Creating Floor Stock

The manufacturing process consists of two steps. In the first step, the wheel, a semi-finished material, is assembled from various raw materials such as the tire and rims. In the second step, the semi-finished component and other raw materials, such as the frame and chain, are assembled to create the finished product, the bicycle. It is crucial for traceability purposes to have a clear record of which components were used at each manufacturing step to assemble the finished product.

The process begins at the raw material level. When an inventory record is created in SAP Digital Manufacturing, information provided by the suppliers, such as the vendor, vendor lot, vendor serial number, and manufacturing date, can be recorded. In the next step, the system collects data for each processed material (semi-finished or finished product) to determine which component was assembled at each operation. Additional data, such as inventory ID, serial number, and quality-related information, can also be collected for each component. All of this data is recorded for the material.

Collecting comprehensive genealogy data provides visibility and traceability of the components, particularly in the case of product claims. A typical business use-case follows a top-down approach, starting from the product and tracing back to its components. For example, if a customer files a complaint about a purchased product, such as a defect, the quality assurance team can quickly analyze the issue by referring to the as-built record of the unit. This record provides information about the manufacturing process and the components used. If the root cause of the defect is determined to be a defective component, the responsible supplier can be identified and involved in the process.

Once a defective component is identified, a follow-up process using a bottom-up strategy can be initiated. This involves tracing the path of the defective component to all finished products where it was used. If some finished products are still in the warehouse, measures can be taken to prevent their sale to customers before the defect is fixed. In the worst-case scenario where the defective finished goods have already been sold and shipped to customers, proactive communication can be initiated to inform the customers about the defect and implement containment measures to prevent further issues.

Floor stock management is a vital component of materials management and is integrated into the entire logistics process. When a material is ordered from a vendor, floor stock management handles the goods receipt based on the purchase order. If a material is internally acquired through production, floor stock management provides the necessary components.

SAP Digital Manufacturing's floor stock management functionality allows users to manage, track, and trace individual units through inventory records. Each inventory ID serves as a unique identifier for a specific instance of material, which is consumed during the assembly process.

Floor stock can be stored in different storage locations, which are physical places for storing components and finished goods. It is common practice to distinguish between storage locations for components and finished products.

Each storage unit is identified by an inventory ID, which specifies the quantity of managed components and additional data such as vendor ID and serial numbers. In scenarios where full lot-size 1.0 is used, each inventory ID manages a single individual component, similar to a serial number. However, it is also possible for an inventory ID to manage higher quantities, such as bulk materials, where the smallest distinguishable unit is the inventory ID itself, and individual units within the inventory ID cannot be differentiated.

To manage storage locations effectively, it is important to understand their purpose and characteristics. A storage location represents a physical area within a plant where stock is stored. Each storage location is identified by a unique alphanumeric key, which is limited to a maximum of four digits. Additionally, a storage location has a name and a description.

In general, a plant can have multiple storage locations, establishing a one-to-many relationship. However, a specific storage location can only belong to one plant, creating a one-to-one relationship.

When creating a storage location, it is necessary to define its type based on its intended use. There are three types of storage locations:

• Production Storage Location: This type is used to store materials before they are used in production. It allows for component withdrawal within the storage location.
• Central Storage Location: This type serves as a warehouse from which materials are transferred to the production storage location for use in production. Any unused inventory can be returned to the central storage location.
• EWM-Managed Storage Location: This type is specifically used for material staging and goods issue within the EWM (Extended Warehouse Management) system. When enabled, the SAP ERP storage location is mapped to the warehouse number in EWM. Material staging and goods issue processes are carried out using EWM for this storage location.

By effectively managing storage locations, businesses can optimize their inventory management processes and ensure efficient material flow throughout their operations.

Floor stock refers to the stocks of production parts or small parts that are stored on the shop floor for assembly. These materials, such as screws, bushings, labels, or adhesives, are typically stored in racks, bins, or cabinets.

Inventory, on the other hand, refers to the materials and supplies that are kept in the warehouse for use in manufacturing production. This includes raw materials, work-in-process materials, and finished goods. Examples of inventory materials are completed sub-assemblies, incomplete sub-assemblies, and purchased assemblies like motors.

When a delivery arrives at the warehouse, the goods are counted, inspected, and received into the company's inventory. The stock is then created in the Manage Floor Stock application by the operator.

To create floor stock, the user needs to specify the material that will be received and the quantity. The system checks the lot size maintained in the material master and creates inventory records accordingly. If you receive, for example 15 PC and the lot size is 10 PC, the system creates two inventory records containing 10 and 5 PC, respectively.

Additional data can be maintained for each inventory record. This can include fields such as vendor ID, production date, and serial number, which must be filled during goods receipt. These identifiers ensure traceability throughout the manufacturing process.

Floor stock creation also allows for the inventory record to be pegged to a specific order or operation by setting the respective indicator. This ensures that the inventory can only be consumed when processing a specific order or operation.

The inventory ID serves as a unique identifier for inventory items in SAP Digital Manufacturing. It is generated based on the inventory category maintained in the Manage Next Numbers application and follows the numbering patterns set there.

A reason code can be assigned to indicate why the inventory record is received or updated.

The status of the selected inventory ID can be unrestricted, restricted, blocked, or undergoing quality inspection:

• Unrestricted status means the floor stock is available for consumption in higher-level assemblies during manufacturing.
• Restricted status means the floor stock cannot be used in higher-level assemblies until it undergoes a quality inspection or repair.
• Blocked status means the floor stock cannot be used due to incomplete supporting change management documentation.
• Quality inspection status indicates that the stock has a quality issue and is temporarily set aside until the issue is resolved.

The received by field captures the user ID of the person who received the floor stock for the inventory ID.

The current storage location of the inventory can be defined, and in the case of a floor stock return, the target storage location for the returned inventory can be indicated.

Additionally, when a manufactured product reaches the done status, the system automatically creates an inventory record for it. The inventory ID usually corresponds to the SFC number.