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Kanban process

 

The KANBAN method for controlling production and material flow is based on the actual stock quantity in production. Material that is required on a regular basis is continually provided in small quantities in production. Replenishment or the production of a material is only triggered when a higher production level actually requires the material. This replenishment is triggered directly in production using previously maintained master data.

Master data

1. Create production supply area using Tcode PK05

Enter the plant and continue

Select new entries, Enter plant, supply area, storage location and person responsible

Save the production supply area  

     

                                       

2. Create finished product using Tcode MM01

Enter planning strategy as 10 (make to stock) and availability check as 02, save the material.

  

3. Create semi-finished material for which the Kanban process will be in-house, using Tcode MM01

Enter storage location for EP (where the material will be stored after its procurement), Default supply area

(From where the material will get utilized for production) and production storage location (Storage location assigned to supply area) and save the material

     

                                       

4. Create semi-finished material for which the Kanban process will be in-house, using Tcode MM01

Enter storage location for EP (where the material will be stored after its procurement), Default supply area (From where the material will get utilized for production) and production storage location (Storage location assigned to supply area) and save the material

     

                                       

5. Extend both the semi-finished materials for production storage location using Tcode MM01

Here enter the storage location as production storage location and enter, system will extend the material for production storage location also, save both the materials

     

                                       

 

6. Create purchase info record for vendor material combination, for semi-finished material with external procurement using Tcode ME11

Enter vendor, material, plant and purchasing organization.

 

     

                                       

Here in organization data tab, enter planed delivery time, purchasing group, standard quantity and net price then save the record.

7. Create status sequence for Kanban

     

                                      

Here select ‘New entries’ tab

Enter the required indicator which specifies the following for the status (e.g. EMPTY) in the corresponding status sequence:

  • whether it is mandatory +
  • whether it is recommended *
  • Whether it is optional .
  • whether it is prohibited

Save the status sequence.

     

                                          

8. Create replenishment strategy

a. Create in house replenishment strategy

Here enter plant and replenishment strategy.

Select the control type as ‘working with production orders’

Select required order type, in this case PP05

Enter require goods movement for goods receipt, in this case 101

And planed orders as ‘No planed orders’ and save the strategy

     

                                       

  

b. Create in external procurement replenishment strategy


Enter plant and strategy

Enter control type as ‘working with purchase orders’ and order type as ‘NB’

                                               

Enter goods movement for goods receipt as 101 and save the replenishment strategy

9. Create control cycle using Tcode PK01

a. Create control cycle for in- house Kanban process

Enter material plant and supply area and select ‘classic Kanban’ 

     

                                       

 

Enter number of Kanban (containers), maximum empty and Kanban quantity.

Enter in-house production replenishment strategy and person responsible

On flow control tab, enter the status sequence and save the control cycle

     

                                       

  

b. Create control cycle for external procurement Kanban process

Enter number of Kanban (containers), maximum empty and Kanban quantity.

Enter external procurement replenishment strategy, Purchasing org and vendor for external procurement On 

     

                                      

   

Process steps for Kanban process

1. Set the Kanban to EMPTY and FULL by using Tcode PK13N (Demand source overview) and PK12N (Supply source overview)

     

                                      

Enter plant, production supply area, person responsible and production storage location and enter

a. Kanban for In- house production

Select first cycle and the Kanban container, select ‘To EMPTY’ tab

System will change the status of Kanban container from full to empty (color will change from green to red)

     

                                      

  

Now double click on the Kanban container, here the system will show the production order that got generated for in-house production of material

Now go to production order change using Tcode Co02 and release the order.

     

                                       

Now do the goods issue for production order from the issue storage location using Tcode MB1A

Do the confirmations of operation for production order using Tcode CO11N

     

                                       

  

After saving the confirmation, system will automatically post the goods issue in production storage location.

Now go to Tcode PK13N n system will automatically change the status of container as FULL

b. Kanban for external procurement

Select the Kanban cycle and container and set status as  empty by selecting ‘To Empty’ tab

Once the status is changed to empty (Red color), system will generate the purchase order for procurement from vendor.

     

                                      

  

Now go to ‘supply source overview’ using Tcode PK12N, Enter person responsible, plant and vendor and enter

Select the Kanban cycle and container and select ‘status in transit’ tab.

 

The status will get changed from ‘EMPTY’ to ‘IN TRANSIT’ (from red color to yellow)

     

                                       

Now again go to demand supply overview using Tcode PK13N

Select the cycle and container and change the status to ‘FULL’ by selecting ‘To full’ tab, this will trigger the goods receipt of material from vendor (yellow color to green)

By double clicking on Kanban container the material and accounting documents can be checked if necessary

2. Create PIR of finished product using Tcode MD61

Enter the required quantity on desired date and save the PIR

3. Material requirement planning of finished product using Tcode MD02

Enter material and plant,

     

                                            

Go to stock/requirement list using Tcode MD04 and check the order report.

4. Conversion of planed order to production order (co02) and order confirmation (CO11N) for finished product

Convert the planed order to production order, release the order and save

     

                                           

Now confirm the order operations using Tcode CO11N

     

                                      

 

Save the confirmation, system will back flush the components and goods receipt of finished product will get posted automatically as mentioned in control key.

5. Check the stock overview using Tcode MMBE

Finished material stock will get updated in unrestricted use stock at the given storage location

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