KANBAN Process by using
SAP-Supply Network Collaboration (SNC)
Overview
ØKANBAN is a signal or card by which material replenishment can be triggered, by the Plant (Requirement source) that requires the material.
According to Taiichi Ohno, the man credited with developing JIT, kanban is a means through which JIT is achieved.
ØA replenishment signal is issued to the supply source in the form of KANBAN card/bin defining material required & where the material is to be delivered.
Understanding KANBAN
§It was out of a need to maintain the level of improvements that the kanban system was devised by Toyota. Kanban became an effective tool since then.
§A simple example of the kanban system implementation might be a "three-bin system" for the supplied parts (where there is no in-house manufacturing) — one bin on the factory floor, one bin in the factory store and one bin at the suppliers' store.
§The Kanban system reduces your total costs by:
–Preventing Over Production
–Developing Flexible Work Stations
–Reducing Waste and Scrap
–Minimizing Wait Times and Logistics Costs
–Reducing Stock Levels and Overhead Costs
–Saving Resources by Streamlining Production
–Reducing Inventory Costs
KANBAN using SAP-SNC
Demand/Requirement Source Dashboard in SAP (PK13N)
Supply Source Dashboard in SAP (PK12N)
Plant Overview for KANBAN in SAP (PK11)
KANBAN Display in SNC
KANBAN Process for SAP-SNC
KANBAN Process - with Schedule Agreement
Ø When Status “WAIT” Purchase Reqs are created in SAP
Ø When Reorder point reached Status changes from “WAIT” to Empty
Ø Purchase Reqs are converted into Delivery Schedules in SAP
These Delivery Schedules are transferred to SNC via JIT Idoc and available in Order Forecast Report in SNC
ØSupplier Creates ASN using the DS in SNC- an Inbound Delivery available in SAP. Status changes to IN PROCESS
Ø The Inbound Delivery can be used to create GR for the DS line
Ø Bin status will change from “IN PROCESS” to “IN TRANSIT”, than scan for “Full”
Master Data Required in SAP (back-end)
KANBAN Master Data Transfer to SNC is done using a Std. Report
BENEFITS
Ø Improve material handling & delivery quality through tracking
Ø Minimize & eliminate the number of time-consuming inventories
Ø Real-time data available for suppliers to manage & conform deliveries
Ø Real-time synchronization achieved between supply & demand, hence reducing inventories, shorter lead-times and increased speed in production.
Ø Reduce time required to perform identification and elimination of process weaknesses & errors
Ø Very little human intervention hence making the process error free & more reliable
Ø Inventory mapped in the system to reflect the organizational and physical reality
Ø Eliminates fax & e-mail based communication instead enabling B2B communication using standardized enterprise services.
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