Kanban and Subcontract Operations

Our employer has opted down this "Lean" path. The way we cope is by having a Part number placeholder in the bom for the subcontract - and have no true subcontract operation. The place holder part number has a $1 value, so if subcontract for a part costs $8.60, then we use x8.6 of the placeholder.

The major drawback of this method is traceability. I do not endorse this method, unless you have a very very special relationship with your outsource partner. There is no longer an order number, and no longer a direct link between the purchase orders and the job.

Put as much thought into tracking as possible, because Vantage will suddenly become rather impotent if you go this way.


--- In vantage@yahoogroups.com, robertb_versa@... wrote:
>
> It doesn't. PartRev methods only support reference to the subcontract supplier - not to a specific pre-established linked subcontract PO.
> Kanban Receipts are reported after production is complete (automatically creating the job, backflushing all materials & OPs labor, and receiving to specified receive to whse-bin).
> No way (I'm aware of) to get at the 'black box' app BO methods involved to establish a link to the needed subcontract PO (that probably - with some PO entry tinkering - could be established in advance to act as the cost chain).
> If (for kanban items) you abandon the subcontract PO paradigm and treat it like a stock PO (kanban PO+service spec code as purchased pn), you could have a 3 step kanban process.
> 1. Kanban card triggers raw mtl transfer to supplier against an open, pre-established PO line rel representing a month or quarter's est qty's.
> 2. Partial receipt puts needed 'stock' qty in stock.
> 3. Kanban rcpt is reported (in same qty - fully consuming PO rcpt qty via backflush).
> Other option might be to train someone (in production) to create a quick job, eng/sched/rel & trigger true subcontract PO entry/link. Setup method to backflush everything possible. (Not true kanban but maybe 'kanban enough' for your process & skill sets.)
> Rob Brown
>
>
> --- Original Message ---
> From:"dardelano" <ddelano@...>
> Sent:Thu 11/5/09 8:25 am
> To:vantage@yahoogroups.com
> Subj:[Vantage] Kanban and Subcontract Operations
>
> Our Materials Manager (soon to join this group) is looking at the use of Kanban for some of our products. Does anyone have advice/best practices on how this works when the product also has a subcontract operation?
>
Our Materials Manager (soon to join this group) is looking at the use of Kanban for some of our products. Does anyone have advice/best practices on how this works when the product also has a subcontract operation?
It doesn't. PartRev methods only support reference to the subcontract supplier - not to a specific pre-established linked subcontract PO.
Kanban Receipts are reported after production is complete (automatically creating the job, backflushing all materials & OPs labor, and receiving to specified receive to whse-bin).
No way (I'm aware of) to get at the 'black box' app BO methods involved to establish a link to the needed subcontract PO (that probably - with some PO entry tinkering - could be established in advance to act as the cost chain).
If (for kanban items) you abandon the subcontract PO paradigm and treat it like a stock PO (kanban PO+service spec code as purchased pn), you could have a 3 step kanban process.
1. Kanban card triggers raw mtl transfer to supplier against an open, pre-established PO line rel representing a month or quarter's est qty's.
2. Partial receipt puts needed 'stock' qty in stock.
3. Kanban rcpt is reported (in same qty - fully consuming PO rcpt qty via backflush).
Other option might be to train someone (in production) to create a quick job, eng/sched/rel & trigger true subcontract PO entry/link. Setup method to backflush everything possible. (Not true kanban but maybe 'kanban enough' for your process & skill sets.)
Rob Brown


--- Original Message ---
From:"dardelano" <ddelano@...>
Sent:Thu 11/5/09 8:25 am
To:vantage@yahoogroups.com
Subj:[Vantage] Kanban and Subcontract Operations

Our Materials Manager (soon to join this group) is looking at the use of Kanban for some of our products. Does anyone have advice/best practices on how this works when the product also has a subcontract operation?