• No results found

XXX-Client Name. XXX Client Logo

N/A
N/A
Protected

Academic year: 2021

Share "XXX-Client Name. XXX Client Logo"

Copied!
93
0
0

Loading.... (view fulltext now)

Full text

(1)

XXX-Client Name

XXX – Client

Logo

Business Blueprint

Warehouse Management System

(2)

All revisions made to this document are listed here in chronological order.

S.No Reason for Change Version No. Effective Date

(3)

Business Blue Print Preparation and Approval

FUNCTION DEPARTMENT DESIGNATION NAME SIGN & DATE

Prepared by

Reviewed & Approved by

(4)

Table of Contents

Contents

INTRODUCTION ...9

O

BJECTIVE OF THIS

R

EPORT

...9

S

TRUCTURE OF THE

R

EPORT

...10

1.1 O

RGANIZATION

O

VERVIEW

...10

1.1.1 A

BOUT

S

TRIDES

G

ROUP

(STRIDES

ARCOLAB

LTD.) ...10

1.2 W

AREHOUSE

M

ANAGEMENT

(WM)

AT

S

TRIDES

A

RCOLAB

L

TD

...11

ORGANIZATION STRUCTURE...12

2.1 O

RGANIZATION

S

TRUCTURE

...12

2.1.1 C

OMPANY

C

ODE

...12

2.1.2 P

LANT

...12

2.1.3 S

TORAGE

L

OCATIONS

...13

2.1.4 W

AREHOUSE

...17

2.1.5 O

RGANIZATION STRUCTURE OF

W

AREHOUSE

M

ANAGEMENT

...18

MASTER DATA ...26

3.1 M

ASTER

D

ATA

...26

3.1.1 M

ATERIAL

M

ASTER

...26

3.1.2 V

IEWS IN THE

M

ATERIAL

M

ASTER

R

ECORD

...27

3.1.3 O

RGANIZATION

L

EVELS IN

W

AREHOUSE MANAGEMENT FOR

M

ATERIAL MASTER DATA MAINTENANCE

...27

3.1.4 D

EFINING

W

AREHOUSE

D

ATA IN THE

M

ATERIAL

M

ASTER

...27

3.1.5 I

NTEGRATION

...27

(5)

4.1.1 W

AREHOUSE

N

UMBER

...28

4.1.2

S

TORAGE TYPE

...28

4.1.3

I

NTERIM

S

TORAGE

A

REAS

...37

4.1.4

S

TOCK

P

LACEMENT

U

SING

S

TORAGE

U

NIT

T

YPES

...39

4.1.5

S

TORAGE

S

ECTION

: ...42

4.1.6

S

TORAGE

B

IN

: ...42

4.1.7

Q

UANT

: ...44

4.1.8

S

HELF LIFE EXPIRATION DATE

(SLED) ...45

4.1.9

N

UMBER

R

ANGES

...45

4.1.10

T

YPES OF

S

TOCKS

: ...47

4.1.11

S

TOCK

C

ATEGORY

...48

4.1.12

S

TATUS OF

S

TOCK IN THE

W

AREHOUSE

...48

4.2

P

UT AWAY AND

P

ICKING

S

TRATEGIES

...49

4.2.1

F

ORMS AND REPORTS REQUIRED

...50

WAREHOUSE MANAGEMENT PROCESS COMPONENTS ...51

5.1

T

RANSFER REQUIREMENT

(TR)...51

5.1.1

U

SE

...51

5.1.2

T

HE SYSTEM UPDATES THE TRANSFER REQUIREMENT

...51

5.1.3

S

TRUCTURE OF

T

RANSFER REQUIREMENT

...52

5.1.4

T

RANSFER REQUIREMENTS CAN BE CREATED

: ...52

5.1.5

T

RANSFER REQUIREMENT UPDATES

: ...53

5.1.6

A

UTOMATIC CREATION OF TRANSFER REQUIREMENTS

...53

5.1.7

M

ANUAL CREATION OF

TR ...53

5.2

T

RANSFER ORDER

...54

5.2.1

S

TRUCTURE OF

T

RANSFER

O

RDER

(TO): ...54

5.2.2

C

REATING

T

RANSFER

O

RDERS

...55

5.2.3

P

REREQUISITES

...56

5.2.4

C

ONFIRMATION OF

T

RANSFER

O

RDERS

(TO’

S

) ...56

POSTING CHANGES IN WM...57

6.1.1 P

URPOSE

...57

6.1.2 R

EASONS FOR

M

AKING

P

OSTING

C

HANGES

...57

6.1.3 I

NTEGRATION

...57

6.1.4 P

ROCESSING

P

OSTING

C

HANGES

...57

6.1.5 P

ROCESS

F

LOW

...58

6.1.6 D

ISPLAYING

P

OSTING

C

HANGE

N

OTICES

...58

6.1.7 P

ROCESSING

P

OSTING

C

HANGES

E

NTIRELY

W

ITHIN

WM ...59

(6)

6.1.10 R

ELEASING

S

TOCK FROM

I

NSPECTION

...60

6.1.11 R

ELEASES FROM

M

ORE THAN

O

NE

S

TORAGE

T

YPE

...60

6.1.12 P

ROCEDURE IN

WM ...60

6.1.13 P

ROCESSING

B

LOCKED

S

TOCK

(E

XPIRED

G

OODS

) ...61

6.1.14 C

ONVERTING

A

VAILABLE

S

TOCK TO

I

NSPECTION

S

TOCK

...61

6.1.15 C

ONVERTING

A

VAILABLE

S

TOCK TO

I

NSPECTION

S

TOCK FOR

R

ETEST

...61

6.1.16 F

ORMS AND REPORTS REQUIRED

...61

GOODS RECEIPT ...63

7.1 G

OODS MOVEMENTS IN

W

AREHOUSE

M

ANAGEMENT

...63

7.1.1 T

HE

G

OODS

R

ECEIPT

P

ROCESS

...63

7.1.2 WM

-

QM

I

NTERFACE

...64

7.1.3 P

ROCESS FLOW

...64

7.1.4 G

OODS

R

ECEIPT FOR

Q

UALITY

I

NSPECTION

...65

7.1.5 P

ROCESS

F

LOW

...66

7.1.6 R

ELEASING

M

ATERIAL FROM

I

NSPECTION

S

TOCK

...66

7.1.7 T

ASKS IN

I

NVENTORY

M

ANAGEMENT AND

Q

UALITY

M

ANAGEMENT

...67

7.1.8 C

USTOMER RETURN MATERIAL HANDLING PROCESS

...67

7.2 G

OODS

R

ECEIPT

F

OR

P

URCHASE ORDER

/P

ROCESS ORDER

/

R

ETURN SALE ORDER

. ...68

7.2.1 SAP

S

CENARIOS

...68

7.3 G

OODS

R

ECEIPT WITHOUT

P

URCHASE ORDER

...69

7.3.1 SAP

S

CENARIOS

...69

7.4 G

OODS

R

ECEIPT OF

B

ULK

S

TORAGE

...69

7.4.1 SAP

S

CENARIOS

...69

7.5 O

NLINE

R

EJECTION

M

ATERIAL

D

OCUMENTS

...71

7.5.1 SAP

S

CENARIOS

...71

GOODS ISSUE ...72

8.1 G

OODS

I

SSUE IN THE

W

AREHOUSE

M

ANAGEMENT

...72

8.1.1 P

URPOSE

...72

8.1.2 P

ROCESS

F

LOW

...73

8.1.3 I

NTEGRATION

...73

8.1.4 F

EATURES

...74

8.1.5 I

MPACT OF DELIVERY ON

W

AREHOUSE

M

ANAGEMENT SYSTEM

...74

8.1.6 C

REATING A

TO

FOR A

C

ANCELLED

D

ELIVERY

...76

8.1.7 G

OODS

I

SSUE

B

ASED ON AN

I

NVENTORY

M

ANAGEMENT

P

OSTING

...77

8.1.8 G

OODS

I

SSUE TO A

C

OST

C

ENTER

...77

(7)

8.1.11 G

OODS

I

SSUE FOR

P

RODUCTION

S

UPPLY

...78

8.2 G

OODS

I

SSUE

T

O

P

ROCESS ORDER

/

C

OST CENTER

/

R

ESERVATION

/

P

URCHASE ORDER

/

R

ETURN

D

ELIVERY TO

V

ENDOR

...79

8.2.1 SAP

S

CENARIOS

...79

8.3 G

OODS

I

SSUE

T

O

C

ONTROL SAMPLES

...79

8.3.1 SAP

S

CENARIOS

...79

8.4 G

OODS

I

SSUE AGAINST

S

ALES

O

RDER

...80

8.4.1 SAP

S

CENARIO

...80

8.4.2 F

ORMS AND REPORTS REQUIRED

...80

TRANSFER POSTINGS ...81

9.1 G

ENERAL

D

ESCRIPTION

...81

9.1.1 F

EATURES

...81

9.1.2 T

RANSFER

P

OSTINGS AND

S

TOCK

T

RANSFERS

...81

9.1.3 S

TOCK

T

RANSFER

P

ROCEDURES

...81

9.1.4 S

TOCK

T

RANSFERS AND

R

EPLENISHMENT

...81

9.1.5 W

AREHOUSE TO WAREHOUSE STOCK TRANSFER BELONG TO TWO DIFFERENT PLANTS

...82

9.1.6 F

ROM

W

AREHOUSE TO

W

AREHOUSE

(

IN THE SAME

P

LANT

) ...83

9.1.7 I

NTERNAL

S

TOCK

T

RANSFERS

:

B

IN TO

B

IN TRANSFER IN THE SAME

W

AREHOUSE

...83

9.1.8 T

RANSFER OF

S

TOCK FROM

S

ALES ORDER STOCK TO

S

ALES ORDER

S

TOCK

...84

9.2 T

RANSFER OF MATERIAL FROM ONE WAREHOUSE TO ANOTHER WAREHOUSE WHICH BELONG TO TWO DIFFERENT PLANTS

...85

9.2.1 SAP

S

CENARIOS

...85

9.3 T

RANSFER

P

OSTING

-

W

AREHOUSE TO

W

AREHOUSE

(W

ITHIN THE

P

LANT

) ...85

9.3.1 SAP

S

CENARIOS

...85

9.4 T

RANSFER

P

OSTING

-B

IN TO

B

IN TRANSFER OF

M

ATERIAL WITH IN THE

W

AREHOUSE

...86

9.4.1 SAP

S

CENARIOS

...86

9.5 T

RANSFER

D

OCUMENT

C

REATED BY OTHER MOVEMENTS

...86

9.5.1 SAP

S

CENARIOS

...86

9.6 M

ATERIAL

D

OCUMENT

C

REATED BY OTHER MOVEMENTS

. ...88

9.6.1 SAP

S

CENARIOS

...88

9.6.2 F

ORMS AND REPORTS REQUIRED

...88

PHYSICAL INVENTORY ...89

10.1 P

URPOSE

...89

10.1.1 F

EATURES

...89

10.1.2 P

HYSICAL

I

NVENTORY

P

ROCEDURES

...90

(8)

M

ANAGEMENT

...92

10.1.5 SAP

S

CENARIOS

...92

10.1.6 F

ORMS AND REPORTS REQUIRED

...93

(9)

Introduction

The aim of the blue print on Warehouse Management System (WMS) is to know the functions, processes & procedures to be followed for the business requirements, integration with other modules & processes, which is the main deliverable of Business Blueprint Phase, is to serve as conceptual master plan for Warehouse Management System (WMS) module for XXX-client Name

This Blueprint has been developed by documenting all input gathered from the core team by scheduling meetings and workshops. This document shows the business requirements in detail, and serves as the basis for organization, configuration and development activities.

Objective of this Report

During the course of this phase of the assignment, Covansys consultants held business process workshop for the Core team members (across businesses) to discuss and deliberate the business requirements for respective functional areas. The objective of the workshops was to discuss the following aspects of each business process and to define the requirements of XXX-client Name in detail.

ƒ Business Process

ƒ Expectations/ Improvements

ƒ Reporting/Information requirements

Based on the discussions during the Business Process Workshop, various business scenarios have been documented which need to be addressed by the system. The purpose of this report is to confirm the understanding of these business scenarios, which would form the basis for system specifications and to also list requirements which cannot be addressed by the system. This document forms the basis for all subsequent activities to be conducted during the project.

(10)

Structure of the Report

The report initially gives an overview of the Warehouse Management Module purview. This would essentially help in defining the boundaries of the module and also in identifying the activities to be performed within Warehouse Management Module in SAP. Subsequently, the report discusses in detail, the proposed coverage of SAP at XXX-client Name., in terms of organizational entities and business processes. Each business process has been described with all the variations. The authorization requirements would be identified and configured during the configuration phase.

1.1 Organization Overview

About XXX-client Name

XXX-client Name is an integrated manufacturers and exporter of finished pharmaceutical dosage forms

– both branded and generic. Stride’s is a significant global player in soft gelatin capsules and sterile parenterals with quality standards that meet the most stringent regulated market standards.

Strides has 14 world-class plants in India, U.S.A, Brazil, Mexico, Poland and Italy offering its partners the advantage of multi-location product sourcing.

Strides is among the world’s top 5 soft gel capsule manufacturers with plants in India and an US FDA inspected plant in the U.S.A.

Strides has marketing presence in 55 countries. This broad network facilitates partnering with global organizations ranging from UNICEF, UNDP, Global TB Drug Facility, The Clinton Foundation to European and American pharma giants and even private labelers and distribution chains.

In addition, Strides also undertakes Contract Research & Manufacturing of Specialty Chemicals.

Strides have about 1500 employees in total in different operations across various geographical locations. The annual revenues of the group are in the range of RS 700 Crore.

Strides have implemented SAP as the backbone ERP system in 2004-05, which is being successfully used for the last 2 years. However, keeping in view the future challenges and growth plans, Strides has decided to implement mySAP ERP R/3 4.7 Ver. Warehouse Management Module.

(11)

The Warehouse Management system (WMS) is implemented in the following plants XXX for the management of warehouse.

The SAP Warehouse Management module allows:

‰ Definition and mapping of the physical warehousing structures in the system ‰ Processing goods movements like - receipts, issues and stock transfers

‰ Maintain up to date stock inventories in the Warehousing complex at storage bin level

The Warehouse management is integrated with Material Management (MM), Sales & Distribution (SD), Quality Management (QM) modules. The base document for the material movement will be generated either in the MM or SD or QM modules.

For all the Goods receipt (GR) from the vendors and other plants, the base document will be generated in MM module. For Goods Issue (GI) for either to production or to other plants the base document will be generated in MM module.

As quality management is active in the organization, all the materials will pass through the quality inspection process during the GR and GI and posting change document (change in the stock type of the material stock i.e. either from quality inspection stock to unrestricted etc) will be generated in quality management for the placement or removal of material in warehouse.

During the GR quality inspection process and online inspection process during production, the base document to return the material to the vendor will be generated in QM module.

For the delivery of goods against sales order, the delivery document will be generated in SD module for the removal of the material from the warehouse.

For handling the customer return materials, the base document will be generated either in SD module. The inventory will be managed both in storage location level in Inventory management (IM) level in MM module and at bin level in Warehouse Management.

WM module also has RFID & Bar code reading functionality. These can be explored & implemented in future as separate project.

(12)

Organization Structure

2.1 Organization Structure

In SAP, a company is made up of a variety of operational groups. These groups or organizational units can include sales, purchasing, accounting, distribution, and so forth. SAP R/3 System is designed to support each of these groups. Different software applications in the R/3 System can be linked to these organization units to create a completely integrated company structure.

Flexible organizational units in the R/3 System let user represent user’s organization with a comprehensive company structure. The combination and integration of organizational units form the legal and structural basis of a company. For example, organizational units can interface with materials management, sales and distribution, and financial accounting. Different application areas in the R/3 System can be linked through organizational units to create a completely integrated company structure.

Company Code

A Company code represents the XXX client Group legal entity and accounting unit where balance sheet and profit and loss statements are created.

There will be XX Company Codes representing XXX client Group. 1000

2000 3000

Plant

A plant is an organizational unit within the company, against which materials are purchased and stored. Only the above company codes are considered for the WM implementation.

Company Code: 1000 -

1050 Sterile Products Division

1060 Beta Lactam Division

1070 Oral Dosage Forms

1080 Formulation Development

1090 Sterile Facilities Formulation

(13)

Company Code: 2000 - GLOBAL REMEDIES

2010 Global Remedies Limited

Company Code: 3000 - QUANTUM LIFE SCIENCES PVT

3010 QUANTUM LIFE SCIENCES PVT LTD.

Storage Locations

A storage location is a unit that allows the differentiation of material stocks within a plant. Inventory management on a quantity basis is carried out at storage location level. Physical inventory is also carried out at storage location level. Each plant may have multiple storage locations.

Plant Code

Storage location

1050

CR01

1050

CSLF

1050 FG01

1050 NMFG

1050 PM01

1050 CSLP

1050 SMP1

1050 RM01

1050 CSLR

1050 FD01

1050 PS01

1050 SMR1

1050 RR01

1050 MI01

(14)

1060

CR01

1060 CSLF

1060 FG01

1060 NMFG

1060 PM01

1060 CSLP

1060 SMP1

1060 RM01

1060 CSLR

1060 FD01

1060 PS01

1060 SMR1

1060 RR01

1060 MI01

Plant Code

Storage location

1070

CR01

1070

CSLF

1070 FG01

1070 NMFG

1070 PM01

1070 CSLP

1070 SMP1

1070 RM01

1070 CSLR

1070 FD01

1070 PS01

1070 SMR1

1070 RR01

1070 CL01

(15)

1080

CR01

1080 CSLF

1080 FG01

1080 NMFG

1080 PM01

1080 CSLP

1080 SMP1

1080 RM01

1080 CSLR

1080 FD01

1080 PS01

1080 SMR1

1080 RR01

1080 MI01

Plant Code

Storage location

1090

CR01

1090 CSLF

1090 FG01

1090 NMFG

1090 PM01

1090 CSLP

1090 SMP1

1090 RM01

1090 CSLR

1090 FD01

1090 PS01

1090 SMR1

1090 RR01

1090 MI01

(16)

1100

CR01

1100 CSLF

1100 FG01

1100 NMFG

1100 PM01

1100 CSLP

1100 SMP1

1100 RM01

1100 CSLR

1100 FD01

1100 PS01

1100 SMR1

1100 RR01

1100 MI01

Plant Code

Storage location

2010

CR01

2010 CSLF

2010 FG01

2010 NMFG

2010 PM01

2010 CSLP

2010 SMP1

2010 RM01

2010 CSLR

2010 FD01

2010 PS01

2010 SMR1

2010 RR01

2010 MI01

(17)

3010

CR01

3010 CSLF

3010 FG01

3010 NMFG

3010 PM01

3010 CSLP

3010 SMP1

3010 RM01

3010 CSLR

3010 FD01

3010 PS01

3010 SMR1

3010 RR01

3010 MI01

Above Same Storage Location will be activated for Warehouse management modules.

Warehouse

The Warehouse Management (WM) application provides flexible, automated support to assist in processing all goods movements and in maintaining current stock inventories in warehousing complex. WM supports warehousing processes like:

¾ Define and manage complex warehousing structures

¾ Optimize material flow using advanced put away and picking techniques ¾ Process goods receipts, goods issues and stock transfers quickly and easily The Warehouse Management application is fully integrated into the SAP R/3 system.

Transactions that are initiated in other SAP components result in corresponding tasks in WM which activate the actual physical transfers within the warehouse.

A few of these activities include:

¾ Material movements and changes in material status, such as releasing goods from inspection ¾ Material staging to production supply areas

(18)

Company Code

Plant

Code

location

Storage

Name Warehouse

Code

1000 - STRIDES

ARCOLAB LTD 1050 FG01

Finished Goods 105

CR01

Customer returns 105

CSLF

Cus supp FERT 105

NMFG

Non Moving FG 105

PM01

Packing Material 105

CSLP

Cus supp Pack 105

SMP1

Slow-mvng PM 105

RM01

Raw materials 105

CSLR

Cus supply ROH 105

FD01

Raw materials / Packing Mat. 105

PS01

Pre purchase sam 105

SMR1

Slow-mvng RM 105

RR01

Rejections 105

MI01

Miscellaneous 105

1000 - STRIDES

ARCOLAB LTD 1060

FG01

Finished Goods 106

CR01

Customer returns 106

CSLF

Cus supp FERT 106

NMFG

Non Moving FG 106

PM01

Packing Material 106

CSLP

Cus supp Pack 106

SMP1

Slow-mvng PM 106

RM01

Raw materials 106

CSLR

Cus supply ROH 106

FD01

Raw materials / Packing Mat. 106

PS01

Pre purchase sam 106

SMR1

Slow-mvng RM 106

RR01

Rejections 106

(19)

ARCOLAB LTD

CR01

Customer returns 107

CSLF

Cus supp FERT 107

NMFG

Non Moving FG 107

PM01

Packing Material 107

CSLP

Cus supp Pack 107

SMP1

Slow-mvng PM 107

RM01

Raw materials 107

CSLR

Cus supply ROH 107

FD01

Raw materials / Packing Mat. 107

PS01

Pre purchase sam 107

SMR1

Slow-mvng RM 107

RR01

Rejections 107

MI01

Miscellaneous 107

CL01

Caryl stock 107

1000 - STRIDES

ARCOLAB LTD 1080

FG01

Finished Goods 108

CR01

Customer returns 108

CSLF

Cus supp FERT 108

NMFG

Non Moving FG 108

PM01

Packing Material 108

CSLP

Cus supp Pack 108

SMP1

Slow-mvng PM 108

RM01

Raw materials 108

CSLR

Cus supply ROH 108

FD01

Raw materials / Packing Mat. 108

PS01

Pre purchase sam 108

SMR1

Slow-mvng RM 108

RR01

Rejections 108

MI01

Miscellaneous 108

1000 - STRIDES

ARCOLAB LTD 1090

FG01

Finished Goods 109

(20)

NMFG

Non Moving FG 109

PM01

Packing Material 109

CSLP

Cus supp Pack 109

SMP1

Slow-mvng PM 109

RM01

Raw materials 109

CSLR

Cus supply ROH 109

FD01

Raw materials / Packing Mat. 109

PS01

Pre purchase sam 109

SMR1

Slow-mvng RM 109

RR01

Rejections 109

MI01

Miscellaneous 109

1000 – STRIDES

ARCOLAB LTD 1100

FG01

Finished Goods 110

CR01

Customer returns 110

CSLF

Cus supp FERT 110

NMFG

Non Moving FG 110

PM01

Packing Material 110

CSLP

Cus supp Pack 110

SMP1

Slow-mvng PM 110

RM01

Raw materials 110

CSLR

Cus supply ROH 110

FD01

Raw materials / Packing Mat. 110

PS01

Pre purchase sam 110

SMR1

Slow-mvng RM 110

RR01

Rejections 110

MI01

Miscellaneous 110

2000 - GLOBAL

REMEDIES 2010

FG01

Finished Goods 201

(21)

NMFG

Non Moving FG 201

PM01

Packing Material 201

CSLP

Cus supp Pack 201

SMP1

Slow-mvng PM 201

RM01

Raw materials 201

CSLR

Cus supply ROH 201

FD01

Raw materials / Packing Mat. 201

PS01

Pre purchase sam 201

SMR1

Slow-mvng RM 201

RR01

Rejections 201

MI01

Miscellaneous 201

3000 - QUANTUM LIFE

SCIENCES PVT 3010

FG01

Finished Goods 301

CR01

Customer returns 301

CSLF

Cus supp FERT 301

NMFG

Non Moving FG 301

PM01

Packing Material 301

CSLP

Cus supp Pack 301

SMP1

Slow-mvng PM 301

RM01

Raw materials 301

CSLR

Cus supply ROH 301

FD01

Raw materials / Packing Mat. 301

PS01

Pre purchase sam 301

SMR1

Slow-mvng RM 301

RR01

Rejections 301

(22)

Warehouse Organization structure for Plants

1050 (SPD)

SPD Storage

Locations

SPD

Warehouse

105

1060(BLD)

BLD Storage

Locations

BLD Warehouse

106

(23)

1070(ODF)

ODF Storage

Locations

ODF Warehouse

107

1080 (FD)

FD Storage

Locations

FD Warehouse

108

(24)

1090 (SFF)

SFF Storage

Locations

SFF

Warehouse

109

1100 (GRL)

GRL Storage

Locations

GRL Warehouse

110

(25)

2010 (GRL)

GRL Storage

Locations

GRL

Warehouse

201

3010 (QLS)

QLS Storage

Locations

QLS Warehouse

301

(26)

Master Data

3.1 Master Data

Master data is defined as data records, which remain unchanged over an extended period of time and contain information that is used in the same manner for similar objects. Consistency and correctness of format and input is essential to ensure full and proper use of the system.

Material Master

The material master record is the source of material specific data, which is used throughout the SAP R/3 system. The data contained in the material master record is required for many functions within the logistics system such as purchasing data for ordering, inventory management for posting goods movements, accounting data for valuation upon goods movements or invoice verification and materials planning data and for the storing the materials in warehouse / storage location.

Material data is held at different organizational levels:

Data on client level: Material group, base unit of measure, material descriptions, general technical data and conversion factors for alternative units of measure.

Data at plant level: All plant and related storage location specific data. Data at storage level: All storage location specific data.

Data at Warehouse level: All warehouse specific data such as picking and placement strategies. Data at storage type level: Storage specific data such as bin location specific to the storage area.

© S A P A G 1 9 9 9 D a t a t h a t i s v a l i d f o r t h e w h o l e c o m p a n y : F o r e x a m p l e , m a t e r i a l n o . , m a t e r i a l s h o r t t e x t , m a t e r i a l g r o u p , b a s e a n d a l t e r n a t i v e u n i t s o f m e a s u r e , . . . D a t a t h a t i s v a l i d w i t h i n o n e p l a n t : F o r e x a m p l e , p u r c h a s i n g d a t a , M R P d a t a , f o r e c a s t i n g d a t a , w o r k s c h e d u l i n g d a t a , . . . D a t a t h a t i s v a l i d f o r o n e s t o r a g e l o c a t i o n : F o r e x a m p l e , s t o r a g e b i n d e s c r i p t i o n , p i c k i n g a r e a , . . . M a t e r i a l M a s t e r : O r g a n i z a t i o n a l L e v e l s

(27)

Views in the Material Master Record

Data can be maintained and displayed in material master records using views. Just as data in the material master record is maintained for specific departments, such as quality assurance, sales or product planning, some of the data is used specifically by the Warehouse Management (WM) application.

For example, when user maintain material data from the viewpoint of warehouse management, the system displays only the data that is relevant for the storage of the material in the warehouse. General data that is relevant for more than one view (for example, the material's description, its weight, and its volume) appears in several views.

Organization Levels in Warehouse management for Material master data

maintenance

There are two organizational levels that can be defined for WM. In the WM view of the material master record, all the indicators and fields that are used for the entire warehouse number are entered at the warehouse number level. There is also a storage type level with all the indicators that apply to a single storage type but do not for the entire warehouse. If user enter a storage type for a material on the initial screen for the WM view, the system displays an additional section in which user can enter, for example, a fixed storage bin or a control quantity. These fields only apply to the storage type and not to the entire warehouse.

Defining Warehouse Data in the Material Master

The material master data for warehouse management system can be maintained separately or along with the other views. The procedure to be followed for the mater data maintenance is given below. If user want to create the material master data for a material for more than one storage area (storage type) for a warehouse, user have to create the data for each storage type – warehouse combination in creation mode of material master.

To define warehousing data in the material master:

1. 1. Choose Logistics _ Logistics Execution _ Master Data _ Material _ Material _ Create _ immediately from the SAP menu. Transaction code is MM01.

2. To change data in the material master, choose Logistics _ Logistics Execution _Master Data_ Material _ Material _ Create _ immediately. Transaction code is MM02. The steps for changing data are basically the same as those described below. Using this function, user can overtype existing data in the material master record. Transaction code is MM02 and MM03 to display the material master.

Integration

The WM has integration with Material management (MM), Sales & Distribution (SD), Quality management (QM) and Production Planning (PP).

(28)

Warehouse Structure

4.1

General Description

The Warehouse Management (WM) application provides flexible, automated support to assist in processing all goods movements and in maintaining current stock inventories in warehousing complex. WM supports warehousing processes like:

¾ Define and manage complex warehousing structures

¾ Optimize material flow using advanced put away and picking techniques ¾ Process goods receipts, goods issues and stock transfers quickly and easily The Warehouse Management application is fully integrated into the SAP R/3 system.

Transactions that are initiated in other SAP components result in corresponding tasks in WM which activate the actual physical transfers within the warehouse.

A few of these activities include:

¾ Goods receipt from the vendors. ¾ Inter plant stock transfers.

¾ Material movements and changes in material status, such as releasing goods from inspection ¾ Material staging to production supply areas

¾ Picking and shipping goods for sales orders

Warehouse Number

In Warehouse Management (WM), a complete physical warehouse is defined under a single warehouse number. Using the warehouse number, user can manage several individual warehouse buildings that, together, form a complete warehouse complex. The warehouse number encompasses the organizational and physical aspects of a warehousing complex as a single concept.

Storage type

It is a storage area in warehouse facility, or a warehouse zone that is defined in Warehouse Management (WM) for a warehouse number. This is a physical or logical subdivision of a warehouse complex that is characterized by its warehouse technique, the space used, its organizational form, or its function. A storage bin consists of one or several storage bins.

(29)

¾ Goods receipt area ¾ Goods Issue area. ¾ Bulk storage ¾ Open Storage ¾ High rack storage ¾ Picking area ¾ Shelf storage

We will define the important control indicators at the storage type level that determine the material flow (put away and picking activities) and the way inventory is handled in each storage type. These include the control indicators for:

™ Put away strategy ™ Picking strategy

For SPD (1050) plant the following storage types (areas) are finalized: Ambient Temperature Area

A01 UQ PM Gr.Flr

A02 Open Area UQ PM Gr.Flr A03 App PM Gr.Flr

A04 Open Area App PM Gr.Flr A05 UQ PM Printed materials Gr.Flr

A06 Open Area UQ PM Printed materials Gr.Flr A07 App PM Printed materials Gr.Flr

A08 Open Area App PM Printed materials Gr.Flr A09 Rej RM/PM Gr.Flr

A10 Open area Rej RM/PM Gr.Flr A11 UQ PM Ist.Flr

A12 Open Area UQ PM Ist.Flr A13 App PM Ist.Flr

A14 Open Area App PM Ist.Flr A15 Rej PM Ist.Flr

A16 Open area Rej PM Ist.Flr

A17 Open area PM cellar (App/UQ) A18 Open Area Solvents\Liquids

(30)

C01 UQ RM Room

C02 Open Area UQ RM Room C03 UQ RM Controlled Substance C04 UQ RM Hazardus chemicals C05 App RM Room

C06 Open Area App RM Room C07 App RM Controlled Substance C08 App RM Hazardus chemicals C09 UQ PM for Labels

C10 App PM for Labels C11 App & UQ FG Gr. Flr

C12 Open Area App & UQ FG Gr. Flr C13 Rejected FG Gr. Flr

Cold Temperature Area

D01 App/UQ/Rej for RM D02 App/UQ/Rej for FG

For BLD (1060) plant the following storage types (areas) are finalized: Ambient Temperature Area

A01 UQ PM Room 1

A02 Open Area UQ PM Room1 A03 Rej PM Room1

A04 Open area Rej PM Room1 A05 App PM Room 1

A06 Open Area App PM Room1 A07 UQ PM Printed materials

A08 Open Area UQ PM Printed materials A09 App PM Printed materials

(31)

A11 App PM Room 2

A12 Open Area App PM Room2

Cool Temperature Area

C01 Open Area UQ PM (PVDC/FOIL) C02 App PM (PVDC/FOIL)

C03 Open Area App PM (PVDC/FOIL) C04 UQ PM for Labels

C05 App PM for Labels

C06 Open Area FG ( App & UQ) C07 Open Area FG ( Rejected) C08 UQ RM room 1

C09 Open Area UQ RM room1 C10 Rej RM Room1

C11 Open Area Rej RM Room1 C12 App RM Room1

C13 Open Area APP RM Room 1 C14 App RM Room2

C15 Open Area APP RM Room 2

Cold Temperature Area

D01 Open Area RM (App/UQ/Rej)

For ODF (1070) plant the following storage types (areas) are finalized: Ambient Temperature Area

A01 UQ RM Room 1

A02 Open Area UQ RM room1 A03 Rej RM Room1

(32)

A06 Open Area UQ RM room2 A07 App RM Controlled Room 1 A08 App RM Room1

A09 Open Area APP RM Room 1 A10 UQ RM Room 3

A11 Open Area UQ RM Room 3 A12 App RM Room2

A13 Open Area App RM Room 2 A14 Op Area Solvents(App & Uq) A15 App & UQ PM

A16 Op Area App & UQ PM A17 Rejected area PM A18 App & UQ PM printed A19 UQ Misc

A20 App Misc A21 Open area App Misc A22 Open Area Rej RM A23 Open Area Rej PM

Cool Temperature Area

C01 UQ RM room 1

C02 Open Area UQ RM room1 C03 Rej RM Room1

C04 App RM Room1

C05 Open Area APP RM Room 1 C06 App RM Room2

C07 Open Area APP RM Room 2 C08 UQ RM Room 2

(33)

C11 Open Area APP RM Room 3 C12 App RM Room4

C13 Open Area APP RM Room 4

C14 Bulk storage tanks (both App & UQ)

C15 open area Bulk storage cellar (both App & UQ) C16 EHG capsule storage(both App & UQ)

C17 Op Area EHG caps storage(both App & UQ) C18 App & UQ PM (PVC/ PVDC)

C19 Open Area App & UQ PM (PVC/ PVDC) C20 App & UQ PM (Foil & Label)

C21 Open Area App & UQ PM (Foil & Label) C22 Rejected area PM

C23 App & UQ FG Gr. Flr

C24 Open Area App & UQ FG Gr. Flr C25 Rejected FG Gr. Flr

C26 App & UQ FG Ist. Flr

C27 Open Area App & UQ FG Ist. Flr C28 Misc Mat. FG Gr. Flr

C29 Open Area Rej RM C30 Open Area Rej PM

Cold Temperature Area

D01 UQ RM D02 APP RM D03 Rej RM D04 Op Area UQ RM D05 Op Area App RM

(34)

Ambient Temperature Area Cool Temperature Area

C01 UQ RM Gr. Flr

C02 Open Area UQ RM Gr. Flr C03 Rej RM Gr. Flr

C04 App RM Gr. Flr

C05 Open Area APP RM Gr. Flr C06 UQ RM Ist. Flr

C07 Open Area UQ RM Ist. Flr C08 App RM Ist. Flr

C09 Open Area APP RM Ist. Flr C10 UQ PM Gr.Flr

C11 Open Area UQ PM Gr.Flr C12 App PM Gr.Flr

C13 Open Area App PM Gr.Flr C14 Rej PM Gr.Flr

C15 Open area RM controlled Substance (App/UQ/Rej)

Cold Temperature Area

D01 Open Area RM (App/UQ/Rej)

For SPD 2 (1090) plant the following storage types (areas) are finalized: Ambient Temperature Area

A01 UQ PM Room 1

A02 Open Area UQ PM Room1 A03 Rej PM Room1

A04 App PM Room 1

(35)

C01 UQ RM room 1

C02 Open Area UQ RM room1 C03 Rej RM Room1

C04 App RM Room1

C05 Open Area APP RM Room 1

Cold Temperature Area

D01 Open Area RM (App/UQ/Rej)

For GRL (1100) plant the following storage types (areas) are finalized: Ambient Temperature Area

A01 UQ RM Gr. Flr

A02 Open Area UQ RM Gr. Flr

A03 Open Area UQ RM Gr. Flr Room2 A04 App RM Gr. Flr

A05 Open Area App RM Gr. Flr

A06 Open Area App RM Gr. Flr Room 2 A07 Open area Rejected RM Gr. Flr A08 UQ/App Printed PM Gr. Flr

A09 Open Area UQ/App Printed PM Gr. Flr A10 UQ/App Printed Labels Gr. Flr

A11 UQ/App PM Gr. Flr

A12 Open Area UQ/App PM Gr. Flr A13 Open area Rej PM Gr. Flr

(36)

C01 UQ RM Gr. Flr

C02 Open Area UQ RM Gr. Flr C03 App RM Gr. Flr

C04 Open Area App RM Gr. Flr C05 Open area Rejected RM Gr. Flr C06 UQ/App PM Gr. Flr

C07 Open Area UQ/App PM Gr. Flr

Cold Temperature Area

D01 Open Area RM (App/UQ/Rej)

For QLS (3010) plant the following storage types (areas) are finalized: Ambient Temperature Area

A01 UQ PM Gr.Flr

A02 Open Area UQ PM Gr.Flr A03 App PM Gr.Flr

A04 Open Area App PM Gr.Flr A05 UQ PM Printed materials Gr.Flr

A06 Open Area UQ PM Printed materials Gr.Flr A07 App PM Printed materials Gr.Flr

A08 Open Area App PM Printed materials Gr.Flr A09 Rej PM Gr.Flr

A10 Open area Rej PM Gr.Flr

Cool Temperature Area

C01 App & UQ FG Gr. Flr

C02 Open Area App & UQ FG Gr. Flr C03 Rejected FG Gr. Flr

(37)

C06 Open Area UQ RM Gr. Flr C07 App RM Gr. Flr

C08 Open Area App RM Gr. Flr C09 Rejected RM Gr. Flr

C10 Open area Rejected RM Gr. Flr C11 UQ PM for Labels

C12 App PM for Labels C13 App RM Ist. Flr

Cold Temperature Area

The business requirement of SPD, BLD, QLS, ODF, SFF and GRL blocked storage area or rejected storage area, materials in this area should not be available for sales invoice i.e. for goods issue for either sales order or Process order. Customer return materials will go through the quality inspection and only quality rejected materials will be coming to customer return materials storage area. The materials in this area are not available for issue. The status of the materials in this area should be “blocked”.

Interim Storage Areas

Storage types that are commonly used by Inventory management and warehouse management are called Interim Storage Areas. The Inventory Management (IM) application component communicates with the Warehouse Management component through interim storage types. Goods receipts and issues posted in IM are automatically updated in WM in these interim storage types.

Interim storage areas are:

¾ Goods receipt area ¾ Goods issue area

¾ Interim storage area for differences ¾ Posting change zone

SAP has predefined intermediate Storage types starting the number with ‘9’ series.

Code Description

901 GR Area for Production 902 GR Area External Rcpts 904 Returns

910 GI Area General 911 GI Area for Cost Center

(38)

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 (StLoc) 922 Posting Change Area

923 Packaging Area 980 R/3 --> R/2 Cumulative 998 Init. Entry of Inv. Data 999 Differences

(39)

The Warehouse Management (WM) system allows user to use a number of different storage unit types when user transfer and store materials in the warehouse. For example, user can transfer materials on pallets of various sizes, such as European pallets or industrial pallets. Crates or pallets of materials that must be stored in different locations because of height or weight limits can be stored without unnecessary loss of space.

Usage of Storage Unit Types:

In order to use storage unit types user can

1. Define storage unit types in the material master record

2. Enter a storage unit type on the initial screen to create a transfer order without an originating document

3. Enter a storage unit type on the preparation screen for a transfer order

When creating transfer orders, if user enters the storage unit type either on the initial screen or the preparation screen, the system uses the value user enter instead of the storage unit type in the material master record, if one is available. If user do not enter a storage type on the initial screen and user go to the preparation screen, the system uses the storage unit type defined in the material master record. If users do not enter a storage type on the initial screen and user goes to the item screen, the system does not propose a storage unit type, even if one has been defined in the material master. User must enter the storage unit type and then choose ENTER before the system will propose a storage type and bin.

Following Storage Unit Types will me configured for Strides

105 U1 Pallet 105 U2 Common Unit 106 U1 Pallet 106 U2 Common Unit 107 U1 Pallet 107 U2 Common Unit 108 U1 Pallet 108 U2 Common Unit 109 U1 Pallet 109 U2 Common Unit

(40)

110 U1 Pallet

110 U2 Common Unit

301 U1 Pallet

301 U2 Common Unit

Following Storage Bin type will be configured for the entire Warehouse.

105 B1 Racks 105 B2 Cup Board 105 B3 Compactor 105 B4 Bulk Tank 106 B1 Racks 106 B2 Cup Board 106 B3 Compactor 106 B4 Bulk Tank 107 B1 Racks 107 B2 Cup Board 107 B3 Compactor 107 B4 Bulk Tank 108 B1 Racks 108 B2 Cup Board 108 B3 Compactor 108 B4 Bulk Tank 109 B1 Racks 109 B2 Cup Board

(41)

109 B4 Bulk Tank 110 B1 Racks 110 B2 Cup Board 110 B3 Compactor 110 B4 Bulk Tank 301 B1 Racks 301 B2 Cup Board 301 B3 Compactor 301 B4 Bulk Tank

(42)

In Warehouse Management (WM), a storage section is an organizational subdivision of storage type that group’s together storage bins with similar features for the purpose of putting away stock.

The criteria for grouping bins can be defined on a user-individual basis, for example, heavy parts, bulky materials, fast-moving items, slow-moving items.

Following Storage Section will be created for High Racks as per the current Rack Levels are available.

L1 Level 1 L2 Level 2 L3 Level 3 L4 Level 4 L5 Level 5 L6 Level 6 L7 Level 7 L8 Level 8 L9 Level 9

Storage Bin:

The storage bin is the smallest available unit of space in a warehouse. The storage bin therefore describes the position in the warehouse where the goods are or can be stored. Since the address of storage bin is frequently derived from a coordinate system, a storage bin is often referred to as a coordinate. The coordinate 01-02-03 for example, can refer to a storage bin in row 1, stack 2, and level 3.

User assigns each storage bin to a specific warehouse number and storage type according to its location. User must also assign each storage bin to a storage section. User can also define the following additional characteristics of a storage bin:

™ Maximum weight ™ Total capacity

(43)

The WM system manages both homogeneous and mixed storage in storage bins.

1. Homogeneous Storage

Homogeneous storage is the storage of only one material number in a storage bin. User can define a storage type so that only one material can be stored in each available storage bin. Bulk storage areas are set up so that one line or block contains only one material number. For example, materials such as cases filled with beverages, bottled gas and pallets of cement blocks and other construction materials are stored homogeneously in bulk storage areas. This method is preferable when large quantities of the same material are stored in a warehouse.

2. Mixed Storage

When user define mixed storage for a storage type in your warehousing complex, it is possible to store two or more materials (quants) in each storage bin. There is no standard strategy in WM that automatically would place material together with another material that is already stored in a storage bin. User will manually place the different stock with physical bin partition. Mixed storage is particularly useful when user have smaller quantities of several material numbers that need to be stored in the same storage area. Often, slower moving items are stored in mixed storage areas. Homogeneous storage would not be useful here, because that would mean that only a few boxes might be stored in each storage bin.

Activities:

Creating a single storage bin

From the SAP Menu, choose Logistics _ Logistics Execution _ Master Data _Warehouse _Storage Bin _ Create __Manually.

Transaction code is LS01.

Creating several storage bins simultaneously

To create a group of storage bins with similar characteristics, user defines a template with the coordinate structure as follows:

From the SAP menu choose Logistics_ Logistics Execution _ Master Data _ Warehouse _Storage Bin _ Create _ automatically.

Transaction code is LS10

Blocking and Unblocking Storage Bins

In WMS will give flexibility of blocking storage bins for put away as well as for picking. User must block any storage bins that are no longer accessible, that have been damaged or are to be renovated, or when put away or picks are not possible. User can block or unblock storage bins

(44)

™ On the basis of rows

™ In bulk storage with a time limit for put away ™ For the whole storage type

Quant:

Quant is the stock of any material with the same features in one storage bin. The system manages different batches of a material as different quant. The quantity of a quant can be increased by an addition to existing stock. Quant can be created or deleted solely through goods movements.

The quant serves to manage stocks at storage bin level. When goods are stored in empty storage bin in WM, the system automatically creates a quant in this bin. The system automatically assigns a quant number. The quant is automatically deleted by the system when the material quantity is picked.

In the quant record, the system manages the data of the materials grouped in the quant. This data includes: ¾ Quant identification ¾ Plant ¾ Material number ¾ Batch number ¾ Stock category

¾ Special stock indicator and number

The different types of stock (categories) and special stock are passed to WM from IM and serve as stock separation characteristics in the quant. WM has neither stock categories nor any special stock types of its own. Since it is possible to manage stocks from different plants within one warehouse complex number, the plant must also exist as a stock separation characteristic in the quant.

Since the system automatically assigns a quant number to each separate quant in WM, the system can optimize material flow and manage stock in the warehouse more efficiently.

(45)

The SLED field only exists in the quant when shelf life management is active in Materials Management (MM). This happens when the material master is maintained accordingly. During a stock placement in MM user can enter either the production date or the shelf life expiration date. This depends upon whether the field Remaining shelf life has been maintained in the material master record. For example, if 10 days have been entered into this field, the system assumes that when goods are received, the production date was entered and calculates the shelf life automatically. If user leaves this field empty in the material master, the system makes it possible for user to directly enter the shelf life expiration date.

This date that is entered or calculated during the goods receipt is then noted in the quant that is created in the storage bin. If user adds stock to an existing quant in a storage bin, the shelf life expiration date of the new quantity that is added is lost.

Enter the shelf life data into the storage view of the material master record. This data includes: ™ Maximum time a material can be stored

™ Minimum shelf life a material must have available to be accepted by the system

™ Percentage of the total shelf life that must still be available if the goods are to be sent to another distribution point

™ Time unit used for the shelf life data (days, weeks or years)

™ Total number of days that the goods can be kept – from production to the shelf life expiration date

Number Ranges

Warehouse Management (WM) numbers many objects in the warehouse on a continual basis. The assignment of number ranges provides an orderly sequencing system for several functions within WM.

Assigning Number Ranges

Number ranges for the following objects in the Warehouse Management can be defined as: ™ Transfer requirements

™ Transfer orders

™ Posting change notices ™ Physical Inventory

(46)

documents.

Doc No. For TR Doc No. For TO Plant

code Plant Description WH No From To From To

1050 Sterile Products Division 105 6500000000 6599999999 7500000000 7599999999 1060 Beta Lactam Division 106 6600000000 6699999999 7600000000 7699999999 1070 Oral Dosage Forms 107 6700000000 6799999999 7700000000 7799999999 1080 Formulation Development 108 6800000000 6899999999 7800000000 7899999999 1090 Sterile Facilities

Formulation 109 6900000000 6999999999 7900000000 7999999999 1100 Global Remedies Limited 110 6100000000 6199999999 7100000000 7199999999 3010 Quantum Life Sciences 301 6300000000 6399999999 7300000000 7399999999

Doc No. For PCN Doc No. For Quant Plant

code Plant Description

WH

No From To From To

1050 Sterile Products Division 105 8500000000 8599999999 1 9999999999 1060 Beta Lactam Division 106 8600000000 8699999999 1 9999999999 1070 Oral Dosage Forms 107 8700000000 8799999999 1 9999999999 1080 Formulation Development 108 8800000000 8899999999 1 9999999999 1090 Sterile Facilities

Formulation 109 8900000000 8999999999 1 9999999999 1100 Global Remedies Limited 110 8100000000 8199999999 1 9999999999 3010 Quantum Life Sciences 301 8300000000 8399999999 1 9999999999

Doc No. For Phy.Inv Doc No. For Phy.Inv-TO Plant

code Plant Description

WH

No From To From To

1050 Sterile Products Division 105 1500000000 1599999999 2500000000 2599999999 1060 Beta Lactam Division 106 1600000000 1699999999 2600000000 2699999999 1070 Oral Dosage Forms 107 1700000000 1799999999 2700000000 2799999999 1080 Formulation Development 108 1800000000 1899999999 2800000000 2899999999 1090 Sterile Facilities

Formulation 109 1900000000 1999999999 2900000000 2999999999 1100 Global Remedies Limited 110 1100000000 1199999999 2100000000 2199999999 3010 Quantum Life Sciences 301 1300000000 1399999999 2300000000 2399999999

(47)

Special Stock:

Special stock is managed separately in the Warehouse Management (WM) application for reasons of ownership or for various factors reflecting the location in which they are kept. Each type of special stock is assigned a special stock indicator to aid in managing it in the system. Special stock characteristics assigned during goods movements transactions in the IM component are displayed on WM screens and taken into consideration when processing stock in WM.

Types of special stock using WMS:

1. Individual Customer (Sales Order) Stock (E)

Individual customer (make-to-order) stock is managed in WM using a special stock number and the special stock indicator E.

2. Consignment Stock (K)

Stock of materials made available by the vendor and stored on the premises of the ordering party. This stock remains in the ownership of the vendor until it is removed from the warehouse and used for production purposes or taken over into the company's own valuated stock. Consignment stock is managed in WM using a special stock number and the special stock indicator K. The special stock number for consignment stock is the same as the supplier (vendor) number.

3. Project Stock (Q)

Material which is held in the warehouse for the completion of a project. For project stock, the system checks to see whether a corresponding master record exists.

(48)

In WM, it is important to know what quantity of a stock is in a particular storage bin, but also its status and whether or not it is available. Stock in the warehouse is categorized in WM as follows:

1. Available Stock

Unrestricted-use stock that is physically located in the warehouse, valuated, and not subject to any kind of usage restrictions. User can carry out all stock movements for this stock to include stock transfers, put away and picking.

2. Inspection Stock

This stock carries the stock category “Q” to indicate that it is in quality inspection. Stock in quality inspection has been valuated but does not count as unrestricted-use stock. The Quality Management inspection data in the QM view of the material master determines whether a percentage of stock is to be designated as inspection stock when it is received in the warehouse. Once this stock has been inspected and a usage decision has been made, User carry out a transfer posting in the Inventory Management component and subsequent Posting Change in WM to remove the category Q, thus converting it to available stock.

3. Blocked Stock

In IM it is possible to designate goods as blocked stock. These materials are a company's own stock that should not be used. Stock can be blocked, for example, because it has been damaged and for various other reasons. This stock is displayed in WM with a stock category of “S”. This stock is processed in exactly the same manner as inspection stock.

4. Blocked Stock Returns

When delivered goods are returned by a customer, they are first posted in the system to blocked stock returns” with a stock category of “R”. This stock is neither valuated nor is it considered to be unrestricted-use stock. It is possible store this stock in the warehouse. User must carry out a posting change to return it to available stock.

Status of Stock in the Warehouse

When goods arrive in the warehouse, they are usually received in the Goods Receipt Area (GR Area) near the receiving dock. Later, they are transferred using a transfer order to Under Quarantine within the warehouse. In some cases, goods can moved directly to fixed bins.

During the period of time when move orders have been created for the movement of goods between the various storage types that have not been fully processed, two availability statuses exist for this stock which has not yet been moved. When warehouse evaluation lists are displayed for this material, these goods appear on the display lists under the following three headers:

(49)

This designator usually appears at the top of many stock display lists. This is the total quantity of material quants stored in the warehouse that does not include quantities for planned put away and picks. For the display of materials in a bin, the total quantity in each storage bin is also displayed.

2. Stock Placement

This column designator appears in some stock lists. The system has created a transfer order for this stock to move it from one storage bin to another. It has been marked for put away (storage) in the warehouse.

3. Stock Removal

This is also a column designator that appears in some stock lists. A transfer order has been created to pick this stock from a storage bin in the warehouse. In most cases, this stock will be transferred to a storage bin in the goods issue area.

4.2

Put away and Picking Strategies

Put away and picking strategies are used in Warehouse Management system to optimize the storage / removal of goods in the warehouse.

For inbound movements, in conjunction with controls entered in the material master record, the put away strategies assist the WM system to utilize the available warehouse capacity, automatically assigning optimum locations for goods received in the warehouse. For outbound movements, the system uses similar user-defined controls to execute the appropriate picking strategy to assign the best picking location. If user decides to manually process certain stock movements, user can change source and destination storage bins that are automatically proposed by the system.

When the system creates transfer orders to move goods into or out of the warehouse, user does not have to intervene when it comes to finding storage bins. This guarantees that stock movements are processed quickly and consistently.

For SPD, BLD, QLS, ODF, SFF and GRL plantsthe following strategies are finalized:

1. Put away strategy: The Addition to existing stock (I) strategy will be followed for placing the

materials in the warehouse. The default location for a material will be identified in each storage area for the materials. As the warehouse is divided into many storage areas as explained above, a default location will be identified and same will be maintained in material master for the combination of material – storage area in each warehouse. With this strategy, during the Transfer order (TO) against goods receipt (GR) the default location will be captured which is maintained in material master during the first TO transaction. Materials can be placed other than the default location. If user change the material location other than default location, for the subsequent TO creation system will pick the material bin based on the last placement / TO.

(50)

2. Picking strategy: FEFO for Raw materials and FIFO principle for packing materials will be

followed for the removal of material from the storage bins.

Forms and reports required

All report requirements is fulfilled by standard SAP reports, Layouts has to be finalized by Strides at Realization phase.

Standard reports in SAP:

Transaction Code Creating the storage bin LS01N

Change / display storage bin LS02N / LS03N Empty Bins LS04

List of Empty Storage Bins LX01 List of Fixed Storage Bins LX29 Capacity load utilization LX04 Stock per Material LS24 Bin stock per material LS25 Total Stock per Material LS26 Stock per storage unit LS27 WM stock for all materials Lx02 SLED Control List LX27 Display Quant LS23

(51)

Warehouse Management Process Components

5.1

Transfer requirement (TR)

Transfer requirements are used to plan and initiate stock movements. They represent an existing requirement that goods in the warehouse need to be moved.

By differentiating between the planning and execution of a goods movement, user can recognize immediately whether a goods movement needs to be still executed (transfer requirement is open), is currently being executed (transfer order is created), or is completed (transfer order is confirmed).

Use

On the one hand, transfer requirements are used to pass on information on goods movements that are posted in Inventory Management (MM-IM) to the Warehouse Management System (WMS). User can, however, also use transfer requirements for the following purposes:

™ To initiate goods movements in WMS

™ To initiate material replenishment for production storage bins in the production supply areas using the Production Planning (PP) component

™ To call up transfer requirement reports in order to get an overview of all pending goods Movements.

On the basis of existing transfer requirements, the Warehouse Management System creates transfer orders, which, in turn, serve to execute the physical goods movements in the warehouse.

The system updates the transfer requirement

™ When user create, confirm or cancel a transfer order

™ When user cancel a goods receipt or goods issue posting in Inventory Management (MM-IM) before the respective transfer order was generated in the Warehouse Management System (WMS).

In this case, the system automatically reduces the transfer requirement quantity by the quantity to be canceled, or it deletes the transfer requirement altogether if the entire requirement quantity is to be canceled.

(52)

A transfer requirement consists of a transfer requirement header with general information and one or several transfer requirement items with material information.

The transfer requirement contains all the necessary information on a planned goods movement. ™ What should be moved?

™ Which quantity should be moved? ™ When should it be moved?

™ The planning date is important for further automatic processing. ™ Which transfer type is the basis of the goods movement?

Each goods movement in the warehouse is classified by a transfer type indicator. This key differentiates between:

™ A stock put away ™ A stock pick ™ A stock transfer ™ Why is it to be moved?

™ Was the transfer order created as a result of a purchase order or a Process order, or was it created manually?

Transfer requirements can be created:

1) Automatically by posting a goods movement in Inventory Management

2) Automatically by requesting materials using the Production Planning system

3) Manually using WM

Transfer requirements can be created:

With reference:

™ to a material document to move stock into or out of the warehouse ™ to a Process order to supply required materials to a production supply area

Without reference:

™ to move stock from one bin to another in the warehouse ™ to request crate parts and release order parts to replenish ™ their assigned storage bins in production supply areas ™ to initiate the replenishment of fixed bins in WM

(53)

A transfer requirement is updated by the system

1) During the creation, confirmation or cancellation of transfer order: Once user confirmed the corresponding transfer order, the system updates the field for the open transfer order items in the transfer requirement. When the entire quantity of a transfer requirement has been processed by a transfer order, that is, all items have been processed; the system sets the Header status to E, meaning that the transfer requirement is completed.

2) When user cancels a goods receipt posting or a goods issue posting in Inventory Management. Sometimes when a goods receipt or goods issue posting is canceled in IM, an open transfer requirement exists for the quantity being canceled. This can happen if the goods have not yet been transferred in WM, that is, a transfer order has not been created. In this case, the system automatically determines if a corresponding transfer requirement exists. If it finds one, the system reduces the quantity in the transfer requirement by the quantity being canceled or deletes the transfer requirement if the entire quantity is to be canceled.

Automatic creation of transfer requirements

Depending on the type of movement, transfer requirements are normally created automatically as a result of a transaction in another SAP component. The IM posting (for goods receipts, goods issues and stock transfers) generates most transfer requirements automatically. For material staging to production through the production planning (PP) interface, user can create transfer requirements by simply releasing the Process order. User can also create transfer requirements manually using a transaction that was developed for that purpose.

When a goods receipt for a purchase order is posted in IM, the system automatically generates a transfer requirement for the put away. In this case, the goods are to be moved from the goods receipt area into the warehouse.

For a goods issue to a cost center or Process order, the transfer requirement contains an indicator for stock removal. In this case, the goods are to be moved from the warehouse into the goods issue area. Transfer requirements can be created with or without reference to other system documents.

Manual creation of TR

For goods movements such as internal movements, usercan also create transfer requirements within WM

manually. The following cases, for example, allow for manual creation of transfer requirements:

1) Goods issue for a cost center

2) Manual supplies to production supply areas for pick parts 3) Replenishment for fixed bins in WM

References

Related documents

Keywords: Khulna Metropolitan City, Household survey, Travel behavior, Trip Distribution Models, Trip Generation

Our security case diagram is derived from the information provided by the list (refer to Table 1) of the most common security vulnerabilities that are often encountered by corporate

The system creates a new client engagement, populates the engagement with SMART Start content, opens the engagement to the first planning form in the engagement, and places

Create DataSets & Control Blocks Configure GOOSE & Data Reporting Connect to Live IEDs.. Monitor & Troubleshoot Messages Perform complex GOOSE Testing Initiate

Architecture (B. hr.) follows the prerequisite 4-Year Bachelor of Arts in Architecture (B.A. Arch degree is a NAAB accredited professional degree. Students who earn the 4-Year B.A.

In the area of ST-3 (bilateral) small cups were used for stationary cupping and the suction was not strong nor was it kept for a longer period (5 minutes only) to preclude

Unique classicaon schemes may be created, but will not be aailable as a territory dimension in Oracle Sales Cloud.. Oracle

XXX XXX XXX XXX XXX XXX XXX XXX XXXX XXX XXX XXX XXX XXX XXX XXX XXX XXXX.. The asset has a total life of 10 years with residual value of £100. As per the last