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Kanban Process in S/4 HANA 1709

Kanban Process in S/4 HANA 1709

KANBAN is one of the easiest & simple method for controlling Production and material flow, based on the actual stock quantity required in production. Material that is required on a regular basis is continually provided in small quantities in production. Replenishment or 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 properly maintained master data.

1. Create Production supply area using T Code PK05

Enter the Plant and continue

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Select new entries, Enter Plant, supply area, storage location and person responsible
Save the production supply area

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2. Create Finished Product using T Code MM01

Enter planning strategy as 10 (make to stock) and availability check as Y2, ..etc save the material.

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3. Create Semi-finished Material, with Kanban Process in house, using T Code MM01

Enter storage location for EP (where the material will be stored after its procurement), Default supply area (From where the material will get utilized for production) and production storage location (Storage location assigned to supply area) and save the material.

Also, maintain the necessary Master data, Like BOM, Routing & Production Version, etc

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4. Create semi-finished material, with Kanban Process External Proc. using T Code MM01

Enter storage location for EP (where the material will be stored after its procurement), Default supply area (From where the material will get utilized for production) and production storage location (Storage location assigned to supply area) and save the material

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5. Extend both the Semi-finished materials for production storage locations, using T Code MM01

Here enter the storage location as production storage location and enter, system will extend the material for production storage location also, save both the materials

Extend to the respective Storage Locations…

6. Create info record for semi-finished, material with External Proc. T Code ME11

Enter Vendor, Material, Plant and Purchasing organization.
Here in organization data tab, enter planed delivery time, purchasing group, standard quantity and net price then save the record.

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Also Create the Scheduling Agreement for this externally procured Material, in combination with the Plant & the Vendor (T code: ME31L) (This depends on the Strategy, that was selected)

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7. Create status sequence for Kanban

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Here select ‘New entries’ for creating the new Sequence, if required.

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Enter the required indicator which specifies the following for the status (e.g.EMPTY) in the corresponding status sequence:

Whether it is mandatory +
Whether it is recommended *
Whether it is optional.
Whether it is prohibited –
Save the status sequence.

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8. Create Replenishment Strategy

A. Create in house replenishment strategy

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Here enter plant and replenishment strategy.
Select the control type as ‘working with Planned Orders’

As we are producing with the Planned Orders, then make sure all the REM Settings are maintained for the In house Production Material ( REM Profile, Production versions, Product Cost Collector, should all these settings need to be maintained for the smooth production)
Enter require goods movement for goods receipt, in this case 101
And planed orders as ‘No planed orders’ and save the strategy

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B. Create in External Procurement Replenishment Strategy

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Enter Plant and Strategy

Enter control type as ‘working with Scheduling Agreements’ and order type as ‘LP’
Enter goods movement for goods receipt as 101 and save the replenishment strategy

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9. Create control cycle using T Code PK01

A. Create control cycle for in- house Kanban process

Enter material plant and supply area and select ‘classic Kanban’

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Enter number of Kanban (containers), maximum empty and Kanban quantity.
Enter in-house production replenishment strategy and person responsible

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On flow control tab, enter the status sequence and save the control cycle

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B. Create control cycle for external procurement Kanban process: (T code: PK01)

Enter number of Kanban (containers), maximum empty and Kanban quantity.
Enter external procurement replenishment strategy, Purchasing org and Vendor for external procurement.

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Process steps for KANBAN

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1. Set the Kanban Statuses to EMPTY and FULL by using T Code PK13N and PK12N

Enter plant, production supply area, person responsible and Material, and Enter

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A. Kanban for In- house Production

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Select first cycle and the Kanban container, select ‘To EMPTY’ tab

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System will change the status of Kanban container from full to empty (color will change from green to red)

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Now double click on the Kanban container, here the system will show display the planned order that got generated for in-house production of material (KANSFG1)

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The same can be seen from the Stock & Requirements List (T code : MD04)

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Execution/further processing of this Planned Order can be done from the KANBAN Board

By updating the Proper statuses at the Supply Source & Demand Source (PK12N & PK13N)
Status update/sequence to be followed are as follows:

EMPTY>>> (at the Demand Source)
EMPTY >>> In Process >>> In Transit (at the Supply Source)
In Transit >>> Full (at the Demand Source)

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Status changes to In Process

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Next Status, need to update to Transit

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Status changes to Transit

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Now at the Demand Source, Status needs to be updated from Transit to FULL.

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Status will get updated to FULL.

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Now, the Planned Order at MD04, will get disappeared & the Stock will get updated ( in MMBE)

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B. Kanban for External Procurement

Select the Kanban cycle and container and set status as empty by selecting ‘To Empty’ tab

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Now, let us start, process the procurement t through KANBAN.

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Once the status is changed to empty (Red color), system will generate the Schedule Line for procurement from vendor.

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Just double click on the KANBAN ID: 16, you can see the details of the Procurement

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Same procurement details will appear in MD04: Stocks & Requirements List

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Now go to ‘supply source overview’ using T Code PK12N,
Enter person responsible, plant and vendor and enter

Select the Kanban cycle and container and select ‘status in transit’ tab.

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Select the Kanban cycle and container and select ‘status in Process’ tab.

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The status will get changed from ‘EMPTY’ to ‘IN PROCESS’ (from red color to yellow)

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Select the Kanban cycle and container and select ‘status in Transit’ tab.

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The status will get changed from ‘In Process’ to ‘IN Transit’ (from Light Yellow color to Dark Yellow)

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Now again go to Demand Source overview using T Code PK13N.
Select the cycle and container and change the status to ‘FULL’ by selecting

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To full’ tab, this will trigger the goods receipt of material from vendor (yellow color to green)

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By double clicking on Kanban container the material and accounting documents can be checked if necessary

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Stock will get updated & Schedule Line from MD04, will get disappeared

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2. Create PIR of finished product using T Code MD61

Enter the required PIRs quantity on desired date and save the PIR

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3. Run the MRP, for the FG using T Code MD02

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Go to stock/requirement list using T Code MD04 and check the order report.

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4. Convert Planed order to Production Order in (MD04) and Confirm( CO15), FG

Convert the planed order to production order, and save

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Go to the Change Mode of the Production Order & Release, then save (T code: CO02)

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Do the Goods Issue to the Production Order (T code: MIGO)

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Confirm the Production Order: T code: CO15

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5. GR for the Production Order (Due to no Auto GR) (T Code: MIGO)

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6. Check the stock overview using T Code MMBE

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Finished material stock will get updated in unrestricted use stock at the given storage location

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