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