensions are mandatory. For scheduled and event rules, the product dimensions are optional. To combine scheduled or event kanbans with product configuration, the kanban rules must have an empty configuration, as new configurations are created on demand.
Product family	When the Product family option is selected in the Product selection field, select the Item allocation key from the lookup list.
Effective	Select the date when the kanban rule becomes effective.
Expiration date	Select the date when the kanban rule expires. For kanban rules that are expired and not replaced with an updated rule, the following conditions are true: A kanban job cannot be started. A kanban job cannot be planned. A kanban job cannot be prepared. A kanban job can be canceled, or its job status can be reset. No kanbans can be created. A kanban cannot be changed. A kanban can only be canceled. Circulating cards cannot be created.
Replaced rule	Select the kanban rule that you want to replace with the current rule.
Lead time	View the lead time that is required to replenish the kanban. The lead time is the actual lead time that is agreed upon to replenish a kanban in a supermarket when the handling unit is empty. It is probable that the actual lead time is longer than the calculated lead time. When a kanban rule is created, it is preset with the calculated lead time that is determined by using the following formula: ∑ activity times (activities in the kanban flow) + minimum constraint values (activity relations) The lead time is used to calculate the due date for fixed quantity kanbans. The kanban boards show an overdue symbol for the following: All kanban jobs that have a due date in the past Jobs that are scheduled for a period that ends after the due date
Unit of measure	The unit of measure that is used with the Lead time. When the unit of measure is changed, the lead time is recalculated according to the defined conversion of the old and new units of measure. Only units of measure of the class Time can be used.

Quantities FastTab

View or configure the following settings:

Product quantities
Product variance quantities
Kanban quantities
Kanban quantities for automatic planning

The replenishment strategy of the kanban rule determines which fields are available or unavailable to modify, and which fields are mandatory or optional.

Field	Description
Default quantity	For fixed or scheduled kanban rules, enter the target product quantity to use per kanban. This field is mandatory for fixed quantity rules.
Minimum quantity	For scheduled kanban rules, enter the minimum product quantity to use per kanban. The value that is entered in the Default order settings, Inventory quantity, Min. order quantity setting is used as the default value. You can change it, but it cannot be less than the minimum order quantity for inventory.
Maximum quantity	For scheduled and event kanban rules, enter the maximum product quantity to use per kanban. The value that is entered in the Default order settings, Inventory quantity, Max. order quantity setting is used as the default value. You can change it, but it cannot be more than the inventory quantity setting.
Product quantity variance	Select this check box to allow the finished product quantity to differ from the specified product quantity for each instance of a kanban job that references the kanban rule.
Variance below	Enter the quantity by which the finished product quantity can be less than the specified product quantity.
Variance above	Enter the quantity by which the finished product quantity can exceed the specified product quantity.
Fixed kanban quantity	For fixed quantity kanban rules, enter the number of kanbans that are required to cover the forecasted demand during the validity period of the kanban rule. You can determine the kanban quantity by using the kanban quantity calculation. The calculation is based on actual demand, forecast demand, or historic consumption.
Alert boundary minimum	Enter a number of kanbans to define the minimum kanban quantity per work cell or supermarket. This kanban level is visible in the kanban quantity overview of the kanban boards. The Alert boundary minimum has the following effects: When the number of jobs for active kanbans that are planned does not meet the specified minimum alert quantity, the background color is red instead of green. Active kanbans can have any handling unit status except Empty. The kanban rules are sorted by planning importance. This is calculated for active kanbans using the following formula: Alert boundary minimum – number of jobs that have the Status >= Planned Scheduled and event kanban rules are not displayed on the kanban quantity overview if the following conditions are true: Alert boundary minimum = zero There are no active kanbans This is the recommended setting for event kanban rules, unless the business case requires an alert when a minimum number of active events are missing.
Alert boundary maximum	Enter a number of kanbans to define the maximum kanban quantity per work cell or supermarket. This boundary helps visualize excess inventory in a supermarket. It also gives a visual signal when more scheduled or event kanbans than expected are created for a kanban rule. The kanban level is visible in the kanban quantity overview of the kanban boards. When the number of completed jobs for active kanbans is more than the specified maximum alert quantity, the background color is red instead of green. Active kanbans can have any handling unit status except Empty.
Automatic planning quantity	Enter the number of unplanned jobs that cause automatic planning to occur. An unplanned kanban job has the status Not planned.
Maximum planned jobs	When you use automatic planning of unplanned kanban jobs, enter the maximum number of kanban jobs that are planned for a specific kanban rule. Use this limit to avoid overloading a work cell for scheduled and event kanbans. This situation might occur because of false demand or exceptionally large customer orders. We recommend that you use this setting and a maximum sales order quantity setting for sales event kanban rules that use CTP (capable to promise) or automatic kanban creation. These settings would limit the effect that erroneous order quantities could have on system performance.

Kanban and cards FastTab

View or configure settings to use and print kanban cards and circulating cards.

Button	Description
Create cards	When the kanban rule is configured to use circulating cards, open the Create circulating cards form which you can use to create and print circulating cards.
View cards	When the kanban rule is configured to use circulating cards, open the Circulating cards form in which you can view and maintain the circulating cards that are created for the current kanban rule.

Field	Description
Card number sequence	The kanban card number sequence that is assigned to this kanban rule. When a kanban rule is created, the default number sequence from the production parameters is used. You can create number sequences for kanban cards in the Number sequences form. Open this form by right-clicking in this field and selecting View details. Tip It is a proven best practice to use unique and short number sequences for fixed circulating cards. This helps identify a specific card easily. Kanban card IDs are unique for an enterprise. You cannot use the same card IDs for different kanban rules in multiple companies, but you can use the same number sequences.
Automatic printing	Select the event that causes automatic printing of kanban cards. The options are as follows: None – Automatic printing is not used. We recommend that you use this setting when circulating cards or electronic kanban processing is used. Creation – Print kanbans when the kanban is created. We recommend that you use this setting when a physical planning board for event kanbans is used, and circulating cards cannot be used. Plan – Print kanbans when the first job of the kanban is Planned. We recommend that you use this setting when a printed kanban card triggers the processing of kanban jobs on the shop floor. Prepare – Print kanbans when the first job of a kanban flow is registered as Prepared. Start – Print kanbans when the first job of a kanban flow is registered as In progress. Receive – Print kanbans when the first job of a kanban flow is registered as Completed. This option is often used if batch or serial numbers of the finished items are printed on the kanban card.
Print picking list with card	Select this check box to print the picking list together with the kanban card.
Print instructions	Select the information to print on the kanban card. The options are as follows: Work instructions – Print the production instructions document that is attached to the kanban. For more information, see Attach production instructions to kanban rules. Shipping instructions – Print the complete ship to address and tracking information that includes batch and serial numbers, on the kanban card.
Circulating cards	Select this check box to use circulating cards with the current kanban rule.
Number of active cards	Enter the number of active circulating cards that are in circulation at a given time for the kanban rule.
Card assignment	Select the method of assigning circulating cards. The options are as follows: Automatic – When a kanban is created, a card is assigned automatically when the following conditions are true. An unassigned active kanban and an unassigned active card exist for a kanban rule. This is the default setting. When kanbans are created before circulating cards are created, the cards are assigned automatically when the cards are created. If there is a shortage of cards, when a kanban is registered as empty, the card is automatically assigned to a new kanban. This is especially useful when circulating cards correspond to a limited number of conveyers, racks, or bins. Manual – You must assign a card manually in the kanban board. You can do this when you prepare a kanban job.
Single use kanbans use circulating cards	For fixed kanban rules, select this check box to use circulating cards with single use kanbans. When the check box is not selected, single use kanban cards are created for single use kanbans. Circulating cards are then reserved for use with kanbans that are not created for single use.

Events FastTab

View or configure settings for event kanban rules. You can configure event kanban rules to fulfill requirements that originate from sales lines, BOM lines, kanban lines, and minimum inventory settings. The event kanbans that are generated are pegged to the source requirement.

Field	Description
Sales event	Use this setting to configure kanban rules that fulfill requirements from sales orders. Select one of the following options: Not active – Kanbans are not created for sales events. Manual – You can create kanbans manually for sales events. Batch – Kanbans are generated during pegging event processing. Automatic – Kanbans are generated when sales events occur. Automatic with CTP – Sales event kanbans are generated and loaded to the kanban schedule. The last end date from the corresponding kanban jobs is used as a confirmed delivery date for the sales line. We recommend that you do not use this option together with the reservation type, Explosion, on the sales order line.
BOM line event	Use this setting to configure kanban rules that replenish picking lists that are based on production orders. Select one of the following options: Not active – Kanbans are not created for BOM line events. Automatic – Kanbans are generated when production orders are estimated, and the BOM lines correspond to kanban rules.
Kanban line event	Use this setting to configure kanban rules that replenish material that is required for a downstream process activity. Select one of the following options: Not active – Kanbans are not created for kanban line events. Manual – You can create kanbans manually for kanban line events. Batch – Kanbans are generated during pegging event processing. Automatic – Kanbans are generated when kanbans which have kanban lines that correspond to kanban rules, are created.
Stock replenishment event	Use this setting to configure kanban rules that replenish minimum inventory levels. Select one of the following options: Not active – Kanbans are not created for stock replenishment events. Batch – Kanbans are generated during pegging event processing if the actual on hand inventory is below the minimum inventory quantity.
Minimum event quantity	Enter the minimum quantity that is required on the source requirement to generate event kanbans for this rule. Event kanbans are generated when the quantity of the source requirement is equal to or more than this field. The default value is zero, but you can change it.
Event kanban handling unit must be received on	Select the status of the source requirement that determines when material handling units of the referenced event kanbans must be received. The options are as follows: None – If sufficient inventory is available, the material handling units do not have to be received. Picking – Material handling units must be received before the source requirement can be prepared. Start – Material handling units must be received before a kanban job or production order can start. Finish – Material handling units must be received before a production order can be reported as finished. End – Material handling units must be received before a kanban job or production order can be completed.
Delete unused event kanbans	Select this check box to delete referenced event kanbans that have the handling unit status Not assigned when the source requirement is registered as finished.
Source requirement reservation	Select this check box to override the current inventory reservation settings for demand source requirements such as sales order lines and production BOM lines.
Never	Select this field when reservations for all referenced sales lines and production BOM lines are to be made manually.
Always	Select this field to automatically reserve inventory for all referenced sales lines and production BOM lines.
Sales lines	Select the method of automatic reservation to use for sales lines. When sales order lines that reference this kanban rule are created, the setting in this field overrides the default value from the sales header.
BOM lines	Select the method of automatic reservation to use for BOM lines. When production BOM lines that reference this kanban rule are created, the setting in this field overrides the default reservation setting.

Production flow FastTab

View information about production flow and related versions that are referenced by the activity or activities.

Field	Description
First activity	View the production flow and version that the first activity references. If there are no kanbans created for this rule, you can edit this field in the activity lookup form.
Last activity	View the production flow and version that the last activity references. If there are no kanbans created for this rule, you can edit this field in the activity lookup form.
Register as empty	Select an option to define when material handling units are registered as empty. The options are as follows: When handling units are received – When the last job of a kanban is completed, the kanbans are registered as empty and disappear from the kanban quantity overviews. This is the default setting for scheduled kanbans, and it can also be used for the other replenishment strategies. When used with the fixed quantity strategy, a new kanban is created whenever the last job of the previous kanban is completed. When the source requirement is registered – When the products that are supplied by event kanbans are consumed by the demand source, the kanbans are registered as empty. They disappear from the kanban quantity overview in the kanban boards. Manual (includes scanning empty) – The kanbans must be explicitly registered as empty. Use this setting when products are stored in supermarkets before they are consumed or shipped. This is the default setting for fixed quantity kanbans.
Inventory transactions	This check box is selected if the first activity, last activity, or both activities of the kanban rule are configured to create inventory transactions.
Financial transactions	This check box is selected when the kanban rule creates inventory transactions, and one or more of the following conditions are true: The kanban type is Manufacturing. The kanban type is Withdrawal, and the picking and receipt locations are managed by subcontractors. The kanban type is Withdrawal, and the picking and receipt locations are on different sites. The kanban type is Withdrawal, and one of the following conditions is true: The picking activity updates the available inventory, and the receipt does not update available inventory but is transferred to WIP (work in process). The picking activity does not update available inventory, but the receipt is transferred from WIP and does update available inventory.
Kanban flow defined	This check box is selected when a valid kanban flow is defined for the kanban rule.
Warehouse	View the warehouse where products are supplied.
Location	View the location where products are supplied.

Kanban quantity calculation policies FastTab

For fixed quantity kanban rules, view, add, and remove kanban quantity calculation policies that are assigned to the selected kanban rule.

Button	Description
Add	Assign a kanban quantity calculation policy to the selected kanban rule.
Remove	Remove the assigned kanban quantity calculation policy or policies from the selected kanban rule.
Details	Open the Kanban quantity calculation policies form to view information about how the selected kanban quantity calculation policy is configured.

Field	Description
Kanban quantity calculation policy	The name of the kanban quantity calculation policy that is assigned to the selected kanban rule.

Kanbans FastTab

View the kanbans that are created for the current kanban rule.

Button	Description
Add	For fixed quantity kanban rules or scheduled kanban rules, open the corresponding form to manually create kanbans for the selected replenishment strategy.
Remove	Delete the selected kanban. You can only delete kanbans that have the handling unit status Not assigned and that do not have planned jobs. You can cancel planned jobs in the Kanban form.
Details	Open the Kanban form to view detailed information about the selected kanban.
Dimensions display	Open the Dimensions display form to select the product dimensions to display in the Kanbans grid.
Filter	Open a dialog in which you can set whether to display kanbans that have the handling unit status Empty. For use in daily work routines, we recommend that you do not select the Show empty check box. This setting keeps the focus on active kanbans.
Print	Open a report to configure settings to print the kanban card.

Kanban

The identification of the kanban.

Item number

The item number and any product dimensions (that are selected in the Dimensions display form) that describe the product that is replenished by the kanban.

Product quantity

The product quantity that is replenished by the kanban.

Handling unit status

The status of the material handling unit that references a kanban. Handling unit status is determined by the corresponding kanban job status. The handling unit status is assigned automatically. The options are as follows:

Handling unit status	Dependent job status
Not assigned – A handling unit is not assigned to the kanban.	Not planned or Planned	The first job is not prepared or started.
Assigned – A handling unit is assigned to the kanban. All jobs, except for the last job, are prepared, started or completed. The last job can be prepared or started, but not completed.	Prepared or Started	Material for the first job is picked. The handling unit is prepared. A kanban card must be assigned.
Received – The handling unit is filled and has arrived at its final destination for consumption. All the kanban jobs are completed.	Completed	Output from the last job is received at the incoming warehouse.
Empty – The handling unit that is assigned to the kanban has been emptied and registered as empty.	None	The output supplied by the kanban is consumed. The handling unit is now empty. Circulating cards are unassigned and reused.