Discrete Industries in SAP S/4HANA Cloud 2108
SAP’s wheel in Discrete Industries is spinning on full force. This blog post introduces the latest innovations and enhancements for Discrete Industries released with 2108 in SAP S/4HANA Cloud including Industry Cloud Solutions that are integrated in the context of Discrete Industries. Let’s dive right into the content.
Industrial Machinery & Components (IM&C) News
Produce and Sell Standard Products – Inventory Management (54U)
The above-mentioned end-to-end scope item was further expended in the areas of Production Capacity Evaluation and Leveling (CPS), Quality Management in Discrete Manufacturing and Material Replenishment with Kanban – Stock Transfer.
The following explains the end-to-end process enlargements in more detail.
Production Capacity Evaluation and Leveling
One of the major objectives for a company is the economic use of resources and work centers. Capacity planning determines the production capacity that is required to meet the changing demands for your products. This is an important feature in Discrete Industries; because of this, Capacity Planning and Scheduling (CPS) was introduced to the end-to-end scenario.
Manage Work Center Capacity
The production planner manages the capacity load on work centers and detects overload situations with this feature. This can be best seen in this short video:
Capacity Scheduling Table
Preschedule the dispatch of your orders from a pacemaker work center. This too can be seen in this short video:
Capacity Scheduling Board
Check out the overview of the operations performed at your work centers as well as the schedules during a certain period of time. Here is a video that let’s you see that:
Mass Maintenance of Work Center Capacities
Manage capacities of multiple work centers to meet future demands. Create multiple intervals for a few or all capacities that belong to the work centers in a production line/Work Center group. Intervals can be created for both working and non-working days. Within a particular interval, create shifts for a single day and allow it to repeat on a daily, weekly or monthly basis. On the other hand, create weekly shifts easily. Define a shift order by either assigning existing shift sequences or create custom shift definitions. While creating intervals, choose to override the existing factory calendar and make edits to utilization and number of capacities. Check out this video below:
Quality Management in Discrete Manufacturing
Quality management helps to ensure the quality of products, processes, and services right from the start. With the 2108 release, the quality management process for Procurement of Raw Materials and Repetitive Production Execution for Semi-Finished Component was included. Important to know is that scope item 54U has integrated Quality Management in REM in SAP S/4HANA Cloud with own master data (for scope item BJH please refer to: 2834383 – How to set up Quality Management in REM (Repetitive Manufacturing) in S/4HANA Cloud? (sap.com)).
An example of recoding an inspection result is shown in the next screenshot:
Material Replenishment with Kanban
Kanban is a procedure for controlling material replenishment based on physical material stock in production. As of 2108, we support the end to end scenario for material replenishments with Kanban in stock transfer and in-house production process, as well as material replenishment with external procurement strategies.
Warehouse Kanban supply into production is also supported by SAP S/4HANA Cloud, but since scope item 54U operates on inventory level without warehouse management, this was not integrated. A short overview demo is provided below:
In addition, the Monitor Kanban Containers app was also introduced in this scenario. The app helps to monitor and evaluate Kanban containers, enabling faster identification and resolution of issues.
More information on Kanban can be found in Gerhard Welker’s manufacturing blog post.
Scenario Overview (Reference Script 54U)
The scope items that were used to reference the end-to-end scenario for scope item 54U can be found in this document.
Produce and Sell Standard Products – Warehouse Managed (54V)
The end-to-end scope item “Produce and Sell Standard Products – Warehouse Managed” was also enlarged with the latest release with Repetitive Manufacturing for Semi-Finished Products and Warehouse Goods Receipt from Repetitive Manufacturing.
Repetitive Manufacturing for Semi-Finished Products
This implementation throughout the whole end-to-end process gives the possibility to perform production planning and control in a repetitive manufacturing environment. Create and revise production quantities on a periodic and quantity basis (reduction in individual lot and order-specific processing). Furthermore, business users now benefit from reduced production control effort and simpler back flushing tools (with the option of using the full scope of the PP functionality in S/4HANA Cloud).
Warehouse Goods Receipt from Repetitive Manufacturing
This process enlargement in the end-to-end context included the goods receipt of finished materials from repetitive manufacturing into the warehouse. This shall be explained further.
First the goods receipt from repetitive manufacturing is posted:
Next, an inbound delivery is automatically created:
Then, in the warehouse, the goods receipt can be triggered (automatically or manually):
Scenario Overview (Reference Script 54V)
The scope items that were used to reference the end-to-end scenario for scope item 54U can be found in this document.
Automotive Supply to Customer – Inventory Management (55F)
The end-to-end process for the scope item “Automotive Supply to Customer – Inventory Management” was enhanced in the area of sales scheduling agreements and enlarged in the areas of Repetitive Production Process with Just in Time (JIT) and Delivery Process with Just in Time (JIT) & Delivery Confirmation for Sequential Just in Time (JIT) Calls.
The 2108 release enhancements / enlargements in the end-to-end scenario are described below.
Sales Scheduling Agreements
With the 2108 release the Scheduling Agreement processes were enhanced in the scope item 55F. The following Scheduling Agreement Types need to be chosen according to the desired process:
The available types are described in a bit more detail:
- LZ for process with Sales Scheduling Agreements, without consignment and without JIT
- LK for process with Sales Scheduling Agreements and Customer Consignment, without JIT
- LZJ for Sales Scheduling Agreement with JIT, without Customer Consignment
- LKJ for Sales Scheduling Agreement with JIT and Customer Consignment
Release Summarized JIT Call to Production
In this added process step, a search for component groups corresponding to summarized JIT calls can be performed and then release to production.
SAP JIT Supply to Customer (Schedule Packing Group Creation / Update)
Manage packing groups to sequenced JIT calls from customers by action processing and the ability to print packing group labels according to sequenced JIT calls from customers were both introduced with the 2108 release and incorporated into the end-to-end scenario. Both innovations can be seen in this short video:
Release Sequenced JIT Call to Production
With this app, a search for package units corresponding to sequenced JIT calls is performed. View respective components, and release those for production.
An important prerequisite is that packing groups based on the packing group specification must have been defined/created beforehand.
Outbound Deliveries from Summarized JIT Calls
Create outbound deliveries (including partial deliveries) from summarized JIT calls on component groups:
Outbound Deliveries from Sequenced JIT Calls
Figure 13: Create Outbound Delivery for Sequenced JIT Calls
Scenario Overview (Reference Script 55F)
The scope items that were used to reference the end-to-end scenario for scope item 55F can be found in this document.
Warranty Claim Processing
Warranty claim processing was introduced for the first time, which is important in Discrete Industries, especially the automotive world. It supports the creation of a reimbursement request to a supplier for a complaint or repair of a product. Detailed information of the complaint/repair, such as specific prices for the claimed material and labor tasks, dates, and other related or request related data can be included.
In the process, a claim is created:
Thereafter, claims are validated and sent to a supplier. After the supplier response has been received a claim can then be posted to finance. A reversal of postings, cancellation or rejection of a claim is possible in the process. The process ends by closing a claim, please see below:
Currently, with the 2108 release the localization of Germany is supported. Further localizations and functionality is planned.
SAP Self-Billing Cockpit
SAP Self-Billing Cockpit is an SAP Industry Cloud Solution. Check out the integration between SAP S/4HANA Cloud and SAP Self-Billing Cockpit here. With the 2108 release value-based clearing invoice was introduced.
This can be seen in the header with action code 006 in the following picture:
Value-based clearing invoice without retroactive billing
This type of processing assumes that the transmission explicitly states that it is a clearing invoice, by referring to a transaction that has already been settled. In addition, such transmissions deal exclusively with value changes (for example, retroactive price changes) claimed by the customer (that is, the buyer). Therefore, the received quantity is not considered during value comparison or further processing. This is indicated by item action code 096.
Value-based clearing invoice with retroactive billing
This type of processing also deals exclusively with value changes (for example, retroactive price changes) claimed by the customer (that is, the buyer), by referring to a transaction that has already been processed and settled. Compared with the value-based clearing invoice without retroactive billing, this processing type differs in the creation of new open items. When determining whether to create a new open item, the system compares the claimed net value change against the internal retroactive billing value, which is calculated in your system based on input such as price changes of the settled transaction. Therefore, this processing type eliminates the creation of unnecessary new open items. For example, if both vendor and the buyer have agreed on a negative retroactive price change and the claimed net value change is equal to the internal retroactive billing value, no new open items are created. This is indicated by item action code 099:
Figure 17: Manage Self-Billing with Automatic Posting
SAP Returnable Packaging Management
SAP Returnable Packaging Management is a product on SAP Business Technology Platform for managing reusable returnable packaging materials in a supply chain. It is also integrated with SAP S/4HANA Cloud with the 2108 release. This process is also used a lot in the automotive industries.
Reusable packaging materials such as containers, pallets, tanks, and load carriers are used to move products safely and efficiently between business partners. This short video highlights the benefits and key features of SAP Returnable Packaging Management.
SAP Supplier Problem-Solving (8D)
SAP Supplier Problem-Solving enables a collaborative problem-solving process together with suppliers. It is also a development on SAP Industry Cloud. It supports in identifying root causes of problems, taking actions to prevent such problems in the future, and documenting the problem-solving process. For further information please refer to this blog post and/or watch this highlight video.
In conclusion, in SAP S/4HANA Cloud we have seen the following 2108 enhancements in the Industrial Machinery & Components (IM&C) and Automotive scenarios:
I hope it was also helpful to see the latest Industry Cloud Solutions connected to Discrete Industries in SAP S/4HANA Cloud.
Please drop me a line for your feedback and wishes to further enhance this blog post series.
All the best and stay fresh!