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Manufacturing with Kanban Supply into
Production (233)
SAP Best Practices
Purpose, Benefits, and Key Process Steps
Purpose
 This scenario focuses on different approaches to supply the production using Kanban-controlled
business processes.
 Comprehensive presentation of different Kanban processes
Benefits






The replenishment process controls itself and manual posting is reduced as far as possible.
Reduction in lead time and stock.
Components are not procured before they are needed (just in time).
Prevention of overproduction. Reduction of required storage space.
Simple and transparent method of organization.
Event control and alerting enable timely reaction to changes and issues in the production process
Key Process Steps





Creation an maintenance of Kanban control cycles
Creating Planned Independent Requirements and Material Requirements Planning (Plant)
Classic Kanban: External Procurement with scheduling agreements
Classic Kanban with JIT calls, calculation and alerting
Classic Kanban: In-house production (repetitive manufacturing) with quantity signal and trigger
point
 Classic Kanban: Stock transfer from warehouse with alerting
 Event-driven Kanban with packaging instructions and alerting
 Repetitive manufacturing backflush
© 2012 SAP AG. All rights reserved.
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Required SAP Applications and Company Roles
Required
 SAP enhancement package 6 for SAP ERP 6.0
Company Roles
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


Production Planner
Shop Floor Specialist
Warehouse Clerk
Purchaser
© 2012 SAP AG. All rights reserved.
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Detailed Process Description
Manufacturing with Kanban supply into production
 The scenario Manufacturing with KANBAN supply into production focuses on a lean production
control method within a repetitive manufacturing environment: use of KANBAN processing for
lean replenishment
 Repetitive Manufacturing is commonly used when a production process meets the following
criteria: The same or similar products are produced over a lengthy period of time. The products
produced are not manufactured in individually defined lots. Instead, total quantity is produced
over a certain period at a certain rate per part-period. The products produced always follow the
same sequence through the machines and work centers in production. Routings tend to be
simple and do not vary much.
 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 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 previously maintained master data. The entries you have to make in the system
are reduced to a minimum. All other actions in the system are carried out automatically in the
background.
 With KANBAN, the production process controls itself and manual posting is reduced as far as
possible. The effect of this is a reduction in lead time and in stock.
© 2012 SAP AG. All rights reserved.
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Process Flow Diagram
Purchaser
Manufacturing with Kanban supply into production (233)
Procurement
of Materials
Additional
Processes
Shopfloor
Specialist
Production Planner
Planned
Independent
Requirements
REM Planning
Table
Operative MRP
Classic Kanban
with Scheduling
Agreements
Replenishment of
external
procurement
material is
required?
Replenishment of
stock
transfer
material t is
required?
Classic Kanban
with JIT Calls
Event-driven
Kanben with
packaging
instructions
Postprocessing
List
Scheduling
Agreement with JIT
Inbound
(230)
© 2012 SAP AG. All rights reserved.
Classic Kanban:
Stock Transfer
(Full WM) with
Alerting
Replenishment of
rep. manuf.
Material is
required?
Event-driven
Kanban : In-house
production
Alerting
Classic Kanban:
In-house
production with
quantity signal
and trigger point
Repetitive
Manufacturing
Backflush
End Process
Reprocessing
List
Classic Kanban:
In-house
Production
Classic Kanban:
Stock Transfer
(Lean WM)
GI/GR Slip
Agreement in Sales
(231)
Inventory
Consumption
@ Standard
Cost
Inventory
Receipt @
Standard Cost
Period-End Closing
“General” Plant
(181)
CO-PA =Profitability Analysis, MRP = Material Requirements Planning, GI/GR = Goods Issue/Goods Receipt
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Process Flow Diagram
Scheduling
Agreement with JIT
Inbound
(230)
Scheduling
Agreements?
Set Kanban to
“EMPTY”
Set Kanban to
“FULL”
JIT Calls?
Check
Dependent
Requirements
Set Kanban to
“EMPTY”
Unlock
Kanbans
Alerting
Create Eventdriven Kanban
Set Kanban to
“FULL”
Eventdriven/
Packaging
Instr.?
Warehouse Clerk
Production Planner
Additional
Processes
External Procurement using Kanban
Set Kanban to
“FULL”
Kanban
Precalculation
Release
Proposal
Check
changes and
calculation
Set Kanban to
“EMPTY”
Goods Receipt
Posting
GR Slip
Inventory
Receipt @
Standard Cost
Kanban set
to “FULL”
GR = Goods Receipt
© 2012 SAP AG. All rights reserved.
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Process Flow Diagram
In-house
Production
with quantity
signal and
trigger point?
Release
Control Cycle
Unlock
Kanbans
Set Kanban to
“EMPTY”
Set Kanban to
“FULL”
Kanban
withdawal
In-house
Production
(Eventdriven)?
Create evendriven Kanban
Check Kanban
Status
Set Kanban to
“IN PROCESS”
Set Kanban to
“IN TRANSIT”
Set Kanban to
“FULL”
In-house
Production
Set Kanban to
“EMPTY”
Set Kanban to
“FULL”
Stock
Transfer
(Lean
WM)?
Set Kanban to
“EMPTY”
Set Kanban to
“FULL”
Stock
Transfer
(Full WM)?
Set Kanban to
“EMPTY
Set Kanban to
“IN TRANSIT”
Warehouse
Clerk
Production Planner
In-House Production and Stock Transfer using Kanban
© 2012 SAP AG. All rights reserved.
Set Kanban to
“FULL”
Set Kanban to
“EMPTY”
Alerting
Confirm
Transfer
ORder
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Legend
<Function>
Symbol
Description
Usage Comments
Band: Identifies a user role, such as Accounts
Payable Clerk or Sales Representative. This band
can also identify an organization unit or group,
rather than a specific role.
Role band contains
tasks common to that
role.
Symbol
Diagram
Connection
The other process flow symbols in this table go
into these rows. You have as many rows as
required to cover all of the roles in the scenario.
External
to SAP
External Events: Contains events that start or end
the scenario, or influence the course of events in
the scenario.
Business
Activity / Event
SubProcess
Reference
Process
Decision
Flow line (solid): Line indicates the normal sequence
of steps and direction of flow in the scenario.
Flow line (dashed): Line indicates flow to
infrequently-used or conditional tasks in a
scenario. Line can also lead to documents involved
in the process flow.
Connects two tasks in
a scenario process or
a non-step event
Business Activity / Event: Identifies an action that
either leads into or out of the scenario, or an
outside Process that happens during the scenario
Does not correspond
to a task step in the
document
Unit Process: Identifies a task that is covered in a
step-by-step manner in the scenario
Corresponds to a task
step in the document
To next / From last Diagram: Leads
to the next / previous page of the
Diagram
Flow chart continues on the next /
previous page
Hardcopy / Document: Identifies a
printed document, report, or form
Does not correspond to a task
step in a document; instead, it is
used to reflect a document
generated by a task step; this
shape does not have any outgoing
flow lines
Financial Actuals: Indicates a
financial posting document
Does not correspond to a task
step in a document; instead, it is
used to reflect a document
generated by a task step; this
shape does not have any outgoing
flow lines
Budget Planning: Indicates a
budget planning document
Does not correspond to a task
step in a document; instead, it is
used to reflect a document
generated by a task step; this
shape does not have any outgoing
flow lines
Manual Process: Covers a task
that is manually done
Does not generally correspond to
a task step in a document;
instead, it is used to reflect a task
that is manually performed, such
as unloading a truck in the
warehouse, which affects the
process flow.
Existing Version / Data: This block
covers data that feeds in from an
external process
Does not generally correspond to
a task step in a document;
instead, this shape reflects data
coming from an external source;
this step does not have any
incoming flow lines
System Pass / Fail Decision: This
block covers an automatic
decision made by the software
Does not generally correspond to
a task step in the document;
instead it is used to reflect an
automatic decision by the system
that is made after a step has been
executed.
Financial
Actuals
Process Reference: If the scenario references
another scenario in total, put the scenario number
and name here.
Corresponds to a task
step in the document
Sub-Process Reference: If the scenario references
another scenario in part, put the scenario number,
name, and the step numbers from that scenario
here
Corresponds to a task
step in the document
Process Decision: Identifies a decision / branching
point, signifying a choice to be made by the end
user. Lines represent different choices emerging
from different parts of the diamond.
Does not usually
correspond to a task
step in the document;
Reflects a choice to
be made after step
execution
© 2012 SAP AG. All rights reserved.
Usage Comments
Hardcopy /
Document
Budget
Planning
Unit Process
Process
Reference
Description
Manual
Process
Existing
Version /
Data
System
Pass/Fail
Decision
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