Discrete Industries in SAP S/4HANA Cloud 2111
Table of Contents
With the latest release, we have seen two end-to-end processes introduced for the Consumer Products industries, which starts a new chapter for SAP S/4HANA Cloud. Let’s take a look at these two newbies.
This scope item describes a Consumer Products Industry flavored production process with full integration of Quality Management into Discrete Manufacturing. My demo video exemplifies this End-to-End process by producing one semi finished material with quality management integration:
After the semi finished materials are produced, it’s time to produce the finished material. Production orders are created for finished material FG0501:
The operations are confirmed:
Goods receipt is posted after the operation confirmations (stock type is quality inspection):
In this scenario, it is important that Usage Type 5 (Goods Receipt) is used in the inspection plan:
After goods receipt, the Quality Technician records the characteristic results in the corresponding inspection point:
In my case, the Quality Engineer accepted the quality inspection:
With the acceptance of the usage decision, the production order is put into status delivered:
How to sell from stock in this scenario is described in the next section below.
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The process (5HL) describes a sales process for Consumer Products Industry flavored products with seamless integration to the production process described in the Quality Management in Discrete Manufacturing – Consumer Products (5HK) scope item above.
The process starts with the optional creation of a customer credit risk:
Next, a sales order is created:
The Review Availability Check Result (from SAP advanced Available-to-Promise) confirms the order promise:
The app Manage Documented Credit Decisions is used to release the created sales order:
After the release of the sales order, create a delivery:
The picking process with corresponding batch management is performed (this scenario works without warehouse management integration, but warehouse management can be added in the process for customers if necessary):
After the picking process is completed; Goods Issues is performed and a Billing Document created. Once completed, this can be seen in the process flow:
To finish the process, the Billing Document is sent to the respective customer (usually this happens via EDI – Message automatically). The app Message Dashboard – SAP Application Interface Framework can be used to monitor relevant interfaces.
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In the IM&C Industry, Maintain Time-Dependent Stock Levels, Calculation of Kanban Control Cycles Based on Simulative Forecast Data, Production Engineering with Change Records, and the integration between SAP S/4HANA Cloud and SAP Digital Manufacturing Cloud have been the highlights of the 2111 release.
The new app Maintain Time-Dependent Stock Levels enables a production planner to display, create, and update time-dependent stock levels for the safety stock for specific materials.
This is how it works: By defining safety stock levels based on validity intervals, you can dynamically react to varying demands – for example if you expect a higher demand for a material during certain time periods – and immediately reduce the risk of shortfalls by ensuring a sufficient stocking of products in order to meet the demand over specific periods of time. This topic is further addressed in detail by my colleague Gerhard’s (Welker) Blog Post.
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With the help of Predictive Material and Resource Planning (pMRP) and Kanban, select non-MRP materials and non-MRP Kanban Materials for the simulation in pMRP, to create planned independent requirements (PIRs). The exported PIRs are then used to size Kanban Control Cycles (also for non-MRP relevant materials).
This new feature helps you to optimize your Kanban Control Cycles based on forecast data, even for materials that are not planned during MRP. Check out the Blog Post of my colleague Gerhard (Welker) to receive further inputs.
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2111 introduced the integration of Production Engineering with Change Record capabilities from Product Lifecycle Management within SAP S/4HANA Cloud. In general, with Change Record, you can initiate, manage, and track changes to your products. Managing engineering change processes with Change Record ensures production with approved master data. To enable approved production for process orders, you need to make configuration settings for the required approval. You can configure change record types according to your needs with Master Recipe and Bill of Material (BOM). New change rules allow you to define that a change record is required to change the master recipe. For instance, if you create and approve changes to production master data in the change record, the Process order is automatically approved. Material list can no longer be changed. Release is not possible without approval. This topic is also further addressed in detail by my colleague Gerhard’s (Welker) Blog Post.
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With the latest release, a Best Practice approach between SAP S/4HANA Cloud and SAP Digital Manufacturing Cloud integration was established. Credits go out to my colleagues Bernd (Haberscheidt) and Michael (Koerner) for providing me with helpful information.
The standard integration scenario between SAP S/4HANA Cloud and SAP Digital Manufacturing Cloud looks like this:
The standard End-to-Scenario is about having a production order created and released from SAP S/4HANA Cloud, which sends the production order to SAP Digital Manufacturing Cloud for execution. The execution process starts with the release of a shop floor order. Next, the goods issue is posted. The shop floor worker then confirms the yield, scrap quantities, activities, and goods receipt for main products using a dedicated user interface. The posting activities in SAP Digital Manufacturing Cloud trigger corresponding postings in SAP S/4HANA Cloud.
Integration wise, the standard architecture looks like this:
Now, I would like to give an overview of how it is set up on SAP S/4HANA Cloud.
First, familiarize yourself with Third-Party Shop Floor Execution – Discrete Industries in order to build a template. SAP S/4HANA Cloud is the system of record for all master data. SAP Digital Manufacturing Cloud is the system of record for all work in progress (WIP) data.
Create Technical Communication User
Start out to create a technical communication user (here the business role must contain the business catalog SAP_CORE_BC_COM, for example, the business role SAP_BR_ADMINISTRATOR.
Create Communication System
Second; create a Communication System in SAP S/4HANA Cloud.
When you create the New Communication System, enter in the Technical Data Section the information regarding the system with which you wish to integrate. In the Hostname field, enter the URL of your shop floor system without HTTPS. In the Business System field, enter the system ID for your shop floor system. In the User for Inbound Communication section, choose Add. Here you define how the external system authenticates itself when it sends business documents to your solution. You can choose one of the following authentication methods depending on the authentication method of the selected user:
- User name and password
- SSL Client & Certificate
In the User for Outbound Communication section, choose Add. Note here you define how your solution authenticates itself when it sends business documents to the external system. You can choose between the following authentication methods:
- User name and password
- SSL Client & Certificate
If you want to use an SSL Client & Certificate, you can either use the default Certificate of your solution or a trusted third-party key pair. Select an authentication method, enter the User Name that calls the shop floor system. If you choose User Name and Password for the authentication method, enter the user and the password for the user. If you choose SSL Client & Certificate, enter the Certificate Type. Don’t forget to save.
Create Communication Arrangement
Now open Communication Arrangements and create a new communication arrangement for SAP_COM_0522.
The Arrangement Name can be adapted if necessary. Next, select the Communication System that was created beforehand. The Technical User that was also created beforehand is automatically added to the Inbound Communication section. In Outbound Communication section, the user which is associated with the Communication System will be shown by default in the value help for the User Name field. By choosing this user, the Authentication Method is defaulted with the same authentication method associated with this user. In the Outbound Services section for Manufacturing Order – Send, it is necessary that the Service Status checkbox is selected for Manufacturing Order – Send, which makes the service active. In the Additional Properties section, enter the following data:
- Order Type
Click on Save and the communication arrangement has been activated.
Assign Recipients for AIF Message Monitoring
As a last step, assign recipients for AIF message monitoring.
If you want to monitor messages, use the app Message Dashboard – SAP Application Interface Framework to set it up.
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In the automotive industry, I would like to highlight two innovations in the area of Just-in-Time/Just-in-Sequence and SAP E-Mobility.
View customer JIT calls for each component group in list view. Various filter criteria can be used to restrict component groups that are managed/viewed. Check out this little video snippet to learn more:
Created packing groups can be viewed and managed in a list view. Various filter criteria can be used to restrict packing groups that are displayed:
Details of each packing group be viewed by navigating to the detail view:
On the production shop floor, production planners, production operators, or warehouse clerks are usually responsible for handling inventory. Tasks such as checking components and confirming them for production manually can often be tedious, time-consuming, and prone to human error.
A scanning function that helps shop floor personnel avoid processing errors and complete their assigned tasks faster and in a smoother manner is now available with the 2111 release:
With this new app the following is possible:
- Entering of customer JIT calls into the system possible using scanning
- Alternative entry methods include selection from F4 menu options and direct data entry
- Each user can view and process only those functions that he or she is authorized to carry out.
- Each user can view only the teams to which he or she is assigned
Sustainable mobility with SAP E-Mobility: there is now nothing in the way for buying electric vehicles in the future. The new cloud-based solution helps companies to operate electric vehicle charging infrastructures at scale to drive the transition to sustainable and convenient electric mobility.
In our SAP S/4HANA Cloud 2111 Early Release Series for Manufacturing, Supply Chain and Discrete Industries, my colleague Ulrich (Scholl) introduced and explained the topic of SAP E-Mobility in detail. Check out this video to get the insights and innovations in short:
Time to say goodbye for now
As always, I hope you liked my Blog Post for Discrete Industries in SAP S/4HANA Cloud 2111. In closing, I would like to emphasize two important links:
- SAP S/4HANA Cloud Customer Engagement Platform (coming soon)
- SAP S/4HANA Cloud 2111 Early Release Brochure.
Please drop me a line with your feedback and wishes to further enhance this blog post series.