Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.

Production Supply with SAP EWM

15,705 views

Published on

Functional overview of SAP ERP manufacturing integration with Extended Warehouse Management.

Published in: Technology, Business

Production Supply with SAP EWM

  1. 1. Production Supply with SAP EWM FUNCTIONAL OVERVIEW © 2014 Victor Cerullo – All Rights Reserved
  2. 2. Contents 1. Objectives 2. Key concepts 3. Examples • Pick Parts Staging • Release Order Parts Staging • Crate Parts Replenishment • Production Supply with Kanban PRODUCTION SUPPLY W ITH SAP EW M – FUNCTIONAL OVERVIEW 2
  3. 3. Production Supply with SAP EWM: Objectives This presentation provides a functional overview of the production supply methods available in SAP Extended Warehouse Management. Production supply is illustrated by means of examples performed on a SAP SCM EWM system configured with standard BC sets. By attending this presentation you will have a clear understanding of the material staging process in SAP EWM and how it integrates to manufacturing through the PP module of the ERP component. PRODUCTION SUPPLY W ITH SAP EW M – FUNCTIONAL OVERVIEW 3
  4. 4. Key concepts PRODUCTION SUPPLY W ITH SAP EW M – FUNCTIONAL OVERVIEW 4
  5. 5. Production Supply Production supply is the staging of raw and semi-finished component materials to a "production supply area" (PSA) close to the production line. The PSA is a master data object in EWM; one or more production storage bins can be assigned to the combination PSA/product in a warehouse. Staged materials are consumed during the manufacturing process and the consumption posting reduces their stock levels in the PSA; the automatic consumption posted at order confirmation is called backflushing. Goods receipt from production is posted through an inbound delivery and it can be automated upon order confirmation; putaway tasks for the finished products are created against the inbound delivery. PRODUCTION SUPPLY W ITH SAP EW M – FUNCTIONAL OVERVIEW 5
  6. 6. Organizational Structure for Production Supply Main storage and production line within the same EWM warehouse AFS (F2) AFS (F2) MAIN STORAGE STAGING PSA Single warehouse without separate production storage location AFS (F2) PRODUCTION (P2) MAIN STORAGE STAGING PSA Material staging is executed in EWM through: • Posting change document • Internal stock transfer • Manual task creation The production Sloc is often separate from the main storage AFS Sloc for planning reasons. Single warehouse with separate production storage location PRODUCTION SUPPLY W ITH SAP EW M – FUNCTIONAL OVERVIEW 6
  7. 7. Organizational Structure for Production Supply Main storage and production line not in the same EWM warehouse AFS (F2) MAIN STORAGE PRODUCTION (P2) STAGING PSA When the PSA is in a separate EWM warehouse, material staging is executed by means of outbound and inbound delivery (ERP stock transfer). Separate EWM warehouse for production PRODUCTION AFS (F2) MAIN STORAGE STAGING PSA When the PSA is not managed in EWM, material staging is executed through an outbound delivery (transfer posting). IM-only production storage location (non-EWM-managed) PRODUCTION SUPPLY W ITH SAP EW M – FUNCTIONAL OVERVIEW 7
  8. 8. Material Staging Methods ERP control cycle records specify the production supply method for component materials, that is how the staging is calculated and accomplished.  Pick parts: the staging quantity of BOM components is determined based on individual orders in the ERP;  Release order parts: the staging quantity of BOM components is determined based on multiple orders in the ERP;  Crate parts: the staging quantity is independent from orders and materials are not necessarily part of the BOM; staging is executed in EWM when the PSA stock falls below minimum and the replenishment quantity is usually a multiple of a fixed-size container;  Manual staging: materials are manually staged in EWM by creating internal warehouse tasks to replenish the PSA. PRODUCTION SUPPLY W ITH SAP EW M – FUNCTIONAL OVERVIEW 8
  9. 9. Material Staging Methods Material staging method Staging transaction Pick parts • CO02 (production order) • COR2 (process order) • MF60 (pull list) Process flow for main storage and production in same EWM warehouse ERP outbound delivery for transfer posting (mov. type 411), posting change in EWM. No change in AFS stock levels if production Sloc is not separate. Process flow when not in same warehouse • IM-only PSA: ERP outbound delivery for transfer posting (mov. type 411), ODO in EWM. • Separate EWM warehouse: two-step stock transfer in ERP with obd. and ibd. deliveries (mov. types 313/315), stock in transfer, ODO in sender EWM, ID in receiver EWM. Release order parts MF60 (pull list) Same as pick parts, but no reference to order. Production Sloc must be separate from AFS. Same as pick parts, but no reference to order. Crate parts • /SCWM/REPL • /SCWM/IM_ST followed by /SCWM/TODLV_M EWM-initiated process. Confirmation of replenishment WT produces transfer posting in ERP when AFS is separate from production Sloc (mov. type 411). N/A (see kanban external procurement strategy). Manual staging • /SCWM/ADPROD • /SCWM/ADHU • RF AHPRTO, AHHUTO Same as crate parts, with no warehouse request (WT creation only). N/A PRODUCTION SUPPLY W ITH SAP EW M – FUNCTIONAL OVERVIEW 9
  10. 10. Material Staging Methods Staging for repetitive manufacturing is supported through the release order parts method to an IM-only PSA via pull list (MF60). Kanban is a production supply method where replenishment from internal and external sources is triggered by the material quantity falling below a certain limit (like in crate parts staging). With kanban it is possible to automate the creation of internal stock transfers, STOs, purchase orders and production orders for the component materials and monitor the PSA replenishment by means of visual queues of "cards" showing the filling progression of empty rolling containers. The kanban process supports both EWM-managed and IM-only PSAs, with either one-step or two-step stock transfer procedure, in-house production, external procurement and withdrawal to cost center for bulk materials. PRODUCTION SUPPLY W ITH SAP EW M – FUNCTIONAL OVERVIEW 10
  11. 11. Examples NB: in the following examples the ROD storage location is called 009I, the AFS storage location is called 009O and the production storage location is called 009P. PRODUCTION SUPPLY W ITH SAP EW M – FUNCTIONAL OVERVIEW 11
  12. 12. PICK PARTS (1) Pick Parts Staging Following order release, the execution of material staging creates an outbound delivery for the BOM components that is distributed to EWM as a posting change document. The outbound delivery is used to replenish the production Sloc with stock from the AFS Sloc by means of an IM movement type 411. PRODUCTION SUPPLY W ITH SAP EW M – FUNCTIONAL OVERVIEW 12
  13. 13. PICK PARTS (2) Pick Parts Staging Tasks created against the posting change are confirmed. As a result, a transfer posting is performed in the ERP. PRODUCTION SUPPLY W ITH SAP EW M – FUNCTIONAL OVERVIEW 13
  14. 14. PICK PARTS (3) Pick Parts Staging GR from production is executed after order confirmation, generating an inbound delivery for the product; this can be either automated or posted with MIGO as in this example. PRODUCTION SUPPLY W ITH SAP EW M – FUNCTIONAL OVERVIEW 14
  15. 15. PICK PARTS (4) Pick Parts Staging The inbound delivery is distributed to EWM, where a putaway task is then processed. At task confirmation, a transfer posting from ROD to AFS is performed in the ERP system. PRODUCTION SUPPLY W ITH SAP EW M – FUNCTIONAL OVERVIEW 15
  16. 16. PICK PARTS (5) Pick Parts Staging GI for the components can be either automated (backflushing) or posted with MIGO. This creates an outbound delivery that is distributed to EWM and automatically processed. As a result, the consumption posting is performed in the ERP. PRODUCTION SUPPLY W ITH SAP EW M – FUNCTIONAL OVERVIEW 16
  17. 17. RELEASE ORDER (1) Release Order Parts Staging The staging of release order parts is obtained through the pull list transaction (which can be used also for pick parts). This staging method totalizes multiple requirements by considering several production and process orders altogether. Several filtering criteria can be applied to refine the selection in accordance with the business needs. PRODUCTION SUPPLY W ITH SAP EW M – FUNCTIONAL OVERVIEW 17
  18. 18. RELEASE ORDER (2) Release Order Parts Staging The staging of the components selected from the pull list generates an outbound delivery that is distributed to EWM as a posting change document. PRODUCTION SUPPLY W ITH SAP EW M – FUNCTIONAL OVERVIEW 18
  19. 19. RELEASE ORDER (3) Release Order Parts Staging Warehouse tasks are created against the posting change document to move the components to the PSA. Task confirmation makes stock available for consumption; a transfer posting is then automatically executed in the ERP as the stock type changes from AFS to production. PRODUCTION SUPPLY W ITH SAP EW M – FUNCTIONAL OVERVIEW 19
  20. 20. CRATE PARTS (1) Crate Parts Replenishment Crate parts replenishment is executed in EWM by defining control quantities. A transaction evaluates the stock in the PSA against the control quantities to determine the need for a replenishment. The same transaction creates an internal stock transfer to replenish the PSA bin with AFS stock. PRODUCTION SUPPLY W ITH SAP EW M – FUNCTIONAL OVERVIEW 20
  21. 21. CRATE PARTS (2) Crate Parts Replenishment Warehouse tasks are created against the replenishment transfer. Once the tasks are confirmed, a transfer posting takes place in the ERP system to reflect the stock type change from AFS to production. PRODUCTION SUPPLY W ITH SAP EW M – FUNCTIONAL OVERVIEW 21
  22. 22. CRATE PARTS (3) Crate Parts Replenishment An equivalent replenishment process can be achieved by manually creating an internal stock transfer for the component materials, as shown here. PRODUCTION SUPPLY W ITH SAP EW M – FUNCTIONAL OVERVIEW 22
  23. 23. KANBAN (1) Production Supply with Kanban The replenishment strategy for kanban materials is assigned to their control cycle: here a stock transfer from the AFS Sloc to the production Sloc within the same EWM warehouse is used. PRODUCTION SUPPLY W ITH SAP EW M – FUNCTIONAL OVERVIEW 23
  24. 24. KANBAN (2) Production Supply with Kanban When a container status is set to empty, it shows red on the kanban board. Depending on settings, this can immediately trigger a replenishment to the PSA for the kanban quantity. PRODUCTION SUPPLY W ITH SAP EW M – FUNCTIONAL OVERVIEW 24
  25. 25. KANBAN (3) Production Supply with Kanban The replenishment is obtained through an outbound delivery with no order reference; this delivery is distributed to EWM as a posting change document. Warehouse tasks are created against the posting change to move the components from main storage to the PSA. PRODUCTION SUPPLY W ITH SAP EW M – FUNCTIONAL OVERVIEW 25
  26. 26. KANBAN (4) Production Supply with Kanban With the confirmation of the replenishment tasks, the stock type changes from AFS (F2) to production (P2). The available stock of the replenished materials in the PSA bin is increased by the quantity of the confirmed tasks. PRODUCTION SUPPLY W ITH SAP EW M – FUNCTIONAL OVERVIEW 26
  27. 27. KANBAN (5) Production Supply with Kanban The stock type change in EWM produces a transfer posting in the ERP. The container status changes to full and it shows green on the kanban board. PRODUCTION SUPPLY W ITH SAP EW M – FUNCTIONAL OVERVIEW 27
  28. 28. KANBAN (6) Production Supply with Kanban (External Procurement) Empty External procurement replenishment strategies allow for automatic PO and STO creation. In this example an STO from a different EWM plant is created for a semi-finished kanban material when emptying a container. PRODUCTION SUPPLY W ITH SAP EW M – FUNCTIONAL OVERVIEW 28
  29. 29. KANBAN (7) Production Supply with Kanban (External Procurement) The replenishment ODO is then picked and goods issued at the source EWM plant, generating an inbound delivery for the requesting EWM plant. PRODUCTION SUPPLY W ITH SAP EW M – FUNCTIONAL OVERVIEW 29
  30. 30. KANBAN (8) Production Supply with Kanban (External Procurement) Following GR posting at the receiving plant, the kanban container status changes to full (green). On the ERP side, material documents are posted reflecting the stock transfer, the goods receipt and the transfer posting from ROD to production. PRODUCTION SUPPLY W ITH SAP EW M – FUNCTIONAL OVERVIEW 30
  31. 31. Version 1.0 (Jan 2014) Thank you! Victor Cerullo cerullo@mac.com Copyright Notice This document is protected by international copyright laws and it should not be reproduced, in whole or in part, without consent of the author. Disclaimer The examples contained in this presentation are intended for illustration purposes only. The information contained in this presentation is targeting an audience of business consultants with specialized knowledge. Features of SAP software applications described in this document may vary with future releases: you should read the release notes and check for modifications and enhancements. The author is not responsible for any damage caused by improper use of this information. SAP is a trademark of SAP AG, Neurottstrasse 16, 69190 Walldorf, Germany. © 2014 Victor Cerullo – All Rights Reserved 31

×