sap skills 2008 ewm

SAP Skills 2008 Conference

Extended Warehouse Management

Frank-Peter Bauer, SAP SCM-EWM Consulting23. Mai 2008

© SAP 2008 / SAP Skills 2008 Conference / H2 /

1. Warehouse Processes with SCM-EWM 5.0OverviewInbound ProcessesInternal ProcessesOutbound ProcessesCross Processes

2. What‘s new within SCM-EWM 2007OverviewLabor ManagementOperational Warehouse CockpitKit-to-StockBatch enhancementsGoods Receipt from Production

3. Demo

Agenda


1. Warehouse Processes with SCM-EWM 5.0OverviewInbound ProcessesInternal ProcessesOutbound ProcessesCross Processes

Agenda


Reducing operating costs and increasing efficiency

… while lowering working capital and

… improving customer service

Inbound Processes

Putaway StrategiesAdvanced Shipping NotificationGoods ReceiptCross DockingYard Management

Outbound Processes

Picking StrategiesGoods IssueProof of DeliveryDelivery Processing & DistributionValue Added Services

Internal Processes

Slotting and RearrangementInventory ManagementPhysical InventoryReplenishment

Maximum Logistics Speed with Pinpoint Accuracy

Extended Warehouse Management Value Drivers

Warehouse Monitoring Handling Unit Management

Task ManagementResource Management

Cross Processes

RF & BarcodingRFID


SCM EWM Deployment Options

Full SPM Landscape (CRM 2005, ERP 2005, SAP EWM 2005)

December 2006 – SAP EWM 2005 connects to SAP 4.6C – SAP ERP 2004

July 2007 –SAP EWM 2007 available as an add-on to SAP ERP 6.0

August 2007 – SAP EWM 2007 is released

November 2007 – SAP ERP 6.0 Enhancement Pack 3 is delivered


Enterprise, SCM EWM and Network Focus

SAP Warehouse Management in SAP ERP

(centralized or decentralized WM)

SCM Extended Warehouse Management

Enterprise Focus Network Focus

Centralized Scenario

SAPSAPERPERP

Logistics FI/CO

WM

Decentralized ERP Scenario

ERPERP

SAPSAPLESLES

SAPSAPLESLES

OtherERP

Dec WM = full SAP ECC system

WMWM

ERPERP

SCM EWMAdd-On

ExtendedWM

ExtendedWM

ExtendedWM

SAP SCM

ERPERP


Process Exceptions/Manage Work In Process

Receive ASN DataASN Validation

& CorrectionTransport Unit Arrival

ManageTransport Unit

Unload Transport Unit

Goods Receipt

Deconsolidation

(Internal Routing)

Putaway

Slotting

PutawayBin

Determination

Inbound Process Overview

Enhanced

Enhanced Enhanced

Enhanced

New New New New

New New

New

New


EWM - Inbound Delivery Processing

Inbound delivery notification (IDN): Represents the inbound delivery / ASN from the ERP System. Serves as reference for quantities.

Inbound delivery (ID): Warehouse request which serves as the reference for further processing in EWM.


Inbound Processes I

SlottingDetermination of the best storage concept for each product based on configurable criteriaConsiders product master data for warehouse space optimization and demand data for determination of the optimal warehouse section (e.g. fast access to A-products)Combination of Slotting and Rearrangement for optimal arrangement of products in the warehouse

ASN based delivery executionEnhanced Validation of delivery data

Goods receipt processSupports unloading through warehouse tasks Internal routing for flexible modeling of inbound processes e.g. unloading -> quality inspection -> deconsolidation -> putawayStock transparency in all steps of internal routing

Internal Processes Outbound Processes

Cross Processes

Inbound Processes


PutawayDetermination of the optimal putaway path for the ‘inverse picking’ process

Quality assurance and inspectionQuality inspection for new parts and returnsDynamic determination of quality inspection relevance based on product and supplier dataSamples for checking (with ERP and CRM integration)Results recording (mobile or web-based) and usage decision

Returns processingComplete integration in goods receipt processingUsage decision and follow-up actions, e.g. quality inspections

Hazardous/Dangerous goods managementHazardous substance management for putaway

Inbound Processes II

Internal Processes Outbound Processes

Cross Processes

Inbound Processes


ReplenishmentProactive and emergency replenishment

Physical inventoryDifferent inventory strategies e.g. for fast moving products or for high-value goodsPlanned and ad-hoc countsIntegration with mySAP ERP Inventory and Quality Management

Scrap managementFull scrappingPartial scrapping with elimination of the best n parts

Internal Processes

Outbound Processes

Cross Processes

Inbound Processes Internal Processes


WarehouseOrders

Order /Sourcing

RouteDetermination

Wave Management

PickingBin

Determination

PickingWorkAssignment

Packing Shipping StagingLoading

&Goods Issue

Process Exceptions/Manage Work In Process

Outbound Processes Overview

Enhanced EnhancedNew New

EnhancedEnhanced New New New


EWM - Outbound Delivery Processing

Outbound delivery Request: Represents the same data as ERP checked delivery. Serves as quantity reference for further processing in EWM

Outbound Delivery Order: Warehouse Request. Is comparable with ERP Delivery. All further picking is based on Outbound Delivery Order.

Outbound Delivery: Represents the physical GI Quantities that are posted in EWM. In Export cases this might be created before the GI posting in EWM. In other cases it will automatically be created with the GI Posting for the Outbound Delivery Order in EWM.

Outbound Delivery

Unchecked Delivery

Outbound Delivery Order

Outbound Delivery Request


Wave managementWave creation to control amount of work released to the warehouse floor at a specific time Manual or automatic wave assignmentRules based wave creation (e.g. Pick area, number of items, priority, …)Determination of the picking strategy: Pick-Pack-Ship versus Pick-Ship Determination of bins and stock allocation Determination of the optimal pick-pathConsidering of customer delivery time (route determination)Case calculation incl. work center determination in case packingPrinting labels and papers for picking Monitoring and alert handling

Outbound Processes I

WM RequestItem 1Item 2Item 3

WaveWave WarehouseOrder x

WO Item 1WO Item 2WO Item 3

Cross Processes

Inbound Processes Internal Processes Outbound Processes


KittingKit to order

Delivery processingShipping process

Flexible outbound process modelingFlexible determination of parts outbound processes (e.g. picking -> packing -> kitting -> staging -> loading)Stop sequence vehicle loading is supported

Outbound Processes II

Cross Processes



Warehouse order creationWarehouse order creation to combine several tasks to warehouse orders in order to optimize work packages for warehouse employees

Resource managementDefinition and monitoring of resourcesPlanning by early preview of locations

Central monitoring and exception handlingProcess tracing and alert handlingControlling of resourcesConfigurable follow-up actions

Rearrangement

Cross Processes – Overview I


Cross Processes


A list of warehouse requests are created

These warehouse requests will be groupedinto one wave

Based on the wave numerous WTs will becreated

All WTs will pass the „Black Box“ warehouseorder creation. According to the customizingsome warehouse orders containing the WTswill be created.

Cross Processes: Warehouse Order Creation Process

WHR1WHR1WHR1WHR1WHR 1

WHR1WHR1WHR1WHR1WT 1WHR1WHR1WHR1WHR1WT n

WO 1

WHR1WHR1WHR1WHR1TO

WO 2

WHR1WHR1WHR1WHR1TO

WO n

WHR1WHR1WHR1WHR1TO

Warehouse OrderCreation

Wave 1


Cross Processes: Resources Execute Work in Warehouse

Resource Management: Users and equipment combination which can be defined as being allowed to execute work in the warehouse.

RF (automatic or manual)Non-RF environment (manual)Tracked and Displayed in the Warehouse MonitorVisibility of stock on Resources

Resource Type:Groups resources with similar technical or physical characteristics

Resource Group:Groups resources for queue assignment purposes


Cross Processes – Overview II


Cross Processes

Value Added Service (VAS)Additional value based activities performed to a part, like preservation, packaging, assembly, tapping or price marking

De- /ConsolidationSorting of mixed handling units Dynamic determination of de-/consolidation based on product and supplier dataUser friendly, user interface RF-Dialogue and Desktop-Dialogue

Yard management Door planningAssignment of vehicles to doors

Cross docking Planned Cross-Docking (Transportation Cross-Docking)Opportunistic cross-docking (Push Deployment or Picks from Goods Receipt)

Bonded warehouse/foreign trade support


Cross Processes: Value Added Services

Value Added Service (VAS):An operation performed on materials, which enhances their value,worth, functionality or usefulness. Value added services are performed by workers in work centers.

Examples such as:PreservationPackagingAssemblyKittingTaggingPrice marking

VAS Activity:The VAS activity is the action performed at the work center. Reference a packaging specification.RF enabledSeveral work steps from the packaging spec can be combined at one work center.Example: Pack product into Carton (Size M) and label it.


Cross Processes: Cross-Docking

Transport Cross-Docking (TCD) Stock is planned to be forwarded to the end facility/customer via one or more intermediate facility. Planned Cross-Docking

Push Deployment (PD)Planning decision (from SAP APO) to forward stock from one facility to another. The decision is made upon GR and is based on current demand/stock situations (including forecast demand). Opportunistic Cross-Docking

Pick from Receipt/Receiving (PFR)SAP CRM decision, based on back order situation, to forward stock to a customer or another facility directly from receiving. Opportunistic Cross-Docking


2. What‘s new within SCM-EWM 2007OverviewLabor ManagementOperational Warehouse CockpitKit-to-StockBatch EnhancementsGoods Receipt from Production

Agenda


Overview of Functional Enhancements in EWM 2007

Labour Management

Operational Warehouse Cockpit

RFID enablement

Kitting enhancements (Kit-to-stock)

Batch Enhancements

Material Flow Systems

Goods Receipt from Production

Delivery Creation in EWM

ESA Enabling

GI direct sales and account assignment in EWM

Serial Number Enhancements


Labour Management

Operational Warehouse Cockpit

RFID enablement


Batch Enhancements




ESA Enabling



Functional Enhancements in EWM 2007


Labor Management-Objectives

For an effective management of the labor supply chain, it is necessary to:Get the right person to the right place at the right timeTrack people throughout the day and measure performance on individual tasksMeasure the quality and safety of each individualProvide alerts when performance falls below expectationsCalculate costs and incentives for employeesSimulate impacts to labor as a result of changes to the process flow or inventoryMake visible the cost and efficiency of individual employees, facilities, teams and the enterprise

Labor management modules are used to better manage the time and productivity of warehouse workers. They consists of the ability to plan, measure, view and simulate labor activities.


Labor Management – Measurement & Key Performance Indicators

Labor Measurement & Key Performance IndicatorsTrack people throughout the day and measure performance on individual tasksCapturing direct versus indirect timeInterface to HR

Time and Attendance Compensation and Incentives

Resource Definition (processor and equipment)KPI builder


Labor Management – Planning and Simulation

Planning & SimulationStandards creation and feedback:

Traditional Measurement: Measuring Lines Per Hour, Cases Per Hours, etc.Engineered labor standards: How long should it take to do a specific task?

Workload and capacity planning for different aspectsCalculation engine / Formula editorWorkforce and load simulationOperational planning


Labor Management - Visualization

VisualizationEvents and AlertsExceptionsWorkforce Analytics and Reporting:

Actual vs. planned task timeReview performance data across multiple facilities along common metrics

BI IntegrationExtractorsBI contentStrategical planningDrill Down Visibility


Operational Warehouse Cockpit e.g. Labor Management

Intended for Supervisor and Warehouse ManagerMonitors team performanceMonitors the performance of areas or the whole warehouseAt-a-glance view of several key figures enables you to react to critical situations quickly


Labour Management

Easy Graphic Framework

RFID enablement


Batch Enhancements




ESA Enabling





Kitting in EWM 2007 - Kit-to-stock Scenarios Possible

Kit-to-stock (KTS)Start in ERP based on production orderStart in EWM based on manual VAS

With or without BOMGoods movement postings

in VAS planning, execution UIin delivery UIs

Reverse Kitting (KTR)Start in EWM based on manual VASWith or without BOMGoods movement postingsin VAS planning, execution UIin delivery UIs


Kit to Stock Process in EWM 2007

Picking ofcomponents

Kitting bin

Post components GI

Post kits GR

Packing

Putawayof kits

Outbound

Inbound


Labour Management


RFID enablement


Batch Enhancements




ESA Enabling





Batch Enhancements - Functional Overview 1

Batch search in the pick processReplicating batch selection criteria from ERP to EWM and save them with reference to the ODR- and ODO-itemShow the batch selection criteria in the ODR and ODO UI Batch search during pick WT creation based on the replicated batch selection criteriaDefine additional batch selection criteria for the batch search using a BAdINew F4-helps to search batches by products or by product and batch characteristics. E.g. Search all red batches of product P1

Batch creation and valuationBatch creation and valuation during inbound delivery creation - Standard characteristics (Expiration date, COO) and free characteristicsBatch valuation during the quality inspectionChange mode in the batch master transaction


Batch Enhancements - Functional Overview 2

Batch status managementPrevent from goods movement posting in case of a restricted batch (Customizing and BAdI)Prevent from warehouse task creation in case of a restricted batch (Customizing and BAdI)Showing the batch status is each UI where stock is displayed

Documentary batchNew flag in the product master in order enable a product for using documentary batchesReport to determine and update the documentary batch relevance for each EWM product by using the ERP settings.Entering documentary batches in the inbound/outbound delivery order and corresponding warehouse task


Labour Management


RFID enablement


Batch Enhancements




ESA Enabling





EWMERP

Delivery Creation with ASN in EWM 5.0

advantage: exact information about incoming goods

disadvantages:information might be incorrectuser has to work in ERP and EWM if there was no ASN or to create the inbound in EWM without immediate validation against purchase order data

POVENDOR

PO purchase order

ASN Advanced Shipping Notification

IDN Inbound Delivery Notification

ID Inbound Delivery

ID IDN

ID

activ

ate

send ASN


EWMERP

Delivery Creation Using Expected Goods Receipt in EWM 2007

POVENDOR

PO purchase order

ASN Advanced Shipping Notification

IDN Inbound Delivery Notification

ID Inbound Delivery

GRN Goods Receipt Notification

EGR Expected Goods Receipt

ID IDN

IDac

tivat

e

send ASN

GRN

EGR

activ

ate

create EGR from PO documents

send ID to ERP

valid

ate

agai

nst P

O

ID

copy

ID

send goods

post GR

ID

send GR message to ERPpost GR

ID


Transactions in Goods Receipt in EWM 2007

/SCWM/GRN: Selection of goods receipt notifications (GRN)

/SCWM/EGR: Selection for expected goods receipt (EGR) documents

/SCWM/GRWORK: Selection of EGR’s and inbound delivery (ID) todisplay expected workload in GR

/SCWM/GRPI: Selection for ID’s based on internal production orders to prepare GR for production orders

/SCWM/GRPE: Selection for ID’s based on external procurement to prepare GR for procurements

/SCWM/GR: Selection of ID’s to streamline GR process


3. Demo

Agenda


Kontakte

Frank-Peter BauerEWM ConsultingSAP Deutschland AG & Co.KGMobil: 01 60 / 360 34 50email: [email protected]


Back–up


Outbound Processes I: Wave Template Definition

Wave TemplateServes as an infrastructure for automatic Wave creation, holds the required attributes for Wave generation. The Condition Technique is utilized to determine the Wave Template ID according to Warehouse Request Header & Item attributes.In automatic wave creation, Template ID is determined for Warehouse Request itemWeekdays profile can be utilized for further filteringEach Template ID may have several Time attributes optionsOptional Capacity Profile

Maximum number of itemsMaximum weightMaximum volumeMaximum capacityMaximum number of wavesError / warning flag on capacity overload


Outbound Processes I: Finding the right Wave

Wave 1003

• GI Time for WHR Item 1 is: 19.07. 20:00h

• WHR1 Item1 is Created and the Wave Planning Finds Template 4711

Wave 1002

• GI Time for WHR Item 2 is: 19.07. 17:00h

• WHR2 Item2 is Created and the Wave Planning Finds Template4711

current time

Time15.07. 16.07. 18.07. 19.07.17.07.

WHR1 Item1

WHR2 Item2

PlannedGI time

• Wave Template 4711: Weekday Profile: Wave is due once a day on Monday – Friday (Release Time: 10:00h, Loading Completion Time: 18:00h)

Wave 1001

Wave 1002

Wave 1003

Wave template4711


Cross Processes I: Warehouse Order Creation Rules in Action

Single WT2

Wave Release / WT Creation

1

AA1

AA2

AA3

3

WOCR1

WOCR2

WOCR3

AA3 AA2 AA1

WOCR4

WOCR5

WOCR2

WOCR5

Warehouse Order Creation Rules per Activity Area

Warehouse Order Creation Rule Search4

Apply Item Filter of BR

AA1

PA2

PA3AA3

AA2

5Σ Subtotals

AA1

PA2

PA3

Consolida-tion Group

ΣΣ

AA2

AA3

6

Filter on subtotals level

PA1

PA2

PA3

ΣAA2

AA3

AA1

Σ

7AA1

AA2

AA3

9

WO1

WO2

WO3

8

ApplyLimits

and

CreatePickHUs


Outbound Processing3rd step: Warehouse Order (WO) Creation in EWM

Procedure:After the wave was released EWM creates warehouse tasks (WT).EWM bundles these WT into WO‘s using WO creation rules.EWM creates for every WO the last starting date (LSTD).EWM uses backword scheduling to determine LSTD considering:

Picking Completion time (wave attribute)Extract Time determination for each WTPreperation Time (WO creation rule attribute)

Created WO will be assigned to queues.EWM assigns WO with highest priority (earliest LSTD) to resource.

Prep. time WT1 WT2 WT3

t

Picking Compl.time

Last start.date

Example:WO consists of 3 WT:


Labour Management


RFID enablement


Batch Enhancements




ESA Enabling





DirODO Business Processes in EWM 2007

DirODO (Direct Outbound Delivery Order): Document without reference to preceding documents, such as sales orders or stock transport orders,directly triggered in the warehouse.

Supports following scenarios

Direct Sales / Pick-up of goods / Account Assignment

Direct Ship (Push / Pull scenarios)

Scrapping => already shipped in EWM 5.0

Kit-to-stock


Labour Management


RFID enablement


Batch Enhancements




ESA Enabling





Account Assignments – Process Internal Consumption in EWM 2007

Unplanned Consumption Planned Consumption

A warehouse clerk needs some product for cost center, project, order

The warehouse clerk comes at a counter to pick up the needed products

The warehouse clerk plans his requirement by creation of outbound delivery (in ERP using transaction MIGO)

The clerk at the countercreates an outbound delivery order for the consumption (in EWM)

The warehouse clerk comes at a counter to pick up the needed products

Warehouse activity starts in order to bring the products to the counter

GI is posted, products are consumed and costs are debited to the cost center, project, order


Account Assignments - General

“Account Assignment Object”An object to which costs or quantities are posted in Controlling.Account assignment objects can be objects such as cost centers, orders and projects

Account assignment objects are defined within a “controlling area”An organizational unit within a company, used to represent a closed system for cost accountingpurposes.

A controlling area may include single or multiple company codes that may use differentcurrencies. These company codes must use the same operative chart of accounts.

We need:Account Assignment Categories (Cost Center, WBS Element, Order,…)

and the definition of the Account Assignment Objects per Controlling Area(?)


Labour Management


RFID enablement


Batch Enhancements




ESA Enabling





Ordering of Specific Serial Numbers*

Outbound Delivery

ERP

EWM

Outbound Delivery Order

Warehouse Task Creation

Warehouse Task Confirmation

Outbound Delivery Request

SD Sales Order Predetermined serial numbers are specified via sales order in ERP system

Predetermined serial numbers are forwarded via the ERP outbound delivery to EWM outbound delivery request and outbound delivery order

Predetermined serial numbers are picked (Pick Denial possible)

• *requires EhP 3


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sap skills 2008 ewm

Documents

predetermined

party web

expected goods

outbound delivery

production

outbound delivery

warehouse

account assignment