Automating and Optimizing Production Steps

Objective

After completing this lesson, you will be able to use SAP Manufacturing Execution for shop floor operations.

SAP Manufacturing Execution

SAP Manufacturing Execution (SAP ME) is a manufacturing business solution that enables global manufacturers to manage and control manufacturing and shop floor operations.

SAP ME EWM Integration (SAPMEINT)

You can use this component to integrate the SAP Manufacturing Execution (SAP ME) system directly into your existing SAP Extended Warehouse Management (SAP EWM) application, giving you flexible, automated support for processing various goods movements.

Staging

If you've integrated your SAP S/4HANA system with a manufacturing execution system (MES), you can use MES-driven staging to create detailed plans for fulfilling staging requirements for a manufacturing order. The plans are represented by a document from the MES, the staging request, which is mapped to a warehouse request of the internal stock transfer type in Extended Warehouse Management (EWM).

Process flow showing MES-driven staging integration between SAP S/4HANA, MES, and SAP EWM, detailing steps from order creation to inventory update and stock transfer.

EWM uses a staging report to check the capacity of the bin at the production supply area (PSA) and to create reasonable numbers of staging warehouse tasks. These staging warehouse tasks can be organized, for example, by applying process-oriented storage control (POSC) or waves.

With MES controlled staging it is also possible to assign multiple storage bins to the PSA. This lets you store stock separately and supply it to different resources or different production process steps in a work center.

The staging process is transparent from beginning to end. It's possible to see the status of the staging process in both EWM and the MES. For example, you can see whether a staging request is being planned or has already been executed, or what quantity of a component is requested, in-transit, or staged.

Dynamic staging is the supply of components to production supply areas after a MES replans the manufacturing activities by reallocating operations to different production resources.

Work-in-Process (WIP) Management

Work in process (WIP) can be unfinished items that are in the middle of the manufacturing process and can be held in storage until they're requested for a follow-on manufacturing operation.

In a manufacturing plant, due to planned or unplanned delays between manufacturing operations, output of the previous operation can't be provided for the next operation immediately. Therefore, it's necessary to store WIP stock in a warehouse for a period of time, for example, to save space in a production line.

Flowchart illustrating WIP management: Parts move through Modeling, Paint, and Assembly work centers, with storage at the warehouse between each step.

The receipt and staging of WIP products requires the integration to SAP MES.

WIP Products

Work-in-process (WIP) products can be generated in the middle of producing a finished product in different manufacturing operations and therefore need to be handled differently in a warehouse, for example, to be stored in different storage areas. To let EWM know that the products are relevant to WIP, you need to define a material type specifically for the WIP products.

To do this, when creating the material type, select the Only EWM Stock checkbox in Customizing for Logistics - GeneralMaterial MasterBasic SettingsMaterial TypesDefine Attributes of Material Types.

For example, you can create a material type for your WIP products with the reference to the material type IWIP.

Note

Note the following points while creating a material type for WIP:

  • You can't use the material of this material type in other business processes, for example, sales, purchasing, and production planning of WIP products.

  • You can create WIP stock only in EWM. WIP stock doesn't exist in the Inventory Management application component.

  • You can't update the value or quantity for the material type. WIP products don't contain value or quantity in Inventory Management.

  • You can only choose the basic data in the user departments for the material type for WIP.

WIP Number

A WIP number is a unique identifier for an unfinished item that is generated from an operation in a manufacturing execution system (MES). You can use a WIP number to identify the WIP stock in processes such as goods receipt and staging for WIP.

Semi-Finished Goods

During production, you might receive semi-finished products that are used in components for subsequent production steps. The shall not be putaway to the warehouse, but to the next production line. For these, it is possible to create the warehouse tasks (WT) automatically upon GR.

Optimized material flow for semi-finished goods in an automated warehouse, routing sub-assembly output directly to final assembly or supermarket, bypassing storage.

For this the field target PSA of the production version is used to determine the destination bin during automatic WT creation. You require a control cycle for the target PSA with the destination bin.

This automatic WT creation is only possible:

  • Using embedded EWM
  • When synchronous goods movements are activated in the production scheduling profile

WIP Products Versus Semi-Finished Goods

A WIP product is different from semi-finished goods in the following aspects:

  • A WIP product isn't part of the bill of materials (BOM)
  • A WIP product doesn't have valuation
  • WIP stock doesn't need to be monitored and tracked in inventory management