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 of the header item (assembly). If Backflush indicator is set for kanban material in the Routing of the assembly, then this material will be backflushed in all the production orders for that assembly in the relevant plant (Material issue through Pick List not required against production order). Backflush Materials do not appear in the Pick List. 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 by default. This indicator shall be removed in MRP4 view of material master. Removing this indicator will enable MRP run for generating PR from dependent and independent requirements to enable procurement from vendors into the main stores. Process steps: 1. 2. 3. 4. 5. 6. Create supply area for Kanban storage location (KN01). TC: PK05 Extend the material to Kanban storage location. TC: MMSC Make the necessary changes in the material master as explained above. Create Kanban control cycle. TC:PKMC Print the barcode. TC:PK17 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).

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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 vendors 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. Storage location exclusion is automatic for storage location KN01. If receiving storage location is other than KN01, Indicator for storage location in MRP4 should be filled with 1. Process steps: 1. 2. 3. 4. 5. E-mail address in Vendor Master is mandatory Create supply area for Main stores. TC: PK05 If required, extend the material to main storage location. TC: MMSC Make the necessary changes in the material master as explained above. Create scheduling agreement. Put kanban indicator (X) in the additional data of item. 6. Create Kanban control cycle. TC:PKMC 7. Print the barcode. TC:PK17 8. 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. 9. View the demand source view. TC: PK13n 10. When the material is received at Gate, perform goods receipt into blocked stock (movement type 103). TC: MIGO 11. Once the material reaches Main stores scan the barcode to FULL. TC: PKBC (At the background GR with 105 movement will happen).

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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 of the header item (assembly). If Backflush indicator is set for kanban material in the Routing of the assembly, then this material will be backflushed in all the production orders for that assembly in the relevant plant (Material issue through Pick List not required against production order). Backflush Materials do not appear in the Pick List. 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. Storage location exclusion is automatic for storage location KN01. If receiving storage location is other than KN01, Indicator for storage location in MRP4 should be filled with 1. Material received from vendor is directly posted to unrestricted stock. Inspection at vendors place or vendors process control to ensure rejection free material. Inspection set up in Material master should be inactive. Process steps: 1. 2. 3. 4. 5. E-mail address in Vendor Master is mandatory Create supply area for kanban stores (KN01). TC: PK05 Extend the material to Kanban storage location. TC: MMSC Make the necessary changes in the material master as explained above. Create scheduling agreement. Put kanban indicator (X) in the additional data of item. 6. Create Kanban control cycle. TC:PKMC 7. Print the barcode. TC:PK17 8. 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. 9. View the demand source view. TC: PK13n 10. When the material is received at Gate, perform goods receipt into blocked stock (movement type 103). TC: MIGO 11. Once the material reaches shop, scan the barcode to FULL. TC: PKBC (At the background GR with 105 movement will happen).

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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 of the header item (assembly). If Backflush indicator is set for kanban material in the Routing of the assembly, then this material will be backflushed in all the production orders for that assembly in the relevant plant (Material issue through Pick List not required against production order). Backflush Materials do not appear in the Pick List. 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. All components for the assembly should be planned on Consumption based planning (VB) or they should also be kanban item.(MRP type of child item should NOT be PD).

Process steps: 1. 2. 3. 4. 5. 6. Create supply area for Kanban store (KN01). TC: PK05 Extend the material to Kanban storage location. TC: MMSC Make the necessary changes in the material master as explained above. Create Kanban control cycle. TC:PKMC Print the barcode. TC:PK17 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).

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IMPORTANT POINTS TO NOTE Schedule Agreement line items shall be checked for Tax codes, Excise Conditions as a one time activity. Required corrections should be carried out when you get error message that excise posting could not be carried out automatically. You should also get the excise entries posted by competent personnel. Confirmation of Production Orders is mandatory. You can do this thru Tcode CO11N or CO15. This process triggers posting consumption of kanban components thru Backflush. In case you did not have sufficient stock of any Backflush item in stock for consumption at the time of confirmation, but need to continue and make goods receipt for Production order, you must later on process goods issue of Backflush items so missed out, in Tcode COGI (select storage location KN01 and execute to get list of items for which issue is pending) and post goods issues and save. This will issue the pending components. Execute the report once again to ensure nothing is left over before TECOing the orders. Kanban Database Report is available in Tcode ZPKL. You can generate specific list based on various selection parameters available.

SAP MAIL THRU KANBAN WORKFLOW Please note that the following roles and its related Kanban mail notifications: INDMM_MM_JOB_PURCHASER_INAV (select your plant) If you have this role, copy of mail to the vendor will be received in your SAP mail box. Also, you will receive a mail alert when Schedule Agreement validity has expired either for date or quantity. INDPPPP_JOB_PRODCTN_SUPE_INAV (select your plant) When a kanban production order is generated automatically, an SAP mail will be received by you. INDMMMM_JOB_INVENTORY_CL_INAV (select your plant) If you have this role, you will receive mail notification in SAP mail box for transferring material against a kanban reservation. INDPPPP_JOB_MRP_CONTROLE_INAV (select your plant) If you have this role, a mail alert will be sent to you, when Schedule Agreement validity has expired either for date or quantity.

List of Role Authorization required for carrying out Kanban Transactions in SAP.
INDPPPP_JOB_MRP_CONTROLE_INAV INDPPPP_JOB_MST_PRD_SCHL_INAV INDPPPP_PRODUCTN_OPERATO_INAV INDPPPP_JOB_PRODCTN_SUPE_INAV INDMMMM_JOB_INVENTORY_CL_INAV (Select your plant in place of INAV) (Select your plant in place of INAV) (Select your plant in place of INAV) (Select your plant in place of INAV) (Select your plant in place of INAV)

If you have authorization for one of these roles, you will be able to transact on Kanban in SAP. Please ensure that at least one relevant authorization from the above roles is available before you start Kanban transactions in SAP.

KANBAN BUSINESS PROCESS PROCEDURE Business Process Business Process Procedure Create Supply Area (Tcode: PK05)
Sre_BPP_05_PP01_P K05_Maintain Supply Area.doc

Create Control Cycle (Tcode: PKMC)

Sre_BPP_05_PP01_P Sre_BPP_05_PP02_P KMC_Crt_Cntrl Cycle_ClassicExtPO.doc KMC_Crt Cntrl Cycle_ClassicExtSA.doc

Sre_BPP_05_PP0 _P Sre_BPP_05_PP0!_P KMC_Crt Cntrl Cycle_ClassicPrdOrd.doc KMC_Crt Cntrl CycleClassicS"Ktrn#.doc

Sre_BPP_05_PP05_P Sre_BPP_05_PP0%_P KMC_Crt Cntrl Cycle_E$entExt.doc KMC_Crt Cntrl Cycle_Source&ist.doc

Sre_BPP_05_PP0'_P KMC_Crt Cntrl Cycle_(M_S"Ktrns#er.doc

Kanban Transaction through Scanning or Manual operation. (Tcode: PKBC) Event Driven Kanban Requirement generation. (Tcode: PK23) Goods Receipt India Specific Process (Tcode: PKBC)

Sre_BPP_05_PP01_P KBC_ScanE)pty*ull.doc

Sre_BPP_05_PP01_P K2 _+enerateKan,an_E$ent-r$n.doc

./_Sre_BPP_05_PP0 1_PKBC_ScanE)pty*ull.doc

Kanban Board Demand Source view (Tcode: PK13N)

Sre_BPP_05_PP01_P K1 /_-e)andSourceKn,nBoard.doc

Kanban Board Supply Source view (Tcode: PK12N)

Sre_BPP_05_PP01_P K12/_SupplySourceKn,nBoard.doc

Kanban Evaluation (Tcode: PK18)

Sre_BPP_00_PP01_P K11_CC_Kan,an_E$al.doc

Kanban Correction (Tcode: PK50)

Sre_BPP_00_PP01_P K50_Kan,anErrorProcess2-isplay.doc

Kanban Locking & Deleting (Tcode: PKMC)

PP_PKMC_Kan,an&o c32-elete.doc