## Planning for Kanban Management

This chapter discusses planning for kanban management.

### Understanding Planning for Kanban Management

In the current business environment, you might want to present the supplier of procured kanban items with the demand schedule for the item. To support the generation of a demand schedule, Material Requirements Planning (MRP) must first generate the component demand for kanban-controlled items. Non-procured, kanban-controlled items also use this demand to calculate size.

MRP Schedule Generation for Kanban Management

When you run a material requirements planning (MRP) generation, the system explodes the component demand and stores them in time series buckets. When the component item is kanban-controlled, the system generates the planning schedule and associated planning messages. However, you cannot view or process these messages. You run the MRP generation for kanban-controlled items only to generate the demand. All replenishment action for kanban-controlled items should originate from the Kanban Processing program (P3157).

A kanban that is sourced by a work center creates a work order or a rate schedule that generates component demand requirements in MRP. MRP creates planning messages for a kanban-controlled item and its components. You cannot use messages that are generated for a kanban-controlled item to initiate replenishment.

A kanban that is sourced by an outside supplier initiates replenishment through a purchase order. MRP generates order messages for such items, but they cannot be processed.

When the MRP generation is complete, MRP messages for kanban items do not appear in the MRP Detail Message Review program (P3411) . The system does not allow the processing of messages for kanban items in the MRP Detail Message Review program (P3411) or the MRP/MPS Detail Message Processing program (R3411) .

Note. The system does not differentiate the messages for kanban items from messages for regular items in any way other than disallowing processing.

All other MRP processing, such as pegging, time series, multiplant, minimum, and maximum, works the same way for kanban-controlled items as it does for regular items.

When MRP generation is complete, you can generate the demand schedule and send information to the supplier.

Demand Schedule Generation for Kanban Management

When material requirements planning (MRP) generation is complete, the planner runs the demand schedule extraction to generate the supplier item demand schedule. The system processes the MRP messages that it generates for both kanban-controlled and non-kanban items.

Before you can successfully use supplier release scheduling (SRS) for kanban-controlled items, you must define the demand by running the MPS Regeneration program (R3482) or inputting a manual (ad hoc) release schedule.

Note. You do not need to create a blanket order for kanban-controlled items. You do not need to set up the supplier release master record in the Supplier Schedule Master Revisions program (P4321) because the kanban master identifies the supplier for the kanban-controlled item.

When SRS is set up, the system generates the demand schedule in the Vendor Schedule Quantity table (F3430).

Each time you generate the demand schedule, the system verifies whether an item is kanban-controlled, but it does not generate releases or purchase orders (neither blanket nor non-blanket, for kanban-controlled items), even when a supplier is commitment for the item.

The purchase order is released at the time of kanban check-out. If you set up an outbound transaction (EDI 862), the system publishes it.

The Supplier Release Schedule Generation program (R34410) ignores release generation for kanban-controlled items.

You can set a processing option that enables you to publish the demand schedule in the form of an outbound transaction (EDI 830).