Kanban-Scheduling Agreement

[Former Member]

Hi All

What is Scheduling Agreement?

What are all the steps to create a scheduling agreement?

What are all the steps required to complete the scheduling agreement?

In my client we are having external procure kanban materials, In it parts are triggering through scheduling agreement, so could you guys please guide me

To understand the concept behind the scheduling agreement in Kanban external procure parts

Thanks in Advance

[Former Member · Accepted solution]

Hi,

In think one point left in the tejas resolution

If u want to procure the material through scheduling agreement then in the material master MRP4 view storage indicator should be "Storage location stock excluded from MRP".

Then only scheduling agreement strategy showing in the control cycle.

Regards

Vijay

[Former Member]

Hi,

What is Scheduling Agreement?

Scheduling Agreement

Definition

A form of outline purchase agreement under which materials are procured on predetermined dates within a certain time period.

Structure

A scheduling agreement consists of a number of items, for each of which a procurement type is defined. The following procurement types exist:

Standard

Subcontracting

Consignment

Stock transfer

Delivery of the total quantity of material specified in a scheduling agreement item is spread over a certain period in a delivery schedule, consisting of lines indicating the individual quantities with their corresponding planned delivery dates.

For scheduling agreement items involving subcontracting, you can specify the materials or components to be provided to the subcontractor with respect to each scheduled delivery of the ordered item.

Conditions can apply to the entire scheduling agreement. Conditions at item level apply specifically to the material to be supplied in each case.

Scheduling agreement releases (comprising a header and the actual delivery schedule) are issued to the vendor, instructing the latter to effect deliveries of the relevant material on the dates shown.

Costs can be apportioned among various Controlling objects via the account assignment.

Vendors can issue confirmations to the relevant purchasing organization indicating their compliance or non-compliance with scheduled delivery dates.

If you are using scheduling agreements, you can work with or without release documentation. This is controlled via the document type. Working with such documentation affords the advantage that you can display the valid scheduling agreement releases transmitted to a vendor over a certain period whenever necessary.

Note on the term "release": In MM Purchasing, this term is used A) as a generic term covering various kinds of order document issued against outline agreements (these may be release orders issued against contracts or - as here - scheduling agreement releases, i.e. types of rolling delivery schedule issued against scheduling agreements), and B) in connection with an internal approval or expenditure authorization process for purchasing documents. In both cases, "releasing" can be regarded as equivalent to "giving the green light" to go ahead with a certain action (e.g. to the vendor to deliver a certain quantity of materials, or to Purchasing to create or issue a PO for items requested by a user department).

With release documentation (in the standard system, document type LPA)

The schedule lines in the system have internal character. This means that you can change them in any way you wish. The schedule lines stored in the system are not transmitted to the vendor until you explicitly create a scheduling agreement release (which may take one of two forms: a forecast delivery schedule or a JIT delivery schedule).

The release documentation allows you to display the releases transmitted to a vendor over a certain period in order to establish exactly when you transmitted which information to the vendor.

Without release documentation (in the standard system, document type LP)

The schedule lines immediately have official character, i.e. they are immediately transmitted to the vendor the moment you save them (transmission time-spot 4 for messages). There is no release documentation in this case.

What are all the steps to create a scheduling agreement?

Creating a Scheduling Agreement

Use

You can create a scheduling agreement as follows:

Manually

You enter all data on the scheduling agreement manually.

Using the referencing technique

As reference document (the document you copy from), you can use:

Purchase requisitions

RFQs/quotations

Other scheduling agreements

Centrally Agreed Contracts

You can also mix the two options. (In this case, you use one document as a reference and then change or supplement desired items as required.)

If you wish to set up a scheduling agreement not with one of your vendors but with one of your own plants, you should create a stock transport scheduling agreement (scheduling agreement for longer-distance stock transfers).

Prerequisites

Before you create a scheduling agreement manually, you need the following information:

Account assignment

For each item to be posted to an account, you need the account assignment category and the account assignment data (for example, the number of the cost center to be charged). (See also Account Assignment.)

MPN material number

If you wish to order a material with a manufacturer part number (MPN), you need the MPN material number. See also: Manufacturer Part Number (MPN)).

Purchasing organization/purchasing group

You must assign the scheduling agreement to a purchasing organization and a purchasing group. The release (delivery schedule) then contains the same purchasing organization as the corresponding scheduling agreement.

KANBAN WITH SCHEDULING AGREEMENT :

1. External procurement from Vendor to Main Stores

Basic rules and Prerequisites:

u2022 MRP type should be u2018NDu2019 in MRP1 view of material master.

u2022 Availability check should be u201CKPu201D in MRP3 view of material master.

u2022 Material received from vendor is directly posted to unrestricted stock. Inspection at vendors place or vendoru2019s process control to ensure rejection free material. Inspection set up in Material master should be inactive.

u2022 Backflush is not required and Material is issued against a Pick List for Production Order.

Process steps:

1. Create supply area for Main stores. TC: PK05

2. If required, extend the material to main storage location. TC: MMSC

3. Make the necessary changes in the material master as explained above.

4. Create scheduling agreement. Put kanban indicator (X) in the additional data of item.

5. Create Kanban control cycle. TC:PKMC

6. Print the barcode. TC:PK17

7. Set the kanban status to EMPTY by scanning the barcode. TC: PKBC. A Schedule line will be generated for the supply of material to main stores.

8. View the demand source view. TC: PK13n

9. When the material is received at Gate, perform goods receipt into blocked stock (movement type 103). TC: MIGO

10. Once the material reaches Main stores scan the barcode to FULL. TC: PKBC (At the background GR with 105 movement will happen).

3. External procurement from Vendor directly to shop

Basic rules and Prerequisites:

u2022 MRP type should be u2018NDu2019 in MRP1 view of material master.

u2022 Availability check should be u201CKPu201D in MRP3 view of material master.

u2022 Backflush indicator is must. It can be defined in the routing or in the material master itself. If Backflush indicator is set in the material master, then the material will be backflushed through out the plant (Material issue not required against production order). However if you want the material to be backflushed only when it is used for certain products, then Backflush indicator should be set in the routing ( in the component allocation against operations).

u2022 Confirmation should be done for each operation in the production order either individually (CO11n) or collectively (CO15). Confirmation posts goods issue of components (relevant to confirmed operation/s) to production order

u2022 Maintain KN01 storage location in the field - production storage location of MRP2 view in the material master. Back flushing will take place from this location. Field - Storage location for external procurement should be KN01 in the material master.

u2022 Material received from vendor is directly posted to unrestricted stock. Inspection at vendors place or vendoru2019s process control to ensure rejection free material. Inspection set up in Material master should be inactive.

Process steps:

1. Create supply area for kanban stores (KN01). TC: PK05

2. Extend the material to Kanban storage location. TC: MMSC

3. Make the necessary changes in the material master as explained above.

4. Create scheduling agreement. Put kanban indicator (X) in the additional data of item.

5. Create Kanban control cycle. TC:PKMC

6. Print the barcode. TC:PK17

7. Set the kanban status to EMPTY by scanning the barcode. TC: PKBC. A Schedule line will be generated for the supply of material to kanban store.

8. View the demand source view. TC: PK13n

9. When the material is received at Gate, perform goods receipt into blocked stock (movement type 103). TC: MIGO

10. Once the material reaches shop, scan the barcode to FULL. TC: PKBC (At the background GR with 105 movement will happen).

IMPORTANT & USEFUL TCODES FOR KANBAN :

KANBAN BUSINESS PROCESS PROCEDURE

Create Supply Area

(Tcode: PK05)

Create Control Cycle

*(Tcode: PKMC) *

Kanban Transaction through Scanning or

Manual operation.

*(Tcode: PKBC) *

Event Driven Kanban u2013 Requirement generation.

*(Tcode: PK23) *

Goods Receipt u2013 India Specific Process

*(Tcode: PKBC) *

Kanban Board u2013 Demand Source view

*(Tcode: PK13N) *

Kanban Board u2013 Supply Source view

*(Tcode: PK12N) *

Kanban Evaluation

*(Tcode: PK18) *

Kanban Correction

*(Tcode: PK50) *

Kanban Locking & Deleting

*(Tcode: PKMC) *

Hope this helps.

Revert if any doubt.

Regards,

Tejas

Edited by: Tejas Pujara on Sep 26, 2008 6:07 AM