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SAP BLOG Kanban Process in S/4 HANA 1709

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22 Ara 2017
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Table of Contents

  1. Create Production Supply area using T Code PK05
  2. Create finished product using T Code MM01
  3. Create semi-finished material for which the Kanban process in house, using T Code MM01
  4. Create semi-finished material for which the Kanban process External, using T Code MM01
  5. Extend both the semi-finished materials for production storage location, using T Code MM01
  6. Create info record for semi-finished, material with Ext Procurement T Code ME11
  7. Create status sequence for Kanban
  8. Create Replenishment strategies
  9. Create control cycle using T Code PK01

Process steps for KANBAN

  1. Set the Kanban to EMPTY and FULL by using T Code PK13N and PK12N
  2. Create PIR of finished product using T Code MD61
  3. Run the MRP, for the FG using T Code MD02
  4. Convert Planed order to Production Order (MD04) and confirm (CO11N) for finished product
  5. GR for the Production Order (Due to no Auto GR) (T Code: MIGO
  6. Check the stock overview using T Code MMBE.

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

Kanban Process in S/4 HANA 1709


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

Kanban Process in S/4 HANA 1709


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.

Kanban Process in S/4 HANA 1709


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

Kanban Process in S/4 HANA 1709


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

Kanban Process in S/4 HANA 1709


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.

Kanban Process in S/4 HANA 1709


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)

Kanban Process in S/4 HANA 1709


Kanban Process in S/4 HANA 1709


Kanban Process in S/4 HANA 1709


7. Create status sequence for Kanban


Kanban Process in S/4 HANA 1709


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

Kanban Process in S/4 HANA 1709


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.

Kanban Process in S/4 HANA 1709


8. Create Replenishment Strategy


A. Create in house replenishment strategy

Kanban Process in S/4 HANA 1709


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

Kanban Process in S/4 HANA 1709


B. Create in External Procurement Replenishment Strategy

Kanban Process in S/4 HANA 1709


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

Kanban Process in S/4 HANA 1709


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’

Kanban Process in S/4 HANA 1709


Enter number of Kanban (containers), maximum empty and Kanban quantity.
Enter in-house production replenishment strategy and person responsible
Kanban Process in S/4 HANA 1709


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

Kanban Process in S/4 HANA 1709




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.

Kanban Process in S/4 HANA 1709


Kanban Process in S/4 HANA 1709


Kanban Process in S/4 HANA 1709


Process steps for KANBAN

Kanban Process in S/4 HANA 1709


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

Kanban Process in S/4 HANA 1709


A. Kanban for In- house Production

Kanban Process in S/4 HANA 1709


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

Kanban Process in S/4 HANA 1709


Kanban Process in S/4 HANA 1709


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

Kanban Process in S/4 HANA 1709


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)

Kanban Process in S/4 HANA 1709


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

Kanban Process in S/4 HANA 1709


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)

Kanban Process in S/4 HANA 1709
Status changes to In Process

Kanban Process in S/4 HANA 1709
Next Status, need to update to Transit

Kanban Process in S/4 HANA 1709
Status changes to Transit

Kanban Process in S/4 HANA 1709
Now at the Demand Source, Status needs to be updated from Transit to FULL.

Kanban Process in S/4 HANA 1709
Status will get updated to FULL.

Kanban Process in S/4 HANA 1709
Now, the Planned Order at MD04, will get disappeared & the Stock will get updated ( in MMBE)

Kanban Process in S/4 HANA 1709


B. Kanban for External Procurement

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

Kanban Process in S/4 HANA 1709


Kanban Process in S/4 HANA 1709


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

Kanban Process in S/4 HANA 1709


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

Kanban Process in S/4 HANA 1709
Just double click on the KANBAN ID: 16, you can see the details of the Procurement

Kanban Process in S/4 HANA 1709


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

Kanban Process in S/4 HANA 1709


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.

Kanban Process in S/4 HANA 1709


Kanban Process in S/4 HANA 1709
Select the Kanban cycle and container and select ‘status in Process’ tab.

Kanban Process in S/4 HANA 1709
The status will get changed from ‘EMPTY’ to ‘IN PROCESS’ (from red color to yellow)

Kanban Process in S/4 HANA 1709
Select the Kanban cycle and container and select ‘status in Transit’ tab.

Kanban Process in S/4 HANA 1709
The status will get changed from ‘In Process’ to ‘IN Transit’ (from Light Yellow color to Dark Yellow)

Kanban Process in S/4 HANA 1709


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

Kanban Process in S/4 HANA 1709
To full’ tab, this will trigger the goods receipt of material from vendor (yellow color to green)

Kanban Process in S/4 HANA 1709
By double clicking on Kanban container the material and accounting documents can be checked if necessary

Kanban Process in S/4 HANA 1709


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

Kanban Process in S/4 HANA 1709


2. Create PIR of finished product using T Code MD61

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

Kanban Process in S/4 HANA 1709


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

Kanban Process in S/4 HANA 1709


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

Kanban Process in S/4 HANA 1709


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

Convert the planed order to production order, and save

Kanban Process in S/4 HANA 1709


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

Kanban Process in S/4 HANA 1709


Kanban Process in S/4 HANA 1709


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

Kanban Process in S/4 HANA 1709


Confirm the Production Order: T code: CO15

Kanban Process in S/4 HANA 1709


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


Kanban Process in S/4 HANA 1709


6. Check the stock overview using T Code MMBE


Kanban Process in S/4 HANA 1709


Kanban Process in S/4 HANA 1709


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

********’
COMMON Issues

KANBAN with ERROR Status:

By any chance, if the KANBAN was updated with the ERROR Status, how to Reset /Revert back to the earlier Status?

Status Reset/Revert back to the earlier status can be done using the T code: PK31

<<<< END >>>

Kindly update with your valuable inputs, to for any changes/additions required, to make it the most useful document.

Thanks & Regards : Raja Sekhara Reddy Bannuru.

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