Prerequisites
In this process, the storage location assigned to the supply area is not excluded from MRP.
If a material is planned and procured with MRP, you must make the following settings:
- You must maintain a valid MRP type for the material. This means, the setting "ND" (No planning) is not allowed.
- You must maintain all other control parameters required for MRP for the material.
- You must maintain a repetitive manufacturing profile (in the MRP data screen) for replenishment strategies with a cost collector (in-house production with run schedule quantities, manual KANBAN). In the SAP standard system, a profile is available that is specially intended for KANBAN, that is, using this profile, the system creates a cost collector without a run schedule header.
Features
Here, the total production quantity or the procurement quantities of a certain period are planned in the planning run and the replenishment elements are also created in the planning run. For in-house production, you can use either Repetitive Manufacturing or production orders to plan the production quantities per period.
For external procurement, all the standard replenishment elements are available. 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 preview. Actual production and material flow are controlled and triggered by setting the kanban to FULL and EMPTY. Backflushes and goods receipts are posted with no reference to the kanban. This means that you can backflush daily quantities, for example.
In this procedure, the following is valid for materials with BOMs:
- Components that are used in KANBAN materials can be planned using any one of the MRP procedures. However, the system has to be organized so that the supply source does not produce the material for the replenishment element created in MRP immediately but awaits the kanban request.
- As the system creates preview data in the procedure with MRP, it is particularly useful for replenishment with run schedule quantities (Repetitive Manufacturing) and scheduling agreement releases.
Following are the KANBAN Procedure & Settings details which are valid for both with / without MRP options to be used with KANBAN :
KANBAN PROCESSES , PROCEDURES AND PRE-REQUISITES
1. Stock transfer from Main Stores to Production Line
Basic rules and Prerequisites:
• MRP type must remain as it has been like “PD” or “VB” or any active MRP type.
• Backflush indicator is must. It can be defined in the routing or in the material master itself. If Backflush indicator is set in the material master, then the material will be backflushed through out the plant (Material issue not required against production order). However if you want the material to be backflushed only when it is used for certain products, then Backflush indicator should be set in the routing ( in the component allocation against operations).
• Confirmation should be done for each operation in the production order either individually (CO11n) or collectively (CO15). Confirmation posts goods issue of components (relevant to confirmed operation/s) to production order
• Maintain KN01 storage location in the field in Production Storage Location of MRP2 view in the material master. Back flushing will take place from this location. Field - Storage location for external procurement (EP) should be MN01 (Main Stores) in the material master.
• KN01 - Kanban Storage Location stock is excluded from MRP.
Process steps:
1. Create supply area for Kanban storage location (KN01). TC: PK05
2. Extend the material to Kanban storage location. TC: MMSC
3. Make the necessary changes in the material master as explained above.
4. Create Kanban control cycle. TC:PKMC
5. Print the barcode. TC:PK17
6. Set the kanban status to EMPTY by scanning the barcode. TC: PKBC. A material reservation will be created for stock transfer from main stores to KN01.
7. View the demand source view. TC: PK13n
8. Once the Main stores sends the material to shop floor scan the barcode to FULL. TC: PKBC (At the background stock transfer with 311 movement will happen).
2. External procurement from Vendor to Main Stores
Basic rules and Prerequisites:
• MRP type should be ‘ND’ in MRP1 view of material master.
• Availability check should be “KP” in MRP3 view of material master.
• Material received from vendor is directly posted to unrestricted stock. Inspection at vendors place or vendor’s process control to ensure rejection free material. Inspection set up in Material master should be inactive.
• Backflush is not required and Material is issued against a Pick List for Production Order.
Process steps:
1. Create supply area for Main stores. TC: PK05
2. If required, extend the material to main storage location. TC: MMSC
3. Make the necessary changes in the material master as explained above.
4. Create scheduling agreement. Put kanban indicator (X) in the additional data of item.
5. Create Kanban control cycle. TC:PKMC
6. Print the barcode. TC:PK17
7. Set the kanban status to EMPTY by scanning the barcode. TC: PKBC. A Schedule line will be generated for the supply of material to main stores.
8. View the demand source view. TC: PK13n
9. When the material is received at Gate, perform goods receipt into blocked stock (movement type 103). TC: MIGO
10. Once the material reaches Main stores scan the barcode to FULL. TC: PKBC (At the background GR with 105 movement will happen).
Read more here SAP KANBAN Implementation Considerations
3. External procurement from Vendor directly to shop
Basic rules and Prerequisites:
• MRP type should be ‘ND’ in MRP1 view of material master.
• Availability check should be “KP” in MRP3 view of material master.
• Backflush indicator is must. It can be defined in the routing or in the material master itself. If Backflush indicator is set in the material master, then the material will be backflushed through out the plant (Material issue not required against production order). However if you want the material to be backflushed only when it is used for certain products, then Backflush indicator should be set in the routing ( in the component allocation against operations).
• Confirmation should be done for each operation in the production order either individually (CO11n) or collectively (CO15). Confirmation posts goods issue of components (relevant to confirmed operation/s) to production order
• Maintain KN01 storage location in the field - production storage location of MRP2 view in the material master. Back flushing will take place from this location. Field - Storage location for external procurement should be KN01 in the material master.
• Material received from vendor is directly posted to unrestricted stock. Inspection at vendors place or vendor’s process control to ensure rejection free material. Inspection set up in Material master should be inactive.
Process steps:
1. Create supply area for kanban stores (KN01). TC: PK05
2. Extend the material to Kanban storage location. TC: MMSC
3. Make the necessary changes in the material master as explained above.
4. Create scheduling agreement. Put kanban indicator (X) in the additional data of item.
5. Create Kanban control cycle. TC:PKMC
6. Print the barcode. TC:PK17
7. Set the kanban status to EMPTY by scanning the barcode. TC: PKBC. A Schedule line will be generated for the supply of material to kanban store.
8. View the demand source view. TC: PK13n
9. When the material is received at Gate, perform goods receipt into blocked stock (movement type 103). TC: MIGO
10. Once the material reaches shop, scan the barcode to FULL. TC: PKBC (At the background GR with 105 movement will happen).
4. In house production (Between one sub-assembly line to Main assembly)
Basic rules and Prerequisites:
• MRP type should be ‘ND’ in MRP1 view of material master.
• Availability check should be “KP” in MRP3 view of material master.
• Backflush indicator is must. It can be defined in the routing or in the material master itself. If Backflush indicator is set in the material master, then the material will be backflushed through out the plant (Material issue not required against production order). However if you want the material to be backflushed only when it is used for certain products, then Backflush indicator should be set in the routing ( in the component allocation against operations).
• Confirmation should be done for each operation in the production order either individually (CO11n) or collectively (CO15). Confirmation posts goods issue of components (relevant to confirmed operation/s) to production order
• Maintain KN01 storage location in the field - production storage location of MRP2 view in the material master.
• Maintain ‘Kanban Production schedule profile’ in Work scheduling view of the material master.
• Material should have a valid BOM & Routing.
Process steps:
1. Create supply area for Kanban store (KN01). TC: PK05
2. Extend the material to Kanban storage location. TC: MMSC
3. Make the necessary changes in the material master as explained above.
4. Create Kanban control cycle. TC:PKMC
5. Print the barcode. TC:PK17
6. Set the kanban status to EMPTY by scanning the barcode. TC: PKBC. A production order will be generated (with release status).
7. View the demand source view. TC: PK13n
8. Confirm the operations. TC:CO11n / CO15
9. After the confirmation of last operation, scan the barcode to FULL. TC: PKBC (At the background GR with 101 movement will happen).
Since you want to use KANBAN WITH MRP so you need to set any active MRP Type i.e. PD etc. instead of ND ( No Planning) in above procedure.