1. Conference ID: 574588 / Password: 574588
Electronic
Kanbans
Audio Conference Dial In Numbers:
Americas , APAC
Conference ID: / Password:
Bill Desmond, CPIM
Supply Chain Sales Consultant

2. Today’s Topics Kanban functions between Astec and its suppliers
Setups, variations, planning cycle, etc.
Collaboration with suppliers in updating Kanban status (Pull, Replenishment, shipment, etc.)
Graphical / workbench view of Kanban card status;
Integration with Inventory / Flow Manufacturing / PO / and Financial modules
Use of supplier hub inventory (VMI)
Functions available in vs

3. Today’s Topics Kanban functions between Astec and its customers
(Astec WIP to customer hub inventory, then to customer)
Setups, variations, planning cycle, etc.
How customer pull from our Oracle Inventory Org can trigger Kanban planning between Hub Inventory Org and Factory Org
Use of Kanban in Flow Manufacturing in factory org;
Collaboration with customers in updating Kanban status when customer pulls from our Hub Inventory Org
Integration with AR / Inventory / Flow Manufacturing, etc.
Graphical / workbench view of Kanban
Functions available in vs

4. Agenda Demonstration of Supplier Electronic Kanban Replenishment
Setting Up and Maintaining Kanbans
Collaborating with Suppliers
Collaborative Planning
Vendor Managed Inventory
Consigned Inventory
Consigned and VMI with Customers
Questions and Answers

5. Kanban Execution Demo Flow
Production - Work Order
Supplier - Requisition
Intra Org – Move Order
Inter Org – Xfer Order
Supplier logs
Into Portal,
Sees Release
And Ships
Shipment Received,
Kanban Updated
Requisition
Auto-Sourced,
Blanket Release
Created
Empty
Kanban
Scanned
Kanban Execution Demo

6. Kanban Planning
Kanban Planning Algorithm will calculate either the Kanban size or the number of cards for a given pull sequence
(Number of Cards – 1) X Kanban Size = Average Daily Demand X (Lead Time + Safety Stock Days)
Kanban planning logic can be modified for specific needs

7. Kanban Planning Example
Average Daily
Demand=200
M498903
Average Daily
Demand=100
Average Daily
Demand=300
M342855
M587393
(4)
(2)
(2)
M945980
A Pull Sequence is Defined for this component with this locator as the Kanban location
Default Supply Locator
for this component in
these three BOMs
Sub: RIP
Locator
Average Daily Demand for this component in this location = 1600
Kanban Planning Demo

8. New Feature w/11.5.10 - Mass Update Production Kanbans
Description
Allows the mass update of production kanbans based on new or revised planning pull sequences.
Who cares and why?
The implementation of kanbans may require creating and updating large amounts of information
This enhancement reduces the amount of Indirect labor needed to maintain kanbans

9. Mass Update Production Kanbans
What if supplier decreases his lead time by a day?
What impact should this have on kanban sizes?
If I need them, how can I put new kanbans into production?

10. Select the Supplier that you are working with
Select the Supplier that you are working with. This provides a summary view of all of his related pull sequences.

11. Right click on the link node and select ‘Update Pull Sequence’
Right click on the link node and select ‘Update Pull Sequence’. Modify the Lead Time attribute of the pull sequence.

12. Return to the Plan level node and select ‘Simulation Replan’ to recalculate the kanban sizes based on the new lead time.

13. Before / After comparison
Before / After comparison. The kanban size has changed from 12 with a 4 day lead time to 150 with a 3 day lead time.

14. To use the new calculated values, right click on the node and select ‘Update Production’

15. Confirm your selection and press ‘Update Production’

16. Note: Production tab is selected.
The production kanban now reflects the new container size.

17. Old kanban cards have been cancelled and new cards created.

18. Outbound Broadcast Sequence
Do More
Synchronize Production schedules with Suppliers
Synchronize Production schedules with other Plants
Synchronize Material Moves with Production schedules
Know More
Track the status of specific components in the replenishment cycle.
Spend Less
Minimize work-in-process inventory
Use iSupplier to process kanban replenishments
Instructions for this slide <Delete for posting>
Choose 3-5 key features for your product to explain and provide screenshots w/instructions on how to demo.
Group them within the Corporate Messages categories if applicable:
Reduced Risk, Scalability, Better Information, Lower Cost of Ownership

19. Outbound Broadcast Sequence Minimize work-in-process inventory
Description
The presentation of some (generally unique) components to a flow line is dependent on the schedule. These component requirements must be communicated to suppliers and other sources after the production schedule has been established.
Who cares and why?
Operations wants to keep in-process inventory to a minimum. With optional components, they rely on procuring material once the production schedule has been fixed.
Suppliers rely on the timely communication of demand signals that they will use to synchronize their deliveries.

20. Flow Schedule has been established and ‘firmed’
Flow Schedule has been established and ‘firmed’. Scheduling is performed ‘n’ days beyond today to account for supplier lead time

21. Date is a stopping point in the process.
Run the Concurrent program ‘Auto Replenish’ off the Flow Scheduling Menu
Date is a stopping point in the process.
Build Sequence is a stopping point in the process.

22. Notice the ‘Non Replenishable’ Kanban card type
Notice the ‘Non Replenishable’ Kanban card type. Once this card is sourced, it will be set to ‘Full’ and put on hold so no other activity can take place.
The Quantity is set to the Flow Schedule quantity times the BOM usage amount.

23. A new attribute has been added to the Pull Sequences.
Here the values are used as search parameters.

24. The search returned all ‘Auto Request’ pull sequences
The search returned all ‘Auto Request’ pull sequences. The flag is available on the ‘Kanban’ tab.

25. Specific Kanban card has been created and sourced.
Initial status is Empty and Active.

26. A Purchase Requisition has been created and released against a blanket PO. Always Recommended!

27. The PO Release has changed the Kanban card status to ‘In Process’
The receipt changes the Kanban card status to ‘Full’ and ‘Hold’

28. Collaborate
With Suppliers

29. Collaborate with Suppliers
Supplier collaboration through a single Portal
Suppliers
Execution - Oracle iSupplier Portal
Involve suppliers in your procurement process
Suppliers view or maintain agreements, orders, ASNs, receipts, returns, quality, delivery and shipment schedules, invoices, and payments
Planning - Oracle Collaborative Planning
Involve suppliers in your planning process
VMI, including exceptions
Waterfall analysis - compare customer forecasts with supply commits
Global inventory and fulfillment visibility
User-configurable exceptions
Seamless integration with ERP
Generate replenishment orders in Oracle Purchasing
Share products, suppliers, order modifiers, ASLs, sourcing rules
Portal
Execution
Planning
Vendor Managed Inventory
Orders
Exceptions
Oracle Collaborative Planning also uniquely provides integrated planning, execution, and collaboration. When both the iSupplier Portal and Collaborative Planning are licensed, they are provided to suppliers in a single unified portal. This allows you to provide your suppliers one point of entry for planning and execution data.
ASNs
Forecasts
Receipts
Capacity
Invoices
Pegging
Waterfall
Analysis
Payments
Suppliers, products, order
modifiers, ASLs, sourcing

31. VMI and Consigned Inventory
Automate inventory replenishment with suppliers and customers
You
Customer
Supplier
VMI Agreement -
VMI Agreement
VMI Agreement
(with customer)
VMI Agreement
(with supplier)
Check inventory status
Send consumption advice
Ship items
Receive items
Let’s take a closer look at the VMI and consigned inventory processes that are supported via Collaborative Planning
Receive items
Ship items
Pay on receipt/use
Pay on receipt/use

32. Traditional Procurement vs. VMI
You
Supplier
Run plan
Create POs
Receive items
Match receipt and pay invoice
Create SOs
Ack
Ship items
Send invoices
You
Supplier
VMI Agreement - Establish inventory policy
Receive items
Pay on receipt
Check Inventory Status
Ship items
VMI Agreement

33. AutoCreate VMI Shipment
VMI Flow
Clerk AP
Invoice match
Buyer
AutoCreate VMI Shipment
Plant
Mgr
Receive VMI Stock
Consume
Supplier
Create
Replenish.
Request
Ship
Goods
Create Invoice

34. Create Consumption Advice Receive consigned stock
Consignment Flow
Clerk AP
Invoice match
Buyer
Create
Consigned
Shipment
Create Consumption Advice
Plant
Mgr
Receive consigned stock
Consume
Consume
Consume
Supplier
Ship
Goods
Create Invoice

35. Create Consumption Advice
VMI and Consigned Flow
Clerk AP
Invoice match
Buyer
AutoCreate
Shipment
Create Consumption Advice
Plant
Mgr
Receive stock
Consume
Supplier
Create Replenish
Signal
Ship
Goods
Create Invoice

36. Vendor Managed Inventory
Capability
Using the Approved Supplier List (ASL), enable a given item/supplier/supplier site for VMI
Provide minimum and maximum values for maintaining inventory levels
Supplier can optionally create blanket releases in Oracle Purchasing.

37. Vendor Managed Inventory
Capability
Trigger replenishments when available inventory falls below minimum levels
Send notification to the planner of that item
Available inventory equals (on-hand + requisitions + POs + ASNs + receipts)
Suggest a replenishment quantity that equals (maximum – available inventory)
Supplier and customer monitor inventory levels using the inventory status screen

38. Vendor Managed Inventory
Example
You
Vision
(M1)
Vision
(S1)
Item: CM66354
Min: 1000
Max: 5000
Item: CM66354
Min: 1000
Max: 10000
CM66354
Allied Manufacturing,Santa Clara
Supplier

39. Vendor Managed Inventory
Blanket PO Established

40. Vendor Managed Inventory
Item enabled for VMI at the Supplier-Site level

41. Vendor Managed Inventory
Schedule the VMI Replenishment Engine
Schedule VMI Replenishment Engine
Provide Replenishment Time Fence (RTF) multiplier
Supplies that fall within the time period [RTF x Processing Lead Time] are considered as available inventory
Example: RTF multiplier = 1
On-hand
PO1
PO2
PO3 t
1 x Processing Lead Time
Total Supply = on-hand + PO1 + PO2

42. Vendor Managed Inventory
View replenishment notification
Supplier receives notification seeking approval of replenishment

43. Vendor Managed Inventory
Viewing replenishments
Suggested Replenishment Quantity,
Replenishment Quantity,
In process quantity
Forecast:

44. Vendor Managed Inventory
Inventory Status 1.
on-hand = 0; on-order qty *= 0 2.
on-hand < minimum; on-order = 0 3.
minimum <on-hand < maximum; on-order = 0 4.
minimum < on-hand + on order < maximum ; on-hand < minimum 5.
on-hand < minimum and onhand + on-order > maximum
on-hand > maximum; on-order = 0 6. 7.
on-hand = 0 ; minimum < on-order < maximum
* on-order quantity = Requisitions + PO + In transit + Receipt

45. Vendor Managed Inventory
Creating Advanced Shipment Notices

46. Vendor Managed Inventory
Receiving a VMI Shipment

47. Vendor Managed Inventory
Viewing VMI on hand

48. Vendor Managed Inventory
Viewing VMI requisitions and releases

49. Consigned Stock Features and Benefits Single receiving interface
Inventory valuation, A/P accrual and item cost are not affected by consigned stock
Co-mingle consigned and regular stock
Full consigned stock visibility and audit
On line supplier collaboration

52. Consume Consigned Stock
Features and Benefits
Explicit transfer to regular stock
Rule based implicit consumption
Use material regardless of consigned status
Flexible and secure
Affect inventory valuation, A/P accrual and item cost
Current pricing
Drive latency out of the supply chain by delaying the lock-in of costs

53. Consumption Advice
Features and Benefits
Automatically generated blanket release marked as a consumption
Closed for receiving and not updateable
Summarizes consumption transactions according to flexible billing cycles
Simplify control and administration
Notification vehicle for the supplier
Basis for invoicing process

55. Consumption Invoicing
Features and Benefits
Consumption advices are invoiced like other purchasing documents
Control invoices received from the supplier
No additional training needed for AP users
Suppliers can submit matched invoices through iSupplier Portal
Minimize the invoice processing costs

56. Pay on Use
Features and Benefits
Automatically generate approved invoices based on the consumption advice
Allows the buyer to self-bill the consigned stock usage
Minimize administrative overhead for both buyer and seller while preserving full audit of the consigned stock
Based on the Pay on Receipt infrastructure

57. Monitoring Supplier Performance
Oracle provides multiple tools for monitoring supplier performance:
iSupplier Portal
Daily Business Intelligence
Balanced Scorecard

61. Consigned VMI with Customers
Definitions
Vendor Managed Inventory - You manage inventory at your customer’s sites
Monitoring of on-hand
Replenishment
Consigned - Pay-on-use
Material ownership remains with you until it is consumed by your customer

62. Customer Consigned VMI
Key capabilities
Establish VMI replenishment policies (min/max, ROP/ROQ)
Receive forecasts, on hand from customers
VMI dashboard
Recommend VMI replenishments
Execute shipments to customers
Transfer ownership / request payment on actual use by customer
You
Customer
VMI Agreement -
VMI Agreement
Post forecast,
consumption
Receive items
Ship items
Consigned VMI with Customers Is defined as the process that allows you to manage inventory at your customer’s sites (monitoring of on-hand, as well as the replenishment), and to operate a consigned inventory (pay-on-use) scenario where the material ownership remains with you until it is consumed by the customer. Traditionally, this process is highly laborious and transactional oriented and provides little visibility into the customer’s inventory and demand position. It is prone to stock outs and increased expediting costs. What you want to do is move to a more automated planning and execution process.
You will typically use a customer’s forecast as input to your consensus forecasting process; your own consensus forecast is input to your supply planning process, which generates the replenishment orders. On-hand at your site increases through fulfillment of the replenishment orders. This on-hand can then be used by the VMI execution process.
Consigned VMI programs deliver significant benefits to both you and your customers. Key among these are inventory reduction, reduction in lead times, improved fill rates, and increasing your flexibility to react to changes in demand. Consigning the material ensures that your customer’s working capital outlay is reduced.
Your ability to consign material to customers also raises the competitive bar within your industry, and will contribute to a deeper relationship with your customers.
Pay on use

92. Q
&
Q U E S T I O N S
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