Pull and Kanban in SAP. Topics 3 What is Pull and when do I use it Procurement Decision Tree ...
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Transcript of Pull and Kanban in SAP. Topics 3 What is Pull and when do I use it Procurement Decision Tree ...
Pull and Kanban in
SAP
Topics
3
What is Pull and when do I use it
Procurement Decision Tree
Kanban Calculator
SAP reports
Fields
eKanban/Reorder Point Setup
Purchase Pull System
• Part shortages are reduced and/or eliminated (reducing expediting)• Total inventory is reduced through better mix (right sizing)
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Manufacturing
StrategicBuffer
Supplier Lead Time8 Weeks
Process Lead Time2 Weeks Customer Expectation
3 Weeks
Replenishment Signal (Purchase Order)
ConsumptionSupplier
• Pull systems establish strategically located “buffers” of parts within a process.• Inventory (or part) replenishment is “triggered” based on consumption versus
pushed based on net requirements.
Pull System Design Drivers• Pull is about
– Set Up– Maintenance
• Demand is dynamic and changes over time– Seasonality, ramp up/down, engineering changes, etc. drive need to resize Kanban quantities– Need to review Kanban sizes at least quarterly
5Effectiveness, then efficiency
Goal1. Establish
inventory control (Kanban sizing)
2. Stabilize process
3. Reduce inventory
Kanban
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Coefficient of Variation?• Coefficient of Variation (CoV) measures the variability of demand
– It is defined as the ratio of the standard deviation (σ) to the mean (μ)
• Used to determine if an item is a good candidate for pull– Low variability: good candidate for pull– High variability: poor candidate for pull
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CoV>=1.5
Push
1.0<CoV>1.5
Additional Data Required
CoV<=1.0
Pull
CoV Example
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Weeks DemandA B C
1 25 30 02 25 40 03 25 40 04 25 30 05 25 30 06 25 70 1507 25 0 08 25 0 09 25 0 0
10 25 0 011 25 60 012 25 0 150
Mean (Average) 25 25 25
Standard Deviation (Variation) 0.0 25.0 58.4
CoV 0.0 1.0 2.3
• Parts A and B meet the rule of thumb COV<=1
• Part C has same average demand, but high variability
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CoV alone does not always indicate a good candidate for pull
The Run Ratio• The Proportion of Time a
Part is Used or Sold– A: 12/12=100%– B: 7/12=58%– C: 2/12=17%
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Frequency of Demand
Weeks DemandA B C
1 25 30 02 25 40 03 25 40 04 25 30 05 25 30 06 25 70 1507 25 0 08 25 0 09 25 0 0
10 25 0 011 25 60 012 25 0 150
Mean (Average) 25 25 25
Standard Deviation (Variation)
0.0 25.0 58.4
CoV 0.0 1.0 2.3
Run Ratio 100% 58% 17%
Kanban Calculator
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Helps determine good candidates for Pull– Performs all of the calculations automatically– Compares current situation vs. expected if part is converted to pull
Calculates needed stocking levels (bin sizes) to maintain desired service level– Requires Master Data integrity– Fields can be manually adjusted in the calculator
Kanban Calculator
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ZMMR is the first transaction that is run. This transaction gives us the Usage data for the materials.
MC.1 and MCBZ
ZMMR
ZMEV
ZPIRN
ZMEV is the second transaction that is run. This transaction gives us the master data for the materials.
ZPIRN is the third transaction that is run. This transaction gives us the Supplier for the materials.
MC.1 is the fourth transaction that is run. This transaction is used to get the 3 month average inventory and forecast data for the materials.
PK18PK18 is the last transaction that is run. This gives us the current Bin sizes for any materials currently on Kanban
Calculator Transactions
Calculator Demo
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Kanban
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Kanban
InternalWorks with Production Orders
for internally procured material between workcenters at a plant.
ExternalWorks with purchased parts,
auto-generating PO’s, and vendor replenishment.
Regular Inventory
ConsignmentInventory
SAP eKanban Master Data• Supply Area
– Person Responsible– Storage Location
• Control Cycle– Number of Bins– Bin Quantity– Replenishment Strategy
• In house Production• External Source• Stock Transfer
• Kanban Specific Vendor (if the vendor has multiple Ordering addresses)– New Info Record
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SAP eKanban External Procurement
• Step 1: Create Supply Area PK05• Step 2: Alter Material Master MM02• Step 3: Enter Materials into PK01• Step 4: Managing the eKanban board
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Step 1: Create Supply Area PK05
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First Transaction PK05The supply area
Step 1: Create Supply Area PK05
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Click New Entries to Setup Supply Area Information
Step 1: Create Supply Area PK05
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Step 1Enter the Supply
Area and description
Step 2Click drop down
for Storage Location be sure to choose the proper area (thus must be an IM
location)Step 3
Click drop down and select corresponding MRP controller code of the area
EP Step 2: Alter Material Master
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Enter “MM02” to alter the Material Master. Enter the desired Part Number and
Plant Number on the following screens
EP Step 2: Alter Material Master
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Select “MRP1” tab
You may want to create a special MRP controller for
eKanban Items
Change MRP Type to “ND”
EP Step 2: Alter Material Master
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Enter desired backflush location that items will be
received into.
Select “MRP 2” tab
Enter Lead Time vendor has committed to.
EP Step 2: Alter Material Master
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In the “MRP 4” tab click
“Organizational Levels”
Key in the IM storage location
you wish the items to drop into
once received
EP Step 2: Alter Material Master
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Change this Field to 1 (must be excluded
from MRP) and save.
This is also accessible through the transaction
MMSC
EP Step 3: Enter Materials PK01
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Enter transaction PK01 to create Kanban control
cycle
EP Step 3: Enter Materials PK01
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Enter Material Number
Enter Plant NumberEnter Supply Area
EP Step 3: Enter Materials PK01
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Enter “001” to issue PO’s and press “Enter”
Enter Number of KanbansEnter Kanban Quantity
EP Step 3: Enter Materials PK01
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Enter Purchasing Org
Enter Vendor #
Leave Agreement field blank unless using
Scheduling Agreement, then fill in Agreement #
and Line #
EP Step 3: Enter Materials PK01
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Kanban Indicator must be marked “X” for Sch. Agreements at the Line Item level
EP Step 4: Managing the eKanban board
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Enter transaction to view kanban Bin status and to process Kanban
order.
EP Step 4: Managing the eKanban board
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Enter Plant Number and Supply Area
EP Step 4: Managing the eKanban board
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In this view you can see the status of Bins in the Supply Area. This is where the operators can Empty the Bin in order to create a Purchase order to replenish
stocking level of the Bin. The initial status of the Bin is Wait”. There are several statuses that can be set. Check the legend to see. To set the Bin empty, Select both bins and click the “To Empty” button. Multiple Bins can be emptied at the
same time.
EP Step 4: Managing the eKanban board
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When a Kanban Bin is emptied the Bin icon will turn red.A Purchase order will automatically be released.
EP Step 4: Managing the eKanban board
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To change a Bin status to anything other than empty or full, Right click on a Bin and select “Kanban correction.”
EP Step 6: Managing the eKanban board
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Double click a line. Select the desired status. If you are keying it to full, enter a qty. Once complete, select the “Status/qty” button.
EP Step 6: Managing the eKanban board
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To set to the “Full” Status manually, select a bin and click “To Full”. This will make a FULL MIGO_GR! So be careful. Also, the bin will automatically be set
to Full once any partial/full Migo_GR has been posted against the PO.
EP Step 4: Managing the eKanban board
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To get any information about the bin, double-click on a bin. The PO can be altered by clicking the Replenishment button. The PO is also displayed here.
The time the Bin status was changed is displayed in EST.
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Triggering Kanban in SAP
Two Ways to Trigger Kanban:
1. Using the PK13N Transaction in SAP
2. Using the RF gun and Scanning the Kanban Label
SAP Kanban - Demand View
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SAP Transaction: PK13N Green Bin (FULL) = Bin is full or being used currently in production Red Bin (EMPTY) = Bin is empty (on order) Purple (WAIT) = Temporary status
Kanban RF Process
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1. When a Kanban Bin is Empty, Scan the Barcode Card for the Empty Bin
2. Flip the Status Card to “On Order”
BIN EMPTYBIN 2BIN 1
SAP RF Menu
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Using the RF Tablet, Select 6 3 1
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Reorder Point/Min. Max.• The reorder point ("ROP") is the level of inventory when a fresh
order should be made with suppliers to bring the inventory up to a fixed level or by a fixed quantity.
Reorder point quantity includes safety stock. The PO quantity depends on the lot size (e.g., fixed).
Settings
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• MRP Type = “ZR”• Lot Size Key = “HB” – Replenish to the
maximum stock level• Maximum Stock Level: This is a required entry.
It denotes the quantity of stock that may not be exceeded
• It calculates the Lot size using the following two Formulas and creates an order proposal using the greater of the two lot sizes calculated
• MRP Type = “ZR”• Lot Size Key = “FX” – Fixed Order Quantity• Fixed Lot Size: This is a required entry. It
denotes the quantity that will be procured in the event of a shortage.
• If the amount of the shortage is less than the fixed lot size, it is the fixed lot size that is procured (and not the lesser quantity that is actually required).
• If the amount of the shortage is greater than the fixed lot size, a multiple of the fixed lot size is procured. The system creates several purchase order proposals for this purpose.
Fixed Order QuantityMaximum Stock Level
Kanban vs. Reorder Point
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Does not include future demand
Operator triggers orders
Provides good visual control
Shop Floor Ownership
Forward Looking: includes spikes
System-driven (MRP) orders
BOMs MUST be accurate
Purchasing Ownership
KanbanReorder Point
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Questions