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Manufacturing and Supply Chain in SAP S/4HANA Cloud 2008

This blog provides an overview of innovations in SAP S/4HANA Cloud 2008 for Manufacturing and Supply Chain.

Here is the table of contents:

Manufacturing

Quality Management

Production Planning

Production Operations

Production Engineering

Supply Chain

Advanced Available-to-Promise (aATP)

Handling Unit Management

Inventory Management

Warehouse Management

Transportation Management

 

Watch my video in which I present the following innovations:

  • Integration of the Quality Info Record in the Production Part Approval Process on SAP Digital Manufacturing Cloud for Insights
  • Intelligent Situation Automation for the Physical Inventory Process
  • Predictive Material and Resource Planning (pMRP) -Simulate procured materials

The product video highlights 3 top innovations, but this is only a small part of the innovations in 2008. Now this blog provides you an overview of the multitude of innovations. Let us start with Quality Management in the line of business Manufacturing.

 

Manufacturing

Quality Management

Integration of Quality Info Record in the Production Part Approval Process (PPAP) on SAP Digital Manufacturing Cloud (DMC) for Insights

SAP Digital Manufacturing Cloud boost manufacturing performance with an integrated cloud manufacturing execution system of near real-time data and analytics.

The new integration of SAP S/4HANA Cloud Quality Management with SAP Digital Manufacturing Cloud enables manufacturers and suppliers to communicate more efficiently when it comes to the production part approval process (PPAP) and production design. By creating collaboration rooms, manufacturers and suppliers can exchange on statuses and thereby increase traceability.

In the video below a Quality Engineer opens the Manage Quality Info Records app in the SAP S/4HANA Cloud system, selects a quality info record, clicks on the collaboration room link in Production Part Approval details of the quality info record and navigates to the Collaboration Room on the Digital Manufacturing Cloud.

Fig.1: Integration of Quality Info Record in the Production Part Approval Process (PPAP) on the SAP Digital Manufacturing Cloud (DMC)
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Outbound and Inbound Asynchronous Service (SOAP) for Quality Certificates

New Outbound and Inbound Asynchronous Service (SOAP) for Quality Certificates enables to

  • Send a quality certificate that is previously generated to a customer system when a delivery is initiated.
  • Receive and store a quality certificate that was generated in an external supplier system when a delivery was initiated.

Fig.2: Improved transparency and traceability by Electronic Certificate Transmission via SOAP

Fig.3: Manage Certificate Receipts app – Received quality certificate attached

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Production Planning

Predictive Material and Resource Planning

Predictive Material and Resource Planning (pMRP) I presented for the first time in my 1908 release update blog as our new simulative mid- and long-term planning tool.

Since then, we have enhanced the tool with every release update, such as the last release by enabling configurale materials in pMRP simulations (see my past blog).

Now, with the 2008 release, Predicted MRP supports the external procurement scenario which enables production planners to simulate procured materials. You can not only reduce a capacity overload for in-house production, but now also supplier overloads by maintaining constraints of suppliers. With this new feature you can use Predictive MRP to analyse, simulate and plan external procurement in the same way as in-house production.

In the video below a Production Planner opens the Define Flexible Constraints app and views the constraints of a particular material. Then the user opens the Process pMRP Simulations app, opens a particular simulation and reviews the Violated Constraints. The issue list shows different impact causes.

Fig.4: Predictice Material and Resource Planning – Define flexible constraints and view violated constraints in pMRP simulations

To reduce a capacity overload, you might be able to move the production of material components to an earlier point in time by using free slots for preproduction or early procurement proposed by the system. For this purpose, use the option Pull In Quantity, check the available slots for planning a preproduction or an early procurement. The system proposes a capacity distribution. Decide, if this is feasible.Click Adopt Proposal, if you agree with the proposed distribution or enter a different distribution.

If an alternative source of supply exists and there are capacity issues with the actual source of supply, you can choose the option Change Source of Supply.

Fig.5: Process pMRP Simulations app: Change Source of Supply and Pull In Quantity for procured Materials based on Constraints
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Range of Coverage

In response to numerous customer requests, the Range of Coverage is now available not only in SAP S/4HANA On Premise, but also in SAP S/4HANA Cloud. The Range of Coverage means the Periodic Views in the Stock/Requirements List app, well know as transaction MD04 in on premise.

Fig 6.: Range of Coverage – Periodic Views in Stock/Requirements List app

The new self-service configuration UI (SSCUI) enables you to define the Period Profile for Safety Time/Actual Range of Coverage in SAP S/4HANA Cloud.

Fig.7: Configure Your Solution via Manage Your Solution app – Define the Period Profile for Safety Time/Actual Range of Coverage
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My Area of Responsibility

The new SAP Fiori app My Area of Responsibilty enables you to specify your area of responsibility by selecting the relevant plant and MRP controller combinations for which you are responsible. The app is available in the search function embedded in the shell bar, in the app finder, and in the App Settings or MRP Settings in the user actions menu of the MRP-relevant apps.

Fig.8: New SAP Fiori app My Area of Responsibilty 

The My Area of Responsibilty app replaces the former setting for the area of responsibility in the user actions menu and is now available in the user actions menu of the following MRP-relevant apps:

  • Manage Planned Orders
  • Convert Planned Orders
  • Monitor Material Coverage – Net Segments
  • Monitor Material Coverage – Net and Individual Segments
  • Monitor External Requirements
  • Monitor Internal Requirements
  • Monitor Productions Orders or Process Orders
  • Hand Over Purchase Requisitions

In addition, the app is also available in the user actions menu of the following apps:

  • Maintain PIRs
  • Manage Work Center Capacity
  • Schedule Production

Fig.9: Maintain PIR app – MRP Settings – My Area of Responsibility

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Hand Over Purchase Requisitions

The new SAP Fiori app Hand Over Purchase Requisitions enables you to hand over in one step all selected purchase requisitions in your area of responsibility that are created automatically during the MRP run and that have to be checked before being handed over to purchasing.

Fig.10: New SAP Fiori app Hand Over Purchase Requisitions

In addition to the handover of purchase requisitions in the Manage apps (Manage Material Coverage app, Manage External Requirements app, Manage Internal Requirements app, and Manage Production Orders or Manage Process Orders app), you can use this app to hand over several purchase requisitions at once, to change or delete purchase requisitions, and to navigate to the Purchase Requisition object page app.

My 1911 release blog describes the business configuration setting Purchase Requisition Handover to Purchasing Required which determines that the purchase requisitions created automatically during the MRP run need to be handed over to purchasing.
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Mass Processing for Production and Process Orders

Production Supervisors can use now the apps Mass Processing Production Orders and Mass Processing Process Orders for mass processing several process or production orders. These apps are well known from SAP S/4HANA On Premise as the transactions COHV (Mass Processing Production Orders) and COHVPI (Mass Processing: Process Orders).which are now available in SAP S/4HANA Cloud as visual harmonized apps.

Fig.11: Mass Processing Production Orders and Mass Processing Process Orders apps

If you choose the mass processing option Technically Complete for scheduling the order technical completion run, in addition, you can use the possibitlity to select typically used status by profile and the option to include or exclude orders with open goods issue.

Fig.12: Schedule Order Technical Completion Run with enhanced selection capabilities

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Manage Work Center Capacity

The Manage Work Center Capacity app shows now the available capacity with a vertical line in the bar chart.

Fig.13: Manage Work Center Capacity app with vertical line to show the available capacity

Additionally the app enables a quick edit of shifts. You can edit the start time and the end time of a shift from the Shifts tab directly.

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Schedule Production

The Schedule Production app enables the production planner now to realign a single order or multiple orders (mass action) by clicking the button Realign Schedule.

Fig.13: Schedule Production app – Realign Schedule

Additionally the Schedule Production app enables drag and drop in the sequence table, offers new filters for late and overdue orders and provides single level pegging based details like the Requirement Date and Requirement-Based Deadline in the object page.

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Monitor Work Center Schedules

Since we launched the SAP Fiori app Monitor Work Center Schedules one year ago, the Gantt chart enables you to get an overview of the operations performed at your work centers by visualizing their schedules over a time period. Visualization was the first step. Meanwhile you can take also action on the Gantt chart (see my 1908 release blog).

With the 2008 release, you can set the scheduling strategy for your orders and in a new page reschedule your operations in pacemaker work centers based on your strategy. With the help of a chart, you can dispatch operations to free slots and deallocate dispatched operations.

Fig.14: Monitor Work Center Schedules app – Reschedule Operation

Fig.15: Monitor Work Center Schedules app – Reschedule Operation – Dispatch

Fig.16: Monitor Work Center Schedules app – Reschedule Operation – Deallocate

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Production Operations

Enhancements for the Kanban Board app

In my past blog I draw your attention to the graphical Kanban Board app which enables production operators in lean manufacturing to constantly monitor control cycles with their circulating Kanban containers and to change the status of containers. The SAP Fiori app allows you to personalize views for different business users.

Now, the Kanban Board app has been enhanced with personalization, navigation, and extensibility options.

The short video below shows you the new Board Settings which enhances the personalization capabilities of the app:

Fig. 17: Kanban Board app – Personalization

Choose how to display container labels by selecting one of the options: Container IDControl Cycle ItemControl Cycle Item (Container ID for Event-Driven)Quantity, or No Text.

In addition, decide whether the status text shows as subtitle in the container:

  • Only when using high contrast themes – The status text shows if you have selected to use an SAP high contrast theme.
  • Always – The status text always shows.
  • NeverThe status text never shows.

The option to show the status text in the container box is important for better accessibility, especially for users who cannot distinguish between the container colors or who need to use a reader.

Together with all layout settings, you can save board settings by using the My Views dropdown of the variant management at the top left corner of the Kanban Board.

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Confirm Goods Receipt for Kanban Materials for
Repetitive Manufacturing

The Kanban Board app allows you to easily perform the production confirmation. If you click on an empty container and set the container status to full, the production configuration for repetitive manufacturing will be triggered automatically in the background, but just with all default values.

The app Confirm Repetitive Manufacturing – Kanban is available now to confirm goods receipts for repetitive manufacturing. With this app you can perform the production confirmation and enter all possible parameters that can be edited a normal production confirmation. For instance, you can change component consumption, add in addition unplanned components, and you can use here all features of production confirmation like batch determination and stock determination.

Fig. 18: Confirm Repetitive Manufacturing – Kanban app

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Enhancements for the Manage Process Orders app

With the SAP Fiori app Manage Process Orders, supervisors can manage the progress of process orders (see my past blog post).

Now, this app allows cross app navigations to the apps

  • Manage Work Center capacity
  • Check Material Coverage
  • Material Documents Overview
  • Manage Inspection Lot

to review order quality, material documents, component stock, work center status and so on.

Additionally you can confirm operation and confirm order actions via navigation to the confirmation apps.

The figure below shows the worklist enhancement – Next Operation pop over.

Fig.19: Manage Process Orders app – Next Operation pop over

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Production Engineering

New ODATA APIs

The scope items

cover the setup of the integration from SAP S/4HANA to Manufacturing Execution Systems (MES).

An MES integrates business and manufacturing processes that help to run efficient, high-quality production on the shop floor.

New ODATA APIs for synchronous integration with external systems are now available to

Fig.20: OData service based Create API for Master Recipe

Fig.21: OData service based Create API for Production Routing

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Supply Chain

Advanced Available-to-Promise (aATP)

Inclusion of classification characteristics from variant configuration types in characteristics catalog of product allocation

With this feature you can add classification characteristics from Variant Configuration to the characteristic catalog in the Manage Characteristic Catalogs app. Classification characteristics represent characteristic master data of the classification system and, in Variant Configuration, are typically used to describe the different values of configurable materials, such as color, type, or size. You can add classification characteristics to catalogs with use type Product Allocation (catalog type: Base (Sales Order)) to define allocations for materials with classification characteristics.

Fig.22: Manage Characteristic Catalogs app – Add Classification Characteristics from Variant Configuration to Product Allocation Catalog

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Partial confirmations in multiple plants through Alternative-Based Confirmation in an ATP check

Alternative-Based Confirmation (ABC) is used to check for all possible alternatives to confirm a requirement when the availability in the requested material-plant combination is insufficient to confirm the original requirement. With ABC, the SAP S/4HANA system can exchange the originally requested delivery plant with alternative plants, with the aim of providing a higher confirmed quantity and/or alternative delivery dates that improves the confirmation for the customer’s originally requested requirement.

With the 2008 release, the automated confirmation capabilities are increased by enabling of partial confirmations for requirement items in sales orders from multiple delivering plants through Alternative-Based Confirmation in an ATP check. In doing so, you can configure your system to flexibly consider multiple plants during availability checks executed with Alternative-Based Confirmation (ABC) and Backorder Processing (BOP).

Fig.23: Configure Alternative Control app – Partial confirmations in multiple plants

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Handling Unit Management

Automatic Packing in the Outbound Delivery

My past block describes the scope item Handling Unit Management (‏4MM‏) in which packaging in delivery is set up. With the 2008 release, Automatic Packing in the Outbound Delivery is enabled.

Fig.24: Create Outbound Delivery app – Automatic Packing

The prerequisition for automatic packing in outbound delivery is the maintenance of packing instructions. For this purpose the Master Data Specialist (role SAP_BR_HU_MASTER_SPECIALIST) is enabled to maintain the Automatic Packing Master Data.

Fig.25: Automatic Packing Master Data

Fig.26: Change Packing Instructions app

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Monitor Handling Units

With the new SAP Fiori app Monitor Handling Units, you can get an overview of handling units (HUs) created in your plant, warehouse, and storage location.
The app supports you, for example, as a shipping specialist, to monitor the path of a HU through your business transactions. The app displays all handling unit information such as status, referenced documents, handling unit hierarchy ancestors and other properties. The app provides a list view as a starting point with different filter criteria so that you can fine-tune your search result step by step. From this result list, you can navigate to further details of the selected HU, grouped in sections like Packaged Products, Measurements or General Information.

Fig.27: New SAP Fiori app Monitor Handling Units

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Inventory Management

Intelligent Situation Automation for the Physical Inventory Process

My second topic is also about integration between SAP S/4HANA Cloud and the SAP Cloud Platform. Intelligent Situation Automation for the Physical Inventory Process drives next-generation business processes by intelligently increasing efficiency and quality while unleashing users time to focus on expert tasks. For this purpose, the rules engine on the SAP Cloud Platform enables the user to define rules for enhancing the situation types which are maintained in SAP S/4HANA Cloud. While situation handling in SAP S/4HANA is used to automatically notify responsible persons, the Rules Engine automates the situation handling by making decisions. As a result, Intelligent Situation Automation for the Physical Inventory Process automatically checks whether recount shall be triggered, or inventory differences can be accepted.

In the video below the user opens the Manage Situation Automation app on the SAP Cloud Platform (SCP) and creates a new configuration for a physical inventory monitoring situation type which is enabled for Intelligent Situation Automation in the SAP S/4HANA system. In the text rule editor of the rules engine the user defines the following rule: If the difference between the counted and booked physical inventory is less than 5%, the counted value will be posted, else a recount will be triggered automatically,.

At the end of the video, the user opens the Situation Dashboard app which shows you different charts like the Time Saved with Automation and the Situation Status.

Fig.28: Manage Situation Automation app

Note, that only those situation types are available here which are enabled for Intelligent Situation Automation in the SAP S/4HANA system.
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Direct recount and post to process on physical inventory documents

In the Physical Inventory Document Overview app, you can now use two new functions (actions) (Recount and Post) to process physical inventory documents more efficiently. These actions are active for physical inventory documents with material items that are counted but not yet posted. You can directly initiate a recount for the selected items. The app creates a new physical inventory document with the option to add an attachment to the new physical inventory document. You can also directly post the value of the counted quantity. Depending on your individual settings, you can add a reason when posting inventory differences.

Fig.29: Physical Inventory Document Overview app – New functions for direct recount and post

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Warehouse Management

Post production goods receipt and consumption via Post Goods Movement app

With this feature, you can post goods receipt of finished or semi-finished products for manufacturing orders using the Post Goods Movement app into a warehouse-managed storage location instead of using inbound deliveries and warehouse request documents.
You can also post goods issue for components for manufacturing orders and reservations directly from your production supply areas managed by Warehouse Management using the Post Goods Movement app.

Fig.30: Post Goods Movement app

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Consumption posting with account assignment

With the enhancements to Ad-Hoc Goods Issue, you can use the new goods issue process Consumption in the Post Goods Issue – Unplanned app. For the goods issue processes Consumption, Scrapping, and Sampling, you can now choose between the accounting object categories Cost Center, Order, and Project and enter the accounting object to which you want to assign the costs of the goods issue process.

Fig.31: Post Goods Issue – Unplanned app

You can display the account assignment in the warehouse monitor.

Fig.32: Warehouse Monitor app – Account Assignment Object

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Process handling unit warehouse tasks with SAP Fiori apps

With the SAP Fiori apps for processing Warehouse Tasks

  • Process Warehouse Tasks
  • Process Warehouse Tasks – Picking
  • Process Warehouse Tasks – Putaway
  • Process Warehouse Tasks – Internal Movements

you can now confirm Handling Unit Warehouse Tasks.

The apps are extended and contain now a new filter and column for product or handling unit warehouse task.

Fig.33: Process Warehouse Tasks app

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Mobile Warehousing

Enhancement of outbound delivery order API to print loading list

The OData service Warehouse Outbound Delivery Order – Read, Update (A2X)
(API_WHSE_OUTB_DELIVERY_ORDER) now allows you to print a loading list for your delivery.

The process flow below shows how you can reduce the manual steps in S/4HANA Cloud WM by using the API. With the 2008 release, you can trigger the printing of the loading list directly from your mobile app.

Fig.34: Enhanced mobile process coverage – Trigger the printing of the loading list directly from your mobile app

By the way: The Core Data Service (CDS) view for loading list is enhanced by Purchase Order and Purchase Order Item number which allows you to select purchase order and purchase order item number in your customer loading list print template (form template EWM_LOADING_LIST) and print purchase order and purchase order item number on loading lists.

The figure below gives you an overview of APIs in Cloud WM as of the 2008 release.

Fig.35: Mobile Warehousing – Overview of APIs in Cloud WM as of 2008 release

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SAP Fiori Spaces

The SAP Fiori 3 spaces concept offers two new layout elements space and page for a more structured homepage design.

  • Space defines the navigation structure and provides the overall context for the displayed content.
  • Page contains apps for a business role, grouped in sections to guide users through work contexts.

The figure below shows the new spaces for warehouse clerk and warehouse operative to consume the content of the launchpad in an easier and more structured way than before,

Fig. 36: Spaces Warehouse Office and Warehouse Floor

Note: The new spaces are available in addition to the classical homepage.

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Transportation Management

Evaluated Receipt Settlement process for freight cost

This feature enables you to use automatic freight settlement without requiring the carrier to issue an invoice. You can enable the Evaluated Receipt Settlement (ERS) process by scheduling and monitoring recurring job for your carrier using the app Schedule Supplier Invoice Jobs – Advanced.

Fig.37: Schedule Supplier Invoice Jobs – Advanced app

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Central Rate Tables

With the Manage Rate Tables app, you can create and edit rates centrally in rate tables. You can then use these rate tables in contracts with multiple carriers using the Manage Freight Agreements app. These rate tables are useful for transportation charges that are frequently needed in multiple freight agreements, for example, loading charges, toll charges, and insurance fees. Note that you can also create local rate tables using the Manage Freight Agreements app, but those rate tables are specific to a freight agreement.

Fig.38: Manage Rate Tables app

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Holiday Charges for Pick-Ups and Deliveries on Non-Working Days

With this feature, you can add additional charges if the pick-up or delivery date of the freight order is on a nonworking day. For the system to consider the charges, you must define PICKUP_HOLIDAY or
DELIVER_HOLIDAY as the calculation base in the appropriate rate table or local rate table.

Fig.39: Manage Freight Agreement app

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Thanks for reading this blog post.

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 2008 Release Blog
  • The Link Collection for Asset Management here
  • The Link Collection for Manufacturing & Supply Chain here
  • SAP S/4HANA Microlearning (OP/CL) – The ultimate collection blog
  • 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

Follow us via @SAP and #S4HANA, or myself via @GerhardWelker and LinkedIn

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