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The KANBAN method for controlling production and material flow is based on the actual stock
quantity in production. Material that is required on a regular basis is continually provided in small
quantities in production. Replenishment or the production of a material is only triggered when a
higher production level actually requires the material. This replenishment is triggered directly in
production using previously maintained master data.
Master data
Select new entries, Enter plant, supply area, storage location and person responsible
Enter planning strategy as 10 (make to stock) and availability check as 02, save the material.
3. Create semi-finished material for which the Kanban process will be in-house, using Tcode
MM01
Enter storage location for EP (where the material will be stored after its procurement), Default
supply area
(From where the material will get utilized for production) and production storage location (Storage
location assigned to supply area) and save the material
4. Create semi-finished material for which the Kanban process will be in-house, using Tcode
MM01
Enter storage location for EP (where the material will be stored after its procurement), Default
supply area (From where the material will get utilized for production) and production storage
location (Storage location assigned to supply area) and save the material
5. Extend both the semi-finished materials for production storage location using Tcode MM01
Here enter the storage location as production storage location and enter, system will extend the
material for production storage location also, save both the materials
6. Create purchase info record for vendor material combination, for semi-finished material with
external procurement using Tcode ME11
Here in organization data tab, enter planed delivery time, purchasing group, standard quantity
and net price then save the record.
7. Create status sequence for Kanban
whether it is mandatory +
whether it is recommended *
Whether it is optional .
whether it is prohibited –
Enter require goods movement for goods receipt, in this case 101
And planed orders as ‘No planed orders’ and save the strategy
Enter control type as ‘working with purchase orders’ and order type as ‘NB’
Enter goods movement for goods receipt as 101 and save the replenishment strategy
Enter material plant and supply area and select ‘classic Kanban’
Enter number of Kanban (containers), maximum empty and Kanban quantity.
On flow control tab, enter the status sequence and save the control cycle
b. Create control cycle for external procurement Kanban process
Enter external procurement replenishment strategy, Purchasing org and vendor for external
procurement On
Process steps for Kanban process
1. Set the Kanban to EMPTY and FULL by using Tcode PK13N (Demand source overview) and
PK12N (Supply source overview)
Enter plant, production supply area, person responsible and production storage location and
enter
Select first cycle and the Kanban container, select ‘To EMPTY’ tab
System will change the status of Kanban container from full to empty (color will change from
green to red)
Now double click on the Kanban container, here the system will show the production order that
got generated for in-house production of material
Now go to production order change using Tcode Co02 and release the order.
Now do the goods issue for production order from the issue storage location using Tcode MB1A
Now go to Tcode PK13N n system will automatically change the status of container as FULL
Select the Kanban cycle and container and set status as empty by selecting ‘To Empty’ tab
Once the status is changed to empty (Red color), system will generate the purchase order for
procurement from vendor.
Now go to ‘supply source overview’ using Tcode PK12N, Enter person responsible, plant and
vendor and enter
Select the Kanban cycle and container and select ‘status in transit’ tab.
The status will get changed from ‘EMPTY’ to ‘IN TRANSIT’ (from red color to yellow)
Select the cycle and container and change the status to ‘FULL’ by selecting ‘To full’ tab, this will
trigger the goods receipt of material from vendor (yellow color to green)
By double clicking on Kanban container the material and accounting documents can be checked
if necessary
Enter the required quantity on desired date and save the PIR
4. Conversion of planed order to production order (co02) and order confirmation (CO11N) for
finished product
Convert the planed order to production order, release the order and save
Now confirm the order operations using Tcode CO11N
Save the confirmation, system will back flush the components and goods receipt of finished
product will get posted automatically as mentioned in control key.
Finished material stock will get updated in unrestricted use stock at the given storage location