LO235 KANBAN LO235 - · PDF fileGeneral KANBAN Procedure ... Production Orders/Planning with MRP

LO235 KANBAN LO235

Release 630 19.09.2003

LO235 KANBAN ......................................................................................................................................................... 0-1

Copyright .................................................................................................................................................................. 0-2

Production Planning .............................................................................................................................................. 0-3

Prerequisites .......................................................................................................................................................... 0-4

Target Group ......................................................................................................................................................... 0-5

Introduction: Contents ............................................................................................................................................... 1-1

Course Goal .......................................................................................................................................................... 1-2

Course Objective(s) ............................................................................................................................................... 1-3

Course Content ...................................................................................................................................................... 1-4

Overview Diagram 1 ............................................................................................................................................. 1-5

Main Business Scenario ........................................................................................................................................ 1-6

System Example PC Production Plant 1200 ......................................................................................................... 1-7

System Example: Production Lines 1 and WIP Production .................................................................................. 1-8

System Example: Production Lines 3 and 5 .......................................................................................................... 1-9

KANBAN Overview: Contents ................................................................................................................................. 2-1

Kanban Overview: Unit Objectives ...................................................................................................................... 2-2


Kanban Overview: Business Scenario .................................................................................................................. 2-4

KANBAN ............................................................................................................................................................. 2-5

The KANBAN Card .............................................................................................................................................. 2-6

Push Principle / Pull Principle Comparison .......................................................................................................... 2-7

MRP and KANBAN: A Comparison .................................................................................................................... 2-8

KANBAN Philosophy: Tabular Summary ............................................................................................................ 2-9

Business Management Environment ................................................................................................................... 2-10

Advantages of an 'Electronic' KANBAN ............................................................................................................ 2-11

KANBAN Overview: Summary ......................................................................................................................... 2-12

KANBAN Master Data: Contents ............................................................................................................................. 3-1

KANBAN Master Data: Topic Objectives ............................................................................................................ 3-2


KANBAN Master Data: Business Scenario .......................................................................................................... 3-4

Supply Area .......................................................................................................................................................... 3-5

Kanban Control Cycle ........................................................................................................................................... 3-7

Supply Sources in the KANBAN Procedure ......................................................................................................... 3-9

Using Control Cycles to Organize Replenishment for Production ...................................................................... 3-10

Organization of Production ................................................................................................................................. 3-11

KANBAN Master Data: Summary ..................................................................................................................... 3-12

Master Data Exercises ......................................................................................................................................... 3-13

Master Data Solutions ......................................................................................................................................... 3-16

General KANBAN Procedure ................................................................................................................................... 4-1

General KANBAN Procedure : Unit Objectives ................................................................................................... 4-2


General KANBAN Procedure: Business Scenario ................................................................................................ 4-4

KANBAN Status Sequence ................................................................................................................................... 4-5

Setting the Kanban to EMPTY ............................................................................................................................. 4-6

Setting Kanban to FULL ....................................................................................................................................... 4-7

Posting Goods Receipt Manually .......................................................................................................................... 4-8

Setting the Kanban Status ..................................................................................................................................... 4-9

Kanban Board ..................................................................................................................................................... 4-10

Print Kanban Cards Once Only (Reusing Cards) ................................................................................................ 4-11

Print Kanban Cards Repeatedly Not Reusing Cards) .......................................................................................... 4-13

Status Sequence - All Possibilities ...................................................................................................................... 4-14

Logical Stock / Physical Stock (1) ...................................................................................................................... 4-15

Logical Stock / Physical Stock (2) ...................................................................................................................... 4-16

Adjusting to Variable Requirements ................................................................................................................... 4-17

General KANBAN Procedure: Summary ........................................................................................................... 4-18

General KANBAN Procedure Exercises ............................................................................................................. 4-19

General KANBAN Procedure Solutions ............................................................................................................. 4-24

Replenishment Strategies: Contents .......................................................................................................................... 5-1

Replenishment Strategies: Unit Objectives ........................................................................................................... 5-2


Replenishment Strategies: Business Scenario ....................................................................................................... 5-4

KANBAN Without / With MRP ........................................................................................................................... 5-5

KANBAN without MRP: Unit Objectives ............................................................................................................ 5-6

Overview: KANBAN without MRP ..................................................................................................................... 5-7

Requirements Forecast using Long-Term Planning .............................................................................................. 5-8

Replenishment Strategies: KANBAN without MRP ............................................................................................ 5-9

Master Data Replenishment Strategies without MRP: Material Master ............................................................. 5-10

Procedure for Storage Location/Supply Area Determination.............................................................................. 5-11

Replenishment Strategies: External Procurement (KANBAN without MRP) .................................................... 5-13

Processing with Purchase Orders ........................................................................................................................ 5-14

Process with Schedule Lines ............................................................................................................................... 5-16

Process with Stock Transfer Orders / Stock Transport Scheduling Agreements (Plant to Plant) ....................... 5-17

Activities in External Procurement ..................................................................................................................... 5-18

Replenishment Strategies: In-House Production (KANBAN without MRP) ...................................................... 5-19

Processing with Cards (Manual KANBAN) ....................................................................................................... 5-20

Processing with Planned Orders (Run Schedule Quantities) for Repetitive Manufacturing ............................... 5-21

Processing with Production Orders for Discrete Manufacturing ......................................................................... 5-22

Integration Cost Accounting ............................................................................................................................... 5-23

Activities in In-House Production ....................................................................................................................... 5-24

Replenishment Strategies: Stock Transfer (KANBAN without MRP) ............................................................... 5-25

Stock Transfer with Reservation ......................................................................................................................... 5-26

Direct Transfer Posting ....................................................................................................................................... 5-27

Replenishment from WM Based Storage Locations using Transfer Requirements (1) ....................................... 5-28

Replenishment from WM-Based Storage Locations using Transfer Requirements (2) ...................................... 5-30

Stock Transfer with Integrated Stock Determination (Batches, Consignment)................................................... 5-31

Activities in Stock Transfer ................................................................................................................................ 5-33

KANBAN with MRP: Unit Objectives ............................................................................................................... 5-34

Overview: KANBAN with MRP ........................................................................................................................ 5-35

Replenishment Strategies: KANBAN with MRP ............................................................................................... 5-36

Master Data: Replenishment Strategies with MRP:Material Master .................................................................. 5-37

Container Control for In-House Production, External Procurement, Stock Transfer .......................................... 5-38

External Procurement: Replenishment with Summarized JIT Calls ................................................................... 5-40

Grouping Summarized JIT Calls ......................................................................................................................... 5-41

Message Transmission of Summarized JIT Calls ............................................................................................... 5-42

Goods Receipt with Reference to Sum. JIT Call ................................................................................................. 5-43

Production Orders/Planning with MRP ............................................................................................................... 5-44

Replenishment Strategies: Summary .................................................................................................................. 5-45

Replenishment Strategies Exercises .................................................................................................................... 5-46

Replenishment Strategies Solutions .................................................................................................................... 5-65

Kanban Calculation: Contents ................................................................................................................................... 6-1

Kanban Calculation: Unit Objectives .................................................................................................................... 6-2


Kanban Calculation: Business Scenario ................................................................................................................ 6-4

Kanban Calculation ............................................................................................................................................... 6-5

Dependent Requirements as a Basis for the Kanban Calculation ......................................................................... 6-7

Smoothing Dependent Requriements for Kanban Calculation .............................................................................. 6-9

Supply Area Determination Procedure ............................................................................................................... 6-10

Formula for the Automatic Kanban Calculation ................................................................................................. 6-12

Automatic Kanban Calculation ........................................................................................................................... 6-13

Quantity per Kanban / Number of Kanbans ........................................................................................................ 6-14

Kanban Calculation: Summary ........................................................................................................................... 6-15

Kanban Calculation Exercises ............................................................................................................................. 6-16

Kanban Calculation Solutions ............................................................................................................................. 6-20

Special Procedures: Contents .................................................................................................................................... 7-1

Special Procedures: Unit Objectives ..................................................................................................................... 7-2


Special Procedures: Business Scenario ................................................................................................................. 7-4

Cross-plant KANBAN .......................................................................................................................................... 7-5

Procurement and Withdrawal to Cost Center:1) Withdrawal ................................................................................ 7-6

Procurement and Withdrawal to Cost Center:2) Procurement .............................................................................. 7-7

KANBAN with SD Delivery (1) ........................................................................................................................... 7-8

KANBAN with SD Delivery (2) ........................................................................................................................... 7-9

Separate Goods Receipt ...................................................................................................................................... 7-10

Independent Supply Source ................................................................................................................................. 7-11

Defined Status Sequence ..................................................................................................................................... 7-12

Define your own Status Activities ...................................................................................................................... 7-13

Quantity Signal ................................................................................................................................................... 7-14

One-Card KANBAN ........................................................................................................................................... 7-15

Trigger Replenishment at Status IN USE............................................................................................................ 7-16

Trigger Replenishment at Status WAIT .............................................................................................................. 7-17

Trigger Replenishment with Trigger Quantity .................................................................................................... 7-18

Event-Driven KANBAN ..................................................................................................................................... 7-19

Internet KANBAN .............................................................................................................................................. 7-20

Internet KANBAN Screen Print .......................................................................................................................... 7-21

Special Procedures: Summary ............................................................................................................................. 7-23

Special Procedures Exercises .............................................................................................................................. 7-24

Special Procedures: Solutions ............................................................................................................................. 7-33

Error Processing: Contents ........................................................................................................................................ 8-1

Error Processing: Unit Objectives ......................................................................................................................... 8-2


Error Processing: Business Scenario ..................................................................................................................... 8-4

Error Detection and Analysis ................................................................................................................................ 8-5

Kanban Correction ................................................................................................................................................ 8-6

Reversing a Kanban Signal ................................................................................................................................... 8-7

Error Processing: Summary .................................................................................................................................. 8-8

Error Processing Exercises .................................................................................................................................... 8-9

Error Processing Solutions .................................................................................................................................. 8-11

Evaluations: Contents ............................................................................................................................................... 9-1

Evaluations: Unit Objectives ................................................................................................................................. 9-2


Evaluations: Business Scenario ............................................................................................................................. 9-4

Options Available for Evaluations ........................................................................................................................ 9-5

LIS: Key Figures .................................................................................................................................................. 9-6

Evaluations: Summary .......................................................................................................................................... 9-7

Appendix ................................................................................................................................................................. 10-1

Example of a Kanban Card ................................................................................................................................. 10-2

S A P A G 1 9 9 9

L O 2 3 5 K A N B A N

S P A G S

L O 2 3 5L O 2 3 5

K A N B A NK A N B A N

R/3 System

Release 4.6C

September 2000

5004 1986

S A P A G 2 0 0 2

C o p yrig h t 2 0 0 2 S A P A G . A ll r ig h ts re s e rv e d .

N o p a rt o f th is p u b lic a tio n m a y b e re p ro d u c e d o r tra n s m itte d in

a n y fo rm o r fo r a n y p u rp o s e w ith o u t th e e x p re s s p e rm is s io n o f

S A P A G . T h e in fo rm a tio n c o n ta in e d h e re in m a y b e c h a n g e d

w ith o u t p rio r n o tic e .

C o p yrig h t

Notes on Trademarks:

Some software products marketed by SAP AG and its distributors contain proprietary software

components of other software vendors.

Microsoft®, WINDOWS

®, NT

®, EXCEL

®, Word

®, PowerPoint

®, and SQL Server

® are registered

trademarks of Microsoft Corporation.

IBM®, DB2

®, OS/2

®, DB2/6000

®, Parallel Sysplex

®, MVS/ESA

®, RS/6000

®, AIX

®, S/390

®, AS/400

®,

OS/390®,

and OS/400® are registered trademarks of IBM Corporation.

ORACLE® is a registered trademark of ORACLE Corporation.

INFORMIX®-OnLine for SAP and INFORMIX

® Dynamic Server

TM are registered trademarks

of Informix Software Incorporated.

UNIX®, X/Open

®, OSF/1

®, and Motif

® are registered trademarks of the Open Group.

HTML, DHTML, XML, and XHTML are trademarks or registered trademarks of W3C®, World Wide

Web Consortium, Massachusetts Institute of Technology.

JAVA® is a registered trademark of Sun Microsystems, Inc.

JAVASCRIPT® is a registered trademark of Sun Microsystems, Inc., used under license for technology

developed and implemented by Netscape.

SAP, SAP Logo, R/2, RIVA, R/3, ABAP, SAP ArchiveLink, SAP Business Workflow, WebFlow, SAP

EarlyWatch, BAPI, SAPPHIRE, Management Cockpit, mySAP.com Logo, and mySAP.com are

trademarks or registered trademarks of SAP AG in Germany and several other countries all over the

world. All other products mentioned are trademarks or registered trademarks of their respective

companies.

S A P A G 1 9 9 9

P ro d u c tio n P la n n in g

L e v e l 2 L e v e l 3

M a n u fa c tu r in g

P la n n in g &

E x e c u tio n fo r

D is c re te & R e p e titiv e

L O 0 5 0 5 d a ys

E n g in e e r in g

C h a n g e

M a n a g e m e n t

L O 9 8 0 3 d a ys

B a tc h

M a n a g e m e n t

L O 9 5 5 3 d a ys

K A N B A N

L O 2 3 5 2 d a ys

C la s s if ic a tio n

L O 9 8 5 3 d a ys

S p e c ia l F e a tu re s o f

L IS in P ro d u c tio n

L O 2 7 5 2 d a ys

L o g is t ic s In fo

P la n n in g

L O 9 3 5 2 d a ys

C A P C a lc u la t io n o f

S ta n d a rd V a lu e s

L O 7 2 0 2 d a ys

R e p e tit iv e


L O 2 2 5 3 d a ys

C a p a c ity P la n n in g

L O 2 3 0 5 d a ys

L o g is t ic s In fo rm a tio nS ys te m (L IS )R e p o rt in g

L O 9 3 0 2 d a ys

B a s ic D a ta

P a rt 2

L O 2 0 6 3 d a ys

B a s ic D a ta fo r

D is c re te


L O 2 0 5 3 d a ys

P ro d u c tio n

O rd e rs

L O 2 1 5 5 d a ys

P ro d u c tio n

P la n n in g

L O 2 1 0 5 d a ys

V a r ia n t

C o n fig u ra tio n P a rt 1

L O 9 9 0 5 d a ys

V a r ia n t

C o n fig u ra tio n P a rt 2

L O 9 9 1 3 d a ys

For MM customers attending the course from the MM curriculum, exclusively to learn about processes

for external procurement and stock transfer (that is, with no interest in shop floor control), R/3

experience in purchasing and inventory management is the prerequisite for this course. The course

LO050 is not required in this case.

(C) SAP AG LO235 1-1

S A P A G 1 9 9 9

C o u rs e G o a l

C o u rs e O b je c tiv e (s )

C o u rs e C o n te n t

C o u rs e O v e rv ie w D ia g ra m

M a in B u s in e s s S c e n a rio

C o u rs e In tro d u c tio n

In tro d u c tio n : C o n te n ts


S A P A G 1 9 9 9

C o u rs e G o a l

P ro v id e s yo u w ith in fo rm atio n , fo r u s in g th e

K A N B A N p ro c e s s in P ro d u c tio n P la n n in g a n d

C o n tro l

A t th e c o n c lu s io n o f th is c o u rs e , yo u w ill b e

a b le to :

U s e th e in d iv id u a l re p le n is h m e n t s tra te g ie s in

K A N B A N

D e s c rib e c o n te x ts

M a k e s ys te m s e ttin g s in C u s to m iz in g

T h is c o u rs e


S A P A G 1 9 9 9

T h is c o u rs e p ro v id e s y o u w ith in fo rm a tio n a b o u t:

M a s te r d a ta in K A N B A N

R e p le n is h m e n t s tra te g ie s in K A N B A N

S p e c ia l p ro c e s s e s in K A N B A N

E rro r p ro c e s s in g in K A N B A N

E v a lu a tio n s in K A N B A N

C o u rs e O b je c tiv e (s )


S A P A G 1 9 9 9

U n it 6 K a n b a n C a lc u la tio n

U n it 7 S p e c ia l P ro c e d u re s

U n it 8 E rro r P ro c e s s in g

U n it 9 E v a lu a tio n s

U n it 1 In tro d u c tio n

U n it 2 O ve rv ie w K A N B A N

U n it 3 M a s te r D a ta

U n it 4 G e n e ra l P ro c e d u re

U n it 5 R e p le n is h m e n t S tra te g ie s

In tro d u c tio n

A p p e n d ix

C o u rs e C o n te n t



S A P A G 1 9 9 9

Y o u a re a m a n u fa c tu rin g c o m p a n y . In yo u r

p la n t 1 2 0 0 yo u p ro d u c e P C a s s e m b lie s .

In o rd e r to k e e p th e c o n tro l e ffo rt to a

m in im u m a n d to re d u c e s to c k s a n d le a d t im e s ,

yo u p la n to u s e th e K A N B A N p ro c e s s in th e

R /3 s ys te m fo r c e rta in m a te ria ls .

M a in B u s in e s s S c e n a rio


S A P A G 1 9 9 9

S ys te m E x a m p le P C P ro d u c tio n P la n t 1 2 0 0

P C fin a l a ss e m b ly o n

re p e tit iv e m a n u fa c tu rin g

p ro d u c tio n lin e T -L 1 # #

S DS D

P la n t 1 2 0 0 (D re s d e n )

S to r. lo c . P L 0 3

F in is h e d g o o d s

w a re h o u s e 0 0 0 2

M a te ria l

s to ra g e

lo c a tio n 0 0 0 1

S o ld -to

p a rty

K A N B A N - s to c k tra n s fe r


C o m p o n e n t p ro d u c tio n o n

K A N B A N - in -

h o u se

p ro d u c tio n


re p e tit iv e m a n u fa c tu r in g lin e T -L 5 # #

V e n d o r

S a le s o rd e rs


D isc re te

p ro d u c tio n

A sse m b ly o n re p e tit iv e

m a n u fa c tu rin g lin e T -L 3 # #

K A N B A N -

e x te rn a l

p ro c u re m e n t

Demonstration-Example Repetitive Manufacturing: In plant 1200 Personal Computers (PCs) and PC

assemblies are produced. Two production lines are for sub-assembly and one line is for final assembly.

Some components for the assembly production are procured externally, produced in-house and

transferred from the material storage location, using KANBAN. Components for the final assembly that

are not produced on the assembly production lines, are transferred from the material storage location

using KANBAN.

The descriptions of the data in the training system, as well as in the IDES system are as follows:

Material numbers:

T-F7## (IDES: R-1000) PC Maxitec R-375 (final assembly in make-to order production)

T-B5## (IDES: R-1110) Motherboard 375 (Assembly production at storage location)

T-B6## (IDES: R-1111) Alternative motherboard 3100 (assembly production at storage

location)

T-T7## (IDES: R-1230) BIOS (for KANBAN external procurement with purchase order)

T-B7## (IDES: R-1240) Processor coolant unit (for KANBAN in-house production with

planned order)

Production lines:

T-L1## (IDES: LINE1) Production line 1 (for production T-F7##)

T-L3## (IDES: LINE3) Production line 3 (for production T-B5## and T-B6##)

T-L5## (IDES: LINE5) Production line 5 (for production T-B7##)


S A P A G 1 9 9 9

S ys te m E x a m p le : P ro d u c tio n L in e s 1 a n d W IP P ro d u c tio n

P la n t 1 0 0 0

C a s in g

B o a rd

22

R e p le n is h m e n t u s in g p ro d u c tio n o rd e rs

R e p le n is h m e n t u s in g m a n u a l K A N B A N

11

22

C D -R O M

33

33

44

55

R e p le n is h m e n t w ith s to c k tra n s fe r o rd e rs

R e p le n is h m e n t w ith d ire c t tra n s fe r p o s tin g f ro m W M s to r .lo c .

R e p le n is h m e n t u s in g s c h e d u lin g a g re e m e n ts

44

11

55

S u p p ly a re aP ro d u c tio n

lin e

S u p p ly a re aW IP

p ro d u c tio n

T -L 1 # #

(L in e 1 )

T -P 1 ##

(P V B _ L 1 )

S to r .lo c . P L 0 1

P e rs o n

re s p o n s ib le L 1

T -P 6 # #

(P V B _ P C )

s to r .lo c P L 0 6

P e rs o n


P C

T -F 7 # #

(R -1 00 0 )

M o d e m

C D -R O M

M o d e m

T -B 9 # #

(R -1 1 9 0C )

C D -R O M

T -B 8 # #

(R -1 1 8 0C )

C a s in g

T -T B # #

(R -1 2 6 0 C )

B o a rd

T -T D # #

(R -1 2 7 0 C )

C D -R O M

T -T C # #

(R -1 2 5 0 C )

V e n d o r 2

S to r . lo c . 0 0 8 8

P la n t 1 0 0 0

L e g e n d : D e s cr ip tio n in tra in in g s y s tem

(d e s c r ip tio n in th e ID E S s y s te m )


S A P A G 1 9 9 9

S ys te m E x a m p le : P ro d u c tio n L in e s 3 a n d 5

S to ra g e

lo c a tio n

0 0 0 1

V e n d o r 2

M o th e rb o a rd s

33

33

11

22

33

R e p le n is h m e n t w ith ru n s c h e d u le q u a n t it ie s (in -h o u s e p ro d n )

R e p le n is h m e n t w ith p u rc h a s e o rd e rs (e x te rna l p ro c u re m e n t)

R e p le n is h m e n t w ith s to c k tra n s fe r res e rv a tio n s (s to c k tra n s fe r)

22

11

A lu m in iu m

h e a t s in k

T -L 3 # #

(L in e 3 )

T -L 5 # #

(L in e 5 )

L e g e n d : D e s cr ip tio n in tra in in g s y s tem

(d e s c r ip tio n in th e ID E S s y s te m )

B IO S

T -B 6 # #

(R -1 11 1 )

T -B 5 # #

(R -1 1 1 0 )a n d


lin e


lin e

T -P 3 ##

(P V B _ L 3 )


P e rs o n


T -P 5 ##

(P V B _ L 5 )


P e rs o n


F a n

5 V

P ro c e s s o r

c o o la n t u n it

T -B 7 # #

(R -1 24 0 )

B IO S

T -T 7 # #

(R -1 2 3 0 )

P ro c e s s o r

c o o la n t u n it F a n 5 V

T -T 9# #

(R -1 3 3 0 )

A lu m in iu m

h e a t s in k

T -T 8# #

(R -1 31 0 )


S A P A G 1 9 9 9

K A N B A N O v e rv ie w : C o n te n ts

K A N B A N P ro c e d u re

M a te ria l R e q u ire m e n ts P la n n in g ve rs u s K A N B A N

A d v a n ta g e s o f K A N B A N

B u s in e s s M a n a g e m e n t E n v iro n m e n t re q u ire d fo r K A N B A N

A d v a n ta g e s o f a n 'E le c tro n ic ' K A N B A N


S A P A G 1 9 9 9

E x p la in th e K A N B A N p rin c ip le

C o m p a re M R P p ro c e d u re s w ith K A N B A N

p ro c e d u re s

E x p la in th e a d v a n ta g e s o f K A N B A N

E x p la in th e b u s in e s s m a n a g e m e n t

e n v iro n m e n t re q u ire d fo r K A N B A N

E x p la in th e a d v a n ta g e s o f a n 'e le c tro n ic '

K A N B A N .

A t th e c o n c lu s io n o f th is u n it , yo u w ill b e a b le to :

K a n b a n O v e rv ie w : U n it O b je c tiv e s



S A P A G 1 9 9 9

Y o u a re b a s e d in a p ro d u c tio n p la n t a n d yo u

w a n t to g a in a n o v e rv ie w o f K A N B A N

p ro c e d u re s .

T h e re fo re yo u h a v e to c h e c k w h ic h m a te ria ls in

yo u r c o m p a n y fu lf il th e b u s in e s s c o n d itio n s

re q u ire d fo r K A N B A N .

Y o u lis t th e a d v a n ta g e s o f K A N B A N a n d d e c id e

w h ic h m a te ria ls yo u w a n t to c o n tro l u s in g

K A N B A N .

K a n b a n O v e rv ie w : B u s in e s s S c e n a rio


In KANBAN, material flow is organized using containers, which are kept directly at the appropriate

work centers in production. Each contains the quantity of material that work center personnel need for a

certain period of time. As soon as a container is emptied at the demand source, replenishment is initiated.

The supply source for the required material can be another place in the factory, an external supplier or a

warehouse. The demand source can use material from other “buffer” containers until empty containers

are filled by the supply source and returned.

The aim is for the production process to be controlled from production itself, and to significantly reduce

the manual tasks required of personnel. This self-management process and the fact that replenishment

elements are created close to the time they are actually consumed means that stocks are reduced and lead

times shortened (replenishment is only triggered when a material is actually required and not before).

Basically, in KANBAN, material is provided in production exactly where it is required. It remains there,

in small material buffers, ready for use. Thus, material staging does not need to be planned. Instead,

material that is consumed is replenished immediately using KANBAN.

A further advantage of KANBAN is that replenishment data is transmitted automatically, to a great

extent. Scanning the barcode on a Kanban card suffices to transmit the data needed for procurement and

to post the goods receipt upon receipt of the material.


S A P A G 1 9 9 9

W h a t is p ro d u c e d

H o w m u c h is p ro d u c e d

W h e re it is p ro d u c e d

H o w it is p ro d u c e d

W h e re it is d e liv e re d

H o w it is tra n s p o rte d

...

T h e c a rd s h o w s :

M a n u fa c tu re r: 0 0 7

M a te ria l: 0 0 0 0 8 1 5

Q u a n tity : 1 0 0 p ie c e s

D e m a n d s o u rc e : 0 8 8

L o c a tio n : S h e lf A 0 1 4

S ta c k 3

C o m p a rtm e n t 4

C o n ta in e r: W ire p a lle t

T h e K A N B A N C a rd

The kanban signal for delivery of a material can be triggered by a demand source sending a card to a

supply source.

This card describes which material is required, the quantity of the material required and where the

material is to be delivered. The name KANBAN originally stems from these cards, which are called

"kanban" in Japanese. It is also common practice to refer to a container as a kanban.

You can print kanban cards from the R/3 system. Forms are used to define the content and layout of the

cards. The form PSFC_KANBAN, containing a barcode, is shipped with the standard system.

Scanning the bar code with a standard bar code scanner suffices to transmit the data needed for

procurement and to post the goods receipt upon receipt of the material. R/3 has a special transaction for

scanning KANBAN barcodes, so additional driver software or interfaces are not necessary.


In traditional production and material requirements planning, production quantities and dates are

calculated at product level, depending on current customer or planned independent requirements. The

required quantities and materials staging dates are determined in the BOM explosion. In this procedure,

the system calculates lot sizes by referring to the lot-sizing procedure. Lots are generally completed at

each manufacturing level, before being available for the next manufacturing level.

The component staging dates determined by MRP are the basis for detailed scheduling of production or,

for purchased parts, the order dates (although at the exact point in time at which the material is needed

for the next manufacturing level is often not known at the time of scheduling). The material is pushed

through production on the basis of the times calculated (push principle).

This procedure can result in queue times before the start of production. These queue times are generally

dealt with by increasing lead times or using float after production (order buffer). This often leads to the

use of increased safety stocks to achieve constant service levels.

With KANBAN, instead of being pushed through production by higher-level planning, materials are

called off from the supply source by production at the manufacturing level where they are needed (pull

principle). When a container is empty, the KANBAN signal is created, that is, the demand source calls

off the required material from the supply source using, for example, a card.


S A P A G 1 9 9 9

- S h o rt-te rm re p le n is h m e n t

c o n tro l

- D e m a n d -b a s e d

- E v e n t-d r iv e n

- D e c e n tra lize d s to c k a n d

p ro c u re m e n t re s p o n s ib ility

- S im p le m e th o d o f o rg a n iza tio n

- P ro d u c tio n q u a n tity = c u rre n t

re q u ire m e n ts

- D e liv e ry d ire c t to d e m a n d

s o u rc e

- "P u ll p r in c ip le "

- P la n n in g in s tru m e n t

- S h o rt to lo n g -te rm

re q u ire m e n ts fo re c a s t

- D a te o rie n te d

- B O M e x p lo s io n

- L o t-s ize c a lc u la tio n /

o p tim iza tio n

- 'C e n tra lize d ' p la n n in g a n d

c o n tro l

- C e n tra lize d s to c k

re s p o n s ib ility

- "P u s h p r in c ip le "

M R PM R P K A N B A NK A N B A N

M R P a n d K A N B A N : A C o m p a ris o n

Advantages of KANBAN:

KANBAN is a simple form of production control: the production controls replenishment itself, to a

large extent.

Manual posting effort is kept to a minimum.

The material is available directly on the shop floor. This saves the organizational effort required to

stage the material.

The production quantities correspond to actual requirements. This self-management process and the

fact that replenishment elements are created close to the time they are actually consumed means that

stocks are reduced and lead times shortened (replenishment is only triggered when a material is

actually required and not before).


S A P A G 1 9 9 9

K A N B A N P h ilo s o p h y : T a b u la r S u m m a ry

K A N B A N

'P u ll-p ro d u c tio n ': C o n su m p tio n co n tro ls re p le n ish m e n t (o n d ire c t re q u e s t fro m

d e m a n d so u rc e )

S e lf-co n tro llin g c o n tro l-c yc le s , su p p ly a re a s

A im : S e lf-co n tro l o f th e p ro d u c tio n p ro c e s s , re d u c tio n o f th e m a n u a l p o s tin g e ffo rt ,

a u to m a tic re p le n is h m e n t , n o n e e d to p la n th e s ta g in g . R e p le n ish m e n t d a ta

co n s ta n tly a v a ila b le in th e c o n tro l c yc le .

P ro ce s s o p tim iza tio n a n d sh o rte n in g o f th e p ro ce s s ch a in . 'L e a n m a n u fa c tu rin g ':

s im p lif ic a tio n o f th e p la n n in g p ro c e s s , m o re e m p lo ye e -re s p o n s ib ility , re d u c tio n o f

th e a d m in is tra tiv e e ffo rt in p ro d u c tio n .

R e d u c tio n o f s to c k s , re d u c tio n o f le a d t im e s

B y se tt in g th e k a n b a n to F U L L

1 ) U s in g a p ro d u c t co s t co lle c to r in co n ju n c tio n w ith : m a n u a l K A N B A N , R E M , o r

p ro d u c tio n o rd e rs . 2 ) U s in g p ro d u c tio n -o rd e r sp e c if ic c o s tin g .

K A N B A N (c o n ta in e r a n d c a rd ) in c o n n e c tio n w ith p la n n e d o r p ro d u c tio n o rd e r

T yp e o f

p ro d u c tio n

P rin c ip le

P ro ce d u re

T e ch n iq u e

C o n tro l

B a ck g ro u n d

B e n e fit

C o n tro llin g

O b je c t

B a ck flu sh

M a te ria l f lo w u s in g c o n ta in e rs : w h e n th e d e m a n d so u rce e m p tie s a co n ta in e r th e

re p le n is h m e n t s ig n a l is trig g e re d ( in te rn a l p ro d u c tio n , e x te rn a l v e n d o r , s to ra g e

lo c a tio n ), re q u ire m e n ts -b a se d m a te ria l re q u e s t a t th e tim e o f a c tu a l d e m a n d

N O p ro d u c tio n p la n n in g , b u t p ro d u c tio n c a ll!

(C) SAP AG LO235 2-10

S A P A G 1 9 9 9

B u s in e s s M a n a g e m e n t E n v iro n m e n t

T h e s u p p ly s o u rc e m u s t d e liv e r th e m a te ria l q u ic k ly

s h o rt s e t-u p tim e s

a va ila b ility o f c a p a c ity a n d c o m p o n e n ts

M a te ria l re q u ire m e n ts s h o u ld b e c o n s ta n t

M a te ria l s h o u ld n o t b e p ro d u c e d in a d va n c e

(p ro d u c tio n q u a n tity = k a n b a n q u a n tity )

R e s p o n s ib ility is s h ifte d fro m c e n tra l p la n n in g to th e

p ro d u c tio n flo o r

The problem some organizations have with implementing KANBAN is not the production method, but

meeting the prerequisites necessary for KANBAN. Sometimes the necessary conditions can only be

created for certain areas of production.

To use KANBAN effectively, a number of conditions must be met:

The supply source must be able to deliver the material quickly and in small lots. Setup times should be

short and availability of capacity and components ensured.

Parts controlled using KANBAN should be consumed relatively uniformly over the replenishment

time. If a material is sometimes used in large quantities and then in smaller quantities at other times, a

large number of containers are necessary to ensure material availability. There will then be relatively

high levels of stock during periods when the material is used less.

The material should not be produced in advance, as this would lead to unnecessary materials being

procured and stored.

(C) SAP AG LO235 2-11

S A P A G 1 9 9 9


R e p le n is h m e n t e le m e n ts in te g ra te d in th e s ys te m

M o n ito rin g o f k a n b a n s in c irc u la tio n a n d a d d itio n a l

e v a lu a tio n s

In te g ra tio n o f p rin tin g a n d tra n s m is s io n fu n c tio n s

F o re c a s t fro m M R P o r lo n g -te rm p la n n in g

In te g ra te d c o s t a c c o u n tin g

In te g ra te d c a p a c ity re q u ire m e n ts p la n n in g

In te g ra te d e n g in e e rin g c h a n g e m a n a g e m e n t

In te g ra te d c o n tro l o f d is c o n tin u e d p a rts (m a te ria l

d is c o n tin u a tio n )

Control of discontinued parts in MRP and backflush: if the warehouse stock for a component is

consumed and a follow-up material is to be used when it runs out, the goods issue backflush can be

posted for a follow-up material.

(C) SAP AG LO235 2-12

S A P A G 1 9 9 9

K A N B A N P ro c e d u re

M a te ria l R e q u ire m e n ts P la n n in g v e rs u s K A N B A N

A d v a n ta g e s o f K A N B A N

B u s in e s s M a n a g e m e n t E n v iro n m e n t

re q u ire d fo r K A N B A N


K A N B A N O v e rv ie w : S u m m a ry


S A P A G 1 9 9 9

S u p p ly a re a

C o n tro l c yc le

O rg a n iza tio n o f p ro d u c tio n

K A N B A N M a s te r D a ta : C o n te n ts


S A P A G 1 9 9 9


C re a te a s u p p ly a re a in th e R /3 S ys te m

C re a te a c o n tro l c yc le in th e R /3 S ys te m

A n d yo u w ill k n o w h o w to o rg a n ize m a te ria l

f lo w u s in g s u p p ly a re a s a n d c o n tro l c yc le s

K A N B A N M a s te r D a ta : T o p ic O b je c tiv e s



S A P A G 1 9 9 9

In yo u r p la n t 1 2 0 0 in D re s d e n , yo u p ro d u c e th e

a s s e m b lie s o f a P e rs o n a l C o m p u te r.

F o r s e v e ra l o f th e P C c o m p o n e n ts , yo u w a n t to

c o n tro l m a te ria l f lo w u s in g K A N B A N .

Y o u w a n t to u s e K A N B A N fo r in -h o u s e

p ro d u c tio n , e x te rn a l p ro c u re m e n t a n d fo r s to c k

tra n s fe r.

N o w , yo u h a v e to m a in ta in th e n e c e s s a ry

m a s te r d a ta fo r K A N B A N in th e R /3 S ys te m .

K A N B A N M a s te r D a ta : B u s in e s s S c e n a rio


Structure and organization of production are important when introducing KANBAN. With KANBAN,

material is staged directly in production in specific areas, known as supply areas. A supply area can be

used by one or more work centers. The supply areas act as a buffer for the necessary materials (for

example on shelves or in marked out areas on the floor).

The supply areas established for the shop floor are defined in the R/3 system in the KANBAN menu. In

the definition, the supply area is assigned the following objects:

The supply area is a data object used to organize material flow for KANBAN, but is not an inventory

management object. Therefore, storage locations are assigned to the supply areas. Inventory

management (which is relevant, for example, for posting goods receipts) therefore takes place at the

storage location to which the supply area is assigned.

Another significant organizational prerequisite is that you create a responsible person per supply area.

If a person responsible is assigned to a supply area, this defines who is responsible at the demand source

for material processing and for monitoring stocks at the supply area. If in in-house production, a person

responsible is maintained in the control cycle, this defines who is responsible at the supply source for

replenishment, that is, for material provision and, if necessary, for delivery to the demand source. The

responsible person is assigned as an MRP controller to the supply area in Customizing for MRP.

Unloading point: Often in external procurement, the supplier does not deliver the material directly to

the supply area in production but to a certain unloading point. From here, the kanbans are transported to

the supply area. The unloading point defines where the supplier has to deliver the material (for example,

gate 1). The unloading point is printed on the kanban card or even transferred to the summarized JIT

call.


Delivery address: You can maintain an address in the supply area. When creating a control cycle, this

address is transferred to the delivery address of the control cycle.


S A P A G 1 9 9 9

S u p p ly a re a

C o n tro l c yc le

R e q u ire m e n t

D e live ry

D e m a n d s o u rc e S u p p ly s o u rc e

P e rs o n

re s p o n s ib le

V e n d o r

Is s u in g p la n t

W a re h o u s e

T h e c o n tro l c yc le c o n ta in s th e d a ta re q u ire d fo r re p le n is h in g a m a te r ia l a t a

s u p p ly a re a .

(N u m b e r o f k a n b a n s , q u a n tity p e r k a n b a n , s u p p ly s o u rc e , typ e o f

re p le n is h e m e n t...)

K a n b a n C o n tro l C y c le

To control the relationship between supply and demand source, you define what is known as a control

cycle. The control cycle defines:

The demand source (supply area)

The replenishment strategy (for example, replenishment via purchase order for external

procurement or via run schedule quantities for in-house production or via stock transfer reservations

for stock transfer)

The supply source (supplier (vendor) or issuing plant for external procurement, the responsible

person for in-house production, the storage location for stock transfer)

The number of containers (kanbans) circulating between the demand and the supply source

The quantity per container

The delivery address (when accessing the function, the plant address is automatically maintained).

Here, you can also enter the information required for the supply area. You can print this data on a

kanban (card), for example.

Printing parameters for printing the kanban

The pallet position: More precise specification of the material's position (for example, a specific

shelf section) in the supply area. The pallet position can also be printed on the kanban.

Parameters for the automatic kanban calculation

You can also delete or lock kanbans in the control cycle. You lock a kanban, for example, if it is not

to be used for a certain length of time as consumption within the control cycle has fallen.


With User Exit MPKR0001, you can define your own data fields for the kanban control cycle, maintain

them in the control cycle and save them on the database. A new subscreen is created in the control cycle

for these newly defined fields. You can use these new fields for the following reasons, for example:

For printing kanbans (cards)

For the user exits at status change

For the kanban calculation (see enhancement MPKB0001 and MPKC0001)

You can find more information in enhancement documentation MPKR0001.


S A P A G 1 9 9 9

E x te rn a l

p ro c u re m e n t

Pro

du

cti

on

S u p p ly s o u rc eD e m a n d s o u rc eD e m a n d s o u rc e

In -h o u s e

p ro d u c tio n

S to c k tra n s fe r

K A N B A N

K A N B A N

K A N B A N

C o n tro l c yc le

S u p p ly S o u rc e s in th e K A N B A N P ro c e d u re

KANBAN replenishment is controlled by various different replenishment strategies. The

replenishment strategies define which methods are used to produce or procure the container quantity,

that is, which replenishment element the system creates.

Within the area of in-house production, you can organize replenishment using planned orders (repetitive

manufacturing), production orders (discrete manufacturing), manual KANBAN (you can print cards, but

not create replenishment elements) or using container control/MRP (mix of KANBAN and MRP). With

replenishment using container control/MRP, replenishment elements are not created in KANBAN but in

MRP. Setting the container status to FULL and EMPTY then simply controls the material flow.

With in-house production, the person responsible for production is given as the supply source. This

individual is responsible for the area of production which delivers materials to other production areas.

In external procurement, you can organize replenishment using purchase orders, delivery schedules,

stock transport orders, stock transport scheduling agreements, supply source or using container

control/MRP.

In external procurement the supply source is a vendor. If deliveries refer to a specific contract, this is

also entered in the supply source data. With plant-to-plant relationships, a delivering plant is entered

instead of a vendor.

Within the area of stock transfer, you can work with replenishment using stock transfer reservations,

replenishment using direct transfer posting or with replenishment using container control/MRP.

With stock transfer, the supply source is a delivering storage location.

(C) SAP AG LO235 3-10

S A P A G 1 9 9 9

C e n tra l

w a re h o u s e

V e n d o r 1

V e n d o r 2

A

B

S A _ P re p ro d . 1

E

D

H

S A _ A s s e m b ly 1

G

E


F

E

C


C o n tro l c yc le

W o rk c e n te rs

M a te ria lsC o n ta in e r

w ith 1 0

p ie c e s

7 57 5 7 57 5

1 01 0 1 01 0

7 57 5 7 57 5

1 01 0 1 01 0

2 52 5 2 52 5

7 57 5 7 57 5

7 57 5 7 57 5

1 01 0 1 01 0

2 52 5 2 52 5

1 01 0 1 01 0

U s in g C o n tro l C yc le s to O rg a n iz e R e p le n is h m e n t

fo r P ro d u c tio n

(C) SAP AG LO235 3-11

S A P A G 1 9 9 9

C e n tra l

w a re h o u s e

V e n d o r 1

V e n d o r 2S to r. L o c . P L 0 3S to r. L o c . P L 0 5

Re

sp

on

sib

le p

ers

on

V1

Re

sp

on

sib

le p

ers

on

V2

D

H


G

E


F

7 57 5 7 57 5

1 01 0 1 01 0

7 57 5 7 57 5

1 01 0 1 01 0

2 52 5 2 52 5

A

B


E

E

C


7 57 5 7 57 5

7 57 5 7 57 5

1 01 0 1 01 0

2 52 5 2 52 5

1 01 0 1 01 0

O rg a n iz a tio n o f P ro d u c tio n

A storage location is assigned to every supply area.

All the goods movements in Inventory Management from or to a supply area are posted using this

storage location.

When material is staged at a supply area, the corresponding goods receipt is posted to the assigned

storage location.

When material is withdrawn from a supply area, the corresponding goods issue is posted from the

assigned storage location.

A separate storage location is assigned to every supply area or all supply areas are assigned to a storage

location or groups of supply areas are assigned to a storage location.

From the demand source view, the responsible person is responsible for organizing material

replenishment at the supply area.

The responsible person can be a group representative, a foreman, a team leader or an MRP controller.

The responsible person is defined in Customizing as an MRP controller.

(C) SAP AG LO235 3-12

S A P A G 1 9 9 9

S u p p ly a re a

C o n tro l c y c le

O rg a n iz a tio n o f p ro d u c tio n

K A N B A N M a s te r D a ta : S u m m a ry

(C) SAP AG LO235 3-13

Master Data Exercises

Topic: Master Data

At the conclusion of these exercises, you will be able to:

Create a supply area in the R/3 System

Create a control cycle in the R/3 System

And you will know how to organize material flow using

supply areas and control cycles

Production on line T-L5## is to be organized using KANBAN.

First, you have to create a supply area at the production line in

which the required materials are staged. You also have to create

two control cycles for organizing the replenishment of two

materials in the supply area.

1-1 In plant 1200, create the supply area T-P5##. Assign storage location PL05 and

responsible person L5 to this supply area:

1-1-1 Menu path:

Logistics Production KANBAN Supply Area Maintain

Plant: 1200

Choose New entries and enter the following data:

Supply area: T-P5## (Supply area line 5 group ##)

Storage location: PL05

Person responsible: L5

Save the supply area.

If the “Address maintenance” appears, cancel this function as you do not need a

specific address for this supply area.

1-1-2 What is the purpose of the supply area?

__________________________________________________________

(C) SAP AG LO235 3-14

1-2 Create a control cycle with 2 containers each containing 50 pieces for the PC

component T-T8## (Aluminium cooling unit) in supply area T-P5##.

Replenishment is to be executed using stock transfer from storage location 0001 with

replenishment strategy 0001 (stock transfer with reservation):

1-2-1 Menu path:

Logistics Production KANBAN

Control cycle Create

Material: T-T8##

Plant: 1200

Supply area: T-P5##

Choose classic KANBAN.

Enter.

Number of kanbans: 2

Quantity per kanban: 50

Choose Stock transfer and replenishment strategy 0001 (stock transfer with

reservation).

Choose Enter.

Enter replenishment storage location 0001 (material warehouse) in the Storage

location field.

Save the control cycle.

1-2-2 What is the purpose of the control cycle?

__________________________________________________________

1-3 Now, create another control cycle with 2 containers each containing 50 pieces for the

PC component T-T9## (fan 5V) in supply area T-P5##.

Replenishment is to be executed using stock transfer from storage location 0001 with

replenishment strategy 0002 (direct transfer posting).

To create this control cycle, use the control cycle you created in the previous exercise

as a reference.

1-3-1 Menu path:


Control cycle Create

Material: T-T9##

Plant: 1200

Supply area: T-P5##

Choose classic KANBAN.

(C) SAP AG LO235 3-15

Copy from:

Material: T-T8##

Plant: 1200

Supply area: T-P5##

Enter.

Choose New strategy.

Choose Stock transfer and replenishment strategy 0002 (direct transfer

posting).

Choose Enter.

Enter replenishment storage location 0001 (material warehouse) in the Storage

location field.


(C) SAP AG LO235 3-16

Master Data Solutions

Topic: Master Data

1-1

1-1-1

1-1-2 With KANBAN, material is staged directly in production in specific areas,

known as supply areas. A supply area can be used by one or more work

centers. The supply areas act as a buffer for the necessary materials (for

example on shelves or in marked out areas on the floor).

The supply area is a data object used to organize material flow for KANBAN,

but is not an inventory management object. Therefore storage location have to

be assigned to the supply areas in Customizing for KANBAN.

1-2

1-2-1 The control cycle defines the relationship between the demand source and the

supply source. The control cycle defines the following, for example:

– demand source (supply area)

– replenishment strategy (for example, replenishment using purchase orders for

external procurement)

– supply source (vendor, for example)

– number of kanbans circulating between the demand source and the supply

source

– quantity per kanban

1-3

1-3-1


S A P A G 1 9 9 9

S ta tu s s e q u e n c e

S e ttin g k a n b a n to F U L L a n d E M P T Y

C h a n g in g th e s ta tu s u s in g th e k a n b a n b o a rd , th e m a n u a l

k a n b a n s ig n a l, a n d b y s c a n n in g a b a r c o d e

P rin tin g k a n b a n c a rd s

F o c u s in g o n p h ys ic a l s to c k s

G e n e ra l K A N B A N P ro c e d u re


S A P A G 1 9 9 9


C h a n g e th e s ta tu s in th e k a n b a n b o a rd , a n d

w ith th e m a n u a l k a n b a n s ig n a l

P rin t k a n b a n c a rd s

G e n e ra l K A N B A N P ro c e d u re : U n it O b je c tiv e s



S A P A G 1 9 9 9

B e fo re yo u u s e th e in d iv id u a l re p le n is h m e n t

s tra te g ie s in K A N B A N , yo u n e e d a n o v e rv ie w o f

th e g e n e ra l K A N B A N p ro c e d u re in th e R /3

s ys te m .

Y o u a ls o h a v e to p rin t k a n b a n c a rd s fo r th e

K A N B A N p ro c e d u re .

G e n e ra l K A N B A N P ro c e d u re : B u s in e s s S c e n a rio


S A P A G 1 9 9 9

K A N B A N S ta tu s S e q u e n c e

T h e K A N B A N p ro c e s s is c o n tro lle d b y s e tt in g v a rio u s s ta tu s e s

fo r th e k a n b a n s .

E m p tyE m p ty

F u llF u ll

R e p le n is h m e n t

is tr ig g e re d

a u to m a tic a lly

• O rd e r

• P u rc h . o rd e r ...

G o o d s re c e ip t

is p o s te d

a u to m a tic a lly

All KANBAN operations, such as material receipts or material consumption are represented by status

changes.

If a kanban is empty, the employee in production sets the status of the kanban to EMPTY. This kanban

status usually also automatically triggers replenishment, that is, the supply source receives the signal to

refill the kanban. When the replenished kanban returns to the demand source, the employee at the

demand source sets the kanban to status FULL. These two statuses are generally sufficient to control the

material flow in KANBAN production control.


The progress of production in KANBAN is controlled by setting the kanban to the appropriate status.

Usually, only the two statuses, EMPTY and FULL are used.

If the status is set to EMPTY, the system creates a replenishment element, instructing the supply

source to deliver.

Emptying a kanban does not lead to a goods issue posting. In KANBAN, goods issues are typically

backflushed.

You can set the status to EMPTY by scanning a bar code on the KANBAN card. To do this, you scan the

bar code using a standard bar code scanner in the transaction Kanban signal -> Bar code. You can also

set the status to EMTPY using transaction manual kanban signal or in the kanban board.


When you set the status to FULL, the system posts the goods receipt automatically for the material with

reference to the procurement element.

You can set the status to FULL by scanning a bar code on the KANBAN card. To do this, you scan the


set the status to FULL using transaction manual kanban signal or in the kanban board.


You can also post the goods receipt manually in Inventory Management. The goods receipt posting in

Inventory Management automatically changes the status of the kanban to FULL (if you have not set the

separate goods receipt indiator in the control cycle).


S A P A G 1 9 9 9

R -1230

R -1240

20 pc.

20 pc.

E m ptyE m pty E m ptyE m pty FullFull

E m ptyE m pty FullFull

W A IT E m ptyE m pty

S upply ar ea

Mater ial

C on tainer q ty

C on tainer

R -1230

20 pc.

P r odukt.ver sor g . Linie 3

B ios

Mo ther b oar d

P r odukt. ver sor g. Linie 4

B ios

Y o u c a n s e t /c h a n g e a k a n b a n s ta tu s :

In th e k a n b a n b o a rd

W ith th e k a n b a n s ig n a l

b a rc o d e e n try

m a n u a l e n try

W ith a P D C s ys te m

In d ire c tly u s in g a g o o d s re c e ip t o r a b a c k flu s h in g

tra n s a c tio n

S e ttin g th e K a n b a n S ta tu s

You can set the kanban status in the graphic kanban board.

You can also set the kanban status by scanning a barcode on the kanban card. To do this, you scan the


change the status using the transaction manual kanban signal.

You also have the option of collectively entering kanbans, whose status is to be changed, and then

processing them (tab page Preliminary entry in the barcode entry). This leads to significantly shorter

queue times between the entries, while the following processing is carried out automatically. As soon as

you choose Save, the kanbans entered are processed. After processing, the system returns to the tab page

Processed kanbans, so that you can check your entries. You can access any errors in a log.

You can also enter status using a Plant Data Collection System (PDC System). The PDC interface

supports the kanban signal, quantity signal and event-driven KANBAN. The operation takes place

asynchronously in batch. For the kanban signal, quantity signal, and event-driven KANBAN there is a

BAPI available (BUS 1075, 1172), which also allows a synchronous operation.

The status can also be set indirectly using the goods receipt or backflush transaction.

Signal lock in Customizing for KANBAN: You use the signal lock to determine a period (in minutes) in

which the kanban signal is blocked. If you re-trigger the kanban signal within this period, the system will

not change the status. This guarantees that a kanban cannot be set to FULL and then inadvertently set to

EMPTY again by a second signal.

(C) SAP AG LO235 4-10

S A P A G 1 9 9 9

R -1 2 3 0

R -1 2 4 0

2 0 p c .

2 0 p c .

E m p tyE m p ty E m p tyE m p ty F u llF u ll

E m p tyE m p ty F u llF u ll

W A IT E m p tyE m p ty

S u p p ly a re a

M a te r ia lC o n ta in e r q u a n tity

C o n ta in e r

R -1 2 3 0

2 0 p c .

S ta tu s to e m p ty S ta tu s to fu ll

V a rio u s v ie w s a n d s e le c tio n o p tio n s a llo w o p tim a l

m o n ito rin g a n d e v a lu a tio n

S u p p ly a re a lin e 3

B io s

M o th e rb o a rd

S ta tu s c h a n g e

S u p p ly a re a lin e 4

B io s

Y o u c a n s e t m e

to e m p ty

Y o u c a n s e t m e

to fu ll

K a n b a n B o a rd

The kanban board displays an overview of container rotation and also allows you to trigger the

kanban signal (for example, setting to FULL or EMPTY).

You can choose between various displays: In the demand source view, you can display the control cycles

by supply area (various selection criteria are available).

For each control cycle, all the kanbans that are in circulation are displayed with their current status.

From here, the demand source can set kanbans to EMPTY and FULL without the use of bar codes.

The supply source view gives the supply source an overview of its worklist (various selection criteria are

available).

Here, the supply source can see which containers are still full and which must be replenished. It is not

the responsibility of the supply source to set kanbans to EMPTY and FULL, so this function is not

allowed in the supply source view.

The plant overview gives you an overview of work progress in each control cycle, either for one plant or

per plant (various selection criteria are available).

In Customizing for KANBAN, you can make basic settings for the kanban board. You can define the

display of control cycles in the kanban board, the display of kanbans in the kanban board and the content

of the quick info.

(C) SAP AG LO235 4-11

S A P A G 1 9 9 9

M a n u fa c tu re r : 0 0 7

M a te r ia l: 0 0 0 0 8 1 5

Q u a n tity : 1 0 0 p ie c e s

D e m a n d s o u rc e : 0 8 8

L o c a tio n : S h e lf A 0 1 4

C o m p a rtm t 4

P rin t K a n b a n C a rd s O n c e O n ly (R e u s in g C a rd s )

P rin t fro m m a s te r d a ta

P rin t d ire c tly fro m c o n tro l c yc le

m a in te n a n c e

C o lle c tiv e k a n b a n p rin t

P rin t k a n b a n s fo r a ll c o n tro l c yc le s

R e p rin tin g c a rd s , th a t s h o u ld h a v e b e e n

p r in te d o n p r in te r L P 0 1 d u rin g a c e rta in

tim e fra m e

Single print: The cards are only printed once or they are printed for replacement purposes using the

Create control cycle and Change control cycle functions. The same kanban is used over and over again.

Here, you have three options:

The kanban card circulates between the supply source and the demand source with the container.

The kanban card is passed from the demand source to the supply source without a container but

returns to the demand source with one. Here, you have to organize the transport of the cards to the

supply source.

The card remains at the demand source and is attached to the full kanban or is stored without a

kanban at a predefined location. There is no information on the circulating kanbans and the

information on empty kanbans is kept at the demand source. Information is passed on to the supply

source by means of the kanban board. When a kanban is delivered, the card has to be retrieved at

the demand source.

With the collective kanban print, you can print kanban cards across the control cycle. In the case of a

print error you can repeat the print of certain kanbans (for example, all kanbans that should have printed

on a certain printer during a certain time period).

The form for the kanban is maintained in the replenishment strategy of the control cycle in

Customizing for KANBAN. The printer is entered directly in the corresponding control cycle (field

Output device).

If other forms are printed in an action, alongside the kanban form, then the kanban print is set up and

carried out with these forms.

(C) SAP AG LO235 4-12

If you want to use another function module for printing kanban cards instead of the standard function

module PK_KANBANCARD_PRINT, then enter the name of your function module in Customizing for

KANBAN in the work step Replenishment strategies.

For printing barcodes from the kanban card, the printer must be able to process the general character set

for barcodes, and it must be selected as a barcode printer. For further information on printing barcodes

with SAPScript, see OSS note 5196.

(C) SAP AG LO235 4-13

S A P A G 1 9 9 9

E v e n t-d riv e n o n s ta tu s c h a n g e

- T h e c a rd d o e s n o t h a v e to b e tra n s p o rte d to th e s u p p ly s o u rc e

- C u rre n t d a ta (d a te , tim e , o rd e r n u m b e r) o n th e c a rd

1 ) R e p rin tin g c a rd s a t re p le n is h m e n t

U s in g p r in te r a n d fo rm fro m th e k a n b a n d a ta

W h e n u s in g p ro d u c tio n o rd e rs , p r in t to g e th e r w ith th e o th e r

o rd e r p a p e rs

W ith p u rc h a s e o rd e rs , yo u c a n tra n s fe r d e liv e ry a d d re s s

s p e c ific to c o n tro l c yc le a n d o th e r k a n b a n d a ta to th e

p u rc h a s e o rd e r fo rm

2 ) R e p rin tin g c a rd s o n e a c h g o o d s re c e ip t

U s in g p r in te r a n d fo rm fro m th e k a n b a n d a ta

T o g e th e r w ith g o o d s re c e ip t d o c u m e n ta tio n ,

u s in g m e s s a g e c o n tro l

P rin t K a n b a n C a rd s R e p e a te d ly

N o t R e u s in g C a rd s )

Renewed kanban print for each control cycle run: The card is thrown away at the end of each cycle.

You have the following options (field Kanban print in the control cycle):

1 = Card printed when replenishment is triggered: with in-house production or stock transfer, the

card is printed at the supply source. This means that the card does not have to be transported to the

supply source. The card can be used as an extra written request for delivery (for example, for in-house

production with planned orders or manual kanbans). For production orders, printing is carried out using

the print control for production orders, in all other cases it is carried out using the KANBAN transaction

(printer from control cycle, form from replenishment strategy).

2 = Card printed when goods receipt is posted: it makes sense to use this option for external

procurement with central goods receipt. If you work with a strategy where the GR is carried out

automatically in the background as soon as the status is changed to FULL, then do not use this print

control technique. The kanban is printed when a GR is posted for a purchase order or a production order

(or a stock transfer reservation) using the GR function in Inventory Management. The kanban is printed

with or instead of the GR papers and is attached to the kanban. The kanban is printed using the GR print

control.

Kanban printed with the purchase order to which it is attached. The kanban is printed together with

the purchase order and must be defined as a part of the order form. The order form controls whether or

not a kanban is printed and not the entries in the control cycle. The kanban is printed along with the

purchase order print.

You can also print changeable data on the kanban card, such as date and time, or the number of a

production order.

(C) SAP AG LO235 4-14

S A P A G 1 9 9 9

F u llF u ll

In

tra n s it

In

p ro c e s s

E R R O R In

u s e

W a itW a it

(in itia l)(in itia l)

E m p tyE m p ty

S ta tu s S e q u e n c e - A ll P o s s ib ilitie s

If there is additional information for certain processes, there will be an additional status alongside

statuses EMPTY and FULL. In addition, the status WAIT is set in the following cases:

When a new kanban is included in the control cycle, it is given the status WAIT. You can then set

this status to EMPTY.

If a kanban has been locked and is then set to EMPTY.

The status WAIT can also be given by the demand source in the kanban board for information

purposes if certain kanbans are not to be refilled immediately.

If the Independent Supply Source/Separation of Status Change and Replenishment has been

defined. Then the kanban signal from the demand source does not trigger replenishment. Instead,

the kanban is given the status WAIT until the supply source triggers replenishment.

IN PROCESS indicates that the requested material is currently being produced by the supply source.

IN TRANSIT indicates that the material is currently on its way to the demand source.

IN USE indicates that the demand source is currently withdrawing material.

ERROR is set by the system and indicates that the status selected cannot be set successfully.

The statuses WAIT, IN PROCESS, IN TRANSIT and IN USE are only of use when you work with the

kanban board. These statuses can be clearly seen in the kanban board with color codes and inform you

exactly how far production has progressed. They can be set manually, using bar code entry or more often

using the kanban board itself.

(C) SAP AG LO235 4-15

S A P A G 1 9 9 9

L o g ic a l S to c k / P h y s ic a l S to c k (1 )

E v e n t C o n ta in e r W a re h o u s e s to c k

---------------------------------------------------------------- ---------------------

B a c k flu s h 2 p c . 2 8


O rd e r fo r 2 p c . 3 0

In it ia l s itu a tio n 3 0




C o n ta in e r e m p ty 2 1



3 c o n ta in e rs e a c h c o n ta in in g 1 0 p ie c e s , s e v e ra l s m a ll o rd e rs

E m p tyin g a k a n b a n d o e s n o t le a d to a g o o d s is s u e p o s tin g .

G o o d s is s u e s a re b a c k flu s h e d .

Emptying a kanban does not lead to a goods issue posting. Kanban materials are backflushed (goods

issue for components), when the order requested is confirmed.

The backflush has no influence on the kanban status.

The kanban is set to empty, if the relevant material has been consumed. This operation is based only on

the physical stock and is completely independent of any stock posting.

(C) SAP AG LO235 4-16

S A P A G 1 9 9 9

L o g ic a l S to c k / P h y s ic a l S to c k (2 )

E v e n t C o n ta in e r W a re h o u s e s to c k

---------------------------------------------------------------- ---------------------


C o n ta in e r fu ll 4 0

O rd e r fo r 5 0 p c . 3 0

In it ia l s itu a tio n 3 0

C o n ta in e r e m p ty 4 0C o n ta in e r fu ll 5 0


C o n ta in e r fu ll 6 0C o n ta in e r e m p ty 5 0

C o n ta in e r fu ll 2 0B a c k flu s h 5 0 p c . 1 0C o n ta in e r e m p ty 6 0

C o n ta in e r fu ll 3 0

3 c o n ta in e rs e a c h c o n ta in in g 1 0 p ie c e s , o n e la rg e o rd e r

Considerable variances can occur between physical stock and logical stock as goods movements are not

posted simultaneously.

(C) SAP AG LO235 4-17

In conventional production control the quantities to be produced are determined using the lot-size

calculation.

With KANBAN, fixed container quantities are determined (always the same lot-size). The quantity

procured within a period of time depends on the frequency with which the kanban is set to EMPTY.

Replenishment frequency is based on actual consumption.

The more material that is required, the faster the kanbans flow between supply and demand source. If

material consumption decreases, the flow of kanbans slows down.

There is never more material in circulation than the quantity defined by the number of kanbans in the

control cycle.

If a material is not required for a certain period of time, all kanbans remain at the demand-source. The

kanban calculation can thus be used to adjust the number of kanbans to suit the current requirements

situation.

(C) SAP AG LO235 4-18

S A P A G 1 9 9 9

S ta tu s s e q u e n c e

S e ttin g k a n b a n to F U L L a n d E M P T Y

C h a n g in g th e s ta tu s u s in g th e k a n b a n b o a rd ,

th e m a n u a l k a n b a n s ig n a l a n d b y

s c a n n in g a b a r c o d e

P rin tin g k a n b a n c a rd s

F o c u s in g o n p h y s ic a l s to c k s

G e n e ra l K A N B A N P ro c e d u re : S u m m a ry

(C) SAP AG LO235 4-19

General KANBAN Procedure Exercises

Unit: General KANBAN Procedure

Topic:


print kanban cards,

change the status in the kanban board, and with the manual

kanban signal

The PC component T-T7## (BIOS) is staged with KANBAN on

production line T-L3##. The procurement takes place with

purchase order handling from an external vendor.

The master data (control cycle, supply area) is already maintained

in the R/3 System. Now, kanban cards have to be printed, and

kanbans have to be set to FULL and EMPTY to control the flow

of material.

1-1 Print all kanban cards for the control cycle of PC component T-T7## (BIOS) in supply

area T-P3## with a single print.

These cards should always be used (it is also possible to define the kanban cards as a

part of the purchase order form, and to print a new kanban card for each purchase

order).

1-1-1 Menu path:


Control Cycle Change

Material: T-T7##

Plant: 1200

Supply area: T-P3##

Enter.

In the field Print Kanban no entry is made for the single kanban print.

In the field Printer enter printer LP01 (this is a dummy printer) and choose:

Goto Print kanban At this point we would normally choose Print all kanbans but since this is a

dummy printer do not do this.

The kanban cards (with a barcode) are now printed by the printer specified in

the control cycle.

(C) SAP AG LO235 4-20

Please see the appendix for a sample printout.

1-1-2 Which supply source and which replenishment strategy does this material refer

to?

____________________________________________________

1-1-3 Which delivery address is maintained for this control cycle? To find out, choose

the Delivery address icon.

______________________________________________________

1-2 Now go to the demand source view of the kanban board for supply area T-P3##.

1-2-1 Menu path:


Control Kanban board Demand Source View

Plant: 1200

Choose Supply area and select T-P3##.

Choose the menu path Kanban board Save settings, to save your user-

specific entries.

Enter.

1-2-2 How many kanbans should circulate for material T-T7## between supply area

T-P3## and the supply source?

______________________________________________________

1-2-3 Which material is staged in this supply area, apart from PC component T-T7##?

______________________________________________________

1-2-4 Check which number (kanban number or kanban ID) is displayed in the graphic

for each kanban. To do this choose:

Settings Display kanbans

In the field Kanban text, the kanban number is selected. This is displayed.

If required, you could convert the text to ‘Kanban ID’ and save it as a user-

specific setting. However, you should not carry this out here.

(C) SAP AG LO235 4-21

1-3 In the kanban board, set one container for material T-T7## (BIOS) to EMPTY.

Display the stock/requirements list, both before and after the kanban is set to EMPTY.

1-3-1 Now leave the control cycle display, and go back to the kanban board. Select

the row for the material T-T7## and choose

Goto Stock/requirements list.

1-3-2 What is the available quantity of material T-T7## at storage location PL03?

______________________________________________________

1-3-3 Go back to the kanban board and choose Status to EMPTY.

Select a kanban for material T-T7## and choose Set kanban status to EMPTY.

In this way the kanban is set to EMPTY, and the color changes to red.

Now double click the red kanban. In the following dialog box you recognize the

number of the replenishment element.

1-3-4 What sort of replenishment element is created on setting the kanban to

EMPTY?

______________________________________________________

1-3-5 Go back to the kanban board and from there branch to the stock/requirements

list for material T-T7##.

Select the row for the material T-T7## and choose


1-3-6 Why is the available quantity at storage location PL03 not reduced on setting

the kanban to EMPTY.

______________________________________________________

(C) SAP AG LO235 4-22

1-4 In the kanban board, set the empty container for PC component T-T7## (BIOS) to

FULL.

After the kanban has been set to FULL, display the stock/requirements list for matieral

T-T7##, to see the storage location receipts.

1-4-1 Select the empty kanban for material T-T7## and choose Set kanban status to

FULL. In this way the kanban is set to FULL, and the color changes to green.

1-4-2 Select the row for the material T-T7## and choose


1-4-3 What is the available quantity of material T-T7## at storage location PL03

now?

______________________________________________________

1-4-4 Which activity is automatically carried out in Inventory Management on setting

the kanban to FULL?

______________________________________________________

1-5 Now, in the kanban board, set another container to EMPTY for material T-T7##, using

the manual kanban signal.

1-5-1 Menu path:


Control Kanban signal Manual entry

Material: T-T7##

Plant: 1200

Supply area: T-P3##

Using F4-Help in the field Kanban number, choose a container with status

WAIT.

Choose Save.

If you scroll to the right in the table Processed kanbans, you will see the

purchase order number. Note this purchase order number and the item number

of the purchase order:

______________________________________________________

1-6 In Inventory Management post a goods receipt for the purchase order above.

(C) SAP AG LO235 4-23

1-6-1 Logistics Materials Management Inventory Management

Goods Movement Goods Receipt For Purchase Order PO Number

Known

In the two empty fields behind Goods receipt for PO enter the purchase order

number above and the item number.

Purchase order: PO number above

Choose Enter.

Set the indicator OK.

Choose Save and confirm the following dialog box with Enter.

1-6-2 Now go back to the kanban board for supply area T-P3##. Which status does

the previously empty kanban have now?

______________________________________________________

Note: You could also have set the kanban to FULL (including posting the goods

receipt) using the manual kanban signal. Even with the manual kanban signal,

actual quantities can be entered, if you have deviated from the target quantities.

(C) SAP AG LO235 4-24

General KANBAN Procedure Solutions

Unit: General KANBAN Procedure

Topic:

1-1

1-1-1 The supply source is external vendor 2 (Electronic Components Distributor)

1-1-2 Plant 1200, Motherboard Assembly, 9 St.Petersburger Street, Dresden.

1-2

1-2-1

1-2-2 5 kanbans circulate between the demand source and the supply source.

1-2-3 The PC assembly T-B7## (processor coolant unit) is also staged in supply area

T-P3##.

1-2-4

1-3

1-3-1

1-3-2 The current available quantity of material T-T7## at storage location PL03 is

100 pieces.

1-3-3

1-3-4 On setting to EMPTY, a purchase order is created.

1-3-5

1-3-6 Because backflushing the higer-level assembly performs the goods issue in

KANBAN, setting to EMPTY does not carry out this inventory movement.

1-4

1-4-1

1-4-2

1-4-3 The current available quantity of material T-T7## at storage location PL03 is

now 120 pieces.

1-4-4 On setting the kanban to FULL, the goods receipt for the purchase order is

posted.

(C) SAP AG LO235 4-25

1-5

1-5-1

1-6

1-6-1

1-6-2 After posting the goods receipt for the purchase order, the kanban belonging to

the purchase order is set to status FULL.


S A P A G 1 9 9 9

R e p le n is h m e n t S tra te g ie s fo r K A N B A N w ith o u t M R P

R e p le n is h m e n t S tra te g ie s fo r K A N B A N w ith M R P

R e p le n is h m e n t S tra te g ie s : C o n te n ts


S A P A G 1 9 9 9


M a k e th e n e c e s s a ry s e tt in g s fo r K A N B A N

re p le n is h m e n t s tra te g ie s w ith o u t M R P in th e

R /3 S ys te m

M a k e th e n e c e s s a ry s e tt in g s fo r K A N B A N

re p le n is h m e n t s tra te g ie s w ith M R P in th e R /3

S ys te m

E x p la in th e s p e c ia l fe a tu re s o f th e va rio u s

re p le n is h m e n t s tra te g ie s

R e p le n is h m e n t S tra te g ie s : U n it O b je c tiv e s



S A P A G 1 9 9 9

In yo u r p la n t 1 2 0 0 yo u a re p la n n in g to u s e th e

R /3 S ys te m 's K A N B A N fu n c tio n fo r in -h o u s e

p ro d u c tio n , e x te rn a l p ro c u re m e n t a n d s to c k

tra n s fe r .

T h e re fo re yo u w a n t to g a in a n o v e rv ie w o f th e

v a rio u s re p le n is h m e n t s tra te g ie s s u p p o rte d b y

th e R /3 s ys te m .

Y o u m u s t a ls o m a in ta in th e n e c e s s a ry m a s te r

d a ta in th e R /3 S ys te m fo r th e va rio u s

re p le n is h m e n t s tra te g ie s .

R e p le n is h m e n t S tra te g ie s : B u s in e s s S c e n a rio


S A P A G 1 9 9 9

W ith o u tW ith o u t M R PM R P W ithW ith M R PM R P

M R P c re a te s n o re c e ip t e le m e n ts

(fo re c a s t v ia lo n g -te rm p la n n in g )

R e p le n is h m e n t e le m e n ts (d e liv e ry -

re le v a n t) a re c re a te d b y K A N B A N

p e r c o n ta in e r

C o m p o n e n ts o f k a n b a n p a rts c a n

o n ly b e p ro c u re d u s in g

c o n s u m p tio n -b a s e d p la n n in g o r

w ith K A N B A N

M R P c re a te s re c e ip t e le m e n ts (n o t

d e liv e ry -re le v a n t) a s a fo re c a s t

R e p le n is h m e n t e le m e n ts (d e liv e ry -

re le v a n t) a re c re a te d b y K A N B A N p e r

c o n ta in e r (in c o n ta in e r-c o n tro l,

p r in tin g th e c a rd s tr ig g e rs

re p le n is h m e n t)

C o m p o n e n ts o f K A N B A N p a rts c a n

b e p la n n e d a n y w a y yo u lik e

K A N B A N W ith o u t / W ith M R P


S A P A G 1 9 9 9

K A N B A N w ith o u t M R P : U n it O b je c tiv e s

m a k e th e n e c e s s a ry s e tt in g s fo r K A N B A N

re p le n is h m e n t s tra te g ie s w ith o u t M R P in th e R /3

A t th e c o n c lu s io n o f th is to p ic , yo u w ill b e a b le to :


S A P A G 1 9 9 9

O v e rv ie w : K A N B A N w ith o u t M R P

P la n n e d o rd e r fro m M R P

K A N B A N o rd e r

E xte rn a l p ro cu re m e n t

D e p e n d e n t rq m t


AA

CC

DD E E

BB

P la n n e d in d e p e n d e n t re q u ire m e n ts

/sa le s o rd e r

M a te ria ls D a n d E ca n o n ly b e p ro cu re d

w ith co n su m p tio n -b a se d p la n n in g o r w ith

K A N B A N (b u t n o t w ith M R P ) CCM a te ria l C is co n tro lle d b y K A N B A N w ith o u t

M R P

R e ce ip t e le m e n ts c re a te d d ire c t fro m K A N B A N

R e q m ts

T im e

T o d a y

W e e k 1 W e e k 3

M R P d o e s n o t c re a te re c e ip t e le m e n ts (fo re c a s t o n ly w ith lo n g -te rm

p la n n in g ) fo r m a te r ia ls th a t a re p ro c e s s e d w ith K A N B A N w ith o u t M R P

(M R P w ill te rm in a te fo r th e s e m a te r ia ls ).

R e p le n is h m e n t e le m e n ts (d e liv e ry -re le v a n t) a re c re a te d b y K A N B A N

p e r c o n ta in e r (d ire c t re fe re n c e fro m k a n b a n to re c e ip t e le m e n t).

AA M a te ria ls A , B a re n o t co n tro lle d w ith K A N B A N

If you do not want the material to be included in the planning run, that is, you do not want any additional

replenishment elements (planned orders or purchase requisitions) to be created, you have to exclude the

material from the planning run in the storage location assigned to the supply area of the supply source.

When the demand source requests a kanban from the supply source, the system creates a replenishment

element (run schedule quantity, production order, purchase order, and so on) for the required quantity

(1:1 reference between a kanban and a replenishment element).

The material is replenished using this element and it is also backflushed with reference to this element.

The system also posts the goods receipt to this element when the material is delivered (manual GR

recognizes relevant kanban).

At the storage location excluded from the planning run, the BOM is not exploded further. That is,

procurement elements in this storage location do not create dependent requirements for the components

of the material controlled by KANBAN procedures. Therefore, if a material planned in this way has

lower-level components, these components can only be procured using KANBAN or consumption-based

planning procedures.

However, it is possible to plan the component requirements using long-term planning. In long-term

planning, you can also create simulative dependent requirements for KANBAN materials which

provides you with the information you require to negotiate with your vendors.


S A P A G 1 9 9 9

R e q u ire m e n ts F o re c a s t u s in g L o n g -T e rm P la n n in g

S a le s a n d o p e ra tio n s

p la n n in g

Co

mp

aris

on

M R P / M P S

D e m a n d

p la n n in g

O p e ra tiv e p la n n in g

C o n tro llin g

P ro d u c tio n

c o n tro l

C a p a c ity

p la n n in g

C o s t c e n te rC o s t c e n te r

p la n n in gp la n n in g

P u rc h a s in gP u rc h a s in g

in fo rm a tio nin fo rm a tio n

s ys te ms ys te m

C a p a c ityC a p a c ity

p la n n in gp la n n in g

L o n g -te rm p la n n in g

D e m a n dD e m a n d

m a n a g e m e n tm a n a g e m e n t

S im u la tiv eS im u la tiv e

M R PM R P

Simulative planning without having an effect on the current requirements planning.

Mid- to long-term requirements forecast with BOM explosion.

Explosion and requirements forecast also for consumption-based or KANBAN materials.


S A P A G 1 9 9 9

R e p le n is h m e n t S tra te g ie s : K A N B A N w ith o u t M R P

In -h o u s e p ro d u c tio n

P ro c e s s in g w ith C a rd s (m a n u a l K A N B A N )

P la n n e d o rd e r (ru n s c h e d u le q u a n tity )

re p e titiv e m a n u fa c tu r in g

P ro d u c tio n o rd e r d is c re te m a n u fa c tu r in g

E x te rn a l p ro c u re m e n t

P u rc h a s e o rd e r

S c h e d u lin g a g re e m e n t s c h e d u le lin e

S to c k tra n s fe r o rd e r

S c h e d u le lin e s fo r s to c k tra n s fe r s c h e d u lin g

a g re e m e n t

S o u rc e lis t


S to c k tra n s fe r w ith re s e rv a tio n

D ire c t tra n s fe r p o s tin g

S to c k tra n s fe r fro m W M

(C) SAP AG LO235 5-10

S A P A G 1 9 9 9

M a te ria l K

P la n t 1 2 0 0


u s in g K A N B A N

w ith M R P



w ith o u t M R P

S to r. lo c . 1

S to r. lo c . 2


M R P

in d ic a to r = 'b la n k '

M R P


M R P

in d ic a to r = 1

M a s te r D a ta R e p le n is h m e n t S tra te g ie s w ith o u t

M R P : M a te ria l M a s te r

If you want to use KANBAN without MRP, you must have excluded the material from MRP in the

material master, at the storage location at which you wish to use KANBAN.

This has the effect that no replenishment elements (such as planned orders) are created for this material

in exactly this storage location by the planning run. A replenishment element is only created when a

container is set to EMPTY.

You therefore set a material as 'KANBAN' not at plant level in the material master, but only per storage

location (using the MRP indicator in the MRP view). This makes it possible to set replenishment by

MRP at one storage location and replenishment by KANBAN for the same material at another storage

location in the same plant.

If you have excluded a material from MRP at a storage location, the system opens a new individual

planning section (material excluded from MRP at storage location) in the stock/requirements list.

For mass maintenance of storage locations, it is possible to enter storage locations collectively, by using

transaction Enter storage locations in the menu of the material master.

For certain replenishment strategies (replenishment with run schedule quantities (planned order)),

replenishment with container control (mixture between KANBAN and MRP), the MRP type in the

material master cannot be ND.

In Customizing for MRP under Planning -> Storage location MRP, you can maintain a MRP indicator

per storage location. This has the effect that when a new material is created in a storage location, the

MRP indicator defined in Customizing is automatically defined for the material at this storage location.

The indicator has no influence on existing materials, however.

(C) SAP AG LO235 5-11

Use: In the BOM explostion, the system's first priority is to post the components from the issue storage

location, which is maintained in the BOM item of the component (field Production storage location). If

a storage location has not been entered in the BOM item, the MRP group of the assembly decides

whether the issue storage location is used from the material master of the component or the production

version of the assembly (strategy for production storage location selection). This strategy is defined

per MRP group in Customizing for repetitive manufacturing under Storage location and supply area

determination

Storage location selection = 1: System reads the production storage location in the material master

of the components as the issue storage location. This procedure is used if there is a specific storage

location for each component in the plant.

Storage location selection = 2: The proposed issue storage location in the production version (of

the assembly or finished product produced) is used as the issue storage location for all components.

If the proposal withdrawal location has been maintained in the production version, the system uses

the assembly's receiving storage location as the withdrawal storage location for all components.

You can define the receiving storage location in the production version of the assembly in field GI

proposed stor. loc. or in the material master record of the assembly in field Issue stor.location. If

neither of these entries has been maintained, you can enter the receiving storage location in the

backflush transaction in Repetitive Manufacturing which is then used as the withdrawal storage

location for the components. You should use indicator 2 when all components lie together in one

storage location close to the production line where they are required.

(C) SAP AG LO235 5-12

Storage location selection =3: As for indicator 1. If it cannot find a storage location, it proceeds as

described for indicator 2.

Storage location selection =4: as for indicator 3, but with reversed sequence.

If a MRP group has not been maintained for the assembly/finished product, the entry in the field

Production storage location from the material master of the component, is read as the issue storage

location for all components.

(C) SAP AG LO235 5-13

S A P A G 1 9 9 9

R e p le n is h m e n t S tra te g ie s : E x te rn a l P ro c u re m e n t

(K A N B A N w ith o u t M R P )


S c h e d u lin g a g re e m e n t s c h e d u le lin e

S to c k tra n s fe r o rd e r (p la n t to p la n t)

a ls o p o s s ib le c ro s s -c o m p a n y-c o d e

S c h e d u le lin e fo r s to c k tra n s fe r

s c h e d u lin g a g re e m e n t (p la n t to p la n t)

a ls o p o s s ib le c ro s s -c o m p a n y-c o d e

S o u rc e lis t

Q u a n tity /v a lu e c o n tra c t c a n b e s p e c if ie d :

c o n tra c t re le a s e o rd e r fo r o u tline a g re e m e n t.

If several control cycles have the same supply source in the control cycle, then this can be maintained in

the source list (simple maintenance for changing the supply source).

For processing with outline agreement (quantity/value contract) the outline agreement is specified in the

source list.

There is always exactly one supply source (no quota arrangement). However, the quota is updated for

materials inclued in the quota arrangement).

(C) SAP AG LO235 5-14

S A P A G 1 9 9 9

P u rc h a s e

o rd e r

1

C re a te s a p u rc h a s e o rd e r o r

c o n tra c t re le a s e o rd e r fo r th e

o u tlin e a g re e m e n t

P o s ts G R fo r p u rc h a s e o rd e r , o r m a n u a l G R fo r p u rc h a s e

o rd e r s e ts k a n b a n to s ta tu s F U L L

E m p tyE m p ty

F u llF u ll

P ro c e s s in g w ith P u rc h a s e O rd e rs

The purchase order (possibly with reference to a contract) is created when the kanban status is set to

EMPTY. The time of printing and the print form, as well as the type and time of the message issue

(immediate, fax, EDI) for the purchase order is defined with the message control.

The delivery date for the purchase order is determined by forward scheduling using the planned delivery

time from the purchasing info record plus the goods receipt processing time from the material master. If

the purchasing info record does not contain a planned delivery time, the planned delivery time from the

material master is used.

There is a 1:1 relationship between the purchase order and the kanban. The kanban indicator is set in the

additional data of the purchase order.

The vendor delivers the goods to the location determined (receiving storage location is taken from the

control cycle, maintenance in material master not necessary). Two options exist for this: the vendor

delivers the goods to a central goods receipt location or goods are delivered directly to the supply area. If

the goods are delivered directly to the production line, the status change (by bar code or kanban board)

triggers an immediate goods receipt posting using the target data.

The goods receipt can also be carried out manually using the transaction for goods receipt (for example,

if you want to make any changes or if you want to enter any additional data). When the goods receipt is

posted, the system changes the status in the background. For this type of goods receipt posting, the

system issues an information message indicating that the goods receipt will be carried out for KANBAN.

It is possible to print a kanban in the central GR with or instead of a goods receipt/issue slip.

The vendor must be defined in the control cycle. The delivery address of the vendor can be defined in

the control cycle. If the system finds no address here, it uses the plant address.

(C) SAP AG LO235 5-15

In the case of under-deliveries (for example, posting a lower actual quantity in the transaction Kanban

Signal) remaining quantities of the purchase order remain. Therefore, in the case of under-deliveries, the

goods receipt should be posted in the inventory management and the final delivery indicator should be

set.

(C) SAP AG LO235 5-16

S A P A G 1 9 9 9

C re a te s a s c h e d u lin g lin e fo r th e

s c h e d u lin g a g re e m e n t

(s c h e d u lin g

a g re e m e n t

s c h e d u le lin e )

P o s ts G R fo r s c h e d u le lin e , o r m a n u a l G R fo r

s c h e d u lin g a g re e m e n t s e ts k a n b a n to s ta tu s

F U L L

E m p tyE m p ty

F u llF u ll

S c h e d u lin g

a g re e m e n t

S c h e d u lin g

a g re e m e n t

1 .4 .9 9

1 .6 .9 9

P ro c e s s w ith S c h e d u le L in e s

When the kanban status is set to EMPTY, the system automatically creates a schedule line. The schedule

line is transferred to the vendor.

The delivery address is taken from the scheduling agreement item (not from control cycle).

At the GR, there is no 1:1 relationship between the kanban and the scheduling agreement schedule line.

In the manual GR, if the scheduled quantity is not equal to the GR quantity, the GR quantity must be

divided amongst the empty kanbans.

It is possible to print a kanban in the central GR with or instead of a goods receipt/issue slip.

The schedule line item number is assigned to the control cycle.

For the schedling agreement item, with which the KANBAN process is to be carried out, the kanban

indicator must be set in the additional data for the scheduling agreement item.

Scheduling agreement items with the kanban indicator cannot have an entry for MRP in the source list.

The scheduling agreement item for the kanban process must be assigned to the same storage location as

the supply area for which the material is being procured.

For the scheduling agreement item, only kanban schedule lines can be created and not manual schedule

lines or MRP schedule lines.

In the case of under-deliveries (for example, posting a lower actual quantity in the transaction Kanban

Signal) remaining quantities of the purchase order remain.

(C) SAP AG LO235 5-17

S A P A G 1 9 9 9

C re a te s a S to c k T ra n s fe r O rd e r o r a

S c h e d u le L in e fo r th e S to c k T ra n s fe r

S c h e d u lin g

A g re e m e n tT h e s u p p ly in g p la n t p o s ts th e

m a te ria l in th e s to c k in tra n s it

o r c a rr ie s o u t a d e live ry .

P o s ts G R fo r s c h e d u le lin e , o r m a n u a l G R

fo r s c h e d u lin g a g re e m e n t

S e ts k a n b a n to s ta tu s F U L L

E m p tyE m p ty

F u llF u ll

P ro c e s s w ith S to c k T ra n s fe r O rd e rs / S to c k

T ra n s p o rt S c h e d u lin g A g re e m e n ts (P la n t to P la n t)

When the kanban is set to EMPTY, a purchase order is created in the receiving location and a release

order in the delivering plant.

The release order is procured and then posted using the goods movement type 351.

In the receiving location posting takes place with movement type 101. However, instead of posting the

goods receipt, the status can also be set to FULL (then goods receipt takes place in the background).

For the process with stock in transit, the GR can only be posted for the amount of the stock in transit.

If the removal from stock in the delivering plant is to be carried out using MM functionality, the vendor

indicator must be set to blank in Customizing for Purchasing (Purchase order processing -> Set up stock

transport order). If the stock transfer is to be carried out in SD, the appropriate vendor has to be

maintained.

The process with stock transport orders/stock transfer scheduling agreements is supported between two

plants from different company codes.

The procedure using the source list is similar to the procedure with standard purchase orders or with

scheduling agreements. The only difference is that the system reads the source list to determine the

source of supply. The vendor or the outline agreement (scheduling agreement, quantity/value contract) is

recorded in the source list. The entry cannot be relevant to MRP for scheduling agreements with the

KANBAN indicator. Moreover, only one entry is allowed so that the scheduling agreement can be

specifically identified in KANBAN procedures. Advantage: If the vendor changes for a kanban material,

that is consumed in several control cycles, the vendor has to be changed simply in the source list, but not

in all control cycles.

(C) SAP AG LO235 5-18

S A P A G 1 9 9 9

A c tiv itie s in E x te rn a l P ro c u re m e n t

A c tiv ity

S ta tu s E M P T Y S ta tu s c h a n g e

S ig n a l fo r

re p le n is h m e n t


S ta tu s F U L L S ta tu s c h a n g e

S c h e d u lin g a g re e m e n t

P la n t < -> P la n t

C re a te s p u rc h a s e o rd e r o r s c h e d u le lin e

O th e r a c tiv it ie s

P o s t G R


G I in s to c k in

tra n s it o r

S D d e live ry

(C) SAP AG LO235 5-19

S A P A G 1 9 9 9

R e p le n is h m e n t S tra te g ie s : In -H o u s e P ro d u c tio n


P ro c e s s in g w ith c a rd s a n d p ro d u c t c o s t c o lle c to r

(m a n u a l K A N B A N )

P ro c e s s in g w ith p la n n e d o rd e r (ru n s c h e d u le

q u a n tity ) a n d p ro d u c t c o s t c o lle c to r

P ro d u c tio n o rd e r

(C) SAP AG LO235 5-20

S A P A G 1 9 9 9

O n ly th e in fo rm a tio n th a t a m a te ria l is to b e p ro d u c e d is c re a te d .

(P rin tin g a n d /o r s e n d in g a k a n b a n , d is p la y in th e k a n b a n b o a rd )

E m p tyE m p ty

F u llF u ll

P o s ts b a c k flu s h (g o o d s re c e ip t a s s e m b ly , b a c k flu s h

c o m p o n e n ts , p o s t p ro d u c tio n a c tiv ity ), o r m a n u a l b a c k flu s h

s e ts s ta tu s to F U L L

P ro c e s s in g w ith C a rd s (M a n u a l K A N B A N )

No replenishment element is created by the system when the demand source sets the kanban status to

EMPTY. The kanban or the information is transferred to the supply source. The supply source receives

the information either via the kanban (card) or via the kanban board. The supply source produces the

kanban quantity.

Backflushing is carried out using the backflush transaction or by setting the kanban status to FULL.

The backflush automatically contains the goods receipt for the finished product, the goods issue of the

components and changes the kanban status to FULL.

If the status is set to FULL or the backflush transaction is posted without component processing, then the

system explodes the current BOM. If you want to change components, you should work with the

backflush transaction where it is possible to branch into the component processing functions.

In the backflush, the production activities are posted to the product cost collector according to the

material calculation.

(C) SAP AG LO235 5-21

When the demand source sets a kanban to EMPTY, a run schedule quantity is created (forward-

scheduling as basic scheduling, no lead time scheduling). The run schedule quantity is a repetitive

manufacturing planned order with order type PE. The kanban or the information is transported by the

demand source to the supply source. If necessary, the card is reprinted at the supply source or it is

attached to the kanban. The supply source receives the information on all the empty containers by means

of the kanban or via the kanban board.

After the container has been filled by the supply source, you have three options:

The supply source backflushes the replenished quantity. In the KANBAN backflush transaction,

goods receipt for the replenished material and goods issue for the components (corresponds to the

current BOM) are linked and the run schedule quantity is deleted automatically. Material costs and

production activities are also posted to the product cost collector corresponding to the material

calculation.

In this backflush transaction, you can also branch into the component processing screen where you

can change component materials or quantities. When you save the backflush, the system

automatically sets the status to FULL.

The demand source sets the container to FULL. Then the system automatically backflushes the

current data of the run schedule quantity. Backflush includes: GR for the replenished material, GI

for the components and deletion of run schedule quantity.

In the backflush and barcode transactions you can make batch entries.

Application: period-oriented production (cost monitoring periodically).

(C) SAP AG LO235 5-22

S A P A G 1 9 9 9

A p ro d u c tio n o rd e r is c re a te d .

It is p o s s ib le to p rin t a k a n b a n w ith th e s h o p flo o r p a p e rs .

P o s ts G R fo r p ro d u c tio n o rd e r , o r G R s e ts k a n b a n to F U L L .

B a c k flu s h c a n p o s t a u to m a tic

g o o d s re c e ip t (n o t re ve rs e d )

E m p tyE m p ty

F u llF u ll

O rd e r h e a d e rO rd e r h e a d e r

O p e ra t io n sO p e ra t io n s

M a te r ia l c o m p o n e n tsM a te r ia l c o m p o n e n ts

P R T sP R T s

2 05 0

1 0 0

P ro c e s s in g w ith P ro d u c tio n O rd e rs fo r D is c re te

M a n u fa c tu rin g

When the demand source sets the kanban to EMPTY, the system creates a production order for the

kanban quantity for the supply source. Depending on the settings in Customizing, this production order

is released automatically and printed. The empty kanban or the information is transferred to the supply

source. The supply source receives the kanban or the shop floor papers, or uses the kanban board. The

order is produced.

Once the order has been completed, the supply source backflushes the quantity produced (with the

backflush transaction in the production control menu). Using the control key in the routing you can set

that the backflush automatically posts the goods receipt (but not the reverse).

Application: order-related production (order-related cost-monitoring, time tickets,...). Although product-

related costing can be used as an alternative with production orders.

(C) SAP AG LO235 5-23

S A P A G 1 9 9 9

In te g ra tio n C o s t A c c o u n tin g

P ro d u c tio n w ith m a n u a l K A N B A N o r ru n s c h e d u le

q u a n titie s

C o lle c tio n o f m a te r ia l c o s ts , p ro d u c tio n a c tiv itie s a n d ov e rh e a d ra te s

a t a c o s t c o lle c to r a s in re p e titiv e m a n u fa c tu r in g

C o s t c o lle c to r s e ttle d p e rio d ic a lly

P ro d u c tio n w ith p ro d u c tio n o rd e rs

C o lle c tio n o f m a te r ia l c o s ts , p ro d u c tio n a c tiv itie s , a n d ov e rh e a d ra te s

in th e p ro d u c tio n o rd e r

In d iv id u a l s e ttle m e n t fo r e a c h p ro d u c tio n o rd e r

(C) SAP AG LO235 5-24

S A P A G 1 9 9 9

A c tiv itie s in In -H o u s e P ro d u c tio n

A c tiv ity


S ig n a l fo r



B a c k flu s h = G o o d s re c e ip t,

c o m p o n e n t b a c k flu s h , p o s t

m a te ria l c o s ts a n d p ro d u c tio n

a c tiv it ie s


R u n s c h e d u le

q u a n tity

-

P ro d u c tio n

o rd e r

C re a te s

ru n s c h e d u le

q u a n tit ie s

C re a te s

p ro d u c tio n

o rd e r

B a c k flu s h

P o s t G R

M a n u a l

K A N B A N

B a c k flu s h

p o s s ib le

(C) SAP AG LO235 5-25

S A P A G 1 9 9 9

R e p le n is h m e n t S tra te g ie s : S to c k T ra n s fe r


S to c k tra n s fe r w ith re s e rv a tio n fro m M M -b a se d

s to ra g e lo c a tio n to M M -b a se d s to ra g e lo ca tio n

D ire c t tra n s fe r p o s tin g from M M -b a se d s to ra g e

lo ca tio n s to M M -b a se d s to ra g e lo ca tio n

S to c k tra n s fe r w ith tra n s fe r re q u ire m e n ts /tra n s fe r

o rd e rs fro m W M -b a s e d s to ra g e lo c a tio n to M M -b a se d

s to ra g e lo c a tio n

(C) SAP AG LO235 5-26

S A P A G 1 9 9 9

S to c k T ra n s fe r w ith R e s e rv a tio n

P o s ts th e s to c k tra n s fe r fo r th e re s e rva tio n (fro m

th e is s u e s to ra g e lo c a tio n to th e p ro d u c tio n

s to ra g e lo c a tio n ), o r a m a n u a l tra n s fe r p o s tin g

(m o ve m e n t typ e 3 1 1 ) s e ts th e s ta tu s to F U L L .

C re a te s a s to c k tra n s fe r re s e rva tio n a s a p la n n e d re c e ip t a t th e

p ro d u c tio n s to ra g e lo c a tio n , a s w e ll a s a m a te ria l re s e rva tio n a s a

p la n n e d is s u e a t th e is s u e s to ra g e lo c a tio n .

E m p tyE m p ty

F u llF u ll

P h ys ic a l s to c k tra n s fe r

Cards are printed at replenishment, using the printer and the form in the kanban data. At goods receipt

(transfer posting), they are printed with or instead of the goods receipt note.

The planned receipt is always on the posting day.

(C) SAP AG LO235 5-27

S A P A G 1 9 9 9

D ire c t T ra n s fe r P o s tin g

O n ly c h a n g e s th e k a n b a n

s ta tu s

fro m E M P T Y to F U L L

N o g o o d s re c e ip t

P o s ts th e s to c k tra n s fe r

fro m


to s to ra g e

lo c a tio nE m p tyE m p ty

F u llF u ll

P h ys ic a l s to c k tra n s fe r

At replenishment, kanban cards are printed using the printer, and the form from the kanban data.

(C) SAP AG LO235 5-28

S A P A G 1 9 9 9

R e p le n is h m e n t fro m W M B a s e d S to ra g e L o c a tio n s

u s in g T ra n s fe r R e q u ire m e n ts (1 )

C o n firm s th e tra n s fe r o rd e r in W M a n d p o s ts th e

s to c k tra n s fe r, o r:

C o n firm a tio n o f th e tra n s fe r o rd e r a u to m a tic a lly

c h a n g e s th e k a n b a n s ta tu s fro m E M P T Y to F U L L a n d

p o s ts s to c k tra n s fe r

C re a te s tra n s fe r

re q u ire m e n t

E m p tyE m p ty

F u llF u ll

T ra n s fe r re q u ire m e n t is c o n v e rte d

a u to m a tic a lly o r m a n u a lly in to a

tra n s fe r o rd e r

Use: You use this function if your supply storage location is managed using WM and you want to

transfer components from these storage locations to the production storage location that is MM-based. In

this way the KANBAN material is taken to an interim storage location and from there is transferred via

the KANBAN control cycle to the supply area.

With this process you initially create a transfer requirement, which will be converted into a transfer order

in Warehouse Management. Only on confirming the transfer order, that is after stock transfer has been

completed, does the system post the material.

Activities:

1.You set a kanban to EMPTY.

2. The system generates a transfer requirement for the Warehouse Management system with one item per

kanban. Alternatively the system can also immediately generate a transfer order (see Prerequisites).

3. Warehouse Management converts the transfer requirement into a transfer order.

4. The material will be transferred from the WM storage location via the kanban interface to the supply

area, which is set in the control cycle.

5. Warehouse Management confirms the order.

6. The system sets the kanban to FULL and posts the goods movement.

Alternatively you can also initially set the kanban to FULL, whereupon the system confirms the open

transfer order in WM in the background and posts the goods movement.

You can only use a transfer order item to confirm a kanban quantity with variance, otherwise the

difference cannot be assigned to any transfer order.

You can print kanban data on the transfer order.

(C) SAP AG LO235 5-29

At replenishment kanban cards are printed using the printer, and the form from the kanban data.

The supply area can be transferred into the transfer order as information.

(C) SAP AG LO235 5-30

Prerequisites:

•You have entered both a WM-based and a KANBAN storage location.

You have created a replenishment strategy with control type 6 for this type of stock transfer (in the

standard system, strategy 0006 is used).

• If you want to create a transfer order directly in the KANBAN application, then you must maintain

Direct TO Creation in the replenishment strategy. If applicable, you have maintained the difference

indicator in the replenishment strategy. If on confirming, the actual quantity does not match the

KANBAN quantity, this value determines where the difference will be posted to.

• In Customizing for WM you have created a storage type and a storage section under Master data and

in the WM application you have created a storage bin (standard system storage type 150).

• In Customizing for WM under Logistics Execution -> Warehouse management -> Interfaces -> Define

kanban under Movement type assignment to kanban supply you have assigned movement type 350 to the

storage type. With this transaction type in WM, the kanban parts are transferred to the interim storage

bin. Under Storage location control in Warehouse Management, you have assigned the WM interim

storage area to the kanban storage location and in addition, you have defined the movement type for the

transfer posting from the WM storage location to the kanban storage location (standard 311).

• You have created a material that shows the WM warehouse number and the storage type both in your

KANBAN storage location (demand source) as well as in your WM storage location (supply source).

• You have created a control cycle for your material, that contains the replenishment strategy mentioned

above, the WM storage location, the storage number above, the storage type and storage bin from the

WM as the KANBAN interface.

(C) SAP AG LO235 5-31

Use: In the replenishment strategies for stock transfer (replenishment with direct transfer posting,

replenishment with reservation, replenishment from WM-based storage locations) you must specifiy a

storage location as the supply source for stock transfer in the control cycle. If there is any unrestricted-

use stock or unrestricted-use consignment stock, you can determine which stock you want using stock

determination. With stock determination you can access both unrestricted-use stock as well as

unrestricted-use consignment stock. In the replenishment strategy Replenishment from WM-based

storage locations, the stock determination is controlled by the WM module.

Prerequisites:

In Customizing for Inventory Management under Stock determination, you have defined, on plant

level, the stock determination strategy, which consists of the stock determination group and the

stock determination rule with further parameters.

In Customizing for KANBAN under Replenishment strategies you have assigned the stock

determination rule on plant level for the appropriate replenishment strategy. For material to be

handled in batches you also assign the batch search procedure.

You have assigned the stock determination group to the component in the material master record.

Batch determination: If a component is a material to be handled in batches, then as well as stock

determination, the MM batch determination is triggered. Here, the batch search procedure must be

maintained (definition in Customizing General Logistics under Batch management -> Batch

determination /Assignment per replenishment strategy in Customizing for KANBAN under

(C) SAP AG LO235 5-32

Replenishment strategies). This search procedure determines the sequence of the strategy types, for

which the system tries, within batch determination, to calculate the strategy records.

(C) SAP AG LO235 5-33

S A P A G 1 9 9 9

A c tiv itie s in S to c k T ra n s fe r

A c tiv ity


S ig n a l fo r




D ire c t tra n s fe r p o s tin g

fro m M M fro m W M

O th e r a c tiv it ie s

T ra n s fe r p o s tin g

R e s e rva tio n

R e s e rva tio n

fro m M M

C re a te s

R e s e rva tio n

M a k e s tra n s fe r

p o s tin g

M a k e s tra n s fe r

p o s tin g C re a te s

tra n s fe r re q m t

C re a te s


C o n firm


(C) SAP AG LO235 5-34

S A P A G 1 9 9 9

K A N B A N w ith M R P : U n it O b je c tiv e s

m a k e th e n e c e s s a ry s e tt in g s fo r K A N B A N

re p le n is h m e n t s tra te g ie s w ith M R P in th e R /3

S ys te m

A t th e c o n c lu s io n o f th is to p ic , yo u w ill b e a b le to :

(C) SAP AG LO235 5-35

S A P A G 1 9 9 9

O v e rv ie w : K A N B A N w ith M R P

P la n n e d o rd e r


E xte rn a l p ro cu re m e n t



AA

CC

DD E E EE

BB

P la n n e d in d p d t re q m ts / sa le s o rd e r

M a te ria ls D a n d E ca n b e p ro cu re d w ith

co n su m p tio n -b a se d p la n n in g , o r w ith

K A N B A N , o r w ith M R P

R e ce ip t e le m e n ts c re a te d fro m M R P

(fo r e xa m p le w e e k ly lo t s ize ) - p u rp o se : fo re ca s t

R e q m ts

T im e

T o d a y

W e e k 1 W e e k 3

M R P c re a te s re c e ip t e le m e n ts (n o t d e liv e ry -re le v a n t) a s a fo re c a s t

W h e n k a n b a n s a re s e t to E M P T Y , a d d itio n a l re p le n is h m e n t e le m e n ts (d e liv e ry

re le v a n t) a re c re a te d p e r c o n ta in e r (in c o n ta in e r -c o n tro l n o re p le n is h m e n t

e le m e n ts , b u t p r in tin g th e c a rd s tr ig g e rs re p le n is h m e n t)

CCM a te ria l C is co n tro lle d b y K A N B A N w ith

M R P

AAM a te ria ls A a n d B a re n o t co n tro lle d

w ith K A N B A N

In this process, the storage location assigned to the supply area is not excluded from MRP.

Receipts, stocks, and requirements are therefore taken into account by MRP (net requirements

calculation also for kanban parts). Lot sizes according to flexible period length are useful; replenishment

elements are created by MRP.

The replenishment elements created in the planning run, however, are not intended to trigger production

or replenishment directly. Instead, they exist to provide the supply source with a forecast.

The advantage of replenishment using KANBAN with MRP: In KANBAN, materials and components

can be planned with MRP, consumption-based planning, as well as with KANBAN.

In this way you can also externally procure components from a vendor with MRP (for example if the

vendor is not prepared to deliver on the basis of a KANBAN process), although you use KANBAN

internally.

However, the container control strategies have to be organized to ensure that the supply source does not

produce the material for the replenishment element created in MRP immediately, but awaits the kanban

call. The material flow is controlled by setting kanbans to FULL and EMPTY.

No direct reference from receipt element to the kanban:

Backflushes and goods receipts are posted without reference to the kanban. This means that you can

backflush daily quantities, for example.

KANBAN only manages the status of the kanban and controls material flow and production using

the kanban signals.

(C) SAP AG LO235 5-36

S A P A G 1 9 9 9

R e p le n is h m e n t S tra te g ie s : K A N B A N w ith M R P

In -h o u s e p ro d u c tio n

C o n ta in e r c o n tro l/p la n n in g w ith M R P

P la n n e d o rd e rs /p la n n in g w ith M R P

P ro d u c tio n o rd e rs /p la n n in g w ith M R P

E x te rn a l p ro c u re m e n t

C o n ta in e r c o n tro l/p la n n in g w ith M R P

S u m m a riz e d J IT c a ll


W ith re s e rva tio n s /p la n n in g w ith M R P

W ith d ire c t tra n s fe r p o s tin g /p la n n in g w ith M R P

C o n ta in e r c o n tro l w ith o u t re s ./tra n s fe r p o s tin g /

p la n n in g w ith M R P

It is often useful to consider components in MRP, that are procured using kanban run schedule quantities

or kanban production orders. This can be necessary if individual raw materials are not procured with

KANBAN, but are planned with MRP by the vendor, or if you want to send your vendor a forecast,

without using long-term planning.

Stock transfer:

The strategy stock transfer with direct transfer posting/planning with MRP, as well as the

strategy with stock transfer with reservation/planning with MRP take place in exactly the same

way as the corresponding strategies without MRP. In these stock transfer strategies, the transfer

posting is posted between the storage locations when kanbans are set to FULL or EMPTY.

In stock transfer with container control/planning with MRP, setting kanbans to EMPTY and

FULL only triggers a status change (and not an automatic transfer posting). Therefore the kanban

signal does not cause transfer posting between the storage locations.

(C) SAP AG LO235 5-37

S A P A G 1 9 9 9

M a te ria l K

P la n t 1 2 0 0



w ith M R P



w ith o u t M R P

S to r. lo c . 1

S to r. lo c . 2

S to r. L o c . P L 0 3

M R P


M R P


M R P

in d ic a to r = 1

M a s te r D a ta : R e p le n is h m e n t S tra te g ie s w ith

M R P :M a te ria l M a s te r

In this process, the storage location assigned to the supply area is not excluded from MRP (MRP

indicator = blank).

(C) SAP AG LO235 5-38

S A P A G 1 9 9 9

C o n ta in e r C o n tro l fo r In -H o u s e P ro d u c tio n , E x te rn a l

P ro c u re m e n t, S to c k T ra n s fe r

O n ly th e in fo rm a tio n th a t a m a te ria l is to b e p ro d u c e d is c re a te d .

(P rin tin g a n d /o r s e n d in g a k a n b a n , d is p la y in th e k a n b a n b o a rd )

O n ly s ta tu s c h a n g e , d is p la y in th e k a n b a n

b o a rd (p o s s ib le to p rin t a n d /o r s e n d a

k a n b a n )

E m p tyE m p ty

F u llF u ll

M R P c re a te s re c e ip t e le m e n ts (n o t d e liv e ry -re le v a n t) a s a fo re c a s t

P rin tin g a n d /o r s e n d in g a k a n b a n tr ig g e rs re p le n is h m e n t (d e liv e r y re le v a n t)

N o re fe re n c e fro m re c e ip t e le m e n t to th e k a n b a n

K A N B A N ru n s a s m a n u a l K A N B A N

In the replenishment strategy container control, setting a kanban to EMPTY only triggers a status

change, and if required, prints a kanban. A goods receipt is not posted.

Exception:

In in-house production with repetitive manufacturing, setting a kanban to FULL could cause goods

receipt for the amount of the container target quantity. Manual postings do not have any influence

on a container status (a goods receipt for the purchase order does not set the kanban to FULL, no

reference to the kanban). In this case only differences can be posted manually (for example:

container quantity 21 pieces, planned quantity however, is 20 pieces. In this case you post 20 pieces

on setting to FULL, and you post the difference of 1 piece manually).

In external procurement with scheduling agreements (kanban indicator in scheduling agreement =

blank, as the schedule lines are created from MRP and not from KANBAN) a goods receipt for the

amount of the planned container quantity is possible, when setting the kanban to FULL. Manual GR

postings for the scheduling agreement do not have any influence on a container status (a goods

receipt for the scheduling agreement does not set the kanban to FULL, no reference to the kanban).

In this case only differences can be posted manually.

If you use scheduling agreements, kanbans can be sent by EDI, using a user exit.

Note: While in container control (in the two cases above), only differences can be posted (as

manual postings do not have any influence on the container control), the replenishment strategy

stock transfer with reservation/planning with MRP also leads to a manual posting at the status

change (as here, there is a 1:1 relationship between reservation and kanban).

(C) SAP AG LO235 5-39

For stock transfer with container control the supply source and the receiving supply source belong to a

storage location.

(C) SAP AG LO235 5-40

Use: With the summarized JIT call you can transmit calls which are relevant for delivery directly from

production to a vendor (and not from MRP).

First, you generate schedule lines from requirements planning as a forecast, which you transmit as

a forecast delivery schedule or a JIT delivery schedule to the vendor. This forecast or JIT delivery

schedule is not delivery relevant for the vendor, but he uses it for his own planning.

As soon as you really need the material in production, generate a summarized JIT call, which is

relevant for delivery, by setting a kanban to EMPTY or create a new item in an existing JIT call.

This summarized JIT call is then sent to the vendor in the form of a letter, fax, e-mail, or EDI. The

dispatch is controlled by message determination. Message determination checks whether a message

can be found for the criteria entered and triggers a message default.

The summarized JIT call is relevant for delivery for the vendor. Kanbans are delivered

corresponding to the summarized JIT call.

A summarized JIT call contains a delivery date by which the vendor must deliver the requested quantity

of materials to supply production. A summarized JIT call can contain delivery dates using exact times as

well as exact days. For a summarized JIT call with several items, the item with the earliest date defines

when the material must be delivered to this JIT call.

In addition, a JIT call can contain an unloading point for the materials.

You can trigger a summarized JIT call both via classic as well as event-driven KANBAN.

(C) SAP AG LO235 5-41

Use: You group material requirements, or kanbans, in order to achieve optimization in delivery. If you

have set the grouping of material requirements in the system, then on emptying a kanban, the system

checks whether this material requirement can be attached to an existing summarized JIT call. If this is

the case, then the system generates an item for an existing summarized JIT call. If this is not the case, the

system creates a new summarized JIT call (no items can be added to transmitted summarized JIT calls).

In principle, you can only group kanbans that have

the same vendor

the same message partner

the same plant and that

have not yet been transmitted.

If you decide to group kanbans, then you may choose the type of grouping:

according to plant

according to plant and unloading point

according to delivery date (if you group according to delivery date, then you must also always

group according to plant or according to plant and unloading point).

(C) SAP AG LO235 5-42

Determination of message partner:

Problem: A summarized JIT call 000123 refers to a scheduling agreement for material A and B. The

forecast delivery schedule for material A can be sent to a different recipient than the forecast delivery

schedule for material B. Who should the summarized JIT call be sent to?

Solution: In the summarized JIT call profile a specific partner function is determined for the message

partner. Forecast delivery schedules for various materials are only grouped if the same partners are

maintained in the scheduling agreements under this partner function. The control of the message output

takes place via this message partner.

For the standard case (always the same vendor) you do not need to maintain a partner function.

Message determination always appears when you create a new summarized JIT call. You can transmit

the message to your JIT call at various times. In Customizing for KANBAN enter the dispatch time for

the corresponding message under Define message type for summarized JIT call (under Default settings).

You have the following options:

You start regular output runs which define which summarized JIT calls you have to transmit

(dispatch time 1 and 2).

You test yourself which JIT calls you have to transmit (dispatch time 3).The advantage of this

process is that you can choose messages with specific selection criteria via a report and you can

transmit these in an operation.

You transmit the message directly on creating the summarized JIT call. In this case the system

always creates a new summarized JIT call (dispatch time 4) on emptying a kanban.

(C) SAP AG LO235 5-43

You can carry out the goods receipt both via KANBAN and the summarized JIT call as well as by your

scheduling agreement item.

Starting in the KANBAN menu, you will find a function under JIT calls, which enables you to post

the goods receipt to a JIT call number.

If you post the goods receipt in the foreground, then the goods receipt quantities, which were

suggested for confirmation and which match the quantities to be released can be posted by item.

You can also alter the suggested quantity; i.e. if it is permitted in the scheduling agreement you can

post an under- or over- delivery.

Starting in the Inventory management menu, you find under goods receipt for purchase orders a

function which allows you a manual final backflush for the summarized JIT call or scheduling

agreement. When you carry out the goods receipt in the scheduling agreement, JIT calls or kanbans will not be

updated. You should not use this function for adjustments.

When a kanban is set to FULL, the system posts the quantity, which you have released from your

vendor.

If a summarized JIT call contains several items, you can carry out the goods receipt per item, i.e. per

kanban.

For more information (such as prerequisites) see the SAP Library for KANBAN.

(C) SAP AG LO235 5-44

MRP can also be used for a forecast with KANBAN run schedule quantities and KANBAN production

orders. Two replenishment strategies are provided as standard (in-house strategies 0005 and 0006).

The planned orders from MRP are reduced when KANBAN run schedule quantities or production orders

are created, by setting a kanban to EMPTY. You have to determine the following in the replenishment

strategy for in-house production:

the reduction of planned orders (which planned orders are taken into account)

the reduction period (up until which point planned orders are taken into account)

the recreation of planned orders (in the case of a cancellation of the run schedule quantity of

production order)

(C) SAP AG LO235 5-45

S A P A G 1 9 9 9

R e p le n is h m e n t S tra te g ie s fo r K A N B A N

w ith o u t M R P

R e p le n is h m e n t S tra te g ie s fo r K A N B A N

w ith M R P

R e p le n is h m e n t S tra te g ie s : S u m m a ry

(C) SAP AG LO235 5-46

Replenishment Strategies Exercises

Unit: Replenishment Strategies

Topic: KANBAN with scheduling agreement

schedule lines


trigger replenishment with KANBAN with scheduling

agreement schedule lines

The PC component T-TC## (CD-ROM, without label) is

provided for a parts production in supply area T-P6##.

Replenishment is to be carried out using schedule lines from

vendor 2 (Electronic Components Distributor).

1-1 Create a scheduling agreement for vendor 2:

Logistics Materials Management Purchasing

Outline Agreement Scheduling Agreement Create Vendor Known

Vendor: Agreement type: LP

Purchasing organization: 1000

Purchasing group: 007

Choose Enter and the system displays the scheduling agreement header.

Valid-to date: End of next year

Choose Enter.

Material: T-TC##

Target quantity: 2000 pieces

Net price: 69

Plant: 1200

Storage location: PL06 (to see this column you have to scroll to the right)

Select item 10 and choose

Item Details

Tax code: VN

Set the indicator unlimited (over delivery) (below left).

Choose Enter.

(C) SAP AG LO235 5-47

Select item 10 and choose:

Item More functions Additional data

In the field Kanban indicator, choose the entry X (replenishment element for

KANBAN).

On setting a kanban to EMPTY, the delivery address for the schedule line is transferred

from the scheduling agreement. Therefore, you can maintain the exact delivery address

in the schedule line item. Display the delivery address:

Item More functions Delivery address

Choose Adopt.

Disregard any warnings by clicking Enter and, if necessary, by closing the dialog box.

Save the scheduling agreement and note the number, which is displayed in the status

line in the lower part of the screen:

____________________________________________________________

1-1-1 Why do you have to specify the receiving storage location and the plant in the

scheduling agreement item?

_____________________________________________________

1-2 Now create a control cycle for material T-TC## and supply area T-P6##.

You are already familiar with the menu path.

Material: T-TC##

Plant: 1200

Supply area: T-P6##


Quantity per kanban: 20.

In external source, select strategy 0002 (schedule lines) for the replenishment strategy.

Choose Enter and enter the scheduling agreement along with the line number of the

scheduling agreement (=10) that you created above in the field Agreement.



1-3-1 In the kanban board, set all 5 kanbans for PC component T-TC## to EMPTY.

(C) SAP AG LO235 5-48

Examine the result in the stock/requirements list.

Which and how many replenishment elements were created by setting the

kanbans to EMPTY? What is the available quantity of material T-TC## at

storage location PL06?

______________________________________________________

1-4 Assume that the supply source has delivered two kanbans. Therefore, manually post a

goods receipt for two kanbans:

Menu path:

Logistics Materials Management Inventory Management

Goods Movement Goods Receipt For Purchase Order PO Number Known

Goods receipt for purchase order: enter scheduling agreement number and item

number above (which you noted on the previous page).

Choose Enter.

The system proposes the complete quantity (100 pieces). In the field Quantity

overwrite the quantity to the value 40 pieces.

Set the indicator OK.

Choose Save.

In the following dialog box you must decide which kanban you want to fill with the

goods received. Accept the proposal by choosing Copy.


According to the stock/requirements list, what is the available quantity of material T-

TC## at storage location PL06?

____________________________________________________________

1-5 Assume that the supply source has delivered an additional kanban.

This time, instead of using the goods receipt posting in Inventory Management, use the

manual kanban signal. Change the actual quantity to 18 pieces.

Menu path:


Control Kanban signal Manual entry

Material: T-TC##

Plant: 1200

(C) SAP AG LO235 5-49

Supply area: T-P6##

Using F4-Help in the field Kanban number, choose a container with status EMPTY.

Actual quantity: 18 pieces

Choose Save.


How has the stock/requirements situation changed?

____________________________________________________________

(C) SAP AG LO235 5-50

Exercises


Topic: Manual KANBAN (optional exercises)


create a control cycle for manual KANBAN.

trigger replenishment with manual KANBAN

The PC component T-B8## (CD-ROM, with label) is staged on

production line T-L1## using KANBAN. The supply source is

person responsible L6.

Replenishment is to take place using manual KANBAN.

Optional exercises (these are not a part of the standard course).

2-1 Now create a control cycle for PC assembly T-B8## (CD-ROM drive with label) in

supply area T-P1##.

You are already familiar with the menu path.

Material: T-B8##

Plant: 1200

Supply area: T-P1##


Quantity per kanban: 10 pieces.

In in-house production, select strategy 0001 (manual KANBAN) for the replenishment

strategy.

The material is produced in the area of responsible person L6.

As you initially want to organize replenishment with 4 containers, you must lock one

of the containers. To do this, start from the control cycle and choose:

Goto Kanbans

Set the blocking indicator for one of the kanbans and choose Enter to confirm.


(C) SAP AG LO235 5-51


2-2-1 You are already familiar with the menu path.

Plant: 1200

Choose Supply area and then select T-P1##.

In the kanban board, set all containers for material T-B8## to EMPTY.

Branch directly from the kanban board into the stock/requirements list for this

material.

2-2-2 Were replenishment elements created by setting the kanbans to EMPTY?

______________________________________________________

2-2-3 Now consider the stock situation for assembly T-B8## and its component T-

TC## in the stock/requirements list:

To do so, select the control cycle for material T-B8## in the kanban board and

choose:

Goto Stock/requirements list

Choose Refresh.

2-2-4 What is the available quantity of assembly T-B8## at storage location PL01?

What is the available quantity of component T-TC## at storage location PL06

(the component T-TC## is a component of assembly T-B8##)?

______________________________________________________

2-3 In the kanban board, set one container for material T-B8## to FULL.

2-3-1 Consider the stock situation for assembly T-B8## and component T-TC##

again.

What is the available quantity of assembly T-B8## at storage location PL01.

What is the available quantity of component T-TC## at storage location PL06?

______________________________________________________

______________________________________________________

(C) SAP AG LO235 5-52

Exercises


Topic: KANBAN with planned orders (repetitive

manufacturing)


trigger replenishment with KANBAN with planned orders

The PC component T-B7## (processor coolant unit) is staged

with KANBAN on production line T-L3## and produced on

production line T-L5##. The supply source is person responsible

L5.

Replenishment is to take place with run schedule quantities

(planned orders with the order type PE).


3-1-1 Branch from the kanban board to the control cycle, by double clicking on the

row for material T-B7## (processor coolant unit).

Alternatively, you can select the row for material T-B7## and then choose the

following menu path:

Goto Display control cycle

Who is responsible for the replenishment of the material?

______________________________________________________

3-1-2 In the kanban board, set two kanbans for PC component T-B7## (processor

coolant unit) to EMPTY.


Which replenishment elements were created by setting the kanbans to EMPTY?

(C) SAP AG LO235 5-53

______________________________________________________

Branch from the stock/requirements list to the first planned order by double-

clicking it.

Choose the Display icon, then Components overview.

Which components are required for the production of assembly T-B7##?

______________________________________________________

3-1-3 Now consider the stock situation for assembly T-B7## and its component T-

T8## in the stock/requirements list:

To do so, select the control cycle for material T-B7## in the kanban board and

choose:

Goto Stock/requirements list

Choose Refresh.

What is the available quantity of assembly T-B7## at storage location PL03?

To display the stock situation for components T-T8## and T-T9##, enter the

material numbers of the components, one after the other in the field Material

and each time choose Enter. What is the available quantity of the components

at storage location PL05?

______________________________________________________

3-1-4

The supply source has filled the requested kanban

Now set one container to FULL for material T-B7## in the kanban board.

What happens?

______________________________________________________

3-2 Now create the missing product cost collector for material T-B7##:

Menu path:

Logistics Production Kanban

Environment Repetitive Manufacturing Master Data Product Cost Collector

Collective Entry

Plant: 1200

Material: T-B7##

Order type: RM01 (Product cost collector)

Choose Execute.

(C) SAP AG LO235 5-54

Choose Back twice.

3-3 Now set the second container to FULL.

3-3-1 Now try to set the second container to FULL for material T-B8## (supply area

T-P3##) in the kanban board. Kanbans with errors are discussed in the unit

Error Processing.

Now look at the requirements situation again for assembly T-B7## at storage

location PL03 and its components T-T8## and T-T9## at storage location PL05

in the stock/requirements list:

How have the available quantities changed after the backflush?

______________________________________________________

3-4 Another container is empty.

3-4-1 In the kanban board, set another kanban to EMPTY for PC component T-

B7## (processor coolant unit).

3-4-2 The supply source has now filled the requested kanban. However, due to scrap,

only 19 assemblies instead of 20 were produced for material T-B7##.

Despite this, 20 pieces of component T-T8## and 21 pieces of component T-

T9## have been consumed.

Enter this data, by carrying out the backflush:

Menu path:


Control Backflush

Material: T-B7##

Plant: 1200

Choose Enter.

Select the first kanban that you want to backflush, with the indicator Backflush.

For the first kanban, enter the quantity to backflushed as 19 pieces for the

assembly T-B7## in the column Actual quantity.

As you also want to branch to the component processing to post excess

component consumption, select the indicator Components.

Choose Save. The system takes you to the component processing.

In the following component processing, correct the quantity for the component

T-T8## to 20 pieces as well as component T-T9## to 21 pieces.

Save the backflush.

(C) SAP AG LO235 5-55


3-5-1 What status does the kanban have after the backflush?

______________________________________________________

3-5-2 What is the actual quantity of the full kanban for material T-B7## ? To find this

information, double-click on the kanban in the kanban information.

______________________________________________________

3-5-3 Now look at the requirements situation again for assembly T-B7## and its

components T-T8## and T-T9## in the stock/requirements list:

How have the available quantities changed after the backflush?

____________________________________________________________

(C) SAP AG LO235 5-56

Exercises


Topic: Stock transfer with reservation, direct

transfer posting


trigger replenishment using KANBAN with stock transfer

The PC component T-T8## (aluminum heat sink) and T-T9##

(cooling fan) are staged with KANBAN on production line T-

L5## in supply area T-P5##.

Replenishment is to be carried out using the replenishment

strategies Stock transfer with reservation or Direct transfer

posting from the material storage location.

4-1 You have already created the supply area and both control cycles in one of the previous

exercises.

Therefore you can immediately access the demand source view of the kanban board for

supply area T-P5##.

4-1-1 From the kanban board, display the stock/requirements list for the PC

components T-T8## and T-T9##:

Note the available quantities of both components T-T8## and T-T9## at storage

location PL05 and in general stock.

T-T8##: Loc.PL05: General stock:


4-1-2 Return to the kanban board and set one kanban to EMPTY for both materials

(T-T8## and T-T9##).

4-1-3 Return to the stock/requirements list of both materials.

(C) SAP AG LO235 5-57

Note the available quantities of both components at storage location PL05 and

at general stock:



4-1-4 Where are the differences for both materials?

______________________________________________________

4-1-5 Note the number of the stock transfer reservation for material T-T8##:

______________________________________________________

4-1-6 Material T-T8## is staged using the replenishment strategy Stock transfer with

reservation.

Therefore, carry out the transfer posting for the reservation in Inventory

Management manually:

Menu path:

Logistics Material Management Inventory Management

Goods Receipt Transfer Posting

Transfer posting Create w. reference To reservation

In the Reservation field enter the number of the stock transfer reservation you

noted above.

Choose Enter.

Save the transfer posting and confirm the following dialog box with Enter.

How has the situation changed in the stock/requirements list changed?

______________________________________________________

(C) SAP AG LO235 5-58

Exercises


Topic: KANBAN with MRP – replenishment with

summarized JIT call


trigger replenishment using KANBAN with MRP

(replenishment with summarized JIT call)

The PC component T-T7## (BIOS) is now to be staged in supply

area T-P3## on production line T-L3## using KANBAN with

MRP (replenishment with summarized JIT call).

In this case the vendor receives a forecast of possible future

requirement quantities by schedule lines in MRP.

However, the replenishment elements created in the planning run,

however, are not intended to trigger replenishment directly.

Instead, they exist to provide the supply source with a forecast. A

delivery-relevant summarized JIT call is not created until the

kanban is set to EMPTY. The material flow is controlled by

setting kanbans to FULL and EMPTY.

5-1 Create a new scheduling agreement for vendor 2 (you could also extend the scheduling

agreement you have already created by adding an item):

Menu path:

Logistics Material Management Purchasing

Outline Agreement Scheduling Agreement Create Vendor Known

Vendor: 2

Contract type: LP


Purchasing group: 007

Choose Enter. This takes you to the header of the scheduling agreement.

Run time end: End of next year

Choose Enter.

(C) SAP AG LO235 5-59

Material: T-T7##

Target quantity: 2000 pieces

Plant: 1200

Storage location: PL03 (to see this column you have to scroll to the right)

Select item 10 and choose

Item Details

Tax code: VN

Set the indicator unlimited (below left).

Choose Enter.

Select the item 10 and choose

Item More functions Additional data

In the field Kanban indicator, choose the entry Y (scheduling agreement for

summarized JIT calls).

5-1-1 Why do you have to specify the receiving storage location and the plant in the

scheduling agreement item?

Save the scheduling agreement and note the number, which is displayed in the

status line in the lower part of the screen:

____________________________________________________________

5-1-2 Section 5-1-2 is carried out by the instructor, in order to demonstrate a valid

message condition maintenance for all course participants.

Course participants do not carry out exercise 5-1-2. Course participants

continue directly with exercise 5-2.

Note: The message conditions/message determination is not a part of the

standard course. Here, the necessary data is maintained, simply to be able to

complete the entire process.

Menu path:


JIT Call Message Conditions Create

Output type: MAFO (summarized JIT call print form)

Choose Enter.

In the following dialog box select the key combination Plant/JIT call profile

(JC prof.) /Vendor.

Choose Enter.

Plant: 1200

JIT call profile: 0001

Vendor: 2

Partner function: VD (Vendor)

(C) SAP AG LO235 5-60

Medium: 1 (print output)

Time: 4 (dispatch immediately (on saving the application)

Language: EN (English)

Select the rows and press the button Communication.

In the following screen choose:

Printer: LP01 (Dummy printer)

Select the indicator Print immediately.

Choose Save.

5-2 So that MRP can directly create schedule lines as a forecast, the scheduling agreement

has to be entered in the source list.

Therefore, maintain a source list entry for material T-T7## and the scheduling

agreement item, which you have just created.

Menu path:

Logistics Material Management Purchasing

Master Data Source List Maintain

Material: T-T7##

Plant: 1200

Choose Enter.

Valid from: today

Valid to: End of next year

Contract and item: Enter the number of the scheduling agreement item (noted

above) (scheduling agreement and item number)

Source list use in MRP (Field MRP): 2

Save the source list entry.

5-3 In this exercise scheduling agreement schedule lines are to be created by MRP (not by

KANBAN) for the PC component T-T7## in supply area PVB T-P3##.

Therefore you must set your system so that material T-T7## at storage location PL03

(to which PVB T-P3## belongs) is taken into account by MRP :

Menu path:

Logistics Materials Management Material Master

Material Master Change Immediately

Material: T-T7##

Choose Enter.

Select MRP 4.

Choose Enter.

(C) SAP AG LO235 5-61

Plant 1200

Storage location PL03

Choose Enter.

In the field MRP indicator choose the entry ‘Blank’ (warehouse stock is planned on

plant level).

Save the material master.

5-4 Now change the control cycle for material T-T7## in supply area PVB T-P3##:

Change the replenishment strategy by choosing New strategy.

Use F4-Help in External procurement to display the strategies available.

5-4-1 Which replenishment strategies can you use?

______________________________________________________

5-4-2 Why are the other external procurement strategies for KANBAN without MRP

not displayed?

______________________________________________________

Select strategy 0007 (summarized JIT call without grouping).

Choose Enter.

Enter the scheduling agreement you created above in the field Contract.

Choose Enter.

On the tab page Flow control select the JIT call profile 0001.


5-5 Create the planned independent requirements for the PC assembly T-B5##

(motherboard). The component used above T-T7## (BIOS) is part of this motherboard.

Menu path:

Logistics Production Production Planning Demand Management,

Planned Independent Requirements Create

Material: T-B5## (not T-T7##)

Plant 1200

Planning period: W (week)

Choose Enter.

In the next screen, choose the tab Schedule lines.

Enter the following planned independent requirements using the period indicator W

(C) SAP AG LO235 5-62

(week). Choose Enter to confirm any warning messages.

D Requirements Date Planned Quantity

W This week + 1 week 100 pieces

W This week + 2 weeks 130 pieces





Save the planned independent requirements. Choose Enter to confirm any warning

messages.

5-6 MRP should provide a forecast of possible future requirements using schedule lines.

Now carry out MRP for the PC component B5## (motherboard):

Note: If purchase orders should still exist for component T-T7## (BIOS), from a

previous exercise in the stock/requirements list, delete these before carrying out MRP

for assembly T-B5## (motherboard).

Menu path:

Logistics Production MRP

Planning Single-Item, Multi-Level


Plant 1200

Choose Enter twice.

(C) SAP AG LO235 5-63

5-7 Check the MRP result for component T-T7## (BIOS) and T-B7## (processor coolant

unit).

Both components are recorded in the BOM of assembly T-B5## (motherboard).

Menu path:


Evaluations Stock/Requirements list

What planning differences exist between materials T-T7## (BIOS) and T-B7##

(processor coolant unit) at storage location PL03?

____________________________________________________________

5-8 Now go to the demand source view of the kanban board for supply area T-P3##:

In the kanban board set 2 containers for material T-T7## (BIOS) to EMPTY.

Does setting the kanbans to EMPTY have any effect on the stock/requirements list in

this case? Is a replenishment element created by setting the kanbans to EMPTY?

____________________________________________________________

Double-click the empty container and select Display replenishment in the following

dialog box.

Write down the number of the summarized JIT call:

____________________________________________________________

5-9 In the kanban board, set one container for material T-T7## (BIOS) to FULL.

What effects does this have on the stock/requirements list?

____________________________________________________________

5-10 Now post a manual goods receipt for 20 pieces for component T-T7## (BIOS).

5-10-1 Menu path:


JIT Call Goods Receipt

(C) SAP AG LO235 5-64

JIT call number: Enter the JIT call number above.

Choose Enter to confirm any information messages.

Choose Enter.

Choose Save.

5-10-2 Now go to the demand source view of the kanban board for supply area T-

P3##.

Has the status of any kanbans changed?

______________________________________________________

5-10-3 Branch directly from the kanban board into the stock/requirements list. What

has changed in the stock/requirements list?

______________________________________________________

(C) SAP AG LO235 5-65

Replenishment Strategies Solutions


Topic: KANBAN with scheduling agreement

schedule lines

1-1

1-1-1 The plant and storage location must be specified in the scheduling agreement

item, because the goods receipt will take place in this storage location in the

plant.

1-2

1-3

1-3-1 A total of 5 scheduling agreement schedule lines are created each with 20

pieces. On today’s date there is 0 available.

1-4 The available quantity for material T-TC## at storage location PL06 has increased by

two kanban quantities (40 pieces in total). In addition, two schedule lines can no longer

be seen.

1-5 The available quantity for material T-TC## at storage location PL06 has increased by

18 pieces.

(C) SAP AG LO235 5-66

Solutions


Topic: Manual KANBAN (optional exercises)

2-1

2-2

2-2-1

2-2-2 In manual KANBAN, the system does not create a replenishment element when

the demand source sets the kanban to EMPTY. Only the information that a

material is to be produced is created (such as printing a kanban card). The

supply source receives the information either via the kanban (card) or via the

kanban board. The supply source produces the kanban quantity without

replenishment elements in the system.

2-2-3

2-2-4 The available quantity of assembly T-B8## is 0 pieces. You should have some

available quantity of assembly T-TC## based on the last exercise, the exact

quantity is not important as long as it is greater than 10 pieces.

2-3

2-3-1 The available quantity for the assembly T-B8## at storage location PL01 has

increased by the kanban quantity. The available quantity for the component of

this assembly at storage location PL06 has decreased by 10 pieces.

(C) SAP AG LO235 5-67

Solutions


Topic: KANBAN with planned orders

3-1

3-1-1 The person responsible L5 is responsible for replenishment.

3-1-2 When the kanban is set to EMPTY, a planned order is created for the kanban

quantity.

Which components are required for the production of assembly T-B7##?

Components T-T8## and T-T9## are required for production of the assembly.

3-1-3 T-B7##: 100 pieces at storage location PL03

T-T8##: 100 pieces at storage location PL05

T-T9##:100 pieces at storage location PL05

3-1-4 The container obtains status ERROR, as a product cost collector does not exist

for material T-B7##.

Reason: When the kanban is set to FULL, the goods receipt is posted

automatically. In KANBAN with planned orders (repetitive manufacturing), the

final backflush corresponds to the repetitive manufacturing backflush, which

contains the goods issue postings and the production activities posting.

The material costs and production activities cannot be posted, however, if a

product cost collector does not exist.

You can create a version-specific product cost collector or a cross-version

product cost collector for material T-B7##.

3-2

3-3 T-B7##: 120 pieces at storage location PL03

T-T8##: 80 pieces at storage location PL05

T-T9##:80 pieces at storage location PL05

3-4

(C) SAP AG LO235 5-68

3-4-1

3-4-2

3-5

3-5-1 After the backflush the kanban has status FULL.

3-5-2 The actual quantity of the full kanban is 19 pieces.

3-5-3 Yes, the T-B7## has increased by 19 and the components have been reduced by

the acutal amount used.

(C) SAP AG LO235 5-69

Solutions


Topic: Stock transfer with reservation, direct

transfer posting

4-1

4-1-1 Quantity in plant stock = 100 for both materials, PL05 stock varies.

4-1-2

4-1-3 T-T8##: Plant or Pl05 stock has not changed yet, but reservations and transfers

exist.

T-T9##: General stock went down by 50 and PL05 went up by 50.

4-1-4 For material T-T9## a stock transfer reservation is created as a planned receipt

at production storage location PL05 when the kanban is set to EMPTY. In

addition, a material reservation is created as a planned issue for replenishment

storage location 0001 (material storage location).

The stocks remain unchanged.

For material T-T9## there are no receipt or issue elements. By emptying the

kanban, a direct stock transfer is carried out: the material is posted from the

plant stock to the warehouse stock PL05, which is planned separately.

4-1-5

4-1-6 With manual posting you can change the quantity or enter a batch.

How has the situation changed in the stock/requirements list changed?

T-T8##: The storage location PL05 stock increased by 50 and general plant

stocks were reduced by 50, and the reservation was removed from the list.

(C) SAP AG LO235 5-70

Solutions


Topic: KANBAN with MRP

5-1

5-1-1 As the schedule lines for this scheduling agreement are created by MRP and not

by KANBAN, the scheduling agreement item cannot have a kanban indicator.

5-1-2 The plant and storage location must be specified in the scheduling agreement

item, because the goods receipt will take place in this storage location in the

plant.

5-2

5-3

5-4

5-4-1 You can only select replenishment strategy 0006 (container control/planning

with MRP) or 007 summarized JIT calls (without summary).

5-4-2 Because you set the MRP indicator Blank in the material master for the

material at the storage location, for which a control cycle was created.

5-5

5-6

(C) SAP AG LO235 5-71

5-7 Material T-T7## is now not excluded from MRP at storage location PL03. The stock at

storage location PL03 is now planned along with the rest of the plant stock. Therefore,

schedule lines for storage location PL03 have already been created in the planning run

for material T-T7##.

However, material T-B7## is excluded from MRP at storage location PL03. The

system displays dependent requirements in storage location PL03, however they are

not included in the planning run. Here, replenishment is not triggered until a kanban is

set to EMPTY. As you set a kanban for material T-B7## to EMPTY in a previous

exercise, there is already a planned order for one kanban quantity.

5-8 Setting the kanbans to EMPTY does not have an effect on the stock/requirements list.

When kanbans are set to EMPTY, the system only creates the information that the

material is to be delivered (such as by printing a kanban card).

5-9 By setting the kanban to FULL, the system posts a goods receipt for the scheduling

agreement item for the kanban quantity.

Note: With the replenishment strategy KANBAN with MRP, it is not usually possible

to link setting the kanban to FULL with the goods receipt posting. Exceptions: When

using schedule lines and planned orders (with run schedule headers).

5-10

5-10-1

5-10-2 The kanban was set to FULL.

5-10-3 At storage location PL03, a goods receipt for the scheduling agreement item

was posted for the kanban quantity, as a result of the goods receipt posting to

the JIT call number. The schedule line was also reduced by this amount.


S A P A G 1 9 9 9

A u to m a tic k a n b a n c a lc u la tio n

K a n b a n C a lc u la tio n : C o n te n ts


S A P A G 1 9 9 9


C a lc u la te th e n u m b e r a n d q u a n tity p e r k a n b a n

o n th e b a s is o f th e re q u ire m e n ts s itu a tio n .

In a d d it io n , yo u c a n a d ju s t th e n u m b e r a n d

q u a n tity p e r k a n b a n to s u it a n irre g u la r

re q u ire m e n ts s itu a tio n .

K a n b a n C a lc u la tio n : U n it O b je c tiv e s



S A P A G 1 9 9 9

T h e re q u ire m e n ts s itu a tio n in yo u r c o m p a n y is

irre g u la r.

T o g u a ra n te e lo w s to c k s o f m a te ria l yo u h a v e

to c h e c k a n d a d ju s t th e n u m b e r o f k a n b a n s

a n d th e q u a n tity p e r k a n b a n o n a re g u la r b a s is .

T h e a im is to g u a ra n te e m a te ria l re p le n is h m e n t

w ith th e lo w e s t p o s s ib le in v e n to ry .

T h e re fo re , yo u m u s t c h o o s e th e o p tim a l

n u m b e r o f k a n b a n s a n d q u a n tity p e r k a n b a n .

K a n b a n C a lc u la tio n : B u s in e s s S c e n a rio


S A P A G 1 9 9 9

S u p p ly a re a

C o n tro l c yc le

S u p p ly s o u rc e

N o . o f k a n b a n s in c o n tro l c yc le ?

Q u a n tity p e r k a n b a n in c o n tro l

c yc le ?

to fu lfill re q u ire m e n ts

K a n b a n C a lc u la tio n

D e m a n d s o u rc e

Use: To guarantee low stocks of material with sufficient security of suppy, the number of kanbans and

the quantity per kanban must be chosen carefully. As the inventory situation in many branches of

industry fluctuates considerably, it is necessary to check and adjust these parameters on a regular basis.

Scope of function: If you use the automatic kanban calculation, the system can create proposals for

the number of kanbans and the quantity per kanban. The proposals are created on the basis of the

dependent requirements, that can come either from MRP or from long-term planning.

Activities: The kanban calculation can be triggered per control cycle (Kanban calculation button in the

control cycle). In addition, you can use the transactions Create proposal / Check proposal for a mass

calculation for several control cycles. The kanban calculation process can be divided into the following

steps:

Long-term planning/MRP: Implementation of MRP or long-term planning for creating

planned orders and dependent requirements

Transaction Create proposal: Determine dependent requirements per control cycle

Smoothing dependent requirements per control cycle

Conversion of the dependent requirements to the time unit of the replenishment

time

Calculation of the number of kanbans /quantity per kanban

Saving the change proposal


Transaction Check proposal : Display the change proposal

Additional evaluations (optional)

Change the control cycle

If the number of kanbans is to be reduced, the corresponding kanbans are locked according to the lock

logic (in Customizing for KANBAN under Kanban calculation).


S A P A G 1 9 9 9

D e p e n d e n t R e q u ire m e n ts a s a B a s is fo r th e

K a n b a n C a lc u la tio n





D e p e n d e n t rq m tK 1K 1

S im . p la n n e d o rd e r



S im . d e p e n d e n t rq m t

S im . d e p e n d e n t rq m t

K 1K 1

K 2K 2 K 3K 3

P la n n e d in d e p e n d e n t re q u ire m e n ts / s a le s o rd e r

K a n b a n c a lc u la tio n fo r c o n tro l

c yc le K 1 w ith d e p e n d e n t

re q u ire m e n ts fro m M R P .

K a n b a n c a lc u la tio n fo r c o n tro l c yc le

K 3 w ith s im u la tive d e p e n d e n t

re q u ire m e n ts fro m lo n g -te rm

p la n n in g .

K ...K ...R e p le n is h m e n t w ith

K A N B A N (K A N B A N

w ith o u t M R P )


w ith M R P

The automatic kanban calculation is created on the basis of dependent requirements. There are three

different cases:

Above the kanban material, for whose control cycle you are carrying out the kanban calculation,

replenishment takes place via MRP. In this case there are dependent requirements for the kanban

material, which come from planned independent requirements or sales orders of the finished

product. In this case you can carry out the kanban calculation on the basis of dependent

requirements from MRP.

Above the kanban material, for whose control cycle you are carrying out the kanban calculation,

replenishment also takes place via KANBAN (with replenishment strategy 'KANBAN without

MRP'). Since MRP terminates with kanban materials, there are, in this case, no dependent

requirements for the kanban material, which come from planned independent requirements or sales

orders of the finished product.

Therefore, you must plan the finished product with long-term planning. Long-term planning is a

simulative requirements planning. You can also create simulative dependent requirements with it,

as well as simulative planned orders throughout the entire BOM. These simulative dependent

requirements and planned orders are not visible in operative planning, they simply exist in a

simulative long-term planning scenario.

In this case you can carry out the kanban calculation on the basis of simulative dependent

requirements of a long-term planning scenario.

You can also use long-term planning if replenishment takes place via MRP above the kanban

material. This is used if you want to carry out the kanban calculation on the basis of a simulation


planning.

For more information on long-term planning, see the SAP Library.


S A P A G 1 9 9 9

S m o o th a ll d e p . re q m ts a c c . to d is tr ib u tio n k e y (s m o o th in g typ e 2 )

N o n w o rk in g tim e

S m o o th a ll d e p e n d e n t re q u ire m e n ts in a w e e k (s m o o th in g typ e 1 )

D is tr ib u tio n k e y (e .g .

e q u a l d is tr ib u tio n )


T im e

Q u a n tity

S m o o th in g D e p e n d e n t R e q u rie m e n ts fo r K a n b a n

C a lc u la tio n

The automatic kanban calculation is created on the basis of the dependent requirements, that can

come either from MRP or from long-term planning.

The dependent requirements dates are scheduled in MRP/long-term planning at the order start date of the

order because of the assumption that all components have to be at the beginning of the order. That is, the

components and their requirements date are on a specific day, although the requirements source is

produced over a period (often several days).

In KANBAN, you can usually take for granted that not all components have to be provided at the same

time for the start date of the order. Therefore, it may be necessary to smooth the dependent requirements

before calculating the control cycles.

For smoothing the dependent requirements you can choose between two smoothing types (definition in

Customizing for KANBAN and assignment in the control cycle):

1.: Dependent requirements in one week are distributed evenly over the week. Then it is not necessary

to carry out the kanban calculation for every day but for every week. This type of smoothing is

particularly useful if you plan on a weekly basis.

2.: Dependent requirements are distributed between the dependent requirements date (corresponds to

the start date of the requirements source) and the latest dependent requirements date (corresponds to

the end date of the requirements source) using a distribution key. This process is more performance

intensive than the weekly distribution. In this procedure, the system finds the distribution key either

from the BOM item of the individual dependent requirements or if it has been defined centrally for the

kanban calculation in Customizing for KANBAN (calculation profile) and assigned to the control

cycle. Here, equal distribution usually makes most sense.

(C) SAP AG LO235 6-10

Use: In the BOM explosion, the system's first priority is to post the components from the issue storage

location, which is maintained in the BOM item of the component (field Production storage location). If

a storage location has not been entered in the BOM item, the MRP group of the assembly decides

whether the issue storage location is used from the material master of the component or the production

version of the assembly (strategy for production storage location selection). This strategy is defined

per MRP group in Customizing for repetitive manufacturing under Storage location and supply area

determination.

Storage location selection = 1: System reads the production storage location in the material master

of the components as the issue storage location. This procedure is used if there is a specific storage

location for each component in the plant.

Storage location selection = 2: The proposed issue storage location in the production version (of

the assembly or finished product produced) is used as the issue storage location for all components.

If the proposal withdrawal location has been maintained in the production version, the system uses

the assembly's receiving storage location as the withdrawal storage location for all components.

You can define the receiving storage location in the production version of the assembly in field GI

proposed stor. loc. or in the material master record of the assembly in field Issue stor.location. If

neither of these entries has been maintained, you can enter the receiving storage location in the

backflush transaction in Repetitive Manufacturing which is then used as the withdrawal storage

location for the components. You should use indicator 2 when all components lie together in one

storage location close to the production line where they are required.

(C) SAP AG LO235 6-11

Storage location selection =3: As for indicator 1. If it cannot find a storage location, it proceeds as

described for indicator 2.

Storage location selection =4: as for indicator 3, but with reversed sequence.

If a MRP group has not been maintained for the assembly/finished product, the entry in the field

Production storage location from the material master of the component, is read as the issue storage

location for all components.

(C) SAP AG LO235 6-12

S A P A G 1 9 9 9

( K - 1 ) x C o n t = A C x R T

A C x R T

K = -------------------- + 1

C o n t

K

C o n t

R T

A C

A C x R T

K = -------------------- S F + C

C o n t

S a fe ty fa c to r

C o n s ta n t

N o . o f k a n b a n s

Q u a n tity p e r k a n b a n

R e p le n is h m e n t tim e p e r k a n b a n (fro m c o n tro l c yc le o r m a te ria l)

A v e ra g e c o n s u m p tio n p e r u n it o f t im e (fro m d e p e n d e n t re q m ts )

F o rm u la fo r th e A u to m a tic K a n b a n C a lc u la tio n

Calculation type “Number of kanbans”: If the material of the first kanban has been consumed, then

the remaining material quantity

[(number of kanbans - 1) x quantity per kanban]

has to be sufficient to cover the material requirement, until the material has been replenished for this

kanban. Therefore this remaining material quantity must equal the consumption in the replenishment

lead time of a kanban [AC x RT].

In addition, fluctuations in the replenishment lead time and in the consumption must be considered in the

Safety factor. The safety factor is specified in the control cycle (default value 1).

Depending on how KANBAN is used in production, you set the constant in the following way:

If a kanban is reported EMPTY when the kanban is completely empty, the constant is set to '1'.

If the kanban is set to EMPTY when the first part is withdrawn, then the constant is 0.

The constant is specified in the control cycle (default value 1).

If the number of kanbans is constant (2, for example), then the quantity per kanban can also be

calculated (calculation type 'quantity per kanban').

To calculate control cycles you need to know about material requirements on control cycle level.

(C) SAP AG LO235 6-13

If you use the automatic kanban calculation, the system can create proposals for the number of

kanbans and the quantity per kanban.

As in the analysis period a different number of kanbans can be necessary every day, the system saves the

following three values:

the next change, which is necessary for data

the maximal number of kanbans, which is necessary in the analysis period is, as well as

the minimum number of kanbans, which is necessary in the analysis period.

As it is not always of use to simply adopt these values blindly, you can display the requirements run in a

graphic.

Prerequisites for the automatic kanban calculation:

You must maintain the default values for the automatic kanban calculation in the control cycle.

If necessary, you must maintain the authorization profiles in Customizing for KANBAN (if the

dependent requirements are to be smoothed or if you want to maintain work time).

You must assign the supply areas to the BOM items (either via the production version or by

entering the supply area in the material master or in the BOM status long-text tab) as the system

only includes dependent requirements that refer to a supply area.

If necessary, you must maintain the detailed dependent requirements selection in the control cycle.

(C) SAP AG LO235 6-14

S A P A G 1 9 9 9

C o n s u m p tio n in th e re p le n is h m e n t le a d tim e o f a k a n b a n = 1 0 0 p c

Q u a n tity p e r k a n b a n = 1 0 0 p c

1 0 0 p c .

N o . o f k a n b a n s = 1 1 = ---------------- + 1

1 0 p c .

Q u a n tity p e r k a n b a n = 1 0 p c .

1 0 0 p c .

N o . o f k a n b a n s = 2 = ---------------- + 1

1 0 0 p c . M a x im u m s to c k : 2 0 0 p c .

T ra n s p o rt/ s e tu p e ffo rt: lo w

M a x im u m s to c k : 1 1 0 p c .

T ra n s p o rt/ s e tu p e ffo rt: h ig h

Q u a n tity p e r K a n b a n / N u m b e r o f K a n b a n s

The quantity per kanban is the lot size, in which the material is replenished (produced, transported).

The example above shows how the system calculates the number of kanbans in the replenishment lead

time for a specified rate of consumption using different quantities per kanban.

In the first example, a maximum stock level of 200 pieces is calculated (2 kanbans each containing 100

pieces). The transport or setup effort is mimimal.

In the second example, a maximum stock level of 110 pieces is calculated (11 kanbans each containing

10 pieces). The transport or setup effort is higher, however.

Smaller quantities per kanban reduce the average stock in circulation but increase setup, transport, and

monitoring effort. If the replenishment lead time per kanban is shorter when using smaller lots, the

number of kanbans can be reduced further.

Larger quantities per kanban increase the average stock in circulation but decrease setup, transport, and

monitoring effort.

(C) SAP AG LO235 6-15

S A P A G 1 9 9 9

A u to m a tic k a n b a n c a lc u la tio n

K a n b a n C a lc u la tio n : S u m m a ry

(C) SAP AG LO235 6-16

Kanban Calculation Exercises

Unit: Kanban Calculation

Topic:


calculate the number and quantity per kanban on the basis of

the requirements situation

in addition, you can adjust the number and quantity per

kanban to suit an irregular requirements situation.

The PC component T-T7## (BIOS) is staged with KANBAN on

production line T-L3##.

To guarantee low stocks of material you want to check and adjust

the number of kanbans and the quantity per kanban of a regular

basis.

1-1 Now carry out the kanban calculation in the control cycle for PC component T-T7##

(BIOS).

Menu path:


Control Cycle Create

Material: T-T7##

Plant: 1200

Supply area: T-P3##

Maintain the parameters for the kanban calculation:

Calculation type: 1 (calculation of number of kanbans)

Authorization profile: 0001

Choose Enter.

Select the kanban calculation icon to carry out the calculation on the basis of the

dependent requirements in MRP for component T-T7##.

Evaluation from: next Monday

Evaluation to: today + 6 weeks

Choose Enter and the number of kanbans required is displayed.

(C) SAP AG LO235 6-17

To which number of kanbans should the control cycle be corrected in a few weeks?

____________________________________________________________

However, do not change the number of kanbans yet.

Save the control cycle, which now contains parameters for the kanban calculation

(authorization type, calculation profile).

1-2

Optional Exercises (if sufficient time is available)

Now change the planned independent requirements for assembly T-B5##

(motherboard) to study the effects of the kanban calculation for component T-T7##

(BIOS).

Menu path:

Logistics Production Production Planning Demand Management

Planned Independent Requirements Change


Plant 1200

Choose Enter.

In the next screen, choose the tab Schedule lines.

Change the planned independent requirements as follows: Choose Enter to confirm

any warning messages.

D Requirements Date Planned Quantity

W This week + 1 week 100 pieces (no change)

W This week + 2 weeks 130 pieces (no change)

W This week + 3 weeks 130 pieces (no change)




Save the planned independent requirements. Choose Enter to confirm any warning

messages.

(C) SAP AG LO235 6-18

1-3 Now, carry out the planning run for the PC assembly T-B5## (motherboard).

The planning run creates a new dependent requirements situation for the KANBAN

component T-T7##.

Menu path:

Logistics Production MRP

Planning Single-Item, Multi-Level


Plant 1200

Choose Enter twice.

1-4 Carry out the kanban calculation again for PC component T-T7## (BIOS). This time

use the mass kanban calculation in the KANBAN menu:

1-4-1 Menu path:


Control Cycle Kanban Calculation Create Proposal

Plant: 1200

Date from: Next Monday

Date until: Today + 6 weeks

Material: T-T7##

Choose Execute and then confirm the dialog box with Enter.

1-4-2 Return to the KANBAN menu and choose:

Control cycle Kanban calculation Check proposal

Plant: 1200

Material: T-T7##

Choose Enter and the system displays the results of the kanban calculation.

On which date will the previous number of kanbans no longer be sufficient?

According to the calculation, how many kanbans are required in the control

cycle at the next change?

______________________________________________________

As it is not always of use to simply accept these values blindly, you can display

the requirements run in a graphic.

Decide in the graphic whether the proposed number of kanbans is acceptable

for the next change.

(C) SAP AG LO235 6-19

To do this, choose the Graphic key.

Evaluation from: next Monday

Evaluation to: today + 6 weeks

Choose Enter.

After checking the graphic, how many kanbans are required in the control cycle

at the next change?

______________________________________________________

Enter this number of kanbans in the table, in the field Number of new kanbans.

By choosing Save, the system will automatically change the control cycle. To

make sure that you do not change the control cycles too early, choose:

Control cycle Kanban calculation Check proposal. Here you can specify

any necessary time limits.

(C) SAP AG LO235 6-20

Kanban Calculation Solutions

Unit: Kanban Calculation

Topic:

1-1 The number of kanbans should be increased to 6 kanbans in a few weeks time.

1-2

1-3

1-4

1-4-1

1-4-2 On which date will the previous number of kanbans no longer be sufficient?

According to the calculation, how many kanbans are required in the control

cycle at the next change?

You can see the date of the next necessary change to the control cycle in the

field Date of next change of a kanban control cycle.

At the next change the control cycle should be corrected to 8 kanbans.

After checking the graphic, how many kanbans should the control cycle be

corrected to at the next change?

At the next change the control cycle should be corrected to seven kanbans.


S A P A G 1 9 9 9

C ro s s -p la n t K A N B A N

P ro c u re m e n t a n d W ith d ra w a l to C o s t C e n te r

K A N B A N w ith S D D e liv e ry

S e p a ra te G o o d s R e c e ip t

In d e p e n d e n t S u p p ly S o u rc e

D e fin e yo u r o w n S ta tu s S e q u e n c e s

D e fin e yo u r o w n A c tiv ite s a t S ta tu s C h a n g e

Q u a n tity S ig n a l

A lte rn a tive P ro c e d u re s fo r T rig g e rin g R e p le n is h m e n t

E v e n t-D riv e n K A N B A N

S p e c ia l P ro c e d u re s : C o n te n ts


S A P A G 1 9 9 9


A d a p t th e k a n b a n p ro d u c tio n p ro c e d u re to s u it

s p e c ia l re q u ire m e n ts b y m a k in g s e v e ra l

s e tt in g s in th e c o n tro l c yc le a n d in

C u s to m iz in g .

S p e c ia l P ro c e d u re s : U n it O b je c tiv e s



S A P A G 1 9 9 9

In yo u r c o m p a n y , yo u h a v e to a d ju s t th e

K A N B A N p ro c e d u re in th e R /3 S ys te m to s u it

s p e c ia l re q u ire m e n ts .

Y o u h a v e to m a k e s e tt in g s in th e c o n tro l c yc le

a n d in C u s to m iz in g .

S p e c ia l P ro c e d u re s : B u s in e s s S c e n a rio


S A P A G 1 9 9 9


P la n t A

(re q u e s tin g p la n t)

P o s ts g o o d s re c e ip t in re q u e s tin g p la n t A a s w e ll a s

b a c k flu s h (g o o d s is s u e s ) in is s u in g p la n t B

...P la n t B

(is s u in g p la n t)

E m p tyE m p ty

F u llF u ll

R e p le n is h m e n t is tr ig g e re d

Use: You also have the option of using KANBAN cross-plant for the replenishment strategies stock

transfer and in-house production. In the case of in-house production you can trigger production directly

in the production plant.

Prerequisites: You create either an in-house production or a stock transfer replenishment strategy with

the indicator From other plant.

• You enter this replenishment strategy in your control cycle.

• If you enter such a replenishment strategy, then you must also maintain the Issuing plant along with

other entries at the supply source in the tab page Stock transfer or In-house production.

Scope of function:

• You trigger the production directly in the production plant, i.e. in the issuing plant. You post the goods

receipt in the requesting plant and the goods issue and the backflush in the issuing plant.

You can use this plant-to-plant process for all in-house strategies.

• Stock transfer: You transfer your KANBAN material from plant to plant without having to create a

stock transfer order.

Again, you can use this cross-plant process for all in-house replenishment strategies.


S A P A G 1 9 9 9

P ro c u re m e n t a n d W ith d ra w a l to C o s t C e n te r:

1 ) W ith d ra w a l

E m p tyE m p ty

F u llF u ll

P o s ts g o o d s re c e ip t to


P o s ts w ith d raw n m a te ria ls

fro m s to ra g e lo c a tio n

to c o s t c e n te r


S u p p ly s o u rc e p ro c u re s

th e k a n b a n

Use: You also have the possibility of procuring bulk material, which is not backflushed, via KANBAN.

This bulk material is not contained in the assembly bill of material and cannot, therefore, be assigned to

an assembly. For this reason you must post the costs for this bulk material to cost center as material

overhead costs.

If you use grease in your production, for example, you do not usually assign a certain consumption of

grease to every assembly. In this case, grease is a bulk material and is posted to cost center.

You have two options for this KANBAN process:

• withdrawal to cost center

• procurement to cost center

Scope of function: Withdrawal to cost center:

Here, on setting the kanban to FULL, the system posts the material initially to the storage location of the

demand source (supply area). On setting the kanban to EMPTY the quantity available is then posted to

cost center.

The advantage of this procedure is that the warehouse stock in the production is available in the storage

location and that the bulk material can also be procured by means of in-house production.

However, with double posting the posting effort is larger than with consumption to cost center.


S A P A G 1 9 9 9

P ro c u re m e n t a n d W ith d ra w a l to C o s t C e n te r:

2 ) P ro c u re m e n t

E m p tyE m p ty

F u llF u ll

P o s ts m a te ria l d ire c tly

to c o s t c e n te r


S u p p ly s o u rc e p ro c u re s

th e k a n b a n

Scope of function: Procurement to cost center:

You can consume the material directly to cost center. In this case the system posts the material to cost

center on setting a kanban to FULL. The material is not, therefore, available in the storage location.

You can procure bulk material via KANBAN using external procurement and stock transfer (except with

the replenishment strategy 'Replenishment from a WM warehouse with transfer requirements‘).

The advantage of this procedure is that the posting effort is minimized.

Prerequisites:

•You have provided your material in the material master with the bulk material indicator. In this way

you ensure that this material will not be backflushed.

• You have created a replenishment strategy in Customizing for KANBAN that plans the procurement or

the withdrawal to cost center. If applicable, you have defined the transaction type for the withdrawal to

cost center yourself.

• On creating the control cycle you have entered this replenishment strategy for the bulk material.

• You have entered the cost center in the control cycle on the tab strip (tab page) Sequential control.

With procurement to cost center via scheduling agreement or contract you do not have to enter a cost

center on this tab strip, as the scheduling agreement or contract is already assigned to an account. The

field Cost center is not ready for input in this case.

With all other types of replenishment, however, you must enter a cost center here.


S A P A G 1 9 9 9

K A N B A N w ith S D D e liv e ry (1 )

P o s ts g o o d s re c e ip t to s to ra g e

lo c a tio n (w h ic h in th is c a s e ac ts

a s a G I s to ra g e lo c a tio n ) a n d

c re a te s d e live ry

K a n b a n c a ll fro m c u s to m e r s e ts

s ta tu s to E M P T Y a n d tr ig g e rs


E m p tyE m p ty

F u llF u ll

In U s e

P o s ts g o o d s is s u e a t

d e live ry

S u p p ly s o u rc e p ro c u re s th e

k a n b a n

Use: Usually you supply your own production via KANBAN. Now you have the option of delivering a

kanban directly to your customer via an SD scheduling agreement.

In this process you receive a kanban call from your customer. First of all you procure the desired

material via KANBAN from your goods issue storage location for example, and then you deliver it to

your customer.

Prerequisites:

• You have created an SD scheduling agreement with a delivery block for the delivery due list (in the

standard system SAP uses 08 'KANBAN delivery').

• You have created a replenishment strategy in Customizing for KANBAN that plans the process via

KANBAN with SD. You can use this process for all replenishment strategies (external procurement, in-

house production and stock transfer).

• You have created a KANBAN control cycle for this material with the above mentioned replenishment

strategy and entered the scheduling agreement number and item in the control cycle under Process

Control.


Activities:

1.You receive a KANBAN call from the customer (by fax for example).

2. Starting from the main KANBAN menu, select Control Kanban signal Kanban call and enter

either the scheduling agreement number or determine the scheduling agreement with the search criteria.

In addition, enter the requested quantity. Save your entries. If you receive the message via EDI, then the

system automatically determines the scheduling agreement and processes the requested quantity.

3. The system sets the kanban to EMPTY.

4. In this way the usual KANBAN process begins and the requested quantity is procured, depending on

the replenishment strategy.

5. You set the kanban to FULL as soon as the kanban quantity has been procured.

6. The system posts the kanban quantity to the supply area, which you have entered in your control cycle

and which serves, in this case, as a goods issue warehouse.

7. a) If you have selected the entry 'Delivery when stat.at FULL, GI when stat.at IN USE' in the field

Kanban with SD (in Customizing for KANBAN in the replenishment strategies), then the system creates

a delivery when a kanban is set to FULL. As soon as the kanban has status IN USE, the system posts the

goods issue.

b) If you have selected the entry 'Delivery when status at IN USE, GI manual' in the field Kanban with

SD (in Customizing for KANBAN for the replenishment strategies), then the system does not create the

delivery until the kanban is IN USE. The goods issue must be posted manually.

(C) SAP AG LO235 7-10

S A P A G 1 9 9 9

S e p a ra te G o o d s R e c e ip t

T h e fo llo w in g a re c a rr ie d o u t s e p a ra te ly :

- g o o d s re c e ip t p o s tin g

- s e tt in g th e c o n ta in e r to F U L L

S u p p ly s o u rc e / c e n tra l

g o o d s re c e ip t

p o s ts q u a n tit ie s in

In ve n to ry M a n a g e m e n tD e m a n d s o u rc e

s e ts th e k a n b a n

s ta tu s G RG R

E m p tyE m p ty

F u llF u ll

You usually post the goods receipt and set the kanban status to FULL together. This means that when the

status is changed (using the bar code scanner for example) the system automatically posts a goods

receipt for the material in the background. The other way around is also possible - if a goods receipt is

made for the kanban material, then the status is automatically set to FULL.

However, in the control cycle, you can define that the goods receipt posting and the status change

(kanban to FULL) are to be carried out independently of each other.

This is particularly useful in the following situations:

If the goods receipt for externally procured materials is posted in a central warehouse.

If the goods receipt posting is automatically linked to the backflush (this is always the case in

repetitive manufacturing). Here, for example, you can separate the backflush which is posted by the

supply source from the status change which is changed by the demand source.

If you use planned orders, manual KANBAN, and scheduling agreement schedule lines, you first have

to post the goods receipt before the status can be set to EMPTY again.

(C) SAP AG LO235 7-11

S A P A G 1 9 9 9


T h e k a n b a n h a s s ta tu s W A IT . T h e d e m a n d s o u rc e th e re fo re

d id n o t tr ig g e r re p le n is h m e n t its e lf.

T h e s u p p ly s o u rc e d e c id e s w h e n to tr ig g e r


(s u p p ly s o u rc e s e ts k a n b a n to E M P T Y a g a in ).

1 .

2 .

3 .E m p tyE m p ty

F u llF u ll

W A ITW A IT

T h e d e m a n d s o u rc e s e ts th e

k a n b a n to E M P T Y , h o w e ve r,

th e s ys te m firs t s e ts th e s ta tu s to W A IT . S ta rtin g

p o in t

If you want to trigger replenishment using KANBAN, the system creates the replenishment element

(such as a planned order) when the status is set to EMPTY. However, you can also separate the status

change to EMPTY and the signal for replenishment (independent supply source).

If you have selected this option in the control cycle (indicator independent supply source), it is not the

demand source but the supply source which triggers replenishment. The demand source sets the kanban

to EMPTY. However, no replenishment element is created and the system sets the kanban to status

WAIT. The supply source triggers replenishment for these kanbans in the kanban board (the supply

source sets these kanbans to EMPTY) and thus creates the replenishment elements. The independent

supply source thus determines the time of replenishment itself.

In the control cycle you can maintain the maximum number of kanbans that can be empty, that is the

maximum that can accumulate (field Maximum empty). If this limit is exceeded, replenishment must be

triggered. When you reach the value limit, the supply source is given an exclamation mark in the kanban

board.

This procedure with "independent supply source" can only be used along with the kanban board.

Examples:

If you use production orders, the production orders with capacity loads and reservations are not

created until they are actually required.

A vendor delivers periodically and wants to collect all the new material requests at the time of

delivery (purchase orders, kanban cards).

If you use stock transfer with direct transfer posting, the delivering storage location controls the

material posting.

(C) SAP AG LO235 7-12

S A P A G 1 9 9 9

F u llF u ll

In

tra n s it

E R R O R In

u s e

W A ITW A IT


E m p tyE m p ty

D e fin e d S ta tu s S e q u e n c e

In

p ro c e s s

A status can be forbidden (here IN PROCESS).

A status can be mandatory. A mandatory status must always be set. EMPTY and FULL are always

mandatory. Here, IN TRANSIT is also mandatory.

If you have not made any specifications, the system sets a planned status. However, you can manually

skip these statuses. (Here, IN USE).

The system skips any optional statuses. However, you can set these statuses manually. (Here,WAIT).

If a kanban signal is triggered without the next status being specified, the system searches the next

mandatory or planned status in the relevant status sequence. If the following status is entered, (for

example in transaction Kanban signal), a planned status can be skipped and an optional signal can be

used.

If a status sequence has not been defined, then the sequence EMPTY and FULL is mandatory, and all

others optional.

The following statuses are available: 1. WAIT, 2. EMPTY, 3. IN PROCESS, 4. IN TRANSIT, 5. FULL,

6. IN USE, 7. ERROR.

Signal lock in Customizing for KANBAN: You use the signal lock to determine a period (in minutes) in

which the kanban signal is locked. If you re-trigger the kanban signal within this period, the system will

not change the status. This guarantees that a kanban cannot be set to FULL and then inadvertently set to

EMPTY again by a second signal.

(C) SAP AG LO235 7-13

S A P A G 1 9 9 9

D e fin e y o u r o w n S ta tu s A c tiv itie s

P o s t G R

a n d p rin t k a n b a n

F u llF u ll

In

tra n s it

E R R O R

!!!In

u s e

W A ITW A IT


E m p tyE m p ty

U s e r E x it

(e .g . p o s t s to c k in tra n s it)

In

p ro c e s s

Define your own activities; for each status change you can define the activities goods receipt, printing a

kanban and carrying out a user exit (transaction smod, enhancement MPK B0001, transaction se37:

function module EXIT_SAPLMPKB_001).

The activity Goods receipt can also be switched off at a status change.

Application: KANBAN between two operations of an order.

Example: Order with three operations: in this case a control cycle is created per operation (three control

cycles in total). A separate supply area is created for each individual supply area. For the first two

control cycles, manual KANBAN is chosen as the replenishment strategy. Here, a status sequence is

defined, for which the goods receipt is not active. In the last control cycle the replenishment strategy

KANBAN with planned orders is selected (however, no status sequence for which the goods receipt was

deactivated. On setting the kanban to FULL the goods receipt is posted for the last control cycle. All

control cycles work with the same material number.

(C) SAP AG LO235 7-14

S A P A G 1 9 9 9

7 p a rts h a v e b e e n w ith d ra w n



S ta rt w ith 3 fu ll c o n ta in e rs


1 0 1 0 1 0

1 0 1 0 7

1 0 1 0 0

1 0 2 0

8 0 0

F u llF u ll F u llF u ll F u llF u ll

F u llF u ll F u llF u ll In U s e

F u llF u ll F u llF u ll

F u llF u ll

E m p tyE m p ty E m p tyE m p ty

In U s e

In U s e

E m p tyE m p ty

E m p tyE m p ty


Instead of triggering the kanban signal by setting a kanban to EMPTY, you can withdraw quantities from

kanbans in a control cycle using the quantity signal. Here, the system automatically sets the kanban to

empty.

The actual quantity is reduced by the quantity specified in the quantity signal. The system recognizes

when the actual kanban quantity is zero and automatically sets the kanban to EMPTY. The first time a

quantity is withdrawn from a container, the system sets the status to IN USE. If the withdrawal quantity

exceeds the actual quantity of the kanban, the actual quantity of the next kanban is reduced. This means

the system first reduces the kanbans with status IN USE, and then the kanbans that have had the status

FULL the longest.

Only the actual quantity of the kanban is updated when you use the quantity signal - no stock postings

are carried out. The stock postings are carried out when the material is backflushed.

The kanban is still set to FULL by setting the status to FULL.

It is also possible to combine the kanban and the quantity signals.

(C) SAP AG LO235 7-15

S A P A G 1 9 9 9

O n e -C a rd K A N B A N

K a n b a n

1 . S ta rt w ith a fu ll c o n ta in e r

2 . A n e w c o n ta in e r is re q u e s te d

- fo r s ta tu s IN U S E

- fo r s ta tu s W A IT

- o n re a c h in g a tr ig g e r q u a n tity

3 . T h e n ew c o n ta in e r a rr ive s

4 . F irs t c o n ta in e r is c o m p le te ly e m p ty

F u llF u ll

F u llF u ll

F u llF u ll

T rig g e r

q u a n tity

Use: If there is too little space available in production, to have two containers available at the demand

source, then one-card KANBAN is useful.

One of the purposes of this procedure is to create a one-card KANBAN system with two kanbans in a

control cycle. As a kanban is set to the status WAIT for certain periods in a control cycle, you can

further reduce the inventory level at the demand source - especially during periods when the material is

not required.

Here, replenishment is not triggered if this kanban is set to EMPTY. Instead, replenishment is triggered

for a second kanban, if for the first one is set to

IN USE

or WAIT, or

if the quantity in the first kanban falls below a defined trigger quantity.

The new kanban is then delivered before the current kanban is completely empty.

To be able to guarantee the replenishment of the kanban currently in use, two kanbans are active some of

the time in the one-card system. Therefore, this procedure requires the use of at least two kanbans in the

system. Therefore there are always at least two kanbans in the system.

Prerequisite:

Control cycle with several kanbans

In the control cycle maintenance you must select one of the procedures in the field Trigger

replenishment.

(C) SAP AG LO235 7-16

S A P A G 1 9 9 9

T rig g e r R e p le n is h m e n t a t S ta tu s IN U S E


2 . O n e n ew c o n ta in e r is re q u es te d

3 . T h e n ew c o n ta in e r a rr ive s : s e t to F U L L


(s ta tu s W A IT is a s s ig n e d a u to m a tic a lly )

W A ITW A IT

E m p tyE m p ty

F u llF u ll

W A ITW A IT

F u llF u ll

F u llF u ll

In U s e

In U s e

S e t to s ta tu s IN U S E

S e t to s ta tu s E M P T Y

After the first container is reported full, the system proceeds as follows: the second kanban retains the

status WAIT. If a new kanban is requested, the system sets the full kanban to the status IN USE. The

status change automatically changes the kanban with the status WAIT to the status EMPTY and

replenishment is triggered. When this new kanban is delivered, it receives the status FULL. As soon as

the kanban from which material is still being withdrawn is set to EMPTY, the system automatically sets

it to status WAIT and the process is repeated.

The container must be set to status IN USE, followed by status WAIT.

The information on whether the container is completely empty is available.

(C) SAP AG LO235 7-17

S A P A G 1 9 9 9

T rig g e r R e p le n is h m e n t a t S ta tu s W A IT



(s ta tu s is a u to m a tic a lly a s s ig n e d )



W A ITW A ITF u llF u ll

F u llF u ll

F u llF u ll

E m p tyE m p tyW A ITW A IT

W A ITW A IT

W A ITW A IT


After the first container has been reported full, the logic proceeds as follows: if a new kanban is

requested, then the full kanban is set to status EMPTY. The status change automatically changes the

kanban with the status WAIT to the status EMPTY an replenishment is triggered. The kanban from

which material is still being withdrawn receives the status WAIT. When the new kanban is delivered, it

receives the status FULL and the process is repeated.

Advantage: As opposed to the logic with the status IN USE, you do not have to work with an additional

status here.

Disadvantage: On the other hand, you have no possibility in the system of seeing whether a container is

currently being emptied (status IN USE is not used).

The information on whether the container is completely empty is available.

(C) SAP AG LO235 7-18

S A P A G 1 9 9 9

T rig g e r R e p le n is h m e n t w ith T rig g e r Q u a n tity


b e c a u s e th e tr ig g e r p o in t w as re a c h e d




2 . T h e firs t p a rts a re w ith d raw n

W A ITW A IT

W A ITW A IT

W A ITW A IT

E m p tyE m p ty

F u llF u ll

F u llF u ll

F u llF u ll


The procedure here is similar to the previous procedures. However, the difference here is that the kanban

is set to EMPTY when the remaining quantity in the kanban reaches or exceeds the trigger quantity. In

this process, the parts are withdrawn with the quantity signal. In this case, you must maintain the trigger

quantity as well as the logic in the control cycle. The withdrawal quantity can be either posted with the

quantity signal, or alternatively using a PDC system.

The status change to IN USE and WAIT is triggered by the quantity signal, as is replenishment for the

second container.

At GR for a container, the GR quantity must be greater than the trigger quantity.

Disadvantage: Quantities must be reported individually with the quantity signal.

(C) SAP AG LO235 7-19

Use: In event-driven KANBAN, material provision is not based on a predefined number of kanbans or

a predefined kanban quantity (as in classic KANBAN). Instead, it is based on actual material

consumption. The material is not continually provided and replenished at a supply area. It is only

replenished when specifically requested.

This procedure is especially useful if, for example, requirements for a particular material are irregular,

but you still want to use the benefits of KANBAN to carry out replenishment with a simplified

procedure.

Prerequisite: You must maintain separate control cycles for event-driven KANBAN. In event-driven

KANBAN, you can also use all the functions available in the KANBAN module.

Activities:

1. With the transaction Event-driven KANBAN, or the pull list, one or more kanbans are created. The

quantity or the number of kanbans depends on the required quantity and the specifications in the control

cycle. A replenishment element is created for each kanban created depending on the strategy.

2. Replenishment is carried out.

3. The kanban is set to FULL and, if necessary, a goods receipt is posted.

4. When you set the kanban to EMPTY (for example, using either a bar code or the kanban board), the

system deletes the kanban.

5. A new kanban is not created again until you retrigger the kanban signal using the function, Event-

driven kanban.

Printing cards when triggering replenishment.

(C) SAP AG LO235 7-20

S A P A G 1 9 9 9

In te rn e t K A N B A N

V e n d o r w ith In te rn e tC u s to m e r w ith R /3 S ys te m

C o n firm a tio n

o f k a n b a n s

IN P R O C E S S

In fo rm a tio n o n E M P T Y

k a n b a n s

Using the Internet application component KANBAN, the vendor can request information about empty

containers directly over the Internet. This type of replenishment transmission is an alternative to sending

the vendor the kanban (i.e. the card) or giving the vendor kanbans for empty containers, if he or she

delivers the requested containers. In addition, the vendor can confirm planned deliveries directly over the

Internet.

The Internet application component is a specific view of the kanban board, tailor-made for the vendor's

requirements.

Prerequisites:

The user, who is to check and refill the product stock, must have authorization for access to the

following data: authorization object F_LFA1_APP (vendor: application authorization)

Internet User:To begin the application component in the Internet, the following prerequisites are

necessary:

The vendor must be entered in the vendor master of the SAP customer system.

The vendor requires an Internet user master record of user type BUS1008 and a password in the

SAP customer system.

Using transaction SU05 you can create, change and delete passwords for Internet users. To clearly

identify the vendor, enter the object type BUS1008 next to the vendor number.

For more information, see the KANBAN documentation.

(C) SAP AG LO235 7-21

S A P A G 1 9 9 9

In te rn e t K A N B A N S c re e n P rin t

If you use the Internet application component KANBAN, the vendor receives an overview of all control

cycles for which he has to deliver materials (to restrict the number of control cycles displayed, various

selection criteria are offered). This overview contains the following data per control cycle in the standard

system:

Material number: the system either displays the customer system's material number or the vendor's

material number. To display the vendor's material number, this must be maintained in the purchasing

info record or in the contract or scheduling agreement.

Supply area, number of containers, and quantity per container per control cycle.

The number of empty containers per control cycle: here, the vendor can see the number of containers,

which have been set to EMPTY by the demand source and which he is therefore to deliver.

Number of kanbans to be delivered: in this field the vendor can enter per control cycle, the number of

kanbans that he is to deliver.

Creating the delivery list: The vendor compiles his delivery due list on the basis of this overview. First

of all, he notes the number of containers that he is to deliver, per control cycle, and then he creates the

delivery due list. The system creates the delivery due list from all control cycle rows, in which a delivery

quantity was entered in the last field of the control cycle row.

The system displays the delivery due list in a separate area of the screen.

Confirming the kanbans to be delivered: The vendor can confirm this delivery due list to the

customer. With the confirmation, all kanbans from the delivery list in the customer system are

automatically provided with the status IN PROCESS. If the delivery due list is confirmed, the vendor

receives another window, in which the kanbans posted (and if applicable those not posted) in the

(C) SAP AG LO235 7-22

customer system are listed. In this way, the vendor knows immediately whether errors have occurred on

posting in the customer system or whether the posting has been successful.

(C) SAP AG LO235 7-23

S A P A G 1 9 9 9


P ro c u re m e n t a n d W ith d ra w a l to C o s t C e n te r

K A N B A N w ith S D D e liv e ry

S e p a ra te G R


D e fin e yo u r o w n S ta tu s S e q u e n c e s

D e fin e yo u r o w n A c tiv ite s a t S ta tu s C h a n g e


A lte rn a tive P ro c e d u re s fo r T rig g e rin g


E v e n t-D riv e n K A N B A N

In te rn e t K A N B A N

S p e c ia l P ro c e d u re s : S u m m a ry

(C) SAP AG LO235 7-24

Special Procedures Exercises

Unit: Special Procedures

Topic: Independent supply source


set the R/3 System, so that the supply source can decide about

the time of replenishment itself.

The PC component T-TD## (board for modem) is to be procured

with direct transfer posting from the WM-based storage location

0088. So that the supplying storage location retains control of the

transfer posting, you work with the indicator Independent supply

source in the control cycle.


1-1 Change the control cycle for PC component T-TD## (board for modem), plant 1200

and supply area T-P6## with the following parameters.

On the tab page Flow control set the indicator Independent supply source.



Make sure all kanbans have status WAIT.

__________________________________________________________

1-3 Now go to the storage location 0088 in the supply source view of the kanban board.

Assume that you are now the supply source. From the supply source view, trigger

replenishment for one kanban.

To do this, set the kanban with status WAIT to EMPTY, and choose Save.

1-4 Display the transfer order for the material:

Logistics Logistics Execution Internal Whse Processes

(C) SAP AG LO235 7-25

Transfer Requirement Stock transfer Display transfer order By Material

Warehouse number: 001

Material: T-TD##

Choose Execute.

Position the cursor on the transfer order. Choose the Confirm in the background icon

(next to the Save button) to confirm the transfer order.


What status does the processed container have, and why?

__________________________________________________________

Set the FULL container to EMPTY. What status does it have now, and why?

__________________________________________________________

(C) SAP AG LO235 7-26

(C) SAP AG LO235 7-27

Special Procedures Exercises


Topic: Status Sequence


Adjust the kanban process to special requirements, using the

status sequence.

The PC component T-TB## (casing for modem) is to be procured

with stock transfer purchase orders from plant 1000.

In order for the recipient to recognize that the goods requested are

already on their way, the status IN TRANSIT should be used. To

guarantee this, a status sequence should be used, that prescribes

the use of this status.

2-1 Control the status sequence TRNS in Customizing for KANBAN

Menu path from SAP initial screen:

Tools Accelerated SAP Customizing Edit project Choose SAP Reference IMG

Production KANBAN Status Define status sequence

Which statuses are mandatory in the status sequence TRANS?

____________________________________________________________

(C) SAP AG LO235 7-28

2-2 Create a control cycle with the following parameters for PC component T-TB##

(casing for modem) in plant 1200 for supply area PVB T-P6##:



External procurement: 0003 (stock transfer purchase order)


Issuing plant: 1000

On the tab page Flow control choose:

Status sequence: TRNS



2-3-1 In the kanban board, set one container for material T-TB## to EMPTY.

Which replenishment element was created?

______________________________________________________

Note the number of the stock transfer purchase order:

______________________________________________________

2-3-2 Try to set the kanban in the kanban board directly back to the status FULL.

Why is it not possible to set the kanban to FULL?

______________________________________________________

2-4 Plant 1000 now delivers the goods.

(C) SAP AG LO235 7-29

2-4-1 Go to the supply source view of the kanban board:

Menu path:


Control Kanban Board Supply Source View

Select the Supplying plant and choose the following entry: 1000

Choose Enter.

In the kanban board, set all empty containers to IN TRANSIT.

If you cannot set the status IN TRANSIT, a signal locking time is maintained in

Customizing for KANBAN under Replenishment strategies. In this case the

signal locking time is set at 3 minutes.

This means that a new status cannot be set until three minutes after the last

status change.

In the remaining time you can send your instructor an e-mail (Menu Office)

Your instructor likes getting e-mails.

Note: The signal locking time determines a period in which the kanban signal is

blocked. If you re-trigger the kanban signal within this period, the system will

not change the status. This guarantees that a kanban cannot be set to EMPTY

and then inadvertently set to FULL or IN TRANSIT again by a second signal.

2-5 Now carry out a transfer posting in Inventory Management from supplying plant 1000

to the stock in transit of the receiving plant.

Menu path:

Logistic Materials Management Inventory Management

Goods movement Transfer Posting

Transfer posting Create with reference To purchase order

(C) SAP AG LO235 7-30

In the following dialog box choose:

Movement type: 351

Plant: 1000

In the field Purchase order, enter the number of the stock transfer purchase order noted

above, and the item number of the purchase order.

Choose Enter.

Choose Copy + Detail.

You deliver to plant 1000 from plant 0001. Enter 0001 in the Storage location field.

Enter.

Save the transfer posting.

2-6 Now, assume that the kanban with status IN TRANSIT has just been delivered.

Now go to the demand source view of the kanban board for supply area T-P6##. Make

ure you change the plant back to 1200 if 1000 is set as default.

Set the kanban with the status IN TRANSIT to FULL

(C) SAP AG LO235 7-31

Exercises


Topic: Quantity signal and triggering replenishment

with trigger quantity


Post individual quantities

Use the KANBAN process control to trigger replenishment

for a trigger quantity (before the kanban is set to EMPTY).

The PC component T-B9## (modem) is to be procured with

kanban production orders.

Instead of setting the kanban to EMPTY with the kanban signal,

individual quantities should be posted with the quantity signal.

Whenever the quantity in a kanban reaches the trigger quantity of

3 pieces, a second kanban should be procured.


3-1 Create a control cycle for PC assembly T-B9## (modem), plant 1200 and supply area

T-P1## with the following parameters:



In-house production: 0003 (production order)

The material is produced in the area of person responsible L6.

On the tab page Flow control maintain the following:

Trigger replenishment: 3 (at trigger quantity)

Trigger quantity: 3



3-2-1 In the kanban board, set one container for material T-B9## to EMPTY.

(C) SAP AG LO235 7-32

3-2-2 You can carry out the confirmation of the production order later. Now set the

kanban to FULL.

3-3 Now post individual quantities with the quantity signal:

3-3-1 Menu path:


Control Kanban signal Quantity signal

Material: T-B9##

Plant: 1200

Supply area: T-P1##

Withdrawal quantity: 4

Save.

Monitor the result in a second session in the kanban board.

Repeat the quantity signal with a withdrawal quantity of 3 pieces and monitor

the result in a second session in the kanban board.

Repeat the quantity signal again with a withdrawal quantity of 3 pieces and

control the result in a second session in the kanban board.

Which status change has taken place during the individual posting operations in

the kanban board?

______________________________________________________

(C) SAP AG LO235 7-33

Special Procedures: Solutions


Topic: Independent Supply Source

(C) SAP AG LO235 7-34

1-1

1-2

1-3

1-4

1-5 It has the status WAIT.

(C) SAP AG LO235 7-35

.

(C) SAP AG LO235 7-36

(C) SAP AG LO235 7-37

Special Procedures Solutions


Topic: Status Sequence

2-1 Status 2 (EMPTY), status 4 (IN TRANSIT) and status 5 (FULL) are mandatory statuses.

2-3

2-3-1 A stock transfer purchase order (PO with item type U) has been created for the

amount of the kanban quantity.

2-3-2 As according to the status sequence, before a kanban is set to status FULL, it

must be set to IN TRANSIT.

2-4

2-5

2-6

(C) SAP AG LO235 7-38

Solutions


Topic: Quantity signal and triggering replenishment

with trigger quantity

3-1

3-2

3-3

3-3-1 The actual quantities in the kanbans are reduced by the quantity signal.

Kanbans that are already being used are set to the status IN USE. If the trigger

quantity is reached, or if the quantity falls below this, then another kanban is set

from WAIT to EMPTY to trigger replenishment. If the quantity in a kanban is

reduced to zero, it is set to status EMPTY.


S A P A G 1 9 9 9


E rro r D is p la y

K a n b a n C o rre c tio n : R e p e a t s ta tu s c h a n g e , re s e t s ta tu s o f

yo u r c h o ic e , c h a n g e re p le n is h m e n t e le m e n t, re v e rs a ls

E rro r P ro c e s s in g : C o n te n ts


S A P A G 1 9 9 9


O b ta in a n o v e rv ie w o f a n y e rro rs th a t m a y

h a v e o c c u rre d in K A N B A N p ro d u c tio n c o n tro l,

a n d h o w to a n a lyze th e m .

C o rre c t th e s e e rro rs fro m th e k a n b a n v ie w .

E rro r P ro c e s s in g : U n it O b je c tiv e s



S A P A G 1 9 9 9

S e v e ra l e rro rs h a v e o c c u rre d in th e K A N B A N

p ro c e d u re

Y o u n o w h a ve to a n a lyz e a n d c o rre c t th e s e

e rro rs .

E rro r P ro c e s s in g : B u s in e s s S c e n a rio


S A P A G 1 9 9 9

E rro r D e te c tio n a n d A n a ly s is

D is p la y o f c o n ta in e rs w ith e rro rs in th e k a n b a n b o a rd

S p e c if ie s th e s ta tu s c h a n g e th a t le d to th e e rro r

D a te / tim e o f th e la s t s ta tu s c h a n g e

E rro r m e s s a g e a n d lo n g te x t e x p la in in g e rro r m e s s a g e

D is p la y o f e rro rs in th e e rro r d is p la y

E rro rs d is p la ye d e v e n if c o n ta ine r n o lo n g e r a t e rro r s ta tu s

E rro rs d is p la ye d fo r s p e c if ic d em a n d s o u rc e s

E rro rs d is p la ye d fo r s p e c if ic re p le n is h m e n t s tra te g ie s

As a rule, when a status change is incorrect, the kanban is always set to the status ERROR. You cannot

process the kanban again until you have carried out the kanban correction, which requires corresponding

authorization.

You can define in which cases the system issues an error message, that does not change the status of the

kanban. In all other cases, the system sets the kanban status to ERROR. In many cases, for example if

there is not a valid cost collector for the backflush of a run schedule quantity, it is a good idea to set the

error status as the user has to complete missing data. In other cases, for example if the data is only

temporarily locked by another user, an error message is sufficient. The user can repeat this action at any

time; the kanban retains its status.

Prerequisite: In Customizing for KANBAN under Status -> Define error processing in status change,

you define in which error messages the kanban retains its status. Please read the corresponding

Customizing documentation.


S A P A G 1 9 9 9

K a n b a n C o rre c tio n

R e p e a t s ta tu s c h a n g e


S e t to s ta tu s F U L L

a lw a ys w ith th e re le v a n t fu n c tion a lity

R e s e t a n y s ta tu s

w ith o u t a n y a d d itio n a l fu n c tio n a lity

C h a n g e th e re p le n is h m e n t e le m e n t

R e v e rs a l


Use: In the case of a posting error you can reverse the last kanban signal (for example status to EMPTY

or status to FULL).

Activities: In order to carry out the reversal, press the button Reversal in the kanban correction. This

includes the following actions:

The current container status is reset to the previous status.

The actions linked to the status change are reversed. (That is, purchase orders, reservations and

production orders are flagged with a deletion indicator, planned orders and schedule lines are deleted.

The document from the goods receipt is reversed and so on).

If, on the other hand, you delete the replenishment elements for a kanban (planned order, production

order, purchase order) or give it the deletion indicator, the relevant kanban is set to status WAIT.

In the following cases, a reversal is not possible:

If you have already processed a kanban in the kanban correction, then you can no longer carry out a

reversal.

If a kanban has already been reversed, you cannot reverse this kanban a second time.


S A P A G 1 9 9 9


E rro r D is p la y

K a n b a n C o rre c tio n :

R e p e a t s ta tu s c h a n g e ,

re s e t s ta tu s o f y o u r c h o ic e ,

c h a n g e re p le n is h m e n t e le m e n t,

re v e rs a ls

E rro r P ro c e s s in g : S u m m a ry


Error Processing Exercises

Unit: Error Processing (Optional Exercises)


gain an overview of the errors that have occurred in the

KANBAN process, and analyze the errors,

correct these errors from the kanban view.

In these exercises at least one container was set to the ERROR

status, because a function linked with a status change could not

be carried out.

The errors in the KANBAN process have to be analyzed and

corrected.

1-1 Display all errors that occurred in plant 1200. To do this, follow the menu path in the

KANBAN menu to the error display:

Evaluations Error display

Plant: 1200

Material: T-B7##

Choose Execute.

Note: It is possible that no errors will exist if you did not do the KANBAN and

Repetitive Manufacturing exercise. If you still want to do this exercise, go back and do

this one first.

Now consider all errors that have occurred for this material (for this material you have

caused an error in the exercise ‘Manual KANBAN’).

1-2 Now, carry out the kanban correction for the kanban with the error for material T-

B7##:

1-2-1 To do this, place your cursor on the relevant error message for material T-B7##

and choose Error message long text.

Confirm the long text with Enter.

(C) SAP AG LO235 8-10

1-2-2 Now branch from the error display to the kanban correction.

To do this, place your cursor on the relevant error message for material T-B7##

and choose Kanban correction to process the faulty container.

In the kanban correction, place the cursor on the faulty kanban and choose

Select.

To set the kanban to FULL and to carry out the goods receipt posting, select

Kanban correction.

Confirm the following dialog box with Enter.

(C) SAP AG LO235 8-11

Error Processing Solutions

Unit: Error Processing

Topic:

1-1

1-2

1-2-1

1-2-2


S A P A G 1 9 9 9

C o n tro l C yc le A n a lys is U s in g th e K a n b a n B o a rd

R e p o rtin g E rro rs

L IS S ta n d a rd A n a lys is

E v a lu a tio n s : C o n te n ts


S A P A G 1 9 9 9


E v a lu a te th e c u rre n t k a n b a n s itu a tio n

E v a lu a te a n y e rro rs th a t m a y h a v e o c c u rre d in

th e K A N B A N p ro c e s s

E v a lu a te h is to ric a l d a ta in th e K A N B A N p ro c e s s

E v a lu a tio n s : U n it O b je c tiv e s



S A P A G 1 9 9 9

Y o u a lre a d y u s e th e K A N B A N p ro c e s s in yo u r

c o m p a n y

N o w yo u w a n t to e v a lu a te th e c u rre n t k a n b a n

s itu a tio n

Y o u a ls o w a n t to e v a lu a te h is to ric a l d a ta in th e

K A N B A N p ro c e s s

E v a lu a tio n s : B u s in e s s S c e n a rio


S A P A G 1 9 9 9

O p tio n s A v a ila b le fo r E v a lu a tio n s

C o n tro l C yc le A n a lys is U s in g th e K a n b a n B o a rd

D e m a n d so u rce v ie w

S u p p ly so u rce v ie w

P la n t o v e rv ie w

R e p o rtin g e rro rs (e rro r d is p la y )

D e ta ile d in fo rm a tio n o n e rro rs

B ra n ch to co rre c tio n tra n sa c tio n (ka n b a n co rre c tio n )

L IS S ta n d a rd A n a lys is

D iffe n t d rill-d o w n le ve ls

N u m b e r o f s ta tu s ch a n g e s

T im e s fo r in d iv id u a l s ta tu se s

C o m p a riso n o f ta rg e t / a c tu a l q u a n tit ie s


S A P A G 1 9 9 9

L IS : K e y F ig u re s

W a it

T rig g e r


T ra n s p o rt

F ill

E R R O R

F u llF u ll

In

tra n s it

E R R O R

!!!

In

u s e

W A ITW A IT


E m p tyE m p ty

In

p ro c e s s


S A P A G 1 9 9 9

C o n tro l C y c le A n a ly s is U s in g th e K a n b a n B o a rd

R e p o rtin g E rro rs

L IS S ta n d a rd A n a ly s is

E v a lu a tio n s : S u m m a ry

(C) SAP AG LO235 10-1

S A P A G 1 9 9 9

T h is s e c tio n c o n ta in s a d d it io n a l m a te ria l, th a t c a n

b e u s e d fo r re fe re n c e p u rp o s e s .

T h is m a te ria l is n o t a p a rt o f th e s ta n d a rd c o u rs e .

T h e re fo re , it is p o s s ib le th a t th is m a te ria l w ill n o t

b e d is c u s s e d in th e c o u rs e .

A p p e n d ix

(C) SAP AG LO235 10-2

S A P A G 1 9 9 9

E x a m p le o f a K a n b a n C a rd

Documents

LO235 KANBAN LO235 - · PDF fileGeneral KANBAN Procedure ... Production Orders/Planning with MRP