KANBAN Execution- Step by Step Approach

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KANBAN is a process by which material can be replenished as per the requirement. KANBAN is a Japanese technology for material replenishment. KAN- means card and BAN means signal. Hence understanding is card which will give the signal for replenishment stock.

KANBAN will have plastic bins and cards. The card will hold the material no, storage location, Bar code, material qty etc and will be kept on the bin once the bin is full. Once the bin is empty, then the card will be on the board. Like that multiple card will be there for a single material with proper serial no.

KANBAN is having two master data.

1.    Control cycle

2.    Supply area

First of all supply area will be created with storage location and responsible person.

T code PK05. Put the plant and create new entry.



Put storage location and responsible person and save the data.



Go to MMSC



Exclude the storage location from planning(as this is not required to plan through MRP). We can exclude the storage location from customizing also. In this case all the material in the storage location will be excluded for planning.



Now the control cycle has to be created.

T code PK01

Put material, plant, supply area and select classic KANBAN.



Put no of KANBAN (means no of  bins), No of KANBAN quantity and maximum empty allowed.



Select production type also (inhouse/external).

This can be done through control cycle maintenance also. T code PKMC. To create new click on 



Now check MD04 screen



Total stock is 63 and is excluded from MRP. This stock will be consumed in subsequent stage(in next stage)

Now check the status of the KANBAN bin. T code PK13N



Here three bins are full and two bins are in Wait status. Click    to see the legends.



Two important status of KANBAN is.

If Bins are made full- GR will be done

If Bins are made empty-Procurement proposal will be created (NOT GI WILL BE DONE)

GI is being done through backflush.

In actual situation bins are being scanned through RF device and scanning is being done one the Bins are empty or Full.

But here we will do through this tab.



Let’s select one bin and make it empty by



One KANBAN processed and Bin became RED. This means Bin is empty.

Now check MD04. One Production order created (as empty means one proposal will be created).



Make another Bin empty is same process and see MD04 screen.





Release both the order. The order type of KANBAN is PP05.





Double click on the Bin and you can see the details with order created.



Check the stock in MMBE



Stock is 63. Now select one empty Bin in make it Full



The Bin became green.



Check the stock



Its become 70 unrestricted. Hence 7 nos GR is happened.

Repeat the process and check the qty .More 7 no GR happened



Check MD04. No proposal exist (for all orders GR happened).



Few more useful T codes

PK11: Plant overview.





PK18: For each material production order, DOC no on which the production order got posted can be seen. Status of KANBAN container will be displays also.

PK31: Error in KANBAN can be checked. Select any error line and click on Bell. You can change the error status.

PK09: KANBAN can be locked (when the KANBAN is not is used/Bin is damaged).