Introducing Warehouse Advanced Production Integration

Objective

After completing this lesson, you will be able to explain production material requests and cross-order staging capabilities in SAP S/4HANA Cloud Public Edition, warehouse management.

Warehouse Advanced Production Integration

This business

Advantages of Warehouse Advanced Production Integration

Advanced production integration allows you to have real-time material flow between shop floor and warehouse. You can plan the staging of components to production over a period of time, so that PSA capacity is reasonably used. You can monitor and control the staging process. Consumption can be posted directly from WM and the consumption status can be monitored using an app or RF. Consumption posting can be reversed directly from WM using an app or RF.

You can receive produced stock as soon as the goods receipt request is triggered from the shop floor (both the Post Goods Movement app and the RF are available for the use). You can also clear stock reference on left-over stock from the production supply area, and move them back to the warehouse, after the manufacturing process is complete. In that way, you can free up some capacity from the production supply area for other staging activities, using an app or RF.

Using the Warehouse Advanced Production Integration offers you the following benefits:

  • Plan staging activities flexibly at a reasonable time and with reasonable quantities, to fully utilize capacity in the production supply area in your warehouse.
  • Use more options to trigger consumption or consumption reversal (for example, via radio frequency (RF) or an app (besides the Post Goods Movement app)
  • Track the staging and consumption processes more transparently regarding PSA stock and manufacturing orders
  • Improve TCO for the reduced number of system documents

The process consists of the following main steps:

  1. Define the control cycle and the assignment of the storage bin in the production supply area.
  2. Create manufacturing orders and trigger creation of production material requests.
  3. Stage for production with multiple staging methods.
  4. Monitor consumption for production.
  5. Reverse consumption for production, if required
  6. Preform receipt of finished and unfinished products
  7. Clear product supply area by moving unused components back to the warehouse.

Production Supply Area (PSA)

The production supply area (PSA) is an area on the shop floor where products are staged or withdrawn. To stage products for a production order, a warehouse must know where it has to take the products. For production orders in the ERP system, the PSA contains this information.

The image shows the production supply area and its assign to different work centers.

In the advanced production integration, the PSA will always contain a storage location, which is connected to the same warehouse as the storage location supplying the material, or it is the same storage location. A shuttle scenario, that is, one where the PSA storage location is not connected to the warehouse or is connected to another warehouse than the supplying storage location, is not supported.

Staging Products for Advanced Production Integration

When using the advanced production integration, for each manufacturing order, the system creates a Production Material Request (PMR) directly in warehouse management with the required information from production when the manufacturing order is released and WM material staging is triggered. If the manufacturing order is changed, the system updates the PMR for changes that are relevant for warehouse management, such as a changed quantity for staging.

The screenshot shows a Production Material Request and its item.

This PMR contains the receiving product, and all the components from the manufacturing order in their required quantity.

Staging Single Order versus Cross Order Items

Depending on the bin assignment settings, components are staged differently as follows:

  • Single Order Staging:

    The system creates a warehouse task to move the product to the PSA for each production material request (PMR) item. Each warehouse task has a reference to a single PMR. After the warehouse task is confirmed, the stock on the PSA has a reference to the PMR item, so the stock is reserved for the reference PMR item. Only this PMR can be used to consume the stock. You can manually release the reference to the PMR item for the stock.

  • Cross-Order Staging:

    The system accumulates products from more than one PMR and creates a warehouse task to move them to the PSA together. The warehouse tasks have no reference to the PMR item. After the warehouse task is confirmed, the stock has no reference to a PMR item. Each PMR that has an item with the product can be used to consume the stock. This is a flexible method, which allows you to stage products whether the product is required for one PMR in particular, or by several PMRs.

The image shows the difference between single order staging and cross order staging in Advanced Production Integration.

Product Consumption with a Production Material Request

For components that have not been marked for backflush, the consumption posting is triggered through the production material request (PMR). Consumption can be posted in a desktop transaction or using RF; a reversal of the consumption posting is also possible. You can post consumption for the entire quantity of the product at once, or you can post consumption for partial quantities of the product at intervals. You also can post consumption for a greater quantity of a product than was planned in the PMR. For consumption of partial quantities, you can post the consumption based on the quantity that has been consumed or the quantity that remains.

Clearing the Production Supply Area

After a PMR is completed and the production process is finished, it is possible that there is still a quantity of the product on the PSA, and that no other PMR needs the product. In this case, the product should be brought back to the warehouse so that it does not occupy space on the PSA. You create warehouse tasks for this movement with the transaction, Clear Production Supply Area.

Clearing the Production Supply Area

The image shows the clearing of the production supply area.

For products staged using the single-order staging method, you must first release the reference document to clear the reference in the stock (with the same transaction). If you do not release the reference document, the stock can never be used for another PMR.

The screenshot shows the application for clearing the production supply area.

Run a Simulation to Check the System Behavior

Use this simulation to guide you through the main process steps of running the Warehouse Advanced Production Integration process.