Re: Kan Ban

["Harry Nicholl" <HarryNicholl@xxxxxxxxxxx>]

You may not have to redo your BoM's and routings if you set your lower level
components to be phantoms. The final assembly shop order will blow through
the phantoms, (assuming they do not have inventory), all the way back to raw
material.  You will loose the effects of putting labor and overhead into
inventory for those items. If that is a major concern it can be compensated
for through some programming.

If your intention is that these lower level components are controlled by
Kanban then we need to do a little thinking. MRP is a planning program that
determines what, when and how much of a product is required. It then passes
this information to Shop Floor Control or Purchasing for execution. With
Kanban you predetermine what and how much, and allow the inventory level to
initiate the execution of when.

When you cross that line and decide that an item should be controlled by
Kanban you are replacing one planning / execution system (MRP), with
another, (Kanban). Kanban is a manual system that does not require any
system visibility to operate. Do not mix Kanban and MRP on the same part at
the same point in time. Create a planner code for Kanban items, and then
ignore all reports for that planner code.

There are various other quirks that need to be adjusted for when converting
to Kanban, some of which have discussed before i.e capacity planning,
periodic review of your quantities, MRP items that need inventory
information from Kanban parents, accounting for labor reporting etc. etc.

If I can answer any other questions let me know.

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