The Kanban Process in SAP EWM

KANBAN is one of the most important processes in SAP EWM. Toyota introduced "KANBAN" for "Just In Time" production. KANBAN is now used as a general word for supplying, producing, or renovating a material when necessary. So, what is KANBAN and why do we need it?

Why should you use KANBAN?

KANBAN is the procedure you apply when you want to control the production and material flow, depending on the material stock in production. You’ll want to keep regularly ordered in production in small quantities. When the available stocks are consumed, a renewal of material or production is triggered. This is triggered by direct production.

The Kanban material can be produced in two ways:

  • If you’re producing the Kanban material that you use, the system will create a production order.
  • If you’re sourcing the material from a vendor, the system will create a purchase order.

What are the benefits of using KANBAN?

Using KANBAN is convenient in many ways. It helps reduce inventory and circulating products. This minimizes loss of capital and wasteful activities related to stocks. It gives flexibility in the face of changing customer needs and expectations. It helps optimize processes and facilitates better management.

Using KANBAN also simplifies production management. It provides coordination of processes with independent flows from one another. It ensures that each process gets the supply it needs and that every step of production supports the rest.

Creating a KANBAN process is a practical solution for enabling efficiency during production and preventing disruptions in the production process.


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