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

1. Production Supply with SAP EWM
FUNCTIONAL OVERVIEW
© 2014 Victor Cerullo – All Rights Reserved

2. Contents
1. Objectives
2. Key concepts
3. Examples
• Pick Parts Staging
• Release Order Parts Staging
• Crate Parts Replenishment
• Production Supply with Kanban
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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.
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4. Key concepts
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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.
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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
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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)
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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.
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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
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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.
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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.
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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.
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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.
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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.
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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.
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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.
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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.
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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.
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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.
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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.
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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.
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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.
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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.
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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.
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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.
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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.
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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.
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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.
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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.
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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.
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31. Version 1.0 (Jan 2014)
Thank you!
Victor Cerullo
cerullo@mac.com
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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
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