Kanban execution includes all activities for managing steady-state production replenishment on the shop floor. There are three types of Kanban execution, distinguished by the signal type that you select for the circuit:
| Signal Type | Description |
| Visual (Not Electronic) | Replenishment signals are communicated manually rather than electronically through the system. No order, schedule, or transport tasks are launched. Backflush typically is used to account for component parts. Unscheduled production receipts are used to account for completed production. |
| Electronic | Replenishment signals are communicated electronically through the system rather than manually. You begin the process by creating a Kanban request in the system. This request is passed to the ordering system appropriate to the circuit: Move circuit = Inventory Transport Tasks; Production circuit = Shop Requisitions, Orders, or Production Schedules; Supplier circuit = Purchase Requisitions, Orders, or Supplier Schedule Call-Off. The ordering system is controlled using the combination of Part Type and Supply Code defined for the Inventory Part record. Note: DOP is not a valid replenishment mechanism for Kanban. |
| Automatic (Reorder Point) | The system has complete control over replenishment, continuously monitoring the inventory level at the usage location for the circuit. When inventory drops below a specified level, the system automatically signals the need for replenishment. Although not a traditional Kanban concept, this hands-off method of replenishment is appropriate for in-control component stocks, e.g., small amounts of scrap. Typically, backflush reduces the quantities of component parts until the reorder point is reached. The system then sends a replenishment signal to the appropriate warehouse, production line, or supplier. |
Electronic or Automatic (Reorder Point) replenishment is always a closed-loop system. To function properly, it must follow this cycle: