Lesson Overview
This lesson introduces replenishment strategies in kanban that access requirements planning. It includes relevant entries for master data and Customizing.
Lesson Objectives
After completing this lesson, you will be able to:
• Make the necessary settings for kanban replenishment strategies with MRP in the ECC system.
Business Example
You want to use kanban in your company and put into practice the replenishment sources that are defined in the control cycles. In addition, you decide to use requirements planning for particular kanban materials.
Figure 59: Overview: KANBAN with MRP
In this process, the storage location assigned to the supply area is not excluded from MRP.
Receipts, stocks, and requirements are therefore taken into account by MRP (net requirements calculation also for kanban parts). Lot sizes according to flexible period length are useful; replenishment elements are created by MRP.
SCM350 Lesson: Replenishment Strategies for Kanban with MRP
The replenishment elements created in the planning run, however, are not intended to trigger production or replenishment directly. Instead, they exist to provide the supply source with a forecast.
Advantage of replenishment using kanban with MRP: Components that are used for kanban materials can be planned using consumption-based planning, MRP or with KANBAN. In this way you can also use MRP to externally procure components from a vendor (for example if the vendor is not prepared to deliver on the basis of a KANBAN process), even though you use KANBAN internally.
The following applies to the container control strategies: The system has to be organized so that the supply source does not produce the material for the replenishment element created in MRP immediately but awaits the kanban
“request”. The material flow is controlled by setting kanbans to FULL and EMPTY. No direct reference from receipt element to the kanban:
• Backflushes and goods receipts are posted without reference to the kanban.
This means that you can backflush daily quantities, for example.
• KANBAN only manages the status of the kanban and controls material flow and production using the kanban signals.
Figure 60: Requirements Forecast using Long-Term Planning
Simulative planning without having an effect on the current requirements planning.
Mid- to long-term requirements forecast with BOM explosion.
Explosion and requirements forecast also for consumption-based or KANBAN materials.
Figure 61: Replenishment Strategies: KANBAN with MRP
In MRP, it is often useful to consider components that are procured using kanban run schedule quantities or kanban production orders. This can be necessary if individual raw materials are not procured with KANBAN, but are planned with MRP by the vendor, or if you want to send your vendor a forecast.
Stock transfer:
• The strategy Stock transfer with direct transfer posting/planning with MRP, as well as the strategy with Stock transfer with reservation/planning with MRP take place in exactly the same way as the corresponding strategies without MRP. In these stock transfer strategies, the transfer posting is posted between the storage locations when kanbans are set to FULL or EMPTY.
• In stock transfer with container control/planning with MRP, setting kanbans to empty and full triggers only a status change (and not an automatic transfer posting). Therefore the kanban signal does not cause transfer posting between the storage locations.
SCM350 Lesson: Replenishment Strategies for Kanban with MRP
Figure 62: Master Data: Replenishment Strategies with MRP: Material master In this process, the storage location assigned to the supply area is not excluded from MRP (MRP indicator is “blank”).
Figure 63: Container Control for In-House Production, External Procurement, Stock Transfer
In the container control replenishment strategy, setting a kanban to empty only triggers a status change, and prints a kanban if required. When a kanban is set to full, no goods receipt is posted. Exception:
• In in-house production with repetitive manufacturing, setting a kanban to FULL could trigger a goods receipt for the amount of the container target quantity. Manual postings do not have any influence on a container status (a goods receipt for the purchase order does not set the kanban to FULL, no reference to the kanban). In this case, only differences can be posted manually (for example: container quantity is 21 pieces but the planned quantity is 20 pieces; in this case you post 20 pieces by setting the kanban to full, and you post the difference of 1 piece manually).
• In external procurement with scheduling agreements (kanban indicator in scheduling agreement = blank, as the schedule lines are created from MRP and not from KANBAN) a goods receipt for the amount of the planned container quantity is possible, when setting the kanban to FULL. Manual GR postings for the scheduling agreement do not have any influence on a container status (a goods receipt for the scheduling agreement does not set the kanban to FULL, no reference to the kanban). In this case only differences can be posted manually.
– If you use scheduling agreements, kanbans can be sent by EDI, using a user exit.
• Note: While in container control (in the two cases above), only differences can be posted (as manual postings do not have any influence on the container control), the replenishment strategy stock transfer with reservation/planning with MRP also leads to a manual posting at the status change (as here, there is a 1:1 relationship between reservation and kanban).
For stock transfer with container control, the supply source and demand source belong to a storage location.
SCM350 Lesson: Replenishment Strategies for Kanban with MRP
Figure 64: External Procurement: Replenishment via Summarized JIT Calls Usage: With the summarized JIT call you can transmit calls which are relevant for delivery directly from production to a vendor (and not from MRP).
• First, you generate schedule lines as a forecast from requirements planning, and transmit these schedule lines as a forecast delivery schedule or a JIT delivery schedule to the vendor. This forecast or JIT delivery schedule is not delivery relevant for the vendor, but he uses it for his own planning.
• As soon as you really need the material in production, generate a
summarized JIT call that is relevant for delivery by setting a kanban to empty or create a new item in an existing JIT call. This summarized JIT call is then sent to the vendor in the form of a letter, fax, e-mail, or EDI. The dispatch is controlled by message determination. Message determination checks whether a message can be found for the criteria entered and triggers a message default. The summarized JIT call is relevant for delivery for the vendor. Kanbans are delivered corresponding to the summarized JIT call.
A summarized JIT call contains a delivery date by which the vendor must deliver the requested quantity of materials to supply production. A summarized JIT call can contain delivery dates using exact times as well as exact days. For a summarized JIT call with several items, the item with the earliest date defines when the material must be delivered to this JIT call.
In addition, a JIT call can contain an unloading point for the materials.
You can trigger a summarized JIT call both via classic as well as event-driven KANBAN.
Figure 65: Grouping Summarized JIT Calls
Usage: You can summarize material requirements (that is, kanbans) to achieve optimization in delivery. If you have set the grouping of material requirements in the system, then on emptying a kanban, the system checks whether this material requirement can be attached to an existing summarized JIT call. If this is the case, then the system generates an item for an existing summarized JIT call. If this is not the case, the system creates a new summarized JIT call (no items can be added to transmitted summarized JIT calls).
In principle, you can only group kanbans that have
• the same vendor
• the same message partner
• the same plant and that
• have not yet been transmitted
If you decide to group kanbans, then you may choose the type of grouping:
• according to plant
• according to plant and unloading point
• according to delivery date (if you group according to delivery date, then you must also always group according to plant or according to plant and unloading point).
SCM350 Lesson: Replenishment Strategies for Kanban with MRP
Figure 66: Message Transmission of Summarized JIT Calls
Determination of the notification recipient: Problem: A summarized JIT call 000123 refers to a scheduling agreement for material A and B. The forecast delivery schedule for material A can be sent to a different recipient than the forecast delivery schedule for material B. Who should the summarized JIT call be sent to? Solution: In the summarized JIT call profile a specific partner function is determined for the message partner. Forecast delivery schedules for various materials are only grouped if the same partners are maintained in the scheduling agreements under this partner function. The control of the message output takes place via this message partner. For the standard case (always the same vendor) you do not need to maintain a partner function.
Message determination always appears when you create a new summarized JIT call. You can transmit the message to your JIT call at various times. In Customizing for Kanban, enter the dispatch time for the corresponding message under Define message type for summarized JIT call (under Default settings). You have the following options:
• You start regular output runs which define which summarized JIT calls you have to transmit (dispatch time 1 and 2).
• You test yourself which JIT calls you have to transmit (dispatch time 3).The advantage of this process is that you can choose messages with specific selection criteria via a report and you can transmit these in an operation.
• You transmit the message directly on creating the summarized JIT call. In this case the system always creates a new summarized JIT call (dispatch time 4) on emptying a kanban.
Figure 67: Goods Receipt with Summarized JIT Call
You can carry out the goods receipt both via KANBAN and the summarized JIT call as well as by your scheduling agreement item.
• Starting in the kanban menu, you will find a function under JIT calls, which enables you to post the goods receipt to a JIT call number. If you post the goods receipt in the foreground, then the goods receipt quantities that were suggested for backflush and match the quantities to be released can be posted by item. You can also alter the suggested quantity; i.e. if it is permitted in the scheduling agreement you can post an under- or over- delivery.
• In the Inventory management menu, under Goods Receipt for Purchase Order, there is a function that enables a manual final backflush for the summarized JIT call or scheduling agreement. When you carry out the goods receipt in the scheduling agreement, JIT calls or kanbans will not be updated. You should not use this function for adjustments.
• When a kanban is set to FULL, the system posts the quantity that you have called from your supplier.
If a summarized JIT call contains several items, you can carry out the goods receipt per item, i.e. per kanban.
For more information (such as prerequisites) see the ECC online help for kanban.
SCM350 Lesson: Replenishment Strategies for Kanban with MRP
Figure 68: In-house Production: Replenishment via Planned Ords or Prod.
Ords/Planning with MRP
MRP can also be used for a forecast with KANBAN run schedule quantities and KANBAN production orders. Two replenishment strategies are provided as standard (in-house strategies 0005 and 0006).
The planned orders from MRP are reduced when creating the kanban run schedule quantities or the kanban production orders by setting a kanban to EMPTY as defined in the replenishment strategy: Here, you define the following in the replenishment strategy for in-house production:
• The reduction of planned orders (which planned orders are taken into account)
• The reduction period (up until which point planned orders are taken into account)
• The recreation of planned orders (in the case of a cancellation of the run schedule quantity or of the production order)
SCM350 Lesson: Replenishment Strategies for Kanban with MRP