Describe the overall process of KANBAN step by step.

Currently, SAP KANBAN functionality is used only for procuring raw materials from outside vendors and transferring stock between plants.

Interplant transfers (STO's) use internally generated schedule lines for replenishment. Vendor kanban uses Summarized JIT Calls to communicate JIT requirements to suppliers.

Interplant Kanban is transparent to supplying plant. No additional work is required from the supplying plant.

Advantages:

1. Keeps raw material inventory in check 
2. Prevents overshipping 
3. Incorrect inventory balances, BOMs, etc. do not affect shipping 
4. Supplier schedules stay in sync with actual production

Disadvantages:

1. Requires more discipline from the supplier and the shop floor.  Example: controls in processing of scrap; maintenance and tracking of Kanbancards;adherence to ship windows.
2. More master data to maintain.
3. May hide procedural or data problems. 

T-codes for Kanbans

Control cycle is a pre-requisite for KANBAN. You can create it with t code PK01 

The major steps in KANBAN are:

1. Maintain supply area, PK05 
2. Create control cycle, PK01 
3. Kanban correction, PK31 
4. Quantity signal input, PK22 
5. Kanban board, PK13N

Read Also:
The Main Five Steps Of MRP Process

SAP PP Reference Books:
SAP Production Planning , Configuration, Interview Questions and Certification, Books

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