Intelligent ERP Update: Manufacturing and Supply Chain in SAP S/4HANA Cloud 1908
This blog provides an overview of innovations in SAP S/4HANA Cloud 1908 for Manufacturing and Supply Chain.
Here is the table of contents:
|Business Area||Scope Item||Innovation|
|Production Planning||Demand-Driven Buffer Level Management (1Y2)||Predictive Material and Resource Plannung (pMRP)|
|Production Planning||Production Capacity Leveling (3LQ)||CapacityPlanning: Schedule Production – Dispatch to Sequence|
|Production Planning||Production Capacity Leveling (3LQ)||Capacity Planning: Monitor Work Center Schedules|
|Order Promising||Advanced Available-to-Promise Processing (1JW)||Advanced ATP: Product Allocations (PAL) to model capacity based constraints|
|Order Promising||Basic Available-to-Promise Processing (2LN)||Advanced ATP – Backorder Processing (BOP): Improved usability|
|Inventory Management||Stock Transfer without Delivery (BMH)||Overdue Stock In Transit (SIT) Situations|
|Warehouse Management||Warehouse Goods Receipt from Repetitive Manufacturing (41U)||Improve on-time delivery with goods receipt from repetitive manufacturing|
|Warehouse Management||Warehouse Inbound Processing (3BR), Warehouse Production Integration (3DV), Warehouse Goods Receipt from Repetitive Manufacturing (41U)||Process Warehouse Tasks – Putaway|
|Warehouse Management||Warehouse KPIs – Operations|
|Production Operations||Just-In-Time Supply to Customer from Stock (2EM)||Just-In-Time Processing|
My video guides you through four selected innovations from the above table of contents:
- Predictive Material and Resource Planning
- Overdue Stock in Transit Situations
- Availability Check against Capacity in Product Allocation
- Warehouse Goods Receipt from Repetitive Manufacturing
Predictive Material and Resource Plannung (pMRP)
Predictive Material and Resource Planning (pMRP) is our new simulative mid- and long-term planning tool. Thanks to the speed of HANA it quickly propagates changed demand. The goal of pMRP is to identify potential capacity issues and to evaluate possible solutions as early as possible. As a result of the simulation, production planners are prepared to take decisions on changed conditions. pMRP enables you to reduce inventory-carrying cost by enabling preproduction for semi-finished materials and changes to sources of supply.
Fig. 1: The ‘Capacity Plan Simulation’ app lists the demand / remaining capacity and visualizes the capacity utilization over the planning horizon via an embedded chart with different colors for the overload, the feasible load and available capacity. The inspector panel on the right side shows the Contributing Top Level Demands at a glance. Several options like ‘Disregard Capacity Issues’ or ‘Change Available Capacity’ enables the user to resolve capacity issues within the simulation.
When the production planner releases the simulation, pMRP supports the buffer sizing for buffered materials in Demand-Driven Replenishment (DDMRP) and creates Planned Independent Requirements (PIRs) with inactive status for top-level materials. The inactive PIRs for top-level materials can be activated afterwards and used in Material Requirements Planning (MRP).
Fig. 2: The pMRP process flow
Figure 3 shows how pMRP is integrated in Demand Planning (DP) and Demand-Driven Materials Requirements Planning (DDMRP). For finished goods the production planner can maintain PIRs manually or upload PIRs from Excel. Maybe the PIRs were received from ‘SAP Integrated Business Planning (IBP)’ before. With Predictive Material and Resource Planning (pMRP) the user defines the context based on material, work center and other selection criteria and creates a simulation plan. Then the ‘Process pMRP Simulations’ app enables the user to identify potential capacity issues and evaluate possible solutions as early as possible. After releasing the simulation DDMRP picks up the component PIRs and (re-)determines the buffer level. Note that the time-dependent “Demand Adjustment Factor (DAF)” is still available as an alternative to model seasonality, promotion etc.
Fig. 3: Integrated Process Flow DP – pMRP – DDMRP
Figure 4 shows how pMRP supports the time-dependent buffer levels in DDMRP. The forecast for the buffered component was derived from the finished goods’ forecast. The ‘Average Daily Usage’ is a moving average based on historic goods issues and forecast. As the buffer levels depend linearly on the Average daily usage, they rise and decline in the same pattern.
Fig.: 4: Demand-Driven Buffer Sizing: Usage of pMRP
Capacity Planning: Schedule Production – Dispatch to Sequence
Before 1908 the ‘Schedule Production’ app enabled the production planner to dispatch orders to a bucket only.
Now the new strategy planning mode ‘Sequence’ enables you to dispatch orders by sequence. With this feature you can view all time slots that are available for the pacemaker work center in a timecontinous format and dispatch orders to sequence. You can filter to view only the slots that have sufficient capacity and dispatch the orders or edit the slots that have overlapping orders. You can also select the pacemaker work centers to check and compare the time taken by each work center.
Fig. 5: SAP Fiori app ‘Schedule Production’ with new strategy planning mode ‘Sequence’
Capacity Planning: Monitor Work Center Schedules
With the new SAP Fiori app ‘Monitor Work Center Schedules’ you get an overview of the operations performed at your work centers by visualizing their schedules over a time period. The legend explains the color code. You can also plan optimum utilization of pacemaker work centers by matching their capacities with those of the orders that have to be dispatched.
Fig. 6: SAP Fiori app ‘Monitor Work Center Schedules’: The legend explains the color code. The darker the color, the more committed is the order.
“Overdue Stock In Transit (SIT)” Situations
Situation handling brings urgent issues to the attention of specific groups of users who are then able to react immediately to the notifications they receive. This speeds up the handling of specific situations in your company and supports the optimization of your business processes. See also the blog Situation Handling – Inform, Insight and Decide.
With the 1908 release we deliver a new situation handling use case in Inventory Management called ‘Overdue Stock in Transit Situations’ which enables you to bring important issues regarding Overdue Materials for which a stock transport order has been created to the users’ attention. With the pre-delivered situation template ‘MAN_MATLOVERDUESITSITN’ you can immediately inform responsible team members on delayed stock transport order items. These team members can monitor overdue stock transport order items according to the defined conditions in the situation and can take further action if necessary. These conditions can be changed. The pre-delivered conditions are just a proposition.
Fig. 7: The user is automatically informed via notifications if a situation of type ‘Stock transport order is overdue’ occurs. Opening a ‘Overdue Stock Transport Orders’ notification the system navigates the user to the ‘Overdue Materials – Stock in Transit’ app.
Fig. 8: SAP Fiori app ‘Overdue Materials – Stock in Transit’: By clicking on the warning icon of a purchase order item, the system opens the new detail page ‘Stock Transport Order Item’ which shows the situation ‘Stock transport order is overdue’. The ‘Dismiss’ button allows the user to clear this situation and to pick a reason for dismissing the situation. An additional nice feature on the new SAP Fiori app ‘Stock Transport Order Item’ is the process flow which provides the details of created purchase order, goods issue, delivery, goods receipt documents at a glance.
Let me also draw your attention to the new SAP Press book Inventory Management with SAP S/4HANA. Although the primary target audience of this book is On Premise most of its content (in particular the chapters covering the SAP Fiori Apps) is applicable to cloud customers as well. It tries to give an hands on experience in using SAP Fiori Apps in Inventory Management.
Advanced Available-to-Promise (aATP)
Product Allocation (PAL)
Advanced ATP offers an additional product allocation check for capacities. You can combine the so called CAPACITY PAL check (“What we CAN deliver”) with the SALES PAL check (“What we WANT to deliver”).
Fig. 9: Combine the ‘SALES PAL’ with the ‘CAPACITY PAL’
The SAP Fiori app ‘Product Allocation Sequence’ enables you now to model and maintain CAPACITY based allocations in addition to SALES allocations within one availability check. The Product Allocation Check for Capacities is executed after the Product Availability Check (PAC) based on the results (confirmation) of the PAC check. The check is based on the material availability date and can consider the lead-time duration. It is possible to convert between sales unit of measures and capacity unit of measures using the PAL factor (rate) based on a conversion to time based units (hours).
Fig. 10: SAP Fiori app ‘Product Allocation Sequence’ with ‘Sales Sequence Groups’ and ‘Capacity Sequence Groups’
Backorder Processing (BOP)
With 1908 the usability of the ‘Configure BOP Segment‘ app is improved by using the easy to use Selection Option Tool (SOT) instead of the previously used SAP HANA Rules-Based Framework for maintaining the selection criteria of a BOP segment. The Selection Option Tool enables you to maintain the selection criteria on the basis of the document type, You can use a combination of selection conditions and, if required, optional exclusion conditions. By using the Selection Option Tool language-dependent constraints are gone. For instance the previously used ‘SAP HANA Rules-Based Framework’ editor which is shown in figure 11 as the yellow highlighted box did not support languages that are written from right to left. By the way: The yellow highlighted box is only displayed for ‘old’ BOP segment definitions which were maintained with the previously used SAP HANA Rules-Based Framework.The red box in figure 11 shows the ease to use Selection Option Tool.
Fig. 11: The SAP Fiori app ‘Configure BOP Segment’ uses the Selection Option Tool (see red box) for maintaining the selection criteria of a BOP segment. The yellow highlighted box is only displayed for ‘old’ BOP segment definitions which were maintained with the previously used SAP HANA Rules-Based Framework.
Warehouse Goods Receipt from Repetitive Manufacturing
The new scope item Warehouse Goods Receipt from Repetitive Manufacturing (41U) allows you to perform the goods receipt of finished material from repetitive manufacturing into the warehouse. In a repetitive manufacturing environment when a predefined quantity of a finished product is produced, the production operator confirms the produced quantity in the system. With the repetitive manufacturing confirmation finished material is received into the specified warehouse goods receipt bin and raw material are issued from stock. The benefits are obvious:
- Seamless integration between warehouse management and production (repetitive manufacturing)
- Keep manual posting effort to a minimum
- Improve visibility and control in warehouse operations
- Synchronous updates of stock in inventory management and in warehouse management
- No delivery and warehouse request documents needed for goods receipt postings from repetitive manufacturing into a bin-managed storage location
Fig. 12: Scope item Warehouse Goods Receipt from Repetitive Manufacturing (41U) – Process Flow
Fig. 13: Synchronous Goods Receipt and Goods Issue in one Material Document
For setting up the scenario you can maintain the Warehouse Number, the Receiving Location and the Destination Bin with the ‘Manage Production Versions’ app.
You can maintain the Warehouse Product Attributes with the apps ‘Manage Product Master Data’ or ‘Warehouse Monitor’. The Control Indicator for Process Type Determination allows to define per product whether warehouse tasks should be created automatically or manually.
Fig. 14: SAP Fiori app ‘Manage Product Master Data’ – Maintain the ‘Process Type Determination Indicator’
Process Warehouse Tasks – Putaway
With the new SAP Fiori app ‘Process Warehouse Tasks – Putaway’, you can process the warehouse tasks destined for putaway. In the overview screen, you can view all relevant information about the putaway warehouse tasks in your warehouse. You can directly choose one or multiple warehouse tasks for confirmation or cancellation. You can print a putaway list with this app. You can also view the details of a warehouse task or handle an exception.
Fig. 15: SAP Fiori app ‘Process Warehouse Tasks – Putaway’
Warehouse KPIs – Operations
With 1908 we are launching the first analytical overview page in SAP S/4HANA Cloud Warehouse Management. With this app, you can view an overview of key performance indicators (KPIs) relevant to your warehouse operations, for example, the total number of open warehouse tasks to be processed on the current date. On the overview page, you can see different types of KPI cards. As a warehouse clerk, these cards help you to better manage and process your daily tasks.
Fig. 16: SAP Fiori overview page ‘Warehouse KPIs – Operations’
Just-In-Time (JIT) Processing
Just-In-Time (JIT) / Just-In-Sequence (JIS) Supply to Customer from Stock allows you to run just-in-time processes with your customers for products delivered from stock.
You can receive and process delivery schedules to JIT sales scheduling agreements for planning and production purposes, receive summarized or sequenced JIT calls for shipping purposes.
Figure 17 and 18 are showing the process flow of Just-In-Time Processing.
Fig. 17: Just-In-Time Processing – Simplified Process Flow
Fig. 18: Scope item ‘Just-in-Time Supply to Customer from Stock (2EM)’ – Process Flow
Figure 19 summarizes the apps used in JIT/JIS processing.
Fig. 19: JIT/JIS apps
Since my past blog, the following new features and changes to existing JIT/JIS features have been included:
● Cancellation of JIT/JIS Call
Allows you to cancel an active JIT call when the request is obsolete from the customer’s (OEM’s) perspective.
● Enhancement of Overview JIT Supply To Customer app
Allows material planners to filter and view JIT calls based on their internal status at the component group level
● Background Job for Package Unit Creation
As a Shipping Specialist – Just-In-Time Supply, you can schedule a background job for package unit creation for sequenced JIT calls based on supplier requirements.
● Enhancement of Outbound Delivery apps
Both Create Outbound Deliveries from Summarized Just-In-Time Calls and Create Outbound Deliveries from Sequenced Just-In-Time Calls apps are enhanced to display alerts notifications that have been triggered due to errors or warnings in the JIT calls.
● Additional Reference Data Handling
Enables you to send additional reference data to suppliers using EDI communication. Also allows material planners to edit or create new reference texts manually using Manage Customer Just-In-Time Calls app.
● Newly Enabled SSCUI
Allows you to maintain customer-specific action controls and additional reference data Customizing
Last but not least I want to draw your attention to the SAP API Business Hub where you will find new APIs for SAP S/4HANA Cloud Manufacturing & Supply Chain, for instance Kanban Summarized JIT Call Outbound Notification, OData API for batch classification (create, read, update) and SOAP APIs which provide the possibility to integrate external manufacturing execution systems (MES) into SAP S/4HANA production processes like production orders (send), process orders (send) and production routings (replicate to client).
Another hot topic is ‘SAP Intelligent Robotic Process Automation’. As part of the “SAP Best Practices for SAP Intelligent Robotic Process Automation Integration with SAP S/4HANA” we provide end-to-end automation stack for self-driving enterprise with a strong focus on SAP S/4HANA. If you open this scope item and explode the solution scope for ‘Produce’ or ‘Manufacturing’, you will find the scope items
- Physical Inventory Count – Upload Count List (4A8)
- Physical Inventory Count – Generate Count List (49R)
- Production Order Operation Confirmation (49T)
For more information on SAP S/4HANA Cloud, check out the following links:
- SAP S/4HANA Cloud release info: http://www.sap.com/s4-cloudrelease
- Sven Denecken’s SAP S/4HANA Cloud 1908 Release Blog
- The Link Collection for Manufacturing and Supply Chain here
- Best practices for SAP S/4HANA Cloud here
- SAP S/4HANA Cloud User Community: register here
- Feature Scope Description here
- What’s New here
- Help Portal Product Page here
- Implementation Portal here
Follow us via @SAP and #S4HANA, or myself via @GerhardWelker and LinkedIn.
Thanks for sharing!