Trey Research: Mixed-Mode Production, Reservations, and a Silent Kanban
Trey Research assembles industrial controllers. About 80% of volume is three standard models built to stock; the rest are configure-to-order panels with customer firmware and enclosure labeling. Production control currently uses production orders for everything. Standard-model orders reserve components weeks before they are needed, starving configure-to-order jobs, and the company has no visibility into which planned orders are firm. A pilot fixed-quantity kanban never triggers replenishment; withdrawals were recorded from a floor stock location that is not tied to the kanban rule. Released products have no default order settings, so manually created production orders always use a seven-day lead time regardless of the route. Planners want mixed-mode production, with lean replenishment for standard models and production orders for configure-to-order panels, plus tighter control over reservations and a clear view of firm work.
1. Recommend the production strategy for the two segments and the default order settings that support it.
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Split the strategy by segment. For the three standard models, use lean replenishment: fixed-quantity or event kanbans tied to the floor stock and production input locations, because demand is steady and build-to-stock. For configure-to-order panels, keep production orders created from the sales order with a make-to-order coverage, because firmware and labeling are customer-specific. Set default order settings on each released product: default order type Kanban for standard models and Production for CTO panels; planned order type matching; production lead time derived from the route rather than the current fixed seven days; and quantity multiples that reflect handling. Default order settings matter because they drive manually created orders and master planning when no coverage rule overrides them. Firm planned orders for the CTO segment so planners can see committed work, and use kanban for standard replenishment. This mixed-mode design matches the demand pattern instead of forcing every item through production orders.
2. How should inventory reservations be configured to stop standard-model orders from reserving too early without blocking CTO components?
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Change reservation timing rather than removing reservations. On standard-model BOM lines, set automatic reservation to Start or Manual, and set the production control parameter so orders are not reserved at creation. Reserve at release or at start, close to consumption, so standard orders do not tie up components for weeks. For CTO panels, use marking or pegging from the sales order to the production order so the specific customer demand reserves the right supply, and keep automatic reservation at creation or release. Configure a reservation hierarchy that reflects the real issue sequence, for example site, warehouse, location, and batch, so partial reservation is sensible. The reasoning is that early automatic reservation is a policy choice, not a requirement; shifting it later releases component availability. Test by creating a standard order and a CTO order for the same component and confirm only the CTO order reserves immediately.
3. Why might the fixed-quantity kanban not trigger, and what should be checked and changed?
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A fixed-quantity kanban triggers when the on-hand quantity at its withdrawal location falls below the minimum. If withdrawals are posted from a floor stock location that is not the kanban's withdrawal location, the kanban quantity never decrements and no replenishment signal is created. Check that the kanban rule is assigned to the correct item, warehouse, and production input location; that the withdrawal location is included in the kanban flow; and that the fixed quantity, minimum warning quantity, and replenishment quantity are consistent. Also verify the kanban's activity setup and that the kanban is not blocked or unassigned. The fix is to align the physical withdrawal posting with the kanban rule, not to lower the minimum. After correcting the location, process a few withdrawals and confirm the kanban card moves to In progress and a replenishment kanban is created.