BBP SAP WM Implementation Luminous

Business Blueprint Document SAP WM Implementation for Luminous Issue: 0.0

Date : 02/05/2016

SAP WM IMPLEMENTATION FOR LUMINOUS POWER TECHNOLOGIES LTD. DRAFT VERSION

1


Date : 02/05/2016

TABLE OF CONTENTS

1

EXECUTIVE SUMMARY .................................................... .................... ................................................. ................. 4 1.1 Background .................................................................................. 4 1.2 Business Blueprint Overview ........................................................... 4 1.3 Warehouse Management ................................................................ 5 1.4 Implementation Scope ................................................................... 7 1.4.1 1.4.2

2 3

4

5

1.5 Module Integration ........................................................................ 8 1.6 Interface Requirement ................................................................... 8 ORGANISATION STRUCTURE STR UCTURE ........................................................... ..................................................... ...... 9 ORGANIZATIONAL ELEMENTS............................... ........................................................ ......................... 10 3.1 Plants ........................................................................................ 10 3.2 Storage Locations ........................................................................ 10 3.3 Warehouse Number ..................................................................... 11 3.4 Storage Types ............................................................................. 11 3.5 Storage Section .............................. ............................................................. ............................................. .............. 13 MASTER DATA............................. ............................................................. ................................................... ................... 14 4.1 Material Master ........................................................................... 14 4.2 Storage Bin Master ...................................................................... 15 BUSINESS PROCESSES .................................................................. 16 5.1 Warehouse Material Put-away ....................................................... 16 5.1.1 5.1.2 5.1.3 5.1.4

5.2

5.3

Purpose............. .......................... .......................... .......................... .......................... .......................... ......................... ............ 19 Master Data ........... ........................ .......................... .......................... .......................... .......................... ..................... ........ 21 Features with reference to CIL ................................... ................................................ ....................... .......... 21 Business Process ........... ........................ .......................... .......................... .......................... ......................... .............. .. 21

Warehouse Material Transfer posting ............................................. 22

5.3.1 5.3.2 5.3.3 5.3.4

5.4


Warehouse Material Picking .......................................................... 19

5.2.1 5.2.2 5.2.3 5.2.4


Physical Inventory ....................................................................... 24

5.4.1 5.4.2 5.4.3 5.4.4

6 7 8 9

Geographical Coverage ............. .......................... .......................... ......................... .......................... ................... ..... 7 Functional Scope ........... ........................ .......................... .......................... .......................... ......................... ................ ....7


5.5 Movement types t ypes ............................. ............................................................ ............................................. .............. 26 MODULE INTEGRATION ................................................................. .................................. ............................... 28 INTERFACE REQUIREMENT .............................. ............................................................ .............................. 29 STANDARD INFORMATION SYSTEM ................................ ............................................... ............... 29 ANNEXURES................................ ................................................................ ................................................... ................... 32 9.1 Master Data Templates................................................................. 32 2


Date : 02/05/2016

TABLE OF CONTENTS

1

EXECUTIVE SUMMARY .................................................... .................... ................................................. ................. 4 1.1 Background .................................................................................. 4 1.2 Business Blueprint Overview ........................................................... 4 1.3 Warehouse Management ................................................................ 5 1.4 Implementation Scope ................................................................... 7 1.4.1 1.4.2

2 3

4

5

1.5 Module Integration ........................................................................ 8 1.6 Interface Requirement ................................................................... 8 ORGANISATION STRUCTURE STR UCTURE ........................................................... ..................................................... ...... 9 ORGANIZATIONAL ELEMENTS............................... ........................................................ ......................... 10 3.1 Plants ........................................................................................ 10 3.2 Storage Locations ........................................................................ 10 3.3 Warehouse Number ..................................................................... 11 3.4 Storage Types ............................................................................. 11 3.5 Storage Section .............................. ............................................................. ............................................. .............. 13 MASTER DATA............................. ............................................................. ................................................... ................... 14 4.1 Material Master ........................................................................... 14 4.2 Storage Bin Master ...................................................................... 15 BUSINESS PROCESSES .................................................................. 16 5.1 Warehouse Material Put-away ....................................................... 16 5.1.1 5.1.2 5.1.3 5.1.4

5.2

5.3


Warehouse Material Transfer posting ............................................. 22

5.3.1 5.3.2 5.3.3 5.3.4

5.4


Warehouse Material Picking .......................................................... 19

5.2.1 5.2.2 5.2.3 5.2.4


Physical Inventory ....................................................................... 24

5.4.1 5.4.2 5.4.3 5.4.4

6 7 8 9

Geographical Coverage ............. .......................... .......................... ......................... .......................... ................... ..... 7 Functional Scope ........... ........................ .......................... .......................... .......................... ......................... ................ ....7


5.5 Movement types t ypes ............................. ............................................................ ............................................. .............. 26 MODULE INTEGRATION ................................................................. .................................. ............................... 28 INTERFACE REQUIREMENT .............................. ............................................................ .............................. 29 STANDARD INFORMATION SYSTEM ................................ ............................................... ............... 29 ANNEXURES................................ ................................................................ ................................................... ................... 32 9.1 Master Data Templates................................................................. 32 2


9.2 9.3 9.4

Date : 02/05/2016

GAPS ......................................................................................... 32 Open Point ............................... ............................................................... ................................................... ................... 32 Assumptions ............................................................................... 32

Abbreviation List 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. 21.

MM WM SD PP LE CSBP FSBP EA Ltd PO SO GR GI TR TO w.r.t. WH T Code SU SUT UoM

-

Materials Management Warehouse Management Sales & Distribution Production Planning Logistic Execution Current State Business Process Future State Business Process Each Limited Purchase Order Sales Order Goods Receipt Goods Issue Transfer request Transfer order With respect to Warehouse Transaction Code in SAP Storage Unit Storage Unit Type Unit of Measure

3


Date : 02/05/2016

1 EXECUTIVE SUMMARY 1.1 Background Luminous Power Technologies Ltd. is focusing its concentration on traceability of the materials in their warehouse operations. They wants to implemented warehouse Management in their warehouses. And also they wants to integrate one third party application (developed by BCIL). For Managing all the transaction in Third party application and record all the transaction through RFC connections in SAP.

1.2

Business Blueprint Overview

This document summarizes the findings of the Techfour Engineering Solutions Pvt. Ltd. and Luminous Team, with respect to SAP WM Implementation in Luminous Power Technologies Ltd. The information was gathered through various activities carried out during different phases of projects i.e. Review of Physical warehouse, Review of business processes, Business procedures, Documentation and Relevant reports. The purpose of Business Blueprint document is to move forward with the Implementation of Luminous SAP R/3 WM system in Tauru Plant. At the conclusion of the blueprint, the Techfour Engineering Solutions Pvt. Ltd. consultants determined the SAP functionality required to run the luminous business. The Blueprint and its associated appendices present a summarized perspective of all functional business processes which will be implemented. As such, the Blueprint document will serve the dual role of both official project scope as well as system acceptance criteria. The body of this document describes the Organizational Structure, Master Data, and R/3 functional process flows to be implemented at Luminous Tauru Plant. Generally, requirements that can be met using standard R/3 functionality through routine configuration tasks are not explicitly documented. The Blueprint reiterates the R/3 organizational structures that have been identified and will serve as the basis for the initial configuration activities. No significant configuration and customization choices have been identified that will prevent the future implementation of additional capabilities within the R/3 environment. The information gathered and documented in the Blueprint is sufficient for the team to go forward into the Realization phase. However, it is critical that both Techfour and Luminous team agree on the scope of the project as presented in this document. Acceptance - by both teams - is required to move the project into the next phase.

4


Date : 02/05/2016

1.3 Warehouse Management Warehouse Management module is used for mapping the material storage Business processes used by Luminous, for Planning, Receipts, Issues, Transfer Posting, Physical Inventory.

It is sub divided into

Strategies



Activities



Storage units



Hazardous Material



Planning & Monitoring







Interfaces



Bin Management



Integration with third party application

Strategies:

The tasks of the SAP WM component are as follows: In this, settings are made related to strategies to receive proposal from the SAP system. With help of these strategies the SAP system can use available transfer & warehouse capacity optimally.

For strategies, the following procedures are available: 

Put-away strategies



Picking Strategies

Few other settings required before activating the actual put-away & picking strategies as listed below. 1.

Activate Storage Type Search

In this configuration setting we try to maintain storage type search indicators with help of which SAP warehouse management system can search in which storage type material can be place or from which storage type material can be picked. 2.

Activate Storage Section Search

In this configuration setting we try to maintain storage section indicators with help of which SAP warehouse management system can search in which storage section of the storage type material can be place or from which storage section of storage type material can be picked.

5

Business Blueprint Document SAP WM Implementation for Luminous Issue: 0.0 

Date : 02/05/2016

Activities:

This component deals with the following tasks.

Transfer



Confirmation



Define Print Control



Physical Inventory



In transfer process we configure mainly the requirement type, shipment type & movement types. Requirement type is category of the originating document in IM against which the WM document needs to be created. Shipment type is the type of transfer happening in the warehouse like movements important for materials & movement concern for warehouse. 

Interfaces

The Warehouse Management system (WMS) is fully integrated into the SAP system. Business processes, which you trigger in other application components, lead to physical goods movements in your warehouse. You organize, control and monitor these goods movements with the WMS. Interface to Inventory Management ( MM-IM) You trigger most activities in the WMS via Inventory Management, including most goods receipts, goods issues and posting changes. 

Storage Unit Management

Storage unit (SU) management in Warehouse Management (WM) enables you to optimize warehouse capacity and control material flow by utilizing storage units within the warehouse. A storage unit is a logical grouping of one or several amounts of material such as a pallet or a container that can be managed within a warehouse as a unit that belongs together. Storage units can be either homogeneous (containing one material item only) or mixed (containing two or more material items). All storage units, whether the materials are stored on standard pallets, wire baskets or other containers, are assigned an identifier — a number — which is maintained in the system as the storage unit number. Therefore, it is possible at any given time to know where each storage unit is located in the warehouse complex, the amount of material contained in it, and which operations have been processed or planned for it.

6


Date : 02/05/2016

1.4 Project Scope

1.4.1 Geographical Coverage The following units are within the scope of SAP WM Implementation at Luminous: Plant

Warehouse

Dedicated Units

TAURU

TAURU

This site is currently a Central Warehouse

1.4.2 Functional Scope TAURU SAP WM Implementation scope for warehouse management module under logistics is as follows: Warehouse Management 

Warehouse o

Transfer Requirement

o

Transfer Order

o o

o o



Put-away & Picking Strategy Master Data Warehouse Control  Storage type  Storage section   Bin

Activities o o o o o



Transfer posting Storage type, Storage section & Bin determination

Requirement type Shipment type Warehouse movements Printer setting Print form & labels

Physical Inventory Phys. Inventory Doc. o Inventory Count o WM Difference o IM Difference o

7


Date : 02/05/2016

Integration with Third Party Application (developed by BCIL) o Master data flow( Material, Plant, Vendor, Material Plant combinations) o Material Receiving from internal source o Material Receiving from external Source o Internal Movement o Dispatch to other Plants o Sale o Sales Return o Issue on Returnable Gate Pass o Receiving against returnable gate pass o Physical Inventory Process



1.5 Module Integration Warehouse Management is integrated with MM, SD, QM & PP modules. For CIL SAP WM integration with WM-QM & WM-PP is not in scope of this project.

 

MM – Interim area for the material receipt, Integration with good receipt & transfer posting material document SD – Interim area for the material issue, Integration with good issue material document

1.6 Interface Requirement Integration of SAP WM system with third party Application system (Developed by BCIL) project. Scope of this integration as below: 1. Master data flow( Material, Plant, Vendor, Material Plant combinations) 2. Material Receiving from internal source 3. Material Receiving from external Source 4. Internal Movement 5. Dispatch to other Plants 6. Sale 7. Sales Return 8. Issue on Returnable Gate Pass 9. Receiving against returnable gate pass 10.Physical Inventory Process

8


Date : 02/05/2016

2 ORGANISATION STRUCTURE Current Organisation Structure

Proposed Organisation Structure

9

Business Blueprint Document SAP WM Implementation for Luminous Date : 02/05/2016

Issue: 0.0

3 ORGANIZATIONAL ELEMENTS 3.1 Plants Plant is an organizational unit within material management & is assigned to the warehouse with unique combination of the plant & storage location.

The following plant is considered for Luminous WM Implementation:

Plant

Plant Description

1021

TAURU Central Warehouse

3.2 Storage Locations A Storage location is an organizational unit within material management & is assigned to the warehouse with unique combination of the plant & storage location.

The Storage locations considered for Luminous WM Implementation:

Plant

Plant Description

Storage location

Storage location Description

To be identified

To be identified

Company Code LPTL 1021

Tauru

First two digits indicate the Site or Location for the ease of Identification. Additional storage locations can be added if required.

Negative stocks will not be allowed at any of the above storage locations.

10


Issue: 0.0

3.3 Warehouse Number Warehouse Number A warehouse complex is represented in the Warehouse Management system as a warehouse number that is used to identify a complex warehouse setup. The physical location is usually decisive for assigning the definition of the warehouse number. A warehouse number group together storage types and storage bins that are organized and maintained as a complete unit. A warehouse number has the following ch aracteristics: 

A warehouse number does not have an address, but a short descriptive text.



It is possible to store material data that is specific to a warehouse number.



Within each warehouse number, the stock figures are managed as quantities, not as values.



Within a plant it is not possible to assign several storage locations to the same warehouse number.

The following warehouse number decided for the Tauru site.

WH

Warehouse Description

To be decided yet

Tauru Warehouse

The assignment of Warehouse to the plant & storage location combination is as follows: Plant

Storage location

Warehouse

Warehouse Description

1021

Storage location to be identified

To be decided yet

Tauru Warehouse

3.4 Storage Types A warehouse number is divided up into a number of storage types. A storage type is defined on the basis of its spatial or organizational features (for example, high rack storage area, bulk storage area, goods receipt area).

A storage type has the following f eatures:

11


Issue: 0.0



A storage type does not have an address, but a short description.



It is possible to store storage-type-specific material data.



Within a storage type, inventory is executed for each storage bin.

The Storage types defined for Luminous Tauru WH are:

Storage Types (max 3 char)

Description (max 25 char)

901

GR Area for Production

902

GR Area External Receipts

904

Returns

910

GI Area General

911

GI Area for Cost Centre

912

GI Area Customer Order

913

GI Area - Fixed Assets

914

GI Area Production Orders

915

Fixed Bin Picking Area

916

Shipping Area Deliveries

917

Quality Assurance

918

Goods Issue Area Contain.

920

Stock Transfers (plant)

921

Stock Transfers (St. Loc)

922

Posting Change Area

923

Packaging Area

980

R/3 --> R/2 Cumulative

998

Init. Entry of Inv. Data

999

Differences

GRA

Generic racks

12


Issue: 0.0

OPN

Open Storage

HRA

High Rack

RET

Return

3.5 Storage Section Within a storage type, a storage section is a series of storage bins with the same features.





When you create a storage bin, you must enter a storage section. If you are using storage types without sections, you must define at least one storage section (for example, 001) per storage type. The storage section in this case is identical to the storage type.

At Luminous Tauru below are the Storage Section to be created as per physical WH. Yet to be decided……..

13


Date : 02/05/2016

4 MASTER DATA 4.1 Material Master The material master data created at warehouse contains information stored at warehouse level & storage type level.

Maintaining material master at the warehouse level we can maintain the various fields such as unit of measures for the material, Indicators related to storage strategies in Warehouse View 1 of the material master. In Warehouse View 2 we can maintain Palletization data in e.g. SUT type UoM of SUT & LE Quantity.

Maintaining the material at storage location level in addition to the above mentioned fields we can also maintain the details related to fix bin, picking area, maximum / minimum bin quantity, control quantity, replenishment quantity & rounding quantity.

Unit of measure



The R/3 System distinguishes between the following units of measure: 

Base unit of measure

This is the unit of measure in which the stocks of a material are managed. The system converts all quantities entered in other units to the base unit of measure. 

Warehouse Management Unit of Measure

This Unit of measure is one in which SAP warehouse management system manages the material. SAP recommend to only maintain this field if you want to use a unit of measure that differs from the base unit of measure or the alternative units of measure. 

Unit of issue

This is the unit in which the material issued from the warehouse.



Proposed UoM from material (Default for unit of measure from material master record)

In the material master record you can define different units of measure for each material. In a business environment, for example, in the warehouse, only one unit of measure is used per material so that the user does not need to specify a unit for the quantities.

The defaults you define determine which unit of measure the system will propose if a user does not enter a unit of measure together with the material quantity. Initially, the system attempts to use the unit of measure defined in the material master record. If none is available in the material master, the system attempts to assign one of the defaults 14


Date : 02/05/2016

from the warehouse number record. If these defaults have not been maintained, the system uses the base unit of measure.

For example, various proposed options by system for proposed UoM as below.

Proposed UoM

Description

from material A

Unit of issue

B

Order unit

K

Base unit of measure if no other unit of measure specified

L

WM unit of measure

M

WM unit of measure also for other UoM in reference doc.

N

Base unit of measure, even if another UoM in reference doc. Base unit of measure

4.2 Storage Bin Master The storage bin, also referred to as coordinate, is the smallest unit that can be accessed in a warehouse. Each storage bin must be assigned to a storage section. While creating the Storage Bin master fields related to Storage bin type, Maximum weight (capacity check), Fire containment section (applicable for Hazardous materials). Storage bins could be created by individual storage bin creation t-code (LS01 / LS01N) or several storage bin simultaneously (LS10)

15


Date : 02/05/2016

5 BUSINESS PROCESSES 5.1 Warehouse Material Put-away

Material put-away is based on IM movement trigged in Inventory management. For planning the automatic proposal of the material put away in the expected location in WM there is need to decide configuration related to determination of the basic organization element determination.

1.

Activation of storage type search sequence. In this we define the storage type search indicator & assign the storage type search sequence according to the warehouse, storage type & search indicator combination. There are also various other selection options related to stock category, special stock indicator, WPC, etc. available for configuration if required.

2.

Activation of storage section search sequence. In this we define the storage section search indicator & assign the storage section search sequence according to the warehouse, storage type & search indicator combination. There are other selection options related to storage class & WPC available for configuration if required.

3.

Activation of storage bin type search sequence. In this we define the applicable bin types & storage unit types for the warehouse. We assign the various available storage unit types to the combination of the warehouse & storage type & then bin types for the combination of warehouse & storage unit type.

4.

There are also certain other configuration such as Define Sort Sequence for Put away (Cross-line Stock Put away) & Define Sort Sequence for Stock Removal (Picking) not applicable for the current Luminous Tauru WH Implementation.

Put away Procedures

Currently Luminous TAURU WH, warehouse is using Dynamic Bins Allocation for Material as per size, Qty and Weight. 

Strategy for Fixed Bins:

The "fixed bin" stock placement strategy is used for storage types in which a material is assigned to a particular storage bin. This strategy is used mainly in storage types where picking is carried out manually (for example, in small parts storage areas with manual picking).

16


Date : 02/05/2016

Strategy for Open Storage:

This stock placement strategy required to set up an open storage area in the SAP system as a storage bin. "Open storage" refers to a type of warehouse organization whereby you define only one storage bin for each storage section. The quants in this storage bin are stored in the form of mixed storage.



Strategy for Addition to Existing Stock:

As per this stock placement strategy SAP System tries to place a quantity of material into a storage bin in which the material already exists. To add to existing stock, there must be sufficient remaining capacity in the storage bin. So you must switch on the capacity check for the relevant storage type to implement the strategy addition to existing stock. 

Strategy for Empty Storage Bin:

As per the configuration in this stock placement strategy warehouses managed on a random basis supported. The SAP system proposes Empty storage bins during the creation of transfer orders. Here it is necessary to make configuration related to the search for Empty storage bins using the storage section assignment within a storage type. 

Strategy for Pallets:

When many high rack storage areas are available in the warehouse & one shelf section can include a different number of pallets, depending on the pallet size. The SAP system can process different storage unit types (for example, European pallets) and allocate them to a shelf section. A mixture of different storage unit types (pallet types) within one shelf section is not allowed. 

Strategy for Bulk Storage:

When in warehouse some materials that are usually available in large quantities and therefore require a lot of storage space are often stored in bulk storage areas. In bulk storage, each row of the bulk storage area represents a single storage bin. In this type of storage bin, a quant is stored. The system can deduce how many storage units (for example, pallets) are in each bin from the ratio for quantity per storage unit type defined in the material master.

17


Date : 02/05/2016

Strategy Near Picking Bin :

This put away strategy used where a material is required to be stored in a reserve storage bin near the fixed picking bin of this material.

5.1.1

Purpose

The central role of put away functionality is to automatically create proposals for efficient warehouse transfer as per the functional requirement of the warehouse team. This target is achieved by using various put away procedure described above. In Luminous, Business identified materials are planned for warehouse put away with Dynamic bin strategy currently Bins identified for material as per size, Qty and Weight and Bin search Propose the bin as per given sort sequence.

5.1.2 Master Data The master data in the area of put away includes: 

Material Master



Bin master

5.1.3 Features with reference to Luminous 





Creation of the proposal to put material in the bin automatically with system setting. Minimum manual intervention in deciding the put away of material Confirmation of the put away in the bin with reference to the RFC and actual bin details will be updated through third party application. Creating of the storage units for materials received in standard package & storing it to avoid the manual effort of counting & receiving material unit as material received in standard quantity of boxes or pallets.

5.1.4 Business Process In SAP WM put away of the material triggered w.r.f. the IM document.

WM documents creation for put away starts with the requirement type creation. We can create various requirement types depending on the IM reference document categories such as purchase order, production order, cost center, etc. & also assign the tracking document for the same.

Depending upon the follow on document creation settings in SAP WM, system would create the transfer requirement for the IM movement. The transfer requirements could be converted in the transfer order. 18


Date : 02/05/2016

IM movement for which we need to trigger put away we have to create settings in WM related to WM reference movement & WM movement. Later we need to make the relevant assignment of IM movement to WM movement through reference movement.

TO creation depends upon the various search options & put away strategy configured in the system. Source Storage type & source storage bin determined as per the settings in the WM movement type configured for the creation of the transfer order. Destination storage type & bin determined as per the search sequence & strategy in the put away configuration.

Material could be received in SUT or loose basis depending on the settings made for the storage type.

TO printing for individual TO item or multiple TO items along with the SU or non SU label printing can also be configured.

5.2 Warehouse Material Picking 5.2.1 Purpose Material picking is based on IM reference document created for issue of material. For planning the automatic proposal of the material picking from the expected location in WM various material picking strategies are used.

19


Date : 02/05/2016

The stock picking strategies may be suitable for materials in Luminous Tauru warehouse. 

FIFO (First In First Out):

As per the configuration of stock r emoval with FIFO (First In First Out), th e warehouse management system proposes the oldest quant in each storage type from which you want to remove stock. The system calculates the age of a quant using the date of the goods receipt posting that was set in the quant by the transfer requirement and the transfer order. 

Stringent FIFO:

Difference in stringent FIFO procedure & FIFO procedure is related to the oldest quant search. In stringent FIFO oldest quant of a material searched within entire warehouse (that is, in all the storage types together) & for FIFO it is searched within the storage type where this strategy is applicable. For stringent FIFO the system ignores the individual stock removal strategies when it searches through the individual storage types since this could cause data inconsistencies. It is required to exclude certain storage types from the stringent FIFO principle so that the system does not make incorrect stock removal proposals. 1. 2. 3. 4.

Interim Storage type for differences ‘999’ Interim storage type for initial stock entry ‘998’ Interim storage types for posting changes and stock transfers ‘920’, ‘921’, ‘922’ & ‘923’ goods issue interim storage type ’904’,‘910’, ‘911’, ‘912’,’913’, ‘914’,’915’,’916’,’917’,’918’

The stock picking strategies those would not be considered for Luminous Tauru WM Implementation. 

LIFO (Last In First Out):

As per the SAP WM configuratio n related to LIFO (Las t In First Out), the W arehouse Management system proposes for stock removal of the quant (in storage type where this strategy applicable) that was last placed into stock. You can use this stock removal strategy in warehouses where the newly placed material is stacked on top or in front of material already in storage. 

Partial quantity:

With this strategy the FIFO principle may be waved off to optimize the warehouse situation. If this stock removal strategy Partial Pallet Quantity selected then Warehouse Management system compares the requested amount from the transfer order with the largest bin amount in the storage type. If the requested quantity of the transfer order is the same as or larger then system removes the material from this bin. If the requested quantity is smaller, the system removes the material from a storage unit for partial quantities. The search sequence for full storage units is carried out using the FIFO principle. 20


Date : 02/05/2016

The implementation of this strategy is only practical in the Warehouse Management system if stock placements are executed using  

Standard storage unit types (always the same quantity of material per SUT) or Partial pallet quantities (smaller quantities than a standard SUT)

 

Large/small quantities:

This stock removal strategy can influence the storage type selection on the basis of the requested quantity. Depending on whether this quantity is less than or exceeds the control quantity you have defined in the material master, Warehouse Management System proposes the stock removal from different storage types.

5.2.2 Master Data The master data in the area of material picking includes: 

Material Master



Bin master

CIL requirement for the custom picking procedure would be discussed & planned in later stage.






Creation of the proposal to pick material from the bin automatically with system setting. Minimum manual intervention in deciding the picking of material Confirmation of the picking from the bin with reference to RFC details received from third party application. Issue of the storage units for materials received in standard package to avoid the manual effort of counting & issuing material at base unit.

5.2.4 Business Process In SAP WM picking document or the transfer order is created against the outbound delivery document.

This delivery document could be created against the sales document or the return order.

21


Date : 02/05/2016

The transfer order could be created with reference to delivery with WM transaction or also created from the delivery menu screen.

We can print pick-list for the TO or the combined list of the TOs. This list could be generated & distributed within warehouse for the picking operation.

Picking of the material from storage type & confirmation of the TO due for the picking could be done with RF devices.

5.3 Warehouse Material Transfer posting 5.3.1 Purpose Transfer posting in WM is triggered with reference to the various IM movements.

Stock transfers in the Materials Management system include the physical movement of materials from



One plant/storage location to another plant/storage location

22




Warehouse to warehouse



Storage bin to storage bin (internal transfers)

Date : 02/05/2016

For stock transfers within the same warehouse complex (that is, within a warehouse number), you can create, manage, and display information about the movement of stock from the time it is received until it leaves the warehouse using the Warehouse Management system (WMS). For stock transfers from one storage location to another storage location, the process begins in the Inventory Management (IM) component and is completed in WMS.

5.3.2 Master Data The master data in the area of material picking includes: 

Material Master



Bin master






Creation of the proposal to transfer material from the bin automatically with system setting. Minimum manual intervention in material transfer posting. Creation of the various transfer posting requirement against the IM documents & create TO for transfer of material from the bin with reference to the RFC details received from third party application Load distribution within the warehouse resources with the creation of TO document & allocating work within available resources.

5.3.4 Business Process In SAP IM the material transfer document created.

Request for the transfer posting created in SAP WM against the IM document

Transfer order created with reference to WM transfer posting document.

23


Date : 02/05/2016

Material is first transferred to interim area for the transfer posting from source storage type & from there is posted to destination storage type.

5.4 Physical Inventory In SAP R/3, physical inventory can be carried out both for a company’s own stock and for special stock. Inventory for a company’s stock and for special stocks (such as consignment stock at customer, external consignment stock from vendor, or returnable packaging) must be taken separately (in different physical inventory documents). However, note that the blocked stock returns and the stock in transfer cannot be inventoried. If these stocks are still to be counted in a physical inventory, must be transfer post these stocks to other stocks capable of inclusion in a physical inventory.

The stock in a warehouse can be divided into stock types. In the standard system, a physical inventory can be carried out for the following stock types:



Unrestricted-use



Consignment stock



Blocked stock

Inventory of all stock types mentioned can be taken in a single transaction. For the bins to be inventoried, one item is created in the physical inventory document for every stock type.

24


Date : 02/05/2016

SAP WM physical inventory takes place at storage type & bin level. A separate physical inventory document is created for every storage type & bin selected in the same.

If a material does not exist in a storage type & Bin, this means that no WM movement has ever taken place for the material in the storage type. The material, therefore, has never had any stock in this storage type. The material does not exist at WM stock management level in the storage type. It is therefore not possible to carry out a physical inventory for the material in this storage type.

SAP WM supports the following physical inventory procedures:



Continuous inventory



Annual inventory



Cycle counting

Continuous Inventory: In the continuous inventory procedure, stocks are counted continuously during the entire fiscal year. In this case, it is important to ensure that every material is physically counted at least once during the year.

Annual inventory: In this method of inventory stocktaking happens for all stocks in a company on a fixed date (usually at the end of the fiscal year). There are no transfers in the warehouse on this day.

Cycle Counting: Cycle counting is a method of physical inventory where inventory is counted at regular intervals within a fiscal year. These intervals (or cycles) depend on the cycle counting indicator set for the materials.

The Cycle Counting Method of Physical Inventory allows fast-moving items to be counted more frequently than slow-moving items.

5.4.1 Purpose This component allows you to carry out a physical inventory of your company’s warehouse stocks for balance sheet purposes.

25


Date : 02/05/2016

5.4.2 Master Data  

Material master Bin Master

5.4.3 Features with reference to Luminous Luminous Tauru warehouse inventory process will follow Periodic, Annual & cyclic inventory related methods. All stocks of the company would be physically counted quarterly, annually & every month at Luminous Tauru warehouse.







Visibility of inventory differences with every inventory count across plants is available. Inventory counting is done for every material at storage type & bin level in the warehouse. Posting of difference can be controlled through authorizations. Differences could be posted at WM & IM level after approval on the differences occurred in inventory to match the IM & WM stocks.

5.4.4 Business Process The physical inventory procedure is carried out in three steps: 1. Creating a Physical Inventory Document. 2. Entering the Physical Inventory Count. 3. Posting inventory differences at WM & IM level.

Inventory Documents Number Ranges:

Inventory Documents

From

To

Ext(E)/ Int(I)

(WM Physical Inventory) Inventory Document No.

0000000001

1000000000

I

TO Inventory No.

9000000000

9999999999

I

5.5 Movement types

26


Date : 02/05/2016

The following is the list of IM movement types that will be using in Luminous. Needs To be identified yet……………. IM Mvt

Description

Type

The following is the list of WM movement types that will be mapped in system.

WM Mvt Type

Description

27


Issue: 0.0 List WM document & number range WH Docs

From

To

Ext(E)/ Int(I)

TR

0000000001

1000000000

I

TO

0000000001

1000000000

I

Quants

0000000001

1000000000

I

Posting Changes

0000000001

1000000000

I

6 MODULE INTEGRATION Warehouse Management is integrated with SAP MM, SD, PP & QM modules.

Luminous would consider the integration of SAP WM with MM & SD modules in Luminous Tauru WM Tauru. Integration of SAP WM and third party application.



Inventory Management

28


Date : 02/05/2016

SAP WM & MM integrated with the interim storage area for the receipt of material i.e. storage type ‘902-GR Area External Rcpts’. All IM movement relevant WM trigger the WM requirement creation & TO creation. This process initiates the automatic material put-away to the WM storage type & bins.



Sales & Distribution

SAP WM integrated with SAP SD with the interim area for issue of material for sales order i.e. storage type ‘916-Shipping Area Deliveries’. Delivery is created for the sales order issue & TO could be directly created for the delivery with WM t-code or from the delivery screen. This TO creation would determine the source storage as per the picking strategy & material would be moved to the storage type ‘916-Shipping Area Deliveries’. This material would be depleted from warehouse once the IM goods issue happens for the sales order.

7 INTERFACE REQUIREMENT At Luminous there would not be any interfacing of SAP or third party system with SAP WM system.

8 STANDARD INFORMATION SYSTEM SAP WM as standard functionality offers various functionality wise reports for various analysis and helps in decision making for the business organization.

List of such standard reports is given below:

T Code

Transaction code description

LL01

Warehouse Activity Monitor

LS04

Display Empty Storage Bins

LX01

List of Empty Storage Bins

LX03

Bin Status Report

LX04

Capacity Load Utilization

29


Date : 02/05/2016

T Code


LX29

List of Fixed Storage Bins

LS27

Stock per Storage Unit

LX27

Shelf Life Expiration Date - Control List

LX02

Stock for All Materials

LS26

Stock Aggregated - Material-Specific

LS24

Stock In Bins - Material-Specific

LS25

Stock per Storage Bin

LX09

TR Document Overview

LX33

TR Display From Archive

LRF2

TO Display RF Activities

LX10

Movements/Storage type

LX11

TO Document Overview

LX12

TO Detailed Overview

LX13

TO Differences Analysis

LX32

TO Display from Archive

LX14

Material Movement Frequency

LX47

Analysis of Delayed Delivery Update

LU04

Posting Change Document Overview

LX34

Posting Change Display from Archive

LX17

Different List of Open WM Inventory Documents

LX18

WM Inventory Difference Statistics per Storage Type

LX25

WM Inventory Status

LX35

Display Physical Inventory Documents from Archive

LX36

Display Inventory History from Archive

LI15

Evaluation of Quant Inventory

LX44

Warehouse Document for Decentralized Warehouse

MCL1

Putaways/Stock Removals

30


T Code


MCL5

Flow of Quantities

MCL9

Putaways/Picks

Date : 02/05/2016

31


Date : 02/05/2016

9 ANNEXURES

9.1 Master Data Templates SAP master data Templates for the extension of material master for WM view & creation of bins enclosed for the reference.

Material Master Data Template (WM View Extension)

Bin Master Data Template (WM)

BDC Bin Creation.xlsx

9.2 GAPS As per Physical Warehouse there is INSP cal led inspection area which is not WM conf igurations because this area is used for storing the material after 103 Movement and we are not doing any MVT in WH for 103.

9.3 Open Point Open points need to be considered for the discussion



Any change in custom T code ZMB52 if required as currently it is fetching the bin information for material from the plant storage data of material master view. Bin location would change after the implementation of the WM put away strategy.

9.4 Assumptions 



IM movement 103 & quality check would not be covered in WM & no WM label printing would take place at this stage. Warehouse management scanning would take place by manual entry or 1D barcode scanning of WM objects such as TO number, SU number, etc. for put away or picking of material. 32

BBP SAP WM Implementation Luminous

Recommend Documents