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Kanban-External Procurement

Introduction:

In my previous post we have seen the Kanban for the In house production. In this post
I will be writing about the Usage of Kanban in the External procurement.

In this Kanban we will viewing the usage in the External Procurement for the below procurement types
1.Purchase order.
2.Scheduling Agreement with Delivery schedule.

1. Kanban with Purchase order:

1.1 Master Data Requirements:

1.Material Master ( Procurement type F)
2.Vendor Master
3.Purchase Info Record( ME11)
4.Source list ( ME01)
5.Kanban Control cycle ( PKMC)

1.2. Configuration Requirement:
1. External procurement Strategy- OM12
· In the Control Type – You need to maintain with Purchase order

1.3. Requirement Over view.

· When Kanban Status is set to empty a Purchase order needs to be triggered.
· When the Kanban Status container is Full – A GR needs to be posted

1.4. Process Flow:
i.Create material master for the External procured material
ii.Create a vendor master; maintain the Purchase info record, Source list.
iii. Now Create a Control cycle with PKMC.
iv. In the control cycle maintain the External procurement strategy with
purchase order.
v.Also maintain the Kanban qty, no of kanban etc.
vi.Once the Kanban is done , now you can review the status of the Kanban in the Kanban Board
With Pk13n.
vii.Now the status will be set as wait as this is the initial status,
viii.Now you can right click the container and click the ‘Set next statuses.
ix.Now this will trigger the status to Empty. And you can review the information about this kanban And you can see a replenishment element purchase order has been triggered now.
x.This PO can processed for further actions like PO print, Sending to vendor eTc.
xi.Once when you receive Good, you can go the Kanban board and change the status as “Full”.
xii.Now this status change will post a Goods Receipt against the PO.
xiii.After this the next set of actions like Invoice verification, vendor payment etc can be triggered.
xiv. This cycle of activity can be continued for all kanbans of this kanban control cycle.

2. Kanban with Scheduling Agreement & JIT Schedules.
2.1 Master Data:

i.Material Master ( Procurement type F, JIT Indicator as 1)
ii.Vendor Master
iii. Scheduling Agreement ( Type LPA with JIT Forecast Profile)
iv. Purchase Info Record( ME11)
v.Source list ( ME01) with the Scheduling agreement
vi.Kanban Control cycle ( PKMC)

2.2. Configuration:
i.External procurement Strategy- OM12 with Control Key 7 Summarized JIT calls.
ii.SA Release Creation Profile.

2.3 Requirement Overview:
·When Kanban Status is set to Empty a JIT Call needs to be triggered.
·When the Kanban Status container is full – A GR needs to be posted against this JIT call.

2.4. Process Flow:
i.Create the material master for the externally procured material
ii.Create Scheduling agreement with LPA, Assign Profile and kanban indicator in the item additional data
iii.Assign the SA in the Source list.
iv. Create control cycle and maintain the External Proc Strategy and SA details.
v.Once the Kanban is done , now you can review the status of the Kanban in the Kanban Board With Pk13n.
vi.Now run the MRP run so that the demand triggers some schedule lines( Pre requisite- this is planned in MRP and it has some depended demands)
vii.We need to see the Schedule lines in the MDO4 screen.
viii.Now Release the SLines with ME84.
ix. After this review the status of the container in the Kanban Board PK13N.
x. Now you can right click the container and click the ‘Set next status’.
xi. Now this will trigger the status to Empty. And you can review the information about this kanban And you can see a replenishment element JIT Call has been triggered now.
xii.Again you can change the status from EMPTY to FULL in the same T.code PK13n.
xiii.This status change will do a Goods Receipt for the JIT Call.

This post helps you to do the start up of kanban for the External procurement, Kindly drop in your comments and clarifications. Also I will be posting about the SD-Kanban in the Next post..so keep watching.

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