[

Implementing Extended Warehouse

Management in a Production Environment
Kyle Sorensen
LogiStar Solutions, LLC

[ Learning Points
Understand the integration between EWM and PP-PI
(Manufacturing/Production Module in ERP)
Understand the production staging options available in EWM
Understand the use of Control Cycles
See EWM and Production in action (Demo)

Real Experience. Real Advantage.

[ EWM and Production Overview

Standard integration between EWM and Production Planning / Process
Industry (PP-PI) module in ERP existed in EWM 5.1 and ECC 6.0 EHP3 for
Goods Receiving
The GAP was that integration for production staging (supplying materials to
production) did not exist

This GAP was closed with EWM 7.0 and ECC 6.0 EHP4

Source: SAP, SAP Extended Warehouse Management, Andres Botero 2011

Real Experience. Real Advantage.

[ EWM and Production Process Flow Example

Real Experience. Real Advantage.

[ Production Staging Integration

Production staging is executed via an object called a Production
Supply Area (PSA)
The PSA tends to be a staging area where raw materials and WIP
are brought before they are introduced into the manufacturing
process
One or more PSAs can be defined for your
Production/Manufacturing Area

Multiple production organizational models exist on how the

PSA can be setup and controlled between ERP and EWM
These models will be discussed in more detail next

Real Experience. Real Advantage.

[ Production Staging Integration (cont)

Separate PSA sloc used in ERP/EWM (PSA visibility in ERP)

Step 1

Step 2

Production Supply using:

- Posting Change Delivery (F2 -> P2)
- Stock Transfer + WT (Crate Parts)
- Internal WT only (Crate Parts)

Consumption Posting (GI) using:

- Outbound Delivery

Source: SAP, PP Integration Part I, Jan Kappallo, Pascale Van Laethem, Steffen Weissbach 2008

Real Experience. Real Advantage.

[ Production Staging Integration (cont)

No separate PSA used in ERP/EWM
The PSA would fall under one of the existing storage locations

Step 1

Step 2

Production Supply using:

- Posting Change Delivery (F2 -> F2)
- Stock Transfer + WT (Crate Parts)
- Internal WT only (Crate Parts)

Consumption Posting (GI) using:

- Outbound Delivery

Source: SAP, PP Integration Part I, Jan Kappallo, Pascale Van Laethem, Steffen Weissbach 2008

Real Experience. Real Advantage.

[ Production Staging Integration (cont)

Non-EWM Managed PSA

Source: SAP, PP Integration Part I, Jan Kappallo, Pascale Van Laethem, Steffen Weissbach 2008

Real Experience. Real Advantage.

[ Production Staging Integration (cont)

Staging to a separate EWM Warehouse

Source: SAP, PP Integration Part I, Jan Kappallo, Pascale Van Laethem, Steffen Weissbach 2008

Real Experience. Real Advantage.

[ Production Supply Staging Strategies

EWM consists of the same production staging strategies as ERP
WM
Release Order Parts Components that can be staged across
multiple orders based on BOM
Pick Parts Components that are staged just for the single order
based on BOM
Crate Parts Components that are needed in production but
dont have to be on the BOM. Typically frequently used materials
such as water, nuts/bolts, corrugate, etc.
KANBAN A way of managing Crate Parts product based on
visual queues

The production staging strategy is assigned to a control cycle

(explained later)
Real Experience. Real Advantage.

10

[ Production Supply Area Creation

PSAs can be replicated from ERP or created manually and then
mapped to ERP in EWM

Real Experience. Real Advantage.

11

[ Production Supply Area Bin

A production storage bin(s) is then created in EWM

And an assignment between the production bin and the

product/warehouse and PSA is made

Real Experience. Real Advantage.

12

[ Control Cycle
An ERP master data element called a Control Cycle is created
in order to specify what materials are staged to the various
PSAs with what staging strategy

Now, when the production

or process order has
material staging performed in
ERP, the material knows what
staging strategy it needs to
perform
Real Experience. Real Advantage.

13

[ Demo
A process order is created in ERP to create 24EA (1 CS) of
Finished Good BEV1002

Real Experience. Real Advantage.

14

[ Demo
Here are what the components (BOM) look like

Backflushing is
activated on these
components

Real Experience. Real Advantage.

15

[ Demo
The Process Order is then released

And then WM staging is executed

Real Experience. Real Advantage.

16

[ Demo
The WM staging automatically executed an Outbound Delivery
to EWM (can be seen on VL06O)

Real Experience. Real Advantage.

17

[ Demo
Based on my Production Supply Area organizational model (No
separate PSA, all in the same EWM warehouse) a Posting
Change Request is created in EWM

Real Experience. Real Advantage.

18

[ Demo
The posting change request was automatically converted to a Posting
Change via a PPF action

Real Experience. Real Advantage.

19

[ Demo
The Posting Change can be located easily via the Warehouse
Management Monitor under the Documents folder (Posting
Change Items)

Real Experience. Real Advantage.

20

[ Demo
By clicking on the underlined Posting Change document, you
can go directly to the document itself

Real Experience. Real Advantage.

21

[ Demo
Reference exists between my OBDN from ERP and the Posting
Change

Real Experience. Real Advantage.

22

[ Demo
Now, Warehouse Tasks are created to pick the product (using
removal strategies) from the warehouse bins to the PSA.

Real Experience. Real Advantage.

23

[ Demo
The tasks are confirmed and stock is updated

Real Experience. Real Advantage.

24

[ Demo
The Posting Change in EWM will now be automatically closed
and a 411 posting will trigger in ERP

Real Experience. Real Advantage.

25

[ Demo
The process order is now Confirmed
Various transactions exist to perform the confirmation in ERP. The end result is
the same. My configuration is set to trigger a backflush of the components and
an automatic Goods Receipt

Real Experience. Real Advantage.

26

[ Demo
Looking at the goods movements that the confirmation
triggered:
Outbound Delivery to issue out the components
Inbound Delivery in order to receive the Finished Good

Real Experience. Real Advantage.

27

[ Demo
The stock has been automatically goods issued out of the PSA
bin (backflushed). Products GB100 and GBL110 are gone.

Real Experience. Real Advantage.

28

[ Demo
The OBDN has been automatically closed in EWM

And in ERP

Real Experience. Real Advantage.

29

[ Demo
An ERP Inbound Delivery was automatically created

And distributed to EWM

Real Experience. Real Advantage.

30

[ Demo
Now, a Warehouse Task(s) is created for the IBDN (finished
good)

Real Experience. Real Advantage.

31

[ Demo
And then confirmed

Real Experience. Real Advantage.

32

[ Demo
This posts a Goods Receipt back to ERP

Real Experience. Real Advantage.

33

[ Resources
SAP PowerPoint - SAP Extended Warehouse Management,
Andres Botero, 2011
SAP PowerPoint - PP Integration Part I, Jan Kappallo, Pascale
Van Laethem, Steffen Weissbach 2008

Real Experience. Real Advantage.

34

[ Key Learnings
Understand the integration between EWM and PP-PI
(Manufacturing/Production Module in ERP)
Understand the production staging options available in EWM
Understand the use of a Control Cycle
See how EWM and Production work together

Real Experience. Real Advantage.

35

Thank you for participating.

Please remember to complete and return your
evaluation form following this session.
For ongoing education on this area of focus, visit the Year-Round
Community page at www.asug.com/yrc

Real Experience. Real Advantage.

SESSION CODE: 1105

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