Operating Supply to Production Processes in SAP Solutions (Just-in-Time / Just-in-Sequence)

Objective

After completing this lesson, you will be able to implement Just-in-Time Supply to Production.

Overview Supply to Production (Just-in-Time / Just-in-Sequence)

The Just-in-Time (JIT) replenishment of production lines is a common practice in automotive that aims to optimize material flow in manufacturing by delivering the exact quantity of components required when needed, ensuring a smoothly running production with minimal excess inventory. This approach is especially effective for materials with regular demand.

In SAP S/4HANA, the Next Generation Just-in-Time Supply to Production solution supports the JIT replenishment from internal warehouse as well as JIT replenishment from external suppliers. The next-generation Just-in-Time supply to production contains capabilities that are grouped along the following areas:

Master Data Management
Supply to Production – Planning
Supply to Production – Execution

Manage Master Data in JIT and JIS Processes

Supply areas, control cycles, and communication groups are the primary master data objects needed to run the supply-to-production process with the next-generation JIT solution in S/4HANA. The following applications are available for maintaining these master data.

Manage Production Supply Areas

This app enables users to create, edit, and view production supply areas, as well as track where each is used within the system. The app allows for personalization of the displayed list of supply areas to suit specific use cases, with easy navigation to detailed information.

Manage JIT Control Cycles

The Manage JIT Control Cycles app allows user to create, modify, view, and filter Just-In-Time (JIT) control cycles that are required to create JIT calls for material replenishment in production supply areas (PSAs). Within each control cycle, key attributes for the supply-to-production process are maintained, including the source of supply, replenishment strategy, lead times, destination bin, and so on.

Manage Communication Groups

This application is used to create communication group, that is a combination of supplier and subsequent message partners with whom the supplier is working with for supplying the materials to production line needs. These communications groups are assigned to control cycles where the external replenishment is activated. When a JIT call is created, the information is sent to responsible persons according to the definition of communication group.

Plan Supply to Production

On the left, labeled PP (Production Planning), stacks of production orders, planned orders (PP), and planned orders (PP/DS) are shown. These include inputs for triggering processes in the JIT section. The central part is labeled JIT, depicting both manual and automatic triggering mechanisms. The Control Cycle initiates the replenishment requests and plans supply-to-production jobs (S2P/Job). Processes within JIT include creating, changing, and canceling JIT calls shown within broad arrows. On the right side, stacks labeled JIT call represent the completed outputs of the creation process. The diagram outlines a structured approach for integrating production requirements with JIT practices, emphasizing control cycles and flexibility in handling production orders.

The JIT Supply to Production solution supports the following planning strategies:

Request Replenishment, this is not relevant for planning: Using this strategy, the production operator is empowered to request replenishment whenever needed. The replenishment request is created manually using the Request Replenishment for JIT Control Cycles app. Using this app, the production operator can create JIT calls with reference to the JIT control cycles to request replenishments from the warehouse or external supplier.

Consumption-based planning, this is triggered automatically as a S2P/Job: Using this strategy, the production planner to request replenishment whenever the stock at the production supply area falls below the safety stock. The JIT Call to request replenishment can be created either using the Plan Supply to Production app or by scheduling the background job using the Schedule JIT Replenishment app.

Demand-driven planning: Using this strategy, the production planner can request replenishment to cover the demand for the planning horizon. The JIT Call to request replenishment can be created either using the Plan Supply to Production app or by scheduling the background job using the Schedule JIT Replenishment app. These apps will analyze demand within the control cycle over the defined planning horizon, considering the following planning elements:

Production orders
Standard planned orders
PP/DS planned orders

Diagram illustrating the integration of Just-In-Time (JIT) processes with Extended Warehouse Management (EWM) and Production Supply Area (PSA) systems. On the left, the JIT section contains stacks labeled JIT call, leading to interactions with the EWM section. EWM processes involve generating JIT/JIS (Just-In-Sequence) Warehouse Requests and the transportation of goods represented by a truck icon. In the center is the Inventory Management (IM) section, where materials are documented and sent to suppliers or processed externally through SOAP applications. Lines coming from these sections indicate the flow of information and materials toward the PSA on the right. The PSA features icons for robotic automation and a finished car, representing the final assembly and production output. The diagram showcases the interconnected steps in the supply chain from warehouse management, inventory documentation, external processing, and supply chain operations culminating in production completion.

Created JIT calls are sent to external suppliers when the control cycle is defined for external replenishment or directed to the warehouse if the supply source is an internally managed EWM storage location. In addition, a lean scenario is supported for cases where the supply source is a different storage location not managed by warehouse management.

Execute Supply to production

Replenishment execution may involve various steps depending on the source of supply. For external replenishment, a goods receipt process is triggered for the JIT calls, while for internal replenishment from an EWM storage location, a picking process is initiated. If the source of supply is an inventory-managed storage location without warehouse management, this process may simply involve a stock transfer.

External Replenishment

Diagram depicting the flow of Just-In-Time (JIT) calls and consignments between a customer and supplier, facilitated by SOAP (Simple Object Access Protocol) services. On the left, within the customer section, stacks labeled JIT call are shown, with an arrow pointing toward a SOAP icon, symbolizing data exchange. The flow continues to the supplier section in the center, where stacks labeled Customer JIT call and Consignment represent incoming requests and outgoing consignments. Another arrow indicates further communication through SOAP. Finally, the data flow moves back to the customer section on the right, showing stacks labeled Consignment, indicating receipt of the goods or information from the supplier. The diagram highlights the interaction between customer and supplier through JIT processes, consignments, and the SOAP protocol for streamlined communication and transaction management.

The external supplier will send an advanced shipping notification, including JIT call references, to inform the customer of the replenishment execution. The customer will then process the goods receipt and stage the received components directly in the production supply area. This process includes several sub-steps, such as creating inbound delivery, unloading, putaway and staging. To support these different process steps the next-generation Just-in-Time solution in SAP S/4HANA is seamlessly integrated with the Transportation Management (TM) and Extended Warehouse Management (EWM) applications.

Flowchart detailing the process of JIT call creation and integration with warehouse management. The chart is divided into multiple sections, starting from the left with JIT call Creation, leading to subsequent warehouse tasks. The tasks include Immediate Warehouse Task Creation, Manual Warehouse Task Creation, and Warehouse Task Creation via Wave Management. On the right, the flow continues to Warehouse Execution & Quantity Update transitioning from EWM (Extended Warehouse Management) to JIT (Just-In-Time). Below these primary activities, the flowchart includes Change Management from JIT to EWM, Exception Handling from EWM to JIT, Monitoring, Status updates transitioning from EWM to JIT, and finally, Enhancement Concept, indicating potential areas for process improvement. The overall shape of the flowchart resembles a funnel or tapering timeline, with widening steps indicating increased scope or coverage from task creation to execution and management. This layout emphasizes the streamlined integration of JIT and EWM for efficient warehouse operation and management processes.

If the source of supply is an internal warehouse managed with EWM, the JIT call is forwarded to the warehouse, triggering the creation of a Warehouse Material Request (WMR). A tight integration between the JIT call and WMR ensures that each status update to the WMR is promptly reflected in the JIT call, enabling efficient monitoring of the replenishment process.

Internal replenishment from IM-managed Storage Location

If the source of supply is an internal location without warehouse management, the replenishment execution simply involves confirming the stock transfer. The Fiori, Transfer Stock for JIT Supply to Production app, is used for this purpose, allowing the confirmation of goods picking from the source location and then the confirmation of the staging to the production supply area.

Supply to Production - Just-in-Sequence

Just-in-sequence (JIS) replenishment is a specific production supply scenario where components are delivered to the production supply area in the exact order required for assembly. This is a critical process for manufacturing highly configurable products, as each configuration demands specific components that vary from one product to another. In this scenario, next-generation Supply-to-Production solution enables the creation of JIS calls tied to planned orders. Each JIS call includes only the components needed for a specific planned order, along with the order number reference to ensure correct sequencing during staging. Like the just-in-time scenario, replenishment from external supplier as well as replenishment from internal warehouse is supported.

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