MP220 – Kanban Production

Classroom Logistics

• Introductions
• Facility orientation
– Location of restrooms
– Time Schedules (Breaks)
– Coffee station
– Facilities
• Student Expectations
• Other administrative matters
• Any questions?
 Agenda

• Kanban Production Overview

• Maintain Kanban
• Backflush and Error Processing
• Summary
 Course Objectives

Upon completion of this course, you

will be able to:
• Explain the Kanban process flow
• Manage Kanban control cycles
• Effectively use the Kanban control
board
• Maintain a Kanban area
• Display and correct Kanban errors
 Topic 1 Kanban Production Overview

• Kanban Production Overview

• Maintain Kanban
• Backflush and Error Processing
• Summary
 Topic Objectives

Upon completion of this topic, you

will be able to:
• Explain the principles of Kanban
• Describe the Kanban integration
with SAP
• Explain the inputs to the Kanban
process
 What is Kanban?

Kanban: A method of Just-in-Time

production that uses standard containers
or lot sizes with a single card attached to
each. It is a pull system in which work
centers signal with a card that they wish
to withdraw parts from feeding
operations or suppliers. The Japanese
word kanban, loosely translated, means
card, billboard, or sign.

(Source: APICS 10th Edition Dictionary)

 Kanban Process Overview

• KANBAN process
– The KANBAN method for controlling production and material flow is based on the actual stock
quantity in production.
– Material that is required on a regular basis is continually provided in small quantities directly
to the production line.
– Replenishment of the production of a material is only triggered when a higher production level
actually requires the material.
– This replenishment is triggered directly in production using previously maintained master
data.
 Kanban Replenishment

Production
Production process
process

Ful
l Replenishment
is triggered
Empty automatically
Supply
Supply • Prod. order
Area
Area Status to EMPTY • Purch. order ...
source
Supply

Ext. procurement Stock transfer In-house production

 Kanban Replenishment (cont’d)

Production
Production process

l
Ful
Goods receipt
posted
Supply
Supply automatically
Area
Area Status to FULL
Full

Full Kanban
source
Supply

Ext. procurement Stock transfer In-house production

 Benefits Of Using Kanban

Benefits

KANBAN provides the benefits of Pull Manufacturing

Classical Push Manufacturing
 Make to plan
 Longer lead time
 Higher WIP Inventory
 Less sensitive to quality
 Less responsive to change
in demand
KANBAN Pull Manufacturing
 Order event driven
 Lower stock level
 Shorter lead time
 Rapid response to change in
demand / quality issues
 Review Questions

1. What is Kanban?

2. Name at least three benefits of

using the Kanban system.

3. Does SAP support Kanban material

movements?
Questions
• This slide intentionally left blank
 Topic 2 Maintain Kanban

• Kanban Production Overview

• Maintain Kanban
• Backflush and Error Processing
• Summary
 Topic Objectives

Upon completion of this topic, you

will be able to:
• Explain the Kanban process flow
• Create, change, and display
Kanban control cycle
• Manage the Kanban control board
• Manage Kanban supply areas
 Kanban Control Process Flow

Replenish Materials

Manufacturing

Pick list is
printed daily in Pick List
stock room / A
warehouse

Use Supply Is Review material

No from work the material No
Start
Review Pick Backorder Yes availability at
List Processing center supplied by work center
? location? Kanban? location

Yes

No

Yes
Backorder
Processing
B

Inventory Control
Define Activities
and Activity Rates

Review
Transfer
A Pick List
Inventory C

Pick
Material
Process
 Kanban Control Process Flow (cont’d)

Replenish Materials

Manufacturing

In-house
Does a Is material Is Kanban
control
Yes available in
No Set container
material to be
Yes procurement
B cycle all Kanban
status to
manufactured
proposal is
“Empty” created
exist? containers? in-house?
automatically
No

No
Yes

Remove
Maintain control material from
cycle for
material
containers as C
required

Inventory Control

Replenishment
Transfer or Transfer
signal sent to Transfer
purchase
inventory Inventory D
material?
control
Purchase

Purchasing

Replenishment
Procure
signal sent to
Material D
purchasing
 Kanban Control Process Flow (cont’d)

Replenish Materials

Manufacturing
D C

R eceive R emo ve
M an ufacture material F ill K an b an Set con tain ers material fro m
con tain ers co n tainers as En d
Pro d u ct at work statu s to full
center req u ired
 Kanban Control Cycles

Demand Source Supply Source

Empty Full
 Kanban Control Cycles

# of
Containers
Demand Quantity of
Source Material

Maximum Supply
Control Cycle
Empty Source
Information

Person Kanban
Responsible Printout

Replenishment
 Calculation of the Control Cycle

Number of Containers

~ ~ ~ BASED ON ~ ~ ~

Average RLT for the Container

Consumption Container Quantity

C
o
n
s
u
m
pt
io
n

Time
 Supply Areas

Company

Plant

Storage
Location
Responsible
Person

Supply Supply
Area Area
 Replenishment Strategies

Control
Cycle

In-house External Stock Transfer

production Procurement
Replenishment Strategies
 Kanban Control Cycle For In-house
Production

• The control cycle defines the relationship between the

demand source and the supply source.
• The control cycle for in-house production contains
information regarding how to manufacture the material
and:
– what production version to use
– the number of Kanban containers
– How the containers are processed
– the quantity of material in each container
• The control cycle links the Kanban container to the
storage location it is managed in via the supply area.
 Demonstration & Exercise PK01

• Create Kanban Control Cycle For In-house Production

• Create a kanban control cycle for a material
• Use transaction code PK01 to complete this exercise
• Use the information in the exercise packet
 Demonstration & Exercise PK01

• Create Control Cycle for Material Transfer

• Create a kanban control cycle for a material transfer
• Use transaction code PK01 to complete this exercise
• Use the information in the exercise packet
 Demonstration & Exercise PK01

• Create Control Cycle For External Procurement

• Create a kanban control cycle for a material for external procurement
• Use transaction code PK01 to complete this exercise
• Use the information in the exercise packet
 Demonstration & Exercise PK02

• Change Kanban Control Cycle

• Create a kanban control cycle for a material
• Use transaction code PK02 to complete this exercise
• Use the information in the exercise packet
 Demonstration & Exercise PK03

• Display the Kanban Control Cycle

• Use transaction code PK03 to complete this exercise
• Use the information in the exercise packet
 Evaluation Control Cycle - Kanban

• A transaction (PK18) used to

evaluate the control cycles in detail.
• Changes, as well as viewing, can all
be done from one transaction.
• The current stock/requirements list
and stock overview can also be
viewed using this transaction.

• NOTE: This transaction is currently

out-of-scope for Gen 3.
 Kanban Control Board (Demand Source)

• The demand source Kanban control board (PK13N)

manages replenishment of materials on the production
floor that are designated for supply via Kanban processes.
• The user views each material, a graphical representation
of each Kanban container and its current status (empty or
full).
• When the last material in a container is consumed, the
user changes the status of the container from full to
empty, triggering replenishment to occur by in-house
production, external procurement or stock transfer from
another storage location.
• The supply source uses the kanban board primarily for
display purposes. Change Kanban container status with
supply source control board also (PK12N). NOTE: This
transaction is currently out-of-scope for Gen 3.
 Demonstration & Exercise PK13N

• Change Kanban Container Status With Demand Source Control Board

• Use transaction code PK13N to complete this exercise
• Use the information in the exercise packet
 Demonstration & Exercise PK12N

• Change Kanban Container Status With Supply Source Control Board

• Use transaction code PK12N to complete this exercise
• Use the information in the exercise packet

• NOTE: This transaction is currently out-of-scope for Gen 3.

 Kanban Signal

• Kanban signals can be created manually (PK21), by

quantity signal (PK22) or by bar code reader/number
(PKBC).
• The Kanban Signal is used to change the status of a
Kanban and to carry out the activities linked to that
status change.
• In general, it is sufficient to work with the two statuses
EMPTY and FULL. When a Kanban is empty, the
system receives the necessary information on the control
cycle and replenishment, and automatically makes the
postings required to trigger replenishment. When a
Kanban is full, the system automatically posts the goods
receipt for the replenishment (depending on the
settings).
• NOTE: Transactions PK21, PK22 and PKBC are
currently out-of-scope for Gen 3.
 Kanban Supply Area

• A supply area is an interim storage

location on the shop floor which is used
to provide material directly to the
production line or the work center.
• The supply area can be a shelving
area, an area marked off on the
ground, or special boxes, etc.
• The supply area is defined in
customizing and is assigned the
following objects:
– plant
– storage location
– person responsible
 Demonstration PK05

• Maintain Supply Area

• This is an Instructor Demonstration
• Maintain a supply area in a plant
• Use transaction code PK05 to
complete this exercise
• Use the information in the exercise
packet
 Demonstration & Exercise PK06

• Display Supply Area

• Display a supply area in a plant
• Use transaction code PK06 to complete this exercise
• Use the information in the exercise packet
 Kanban Plant Overview

• The system can be set to display an

overview of the workflow at the various
control cycles.
• In the SAP error display screen, the
user can view the following information:
– The user can display the control cycle
data by double clicking the control cycle
line.
– The current stock/requirements list can
be displayed from this transaction.
– The stock overview can alsobe
displayed.
• Transaction code used is PK11.
 Demonstration & Exercise PK11

• Display Kanban Plant Overview

• Use transaction code PK11 to complete this exercise
• Use the information in the exercise packet
 Review Questions

1. What does the control cycle link in

SAP?

2. What is the demand source

Kanban control board used for?

3. What are the three objects that are

assigned to the supply area?
Questions
 Topic 3 Backflush and Error Processing

• Kanban Production Overview

• Maintain Kanban
• Backflush and Error Processing
• Summary
 Topic Objectives

Upon completion of this topic, you

will be able to:
• Explain kanban backflush and error
processing
• Display the kanban error log
• Correct kanban errors
• Print kanban inventory lists
 Kanban Backflush (Repetitive Mfg. Only)

• This is a special backflush transaction with reference to a

production cost collector. In the backflush transaction, the
system automatically posts the goods receipt for the finished
product and backflushes the goods issue for the components.
– Note: This transaction is only used for sites performing Repetitive
Manufacturing, so its use at CUSTOMER will be limited.
• Transaction code used is PK41.
 Kanban Error Processing Display

• The purpose of the Kanban Processing error display is to show the

various errors that exist and allow the user to delete the corresponding
error messages.
• In the SAP error display screen, the user can view the following
information:
– If the user want to view the error message, position the cursor on the error line
and select Err.mssge:long text.
– If the user want information on the Kanban, position the cursor on the error line
and select Kanban info.
– If the user want information on the control cycle, position the cursor on the error
line and select Displ. control cycle.
– If the user want to make a correction to the Kanban, position the cursor on the
error line and select Kanban correction.
 Demonstration PK50

• Kanban Processing: Error Display

• This is an Instructor Demonstration
only
• Use transaction code PK50 to
complete this exercise
• Use the information in the exercise
packet
 Kanban Calculation Error Log

• This transaction (PK52) is

used to show the various
existing Kanban errors.
• It also enables a user to
correct the error and reset the
status of the container.
• This process is only
necessary if a Kanban
container has a status of
“Error”.
 Demonstration & Exercise PK52

• Display the Kanban Calculation Error Log

• View the error messages only (do not correct errors)
• Use transaction code PK52 to complete this exercise
• Use the information in the exercise packet
 Correct Kanban Errors

• Use the Kanban correction

functions to correct the status of
incorrect Kanbans (status 9)
• Reset the status to one that is valid
for processing once the user has
corrected the error.
• First correct the error in
Customizing or in the master data.
• Use transaction code PK31.
 Demonstration & Exercise PK31

• Correct Kanban Errors

• Use transaction code PK31 to
complete this exercise
• Use the information in the exercise
packet
 Create Change Proposal for Kanban

• This features allows SAP to automatically calculate the number of kanban

containers or kanban quantity per container based on MRP forecast.
• This feature can only be used if calculation type is defined in control cycle for
the kanban.
• A calculation type of “1” will calculate number of kanban containers used.
• A calculation type of “2” will calculate quantity per container.
 Demonstration PK07

• Create change proposal for kanban

control cycles
• This is an Instructor Demonstration
only
• Use transaction code PK07 to
complete this exercise
• Use the information in the exercise
packet
 Demonstration PK08

• Check Results of Kanban

Calculation
• This is an Instructor Demonstration
only
• Use transaction code PK08 to
complete this exercise
• Use the information in the exercise
packet
 Print Kanban Inventory List

• This feature can be used to

simultaneously print Kanban
inventory lists for several control
cycles.
• Choose the selection criteria for
demand source, supply source,
material number, or
replenishment strategy, as
required.
• Use transaction code PK17.
 Demonstration & Exercise PK17

• Print Kanban Inventory List

• Print an inventory list for a supply area in a plant
• Use transaction code PK17 to complete this exercise
• Use the information in the exercise packet
 Review Questions

• What is the purpose of the Kanban

processing error display?

• What is the transaction code used

to print the Kanban Inventory List?
Questions
 Topic 4 Summary

• Kanban Production Overview

• Maintain Kanban
• Backflush and Error Processing
• Summary
 The Home Stretch

• Summary
• Next Steps
• If you Need Help . . .
• Questions
• Student Validation
• Class Evaluation
 Course Summary

At a high level you should now be

able to:
• Explain the Kanban process flow
• Manage Kanban control cycles
• Effectively use the Kanban control
board
• Maintain a Kanban area
• Display and correct Kanban errors
Next Steps

• Structured practice sessions in

sandbox
• Work with supervisor and / or super
user
• Read and review the training
materials
 If you need help . . .

• First: Look at Quick Reference Guide

• Second: Ask an on-site supervisor and/or super user
• Third: Contact the Help Desk
 Course Evaluation

• Help us continually improve

• Please complete the evaluation for this training session