Tuesday, November 6, 2012

How KANBAN can be utilized with Supplier Network Collaboration


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 PROCESSto “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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