Seiban Manufacturing - Enable Trackability in your Supply Chain!
Continuing on the ETO Series, I will discuss about the concept of Seiban, How it works and the key business requirements in Build To Order (BTO) Industry that can be handled in Oracle EBS Seiban solution. Another prominent ERP product that addresses Seiban requirements in the Industry is Glovia from Fujitsu.
What is Seiban?
The Japanese methodology of separation of inventories using an identifying number where the number is attached to on-hand Inventory, purchase orders and manufacturing jobs on supply side to identify them as belonging to a particular customer order, contract or project. This identifying number is called Seiban derived from Sei meaning "Manufacturing" (or Production) and Ban meaning "Number."
In most of the manufacturing scenarios, materials and resources are allocated to production orders based on their urgency of the customer orders which does not work well for Build To Order manufacturers. In Build-to-order manufacturing, the key requirement is to track and segregate materials and activities for specific customer orders which enable visibility and trackability of the customer order throughout the manufacturing and supply chain cycle.
How Seiban works?
A unique identification number, the Seiban number is allotted to a particular customer order and subsequent supply orders, purchased materials, activities and services performed for that customer order inherit the Seiban number to enable trackability.
The key features that Oracle offers for implementing a Seiban manufacturing system are,
1.Ability to link and track Demand and supply for Customer Order/Project/Contract (Seiban)
2.Tracking Seiban Execution in shop floor and supply chain.
3.Providing Identification and allocation of Inventory for Seiban;
4.Cost tracking for specific Seiban
5.Ability to view, track, report Seiban specific activities and detailed drill-downs
6.Ability to handle material transfers across Seibans including borrow/pay back and mass transfers
7.Ability to support Lean practices and ATO/PTO business scenarios
8.Visibility to Seiban profitability
9.Integration with Quality systems - To track back defects in a customer order (Seiban).
Here are the few limitations in Oracle EBS in supporting a Seiban system,
1. No single view for all Seiban costs and revenues without Oracle projects installation
2. Ability to use WBS/ Tasks not possible.
3. Oracle does not support reservations at Seiban level.