Manufacturing and Supply Chain in SAP S/4HANA Cloud 2005
This blog provides an overview of innovations in SAP S/4HANA Cloud 2005 for Manufacturing and Supply Chain.
Here is the table of contents:
Watch my video in which I present the following innovations:
- Situation handling for Physical Inventory Monitoring
- New graphical SAP Fiori Kanban Board app
- Enable Configurable Materials in Predictive Material and Resource Planning
The product video highlights 3 top innovations, but this is only a small part of the innovations in 2005. Now this blog provides you an overview of the multitude of innovations. Let us start with Warehouse Management in the line of business Supply Chain.
1. Warehouse Management
The Process Warehouse Tasks app enables the Warehouse Operative (EWM) to process internal and putaway and picking warehouse tasks in a single app. The new app enhances the usability by avoiding navigation between multiple apps. You can filter, sort, group warehouse tasks with a key attribute, view details of a warehouse task, and confirm / cancel single or multiple warehouse tasks.
Fig.1: SAP Fiori Process Warehouse Tasks app enables to process all kind of Warehouse Tasks
Figure 2 provides an overview of the APIs in SAP S/4HANA Cloud Warehouse Management as of the 2005 release. The interfaces which are NEW with the 2005 release are highlighted in the figure.
Fig.2: Overview of APIs in Cloud WM as of the 2005 release
My 1905 release blog introduced the scope item Resource Management in Warehousing (3W0) which allows you to leverage interfaces (APIs) for the development of customer-specific apps for warehouse task processing on mobile devices. If you are interested, how to develop your own mobile app for warehouse task processing, read the next chapter about openSAP microlearnings.
Recently, we have launched a new enablement channel for SAP S/4HANA with openSAP Microlearnings.
Microlearnings provide a powerful new, digital learning opportunity for our customers and partners by offering spot-on knowledge bites that can be consumed quick and easy through online playlists.
The following link guides you directly to the openSAP Microlearnings for SAP S/4HANA Cloud Supply Chain. Here for instance, you will find microlearnings which explain how to “Develop your own SAP Mobile Warehouse Task App” and how to “Setting up a Communication Scenario for a Self-Developed SAP Mobile Task App”.
Fig.3: openSAP Microlearning in the area of Warehouse Management
Note: You can filter openSAP Microlearnings by Lines of Business and Playlist. The Playlist criteria offers the options Getting Started, Expert’s Choice, and New Arrivals. For instance, the two mentioned openSAP Microlearnings are on the Expert’s Choice Playlist.
A handling unit (HU) is a physical unit consisting of packaging materials (load carriers/packing material) and the goods contained on/in it. A handling unit is always a combination of products and packaging materials. All the information contained in the product items, for example, about batches, are retained in the handling units and always available.
With the 2005 release, we are delivering a new scope item Handling Unit Management (4MM). In this scope item, packaging in delivery is set up. It only includes the steps for packaging and therefore always needs a standard process scope item to work with.
Fig.4: Scope item Handling Unit Management (4MM) – Process Flow
As of the 2002 release, configuration steps for making settings related to handling unit management have been added to Configure Your Solution in the Manage Your Solution app which enables a unified handling unit numbering. As a result, handling units can be used in storage locations that are both WM and IM managed. A Global Trade Label could be printed, but a Global Transport Label (GTL) number could not be generated.
Fig.5: Global Trade Label (VDA standard)
With the 2005 release, new configuration steps for Handling Units enables you to define how to generate global transport label (GTL) numbers for your warehouse (see configuration steps 6 and 7 in figure 6).
Fig.6: New configuration step for Handling Units – Define how to generate global transport label (GTL) numbers for your warehouse
The Global Transport Label (GTL) number is similar to the Serial Shipping Container Code (SSCC) number. The GTL number contains of 22 digits which includes 20 digits for HU identification. The first two digits are calculated dynamically.
Fig.7: Global Transport Label (GTL) number for Handling Units
The new Business Add-In (BAdI) for Handling Unit Management enables you to maintain the custom fields settings for the Handling Unit in the Change Outbound Delivery app.
You can use the Cloud BAdI Update of HU Header (HU_HEADER_UPDATE) to change the values of the fields in the handling unit header.
Fig.8: New Business Add-In (BAdI) for Handling Unit Management
You can extend the batch number creation function to specify the internal number range or suppress internally generated batch numbers, and you can implement your own logic to create batch numbers based on your data.
Fig.9: Business Add-In (BAdI) After Internal Batch Number Assignment using Custom Business Objects
Figure 10 provides an overview of the Physical Inventory Process Flow in SAP S/4HANA.
At the beginning of the process flow you always create a physical inventory document which can be printed out if desired.
The next step is the physical counting which could be done directly via the SAP Fiori app in the system for instance on a tablet or paper based on a print out.
As soon as the count results are entered in the system, the processor can see if there are any differences in value or quantity and can then decide to either post the physical inventory document or to order or perform a recount of stock.
At the end of the process it is necessary to post a physical inventory document so that at a certain point in time a new physical inventory document can be created.
Fig.10: Physical Inventory Process Flow – Starting point is the creation of physical inventory documents which is highlighted in the figure
Physical inventory is predestined for automation. Figure 11 shows a user story with three different levels of automation for physical inventory.
Fig.11: Intelligent Situation Automation: User Story – Physical Inventory
First, let us have a look on automation level 0. Here the user manually sends reminder to monitor physical inventory documents.
But there is great potential even at automation level 0 to automate the physical inventory process, namely through cycle counting.
Cycle Counting is an important method for assessing physical inventory to count materials at regular intervals within a fiscal year. You use the physical inventory method of cycle counting when a continuous inventory is desired. By assigning materials to various classes via the cycle counting indicator, you specify for those materials, at which intervals or cycles the inventory is to be performed. This allows you to count fast-moving materials in your warehouse more often than slow-moving materials, for example. To learn more about cycle counting in SAP S/4HANA Cloud, look at the new scope item Physical Inventory – Cycle Counting (4LU).
As a first step to provide cycle counting for Cloud customers, we delivered a self-service configuration user interface (SSCUI) for maintaining the cycle counting (CC) settings in 1911 (see my 1911 blog post).
As of the 2002 release, the SAP Fiori app Cycle Counting Classifaction enables an inventory manager to improve operation efficiency by classifying materials for cycle counting as part of the physical inventory process (see my 2002 blog post).
Now with the 2005 release, we are finishing the journey of enabling cycle counting in SAP S/4HANA Cloud by providing the new SAP Fiori app Schedule Physical Inventory Document Creation which supports you in the automatic and scheduled creation of physical inventory documents in the background to get the results at the right time when you need them.
Fig.12: SAP Fiori app Schedule Physical Inventory Document Creation
If you have 10 minutes, please watch the openSAP Microlearning Schedule the Creation of Physical Inventory Documents which explains how to create and schedule a job to create physical inventory documents for your physical inventory process. In the first part, the microlearning runs through an example with 4 physical inventories per fiscal year in theory. In the second part, an inventory manager schedules the creation of physical inventory documents on a quarterly basis by using the Schedule Physical Inventory Document Creation app in the system.
Fig.13: openSAP Microlearning Schedule the Creation of Physical Inventory Documents
Now we come to automation level 1 as shown in figure 11.
With this new situation handling use case we’re enriching our intelligent ERP capabilities by leveraging process steps in cycle counting.
Figure 14 shows three selected situation handling scenarios (marked with yellow arrows) from the physical inventory process flow. These are from left to right:
- Counting reminders for Warehouse Clerks
- Notification on physical inventory difference
- Posting reminders for Inventory Managers
Fig.14: Physical Inventory Process Flow (three possible situation handling scenarios are marked with yellow arrows)
With the Manage Situation Type app you can now easily create ready-to-use situation types for Physical Inventory Monitoring out of the standard template. The standard template provides a variety of filters for maintaining conditions based on which situation occur. You have the flexibility to maintain texts to inform users about situations, to embed variables into notifications, and to define recipient groups for notifications.
The benefit is obvious: This situation handling use case increases overall inventory accuracy because responsible persons are informed automatically and immediately.
Watch the video where a warehouse clerk receives a reminder for physical inventory counting automatically triggered via situation handling.
Fig.15: Warehouse Clerk receives a reminder for physical inventory counting
If you have less than 12 minutes, watch the openSAP Microlearning Situation Handling for Physical Inventory Counting which explains in detail how to set up a situation handling scenario for physical inventory counting in the system. The shown system demo contains four parts:
- Set up a team and assign functions
- Define your own member function
- Create a ready-to-use situation type by using the situation template
- Receive a notification after the situation occurred
Fig.16: openSAP Microlearning Situation Handling for Physical Inventory Counting
Last but not least, let us have a look on automation level 2 in the physical inventory as shown in figure 11.
The SAP Cloud Platform (SCP) offers a rules engine which enables you to extend a situation type which you have created in SAP S/4HANA with additional rules. For instance, figure 17 shows you the additional rule extending the situation handling scenario Posting reminders for Inventory Managers.
This rule controls that physical inventory documents with variances smaller than a defined threshold value are automatically posted in the system. For those counts which exceeds the threshold a recount is forced automatically.
Fig.17: SAP Fiori app Manage Situation Automation (in pilot phase)
The rules engine is currently in the pilot phase and not general available in the 2005 release. At the moment we are looking for customers who are willing to pilot this solution. If you are interested, please contact me or your SAP contact person for further information.
The Configure BOP Segment app has been enhanced with functionality for simulating the potential selection of requirements. Use the Simulate pushbutton to display the requirements that would potentially be selected for processing in a backorder processing run, based on the segment’s current selection criteria. This feature ease the setup of backorder processing by enabling users to directly validate the result list of individual segments.
Fig.18: SAP Fiori app Configure BOP Segment with new segment simulation option
The Manage Product Allocation Planning Data app provides a Quick Edit mode which allows you to make immediate changes to the planning data of a product allocation object, for example, change quantities or change the constraint status. Changes via the Quick Edit mode are immediately visible for the product allocation check.The Quick Edit mode will not be available as long as another user is editing the same characteristic value combination in parallel.
Fig.19: SAP Fiori app Manage Product Allocation Planning Data provides a Quick Edit mode
Now coming to the line of business Manufacturing.
The new SAP Fiori Kanban Board app enables you to constantly monitor your control cycles with their circulating Kanban containers. The graphical monitoring for Kanban replenishment is easy to understand. The SAP Fiori app allows you to personalize views for different business users. You can supervise and improve your Kanban processes through ad-hoc analysis by using quick access to Kanban control cycle and container real-time information. The Kanban Board allows quick actions, for instance, to set the container status directly. Visual alerting supports you to identify and eliminate errors quickly.
Fig.20: New SAP Fiori Kanban Board app
Since the 1908 release, I regularly report in my blog series about Predictive Material and Resource Planning (pMRP) and its enhancements. For short recap review my 1908 blog, 1911 blog, and 2002 blog.
Predictive Material and Resource Planning (pMRP) is our new simulative mid- and long-term planning tool in SAP S/4HANA. 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.
With the 2005 release, you can use BOM Usage P for BOMs that are only relevant for predictive material and resource planning. You can use it in combination with BOM Selection ID 06, if you want to give priority to these BOMs when creating a simulation.
This feature allows you to set up a special BOM with BOM Usage P, the so-called Planning BOM, to enable configurable materials for pMRP simulation.
The BOM Selection ID 06 prefers BOM Usage P over all others when creating the simulation. This means, in case you use BOM Selection ID 06 as an Object Selection criteria in the Schedule pMRP Simulation Creation app, pMRP then uses Planning BOMs if created, and Production BOMs if a corresponding Planning BOM does not exist. If you also restrict the creation of pMRP simulation to BOM Usage P in the Limits parameter section, the Production BOMs are no longer selected.
Fig.21: Schedule pMRP Simulation Creation app – Enable Configurable Materials via special Planning BOM
With the Define Flexible Constraints app you can add, copy and delete constraints for materials that will be considered in the simulations. Clickable KPIs provide an overview e.g. for violated constraints and allows you select and navigate to one of the prefiltered objects and check in more detail.
Fig.22: Define Flexible Constraints app and use of constraints as clickable KPI in the Process pMRP Simulations app
The Process pMRP Simulations app allows you to multilevel Undo or Redo changes.This feature improves the usability.
The changes on a simulation are documented in the Global History which increases the transparency of the change history.
Fig.23: Process pMRP Simulations app with new multilevel Undo or Redo feature. Changes on a simulation are documented in the Global History which is also new.
With the Manage Material Coverage app you can create an order to solve any coverage issues for your materials. This enables direct changes for supply elements to immediately improve the material planning situation. For this purpose a production planner can create
- purchase requisitions
- stock transport requisitions
- planned orders
- schedule lines for scheduling agreements
Fig.24: Manage Material Coverage app with new Create Order feature
The enterprise search model for Production Routings is now available. From the SAP Fiori Launchpad, you can use the search if your user has one of the required business roles assigned, for example Production Planner (SAP_BR_PRODN_PLNR) or Production Engineer (SAP_BR_PRODN_ENG_DISC).
Fig.25: Enterprise Search for Production Routings
With the new SAP Fiori app Manage Process Orders, supervisors can manage the progress of process orders. You can
- filter orders based on your area of responsibility, processing and component status using the visual filters
- manage the entire workflow of your process order from its creation to its completion
- release or technically complete multiple orders in one go
- view related documents
Fig.26: New SAP Fiori app Manage Process Orders
The Business Add-In (BAdI) Purchase Requisition Enhancements for MRP is used both in MRP when creating purchase requisitions and when converting planned orders into purchase requisitions. You can use this BAdI to fill additional custom fields on purchase requisition item level when creating or changing a purchase requisition. The processing status of the purchase requisition during MRP and/or planned order conversion is provided as an import parameter within the BAdI implementation.
Fig.27: Business Add-In (BAdI) Purchase Requisition Enhancements for MRP
With the new Business Add-Ins (BAdIs),
- Manufacturing Order Header Modification at Creation/Update
- Manufacturing Order Operation Modification at Creation/Update
- Manufacturing Order Component Modification at Creation/Update
you can fill additional custom fields on order header level, order operation level, and on order component (reservation) level when creating or changing a production order.
This feature allows customers to enrich the data of a production or process order for their specific needs.
Fig.28: New Business Add-Ins (BAdIs) for Manufacturing Order
Especially for shop floor integration and process manufacturing two Odata APIs are enhanced:
- Production Routing OData API (API_Production_Routing)
– Production Routing read API already exists with 2002
– Update mode is enhancement on top of read mode in 2005
- Master Recipe OData API (API_MASTER_RECIPE)
– Master Recipe read API already exists with 2002
– Update mode is enhancement on top of read mode in 2005
As of the 2002 release, SAP S/4HANA Cloud enables continuous improvement through the standardized 8-D problem-solving process and its predefined process steps in Quality Management. The 8-D methodology supports you to identify, correct, and eliminate recurring problems (see my 2002 blog).
With 2005, the Resolve Internal Problems app enables you to set statuses for each step of a problem-solving process. The step statuses do not influence the overall status of the problem-solving process. You can complete the process even if steps are not completed. This new feature increases the transparency on all processes related to the issue.
Fig.29: SAP Fiori app Resolve Internal Problems with new Step Status
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 2005 Release Blog
- The Link Collection for Asset Management here
- The Link Collection for Manufacturing & Supply Chain here
- Inside SAP S/4HANA Podcast here
- Best practices for SAP S/4HANA Cloud here
- SAP S/4HANA Cloud Customer Community: register here
- Feature Scope Description here
- What’s New here
- Help Portal Product Page here
- Implementation Portal here