LO235 KANBAN LO235

Release 46C 24.01.2002

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 Overview Diagram 2....................................................................................................................................................... 2-3 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 Overview Diagram 3....................................................................................................................................................... 3-3 KANBAN Master Data: Business Scenario................................................................................................................ 3-4 Supply Area...................................................................................................................................................................... 3-5 Kanban Control Cycle .................................................................................................................................................... 3-6 Supply Sources in the KANBAN Procedure .............................................................................................................. 3-8 Using Control Cycles to Organize Replenishment for Production......................................................................... 3-9 Organization of Production.......................................................................................................................................... 3-10 KANBAN Master Data: Summary ............................................................................................................................. 3-11 Master Data Exercises .................................................................................................................................................. 3-12 Master Data Solutions................................................................................................................................................... 3-15 General KANBAN Procedure............................................................................................................................................ 4-1 General KANBAN Procedure : Unit Objectives........................................................................................................ 4-2 Overview Diagram 4....................................................................................................................................................... 4-3 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).............................................................................................. 4-12 Status Sequence - All Possibilities ............................................................................................................................. 4-13 Logical Stock / Physical Stock (1) ............................................................................................................................. 4-14 Logical Stock / Physical Stock (2) ............................................................................................................................. 4-15 Adjusting to Variable Requirements .......................................................................................................................... 4-16 General KANBAN Procedure: Summary ................................................................................................................. 4-17 General KANBAN Procedure Exercises................................................................................................................... 4-18 General KANBAN Procedure Solutions................................................................................................................... 4-23 Replenishment Strategies: Contents.................................................................................................................................. 5-1 Replenishment Strategies: Unit Objectives................................................................................................................. 5-2 Overview Diagram 5....................................................................................................................................................... 5-3 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 ....................................................................................................................................... 5-15 Process with Stock Transfer Orders / Stock Transport Scheduling Agreements (Plant to Plant) ................... 5-16 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) .................................... 5-29 Stock Transfer with Integrated Stock Determination (Batches, Consignment).................................................. 5-30 Activities in Stock Transfer......................................................................................................................................... 5-31 KANBAN with MRP: Unit Objectives ..................................................................................................................... 5-32 Overview: KANBAN with MRP ................................................................................................................................ 5-33 Replenishment Strategies: KANBAN with MRP .................................................................................................... 5-34 Master Data: Replenishment Strategies with MRP:Material Master.................................................................... 5-35 Container Control for In-House Production, External Procurement, Stock Transfer........................................ 5-36 External Procurement: Replenishment with Summarized JIT Calls ..................................................................... 5-37 Grouping Summarized JIT Calls ................................................................................................................................ 5-38 Message Transmission of Summarized JIT Calls .................................................................................................... 5-39 Goods Receipt with Reference to Sum. JIT Call ..................................................................................................... 5-40 Production Orders/Planning with MRP..................................................................................................................... 5-41 Replenishment Strategies: Summary ......................................................................................................................... 5-42 Replenishment Strategies Exercises........................................................................................................................... 5-43 Replenishment Strategies Solutions........................................................................................................................... 5-62

Kanban Calculation: Contents ........................................................................................................................................... 6-1 Kanban Calculation: Unit Objectives........................................................................................................................... 6-2 Overview Diagram 6....................................................................................................................................................... 6-3 Kanban Calculation: Business Scenario ...................................................................................................................... 6-4 Kanban Calculation......................................................................................................................................................... 6-5 Dependent Requirements as a Basis for the Kanban Calculation ........................................................................... 6-6 Smoothing Dependent Requriements for Kanban Calculation................................................................................ 6-7 Supply Area Determination Procedure ........................................................................................................................ 6-8 Formula for the Automatic Kanban Calculation...................................................................................................... 6-10 Automatic Kanban Calculation................................................................................................................................... 6-11 Quantity per Kanban / Number of Kanbans.............................................................................................................. 6-12 Kanban Calculation: Summary ................................................................................................................................... 6-13 Kanban Calculation Exercises..................................................................................................................................... 6-14 Kanban Calculation Solutions..................................................................................................................................... 6-18 Special Procedures: Contents ............................................................................................................................................. 7-1 Special Procedures: Unit Objectives ............................................................................................................................ 7-2 Overview Diagram 7....................................................................................................................................................... 7-3 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 ..................................................................................................................................... 7-22 Special Procedures Exercises ...................................................................................................................................... 7-23 Special Procedures: Solutions..................................................................................................................................... 7-32 Error Processing: Contents................................................................................................................................................. 8-1 Error Processing: Unit Objectives ................................................................................................................................ 8-2 Overview Diagram 8....................................................................................................................................................... 8-3 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

................................................. 10-2 ............................................................................................................ 9-6 Evaluations: Summary ..............................Overview Diagram 9......................................................................................................................................................................................................................................... 9-5 LIS: Key Figures .................................................................................................................................................................................................. 9-7 Appendix ............................................ 9-4 Options Available for Evaluations ..................... 9-3 Evaluations: Business Scenario................................................................................................................................... 10-1 Example of a Kanban Card .........................................................................................................................................................................................................................

LO235 KANBAN

LO235
KANBAN
© SAP AG 1999 © P AG S

S

n n n n

R/3 System Release 4.6C September 2000 5004 1986

Copyright

Copyright 2001 SAP AG. All rights reserved. No part of this publication may be reproduced or transmitted in any form or for any purpose without the express permission of SAP AG. The information contained herein may be changed without prior notice. All rights reserved.

© SAP AG 2001

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Production Planning
Level 2
LO980 3 days Engineering Change Management LO235 KANBAN LO050 5 days Manufacturing Planning & Execution for Discrete & Repetitive LO205 3 days Basic Data for Discrete Manufacturing LO985 3 days LO206 3 days Basic Data Part 2 2 days

Level 3
LO210 5 days Production Planning LO215 5 days LO230 5 days

Production Orders LO225 3 days

Capacity Planning

LO720

2 days

Repetitive Manufacturing LO930 2 days Logistics Information System (LIS) Reporting

CAP Calculation of Standard Values 2 days LO275 Special Features of LIS in Production 2 days LO935 Logistics Info Planning

Classification LO955 3 days Batch Management

5 days LO991 LO990 3 days Variant Variant Configuration Part 1 Configuration Part 2

© SAP AG 1999

Prerequisites

Prerequisites
l LO050 Manufacturing Planning and Execution for Discrete and Repetitive

Recommended
l Recommended: LO020 Processes in Procurement

l For customers attending the course from the MM curriculum, R/3 experience in purchasing and inventory management is the prerequisite for this course. The course LO050 is not required in this case.
© SAP AG 1999

n

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.

organizers) responsible for production using KANBAN control.Target Group Target Group l Project team leaders and other employees l Project team members (consultants. ? Duration l 2 days ? © SAP AG 1999 .

Introduction: Contents l Course Goal l Course Objective(s) l Course Content l Course Overview Diagram l Main Business Scenario l Course Introduction © SAP AG 1999 (C) SAP AG LO235 1-1 .

Course Goal This course l Provides you with information. you will be able to: Use the individual replenishment strategies in KANBAN Describe contexts Make system settings in Customizing l l l l © SAP AG 1999 (C) SAP AG LO235 1-2 . for using the KANBAN process in Production Planning and Control At the conclusion of this course.

Course Objective(s) This course provides you with information about: l Master data in KANBAN l Replenishment strategies in KANBAN l Special processes in KANBAN l Error processing in KANBAN l Evaluations in KANBAN © SAP AG 1999 (C) SAP AG LO235 1-3 .

Course Content Introduction Unit 1 Unit 2 Unit 3 Unit 4 Unit 5 Introduction Overview KANBAN Master Data General Procedure Replenishment Strategies Appendix Unit 6 Unit 7 Unit 8 Unit 9 Kanban Calculation Special Procedures Error Processing Evaluations © SAP AG 1999 (C) SAP AG LO235 1-4 .

Overview Diagram 1 1 Introduction 2 2 6 6 Kanban Calculation KANBAN Overview 7 7 Special Procedures 3 3 Master Data 8 8 Error Processing 4 4 General Procedure 9 9 Evaluations 5 Replenishment Strategies 5 © SAP AG 1999 (C) SAP AG LO235 1-5 .

In your plant 1200 you produce PC assemblies.Main Business Scenario l l You are a manufacturing company. In order to keep the control effort to a minimum and to reduce stocks and lead times. © SAP AG 1999 (C) SAP AG LO235 1-6 . you plan to use the KANBAN process in the R/3 system for certain materials.

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##) (C) SAP AG LO235 1-7 . Some components for the assembly production are procured externally. Two production lines are for sub-assembly and one line is for final assembly.stock transfer Material storage location 0001 Stor. loc. The descriptions of the data in the training system. PL03 Stor. loc. PL06 Component production on repetitive manufacturing line T-L5## KANBAN external procurement KANBAN . using KANBAN.System Example PC Production Plant 1200 Sales orders PC final assembly on repetitive manufacturing production line T-L1## Finished goods warehouse 0002 SD Sold-to party Stor.inhouse production KANBAN . loc. are transferred from the material storage location using KANBAN. loc. PL01 Assembly on repetitive manufacturing line T-L3## Discrete production Stor. PL05 Vendor © SAP AG 1999 Plant 1200 (Dresden) n n Demonstration-Example Repetitive Manufacturing: In plant 1200 Personal Computers (PCs) and PC assemblies are produced. produced in-house and transferred from the material storage location. Components for the final assembly that are not produced on the assembly production lines.

0088 Board 4 Board T-TD## (R-1270C) Vendor 2 CD-ROM 5 CD-ROM T-TC## (R-1250C) Replenishment with stock transfer orders Replenishment with direct transfer posting from WM stor.loc.System Example: Production Lines 1 and WIP Production Production line T-L1## (Line 1) Supply area T-P1## (PVB_L1) Stor. loc.loc PL06 Person responsible L6 Plant 1000 Plant 1000 Casing 3 T-TB## (R-1260C) Stor. PL01 Person responsible L1 WIP production Supply area T-P6## (PVB_PC) stor. Replenishment using scheduling agreements Casing Modem PC T-F7## (R-1000) CD-ROM CD-ROM 2 T-B8## (R-1180C) Modem 1 T-B9## (R-1190C) 1 2 Replenishment using production orders 3 Replenishment using manual KANBAN 4 5 Legend: Description in training system (description in the IDES system) © SAP AG 1999 (C) SAP AG LO235 1-8 .loc.

loc. PL05 Person responsible L5 Storage location 0001 Aluminium heat sink Aluminium heat sink Motherboards Processor coolant unit 3 1 Processor coolant unit T-T8## (R-1310) Fan 5V T-B5## (R-1110)and T-B7## (R-1240) 3 Fan 5V T-T9## (R-1330) T-B6## (R-1111) BIOS Production line Supply area BIOS 2 T-T7## (R-1230) Production line Supply area Vendor 2 1 2 3 Replenishment with run schedule quantities (in-house prodn) Replenishment with purchase orders (external procurement) Replenishment with stock transfer reservations (stock transfer) Legend: Description in training system (description in the IDES system) © SAP AG 1999 (C) SAP AG LO235 1-9 .loc. PL03 Person responsible L3 T-L5## (Line 5) T-P5## (PVB_L5) Stor.System Example: Production Lines 3 and 5 T-L3## (Line 3) T-P3## (PVB_L3) Stor.

KANBAN Overview: Contents l l l l l KANBAN Procedure Material Requirements Planning versus KANBAN Advantages of KANBAN Business Management Environment required for KANBAN Advantages of an 'Electronic' KANBAN © SAP AG 1999 (C) SAP AG LO235 2-1 .

you will be able to: l l l l l Explain the KANBAN principle Compare MRP procedures with KANBAN procedures Explain the advantages of KANBAN Explain the business management environment required for KANBAN Explain the advantages of an 'electronic' KANBAN. © SAP AG 1999 (C) SAP AG LO235 2-2 .Kanban Overview: Unit Objectives At the conclusion of this unit.

Overview Diagram 2 1 1 Introduction 2 6 6 Kanban Calculation KANBAN Overview 3 3 7 7 Special Procedures Master Data 8 8 Error Processing 4 4 General Procedure 9 9 Evaluations 5 Replenishment Strategies 5 © SAP AG 1999 (C) SAP AG LO235 2-3 .

l You list the advantages of KANBAN and decide which materials you want to control using KANBAN. l Therefore you have to check which materials in your company fulfil the business conditions required for KANBAN. © SAP AG 1999 (C) SAP AG LO235 2-4 .Kanban Overview: Business Scenario l You are based in a production plant and you want to gain an overview of KANBAN procedures.

material flow is organized using containers. to a great extent. and to significantly reduce the manual tasks required of personnel. (C) SAP AG LO235 2-5 . 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). 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. Instead. A further advantage of KANBAN is that replenishment data is transmitted automatically. Each contains the quantity of material that work center personnel need for a certain period of time. It remains there. Thus. in small material buffers. The demand source can use material from other “buffer” containers until empty containers are filled by the supply source and returned. The supply source for the required material can be another place in the factory. material is provided in production exactly where it is required. material that is consumed is replenished immediately using KANBAN. material staging does not need to be planned. replenishment is initiated.KANBAN Demand source Supply source Full Full Fullll Material Empty Empty Kanban card © SAP AG 1999 n n n n In KANBAN. Basically. which are kept directly at the appropriate work centers in production. in KANBAN. The aim is for the production process to be controlled from production itself. an external supplier or a warehouse. As soon as a container is emptied at the demand source. ready for use.

the quantity of the material required and where the material is to be delivered.The KANBAN Card The card shows: l What is produced l How much is produced l Where it is produced l How it is produced l Where it is delivered l How it is transported l . This card describes which material is required. which are called "kanban" in Japanese. The name KANBAN originally stems from these cards. Forms are used to define the content and layout of the cards.. R/3 has a special transaction for scanning KANBAN barcodes. Material: Quantity: Manufacturer: 0000815 100 pieces 007 Demand source: 088 Location: Shelf A014 Stack 3 Compartment 4 Container: Wire pallet © SAP AG 1999 n n n n The kanban signal for delivery of a material can be triggered by a demand source sending a card to a supply source. 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. The form PSFC_KANBAN.. It is also common practice to refer to a container as a kanban. (C) SAP AG LO235 2-6 . is shipped with the standard system. containing a barcode. You can print kanban cards from the R/3 system. so additional driver software or interfaces are not necessary.

This often leads to the use of increased safety stocks to achieve constant service levels. When a container is empty. the demand source calls off the required material from the supply source using. The material is pushed through production on the basis of the times calc ulated (push principle ). for example. before being available for the next manufacturing level. 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). a card. the system calculates lot sizes by referring to the lot-sizing procedure. These queue times are generally dealt with by increasing lead times or using float after production (order buffer). This procedure can result in queue times before the start of production.Push Principle / Pull Principle Comparison Conventional Production Control Purchasing Purchasing Requirements transfer Purchase order Control Production planning and control and Control and information Control and information Vendor Vendor Pre-assembly Pre-assembly Final assembly Final assembly KANBAN Production Control Control Full Control Full Control Vendor Vendor Pre-assembly Pre-assembly Kanban empty Final assembly Final assembly Kanban empty © SAP AG 1999 n n In traditional production and material requirements planning. (C) SAP AG LO235 2-7 . production quantities and dates are calculated at product level. instead of being pushed through production by higher-level planning. In this procedure. With KANBAN. materials are called off from the supply source by production at the manufacturing level where they are needed (pull principle ). The component staging dates determined by MRP are the basis for detailed scheduling of production or. Lots are generally completed at each manufacturing level. depending on current customer or planned independent requirements. The required quantities and materials staging dates are determined in the BOM explosion. for purchased parts. that is. the KANBAN signal is created.

Short to long-term requirements forecast .'Centralized' planning and control . 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)."Push principle" © SAP AG 1999 KANBAN . l Manual posting effort is kept to a minimum.Production quantity = current requirements .Short-term replenishment control .MRP and KANBAN: A Comparison MRP .Delivery direct to demand source .Lot-size calculation / optimization . to a large extent.BOM explosion . l The material is available directly on the shop floor. (C) SAP AG LO235 2-8 .Event-driven . l The production quantities correspond to actual requirements.Demand-based ."Pull principle" n Advantages of KANBAN: l KANBAN is a simple form of production control: the production controls replenishment itself.Simple method of organization .Decentralized stock and procurement responsibility . This saves the organizational effort required to stage the material.Date oriented .Centralized stock responsibility .Planning instrument .

supply areas Aim: Self-control of the production process. or production orders. but production call! Technique Control Background Benefit Backflush Controlling Object © SAP AG 1999 (C) SAP AG LO235 2-9 . KANBAN (container and card) in connection with planned or production order NO production planning. reduction of lead times By setting the kanban to FULL 1) Using a product cost collector in conjunction with: manual KANBAN. storage location). 'Lean manufacturing': simplification of the planning process. reduction of the administrative effort in production. REM. requirements-based material request at the time of actual demand Self-controlling control-cycles. Process optimization and shortening of the process chain. Reduction of stocks. automatic replenishment. reduction of the manual posting effort. external vendor.KANBAN Philosophy: Tabular Summary Type of production Principle Procedure KANBAN 'Pull-production': Consumption controls replenishment (on direct request from demand source) Material flow using containers: when the demand source empties a container the replenishment signal is triggered (internal production. 2) Using production-order specific costing. more employee-responsibility. no need to plan the staging. Replenishment data constantly available in the control cycle.

To use KANBAN effectively. as this would lead to unnecessary materials being procured and stored. a large number of containers are necessary to ensure material availability. Setup times should be short and availability of capacity and components ensured. but meeting the prerequisites necessary for KANBAN.Business Management Environment l The supply source must deliver the material quickly n n short set-up times availability of capacity and components l l l Material requirements should be constant Material should not be produced in advance (production quantity = kanban quantity) Responsibility is shifted from central planning to the production floor © SAP AG 1999 n n The problem some organizations have with implementing KANBAN is not the production method. a number of conditions must be met: l The supply source must be able to deliver the material quickly and in small lots. If a material is sometimes used in large quantities and then in smaller quantities at other times. l Parts controlled using KANBAN should be consumed relatively uniformly over the replenishment time. (C) SAP AG LO235 2-10 . Sometimes the necessary conditions can only be created for certain areas of production. l The material should not be produced in advance. There will then be relatively high levels of stock during periods when the material is used less.

the goods issue backflush can be posted for a follow-up material. (C) SAP AG LO235 2-11 .Advantages of an 'Electronic' KANBAN l Replenishment elements integrated in the system l Monitoring of kanbans in circulation and additional evaluations l Integration of printing and transmission functions l Forecast from MRP or long-term planning l Integrated cost accounting l Integrated capacity requirements planning l Integrated engineering change management l Integrated control of discontinued parts (material discontinuation) © SAP AG 1999 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.

KANBAN Overview: Summary l KANBAN Procedure l Material Requirements Planning versus KANBAN l Advantages of KANBAN l Business Management Environment required for KANBAN l Advantages of an 'Electronic' KANBAN © SAP AG 1999 (C) SAP AG LO235 2-12 .

KANBAN Master Data: Contents l l l Supply area Control cycle Organization of production © SAP AG 1999 (C) SAP AG LO235 3-1 .

you will be able to: l Create a supply area in the R/3 System l Create a control cycle in the R/3 System l And you will know how to organize material flow using supply areas and control cycles © SAP AG 1999 (C) SAP AG LO235 3-2 .KANBAN Master Data: Topic Objectives At the conclusion of this unit.

Overview Diagram 3 1 1 Introduction 6 6 Kanban Calculation 2 2 KANBAN Overview 7 7 Special Procedures 3 4 4 Master Data General Procedure 8 8 Error Processing 9 9 Evaluations 5 Replenishment Strategies 5 © SAP AG 1999 (C) SAP AG LO235 3-3 .

you want to control material flow using KANBAN. l You want to use KANBAN for in-house production. external procurement and for stock transfer. l For several of the PC components.KANBAN Master Data: Business Scenario l In your plant 1200 in Dresden. © SAP AG 1999 (C) SAP AG LO235 3-4 . you have to maintain the necessary master data for KANBAN in the R/3 System. l Now. you produce the assemblies of a Personal Computer.

the kanbans are transported to the supply area. The supply areas established for the shop floor are defined in the R/3 system in the KANBAN menu. Therefore. but is not an inventory management object. From here. The unloading point defines where the supplier has to deliver the material (for example. this defines who is responsible at the demand source for material processing and for monitoring stocks at the supply area. When creating a control cycle. Another significant organizational prerequisite is that you create a responsible person per supply area. The unloading point is printed on the kanban card or even transferred to the summarized JIT call. a person responsible is maintained in the control cycle. that is. If a person responsible is assigned to a supply area. material is staged directly in production in specific areas. for material provision and. In the definition. gate 1). for posting goods receipts) therefore takes place at the storage location to which the supply area is assigned. this defines who is responsible at the supply source for replenishment. for example. known as supply areas . if necessary. A supply area can be used by one or more work centers.Supply Area Supply area 3 E D C Supply area 1 B Supply area 2 Production Assign storage location Assign responsible person Unloading point for ext. (C) SAP AG LO235 3-5 . With KANBAN. Unloading point: Often in external procurement. the supply area is assigned the following objects: The supply area is a data object used to organize material flow for KANBAN. this address is transferred to the delivery address of the control cycle. The supply areas act as a buffer for the necessary materials (for example on shelves or in marked out areas on the floor). storage locations are assigned to the supply areas. The responsible person is assigned as an MRP controller to the supply area in Customizing for MRP. for delivery to the demand source. Delivery address: You can maintain an address in the supply area. If in in-house production. the supplier does not deliver the material directly to the supply area in production but to a certain unloading point. procurement l Where should which material be staged? l Which supply areas are necessary? © SAP AG 1999 n n n n n n Structure and organization of production are important when introducing KANBAN. Inventory management (which is relevant.

The control cycle defines: l The demand source (supply area) l The replenishment strategy (for example. You can use these new fields for the following reasons.Kanban Control Cycle Demand source l Supply source l Supply area Delivery l l l Person responsible Vendor Issuing plant Warehouse Control cycle Requirement l l The control cycle contains the data required for replenishing a material at a supply area. You lock a kanban. replenishment via purchase order for external procurement or via run schedule quantities for in-house production or via stock transfer reservations for stock transfer) l The supply source (supplier (vendor) or issuing plant for external procurement. l Parameters for the automatic kanban calculation l You can also delete or lock kanbans in the control cycle. the responsible person for in-house production.. The pallet position can also be printed on the kanban. the plant address is automatically maintained). supply source.) © SAP AG 1999 n n To control the relationship between supply and demand source. the storage location for stock transfer) l The number of containers (kanbans) circulating between the demand and the supply source l The quantity per container l The delivery address (when accessing the function.. for example. maintain them in the control cycle and save them on the database. You can print this data on a kanban (card). quantity per kanban. (Number of kanbans. With User Exit MPKR0001. for example. if it is not to be used for a certain length of time as consumption within the control cycle has fallen. l Printing parameters for printing the kanban l The pallet position: More precise specification of the material's position (for example. you can define your own data fields for the kanban control cycle. Here. for example: l For printing kanbans (cards) l For the user exits at status change l For the kanban calculation (see enhancement MPKB0001 and MPKC0001) LO235 3-6 (C) SAP AG . type of replenishement. a specific shelf section) in the supply area. A new subscreen is created in the control cycle for these newly defined fields. you can also enter the information required for the supply area. you define what is known as a control cycle .

(C) SAP AG LO235 3-7 .Ÿ You can find more information in enhancement documentation MPKR0001.

the supply source is a delivering storage location. manual KANBAN (you can print cards. a delivering plant is entered instead of a vendor. the person responsible for production is given as the supply source. If deliveries refer to a specific contract. The replenishment strategies define which methods are used to produce or procure the container quantity. With replenishment using container control/MRP. Within the area of in-house production. In external procurement the supply source is a vendor. this is also entered in the supply source data. In external procurement. stock transport orders. With plant-to-plant relationships. Within the area of stock transfer. that is.Supply Sources in the KANBAN Procedure KANBAN In-house production KANBAN Production External procurement KANBAN Control cycle Demand source © SAP AG 1999 Stock transfer Supply source n n n n KANBAN replenishment is controlled by various different replenishment strategies. you can organize replenishment using planned orders (repetitive manufacturing). but not create replenishment elements) or using container control/MRP (mix of KANBAN and MRP). replenishment using direct transfer posting or with replenishment using container control/MRP. Setting the container status to FULL and EMPTY then simply controls the material flow. (C) SAP AG LO235 3-8 . which replenishment element the system creates. replenishment elements are not created in KANBAN but in MRP. stock transport scheduling agreements. With stock transfer. delivery schedules. With in-house production. you can organize replenishment using purchase orders. supply source or using container control/MRP. This individual is responsible for the area of production which delivers materials to other production areas. production orders (discrete manufacturing). you can work with replenishment using stock transfer reservations.

Using Control Cycles to Organize Replenishment for Production Control cycle D 75 75 10 H 10 SA_Preprod. 1 A 75 B 10 E 25 75 10 25 SA_Assembly 1 SA_Assembly 2 G 75 E 10 F 25 75 10 25 Central warehouse Vendor 1 SA_Preprod. 2 E 75 C 10 75 10 Work centers Materials © SAP AG 1999 Container with 10 pieces Vendor 2 (C) SAP AG LO235 3-9 .

Loc. PL03 Vendor 2 n n n n n n n n A storage location is assigned to every supply area.Organization of Production D 75 H 10 75 Responsible person V2 10 SA_Preprod. 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. the responsible person is responsible for organizing material replenishment at the supply area. 1 A 75 B 10 E 25 75 10 25 SA_Assembly 1 Central warehouse Responsible person V1 SA_Assembly 2 G 75 E 10 F 25 75 10 25 Vendor 1 SA_Preprod. (C) SAP AG LO235 3-10 . When material is withdrawn from a supply area. The responsible person can be a group representative. a foreman. the corresponding goods receipt is posted to the assigned storage location. 2 E 75 C 10 75 10 Stor. The responsible person is defined in Customizing as an MRP controller. All the goods movements in Inventory Management from or to a supply area are posted using this storage location. From the demand source view. the corresponding goods issue is posted from the assigned storage location. When material is staged at a supply area. a team leader or an MRP controller. PL05 © SAP AG 1999 Stor. Loc.

KANBAN Master Data: Summary l Supply area l Control cycle l Organization of production © SAP AG 1999 (C) SAP AG LO235 3-11 .

you have to create a supply area at the production line in which the required materials are staged. 1-1-2 What is the purpose of the supply area? __________________________________________________________ (C) SAP AG LO235 3-12 . You also have to create two control cycles for organizing the replenishment of two materials in the supply area.Master Data Exercises Topic: Master Data At the conclusion of these exercises. cancel this function as you do not need a specific address for this supply area. 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. First. 1-1 In plant 1200. If the “Address maintenance” appears. create the supply area T-P5##. 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.

To create this control cycle. Enter replenishment storage location 0001 (material warehouse) in the Storage location field.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##. (C) SAP AG LO235 3-13 . use the control cycle you created in the previous exercise as a reference. Replenishment is to be executed using stock transfer from storage location 0001 with replenishment strategy 0002 (direct transfer posting). 1-3-1 Menu path: Logistics → Production → KANBAN Control cycle → Create Material: T-T9## Plant: 1200 Supply area: T-P5## Choose classic KANBAN. Choose Enter. create another control cycle with 2 containers each containing 50 pieces for the PC component T-T9## (fan 5V) in supply area T-P5##. Number of kanbans: 2 Quantity per kanban: 50 Choose Stock transfer and replenishment strategy 0001 (stock transfer with reservation). 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. Save the control cycle. Enter. 1-2-2 What is the purpose of the control cycle? __________________________________________________________ 1-3 Now.

Enter replenishment storage location 0001 (material warehouse) in the Storage location field. Choose New strategy. (C) SAP AG LO235 3-14 . Choose Stock transfer and replenishment strategy 0002 (direct transfer posting). Choose Enter. Save the control cycle.Copy from: Material: T-T8## Plant: 1200 Supply area: T-P5## Enter.

Master Data Solutions Topic: Master Data 1-1 1-1-1 1-1-2 With KANBAN. for example) – number of kanbans circulating between the demand source and the supply source – quantity per kanban 1-3 1-3-1 (C) SAP AG LO235 3-15 . The supply area is a data object used to organize material flow for KANBAN. replenishment using purchase orders for external procurement) – supply source (vendor. Therefore storage location have to be assigned to the supply areas in Customizing for KANBAN. 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). material is staged directly in production in specific areas. known as supply areas. for example: – demand source (supply area) – replenishment strategy (for example. 1-2 1-2-1 The control cycle defines the relationship between the demand source and the supply source. but is not an inventory management object. The control cycle defines the following.

the manual kanban signal.General KANBAN Procedure l l l Status sequence Setting kanban to FULL and EMPTY Changing the status using the kanban board. and by scanning a bar code Printing kanban cards Focusing on physical stocks l l © SAP AG 1999 (C) SAP AG LO235 4-1 .

General KANBAN Procedure : Unit Objectives

At the conclusion of this unit, you will be able to:
l Change the status in the kanban board, and

with the manual kanban signal
l Print kanban cards

© SAP AG 1999

(C) SAP AG

LO235

4-2

Overview Diagram 4

1 1

Introduction

6 6

Kanban Calculation

2 2

KANBAN Overview

7 7

Special Procedures

3 3

Master Data

8 8

Error Processing

4
General Procedure
5 Replenishment Strategies 5 9 9

Evaluations

© SAP AG 1999

(C) SAP AG

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General KANBAN Procedure: Business Scenario

l Before you use the individual replenishment

strategies in KANBAN, you need an overview of the general KANBAN procedure in the R/3 system.
l You also have to print kanban cards for the

KANBAN procedure.

© SAP AG 1999

(C) SAP AG

LO235

4-4

KANBAN Status Sequence

Empty Empty Replenishment is triggered automatically • Order • Purch. order ...

Goods receipt is posted automatically

Full

The KANBAN process is controlled by setting various statuses for the kanbans.
© SAP AG 1999

n n

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.

(C) SAP AG

LO235

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If the status is set to EMPTY. only the two statuses. EMPTY and FULL are used.. You can set the status to EMPTY by scanning a bar code on the KANBAN card. instructing the supply source to deliver. Usually. Supply source Ext. (C) SAP AG LO235 4-6 .. Purch order . you scan the bar code using a standard bar code scanner in the transaction Kanban signal -> Bar code. In KANBAN. To do this. You can also set the status to EMTPY using transaction manual kanban signal or in the kanban board.Setting the Kanban to EMPTY Production process process Full Empty Supply area Status to EMPTY Replenishment Replenishment is triggered triggered automatically • Order • Purch . the system creates a replenishment element.procurement Stock transfer In-house prodn © SAP AG 1999 n n n n The progress of production in KANBAN is controlled by setting the kanban to the appropriate status.. order . Emptying a kanban does not lead to a goods issue posting.. goods issues are typically backflushed.

Setting Kanban to FULL Production process process Full Supply area Full Full Goods receipt is posted automatically automatically Status to FULL Full Kanban Supply source source Ext. you scan the bar code using a standard bar code scanner in the transaction Kanban signal -> Bar code. the system posts the goods receipt automatically for the material with reference to the procurement element. (C) SAP AG LO235 4-7 . You can also set the status to FULL using transaction manual kanban signal or in the kanban board. You can set the status to FULL by scanning a bar code on the KANBAN card. To do this. procurement Stock transfer In-house prodn © SAP AG 1999 n n When you set the status to FULL.

.Posting Goods Receipt Manually Production process process Full Supply area Full Full Post goods receipt to • Purchase order • Order. procurement Stock transfer In-house prodn © SAP AG 1999 n 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).. (C) SAP AG LO235 4-8 . etc. Kanban is automatically set to FULL set FULL Full kanban Supply source source Ext.

the system returns to the tab page Processed kanbans. You can also enter status using a Plant Data Collection System (PDC System).230 1 0 p . The status can also be set indirectly using the goods receipt or backflush transaction. whose status is to be changed. 1172). which also allows a synchronous operation. versorg. You also have the option of collectively entering kanbans. You can also change the status using the transaction manual kanban signal. the system will not change the status. The PDC interface supports the kanban signal. 2 c Empty Full Produkt. Linie 4 Bs i o R . so that you can check your entries. For the kanban signal.230 1 0 p . Signal lock in Customizing for KANBAN: You use the signal lock to determine a period (in minutes) in which the kanban signal is blocked. 2 c WT A I Empty barcode entry manual entry l With a PDC system l Indirectly using a goods receipt or a backflushing transaction © SAP AG 1999 n n n n n You can set the kanban status in the graphic kanban board. As soon as you choose Save. You can also set the kanban status by scanning a barcode on the kanban card. The operation takes place asynchronously in batch. and event-driven KANBAN there is a BAPI available (BUS 1075. while the following processing is carried out automatically. versorg . quantity signal and event-driven KANBAN. quantity signal.Setting the Kanban Status You can set/change a kanban status: Supplyarea Container l In the kanban board l With the kanban signal n n Material Container qty Produkt. you scan the bar code using a standard bar code scanner in the transaction Kanban signal -> Bar code. 2 c Empty Empty Full Motherboard R .Linie3 Bios R . and then processing them (tab page Preliminary entry in the barcode entry). (C) SAP AG LO235 4-9 . the kanbans entered are processed. This leads to significantly shorter queue times between the entries. If you re-trigger the kanban signal within this period. To do this. After processing. You can access any errors in a log.240 1 0 p . This guarantees that a kanban cannot be set to FULL and then inadvertently set to EMPTY again by a second signal.

either for one plant or per plant (various selection criteria are available). R-1240 Motherboard 20 pc. Here. the supply source can see which containers are still full and which must be replenished. For each control cycle. From here. Supply area line 4 R-1230 Bios 20 pc. all the kanbans that are in circulation are displayed with their current status. You can choose between various displays: In the demand source view. you can make basic settings for the kanban board. so this function is not allowed in the supply source view. the demand source can set kanbans to EMPTY and FULL without the use of bar codes. n (C) SAP AG LO235 4-10 . the display of kanbans in the kanban board and the content of the quick info. It is not the responsibility of the supply source to set kanbans to EMPTY and FULL. WAIT Empty Empty You can set me to full Various views and selection options allow optimal monitoring and evaluation © SAP AG 1999 n n The kanban board displays an overview of container rotation and also allows you to trigger the kanban signal (for example. You can define the display of control cycles in the kanban board. The plant overview gives you an overview of work progress in each control cycle. The supply source view gives the supply source an overview of its worklist (various selection criteria are available).Kanban Board Status change Status to empty Supply area Material Status to full Container Container quantity You can set me to empty Empty Empty Full Empty Empty Full Supply area line 3 R-1230 Bios 20 pc. In Customizing for KANBAN. you can display the control cycles by supply area (various selection criteria are available). setting to FULL or EMPTY).

l The kanban card is passed from the demand source to the supply source without a container but returns to the demand source with one. Information is passed on to the supply source by means of the kanban board. l The card remains at the demand source and is attached to the full kanban or is stored without a kanban at a predefined location. For further information on printing barcodes with SAPScript. In the case of a print error you can repeat the print of certain kanbans (for example. Here. If you want to use another function module for printing kanban cards instead of the standard function module PK_KANBANCARD_PRINT. The same kanban is used over and over again. LO235 4-11 (C) SAP AG . then the kanban print is set up and carried out with these forms. For printing barcodes from the kanban card. alongside the kanban form.Print Kanban Cards Once Only (Reusing Cards) l Print from master data n Print directly from control cycle maintenance l Collective kanban print n n Print kanbans for all control cycles Reprinting cards. With the collective kanban print. that should have been printed on printer LP01 during a certain time frame Material: Quantity: Manufacturer: Demand source: Location: 0000815 100 pieces 007 088 Shelf A014 Compartmt 4 © SAP AG 1999 n n n n n n 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. If other forms are printed in an action. you can print kanban cards across the control cycle. The printer is entered directly in the corresponding control cycle (field Output device). you have three options: l The kanban card circulates between the supply source and the demand source with the container. The form for the kanban is maintained in the replenishment strategy of the control cycle in Customizing for KANBAN. then enter the name of your function module in Customizing for KANBAN in the work step Replenishment strategies. Here. the card has to be retrieved at the demand source. all kanbans that should have printed on a certain printer during a certain time period). see OSS note 5196. There is no information on the circulating kanbans and the information on empty kanbans is kept at the demand source. you have to organize the transport of the cards to the supply source. When a kanban is delivered. and it must be selected as a barcode printer. the printer must be able to process the general character set for barcodes.

for inhouse production with planned orders or manual kanbans). (C) SAP AG LO235 4-12 . using message control © SAP AG 1999 n n n n n Renewed kanban print for each control cycle run: The card is thrown away at the end of each cycle. 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. or the number of a production order. The kanban is printed with or instead of the GR papers and is attached to the kanban. The card can be used as an extra written request for delivery (for example. For production orders. then do not use this print control technique. The kanban is printed together with the purchase order and must be defined as a part of the order form. The kanban is printed using the GR print control. You can also print changeable data on the kanban card. 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. time. 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. form from replenishment strategy). order number) on the card 1) Reprinting cards at replenishment n n n Using printer and form from the kanban data When using production orders. This means that the card does not have to be transported to the supply source.Print Kanban Cards Repeatedly Not Reusing Cards) Event-driven on status change . such as date and time. Kanban printed with the purchase order to which it is attached.The card does not have to be transported to the supply source . print together with the other order papers With purchase orders. 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. 2 = Card printed when goods receipt is posted: it makes sense to use this option for external procurement with central goods receipt. you can transfer delivery address specific to control cycle and other kanban data to the purchase order form 2) Reprinting cards on each goods receipt n n Using printer and form from the kanban data Together with goods receipt documentation. The kanban is printed along with the purchase order print. The order form controls whether or not a kanban is printed and not the entries in the control cycle.Current data (date. the card is printed at the supply source.

You can then set this status to EMPTY. These statuses can be clearly seen in the kanban board with color codes and inform you exactly how far production has progressed. ERROR is set by the system and indicates that the status selected cannot be set successfully. l 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. the kanban is given the status WAIT until the supply source triggers replenishment. They can be set manually.Status Sequence . IN USE indicates that the demand source is currently withdrawing material. In addition. the status WAIT is set in the following cases: l When a new kanban is included in the control cycle. Instead. 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. l If a kanban has been locked and is then set to EMPTY. there will be an additional status alongside statuses EMPTY and FULL. IN PROCESS indicates that the requested material is currently being produced by the supply source. using bar code entry or more often using the kanban board itself. IN PROCESS. IN TRANSIT indicates that the material is currently on its way to the demand source. The statuses WAIT. IN TRANSIT and IN USE are only of use when you work with the kanban board.All Possibilities Wait (initial) Empty Empty In process In transit Full ERROR In use © SAP AG 1999 n n n n n n If there is additional information for certain processes. it is given the status WAIT. (C) SAP AG LO235 4-13 .

© SAP AG 1999 n n n Emptying a kanban does not lead to a goods issue posting. (C) SAP AG LO235 4-14 .Logical Stock / Physical Stock (1) 3 containers each containing 10 pieces. Kanban materials are backflushed (goods issue for components). 21 Container empty 21 Backflush 3 pc. if the relevant material has been consumed. 30 Backflush 2 pc. This operation is based only on the physical stock and is completely independent of any stock posting. The kanban is set to empty. l Goods issues are backflushed. 23 Backflush 2 pc. several small orders Event Container Warehouse stock ------------------------------------------------------------------------------------Initial situation 30 Order for 2 pc. 23 Order for 2 pc. 28 Order for 5 pc. The backflush has no influence on the kanban status. when the order requested is confirmed. 21 Order for 3 pc. 18 l Emptying a kanban does not lead to a goods issue posting. 28 Backflush 5 pc.

30 Container empty 30 Container empty 30 Container full 40 Container empty 40 Container full 50 Container empty 50 Container full 60 Container empty 60 Backflush 50 pc. (C) SAP AG LO235 4-15 . one large order Event Container Warehouse stock ------------------------------------------------------------------------------------Initial situation 30 Order for 50 pc. 10 Container full 20 Container full 30 © SAP AG 1999 n Considerable variances can occur between physical stock and logical stock as goods movements are not posted simultaneously.Logical Stock / Physical Stock (2) 3 containers each containing 10 pieces.

Replenishment frequency is based on actual consumption. There is never more material in circulation than the quantity defined by the number of kanbans in the control cycle. (C) SAP AG LO235 4-16 . If material consumption decreases. the flow of kanbans slows down. The more material that is required.Adjusting to Variable Requirements Conventional Production: Lot-size Calculation 200 200 320 150 200 200 KANBAN Production: Change in Frequency 130 130 130 130 130 130 130 130 130 130 130 130 © SAP AG 1999 n n n n In conventional production control the quantities to be produced are determined using the lot-size calculation. 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. 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. the faster the kanbans flow between supply and demand source. If a material is not required for a certain period of time. With KANBAN.

General KANBAN Procedure: Summary l Status sequence l Setting kanban to FULL and EMPTY l Changing the status using the kanban board. the manual kanban signal and by scanning a bar code l Printing kanban cards l Focusing on physical stocks © SAP AG 1999 (C) SAP AG LO235 4-17 .

1-1-1 Menu path: Logistics → Production → KANBAN Control Cycle → Change Material: T-T7## Plant: 1200 Supply area: T-P3## Enter.General KANBAN Procedure Exercises Unit: General KANBAN Procedure Topic: At the conclusion of these exercises. supply area) is already maintained in the R/3 System. The master data (control cycle. 1-1-2 Which supply source and which replenishment strategy does this material refer to? (C) SAP AG LO235 4-18 . In the field Print Kanban no entry is made for the single kanban print. Now. The procurement takes place with purchase order handling from an external vendor. The kanban cards (with a barcode) are now printed by the printer specified in the control cycle. and to print a new kanban card for each purchase order). • change the status in the kanban board. 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. These cards should always be used (it is also possible to define the kanban cards as a part of the purchase order form. and kanbans have to be set to FULL and EMPTY to control the flow of material. kanban cards have to be printed. Please see the appendix for a sample printout. you will be able to: • print kanban cards. 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. and with the manual kanban signal The PC component T-T7## (BIOS) is staged with KANBAN on production line T-L3##.

you should not carry this out here. If required. However. Enter. apart from PC component TT7##? ______________________________________________________ 1-2-4 Check which number (kanban number or kanban ID) is displayed in the graphic for each kanban. and go back to the kanban board. the kanban number is selected. Select the row for the material T-T7## and choose Goto → Stock/requirements list. To do this choose: Settings → Display kanbans In the field Kanban text. This is displayed. Display the stock/requirements list. 1-2-1 Menu path: Logistics → Production → KANBAN Control → Kanban board → Demand Source View Plant: 1200 Choose Supply area and select T-P3##. you could convert the text to ‘Kanban ID’ and save it as a userspecific setting.____________________________________________________ 1-1-3 Which delivery address is maintained for this control cycle? To find out. ______________________________________________________ 1-2 Now go to the demand source view of the kanban board for supply area T-P3##. set one container for material T-T7## (BIOS) to EMPTY. 1-3-1 Now leave the control cycle display. Choose the menu path Kanban board→ Save settings. 1-3 In the kanban board. choose the Delivery address icon. both before and after the kanban is set to EMPTY. (C) SAP AG LO235 4-19 . to save your userspecific entries. 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.

and the color changes to red. 1-3-6 Why is the available quantity at storage location PL03 not reduced on setting the kanban to EMPTY. In this way the kanban is set to EMPTY. Now double click the red kanban. ______________________________________________________ (C) SAP AG LO235 4-20 . 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 Goto → Stock/requirements list. Select a kanban for material T-T7## and choose Set kanban status to EMPTY. In the following dialog box you recognize the number of the replenishment element.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.

1-4-2 Select the row for the material T-T7## and choose Goto → Stock/requirements list. set the empty container for PC component T-T7## (BIOS) to FULL. 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. 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. set another container to EMPTY for material T-T7##. to see the storage location receipts. in the kanban board. Choose Save . and the color changes to green. choose a container with status WAIT. (C) SAP AG LO235 4-21 . display the stock/requirements list for matieral T-T7##. After the kanban has been set to FULL.1-4 In the kanban board. you will see the purchase order number. In this way the kanban is set to FULL. using the manual kanban signal. 1-4-1 Select the empty kanban for material T-T7## and choose Set kanban status to FULL. If you scroll to the right in the table Processed kanbans. 1-5-1 Menu path: Logistics → Production → KANBAN Control → Kanban signal → Manual entry Material: T-T7## Plant: 1200 Supply area: T-P3## Using F4-Help in the field Kanban number.

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. Set the indicator OK. if you have deviated from the target quantities. Purchase order: PO number above Choose Enter. 1-6-2 Now go back to the kanban board for supply area T-P3##. Choose Save and confirm the following dialog box with Enter. actual quantities can be entered.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. (C) SAP AG LO235 4-22 . Even with the manual kanban signal.

1-3-5 1-3-6 Because backflushing the higer-level assembly performs the goods issue in KANBAN. 1-2 1-2-1 1-2-2 5 kanbans circulate between the demand source and the supply source. 9 St. 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. Motherboard Assembly. 1-3-3 1-3-4 On setting to EMPTY.General KANB AN 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. a purchase order is created. setting to EMPTY does not carry out this inventory movement.Petersburger Street. Dresden. 1-4-4 On setting the kanban to FULL. the goods receipt for the purchase order is posted. 1-2-3 The PC assembly T-B7## (processor coolant unit) is also staged in supply area T-P3##. 1-5 1-5-1 (C) SAP AG LO235 4-23 . 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.

the kanban belonging to the purchase order is set to status FULL.1-6 1-6-1 1-6-2 After posting the goods receipt for the purchase order. (C) SAP AG LO235 4-24 .

Replenishment Strategies: Contents l l Replenishment Strategies for KANBAN without MRP Replenishment Strategies for KANBAN with MRP © SAP AG 1999 (C) SAP AG LO235 5-1 .

you will be able to: l Make the necessary settings for KANBAN replenishment strategies without MRP in the R/3 System Make the necessary settings for KANBAN replenishment strategies with MRP in the R/3 System Explain the special features of the various replenishment strategies l l © SAP AG 1999 (C) SAP AG LO235 5-2 .Replenishment Strategies: Unit Objectives At the conclusion of this unit.

Overview Diagram 5 1 1 Introduction 6 6 Kanban Calculation 2 2 KANBAN Overview 7 7 Special Procedures 3 3 Master Data 8 8 Error Processing 4 4 General Procedure 9 9 Evaluations 5 Replenishment Strategies © SAP AG 1999 (C) SAP AG LO235 5-3 .

© SAP AG 1999 (C) SAP AG LO235 5-4 . l You must also maintain the necessary master data in the R/3 System for the various replenishment strategies. l Therefore you want to gain an overview of the various replenishment strategies supported by the R/3 system. external procurement and stock transfer.Replenishment Strategies: Business Scenario l In your plant 1200 you are planning to use the R/3 System's KANBAN function for in-house production.

printing the cards triggers replenishment) Components of KANBAN parts can be planned any way you like l l l l © SAP AG 1999 (C) SAP AG LO235 5-5 .KANBAN Without / With MRP Without MRP l With MRP l MRP creates no receipt elements (forecast via long-term planning) Replenishment elements (deliveryrelevant) are created by KANBAN per container Components of kanban parts can only be procured using consumption-based planning or with KANBAN MRP creates receipt elements (not delivery-relevant) as a forecast Replenishment elements (deliveryrelevant) are created by KANBAN per container (in container-control.

you will be able to: l make the necessary settings for KANBAN replenishment strategies without MRP in the R/3 © SAP AG 1999 (C) SAP AG LO235 5-6 .KANBAN without MRP: Unit Objectives At the conclusion of this topic.

it is possible to plan the component requirements using long-term planning. © SAP AG 1999 n n n n n If you do not want the material to be included in the planning run. That is. if a material planned in this way has lower-level components. you can also create simulative dependent requirements for KANBAN materials which provides you with the information you require to negotiate with your vendors. B are not controlled with KANBAN Material C is controlled by KANBAN without MRP l MRP does not create receipt elements (forecast only with long-term planning) for materials that are processed with KANBAN without MRP (MRP will terminate for these materials). procurement elements in this storage location do not create dependent requirements for the components of the material controlled by KANBAN procedures. (C) SAP AG LO235 5-7 . and so on) for the required quantity (1:1 reference between a kanban and a replenishment element). production order. The system also posts the goods receipt to this element when the material is delivered (manual GR recognizes relevant kanban). In long-term planning. At the storage location excluded from the planning run. the BOM is not exploded further.Overview: KANBAN without MRP Planned independent requirements /sales order Receipt elements created direct from KANBAN Today Time A B D Planned order from MRP Dependent rqmt C KANBAN order E Dependent rqmt External procurement Week 1 Reqmts Week 3 Materials D and E can only be procured with consumption-based planning or with KANBAN (but not with MRP) A C Materials A. Therefore. The material is replenished using this element and it is also backflushed with reference to this element. purchase order. When the demand source requests a kanban from the supply source. you have to exclude the material from the planning run in the storage location assigned to the supply area of the supply source. However. that is. you do not want any additional replenishment elements (planned orders or purchase requisitions) to be created. these components can only be procured using KANBAN or consumption-based planning procedures. l Replenishment elements (delivery-relevant) are created by KANBAN per container (direct reference from kanban to receipt element). the system creates a replenishment element (run schedule quantity.

Mid.to long-term requirements forecast with BOM explosion.Requirements Forecast using Long-Term Planning Sales and operations planning Simulative MRP Long-term planning Capacity planning Purchasing information system Comparison Demand management Demand planning MRP / MPS Operative planning Production control Capacity planning Cost center center planning planning © SAP AG 1999 Controlling n n n Simulative planning without having an effect on the current requirements planning. Explosion and requirements forecast also for consumption-based or KANBAN materials. (C) SAP AG LO235 5-8 .

Replenishment Strategies: KANBAN without MRP l In-house production n n n Processing with Cards (manual KANBAN) Planned order (run schedule quantity) repetitive manufacturing Production order discrete manufacturing l External procurement n n n n n Purchase order Scheduling agreement schedule line Stock transfer order Schedule lines for stock transfer scheduling agreement Source list l Stock transfer n n © SAP AG 1999 n Stock transfer with reservation Direct transfer posting Stock transfer from WM (C) SAP AG LO235 5-9 .

but only per storage location (using the MRP indicator in the MRP view). A replenishment element is only created when a container is set to EMPTY. For mass maintenance of storage locations. 1 MRP indicator = 'blank' Stor. 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. loc. The indicator has no influence on existing materials. replenishment with container control (mixture between KANBAN and MRP). loc. at the storage location at which you wish to use KANBAN. by using transaction Enter storage locations in the menu of the material master. you can maintain a MRP indicator per storage location. PL03 Replenishment using KANBAN with MRP Replenishment using KANBAN without MRP © SAP AG 1999 n n n n n n n If you want to use KANBAN without MRP. If you have excluded a material from MRP at a storage location. 2 Material K MRP indicator = 1 Stor. you must have excluded the material from MRP in the material master. In Customizing for MRP under Planning -> Storage location MRP. You therefore set a material as 'KANBAN' not at plant level in the material master. the MRP type in the material master cannot be ND. 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. For certain replenishment strategies (replenishment with run schedule quantities (planned order)).Master Data Replenishment Strategies without MRP: Material Master Plant 1200 MRP indicator = 'blank' Stor. however. (C) SAP AG LO235 5-10 . the system opens a new individual planning section (material excluded from MRP at storage location) in the stock/requirements list. loc. This has the effect that when a new material is created in a storage location. it is possible to enter storage locations collectively. the MRP indicator defined in Customizing is automatically defined for the material at this storage location.

This procedure is used if there is a specific storage location for each component in the plant. which is maintained in the BOM item of the component (field Production storage location). You can define the receiving storage location in the production version of the assembly in field GI proposed stor. y orit Pri A B C D Question: Which issue storage location? BOM Production storage location from BOM item for component D 2. it proceeds as described for indicator 2. the system's first priority is to post the components from the issue storage location. loc. If the proposal withdrawal location has been maintained in the production version. If neither of these entries has been maintained. If it cannot find a storage location. (C) SAP AG LO235 5-11 . If a storage location has not been entered in the BOM item. You should use indicator 2 when all components lie together in one storage location close to the production line where they are required. • Storage location selection =3: As for indicator 1. determination by MRP group in material master material A A A D B C Material Material mastermaterial D:production D:production storage location B C D Production versionMaterial versionMaterial A:ProposedA:Proposed-issue storage location Production storage location selection = 1 in MRP group for material A: production storage location from material master for component D © SAP AG 1999 Production storage locn selection = 2 in MRP group for material A: proposed issue storage location from production version for assembly A n Use: In the BOM explostion.Procedure for Storage Location/Supply Area Determination Scenario: BOM explosion until Component D 1. 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. 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). but with reversed sequence. • Storage location selection =4: as for indicator 3. loc. the system uses the assembly's receiving storage location as the withdrawal storage location for all components. • 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. 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.location. or in the material master record of the assembly in field Issue stor. y t ori Pri Strategy for stor.

the entry in the field Production storage location from the material master of the component.• If a MRP group has not been maintained for the assembly/finished product. is read as the issue storage location for all components. (C) SAP AG LO235 5-12 .

© SAP AG 1999 n n n If several control cycles have the same supply source in the control cycle.Replenishment Strategies: External Procurement (KANBAN without MRP) l l l Purchase order Scheduling agreement schedule line Stock transfer order (plant to plant) n also possible cross-company-code l Schedule line for stock transfer scheduling agreement (plant to plant) n also possible cross-company-code l Source list n Quantity/value contract can be specified: contract release order for outline agreement. There is always exactly one supply source (no quota arrangement). (C) SAP AG LO235 5-13 . For processing with outline agreement (quantity/value contract) the outline agreement is specified in the source list. the quota is updated for materials inclued in the quota arrangement). then this can be maintained in the source list (simple maintenance for changing the supply source). However.

If the system finds no address here. maintenance in material master not necessary). 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. the planned delivery time from the material master is used. If the purchasing info record does not contain a planned delivery time. fax. The vendor delivers the goods to the location determined (receiving storage location is taken from the control cycle. When the goods receipt is posted. If the goods are delivered directly to the production line.Processing with Purchase Orders Creates a purchase order or contract release order for the outline agreement Purchase order 1 Empty Full Posts GR for purchase order. if you want to make any changes or if you want to enter any additional data). the system issues an information message indicating that the goods receipt will be carried out for KANBAN. the system changes the status in the background. In the case of under-deliveries (for example. The kanban indicator is set in the additional data of the purchase order. in the case of underdeliveries. There is a 1:1 relationship between the purchase order and the kanban. 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. EDI) for the purchase order is defined with the message control. For this type of goods receipt posting. as well as the type and time of the message issue (immediate. The delivery address of the vendor can be defined in the control cycle. The goods receipt can also be carried out manually using the transaction for goods receipt (for example. the status change (by bar code or kanban board) triggers an immediate goods receipt posting using the target data. Therefore. posting a lower actual quantity in the transaction Kanban Signal) remaining quantities of the purchase order remain. the goods receipt should be posted in the inventory management and the final delivery indicator should be set. The vendor must be defined in the control cycle. It is possible to print a kanban in the central GR with or instead of a goods receipt/issue slip. or manual GR for purchase order sets kanban to status FULL © SAP AG 1999 n n n n n n n n The purchase order (possibly with reference to a contract) is created when the kanban status is set to EMPTY. LO235 5-14 (C) SAP AG . The time of printing and the print form. it uses the plant address.

For the schedling agreement item. only kanban schedule lines can be created and not manual schedule lines or MRP schedule lines. The delivery address is taken from the scheduling agreement item (not from control cycle). if the scheduled quantity is not equal to the GR quantity. there is no 1:1 relationship between the kanban and the scheduling agreement schedule line. Scheduling agreement items with the kanban indicator cannot have an entry for MRP in the source list.99 Full Posts GR for schedule line. The schedule line is transferred to the vendor. In the case of under-deliveries (for example. (C) SAP AG LO235 5-15 . the kanban indicator must be set in the additional data for the scheduling agreement item. In the manual GR. with which the KANBAN process is to be carried out.99 1. 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. At the GR. For the scheduling agreement item. the system automatically creates a schedule line.4. the GR quantity must be divided amongst the empty kanbans.Process with Schedule Lines Scheduling Scheduling agreement agreement Creates a scheduling line for the scheduling agreement (scheduling agreement Empty schedule line) 1. posting a lower actual quantity in the transaction Kanban Signal) remaining quantities of the purchase order remain.6. or manual GR for scheduling agreement sets kanban to status FULL © SAP AG 1999 n n n n n n n n n n n When the kanban status is set to EMPTY. 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.

6 Delta for Logistics Execution D346P1 Delta Repetitive Manufacturing 3. Billing.x / 4.6 Profitability Management D346PM SAP R/3 Plant Maintenance Releases 3.x to 46B D346P2 Delta Manufacturing Planning in SAP R/3 D346PA Delta 3.6 SD Delta (Sales.6 Financial Accounting D346LE 3.x / 4. and Pricing) D40AW ABAP Workbench D40BM Active Ingredient Managment D40EIS Executive Information System D40IM Investment Management D40MM Delta 4.x to 4.6 from 3. Full Posts GR for schedule line.x to 4. or manual GR for scheduling agreement Sets kanban to status FULL © SAP AG 1999 D346 Delta 3.6C D346BC Basis Changes in 4.6 D346FI Delta 3.0 in MM () D40OM Overhead Cost Controlling D40PA Profitability Analysis D40PC Delta 4.6 D346SD 3.4.Process with Stock Transfer Orders / Stock Transport Scheduling Agreements (Plant to Plant) Creates a Stock Transfer Order or a Schedule Line for the Stock Transfer Scheduling Agreement Empty The supplying plant posts the material in the stock in transit or carries out a delivery.x D346CS SAP R/3 Customer Service Releases 3.x .X to 4.0 in Product Cost Controlling D40PDM Product Data Management D40PI Delta in PI D40PM Plant Maintenance () D40PP Production Planning D40PS Project System D40QM Delta in QM D40SM Service Management 11/97 D40TP Transfer Prices (C) SAP AG LO235 46C 46B 46B 46B 46B 46B 46B 46B 46B 46B 40B 40B 40B 40B 40B 40B 40B 40B 40B 40B 40B 40B 40B 40B 40B 40B 4 4 4 4 4 4 4 4 4 4 GA GA GA GA GA GA GA GA GA GA GA GA GA GA GA GA 5-16 .x to 4.

5 in PDM D45PI Delta 4. Moreover. For the process with stock in transit. quantity/value contract) is recorded in the source list. that is consumed in several control cycles. the GR can only be posted for the amount of the stock in transit. The process with stock transport orders/stock transfer scheduling agreements is supported between two plants from different company codes.5 in PP D45QM Delta 4. In the receiving location posting takes place with movement type 101.4.General Ledger Accounting Delta Guide D46HR . instead of posting the goods receipt. However.Asset Accounting Delta Guide D46FI-GA .Sales and Distribution Delta Guide Delta ABAP Workbench 4.0 to 4.5 in Sales and Distribution D45SM Delta 4.Materials Management Delta Guide D46SD . The only difference is that the system reads the source list to determine the source of supply. the vendor has to be changed simply in the source list.5 in PI D45PP Delta 3.x . (C) SAP AG LO235 5-17 .5 in QM D45SD Delta 4. The entry cannot be relevant to MRP for scheduling agreements with the KANBAN indicator.Controlling Delta Guide D46CO-OM . If the stock transfer is to be carried out in SD.Human ResourcesDelta Guide D46MM .Overhead Cost Controlling Delta Guide D46CO-PA . If the removal from stock in the delivering plant is to be carried out using MM functionality. the appropriate vendor has to be maintained.Financial Accounting D46FI-AA . but not in all control cycles.6 n n 40B 40B 45A 45A 45A 45A 45A 45A 45A 45A 45A 45A 45A 45A 45A 45A 45A 45A 45A 45A 45A 46B 46B 46B 46B 46B 46B 46B 46B 46B 46B 46B 46B GA GA 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 2 4 2 2 2 2 2 2 2 2 2 2 n n n n The release order is procured and then posted using the goods movement type 351. only one entry is allowed so that the scheduling agreement can be specifically identified in KANBAN procedures. The vendor or the outline agreement (scheduling agreement.5 in Service Management D45TM Travel Management D45TP Transfer Prices and Parallel Valuation D45VC Delta Valuated Sales Order Stock D45WM Delta in Warehouse Management D46BC .Profitability Analysis Delta Guide D46FI .D40VC Delta Valuated Sales Order / Project Stock D40WM Warehouse Management D45ABC Activity Based Costing D45BP Business Planning D45GI Financial Accounting D45HR Human Resources 4. the vendor indicator must be set to blank in Customizing for Purchasing (Purchase order processing -> Set up stock transport order). The procedure using the source list is similar to the procedure with standard purchase orders or with scheduling agreements. Advantage: If the vendor changes for a kanban material.Basis Delta Guide D46BC Delta in R/3 Basis Administration D46CO . the status can also be set to FULL (then goods receipt takes place in the background).5 D45IM Investment Management D45ML Actual Costing/Material Ledger D45OM Overhead Cost Controlling D45PA Profitability Analysis D45PC Product Cost Controlling D45PDM Delta 4.

Activities in External Procurement Activity Purchase order Scheduling agreement Plant <->Plant Status change Status à EMPTY Signal for replenishment Creates purchase order or schedule line GI in stock in transit or SD delivery Post GR Other activities Goods receipt Status à FULL © SAP AG 1999 Status change (C) SAP AG LO235 5-18 .

Replenishment Strategies: In-House Production (KANBAN without MRP) l Processing with cards and product cost collector (manual KANBAN) Processing with planned order (run schedule quantity) and product cost collector Production order l l © SAP AG 1999 (C) SAP AG LO235 5-19 .

Backflushing is carried out using the backflush transaction or by setting the kanban status to FULL. The kanban or the information is transferred to the supply source. (Printing and/or sending a kanban. post production activity). In the backflush. backflush components. The supply source receives the information either via the kanban (card) or via the kanban board. you should work with the backflush transaction where it is possible to branch into the component processing functions. The supply source produces the kanban quantity. If you want to change components. the goods issue of the components and changes the kanban status to FULL. then the system explodes the current BOM. The backflush automatically contains the goods receipt for the finished product. If the status is set to FULL or the backflush transaction is posted without component processing. (C) SAP AG LO235 5-20 .Processing with Cards (Manual KANBAN) Only the information that a material is to be produced is created. display in the kanban board) Empty Full Posts backflush (goods receipt assembly. or manual backflush sets status to FULL © SAP AG 1999 n n No replenishment element is created by the system when the demand source sets the kanban status to EMPTY. the production activities are posted to the product cost collector according to the material calculation.

or manual backflush sets status to FULL © SAP AG 1999 (C) SAP AG LO235 5-21 .Processing with Planned Orders (Run Schedule Quantities) for Repetitive Manufacturing A run schedule quantity is created. post production activity). It is possible to print a kanban Empty Production line Full Posts backflush (goods receipt assembly. backflush components.

Although product-related costing can be used as an alternative with production orders.. The order is produced.Processing with Production Orders for Discrete Manufacturing Order header Operations Operations A production order is created. Application: order-related production (order-related cost-monitoring. time tickets. (C) SAP AG LO235 5-22 . the system creates a production order for the kanban quantity for the supply source. © SAP AG 1999 n n n When the demand source sets the kanban to EMPTY. It is possible to print a kanban with the shop floor papers. this production order is released automatically and printed. Once the order has been completed. Empty Material components Material components PRTs PRTs 100 20 50 Backflush can post automatic goods receipt (not reversed) Full Posts GR for production order. Using the control key in the routing you can set that the backflush automatically posts the goods receipt (but not the reverse).. or uses the kanban board. Depending on the settings in Customizing. or GR sets kanban to FULL. The empty kanban or the information is transferred to the supply source.. The supply source receives the kanban or the shop floor papers. the supply source backflushes the quantity produced (with the backflush transaction in the production control menu).).

Integration Cost Accounting l Production with manual KANBAN or run schedule quantities n Collection of material costs. production activities and overhead rates at a cost collector as in repetitive manufacturing Cost collector settled periodically n l Production with production orders n Collection of material costs. and overhead rates in the production order Individual settlement for each production order n © SAP AG 1999 (C) SAP AG LO235 5-23 . production activities.

post material costs and production activities Post GR Status à FULL © SAP AG 1999 Status change (C) SAP AG LO235 5-24 . component backflush.Activities in In-House Production Activity Manual KANBAN Run schedule quantity Status change Creates run schedule quantities Production order Status à EMPTY Signal for replenishment - Creates production order Backflush possible Backflush Goods receipt Backflush = Goods receipt.

Replenishment Strategies: Stock Transfer (KANBAN without MRP) l Stock transfer with reservation from MM-based storage location to MM-based storage location l Direct transfer posting from MM-based storage locations to MM-based storage location l Stock transfer with transfer requirements/transfer orders from WM-based storage location to MM-based storage location © SAP AG 1999 (C) SAP AG LO235 5-25 .

they are printed with or instead of the goods receipt note. At goods receipt (transfer posting). © SAP AG 1999 n n Cards are printed at replenishment. or a manual transfer posting (movement type 311) sets the status to FULL. using the printer and the form in the kanban data. The planned receipt is always on the posting day. (C) SAP AG LO235 5-26 . as well as a material reservation as a planned issue at the issue storage location.Stock Transfer with Reservation Creates a stock transfer reservation as a planned receipt at the production storage location. Empty Physical stock transfer Full Posts the stock transfer for the reservation (from the issue storage location to the production storage location).

(C) SAP AG LO235 5-27 .Direct Transfer Posting Posts the stock transfer from storage location to storage Empty location Physical stock transfer Full Only changes the kanban status from EMPTY to FULL No goods receipt © SAP AG 1999 n At replenishment. and the form from the kanban data. kanban cards are printed using the printer.

You can only use a transfer order item to confirm a kanban quantity with variance. (C) SAP AG LO235 5-28 . You can print kanban data on the transfer order. Activities: 1. which is set in the control cycle. The system generates a transfer requirement for the Warehouse Management system with one item per kanban. 2. 3. Only on confirming the transfer order. The material will be transferred from the WM storage location via the kanban interface to the supply area. Alternatively you can also initially set the kanban to FULL. The system sets the kanban to FULL and posts the goods movement.You set a kanban to EMPTY. Alternatively the system can also immediately generate a transfer order (see Prerequisites). or: Confirmation of the transfer order automatically changes the kanban status from EMPTY to FULL and posts stock transfer © SAP AG 1999 n n n n n n n n 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 MMbased. whereupon the system confirms the open transfer order in WM in the background and posts the goods movement. With this process you initially create a transfer requirement. 5. 4. 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. Warehouse Management converts the transfer requirement into a transfer order. otherwise the difference cannot be assigned to any transfer order. 6. The supply area can be transferred into the transfer order as information. and the form from the kanban data. At replenishment kanban cards are printed using the printer. does the system post the material. Warehouse Management confirms the order. that is after stock transfer has been completed. which will be converted into a transfer order in Warehouse Management.Replenishment from WM Based Storage Locations using Transfer Requirements (1) Creates transfer requirement Empty Empty Transfer requirement is converted automatically or manually into a transfer order Full Full Confirms the transfer order in WM and posts the stock transfer.

the kanban parts are transferred to the interim storage bin. (C) SAP AG LO235 5-29 . that contains the replenishment strategy mentioned above. Under Storage location control in Warehouse Management. the actual quantity does not match the KANBAN quantity. • 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). loc. PL03 WMstor. If on confirming. then you must maintain Direct TO Creation in the replenishment strategy. this value determines where the difference will be posted to. you have maintained the difference indicator in the replenishment strategy. If applicable. • 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. the storage number above. loc.Replenishment from WM-Based Storage Locations using Transfer Requirements (2) MM Posting Stor. you have assigned the WM interim storage area to the kanban storage location and in addition. With this transaction type in WM. strategy 0006 is used). You have created a replenishment strategy with control type 6 for this type of stock transfer (in the standard system. 0088 Interim storage type 150 Supply area WM storage number 001 © SAP AG 1999 n Prerequisites: •You have entered both a WM-based and a KANBAN storage location. • You have created a control cycle for your material. • If you want to create a transfer order directly in the KANBAN application. the WM storage location. you have defined the movement type for the transfer posting from the WM storage location to the kanban storage location (standard 311). the storage type and storage bin from the WM as the KANBAN interface. • 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).

Stock Transfer with Integrated Stock Determination (Batches. 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 Replenishment strategies). Here. With stock determination you can access both unrestricted-use stock as well as unrestricted-use consignment stock. within batch determination.use stock . to calculate the strategy records. you have defined. the stock determination is controlled by the WM module. which consists of the stock determination group and the stock determination rule with further parameters. loc. replenishment with reservation.Unrestricted-use consignment stock vendor 2 A Charge © SAP AG 1999 n n n Use: In the replenishment strategies for stock transfer (replenishment with direct transfer posting. the stock determination strategy. you can determine which stock you want using stock determination. Prerequisites: • In Customizing for Inventory Management under Stock determination. the MM batch determination is triggered.Unrestricted-use consignment stock vendor 1 . 1 Empty Empty Material C UnrestrictedUnrestricted. Batch determination: If a component is a material to be handled in batches. for which the system tries. replenishment from WM-based storage locations) you must specifiy a storage location as the supply source for stock transfer in the control cycle. • You have assigned the stock determination group to the component in the material master record. (C) SAP AG LO235 5-30 . For material to be handled in batches you also assign the batch search procedure. Consignment) B Demand source Assembly/ production Supply source C D Stor. In the replenishment strategy Replenishment from WM-based storage locations. This search procedure determines the sequence of the strategy types. If there is any unrestricted-use stock or unrestricted-use consignment stock. then as well as stock determination. • In Customizing for KANBAN under Replenishment strategies you have assigned the stock determination rule on plant level for the appropriate replenishment strategy. on plant level.

Activities in Stock Transfer

Activity

Reservation from MM

Direct transfer posting from MM from WM Status change Makes transfer Makes transfer posting Creates posting transfer reqmt Creates transfer order

Status à EMPTY

Signal for replenishment

Creates Reservation

Other activities Transfer posting Reservation Status change

Goods receipt

Confirm transfer order

Status à FULL
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KANBAN with MRP: Unit Objectives

At the conclusion of this topic, you will be able to: l make the necessary settings for KANBAN replenishment strategies with MRP in the R/3 System

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Overview: KANBAN with MRP
Receipt elements created from MRP (for example weekly lot size) - purpose: forecast Today Time

Planned indpdt reqmts / sales order

A Planned order B D
Dependent rqmt C Planned order

E E Dependent rqmt

External procurement

Week 1

Reqmts

Week 3

Materials D and E can be procured with consumption-based planning, or with KANBAN, or with MRP

A C

Materials A and B are not controlled with KANBAN Material C is controlled by KANBAN with MRP

l MRP creates receipt elements (not delivery-relevant) as a forecast l When kanbans are set to EMPTY, additional replenishment elements (delivery

relevant) are created per container (in container-control no replenishment elements, but printing the cards triggers replenishment)
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n n

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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: l Backflushes and goods receipts are posted without reference to the kanban. This means that you can backflush daily quantities, for example. l KANBAN only manages the status of the kanban and controls material flow and production using the kanban signals.

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Replenishment Strategies: KANBAN with MRP

In-house production
n n n

Container control/planning with MRP Planned orders/planning with MRP Production orders/planning with MRP

External procurement
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Container control/planning with MRP Summarized JIT call

Stock transfer
n n n

With reservations/planning with MRP With direct transfer posting/planning with MRP Container control without res./transfer posting/ planning with MRP

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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.

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2 Material K MRP indicator = 1 Stor. (C) SAP AG LO235 5-35 . PL03 Replenishment using KANBAN with MRP Replenishment using KANBAN without MRP © SAP AG 1999 In this process. Loc. 1 MRP indicator = 'blank' Stor. loc. loc. the storage location assigned to the supply area is not excluded from MRP (MRP indicator = blank).Master Data: Replenishment Strategies with MRP:Material Master Plant 1200 MRP indicator = 'blank' Stor.

A goods receipt is not posted. there is a 1:1 relationship between reservation and kanban). only differences can be posted (as manual postings do not have any influence on the container control). Note: While in container control (in the two cases above). the replenishment strategy stock transfer with reservation/planning with MRP also leads to a manual posting at the status change (as here. Stock Transfer Only the information that a material is to be produced is created. using a user exit. prints a kanban. In this case only differences can be posted manually (for example: container quantity 21 pieces. no reference to the kanban). display in the kanban board) Empty KANBAN runs as manual KANBAN Full Only status change. (Printing and/or sending a kanban. (C) SAP AG LO235 5-36 . In this case you post 20 pieces on setting to FULL. kanbans can be sent by EDI.Container Control for In-House Production. planned quantity however. l In external procurement with scheduling agreements (kanban indicator in scheduling agreement = blank. and you post the difference of 1 piece manually). display in the kanban board (possible to print and/or send a kanban) l MRP creates receipt elements (not delivery-relevant) as a forecast l Printing and/or sending a kanban triggers replenishment (delivery relevant) l No reference from receipt element to the kanban © SAP AG 1999 n n In the replenishment strategy container control. 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. and if required. Exception: l In in-house production with repetitive manufacturing. is 20 pieces. when setting the kanban to FULL. For stock transfer with container control the supply source and the receiving supply source belong to a storage location. 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. no reference to the kanban). 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. setting a kanban to FULL could cause goods receipt for the amount of the container target quantity. setting a kanban to EMPTY only triggers a status change. In this case only differences can be posted manually. If you use scheduling agreements. External Procurement.

. You can trigger a summarized JIT call both via classic as well as event-driven KANBAN. by setting a kanban to EMPTY or create a new item in an existing JIT call. or EDI.. agrmt Sched. • As soon as you really need the material in production. 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. but he uses it for his own planning. Source list Sched.. a JIT call can contain an unloading point for the materials.. Message determination checks whether a message can be found for the criteria entered and triggers a message default. This summarized JIT call is then sent to the vendor in the form of a letter. fax. (C) SAP AG LO235 5-37 . The summarized JIT call is relevant for delivery for the vendor. the item with the earliest date defines when the material must be delivered to this JIT call. e-mail. • KANBAN • Pull list Empty © SAP AG 1999 n n n n 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). quantity Fax. etc. Kanbans are delivered corresponding to the summarized JIT call. JIT call Material A Date. supply area Quantity Relevant for delivery EDI Fax. which you transmit as a forecast delivery schedule or a JIT delivery schedule to the vendor. etc. quantity EDI Date. . • First. For a summarized JIT call with several items. agrmt Material A Material A Control cycle Production Sum.External Procurement: Replenishment with Summarized JIT Calls MRP Forecast. generate a summarized JIT call. which is relevant for delivery. time Unloading point. In addition. This forecast or JIT delivery schedule is not delivery relevant for the vendor. you generate schedule lines from requirements planning as a forecast. Forecast delivery not relevant schedule for delivery Material A Date. The dispatch is controlled by message determination.

Grouping Summarized JIT Calls When a new summarized JIT call is created. If this is not the case. the system checks whether this material requirement can be attached to an existing summarized JIT call. partner. in order to achieve optimization in delivery. In principle.whether it is to be attached to an existing JIT call as an item.. plant Unloading point Arrival time (shift. Vendor. If this is the case. then you must also always group according to plant or according to plant and unloading point). the system creates a new summarized JIT call (no items can be added to transmitted summarized JIT calls). then the system generates an item for an existing summarized JIT call. or 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. it is tested to determine . then on emptying a kanban. (C) SAP AG LO235 5-38 . If you have set the grouping of material requirements in the system. . you can only group kanbans that have • the same vendor • the same message partner • the same plant and that • have not yet been transmitted. period) Mandatory Optional Optional © SAP AG 1999 n n n Use: You group material requirements. If you decide to group kanbans..or whether a new call is to be created Grouping per.

03. Delivery time: 17. 1500 pc.03. sched. 17. 1600 pc. (C) SAP AG LO235 5-39 . 2600 pc.03.03. Forecast delivery schedules for various materials are only grouped if the same partners are maintained in the scheduling agreements under this partner function. Sub-vendor Sub-vendor Vendor Vendor (Head office) (Head office) Vendor Vendor (North plant) (North plant) Vendor Vendor (South plant) (South plant) Carrier Carrier © SAP AG 1999 n n Determination of message partner: Problem: A summarized JIT call 000123 refers to a scheduling agreement for material A and B. 24. In this case the system always creates a new summarized JIT call (dispatch time 4) on emptying a kanban.Message Transmission of Summarized JIT Calls MRP Production • KANBAN • Pull list Fcst dely Fcst dely sched. You can transmit the message to your JIT call at various times..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. 600 pc. Fcst dely Material A Fcst dely Material sched. 1500 pc. 2600 pc. 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. 17. 17. 17. For the standard case (always the same vendor) you do not need to maintain a partner function. Fcst dely 17. 03:30 PM Material B14 pc. 24. Material C Summarized JIT call 000123 Summarized JIT call 000123 Unloading point 4711 Unloading point 4711 Delivery time: 17. In Customizing for KANBAN enter the dispatch time for the corresponding message under Define message type for summarized JIT call (under Default settings).03. 500 pc. Unloading point 4712 Material A 25 pc.03. Material B sched. The forecast delivery schedule for material A can be sent to a different recipient than the forecast delivery schedule for material B.03. Material B 24. 1600 pc. 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). 08:30 Delivery time: 17.03. Material C 15 pc. 2500 pc..03. sched.03.03. 24.. Summarized JIT call 000124 24. Message determination always appears when you create a new summarized JIT call.03.03. 2500 pc. 08:30 Material A 25 pc. • You test yourself which JIT calls you have to transmit (dispatch time 3). Material B14 pc. Material C 18 pc. • You transmit the message directly on creating the summarized JIT call. The control of the message output takes place via this message partner.

Sched.03. 1600 pc.03. JIT call Summarized JIT call 0123 GR with kanban Kanban 0000000111 GR with sched. 1. Material B 17.Goods Receipt with Reference to Sum.delivery. You can also alter the suggested quantity. 2600 pc. pc.6. Sched. which you have released from your vendor. Sum. i. 1500agrmt 553 Sched.agrmt 552 Sum.03. pc.03. 1. • Starting in the KANBAN menu. you can carry out the goods receipt per item. 2500 pc. which enables you to post the goods receipt to a JIT call number. • Starting in the Inventory management menu. agrmt 552 Material A 17. 24. you will find a function under JIT calls. If a summarized JIT call contains several items.e. agrmt 552 Material A 17.2001 24. 1600 pc. agrmt 552 Material A Sched. which were suggested for confirmation and which match the quantities to be released can be posted by item. You should not use this function for adjustments.2001 24. agrmt Sched. JIT call 0123 Material A 25 pc.03. Material B 17.4. When you carry out the goods receipt in the scheduling agreement. Kanban 0000000111 Kanban 0000000122 © SAP AG 1999 Kanban 0000000111 Kanban 0000000122 Kanban 0000000111 Kanban 0000000122 n n n You can carry out the goods receipt both via KANBAN and the summarized JIT call as well as by your scheduling agreement item. 1.03. then the goods receipt quantities. 1600 pc. JIT Call GR with sum.6.03. 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. Material B 17. per kanban. • When a kanban is set to FULL. JIT calls or kanbans will not be updated.03. 1500agrmt 553 24.2006 2600 pc.2006 24.4. Sum.03.or over. Material B14 pc.03.2006 2600 pc. 1. JIT call 0123 Material A 25 pc. Material B14 pc.6. 1500agrmt 553 Sched. 24.03. Material B14 pc.03. 2500 pc.e. Sched. i. JIT call 0123 Material A 25 pc. if it is permitted in the scheduling agreement you can post an under. 2500 pc. For more information (such as prerequisites) see the SAP Library for KANBAN. 1.4. pc.2001 1. If you post the goods receipt in the foreground. the system posts the quantity. 17. (C) SAP AG LO235 5-40 .

which are created by MRP.... These reduce the planned orders. quantity Date. by setting a kanban to EMPTY. © SAP AG 1999 n MRP can also be used for a forecast with KANBAN run schedule quantities and KANBAN production orders. Forecast. not relevant for delivery KANBAN orders reduce planned orders from MRP Production l l Control cycle KANBAN Pull list Empty REM planned order or production order Material A Date. 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) n (C) SAP AG LO235 5-41 . The planned orders from MRP are reduced when KANBAN run schedule quantities or production orders are created.Production Orders/Planning with MRP MRP Planned orders Material A Date. quantity . Two replenishment strategies are provided as standard (in-house strategies 0005 and 0006).. time Supply area Quantity Relevant for delivery l MRP creates receipt elements (not delivery-relevant) as a forecast l Replenishment elements (delivery-relevant) are created by KANBAN per container.

Replenishment Strategies: Summary l Replenishment Strategies for KANBAN without MRP l Replenishment Strategies for KANBAN with MRP © SAP AG 1999 (C) SAP AG LO235 5-42 .

Choose Enter.Replenishment Strategies Exercises Unit: Replenishment Strategies Topic: KANBAN with scheduling agreement schedule lines At the conclusion of these exercises. Select item 10 and choose: Item → More functions → Additional data (C) SAP AG LO235 5-43 . 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. without label) is provided for a parts production in supply area T-P6##. you will be able to: • trigger replenishment with KANBAN with scheduling agreement schedule lines The PC component T-TC## (CD-ROM. 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). Replenishment is to be carried out using schedule lines from vendor 2 (Electronic Components Distributor). Valid-to date: End of next year Choose Enter.

set all 5 kanbans for PC component T-TC## to EMPTY. You are already familiar with the menu path. by closing the dialog box. On setting a kanban to EMPTY. Display the delivery address: Item → More functions → Delivery address Choose Adopt. Therefore. Save the control cycle. choose the entry X (replenishment element for KANBAN). the delivery address for the schedule line is transferred from the scheduling agreement. (C) SAP AG LO235 5-44 . 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. 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##. Material: T-TC## Plant: 1200 Supply area: T-P6## Number of kanbans: 5 Quantity per kanban: 20. Save the scheduling agreement and note the number. select strategy 0002 (schedule lines) for the replenishment strategy. 1-3-1 In the kanban board. 1-3 Now go to the demand source view of the kanban board for supply area T-P6##. Disregard any warnings by clicking Enter and. if necessary. In external source. you can maintain the exact delivery address in the schedule line item.In the field Kanban indicator.

According to the stock/requirements list. Set the indicator OK. instead of using the goods receipt posting in Inventory Management. 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). In the field Quantity overwrite the quantity to the value 40 pieces. Change the actual quantity to 18 pieces. In the following dialog box you must decide which kanban you want to fill with the goods received. Accept the proposal by choosing Copy. Menu path: Logistics → Production → KANBAN Control → Kanban signal → Manual entry Material: T-TC## Plant: 1200 Supply area: T-P6## Using F4-Help in the field Kanban number. The system proposes the complete quantity (100 pieces).Examine the result in the stock/requirements list. Choose Save . 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. use the manual kanban signal. Actual quantity: 18 pieces (C) SAP AG LO235 5-45 . Examine the result in the stock/requirements list. choose a container with status EMPTY. This time. Choose Enter. 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.

How has the stock/requirements situation changed? ____________________________________________________________ (C) SAP AG LO235 5-46 .Choose Save. Examine the result in the stock/requirements list.

The supply source is person responsible L6. with label) is staged on production line T-L1## using KANBAN. In in-house production. select strategy 0001 (manual KANBAN) for the replenishment strategy. you will be able to: • • create a control cycle for manual KANBAN. 2-2-1 You are already familiar with the menu path. The material is produced in the area of responsible person L6. Save the control cycle. 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. Replenishment is to take place using manual KANBAN. 2-2 Now go to the demand source view of the kanban board for supply area T-P1##. You are already familiar with the menu path. Plant: 1200 (C) SAP AG LO235 5-47 . you must lock one of the containers. trigger replenishment with manual KANBAN The PC component T-B8## (CD-ROM.Exercises Unit: Replenishment Strategies Topic: Manual KANBAN (optional exercises) At the conclusion of these exercises. As you initially want to organize replenishment with 4 containers. Material: T-B8## Plant: 1200 Supply area: T-P1## Number of kanbans: 5 Quantity per kanban: 10 pieces. 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##.

In the kanban board. 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 TTC## 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. Branch directly from the kanban board into the stock/requirements list for this material. 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. 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. What is the available quantity of component T-TC## at storage location PL06? ______________________________________________________ ______________________________________________________ (C) SAP AG LO235 5-48 . set all containers for material T-B8## to EMPTY.Choose Supply area and then select T-P1##. What is the available quantity of assembly T-B8## at storage location PL01.

you will be able to: • 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##. set two kanbans for PC component T-B7## (processor coolant unit) to EMPTY. Replenishment is to take place with run schedule quantities (planned orders with the order type PE). Which replenishment elements were created by setting the kanbans to EMPTY? ______________________________________________________ Branch from the stock/requirements list to the first planned order by double(C) SAP AG LO235 5-49 .Exercises Unit: Replenishment Strategies Topic: KANBAN with planned orders (repetitive manufacturing) At the conclusion of these exercises. by double clicking on the row for material T-B7## (processor coolant unit). Examine the result in the stock/requirements list. 3-1-1 Branch from the kanban board to the control cycle. 3-1 Now go to the demand source view of the kanban board for supply area T-P3##. 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. Alternatively. The supply source is person responsible L5.

Choose the Display icon. Choose Back twice. Kanbans with errors are discussed in the (C) SAP AG LO235 5-50 . 3-3 Now set the second container to FULL. 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. select the control cycle for material T-B7## in the kanban board and choose: Goto → Stock/requirements list Choose Refresh. enter the material numbers of the components. 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##. 3-3-1 Now try to set the second container to FULL for material T-B8## (supply area T-P3##) in the kanban board. one after the other in the field Material and each time choose Enter. then Components overview. 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. 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 TT8## in the stock/requirements list: To do so.clicking it.

select the indicator Components. set another kanban to EMPTY for PC component TB7## (processor coolant unit). Select the first kanban that you want to backflush. However. 3-5 Now go to the demand source view of the kanban board for supply area T-P3##.unit Error Processing. Despite this. 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. 3-5-1 What status does the kanban have after the backflush? (C) SAP AG LO235 5-51 . correct the quantity for the component T-T8## to 20 pieces as well as component T-T9## to 21 pieces. only 19 assemblies instead of 20 were produced for material T-B7##. due to scrap. enter the quantity to backflushed as 19 pieces for the assembly T-B7## in the column Actual quantity. by carrying out the backflush: Menu path: Logistics → Production → Kanban Control → Backflush Material: T-B7## Plant: 1200 Choose Enter. The system takes you to the component processing. In the following component processing. As you also want to branch to the component processing to post excess component consumption. with the indicator Backflush. For the first kanban. 3-4-1 In the kanban board. Save the backflush. 20 pieces of component T-T8## and 21 pieces of component T-T9## have been consumed. Choose Save. 3-4-2 The supply source has now filled the requested kanban. Enter this data.

______________________________________________________ 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 5-52 .

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. Replenishment is to be carried out using the replenishment strategies Stock transfer with reservation or Direct transfer posting from the material storage location. you will be able to: • 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 TL5## in supply area T-P5##. T-T8##: T-T9##: Loc. 4-1-3 Return to the stock/requirements list of both materials. direct transfer posting At the conclusion of these exercises.Exercises Unit: Replenishment Strategies Topic: Stock transfer with reservation. (C) SAP AG LO235 5-53 . 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##.PL05: General stock: General stock: 4-1-2 Return to the kanban board and set one kanban to EMPTY for both materials (T-T8## and T-T9##).PL05: Loc. 4-1-1 From the kanban board.

PL05: General stock: 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. reference → To reservation In the Reservation field enter the number of the stock transfer reservation you noted above.Note the available quantities of both components at storage location PL05 and at general stock: T-T8##: T-T9##: Loc. Choose Enter. How has the situation changed in the stock/requirements list changed? ______________________________________________________ (C) SAP AG LO235 5-54 .PL05: Loc. Save the transfer posting and confirm the following dialog box with Enter. 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. Therefore.

the replenishment elements created in the planning run. however. Run time end: End of next year Choose Enter. This takes you to the header of the scheduling agreement. are not intended to trigger replenishment directly. you will be able to: • 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). Instead. they exist to provide the supply source with a forecast. 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 organization: 1000 Purchasing group: 007 Choose Enter. In this case the vendor receives a forecast of possible future requirement quantities by schedule lines in MRP.Exercises Unit: Replenishment Strategies Topic: KANBAN with MRP – replenishment with summarized JIT call At the conclusion of these exercises. A delivery-relevant summarized JIT call is not created until the kanban is set to EMPTY. (C) SAP AG LO235 5-55 . However. The material flow is controlled by setting kanbans to FULL and EMPTY.

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. Course participants continue directly with exercise 5-2. Note: The message conditions/message determination is not a part of the standard course. 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. simply to be able to complete the entire process. Choose Enter. in order to demonstrate a valid message condition maintenance for all course participants. Here. Choose Enter. Menu path: Logistics à Production à KANBAN JIT Call à Message Conditions à Create Output type: MAFO (summarized JIT call print form) Choose Enter. choose the entry Y (scheduling agreement for summarized JIT calls). the necessary data is maintained.) /Vendor.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). Select the item 10 and choose Item → More functions → Additional data In the field Kanban indicator. Course participants do not carry out exercise 5-1-2. Plant: 1200 JIT call profile: 0001 Vendor: 2 Partner function: VD (Vendor) Medium: 1 (print output) Time: 4 (dispatch immediately (on saving the application) Language: EN (English) (C) SAP AG LO235 5-56 . In the following dialog box select the key combination Plant/JIT call profile (JC prof.

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. the scheduling agreement has to be entered in the source list. Plant 1200 Storage location PL03 Choose Enter. In the following screen choose: Printer: LP01 (Dummy printer) Select the indicator Print immediately.Select the rows and press the button Communication. which you have just created. maintain a source list entry for material T-T7## and the scheduling agreement item. Choose Save . Choose Enter. 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##. 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. Menu path: Logistics → Material Management→ Purchasing Master Data → Source List → Maintain Material: T-T7## Plant: 1200 Choose Enter. In the field MRP indicator choose the entry ‘Blank’ (warehouse stock is planned on plant level). Select MRP 4. 5-2 So that MRP can directly create schedule lines as a forecast. (C) SAP AG LO235 5-57 . Therefore.

Choose Enter. In the next screen. On the tab page Flow control select the JIT call profile 0001. Choose Enter. 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). Enter the scheduling agreement you created above in the field Contract. The component used above T-T7## (BIOS) is part of this motherboard. choose the tab Schedule lines.Save the material master. Choose Enter to confirm any warning messages. Menu path: Logistics → Production → Production Planning → Demand Management. D W W W W W W Requirements Date Planned Quantity This week + 1 week 100 pieces This week + 2 weeks 130 pieces This week + 3 weeks 130 pieces This week + 4 weeks 165 pieces This week + 5 weeks 170 pieces This week + 6 weeks 165 pieces LO235 5-58 (C) SAP AG . Enter the following planned independent requirements using the period indicator W (week). 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. Planned Independent Requirements → Create Material: T-B5## (not T-T7##) Plant 1200 Planning period: W (week) Choose Enter. Save the control cycle. Use F4-Help in External procurement to display the strategies available. 5-5 Create the planned independent requirements for the PC assembly T-B5## (motherboard).

Choose Enter to confirm any warning messages. Multi-Level Material: T-B5## (not T-T7##) Plant 1200 Choose Enter twice. from a previous exercise in the stock/requirements list. 5-6 MRP should provide a forecast of possible future requirements using schedule lines. (C) SAP AG LO235 5-59 . delete these before carrying out MRP for assembly T-B5## (motherboard).Save the planned independent requirements. Now carry out MRP for the PC component B5## (motherboard): Note: If purchase orders should still exist for component T-T7## (BIOS). Menu path: Logistics → Production → MRP Planning → Single-Item.

5-10-1 Menu path: Logistics → Production → KANBAN JIT Call → Goods Receipt JIT call number: Enter the JIT call number above. 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). Choose Enter to confirm any information messages. Write down the number of the summarized JIT call: ____________________________________________________________ 5-9 In the kanban board. (C) SAP AG LO235 5-60 . set one container for material T-T7## (BIOS) to FULL. Both components are recorded in the BOM of assembly T-B5## (motherboard). 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. Menu path: Logistics → Production → KANBAN 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.5-7 Check the MRP result for component T-T7## (BIOS) and T-B7## (processor coolant unit).

Choose Enter. Has the status of any kanbans changed? ______________________________________________________ 5-10-3 Branch directly from the kanban board into the stock/requirements list. 5-10-2 Now go to the demand source view of the kanban board for supply area TP3##. What has changed in the stock/requirements list? ______________________________________________________ (C) SAP AG LO235 5-61 . Choose Save .

In addition.Replenishment Strategies Solutions Unit: Replenishment Strategies 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. 1-5 The available quantity for material T-TC## at storage location PL06 has increased by 18 pieces. On today’s date there is 0 available. (C) SAP AG LO235 5-62 . two schedule lines can no longer be seen. 1-2 1-3 1-3-1 A total of 5 scheduling agreement schedule lines are created each with 20 pieces. 1-4 The available quantity for material T-TC## at storage location PL06 has increased by two kanban quantities (40 pieces in total). because the goods receipt will take place in this storage location in the plant.

(C) SAP AG LO235 5-63 .Solutions Unit: Replenishment Strategies Topic: Manual KANBAN (optional exercises) 2-1 2-2 2-2-1 2-2-2 In manual KANBAN. the exact quantity is not important as long as it is greater than 10 pieces. the system does not create a replenishment element when the demand source sets the kanban to EMPTY. The supply source produces the kanban quantity without replenishment elements in the system. Only the information that a material is to be produced is created (such as printing a kanban card). 2-3 2-3-1 The available quantity for the assembly T-B8## at storage location PL01 has increased by the kanban quantity. 2-2-3 2-2-4 The available quantity of assembly T-B8## is 0 pieces. The supply source receives the information either via the kanban (card) or via the kanban board. You should have some available quantity of assembly T-TC## based on the last exercise. The available quantity for the component of this assembly at storage location PL06 has decreased by 10 pieces.

a planned order is created for the kanban quantity. 3-1-2 When the kanban is set to EMPTY. which contains the goods issue postings and the production activities posting. however. 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.Solutions Unit: Replenishment Strategies Topic: KANBAN with planned orders 3-1 3-1-1 The person responsible L5 is responsible for replenishment. as a product cost collector does not exist for material T-B7##. Which components are required for the production of assembly T-B7##? Components T-T8## and T-T9## are required for production of the assembly. 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##. Reason: When the kanban is set to FULL. the final backflush corresponds to the repetitive manufacturing backflush. The material costs and production activities cannot be posted. In KANBAN with planned orders (repetitive manufacturing). the goods receipt is posted automatically. 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 3-4-1 (C) SAP AG LO235 5-64 .

(C) SAP AG LO235 5-65 . the T-B7## has increased by 19 and the components have been reduced by the acutal amount used. 3-5-3 Yes. 3-5-2 The actual quantity of the full kanban is 19 pieces.3-4-2 3-5 3-5-1 After the backflush the kanban has status FULL.

4-1-5 4-1-6 With manual posting you can change the quantity or enter a batch. In addition. 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. T-T9##: General stock went down by 50 and PL05 went up by 50. which is planned separately.Solutions Unit: Replenishment Strategies Topic: Stock transfer with reservation. (C) SAP AG LO235 5-66 . and the reservation was removed from the list. a direct stock transfer is carried out: the material is posted from the plant stock to the warehouse stock PL05. The stocks remain unchanged. 4-1-2 4-1-3 T-T8##: Plant or Pl05 stock has not changed yet. a material reservation is created as a planned issue for replenishment storage location 0001 (material storage location). PL05 stock varies. direct transfer posting 4-1 4-1-1 Quantity in plant stock = 100 for both materials. For material T-T9## there are no receipt or issue elements. By emptying the kanban. 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. but reservations and transfers exist.

5-4-2 Because you set the MRP indicator Blank in the material master for the material at the storage location. 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).Solutions Unit: Replenishment Strategies 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. because the goods receipt will take place in this storage location in the plant. 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. for which a control cycle was created. 5-5 5-6 (C) SAP AG LO235 5-67 .

there is already a planned order for one kanban quantity. the system posts a goods receipt for the scheduling agreement item for the kanban quantity. (C) SAP AG LO235 5-68 . 5-10 5-10-1 5-10-2 The kanban was set to FULL. it is not usually possible to link setting the kanban to FULL with the goods receipt posting. 5-10-3 At storage location PL03. material T-B7## is excluded from MRP at storage location PL03. 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. a goods receipt for the scheduling agreement item was posted for the kanban quantity. Note: With the replenishment strategy KANBAN with MRP. schedule lines for storage location PL03 have already been created in the planning run for material T-T7##. however they are not included in the planning run. as a result of the goods receipt posting to the JIT call number. However. Exceptions: When using schedule lines and planned orders (with run schedule headers). Here. the system only creates the information that the material is to be delivered (such as by printing a kanban card). The schedule line was also reduced by this amount.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. 5-8 Setting the kanbans to EMPTY does not have an effect on the stock/requirements list. Therefore. 5-9 By setting the kanban to FULL. The system displays dependent requirements in storage location PL03. When kanbans are set to EMPTY.

Kanban Calculation: Contents l Automatic kanban calculation © SAP AG 1999 (C) SAP AG LO235 6-1 .

l In addition. you can adjust the number and quantity per kanban to suit an irregular requirements situation.Kanban Calculation: Unit Objectives At the conclusion of this unit. © SAP AG 1999 (C) SAP AG LO235 6-2 . you will be able to: l Calculate the number and quantity per kanban on the basis of the requirements situation.

Overview Diagram 6 6 1 1 Introduction Kanban Calculation 7 7 2 2 KANBAN Overview Special Procedures 3 3 Master Data 8 8 Error Processing 4 4 General Procedure 9 9 Evaluations 5 Replenishment Strategies 5 © SAP AG 1999 (C) SAP AG LO235 6-3 .

l The aim is to guarantee material replenishment with the lowest possible inventory. l Therefore. © SAP AG 1999 (C) SAP AG LO235 6-4 .Kanban Calculation: Business Scenario l The requirements situation in your company is irregular. l To guarantee low stocks of material you have to check and adjust the number of kanbans and the quantity per kanban on a regular basis. you must choose the optimal number of kanbans and quantity per kanban.

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 . the number of kanbans and the quantity per kanban must be chosen carefully. Activities: The kanban calculation can be triggered per control cycle (Kanban calculation button in the control cycle). In addition. of kanbans in control cycle? l Quantity per kanban in control to fulfill requirements cycle? © SAP AG 1999 n n n n Use: To guarantee low stocks of material with sufficient security of suppy. The kanban calculation process can be divided into the following steps: . (C) SAP AG LO235 6-5 .Long-term planning/MRP: Implementation of MRP or long-term planning for creating planned orders and dependent requirements . the corresponding kanbans are locked according to the lock logic (in Customizing for KANBAN under Kanban calculation).Kanban Calculation Demand source Supply area Supply source Control cycle l No.Transaction Check proposal : Display the change proposal Additional evaluations (optional) Change the control cycle If the number of kanbans is to be reduced. Scope of function: If you use the automatic kanban calculation. you can use the transactions Create proposal / Check proposal for a mass calculation for several control cycles. it is necessary to check and adjust these parameters on a regular basis. As the inventory situation in many branches of industry fluctuates considerably. The proposals are created on the basis of the dependent requirements. that can come either from MRP or from long-term planning. the system can create proposals for the number of kanbans and the quantity per kanban.

replenishment also takes place via KANBAN (with replenishment strategy 'KANBAN without MRP'). no dependent requirements for the kanban material. in this case. Long-term planning is a simulative requirements planning. planned order Sim.You can also use long-term planning if replenishment takes place via MRP above the kanban material. planned order Sim. . which come from planned independent requirements or sales orders of the finished product. dependent rqmt K3 Sim. © SAP AG 1999 n The automatic kanban calculation is created on the basis of dependent requirements. You can also create simulative dependent requirements with it. Replenishment with MRP K. planned order Kanban calculation for control cycle K3 with simulative dependent requirements from long-term planning. In this case you can carry out the kanban calculation on the basis of simulative dependent requirements of a long-term planning scenario. for whose control cycle you are carrying out the kanban calculation. replenishment takes place via MRP. see the SAP Library. (C) SAP AG LO235 6-6 . There are three different cases: . Since MRP terminates with kanban materials. which come from planned independent requirements or sales orders of the finished product. Therefore. These simulative dependent requirements and planned orders are not visible in operative planning.. For more information on long-term planning.. In this case there are dependent requirements for the kanban material.Above the kanban material. Replenishment with KANBAN (KANBAN without MRP) K2 Sim. dependent rqmt K1 Sim. . for whose control cycle you are carrying out the kanban calculation.Dependent Requirements as a Basis for the Kanban Calculation Planned independent requirements / sales order Planned order Dependent rqmt Planned order Dependent rqmt K1 Planned order Kanban calculation for control cycle K1 with dependent requirements from MRP. there are.Above the kanban material. they simply exist in a simulative long-term planning scenario. as well as simulative planned orders throughout the entire BOM. This is used if you want to carry out the kanban calculation on the basis of a simulation planning. you must plan the finished product with long-term planning. In this case you can carry out the kanban calculation on the basis of dependent requirements from MRP.

reqmts acc. to distribution key (smoothing type 2) Smooth all dependent requirements in a week (smoothing type 1) Time © SAP AG 1999 n n n n The automatic kanban calculation is created on the basis of the dependent requirements. 2.Smoothing Dependent Requriements for Kanban Calculation Quantity Dependent rqmt Non working time Distribution key (e. 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. 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. For smoothing the dependent requirements you can choose between two smoothing types (definition in Customizing for KANBAN and assignment in the control cycle): 1. that can come either from MRP or from long-term planning.: Dependent requirements in one week are distributed evenly over the week.: 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. That is. Here. equal distribution usually makes most sense. equal distribution) Smooth all dep. the components and their requirements date are on a specific day. (C) SAP AG LO235 6-7 . This type of smoothing is particularly useful if you plan on a weekly basis. In this procedure. although the requirements source is produced over a period (often several days). This process is more performance intensive than the weekly distribution. Then it is not necessary to carry out the kanban calculation for every day but for every week. In KANBAN. 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. Therefore. it may be necessary to smooth the dependent requirements before calculating the control cycles.g.

This procedure is used if there is a specific storage location for each component in the plant. which is maintained in the BOM item of the component (field Production storage location). loc. • Storage location selection =4: as for indicator 3. but with reversed sequence. • Storage location selection = 1: System reads the production storage location in the material master of the components as the issue storage location. it proceeds as described for indicator 2.Supply Area Determination Procedure Scenario: Dependent requirement Component D 1. This strategy is defined per MRP group in Customizing for repetitive manufacturing under Storage location and supply area determination. 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. If neither of these entries has been maintained. or in the material master record of the assembly in field Issue stor. y orit Pri A B C D Question: For which supply area? Supply area from BOM item for component D BOM 2. You can define the receiving storage location in the production version of the assembly in field GI proposed stor.location. • Storage location selection =3: As for indicator 1. 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). If the proposal withdrawal location has been maintained in the production version. the system's first priority is to post the components from the issue storage location. If a storage location has not been entered in the BOM item. the system uses the assembly's receiving storage location as the withdrawal storage location for all 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 6-8 . If it cannot find a storage location. • 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. y t ori Pri Strategy for supply area determination by MRP group in material master material A A A D B C Material master material D: supply area B C D Production version Material A: Proposed supply area Indicator = 1 in MRP group for material A: supply area from material master for component D © SAP AG 1999 Indicator = 2 in MRP group for material A: proposed supply area from production version for assembly A n Use: In the BOM explosion.

• 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 6-9 .

the constant is set to '1'. The safety factor is specified in the control cycle (default value 1). you set the constant in the following way: Ÿ If a kanban is reported EMPTY when the kanban is completely empty.SF + Cont C Constant K Cont RT AC No. then the constant is 0. for example). until the material has been replenished for this kanban. then the remaining material quantity [(number of kanbans . Ÿ If the kanban is set to EMPTY when the first part is withdrawn.+ 1 Cont Safety factor AC x RT K = -------------------. Therefore this remaining material quantity must equal the consumption in the replenishment lead time of a kanban [AC x RT].1) x quantity per kanban] has to be sufficient to cover the material requirement. then the quantity per kanban can also be calculated (calculation type 'quantity per kanban'). fluctuations in the replenishment lead time and in the consumption must be considered in the Safety factor. If the number of kanbans is constant (2.Formula for the Automatic Kanban Calculation ( K . (C) SAP AG LO235 6-10 . Depending on how KANBAN is used in production.1 ) x Cont = AC x RT AC x RT K = -------------------. The constant is specified in the control cycle (default value 1). To calculate control cycles you need to know about material requirements on control cycle level. of kanbans Quantity per kanban Replenishment time per kanban (from control cycle or material) Average consumption per unit of time (from dependent reqmts) © SAP AG 1999 n n n n n Calculation type “Number of kanbans ”: If the material of the first kanban has been consumed. In addition.

6 3 2. 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). which is necessary in the analysis period is. you can display the requirements run in a graphic. As it is not always of use to simply adopt these values blindly. you must maintain the detailed dependent requirements selection in the control cycle.Automatic Kanban Calculation Requirement 11. .2 Kanbans 5 8. which is necessary in the analysis period.the next change. the system can create proposals for the number of kanbans and the quantity per kanban.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. As in the analysis period a different number of kanbans can be necessary every day. which is necessary for data .4 4 5.8 2 Time © SAP AG 1999 n n n n n If you use the automatic kanban calculation. Prerequisites for the automatic kanban calculation: You must maintain the default values for the automatic kanban calculation in the control cycle. as well as . . (C) SAP AG LO235 6-11 .the maximal number of kanbans.If necessary. .If necessary. the system saves the following three values: .the minimum number of kanbans.

The transport or setup effort is higher. Maximum stock: 110 pc.Quantity per Kanban / Number of Kanbans Consumption in the replenishment lead time of a kanban = 100 pc Quantity per kanban = 100 pc 100 pc. Maximum stock: 200 pc. 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. Transport/ setup effort: high © SAP AG 1999 n n n n The quantity per kanban is the lot size. Larger quantities per kanban increase the average stock in circulation but decrease setup. The transport or setup effort is mimimal. Smaller quantities per kanban reduce the average stock in circulation but increase setup. the number of kanbans can be reduced further. (C) SAP AG LO235 6-12 .+ 1 10 pc. and monitoring effort. in which the material is replenished (produced. transported). of kanbans = 2 = ---------------. a maximum stock level of 110 pieces is calculated (11 kanbans each containing 10 pieces).+ 1 100 pc. No. of kanbans = 11 = ---------------. however. transport. a maximum stock level of 200 pieces is calculated (2 kanbans each containing 100 pieces). In the second example. and monitoring effort. 100 pc. If the replenishment lead time per kanban is shorter when using smaller lots. No. Transport/ setup effort: low Quantity per kanban = 10 pc. In the first example. transport.

Kanban Calculation: Summary l Automatic kanban calculation © SAP AG 1999 (C) SAP AG LO235 6-13 .

Kanban Calculation Exercises Unit: Kanban Calculation Topic: At the conclusion of these exercises. Menu path: Logistics → Production → KANBAN 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. you can adjust the number and quantity per kanban to suit an irregular requirements situation. Evaluation from: next Monday Evaluation to: today + 6 weeks Choose Enter and the number of kanbans required is displayed. (C) SAP AG LO235 6-14 . 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 TT7## (BIOS). The PC component T-T7## (BIOS) is staged with KANBAN on production line T-L3##. Select the kanban calculation icon to carry out the calculation on the basis of the dependent requirements in MRP for component T-T7##. you will be able to: • • calculate the number and quantity per kanban on the basis of the requirements situation in addition.

1-3 Now. choose the tab Schedule lines. In the next screen. which now contains parameters for the kanban calculation (authorization type. D W W W W W W Requirements Date This week + 1 week This week + 2 weeks This week + 3 weeks This week + 4 weeks This week + 5 weeks This week + 6 weeks Planned Quantity 100 pieces (no change) 130 pieces (no change) 130 pieces (no change) 205 pieces 190 pieces 195 pieces Save the planned independent requirements.To which number of kanbans should the control cycle be corrected in a few weeks? ____________________________________________________________ However. calculation profile). The planning run creates a new dependent requirements situation for the KANBAN component T-T7##. Save the control cycle. Choose Enter to confirm any warning messages. 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). do not change the number of kanbans yet. LO235 6-15 (C) SAP AG . Menu path: Logistics → Production → Production Planning → Demand Management Planned Independent Requirements → Change Material: T-B5## (not T-T7##) Plant 1200 Choose Enter. carry out the planning run for the PC assembly T-B5## (motherboard). Change the planned independent requirements as follows: Choose Enter to confirm any warning messages.

After checking the graphic. 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. This time use the mass kanban calculation in the KANBAN menu: 1-4-1 Menu path: Logistics → Production → Kanban 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. choose the Graphic key. you can display the requirements run in a graphic. To do this.Menu path: Logistics→ Production → MRP Planning → Single-Item. 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. On which date will the previous number of kanbans no longer be sufficient? According to the calculation. Multi-Level Material: T-B5## (not T-T7##) Plant 1200 Choose Enter twice. Decide in the graphic whether the proposed number of kanbans is acceptable for the next change. how many kanbans are required in the control (C) SAP AG LO235 6-16 . Evaluation from: next Monday Evaluation to: today + 6 weeks Choose Enter. 1-4 Carry out the kanban calculation again for PC component T-T7## (BIOS).

(C) SAP AG LO235 6-17 . choose: Control cycle → Kanban calculation → Check proposal. To make sure that you do not change the control cycles too early. Here you can specify any necessary time limits. the system will automatically change the control cycle.cycle at the next change? ______________________________________________________ Enter this number of kanbans in the table. By choosing Save. in the field Number of new kanbans.

(C) SAP AG LO235 6-18 . 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. 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.Kanban Calculation Solutions Unit: Kanban Calculation Topic: 1-1 1-2 1-3 1-4 The number of kanbans should be increased to 6 kanbans in a few weeks time. 1-4-1 1-4-2 On which date will the previous number of kanbans no longer be sufficient? According to the calculation. After checking the graphic. At the next change the control cycle should be corrected to 8 kanbans.

Special Procedures: Contents l l l l l l l l l l Cross-plant KANBAN Procurement and Withdrawal to Cost Center KANBAN with SD Delivery Separate Goods Receipt Independent Supply Source Define your own Status Sequences Define your own Activites at Status Change Quantity Signal Alternative Procedures for Triggering Replenishment Event-Driven KANBAN © SAP AG 1999 (C) SAP AG LO235 7-1 .

you will be able to: l Adapt the kanban production procedure to suit special requirements by making several settings in the control cycle and in Customizing. © SAP AG 1999 (C) SAP AG LO235 7-2 .Special Procedures: Unit Objectives At the conclusion of this unit.

Overview Diagram 7 1 1 Introduction 6 6 Kanban Calculation 7 2 2 KANBAN Overview Special Procedures 8 8 3 3 Master Data Error Processing 4 4 General Procedure 9 9 Evaluations 5 Replenishment Strategies 5 © SAP AG 1999 (C) SAP AG LO235 7-3 .

© SAP AG 1999 (C) SAP AG LO235 7-4 .Special Procedures: Business Scenario l In your company. you have to adjust the KANBAN procedure in the R/3 System to suit special requirements. l You have to make settings in the control cycle and in Customizing.

Cross-plant KANBAN . • You enter this replenishment strategy in your control cycle. Plant A (requesting plant) Replenishment is triggered Plant B (issuing plant) Empty Full Posts goods receipt in requesting plant A as well as backflush (goods issues) in issuing plant B © SAP AG 1999 n n n Use: You also have the option of using KANBAN cross-plant for the replenishment strategies stock transfer and in-house production. i.e. 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.. in the issuing plant. Prerequisites: You create either an in-house production or a stock transfer replenishment strategy with the indicator From other plant. Again. (C) SAP AG LO235 7-5 . Scope of function: • You trigger the production directly in the production plant. You post the goods receipt in the requesting plant and the goods issue and the backflush in the issuing plant.. • Stock transfer: You transfer your KANBAN material from plant to plant without having to create a stock transfer order. You can use this plant-to-plant process for all in-house strategies. you can use this cross-plant process for all in-house replenishment strategies. In the case of in-house production you can trigger production directly in the production plant. • If you enter such a replenishment strategy.

which is not backflushed. However. This bulk material is not contained in the assembly bill of material and cannot. grease is a bulk material and is posted to cost center. for example. the system posts the material initially to the storage location of the demand source (supply area). If you use grease in your production.Procurement and Withdrawal to Cost Center: 1) Withdrawal Replenishment is triggered Empty Posts withdrawn materials from storage location to cost center Supply source procures the kanban Full Posts goods receipt to storage location © SAP AG 1999 n n n n Use: You also have the possibility of procuring bulk material. be assigned to an assembly. 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. you do not usually assign a certain consumption of grease to every assembly. (C) SAP AG LO235 7-6 . on setting the kanban to FULL. via KANBAN. In this case. For this reason you must post the costs for this bulk material to cost center as material overhead costs. 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 EMPTY the quantity available is then posted to cost center. therefore. with double posting the posting effort is larger than with consumption to cost center.

therefore. 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‘). • You have created a replenishment strategy in Customizing for KANBAN that plans the procurement or the withdrawal to cost center. The material is not. • On creating the control cycle you have entered this replenishment strategy for the bulk material. The field Cost center is not ready for input in this case. In this way you ensure that this material will not be backflushed. you must enter a cost center here. you have defined the transaction type for the withdrawal to cost center yourself. available in the storage location.Procurement and Withdrawal to Cost Center: 2) Procurement Replenishment is triggered Empty Supply source procures the kanban Full Posts material directly to cost center © SAP AG 1999 n n Scope of function: Procurement to cost center: You can consume the material directly to cost center. (C) SAP AG LO235 7-7 . The advantage of this procedure is that the posting effort is minimized. With procurement to cost center via scheduling agreement or contract you do not have to enter a cost center on this tab strip. In this case the system posts the material to cost center on setting a kanban to FULL. Prerequisites: •You have provided your material in the material master with the bulk material indicator. as the scheduling agreement or contract is already assigned to an account. • You have entered the cost center in the control cycle on the tab strip (tab page) Sequential control. however. With all other types of replenishment. If applicable.

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 can use this process for all replenishment strategies (external procurement. In this process you receive a kanban call from your customer. Now you have the option of delivering a kanban directly to your customer via an SD scheduling agreement. • 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.KANBAN with SD Delivery (1) Kanban call from customer sets status to EMPTY and triggers replenishment Empty Supply source procures the kanban In Use Posts goods issue at delivery Full Posts goods receipt to storage location (which in this case acts as a GI storage location) and creates delivery © SAP AG 1999 n n Use: Usually you supply your own production via KANBAN. • You have created a replenishment strategy in Customizing for KANBAN that plans the process via KANBAN with SD. and then you deliver it to your customer. First of all you procure the desired material via KANBAN from your goods issue storage location for example. in-house production and stock transfer). (C) SAP AG LO235 7-8 .

the system posts the goods issue. Starting from the main KANBAN menu. Save your entries. in this case. which you have entered in your control cycle and which serves.KANBAN with SD Delivery (2) Alternatives (setting in Customizing) EDI / IDOC Paper Kanban card Determine SD sched. external procurement. GI manual' in the field Kanban with SD (in Customizing for KANBAN for the replenishment strategies). In this way the usual KANBAN process begins and the requested quantity is procured. select Control → Kanban signal → Kanban call and enter either the scheduling agreement number or determine the scheduling agreement with the search criteria.at FULL. agrmt Determine control cycle GI Kanban to IN USE Delivery Delivery Kanban to IN USE Kanban to EMPTY Kanban to FULL Kanban to FULL Procurement: In-house production. 3. then the system does not create the delivery until the kanban is IN USE.at IN USE' in the field Kanban with SD (in Customizing for KANBAN in the replenishment strategies). 5. then the system creates a delivery when a kanban is set to FULL. The goods issue must be posted manually.You receive a KANBAN call from the customer (by fax for example). 6. b) If you have selected the entry 'Delivery when status at IN USE. 4. a) If you have selected the entry 'Delivery when stat. If you receive the message via EDI. stock transfer © SAP AG 1999 n Activities: 1. GI when stat. 7. then the system automatically determines the scheduling agreement and processes the requested quantity. (C) SAP AG LO235 7-9 . The system sets the kanban to EMPTY. You set the kanban to FULL as soon as the kanban quantity has been procured. enter the requested quantity. as a goods issue warehouse. The system posts the kanban quantity to the supply area. As soon as the kanban has status IN USE. In addition. depending on the replenishment strategy. 2.

setting the container to FULL © SAP AG 1999 n n n You usually post the goods receipt and set the kanban status to FULL together. Ÿ If the goods receipt posting is automatically linked to the backflush (this is always the case in repetitive manufacturing). you can define that the goods receipt posting and the status change (kanban to FULL) are to be carried out independently of each other.goods receipt posting .Separate Goods Receipt Empty Supply source / central goods receipt posts quantities in Inventory Management Full GR Demand source sets the kanban status The following are carried out separately: . for example. Ÿ If you use planned orders. 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. However. This is particularly useful in the following situations: Ÿ If the goods receipt for externally procured materials is posted in a central warehouse.if a goods receipt is made for the kanban material. manual KANBAN. you can separate the backflush which is posted by the supply source from the status change which is changed by the demand source. The other way around is also possible . you first have to post the goods receipt before the status can be set to EMPTY again. Here. then the status is automatically set to FULL. in the control cycle. (C) SAP AG LO235 7-10 . and scheduling agreement schedule lines.

The demand source sets the kanban to EMPTY. The independent supply source thus determines the time of replenishment itself. 2. However. Ÿ A vendor delivers periodically and wants to collect all the new material requests at the time of delivery (purchase orders. it is not the demand source but the supply source which triggers replenishment. Empty 3. 1. This procedure with "independent supply source" can only be used along with the kanban board. the supply source is given an exclamation mark in the kanban board. the system first sets the status to WAIT. Ÿ If you use stock transfer with direct transfer posting. 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 system creates the replenishment element (such as a planned order) when the status is set to EMPTY. WAIT WAIT The supply source decides when to trigger replenishment (supply source sets kanban to EMPTY again). however. (C) SAP AG LO235 7-11 . replenishment must be triggered. no replenishment element is created and the system sets the kanban to status WAIT. If this limit is exceeded. that is the maximum that can accumulate (field Maximum empty). the delivering storage location controls the material posting. The demand source sets the kanban to EMPTY. However. Examples: Ÿ If you use production orders. Full Starting point © SAP AG 1999 n n n n n If you want to trigger replenishment using KANBAN. The demand source therefore did not trigger replenishment itself. In the control cycle you can maintain the maximum number of kanbans that can be empty. If you have selected this option in the control cycle (indicator independent supply source). you can also separate the status change to EMPTY and the signal for replenishment (independent supply source). When you reach the value limit. the production orders with capacity loads and reservations are not created until they are actually required. kanban cards).Independent Supply Source The kanban has status WAIT.

If the following status is entered. However. the system will not change the status. the system sets a planned status . the system searches the next mandatory or planned status in the relevant status sequence. EMPTY and FULL are always mandatory. FULL. IN USE). you can set these statuses manually. EMPTY. IN USE. 2. If you have not made any specifications. If a status sequence has not been defined. A status can be mandatory. A mandatory status must always be set. 7. 4. 5. you can manually skip these statuses. However. IN PROCESS. Signal lock in Customizing for KANBAN: You use the signal lock to determine a period (in minutes) in which the kanban signal is locked. (Here. 6. The following statuses are available: 1. ERROR. (for example in transaction Kanban signal). The system skips any optional statuses.Defined Status Sequence WAIT (initial) Empty Empty In process In transit Full ERROR In use © SAP AG 1999 n n n n n n n n A status can be forbidden (here IN PROCESS). If you re-trigger the kanban signal within this period. If a kanban signal is triggered without the next status being specified. IN TRANSIT. a planned status can be skipped and an optional signal can be used. WAIT. Here. (C) SAP AG LO235 7-12 . (Here. then the sequence EMPTY and FULL is mandatory. This guarantees that a kanban cannot be set to FULL and then inadvertently set to EMPTY again by a second signal. IN TRANSIT is also mandatory. and all others optional. 3.WAIT).

manual KANBAN is chosen as the replenishment strategy. Application: KANBAN between two operations of an order.g. transaction se37: function module EXIT_SAPLMPKB_001). Example: Order with three operations: in this case a control cycle is created per operation (three control cycles in total). a status sequence is defined. (C) SAP AG LO235 7-13 . The activity Goods receipt can also be switched off at a status change. printing a kanban and carrying out a user exit (transaction smod.Define your own Status Activities WAIT (initial) Empty Empty Post GR and print kanban In process In transit User Exit (e. enhancement MPK B0001. For the first two control cycles. All control cycles work with the same material number. On setting the kanban to FULL the goods receipt is posted for the last control cycle. for each status change you can define the activities goods receipt. for which the goods receipt is not active. post stock in transit) Full ERROR !!! © SAP AG 1999 In use n n Define your own activities. A separate supply area is created for each individual supply area. 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. Here.

Quantity Signal Full Full Full Full Full Full Start with 3 full containers 10 10 10 Full Full Full Full In Use 3 parts have been withdrawn 10 10 7 Full Full Full Full Empty 7 parts have been withdrawn 10 10 0 Full Full In Use Empty 8 parts have been withdrawn 10 2 0 In Use Empty Empty 8 0 0 4 parts have been withdrawn © SAP AG 1999 n n n n n Instead of triggering the kanban signal by setting a kanban to EMPTY. This means the system first reduces the kanbans with status IN USE. The system recognizes when the actual kanban quantity is zero and automatically sets the kanban to EMPTY.no stock postings are carried out. The stock postings are carried out when the material is backflushed. It is also possible to combine the kanban and the quantity signals. Here. you can withdraw quantities from kanbans in a control cycle using the quantity signal. The kanban is still set to FULL by setting the status to FULL. If the withdrawal quantity exceeds the actual quantity of the kanban. The actual quantity is reduced by the quantity specified in the quantity signal. Only the actual quantity of the kanban is updated when you use the quantity signal . the system automatically sets the kanban to empty. The first time a quantity is withdrawn from a container. the actual quantity of the next kanban is reduced. the system sets the status to IN USE. (C) SAP AG LO235 7-14 . and then the kanbans that have had the status FULL the longest.

replenishment is triggered for a second kanban. or Ÿ if the quantity in the first kanban falls below a defined trigger quantity. Here. Instead. The new kanban is then delivered before the current kanban is completely empty. then one-card KANBAN is useful. if for the first one is set to Ÿ IN USE Ÿ or WAIT. to have two containers available at the demand source. (C) SAP AG LO235 7-15 . you can further reduce the inventory level at the demand source .on reaching a trigger quantity Full 3. Therefore there are always at least two kanbans in the system. replenishment is not triggered if this kanban is set to EMPTY. two kanbans are active some of the time in the one-card system.for status WAIT .especially during periods when the material is not required. The new container arrives Full 4. Prerequisite: Ÿ Control cycle with several kanbans Ÿ In the control cycle maintenance you must select one of the procedures in the field Trigger replenishment. Start with a full container Trigger quantity Kanban 2. First container is completely empty © SAP AG 1999 n n n n n Use: If there is too little space available in production.for status IN USE . As a kanban is set to the status WAIT for certain periods in a control cycle. this procedure requires the use of at least two kanbans in the system.One-Card KANBAN Full 1. To be able to guarantee the replenishment of the kanban currently in use. One of the purposes of this procedure is to create a one-card KANBAN system with two kanbans in a control cycle. Therefore. A new container is requested .

the system proceeds as follows: the second kanban retains the status WAIT. The new container arrives: set to FULL Set to status EMPTY WAIT Full Full 4. (C) SAP AG LO235 7-16 . The information on whether the container is completely empty is available. The container must be set to status IN USE. When this new kanban is delivered. If a new kanban is requested. First container is completely empty (status WAIT is assigned automatically) © SAP AG 1999 n n n After the first container is reported full. it receives the status FULL. 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. Start with a full container Set to status IN USE In Use Empty Empty 2. One new container is requested In Use Full Full 3.Trigger Replenishment at Status IN USE Full Full WAIT 1. followed by status WAIT. the system automatically sets it to status WAIT and the process is repeated. As soon as the kanban from which material is still being withdrawn is set to EMPTY.

When the new kanban is delivered. you do not have to work with an additional status here. (C) SAP AG LO235 7-17 . One new container is requested (status is automatically assigned) WAIT Full Full 3. First container is completely empty © SAP AG 1999 n n n n After the first container has been reported full. The kanban from which material is still being withdrawn receives the status WAIT. the logic proceeds as follows: if a new kanban is requested. Start with a full container Set to status EMPTY WAIT Empty Empty 2. then the full kanban is set to status EMPTY. The information on whether the container is completely empty is available. Advantage: As opposed to the logic with the status IN USE. you have no possibility in the system of seeing whether a container is currently being emptied (status IN USE is not used). Disadvantage: On the other hand. The new container arrives: set to FULL WAIT Full Full 4. it receives the status FULL and the process is repeated.Trigger Replenishment at Status WAIT Full Full WAIT 1. The status change automatically changes the kanban with the status WAIT to the status EMPTY an replenishment is triggered.

In this case. (C) SAP AG LO235 7-18 . However. The withdrawal quantity can be either posted with the quantity signal.Trigger Replenishment with Trigger Quantity Full Full WAIT WAIT 1. The status change to IN USE and WAIT is triggered by the quantity signal. The new container arrives: set to FULL WAIT WAIT Full 5. or alternatively using a PDC system. the parts are withdrawn with the quantity signal. In this process. the difference here is that the kanban is set to EMPTY when the remaining quantity in the kanban reaches or exceeds the trigger quantity. First container is completely empty © SAP AG 1999 n n n n The procedure here is similar to the previous procedures. Start with a full container Quantity Signal WAIT WAIT 2. Disadvantage: Quantities must be reported individually with the quantity signal. At GR for a container. One new container is requested because the trigger point was reached Full 4. as is replenishment for the second container. The first parts are withdrawn Empty 3. the GR quantity must be greater than the trigger quantity. you must maintain the trigger quantity as well as the logic in the control cycle.

Prerequisite: You must maintain separate control cycles for event-driven KANBAN. With the transaction Event-driven KANBAN. if necessary. The kanban is set to FULL and. material provision is not based on a predefined number of kanbans or a predefined kanban quantity (as in classic KANBAN). 2. When you set the kanban to EMPTY (for example. Activities: 1. requirements for a particular material are irregular. The material is not continually provided and replenished at a supply area. using either a bar code or the kanban board). This procedure is especially useful if. Replenishment is carried out. In eventdriven KANBAN. The quantity or the number of kanbans depends on the required quantity and the specifications in the control cycle. It is only replenished when specifically requested. 4. Instead. one or more kanbans are created. (C) SAP AG LO235 7-19 . it is based on actual material consumption. A new kanban is not created again until you retrigger the kanban signal using the function. you can also use all the functions available in the KANBAN module. Eventdriven kanban. 3. a goods receipt is posted. the system deletes the kanban. but you still want to use the benefits of KANBAN to carry out replenishment with a simplified procedure.Event-Driven KANBAN Event Event Create a kanban with status EMPTY and predefined quantity Empty Empty Supply source receives request to deliver a kanban Full Full The demand source sets the kanban to EMPTY: kanban is deleted © SAP AG 1999 Material delivery: demand source sets status to FULL n n n n Use: In event-driven KANBAN. or the pull list. Printing cards when triggering replenishment. A replenishment element is created for each kanban created depending on the strategy. for example. 5.

if he or she delivers the requested containers. who is to check and refill the product stock. Using transaction SU05 you can create. To clearly identify the vendor. change and delete passwords for Internet users. •The vendor requires an Internet user master record of user type BUS1008 and a password in the SAP customer system. For more information. This type of replenishment transmission is an alternative to sending the vendor the kanban (i.Internet KANBAN Confirmation of kanbans IN PROCESS Information on EMPTY kanbans Customer with R/3 System © SAP AG 1999 Vendor with Internet n n n n Using the Internet application component KANBAN.e. In addition. the vendor can confirm planned deliveries directly over the Internet. the card) or giving the vendor kanbans for empty containers. the vendor can request information about empty containers directly over the Internet. must have authorization for access to the following data: authorization object F_LFA1_APP (vendor: application authorization) Ÿ Internet User:To begin the application component in the Internet. tailor-made for the vendor's requirements. (C) SAP AG LO235 7-20 . the following prerequisites are necessary: •The vendor must be entered in the vendor master of the SAP customer system. Prerequisites: Ÿ The user. The Internet application component is a specific view of the kanban board. enter the object type BUS1008 next to the vendor number. see the KANBAN documentation.

and then he creates the delivery due list. First of all. the vendor can see the number of containers. the vendor knows immediately whether errors have occurred on posting in the customer system or whether the posting has been successful. Confirming the kanbans to be delivered: The vendor can confirm this delivery due list to the customer. Creating the delivery list: The vendor compiles his delivery due list on the basis of this overview. To display the vendor's material number. With the confirmation. various selection criteria are offered). The system creates the delivery due list from all control cycle rows. 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. • Number of kanbans to be delivered: in this field the vendor can enter per control cycle. number of containers. all kanbans from the delivery list in the customer system are automatically provided with the status IN PROCESS. per control cycle. The system displays the delivery due list in a separate area of the screen. which have been set to EMPTY by the demand source and which he is therefore to deliver. In this way. the number of kanbans that he is to deliver. in which a delivery quantity was entered in the last field of the control cycle row. in which the kanbans posted (and if applicable those not posted) in the customer system are listed. the vendor receives an overview of all control cycles for which he has to deliver materials (to restrict the number of control cycles displayed. he notes the number of containers that he is to deliver. and quantity per container per control cycle. If the delivery due list is confirmed.Internet KANBAN Screen Print © SAP AG 1999 n n n If you use the Internet application component KANBAN. this must be maintained in the purchasing info record or in the contract or scheduling agreement. • Supply area. the vendor receives another window. • The number of empty containers per control cycle: here. (C) SAP AG LO235 7-21 .

Special Procedures: Summary l Cross-plant KANBAN l Procurement and Withdrawal to Cost Center l KANBAN with SD Delivery l Separate GR l Independent Supply Source l Define your own Status Sequences l Define your own Activites at Status Change l Quantity Signal l Alternative Procedures for Triggering Replenishment l Event-Driven KANBAN l Internet KANBAN © SAP AG 1999 (C) SAP AG LO235 7-22 .

To do this. On the tab page Flow control set the indicator Independent supply source. 1-2 Now go to the demand source view of the kanban board for supply area T-P6##. LO235 7-23 (C) SAP AG . and choose Save. 1-1 Change the control cycle for PC component T-TD## (board for modem). From the supply source view. Optional exercises (these are not a part of the standard course). you will be able to: • set the R/3 System. The PC component T-TD## (board for modem) is to be procured with direct transfer posting from the WM-based storage location 0088. 1-4 Display the transfer order for the material: Logistics → Logistics Execution → Internal Whse Processes Transfer Requirement → Stock transfer → Display transfer order → By Material Warehouse number: 001 Material: T-TD## Choose Execute. So that the supplying storage location retains control of the transfer posting. Assume that you are now the supply source. trigger replenishment for one kanban. Make sure all kanbans have status WAIT. Save the control cycle. set the kanban with status WAIT to EMPTY. __________________________________________________________ 1-3 Now go to the storage location 0088 in the supply source view of the kanban board. you work with the indicator Independent supply source in the control cycle. so that the supply source can decide about the time of replenishment itself. plant 1200 and supply area T-P6## with the following parameters.Special Procedures Exercises Unit: Special Procedures Topic: Independent supply source At the conclusion of these exercises.

1-5 Now go to the demand source view of the kanban board for supply area T-P6##. What status does the processed container have. and why? __________________________________________________________ (C) SAP AG LO235 7-24 . What status does it have now. Choose the Confirm in the background icon (next to the Save button) to confirm the transfer order.Position the cursor on the transfer order. and why? __________________________________________________________ Set the FULL container to EMPTY.

(C) SAP AG LO235 7-25 .

In order for the recipient to recognize that the goods requested are already on their way. using the status sequence. a status sequence should be used. To guarantee this. 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 7-26 . the status IN TRANSIT should be used. The PC component T-TB## (casing for modem) is to be procured with stock transfer purchase orders from plant 1000. that prescribes the use of this status.Special Procedures Exercises Unit: Special Procedures Topic: Status Sequence At the conclusion of these exercises. you will be able to: • Adjust the kanban process to special requirements.

2-3 Now go to the demand source view of the kanban board for supply area T-P6##. 2-3-1 In the kanban board. Why is it not possible to set the kanban to FULL? ______________________________________________________ 2-4 Plant 1000 now delivers the goods.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##: Number of kanbans: 3 Quantity per kanban: 50 External procurement: 0003 (stock transfer purchase order) Purchasing organization: 1000 Issuing plant: 1000 On the tab page Flow control choose: Status sequence: TRNS Save the control cycle. (C) SAP AG LO235 7-27 . 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.

2-5 Now carry out a transfer posting in Inventory Management from supplying plant 1000 to the stock in transit of the receiving plant. This guarantees that a kanban cannot be set to EMPTY and then inadvertently set to FULL or IN TRANSIT again by a second signal. set all empty containers to IN TRANSIT. Menu path: Logistic → Materials Management → Inventory Management Goods movement → Transfer Posting Transfer posting → Create with reference → To purchase order (C) SAP AG LO235 7-28 . If you cannot set the status IN TRANSIT.2-4-1 Go to the supply source view of the kanban board: Menu path: Logistics → Production → KANBAN Control → Kanban Board → Supply Source View Select the Supplying plant and choose the following entry: 1000 Choose Enter. 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. a signal locking time is maintained in Customizing for KANBAN under Replenishment strategies. In the kanban board. Note: The signal locking time determines a period in which the kanban signal is blocked. the system will not change the status. If you re-trigger the kanban signal within this period.

Choose Enter. assume that the kanban with status IN TRANSIT has just been delivered. Enter 0001 in the Storage location field. Now go to the demand source view of the kanban board for supply area T-P6##. Choose Copy + Detail.In the following dialog box choose: Movement type: 351 Plant: 1000 In the field Purchase order. 2-6 Now. You deliver to plant 1000 from plant 0001. Make ure you change the plant back to 1200 if 1000 is set as default. enter the number of the stock transfer purchase order noted above. and the item number of the purchase order. Set the kanban with the status IN TRANSIT to FULL (C) SAP AG LO235 7-29 . Enter. Save the transfer posting.

Instead of setting the kanban to EMPTY with the kanban signal. individual quantities should be posted with the quantity signal. a second kanban should be procured. The PC component T-B9## (modem) is to be procured with kanban production orders. 3-2-2 You can carry out the confirmation of the production order later. plant 1200 and supply area T-P1## with the following parameters: Number of kanbans: 2 Quantity per kanban: 10 In-house production: 0003 (production order) The material is produced in the area of person responsible L6. you will be able to: • Post individual quantities • Use the KANBAN process control to trigger replenishment for a trigger quantity (before the kanban is set to EMPTY). On the tab page Flow control maintain the following: Trigger replenishment: 3 (at trigger quantity) Trigger quantity: 3 Save the control cycle. Optional exercises (these are not a part of the standard course).Exercises Unit: Special Procedures Topic: Quantity signal and triggering replenishment with trigger quantity At the conclusion of these exercises. set one container for material T-B9## to EMPTY. Whenever the quantity in a kanban reaches the trigger quantity of 3 pieces. Now set the kanban to FULL. 3-1 Create a control cycle for PC assembly T-B9## (modem). 3-2-1 In the kanban board. (C) SAP AG LO235 7-30 . 3-2 Now go to the demand source view of the kanban board for supply area T-P1##.

Repeat the quantity signal again with a withdrawal quantity of 3 pieces and control 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. Monitor the result in a second session in the kanban board.3-3 Now post individual quantities with the quantity signal: 3-3-1 Menu path: Logistics → Production → KANBAN Control → Kanban signal → Quantity signal Material: T-B9## Plant: 1200 Supply area: T-P1## Withdrawal quantity: 4 Save. Which status change has taken place during the individual posting operations in the kanban board? ______________________________________________________ (C) SAP AG LO235 7-31 .

Special Procedures: Solutions Unit: Special Procedures Topic: Independent Supply Source (C) SAP AG LO235 7-32 .

1-1 1-2 1-3 1-4 1-5 It has the status WAIT. (C) SAP AG LO235 7-33 .

(C) SAP AG LO235 7-34 ..

(C) SAP AG LO235 7-35 .

status 4 (IN TRANSIT) and status 5 (FULL) are mandatory statuses. it must be set to IN TRANSIT. 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. 2-4 2-5 2-6 (C) SAP AG LO235 7-36 . 2-3-2 As according to the status sequence.Special Procedures Solutions Unit: Special Procedures Topic: Status Sequence 2-1 Status 2 (EMPTY). before a kanban is set to status FULL.

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.Solutions Unit: Special Procedures 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. it is set to status EMPTY. (C) SAP AG LO235 7-37 . If the trigger quantity is reached. Kanbans that are already being used are set to the status IN USE.

reversals © SAP AG 1999 (C) SAP AG LO235 8-1 . change replenishment element.Error Processing: Contents l l l Kanban Board Error Display Kanban Correction: Repeat status change. reset status of your choice.

you will be able to: l Obtain an overview of any errors that may have occurred in KANBAN production control. and how to analyze them.Error Processing: Unit Objectives At the conclusion of this unit. l © SAP AG 1999 (C) SAP AG LO235 8-2 . Correct these errors from the kanban view.

Overview Diagram 8 1 1 Introduction 6 6 Kanban Calculation 2 2 KANBAN Overview 7 7 Special Procedures 3 3 Master Data 8 Error Processing 9 9 4 4 General Procedure Evaluations 5 Replenishment Strategies 5 © SAP AG 1999 (C) SAP AG LO235 8-3 .

Error Processing: Business Scenario l Several errors have occurred in the KANBAN procedure l You now have to analyze and correct these errors. © SAP AG 1999 (C) SAP AG LO235 8-4 .

The user can repeat this action at any time. you define in which error messages the kanban retains its status. In all other cases. it is a good idea to set the error status as the user has to complete missing data. You cannot process the kanban again until you have carried out the kanban correction. the kanban retains its status. Please read the corresponding Customizing documentation. that does not change the status of the kanban. Prerequisite: In Customizing for KANBAN under Status -> Define error processing in status change. In other cases. the kanban is always set to the status ERROR. an error message is sufficient. which requires corresponding authorization. In many cases. for example if the data is only temporarily locked by another user. the system sets the kanban status to ERROR. for example if there is not a valid cost collector for the backflush of a run schedule quantity. (C) SAP AG LO235 8-5 . when a status change is incorrect. You can define in which cases the system issues an error message.Error Detection and Analysis l Display of containers with errors in the kanban board n n n Specifies the status change that led to the error Date / time of the last status change Error message and long text explaining error message l Display of errors in the error display n n n Errors displayed even if container no longer at error status Errors displayed for specific demand sources Errors displayed for specific replenishment strategies © SAP AG 1999 n As a rule.

Kanban Correction l Repeat status change n n Set to status EMPTY Set to status FULL always with the relevant functionality l Reset any status without any additional functionality l Change the replenishment element l Reversal © SAP AG 1999 (C) SAP AG LO235 8-6 .

• If. • The actions linked to the status change are reversed. (C) SAP AG LO235 8-7 . In the following cases. a reversal is not possible: • If you have already processed a kanban in the kanban correction. Activities: In order to carry out the reversal. planned orders and schedule lines are deleted. the relevant kanban is set to status WAIT. reservations and production orders are flagged with a deletion indicator. production order.Reversing a Kanban Signal Reversal Reverse kanban signal Reset status and activity Delete Empty Planned order Production order Purchase order WAIT WAIT © SAP AG 1999 n n n Use: In the case of a posting error you can reverse the last kanban signal (for example status to EMPTY or status to FULL). on the other hand. you cannot reverse this kanban a second time. • If a kanban has already been reversed. you delete the replenishment elements for a kanban (planned order. This includes the following actions: • The current container status is reset to the previous status. press the button Reversal in the kanban correction. The document from the goods receipt is reversed and so on). (That is. purchase order) or give it the deletion indicator. purchase orders. then you can no longer carry out a reversal.

reversals © SAP AG 1999 (C) SAP AG LO235 8-8 . change replenishment element. reset status of your choice.Error Processing: Summary l Kanban Board l Error Display l Kanban Correction: Repeat status change.

Note: It is possible that no errors will exist if you did not do the KANBAN and Repetitive Manufacturing exercise. To do this. The errors in the KANBAN process have to be analyzed and corrected. 1-1 Display all errors that occurred in plant 1200. you will be able to: • • gain an overview of the errors that have occurred in the KANBAN process.Error Processing Exercises Unit: Error Processing (Optional Exercises) At the conclusion of these exercises. 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’). carry out the kanban correction for the kanban with the error for material TB7##: 1-2-1 To do this. 1-2-2 Now branch from the error display to the kanban correction. place your cursor on the relevant error message for material TB7## and choose Error message long text. In the kanban correction. and analyze the errors. because a function linked with a status change could not be carried out. follow the menu path in the KANBAN menu to the error display: Evaluations → Error display Plant: 1200 Material: T-B7## Choose Execute. Confirm the long text with Enter. To do this. If you still want to do this exercise. In these exercises at least one container was set to the ERROR status. place the cursor on the faulty kanban and choose (C) SAP AG LO235 8-9 . place your cursor on the relevant error message for material TB7## and choose Kanban correction to process the faulty container. correct these errors from the kanban view. 1-2 Now.

(C) SAP AG LO235 8-10 . Confirm the following dialog box with Enter.Select. To set the kanban to FULL and to carry out the goods receipt posting. select Kanban correction.

Error Processing Solutions Unit: Error Processing Topic: 1-1 1-2 1-2-1 1-2-2 (C) SAP AG LO235 8-11 .

Evaluations: Contents l l l Control Cycle Analysis Using the Kanban Board Reporting Errors LIS Standard Analysis © SAP AG 1999 (C) SAP AG LO235 9-1 .

Evaluations: Unit Objectives At the conclusion of this unit. you will be able to: l l l Evaluate the current kanban situation Evaluate any errors that may have occurred in the KANBAN process Evaluate historical data in the KANBAN process © SAP AG 1999 (C) SAP AG LO235 9-2 .

Overview Diagram 9 1 1 Introduction 6 6 Kanban Calculation 2 2 KANBAN Overview 7 7 Special Procedures 3 3 Master Data 8 8 Error Processing 9 4 4 General Procedure Evaluations 5 Replenishment Strategies 5 © SAP AG 1999 (C) SAP AG LO235 9-3 .

Evaluations: Business Scenario l l l You already use the KANBAN process in your company Now you want to evaluate the current kanban situation You also want to evaluate historical data in the KANBAN process © SAP AG 1999 (C) SAP AG LO235 9-4 .

Options Available for Evaluations l Control Cycle Analysis Using the Kanban Board n n n Demand source view Supply source view Plant overview l Reporting errors (error display) n n Detailed information on errors Branch to correction transaction (kanban correction) l LIS Standard Analysis n n n n Diffent drill-down levels Number of status changes Times for individual statuses Comparison of target / actual quantities © SAP AG 1999 (C) SAP AG LO235 9-5 .

LIS: Key Figures Wait Transport In transit ERROR Full Full In use !!! Replenishment In process ERROR WAIT (initial) Fill Empty Trigger © SAP AG 1999 (C) SAP AG LO235 9-6 .

Evaluations: Summary l Control Cycle Analysis Using the Kanban Board l Reporting Errors l LIS Standard Analysis © SAP AG 1999 (C) SAP AG LO235 9-7 .

Appendix l This section contains additional material. that can be used for reference purposes. © SAP AG 1999 (C) SAP AG LO235 10-1 . it is possible that this material will not be discussed in the course. l Therefore. l This material is not a part of the standard course.

Example of a Kanban Card © SAP AG 1999 (C) SAP AG LO235 10-2 .