Unit 4: The Kanban Principle Lesson 1: Drafting Kanban Lesson 2: Using Kanban in Production
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Lesson 1: Drafting Kanban Lesson Objectives After completing this lesson, you will be able to:
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Explain the characteristics of the Kanban principle
Unit 4 Lesson 1
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Figure 61: Application Areas
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Figure 62: Kanban Principle
Unit 4 Lesson 1
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Figure 63: Kanban: Characteristics
Unit 4 Lesson 1
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Summary You should now be able to:
● Explain the characteristics of the Kanban principle
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Lesson 2: Using Kanban in Production Lesson Objectives After completing this lesson, you will be able to:
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Describe the main steps of the Kanban procedure
Unit 4 Lesson 2
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Figure 64: Using Kanban in Production
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Figure 65: Master Data: Production Supply Area
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Figure 66: Master Data: Kanban Control Cycle
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Figure 67: Production Supply Using Control Cycles
Unit 4 Lesson 2
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Figure 68: Setting the Kanban to Empty = Triggering Replenishment
Unit 4 Lesson 2
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Figure 69: Setting Kanban to Full = Posting Goods Receipt
Unit 4 Lesson 2
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Figure 70: Plan-Controlled Production versus Kanban
Unit 4 Lesson 2
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Unit 4 Exercise 19
Exercise 19: Check a Kanban Material . Business Example In plant 1200, you use repetitive manufacturing to produce the mother board assembly TB10##. In order to produce the assembly, the component T-T7## (BIOS) must be staged directly at the production line. Stocks of this component are replenished via external procurement from vendor 2 (Electronic Components Distributor) using Kanban. The components are delivered directly to a supply area, which is directly at the production line. Check the material and supply area prerequisites first. Verify Kanban Material Settings and Supply Area
Component T-T7## (BIOS) is procured using Kanban. Check to see if the master data is set up correctly for Kanban. 1. Check whether material T-T7## in plant 1200 at storage location PL03 is excluded from MRP, so that its replenishment elements are not generated via MRP but via Kanban. 2. Is this material excluded from MRP at storage location PL03?
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Unit 4 Exercise 19
Exercise 19: Check a Kanban Material . ____________________________________________________ ____________________________________________________ 3. Is the same material T-T7## also excluded from MRP at storage location 0001 in plant 1200? Hint: Select Organizational Levels, then enter 0001 in the Storage Location field and choose ENTER. ____________________________________________________ ____________________________________________________ 4. Which MRP indicator is set for this material at storage location 0001? ____________________________________________________ ____________________________________________________ 5. Review the stock/requirements list for material T-T7## in plant 1200. Write down the available quantities (stocks): ____________________________________________________
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Unit 4 Exercise 19
Exercise 19: Check a Kanban Material . 6. How does the system display materials that are excluded from MRP at a storage location in the stock/requirements list? ____________________________________________________ ____________________________________________________ 7. Supply area T-P3## has been set up to stage materials at the production line. Display the supply area T-P3## in plant 1200 by going to the control cycle. To which storage location and person responsible is the supply area assigned?
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Unit 4 Solution 19
Solution 19: Check a Kanban Material . Business Example In plant 1200, you use repetitive manufacturing to produce the mother board assembly TB10##. In order to produce the assembly, the component T-T7## (BIOS) must be staged directly at the production line. Stocks of this component are replenished via external procurement from vendor 2 (Electronic Components Distributor) using Kanban. The components are delivered directly to a supply area, which is directly at the production line. Check the material and supply area prerequisites first. Verify Kanban Material Settings and Supply Area
Component T-T7## (BIOS) is procured using Kanban. Check to see if the master data is set up correctly for Kanban. 1. Check whether material T-T7## in plant 1200 at storage location PL03 is excluded from MRP, so that its replenishment elements are not generated via MRP but via Kanban.
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Unit 4 Solution 19
Solution 19: Check a Kanban Material . a) SAP ECC menu path: Logistics → Production → Master data → Material master → Material → Display → Display current (MM03) b) Choose Enter and select the MRP 4 view. c) Select
Continue.
d) Enter plant 1200 and storage location PL03. e) Select
Continue.
2. Is this material excluded from MRP at storage location PL03? ____________________________________________________ ____________________________________________________ a) Yes. Material T-T7## is excluded from MRP at storage location PL03, as you can see from the Storage Location MRP indicator.
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Unit 4 Solution 19
Solution 19: Check a Kanban Material . 3. Is the same material T-T7## also excluded from MRP at storage location 0001 in plant 1200? Hint: Select Organizational Levels, then enter 0001 in the Storage Location field and choose ENTER. ____________________________________________________ ____________________________________________________ a) No. Material T-T7## is not excluded from MRP at storage location 0001. 4. Which MRP indicator is set for this material at storage location 0001? ____________________________________________________ ____________________________________________________ a) The MRP indicator for material T-T7## at storage location 0001 is set to blank, which means that at storage location 0001, the material is planned using MRP. 5. Review the stock/requirements list for material T-T7## in plant 1200. Write down the available quantities (stocks): ____________________________________________________
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Unit 4 Solution 19
Solution 19: Check a Kanban Material . a) SAP ECC menu path: Logistics → Production → MRP → Evaluations → Stock/ reqmts list (MD04) b) Enter material T-T7##, plant 1200 and select
Continue.
6. How does the system display materials that are excluded from MRP at a storage location in the stock/requirements list? ____________________________________________________ ____________________________________________________ a) Materials that are excluded from MRP at a storage location are displayed in an individual planning segment in the stock/requirements list. 7. Supply area T-P3## has been set up to stage materials at the production line. Display the supply area T-P3## in plant 1200 by going to the control cycle. To which storage location and person responsible is the supply area assigned?
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Unit 4 Solution 19
Solution 19: Check a Kanban Material . a) SAP ECC menu path: Logistics → Production → KANBAN → Supply Area → Display (PK06) b) Enter plant 1200, and select
Continue.
c) Scroll to find your supply area T-P3## and select
Details.
d) The supply area is assigned to storage location PL03 and the person responsible is L3. e) Select
Back twice.
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Unit 4 Exercise 20
Exercise 20: Check the Kanban Control Cycle . Business Example In plant 1200, you use repetitive manufacturing to produce the mother board assembly TB10##. In order to produce the assembly, the component T-T7## (BIOS) must be staged directly at the production line. Stocks of this component are replenished via external procurement from vendor 2 (Electronic Components Distributor) using Kanban. The components are delivered directly to a supply area, which is directly at the production line. Verify the Kanban Control Cycle Settings
In plant 1200, component T-T7## (BIOS) in supply area T-P3## is to be staged directly at the production line. 1. Review the control cycle to see which replenishment strategy is used to stage material at the production line. 2. Since we are dealing with a control cycle for external procurement, the supply source in this case is a vendor. Which supply source has been entered in the control cycle for replenishment of component T-T7##?
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Unit 4 Exercise 20
Exercise 20: Check the Kanban Control Cycle . ____________________________________________________ ____________________________________________________ 3. What method of external procurement is being used? Finally, leave the transaction. ____________________________________________________ ____________________________________________________
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Unit 4 Solution 20
Solution 20: Check the Kanban Control Cycle . Business Example In plant 1200, you use repetitive manufacturing to produce the mother board assembly TB10##. In order to produce the assembly, the component T-T7## (BIOS) must be staged directly at the production line. Stocks of this component are replenished via external procurement from vendor 2 (Electronic Components Distributor) using Kanban. The components are delivered directly to a supply area, which is directly at the production line. Verify the Kanban Control Cycle Settings
In plant 1200, component T-T7## (BIOS) in supply area T-P3## is to be staged directly at the production line. 1. Review the control cycle to see which replenishment strategy is used to stage material at the production line. a) SAP ECC menu path:Logistics → Production → KANBAN → Control Cycle → Control Cycle Maintenance (PKMC)
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Unit 4 Solution 20
Solution 20: Check the Kanban Control Cycle . b) Use the extended selection and enter material T-T7##, plant 1200, supply area T-P3## and select Execute. 2. Since we are dealing with a control cycle for external procurement, the supply source in this case is a vendor. Which supply source has been entered in the control cycle for replenishment of component T-T7##? ____________________________________________________ ____________________________________________________ a) The supply source is vendor 2 (Electronic Components Distributor). 3. What method of external procurement is being used? Finally, leave the transaction. ____________________________________________________ ____________________________________________________ a) Purchase orders are used, as you can see from the external procurement replenishment strategy.
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Unit 4 Exercise 21
Exercise 21: Proceed Kanban Execution . Business Example In plant 1200, you use repetitive manufacturing to produce the mother board assembly TB10##. In order to produce the assembly, the component T-T7## (BIOS) must be staged directly at the production line. Stocks of this component are replenished via external procurement from vendor 2 (Electronic Components Distributor) using Kanban. The components are delivered directly to a supply area, which is directly at the production line. Determine the current Kanban situation in the system. If your stock situation requires it, replenish the BIOS chip T-T7##, with the Kanban technique. Carry out the Kanban Process
1. Access the demand source view of the Kanban board for supply area T-P3## in plant 1200. 2. How many containers are there in the SAP ECC system for replenishment of material T-T7##? ____________________________________________________
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Unit 4 Exercise 21
Exercise 21: Proceed Kanban Execution . 3. Let us assume that you, as the demand source, have just taken the last component out of a Kanban container. From the Kanban board, select one of the Kanban bins for material T-T7## and set it to “empty”. 4. In order to check the result of your action, go directly from the Kanban board into the stock/requirements list. 5. For what quantity has a purchase order been created? ____________________________________________________ 6. What is the current available quantity of material T-T7## at storage location PL03? ____________________________________________________ 7. Let us assume that you have just received a full container from the supply source. In the Kanban board, set the Kanban for material T-T7## to “full”.
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Unit 4 Exercise 21
Exercise 21: Proceed Kanban Execution . 8. What is the result in the stock/requirements list? Hint: Select the row in the Kanban board for material T-T7## and choose from this transaction menu path Goto->Current stock/reqmts list. ____________________________________________________ ____________________________________________________
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Unit 4 Solution 21
Solution 21: Proceed Kanban Execution . Business Example In plant 1200, you use repetitive manufacturing to produce the mother board assembly TB10##. In order to produce the assembly, the component T-T7## (BIOS) must be staged directly at the production line. Stocks of this component are replenished via external procurement from vendor 2 (Electronic Components Distributor) using Kanban. The components are delivered directly to a supply area, which is directly at the production line. Determine the current Kanban situation in the system. If your stock situation requires it, replenish the BIOS chip T-T7##, with the Kanban technique. Carry out the Kanban Process
1. Access the demand source view of the Kanban board for supply area T-P3## in plant 1200. a) SAP ECC menu path: Logistics → Production → KANBAN → Control → KANBAN Board → Demand Source View (PK13N)
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Unit 4 Solution 21
Solution 21: Proceed Kanban Execution . b) Set selection to supply area, enter supply area T-P3## enter plant 1200. c) Select
Continue.
2. How many containers are there in the SAP ECC system for replenishment of material T-T7##? ____________________________________________________ a) Five containers are available for replenishment of material T-T7##. 3. Let us assume that you, as the demand source, have just taken the last component out of a Kanban container. From the Kanban board, select one of the Kanban bins for material T-T7## and set it to “empty”. a) Select one of the purple containers and select To Empty (Set Kanban Status to Empty). Wait until you see the status change (color change of the container).
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Unit 4 Solution 21
Solution 21: Proceed Kanban Execution . 4. In order to check the result of your action, go directly from the Kanban board into the stock/requirements list. a) Select the row in the Kanban board for material T-T7## and choose from this transaction menu path: Goto → Current stock/reqmts list. 5. For what quantity has a purchase order been created? ____________________________________________________ a) A purchase order has been created for a quantity equal to the Kanban container quantity (20 pieces). 6. What is the current available quantity of material T-T7## at storage location PL03? ____________________________________________________ a) This varies. Write down the number belonging to PL03 that can be seen in the stock-/requirements list. Choose the Back button.
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Unit 4 Solution 21
Solution 21: Proceed Kanban Execution . 7. Let us assume that you have just received a full container from the supply source. In the Kanban board, set the Kanban for material T-T7## to “full”. a) Select the empty Kanban bin and select To Full (Set Kanban Status to Full). Wait until you see the status change (color change of the container). 8. What is the result in the stock/requirements list? Hint: Select the row in the Kanban board for material T-T7## and choose from this transaction menu path Goto->Current stock/reqmts list. ____________________________________________________ ____________________________________________________ a) Because a goods receipt has been posted for the Kanban container quantity (20 pieces), the available quantity for material T-T7## at storage location PL03 has increased by 20 pieces as you can see from the quantities you noted before. The purchase order is no longer displayed.
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Summary You should now be able to:
● Describe the main steps of the Kanban procedure
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Open Question
What are the objectives of the Kanban procedure?
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Open Question
What are the objectives of the Kanban procedure?
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. The following objectives can be achieved in many cases by controlling the production process in production itself and by reducing the manual posting effort required: shortening the lead times and reducing the stock
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Open Question
How is replenishment initiated in the Kanban procedure?
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Open Question
How is replenishment initiated in the Kanban procedure?
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. In the Kanban procedure, replenishment is initiated when the demand source sets the container in the system to empty.
TSCM42_2 Name the basic master data of Kanban.
Open Question
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TSCM42_2 Name the basic master data of Kanban.
. Supply areas, Control cycles
Open Question
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Open Question
When is the goods issue typically posted in Kanban?
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Open Question
When is the goods issue typically posted in Kanban?
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. In Kanban, goods issues are typically backflushed when an order is confirmed (or when a goods issue is posted manually for an order). Emptying a Kanban does not result in a goods issue posting.
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Open Question
When is the goods receipt typically posted in Kanban?
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Open Question
When is the goods receipt typically posted in Kanban?
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. If the demand source sets the status to Full, the system automatically posts the goods receipt for the material with reference to the procurement element.
