mp220 kanban production v03

MP220 – Kanban ProductionMP220 – 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


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

Replenishment Replenishment is triggeredis triggeredautomaticallyautomatically• Prod. orderProd. order• Purch. order ...Purch. order ...

SupplySupplyAreaAreaSupplySupplyAreaArea Status to EMPTY

FullFull

EmptyEmpty

Ext. procurement In-house productionStock transferSu

pp

lyS

up

ply

sou

rce

sou

rce

Su

pp

lyS

up

ply

sou

rce

sou

rce

Production process Production process Production process Production process

Goods receiptGoods receiptposted posted automaticallyautomatically

Full Kanban

Production processProduction processProduction processProduction process

SupplySupplyAreaAreaSupplySupplyAreaArea Status to FULL

FullFull

FullFull

Ext. procurement In-house productionStock transferSu

pp

lyS

up

ply

sou

rce

sou

rce

Su

pp

lyS

up

ply

sou

rce

sou

rce

Kanban Replenishment (cont’d)

Classical Push Manufacturing Make to planMake to plan Longer lead timeLonger lead time Higher WIP InventoryHigher WIP Inventory Less sensitive to qualityLess sensitive to quality Less responsive to change Less responsive to change in demandin demand

KANBAN Pull Manufacturing

Order event drivenOrder event driven Lower stock levelLower stock level Shorter lead timeShorter lead time Rapid response to change in Rapid response to change in

demand / quality issuesdemand / quality issues

Benefits

KANBAN provides the benefits of Pull ManufacturingKANBAN provides the benefits of Pull Manufacturing

Benefits Of Using Kanban

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


Topic Objectives


• 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

Define Activitiesand Activity Rates

Replenish Materials

No

Yes

Yes

No

Start

Review materialavailability atwork center

location

Pick ListPick list is

printed daily instock room /warehouse

Review PickList

TransferInventory

PickMaterialProcess

B

Supplyfrom work

centerlocation?

Isthe materialsupplied by

Kanban?

ReviewPick List

A

A C

Manufacturing

Inventory Control

UseBackorderProcessing

?

BackorderProcessing

No

Yes

Kanban Control Process Flow (cont’d)

Replenish Materials

BSet container

status to“Empty”

Does acontrolcycleexist?

Maintain controlcycle formaterial

Is materialavailable inall Kanban

containers?

C

Replenishmentsignal sent to

inventorycontrol

DTransfer orpurchasematerial?

Is Kanbanmaterial to bemanufactured

in-house?

Replenishmentsignal sent topurchasing

ProcureMaterial

In-houseprocurementproposal is

createdautomatically

TransferInventory

D

Inventory Control

Manufacturing

Purchasing

No

Yes

Removematerial fromcontainers as

required

Yes

No

Yes

No

Transfer

Purchase

Kanban Control Process Flow (cont’d)

End

C

Set containersstatus to full

Receivematerialat workcenter

D

ManufactureProduct

Manufacturing

Fill Kanbancontainers

Removematerial fromcontainers as

required

Replenish Materials

Kanban Control Cycles

Supply SourceDemand Source

Empty Full

Kanban Control Cycles

# of Containers

Quantity of Material

Demand Source

Supply Source

Replenishment

Kanban Printout

Maximum Empty

Person Responsible

Control Cycle Information

Calculation of the Control Cycle

Time

Consumption

Average Average ConsumptionConsumption

RLT for the RLT for the ContainerContainer

Container Container QuantityQuantity

~ ~ ~ BASED ON ~ ~ ~~ ~ ~ BASED ON ~ ~ ~

Number of ContainersNumber of Containers

StorageLocation

Supply Areas

Company

Plant

SupplyArea

SupplyArea

ResponsibleResponsiblePersonPerson

Replenishment Strategies

Replenishment Strategies

Control Cycle

In-house In-house productionproduction

External External ProcurementProcurement

Stock TransferStock Transfer

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


• 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


• 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


• 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


• 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


• 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.


• 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


Topic Objectives


• 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


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”.


• 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.


• Correct Kanban Errors• Use transaction code PK31 to


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.


• 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

mp220 kanban production v03

Documents

kanban containers

kanban backflush

kanban method

kanban system

kanbanbenefits kanban

kanban integration

principles of kanban

kanban supply source