Work in Process Batches (WIP Batch)

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internal
Work in Process Batches (WIP Batch)
Dr. Uwe Dittes, Manufacturing Development SAP AG
J rgen Wettengl, ASM Solution Management SAP AG
15. September 2008
SESSION CODE: MFG 0903
Good Afternoon ladies and gentlemen.
My name is J uergen Wettengl.
Together with my colleague Uwe Dittes we would like to give you an overview about the new sap manufacturing ERP feature
Work in Process Batches.
Firstly let us introduce ourselves.
My name is J uergen Wettengl. I work as a solution manager. I have been working for SAP since 1994.
Before I worked for a german company as a project manager for production planning and manufacturing execution.
Uwe, would you please introduce yourself.
If you do not mind. We should leave questions to the end.
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SAP 2008 / Page 2 internal
Obj ec t i ve and Lear ni ng Poi nt s
What you will learn from this session:
1. Understand the enhancement Work in Process Batches
2. Learn the benefits of using Work in Process Batchesfunctionality and how
YOU can find out what's is in for your company !
3. Examples on how the functionality can be used
4. Outlook on new enhancements planned in Work in Process Batches
functionality in future releases
What can you learn fromths session ?
You will get information about the features and functions of the work in process batch
functionality.
We would like to give you information howto benefit fromthe solution based on working
examples.
We are very interested to get your input influencing the functionality.
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SAP 2008 / Page 3 internal SAP 2008 / Page 3
Agenda
New functionality WIP Batches / Example
4
How to activate ?
- SAP Enhancement Packages -
Definition and Usage
2
Business Case
3
AGENDA
Outlook 5
1
Potential Benefits and Summary
6
We would like to start giving you informationhowto activate the newfunctionality using enhancement packages.
Than we would like to start with the definition of a work in process batches and for what you can use this
functionality.
So far no more theory. Basedon a business case the main part of the presentationare working examples howto
use the newfunctionality.
In the last two topics we will give an outlook of the enhancements plannedand howyou canbenefit.
4
SAP Enhanc ement Pac k age (EHP) - Gener al
Technical basis: SAP ECC 6.00 (ERP 2005) ->stable core
Implementation of EHP doesnt change the system behaviour
Activation of new functionality by switching on corresponding business function
Business Functions do have detailed documentation
Business Functions have test cases that are shipped also
Adaptivness (Fine tuning) via Customizing
Please note:
Deactivation of an activated business function not possible
5
Ent er pr i se Busi ness Func t i ons (TC SPRO)
Business
Fuction
Documentation
Release
Information
Test Case
6
SAP Enhanc ement Pac k age Ac t i vat i on of
WI P Bat c h Func t i onal i t y
Activate customizing for WIP Batch functionality per business function
LOG_PP_WIP_BATCH
Start Customizing transaction (OMCWB) to activate the functionality:
Check: Process Batch functionality active? (data migration required)
In case WIP functionality is activated by Customizing no reversal is possible
7
Agenda
4
How to activate ?
2
Business Case
3
AGENDA
Outlook 5
1
6
What is the definition of work in process batches and for what can you use this new
functionality ????
8
Def i ni t i on
Production Order 70001:
Cutting Forging Heat Treatment
WIP Batch A_1 WIP Batch A_2 WIP Batch A_3
The work in process batch (WIP Batch) is a partial quantity of the
production- or process order header material confirmed per
operation or phase.
WIP Batches represent an intermediate status of a product which is
in production.
Alternatively a reference material can be used instead of the header
material of the production- or process order.
Before EHP4 it was not possible to confirm batches ( a partial quantity of a material) per operation and phase.
It was only possible to confirm batches with the goods receipt of the manufacturing order. There was no work in process
information on batch level available within the manufacturing order.
The WIP Batch is a partial quantity of the production- or process order header material.
You can confirm/create WIP Batches while confirming an operation or phase.
WIP Batches represent an intermediate status of a product. Optional it is possible to classify WIP Batches using batch
characteristics.
Alternatively instead of header material of the manufacturing order you can use a reference material, which can be allocated
in the material master of the header material of the order.
9
Ex ampl e: Wor k i n Pr oc ess Bat c hes (WI P
bat c hes)
Goods issue
Stock Batch R1111
Production Order
Cutting
Forging
Heat Treatment
Oven 1
WIP_S_B1 WIP_S_B2 WIP_S_B3
WIP_M_C1 WIP_U_C2
WIP_O_D1 WIP_O_D2
Oven 2
Goods Receipt
Length: 6 meter
Length: 2 meter
Length: 2 meter
Quality: A
Length: 2 meter
Quality: A
Oven: 1
Length: 2 meter
Quality: B
Oven: 2
Length: 2 meter
Quality: B
Oven: 2
Inventory Batch GR_FIN_1
Length: 2 meter
Quality: A
Oven: 1
Create with
reference
Inventory
Inventory
WIP Batches
Split
Merge
Length: 2 meter
Quality: B
Split
WIP_A
Length: 6 meter
Based on this example we will present the new functionality. We are going to show it step by step also presenting a system
example per step.
We will create a production order with 3 operations: Cutting, Forging and Heat treatment and will confirm these using work in
process batches.
In the example we will split WIP Batches in operation cutting.
And merge WIP Batches in operation forging.
WIP batches can be classified and depending on the operation the characteristics are used to document the production.
A WIP Batch is a special type of a batch and exist only inside a manufacturing order.
10
Usage
Work in process tracking on operation / phase level of a
production or process order
Quantity based work in process stock analysis
Documentation of the actual characteristics / status of a
product which is in production
Subcontracting to send work in process batches to
subcontractors
For what can you use WIP batches ?
You can use WIP Batches for tracking of the work in process. A WIP Batch where used list per manufacturing order is
available which determines how a WIP batch was created and used in various operations of a manufacturing order.
While confirming an operation or phase you can create a goods receipt for a WIP Batch quantity.
So you can analyze the work in process stock for example using the batch information cockpit.
Using the classification system you can document the actual characteristics and status of a WIP Batch.
If you have to support subcontracting operations within a manufacturing order you can use WIP batches to send the work in
process parts to a subcontractor.
For each of this usages we will show a system example in this presentation.
11
Agenda
4
How to activate ?
2
Business Case
3
AGENDA
Outlook 5
1
6
What is the overall business case behind this functionality ?
12
Busi ness Case WI P Bat c hes
Create Production
or Process Order
Adopt Routing
/BOM or Recipe
Availability Check
Release Order
Material Staging
Production Process
Confirm Operation
/Phase
Create WIP Batch
Valuate Characteristics
Allocate Goods issue
Goods Receipt
Batch Assignment
WIP Batch to
Inventory Batch
1
2
3
4
5 6
7
8
Based on a planned order coming from the MRP run a production or process order will be created adopting the recipe or the
BOM and routing.
The user checks the material availability and release the order.
The material staging will be executed and the production process starts.
While confirming the operation or phase the user creates the WIP Batches, valuate the batch characteristics and allocate the
goods issue consumed for the WIP Batch created.
While confirming the last operation of the manufacturing order the user assigns the WIP batch created in the last operation to
a normal stock batch and creates the goods receipt into the warehouse.
13
Agenda
4
How to activate ?
2
Business Case
3
AGENDA
Outlook 5
1
6
In this chapter we would like to show you the functionality based on system examples.
14
Conf i r mat i on w i t h WI P Bat c hes
Call confirmation for
production or process
order
Create WIP Batches and
assign predecessor batch
Post goods issue
Confirm quantities
and activities
Process WIP
Batches
1
2
3
4 5
7
8
Assign goods receipt
batch
Post goods receipt
9
Enter final confirmation
for production or
process order
While confirming operations or phases of a manufacturing order the following steps shall be executed. For process orders
and production orders the functionality is the same.
First the user calls the transaction time ticket confirmation.
2.Confirming the operation the user create the WIP Batches and assign predecessor batches, post the goods issue of the
used components and confirm the activities like the setup, machine or labor time.
It is possible to process the WIP Batches e.g. using provided functionality for split and merge.
In the last operation of an order the wip batch will be assigned to a goods receipt (Stock) batch.
The user creates the goods receipt and can set the status final confirmation.
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Bat c hes)
Goods issue
Stock Batch R1111
Production Order
Cutting
Forging
Heat Treatment
Goods Receipt
Length: 6 meter
Inventory
Inventory
WIP Batches
In the first step of the example we will create a production order with the three operations
Cutting, Forging and Heat Treatment.
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Requi r ed Mast er Dat a Set t i ngs
batch managed material
original batch management
allowed
confirmation profile for
WIP batches
Adopt user profile to enable WIP batch creation during confirmations
Parameter ID: CORUPROF Parameter value: WIPBATCH
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Pr oduc t i on Or der f or WI P Mat er i al
We would like to produce 6 meter of the material WIP Finish.
18
Pr oduc t i on Or der Oper at i ons & Component s
Usage of
different work
centers
The operations will be executed on different work centers.
We will consume the component COMP_A, 6 meter from stock.
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Cr eat e WI P Bat c hes
WIP batches are created when order confirmations are executed
No WIP batch creation using batch management transaction MSC1N
You can create WIP batches
without reference
with reference to an input batch
with reference to an order item
Depending on which option you choose, you can adopt characteristic values of the
input batch or the order item in the WIP batch
While confirming operations or phases with the time ticket confirmation the user can create Work in Process
Batches:
Without reference,
With reference to an input batch from a component,
Or with reference to an order item.
Depending on the option chosed, you can adopt / derive batch characteristic values of the input batch.
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Cal l Conf i r mat i on f or Pr oduc t i on Or der s or
Pr oc ess Or der
For production orders, choose Logistics Production Shop Floor Control
Confirmation Enter For Operation Time Ticket
For process orders, choose Logistics Production - Process Process Order
Confirmation Enter for Phase Time Ticket
The WIP batch functionality for process orders and for production orders is the same.
But different transactions for time ticket confirmations have to be called depending on
production orders or process orders are used.
21
Bat c hes)
Goods issue
Stock Batch R1111
Production Order
Cutting
Forging
Heat Treatment
Goods Receipt
Length: 6 meter
Create with
reference
Inventory
Inventory
WIP Batches
WIP_A
Length: 6 meter
Based on this example we will present the new functionality. We are going to show it step by step also presenting a system
example per step.
We will create a production order with 3 operations: Cutting, Forging and Heat treatment and will confirm these using work in
process batches.
In the example we will split WIP Batches in operation cutting.
And merge WIP Batches in operation forging.
WIP batches can be classified and depending on the operation the characteristics are used to document the production.
A WIP Batch is a special type of a batch and exist only inside a manufacturing order.
22
Cr eat e WI P Bat c h w i t h Ref er enc e t o
Component Bat c h
While confirming the operation cuttingcomponent Comp_A, batch R1111 is consumed.
Clicking on the button create Work in Process Batchleads to WIP batch WIP_A with reference to component
batch R1111.
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Cl assi f y Char ac t er i st i c s of WI P Bat c h
Status message
Classification of
batch characteristics
Original batch material
The characteristic value lengthis assigned to WIP Batch WIP_A.
Derived from the consumed input batch R1111 of the component comp_a.
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Post Goods Rec ei pt f or WI P Bat c h
Creation of goods receipt with movement type 521 (goods receipt to blocked stock).
25
Bat c h Mast er f or WI P Bat c h Bat c h Type
Automatically with the confirmation a batch master is created with the batch type Work in process batch.
We have used the reference material WIP Finish Ref for the WORK in Process Batches.
The reference material is allocated to the header material of the order maintained in the material master.
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Bat c h Mast er f or WI P Bat c h Cl assi f i c at i on
and St oc k Over vi ew
The batch master is classified with the characteristic lengthderived from the component batch.
By using MM transactions and batch information cockpit (BIC) it is possible to get a quick overview about the
available stock.
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Spl i t WI P Bat c hes
Goods issue
Stock Batch R1111
Production Order
Cutting
Forging
Heat Treatment
Goods Receipt
Length: 6 meter
Length: 2 meter
Create with
reference
Inventory
Inventory
WIP Batches
Split Split
WIP_A
Length: 6 meter
While confirming the operation cutting work in process batch WIP_A is split in three wip
batches.
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Spl i t WI P Bat c hes
We mark the item of WIP Batch WIP_A1 and click the button batch split.
In this case we will split one WIP batch in 3 WIP batches.
We cut the the wipbatch WIP_A1 with the length of 6 meter and created three batches with the length of 2 meter.
29
Bat c h Wher e Used Li st f or WI P Bat c hes
Analysis of the WIP batch usage can be done using the WIP batch where-used list (via order menu)
The situation after confirming the operation cutting is:
- WIP batch WIP_A was created with reference to the stock batch R1111.
- WIP batch WIP_A was split in three different WIP batches WIP_S_B1, WIP_S_B2, and WIP_S_B3
30
St oc k Over vi ew of WI P Bat c hes (TC MMBE)
On stock there are three batches with a length of 2 meter each.
The stock for the predecessor batch A is reduced automatically.
31
Mer ge WI P Bat c hes
Goods issue
Stock Batch R1111
Production Order
Cutting
Forging
Heat Treatment
WIP_M_C1 WIP_U_C2
Goods Receipt
Length: 6 meter
Length: 2 meter
Length: 2 meter
Quality: A
Create with
reference
Inventory
Inventory
WIP Batches
Split
Merge
Length: 2 meter
Quality: B
Split
WIP_A
Length: 6 meter
While confirming the operation Forging WIP batches are merged.
In this example the two WIP batches WIP_S_B1 and WIP_S_B2 are merged to create WIP batch WIP_S_C1.
Characteristics for the batch WIP_M_C1 and WIP_U_C2 are valuated. Both batches have a length of 2 meter, but
obtain different quality codes.
32
Mer ge WI P Bat c hes
WIP batches WIP_S_B1 & WIP_S_B2 are marked.
Then button Merge WIP batches is clicked.
WIP batch WIP_M_C1 is created.
33
Cl assi f i c at i on of Mer ged WI P Bat c h
Merged WIP batch WIP_M_C1
Maintenance of batch characteristics: Batch WIP_M_C1 got a quality code A.
34
Bat c h Wher e-Used Li st af t er Spl i t & Mer ge of
WI P Bat c hes
After confirming the second operation the WIP batch where-used list looks like this.
The batch split and the batch merge is documented.
After the operation Forging there exist WIP batches WIP_M_C1 and WIP_U_C2 on stock.
35
WI P Bat c hes af t er Oper at i on Heat Tr eat ment
Goods issue
Stock Batch R1111
Production Order
Cutting
Forging
Heat Treatment
Oven 1
WIP_B1 WIP_ B2 WIP_ B3
WIP_M_C1 WIP_U_C2
WIP_O_D1 WIP_O_D2
Oven 2
Goods Receipt
Length: 6 meter
Length: 2 meter
Length: 2 meter
Quality: A
Length: 2 meter
Quality: A
Oven: 1
Length: 2 meter
Quality: B
Oven: 2
Create with
reference
Inventory
Inventory
WIP Batches
Split
Merge
Length: 2 meter
Quality: B
Split
WIP_A
Length: 6 meter
Operation Heat treatment is confirmed, WIP batches WIP_O_D1 and WIP_O_D2 are created.
Using the batch characteristics it is documented that Oven 1 was used to produce batch WIP_O_D1 and oven 2 was used to
produce batch WIP_O_D2.
36
WI P Bat c h Wher e-Used Li st Af t er Conf i r mat i on
of Heat Tr eat ment Oper at i on
After confirming the three operations the WIP batch where-used list looks like this.
WIP batches WIP_D1 and WIP_D2 were produced. It is now possible to analyze the WIP batch usage.
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WI P Bat c hes: Assi gned Goods Rec ei pt s
Goods issue
Stock Batch R1111
Production Order
Cutting
Forging
Heat Treatment
Oven 1
WIP_M_C1 WIP_U_C2
WIP_O_D1 WIP_O_D2
Oven 2
Goods Receipt
Length: 6 meter
Length: 2 meter
Length: 2 meter
Quality: A
Length: 2 meter
Quality: A
Oven: 1
Length: 2 meter
Quality: B
Oven: 2
Create with
reference
Inventory
Inventory
WIP Batches
Split
Merge
Length: 2 meter
Quality: B
Split
WIP_A
Length: 6 meter
Length: 2 meter
Quality: B
Oven: 2
Length: 2 meter
Quality: A
Oven: 1
In the last step work in process batches WIP_O_D1 and WIP_O_D2 are delivered to the
warehouse creating a goods receipt.
38
Cr eat i on of I nvent or y Bat c h by Goods Rec ei pt
of WI P Bat c h
WIP Batch
WIP_O_D1
Inventory Batch
GR_FIN_1
The user marks the WIP batch WIP_O_D1 and the item for the goods receipt and clicks on the button Assign
Goods Receipt.
Goods receipt for the batch GR_FIN_1 with movement type 101 will be created.
Characteristic valuationof the WIP batch is transferred to the inventorybatch
39
Bat c h Wher e Used Li st f or I nvent or y Bat c h
GR_FI N_1
40
Bat c h Wher e Used Li st : I nvol ved WI P Bat c hes
41
Ex ampl e: Subc ont r ac t i ng of WI P Bat c hes
Pr oduc t i on Or der
If you have to support subcontracting operations within a manufacturing order you can use WIP batches to send
the work in process parts to a subcontractor.
In this example the operation 0020 Assembly Componentsshall be outsourced defined in the control key of the
operation.
Pressing components and packaging will be done internal.
42
Component s f or Oper at i on
The components COMP_C and COMP_D are allocated to the external operation and have to be provided to the
supplier.
together with the work in process parts from the operation pressingthe operation before.
43
Comf i r m i nt er nal Oper at i on
First step would be to confirm the internal operation pressing and creating the work in
process batch P_10 with a quantity of 100 pieces.
44
Pur c hase Or der I t em
While creating or releasing the production order a purchase requisition for the external operation Assembly componentsis
created and converted in a purchase order to send to the supplier.
In this case the reference material WE_WIP_Finish_REF is used as material identification instead of the order header
material.
45
Pur c hase Or der Component s
How does the purchase order look like?
For the production on supplier side we have to provide the components COMP_C and COMP_D and
The pressed parts the WIP Batch P_10 created in the internal operation before.
The functionality to create an item for the work in process material is new.
Based on these items the delivery can be created and the work in process batches and the components can be transferred to
the supplier.
Optionally you can allocate the batches early in the purchase order or later in the delivery or the goods issue.
46
Conf i r m ex t er nal Oper at i on
After the supplier has assembled it is possible to confirm the assembled WIP batch confirming operation 0020.
In the example we create the WIP Batch P_20 100 pieces produced.
And allocate the used component batch 1605 from the components COMP_C and COMP_D confirmed from the supplier.
Using the WIP Batch reference material Finish_Ref we allocate also the usage of WIP Batch P_10 the delivered pressed parts to the
supplier.
If you use the supply network collaboration system (SNC) the confirmation of external operations can be triggered automatically.
My colleague Uwe Pfisterer will give you more details about the new features developed for supporting outsourced manufacturing in his
presentation tomorrow.
47
Bat c h Wher e Used Li st
In the WIP Batch where used list also confirmations for external operations using WIP batches
are considered.
48
Agenda
4
How to activate ?
2
Business Case
3
AGENDA
Outlook 5
1
6
Currently the WIP batch tracks the material on a quantity basis only.
We are evaluating how a wip batch can be also valuated.
During the goods receipt posting of a WIP batch a new valuation strategy for material price determination shall be introduced.
With the new valuation strategy the price for the WIP batch will be calculated based on the defined planned costs for the
operation the WIP Batch is being created.
49
Ex ampl e: WI P Bat c hes
St oc k Val uat i on
Goods issue
Component:
Stock Batch R1111
Production Order
Cutting:
50 USD per meter
Forging:
100 USD per meter
Heat Treatment:
200 USD per meter
WIP_M_C1 WIP_U_C2
WIP_O_D1 WIP_O_D2
Goods Receipt
Finished Product:
Length: 6 meter
Length: 2 meter
Length: 2 meter
Quality: A
Length: 2 meter
Quality: A
Oven: 1
Length: 2 meter
Quality: B
Oven: 2
Inventory
Inventory
WIP Batches
Length: 2 meter
Quality: B
Value: 400 USD
V: 100 USD V: 100 USD V: 100 USD
V: 200 USD
Value: 800 USD V: 400 USD
Price
Determination
?
Length: 2 meter
Quality: B
Oven: 2
Length: 2 meter
Quality: A
Oven: 1
Based on the example shown before the Price determination can look like this variant using the planned costs calculated per
operation.
Based on the material costs and activity costs of a production order operation the system can calculate the price to consider
per operation.
In this example the price for the WIP Batch after cutting would be 50 USD per meter. After forging 100 USD and after heat
treatment 200 USD.
We would like to ask you which variants for the price determination of a wip batch are required in your company.
In this example the price is calculated based on planned costs. Is it e.g. also required to calculate the price for a WIP batch
also on a basis of actual costs ??
We are very interested to get your input. In the presentation you can find our E-Mail addresses. Examples would be very
helpful for us..
50
Agenda
4
How to activate ?
2
Business Case
3
AGENDA
Outlook 5
1
6
What could be the benefit using the WIP batch functionality.
51
Pot ent i al Benef i t
Fulfil legal requirements:
. requires the maintenance of strict batch traceability through the
manufacturing process from raw material through to finished product.
Supports defect tracing, call-back activities and regression
requirement
Better visibility to reduce the work in process stock
The WIP Batch functionalitycan help to fulfill legal requirements and requirements fromcustomers to be able to trace a
specific batch.
It supports defect tracing ,callback activities and regression requirements.
And last but not least it gives a better visibilty controlling the work in process stock.
52
Summar y
Definition:
The work in process batch (WIP Batch) is a partial quantity of the
production- or process order header material confirmed per operation
or phase.
WIP Batches represent an intermediate status of a product which is in
production.
Alternatively a reference material can be used instead of the header
material of the production- or process order.
Usage:
Work in process tracking, work in process stock analyse,
Documentation, Subcontracting
To sum up:
Before EHP4 It was only possible to confirm batches with the goods receipt of the manufacturing order.
Within a manufacturing order there was no work in process information on batch level available in the system.
The WIP Batch is a partial quantity with an intermediate status of the production- or process order header material.
Alternatively a reference material can be used.
You can confirm/create WIP Batches per operation or phase.
You can use the functionality for Work in process tracking, stock analyse, documentation and supporting the subcontracting
processes.
We are veryinterested to get your input. Please let us knowIf you have further requirements. Our E-mail adresses you can
find in the next slide.
Thank you very much.
Do you have questions ?
53
Summar y
Availability:
Business Function in SAP ECC 6.0 Enhancement Pack 4
(ECC 6.04)
Contacts:
Dr. Uwe Dittes ( Uwe.Dittes@sap.com)
J rgen Wettengl ( J uergen.Wettengl@sap.com)
54
Thank You f or Par t i c i pat i ng !
[
SESSION CODE: MFG 0903
Please remember to complete and return your
evaluation form following this session.
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Community page at www.asug.com/yrc
55
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