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Exercise Objectives
After completing this exercise, you will be able to:
• trigger replenishment using KANBAN with MRP (replenishment with summarized JIT call)
Business Example
The PC component T-T7## (BIOS) is now to be staged in supply area T-P3##
on production line T-L3## using KANBAN with MRP (replenishment with summarized JIT call).
In this case the vendor receives a forecast of possible future requirement quantities by schedule lines in MRP.
However, the replenishment elements created in the planning run, however, are not intended to trigger replenishment directly. Instead, they exist to provide the supply source with a forecast. A delivery-relevant summarized JIT call is not created until the kanban is set to EMPTY. The material flow is controlled by setting kanbans to full and empty.
Task 1:
Create a new scheduling agreement for supplier 2 (you can also add an item to the scheduling agreement you already created):
Menu path:
Logistics → Material Management → Purchasing
Outline Agreement → Scheduling Agreement → Create → Vendor Known
Vendor: 2
Choose Enter. The header of the scheduling agreement appears.
Validity End: End of next year Choose Enter.
Material: T-T7##
Tar. Qty: 2000 pieces
Plant: 1200
Storage location: PL03 (to see this column, you may have to scroll right)
Select item 10 and choose Item → Details
Tax code: VN
Set the Unlimited indicator.
Choose Enter.
Select the item 10 and choose
Item → More Functions → Additional Data
In the Kanban indicat. field, choose the entry Y (Scheduling Agreement for Summarized JIT Call).
1. Why do you have to specify the receiving storage location and the plant in the scheduling agreement item, and why must the kanban indicator be maintained accordingly in the additional data?
______________________________________________________
Save the the scheduling agreement and note the scheduling agreement number that is displayed in the lower area of the screen:
______________________________________________________
2.
Caution: Section 1-2 is carried out by the instructor only, in order to guarantee valid message condition maintenance for all course participants.
SCM350 Lesson: Replenishment Strategies for Kanban with MRP
Course participants do not perform this task. Course participants continue directly with task 2.
Hint: The message conditions/message determination is not a part of this course. Here, the necessary data is maintained, simply to be able to complete the entire process.
Menu path:
Logistics → Production → Kanban → JIT Call → Message Condition → Create
Output type: MAFO (QRelease Print Form) Choose Enter.
In the subsequent dialog box, select the key combination Plant/JC prof./vendor.
Date/Time: 4 (send immediately (when saving the application))
Language: EN (English)
Enter
Select the row entered and choose Communication.
On the subsequent screen, choose Output device: LP01 (Dummy printer) Select the Print immediately immediately.
Choose Save.
Continued on next page
Task 2:
1. So that MRP can directly create schedule lines as a forecast, the scheduling agreement has to be entered in the source list. Therefore, maintain a source list entry for material T-T7## and the scheduling agreement item, which you have just created.
Menu path:
Logistics → Material Management → Purchasing Master Data → Source List → Maintain
Material: T-T7##
Plant: 1200
Choose Enter.
Valid from: First day of the current month
Valid to: End of next year
Agreement and item: Enter the number you noted above for the scheduling agreement item (you can use the input help (F4) to enter the item number)
Use in Materials Planning (field MRP):
2
Save the source list entry.
Task 3:
1. In this exercise scheduling agreement schedule lines are to be created by MRP (not by KANBAN) for the PC component T-T7## in supply area PVB T-P3##.
Therefore, you must set the system in such a way that material T-T7## at storage location PL03 (belonging to PSA T-P3##) must be taken into account for planning purposes by requirements planning.
Menu path:
Logistics → Material Management → Material Master Material → Change → Immediately
SCM350 Lesson: Replenishment Strategies for Kanban with MRP
In the SLoc MRP indicator field, choose the “blank” entry (Storage location stock also planned at plant level).
Save the material master.
Choose Enter.
Task 4:
Change the control cycle for material T-T7## in PSA T-P3##:
Change the replenishment strategy by choosing New Strategy. Select Ext.procurement and use the input help to display the available strategies.
1. Which replenishment strategies can you use?
______________________________________________________
2. Why are the other external procurement strategies for kanban without MRP not displayed?
______________________________________________________
Select strategy 0007 (Summarized JIT calls w/o summary).
Press Enter.
Enter the scheduling agreement you created above in the Agreement field.
Press Enter.
On the Flow Control tab page, enter the JIT call profile 0001.
Save the control cycle.
Continued on next page
Task 5:
Create the planned independent requirements for the PC assembly T-B10##
(motherboard). The component used above T-T7## (BIOS) is part of this motherboard. First, go to the material master of assembly T-B10## and change the production storage location and the alternative BOM indicator as conditions for storage location determination.
1. Menu path:
Logistics → Production → Master Data → Material Master Material → Change → Immediately
Material: T-B10## (not T-T7##)
Save the changed material master and create the planned independent requirements for this assembly:
Menu path:
Logistics → Production → Production Planning → Demand Management Planned Independent Requirements → Create
Material: T-B10## (not T-T7##)
Plant: 1200
Version: 00
Planning period: W (week) Choose Enter.
In the next screen, choose the Sched. Lines tab page.
Enter the following planned independent requirements using the period indicator W (week format). Choose Enter to confirm any warning messages.
SCM350 Lesson: Replenishment Strategies for Kanban with MRP
D Requirement date Planned
Quantity
W This week + 1 week 100 pieces
W This week + 2 weeks 130 pieces
W This week + 3 weeks 130 pieces
W This week + 4 weeks 165 pieces
W This week + 5 weeks 170 pieces
W This week + 6 weeks 165 pieces
Save the planned independent requirements. Choose Enter to confirm any warning messages.
Task 6:
MRP should provide a forecast of possible future requirements using schedule lines.
Hint: If, due to a previous exercise, any purchase orders still exist in the stock/requirements list for component T-T7## (BIOS), delete these before carrying out MRP for assembly T-B10## (Motherboard).
Menu path:
Logistics → Production → KANBAN Evaluations → Stock/Requirements List
1. Now, carry out the planning run for the PC assembly T-B10## (Motherboard).
Menu path:
Logistics → Production → MRP
Planning → Multilevel Single-Item Planning Material: T-B10## (not T-T7##)
Plant: 1200
Choose Enter twice.
Continued on next page
Task 7:
1. Check the MRP result for component T-T7## (BIOS) and T-B7## (processor coolant unit).
Both components are recorded in the BOM of assembly T-B10##
(motherboard).
Menu path:
Logistics → Production → KANBAN Evaluations → Stock/Requirements List
What planning differences exist between materials T-T7## (BIOS) and T-B7## (Coolant Unit) at storage location PL03?
____________________________________________________________
Task 8:
Now go to the demand source view of the kanban board for supply area T-P3##.
1. In the kanban board, set two waiting kanbans for material T-T7## (BIOS) to empty.
Does setting the kanbans to empty have any effect on the stock/requirements list in this case? Is a replenishment element created by setting the kanbans to EMPTY?
___________________________________________________________
Double click one of the empty containers.
Make a note of the JIT call:
___________________________________________________________
In the subsequent dialog window, choose Display Replenishment to display the item details.
Task 9:
In the kanban board, set one empty kanban for material T-T7## (BIOS) to full.
1. What effects does this have on the stock/requirements list?
___________________________________________________________
SCM350 Lesson: Replenishment Strategies for Kanban with MRP
Task 10:
Now post a manual goods receipt for 20 pieces for the generated JIT call for component T-T7## (BIOS).
1. Menu path:
Logistics → Production → KANBAN JIT Call → Goods Receipt
JIT Call Number: Enter the above JIT call number.
Choose Enter to confirm any information messages.
Enter a delivery quantity of 20 pieces.
Choose Enter.
Choose Save.
2. Now go to the demand source view of the kanban board for supply area T-P3##.
Has the status of the processed kanbans changed?
_____________________________________________________
3. Branch directly from the kanban board into the current stock/requirements list for T-T7##. What has changed in the stock/requirements list?
_____________________________________________________
Solution 9: KANBAN with Requirements Planning – Replenishment with
Summarized JIT Call
Task 1:
Create a new scheduling agreement for supplier 2 (you can also add an item to the scheduling agreement you already created):
Menu path:
Logistics → Material Management → Purchasing
Outline Agreement → Scheduling Agreement → Create → Vendor Known
Vendor: 2
Choose Enter. The header of the scheduling agreement appears.
Validity End: End of next year Choose Enter.
Material: T-T7##
Tar. Qty: 2000 pieces
Plant: 1200
Storage location: PL03 (to see this column, you may have to scroll right)
Select item 10 and choose Item → Details
Tax code: VN
Set the Unlimited indicator.
Choose Enter.
SCM350 Lesson: Replenishment Strategies for Kanban with MRP
Select the item 10 and choose
Item → More Functions → Additional Data
In the Kanban indicat. field, choose the entry Y (Scheduling Agreement for Summarized JIT Call).
1. Why do you have to specify the receiving storage location and the plant in the scheduling agreement item, and why must the kanban indicator be maintained accordingly in the additional data?
______________________________________________________
Save the the scheduling agreement and note the scheduling agreement number that is displayed in the lower area of the screen:
______________________________________________________
a) The plant and storage location must be specified in the scheduling agreement item, because the goods receipt will take place in this storage location in the plant.
Since the schedule lines for this scheduling agreement are created by MRP and not by kanban, and since these schedule lines are not delivery-relevant, you must set the kanban indicator Y in the delivery schedule to ensure the delivery of the kanban calls.
2.
Caution: Section 1-2 is carried out by the instructor only, in order to guarantee valid message condition maintenance for all course participants.
Course participants do not perform this task. Course participants continue directly with task 2.
Hint: The message conditions/message determination is not a part of this course. Here, the necessary data is maintained, simply to be able to complete the entire process.
Menu path:
Logistics → Production → Kanban → JIT Call → Message Condition → Create
Output type: MAFO (QRelease Print Form) Choose Enter.
In the subsequent dialog box, select the key combination Plant/JC prof./vendor.
Continued on next page
Choose Enter.
Date/Time: 4 (send immediately (when saving the application))
Language: EN (English)
Enter
Select the row entered and choose Communication.
On the subsequent screen, choose Output device: LP01 (Dummy printer) Select the Print immediately immediately.
Choose Save.
a) (no solution required)
Task 2:
1. So that MRP can directly create schedule lines as a forecast, the scheduling agreement has to be entered in the source list. Therefore, maintain a source list entry for material T-T7## and the scheduling agreement item, which you have just created.
Menu path:
Logistics → Material Management → Purchasing Master Data → Source List → Maintain
Material: T-T7##
Plant: 1200
Choose Enter.
SCM350 Lesson: Replenishment Strategies for Kanban with MRP
Valid from: First day of the current month
Valid to: End of next year
Agreement and item: Enter the number you noted above for the scheduling agreement item (you can use the input help (F4) to enter the item number)
Use in Materials Planning (field MRP):
2
Save the source list entry.
a) (no solution required)
Task 3:
1. In this exercise scheduling agreement schedule lines are to be created by MRP (not by KANBAN) for the PC component T-T7## in supply area PVB T-P3##.
Therefore, you must set the system in such a way that material T-T7## at storage location PL03 (belonging to PSA T-P3##) must be taken into account for planning purposes by requirements planning.
Menu path:
Logistics → Material Management → Material Master Material → Change → Immediately
Material: T-T7##
In the SLoc MRP indicator field, choose the “blank” entry (Storage location stock also planned at plant level).
Save the material master.
Continued on next page
Choose Enter.
a) (no solution required)
Task 4:
Change the control cycle for material T-T7## in PSA T-P3##:
Change the replenishment strategy by choosing New Strategy. Select Ext.procurement and use the input help to display the available strategies.
1. Which replenishment strategies can you use?
______________________________________________________
a) You can only select replenishment strategy 0006 (container
control/planning with MRP) and 0007 (summarized JIT calls (without grouping)).
2. Why are the other external procurement strategies for kanban without MRP not displayed?
______________________________________________________
Select strategy 0007 (Summarized JIT calls w/o summary).
Press Enter.
Enter the scheduling agreement you created above in the Agreement field.
Press Enter.
On the Flow Control tab page, enter the JIT call profile 0001.
Save the control cycle.
a) Because you set the MRP indicator to “blank” in the material master for the material at the storage location for which a control cycle was created, the material is planned at plant level.
Task 5:
Create the planned independent requirements for the PC assembly T-B10##
(motherboard). The component used above T-T7## (BIOS) is part of this motherboard. First, go to the material master of assembly T-B10## and change the production storage location and the alternative BOM indicator as conditions for storage location determination.
1. Menu path:
Logistics → Production → Master Data → Material Master Material → Change → Immediately
SCM350 Lesson: Replenishment Strategies for Kanban with MRP
Save the changed material master and create the planned independent requirements for this assembly:
Menu path:
Logistics → Production → Production Planning → Demand Management Planned Independent Requirements → Create
Material: T-B10## (not T-T7##)
Plant: 1200
Version: 00
Planning period: W (week) Choose Enter.
In the next screen, choose the Sched. Lines tab page.
Enter the following planned independent requirements using the period indicator W (week format). Choose Enter to confirm any warning messages.
D Requirement date Planned
Quantity
W This week + 1 week 100 pieces
W This week + 2 weeks 130 pieces
W This week + 3 weeks 130 pieces
W This week + 4 weeks 165 pieces
W This week + 5 weeks 170 pieces
W This week + 6 weeks 165 pieces
Save the planned independent requirements. Choose Enter to confirm any warning messages.
a) (no solution required)
Continued on next page
Task 6:
MRP should provide a forecast of possible future requirements using schedule lines.
Hint: If, due to a previous exercise, any purchase orders still exist in the stock/requirements list for component T-T7## (BIOS), delete these before carrying out MRP for assembly T-B10## (Motherboard).
Menu path:
Logistics → Production → KANBAN Evaluations → Stock/Requirements List
1. Now, carry out the planning run for the PC assembly T-B10## (Motherboard).
Menu path:
Logistics → Production → MRP
Planning → Multilevel Single-Item Planning Material: T-B10## (not T-T7##)
Plant: 1200
Choose Enter twice.
a) (no solution required)
Task 7:
1. Check the MRP result for component T-T7## (BIOS) and T-B7## (processor coolant unit).
Both components are recorded in the BOM of assembly T-B10##
(motherboard).
Menu path:
Logistics → Production → KANBAN Evaluations → Stock/Requirements List
What planning differences exist between materials T-T7## (BIOS) and T-B7## (Coolant Unit) at storage location PL03?
SCM350 Lesson: Replenishment Strategies for Kanban with MRP
____________________________________________________________
a) Material T-T7## is now not excluded from MRP at storage location PL03. The stock at storage location PL03 is now planned along with the rest of the plant stock. Therefore, schedule lines for storage location PL03 have already been created in the planning run for material T-T7##.
However, material T-B7## is excluded from MRP at storage location PL03. The system displays dependent requirements in storage location PL03, however they are not included in the planning run. Here, replenishment is not triggered until a kanban is set to empty. Since kanbans were already set to empty for material T-B7## in a previous exercise, there are planned orders (in this case, run schedule quantities from repetitive manufacturing).
Task 8:
Now go to the demand source view of the kanban board for supply area T-P3##.
1. In the kanban board, set two waiting kanbans for material T-T7## (BIOS) to empty.
Does setting the kanbans to empty have any effect on the stock/requirements list in this case? Is a replenishment element created by setting the kanbans to EMPTY?
___________________________________________________________
Double click one of the empty containers.
Make a note of the JIT call:
___________________________________________________________
In the subsequent dialog window, choose Display Replenishment to display the item details.
a) Setting the kanban to empty has no effect on the current
stock/requirements list, since it only displays the schedule lines. A summarized JIT call is created, however, when the kanban is set to empty.
Task 9:
In the kanban board, set one empty kanban for material T-T7## (BIOS) to full.
1. What effects does this have on the stock/requirements list?
Continued on next page
___________________________________________________________
a) By setting the kanban to full, the system posts a goods receipt for the scheduling agreement item for the kanban quantity (20 pieces).
Task 10:
Now post a manual goods receipt for 20 pieces for the generated JIT call for component T-T7## (BIOS).
1. Menu path:
Logistics → Production → KANBAN JIT Call → Goods Receipt
JIT Call Number: Enter the above JIT call number.
Choose Enter to confirm any information messages.
Enter a delivery quantity of 20 pieces.
Choose Enter.
Choose Save.
a) (no solution required)
2. Now go to the demand source view of the kanban board for supply area T-P3##.
Has the status of the processed kanbans changed?
_____________________________________________________
a) The kanban is set to full.
3. Branch directly from the kanban board into the current stock/requirements list for T-T7##. What has changed in the stock/requirements list?
_____________________________________________________
a) At storage location PL03, a goods receipt for the scheduling agreement item was posted for the kanban quantity (20 pieces), as a result of the final backflush for the summarized JIT call. The first schedule line was also reduced by this amount.
SCM350 Lesson: Replenishment Strategies for Kanban with MRP
Lesson Summary
You should now be able to:
• Make the necessary settings for kanban replenishment strategies with MRP in the ECC system.
Unit Summary
You should now be able to:
• Make the necessary settings for kanban replenishment strategies without MRP in the ECC system.
• Make the necessary settings for kanban replenishment strategies with MRP in the ECC system.