1. Kanban Management Implementation Guide
  2. Understanding Kanban Processing

Understanding Kanban Processing

A single program, Kanban Processing (P3157), manages the electronically-implemented kanbans by using two modes. One mode processes kanban consumption by item, while the other mode processes kanban supply by item. Use the consumption mode to access kanbans at a consuming location, and the supply mode to access kanbans at a supplying location by specifying one or a combination of criteria:

  • Item

  • Location

  • Supplier

  • Kanban identification

The Kanban Processing program has a processing option that specifies whether the program uses kanban consumption mode or kanban supply mode. User-defined code (UDC) table 31/KS specifies the kanban status:

  • 1 - Check-in

  • 2 - Check-out

  • 3 - Complete

  • 4 - Destroyed

Kanban consumption mode enables you to access all kanbans at a specified consuming location. After you locate items, depending on the status of each item, you can assign one of the statuses at a consuming location:

  • 1 - Check-in

  • 2 - Check-out

Kanban supply mode enables you to access all kanbans that need replenishment for items that are stored or produced at a specified supplying location. After you locate items, depending on the status of each item, you can assign one of the statuses at a supplying location:

  • 1 - Check-in

  • 3 - Complete

Kanban check-out occurs when the kanban container is empty and requires replenishment. You use the kanban check-out function to initiate the replenishment transaction. For example, if the system is set up to do so, you might scan the kanban card to check it out.

After you check out the kanban, the software initiates a replenishment action that depends on the source type of the kanban. The system uses both the supplying and consuming locations in the kanban definition to electronically process subsequent material movements, which can include inventory issues to orders and inventory transfers.

You check in a kanban to designate that the materials are available for use. Depending on the individual business practices, you can check in the kanban when the materials become available at the supplying location, or you can wait until the kanban materials have arrived at the consuming location to process the check-in transaction in the software.

In a two-phase kanban, a third kanban status, Complete, indicates that the refill is complete at the supplying location and the kanban can be checked in. Because only inventory transfer transactions occur for source type 2 kanbans, two-phase kanbans do not have a Complete status.