work in process batches (wip batch) dr. uwe dittes ......wip batch a_1 wip batch a_2 wip batch a_3...

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internal

Work in Process Batches (WIP Batch)

Dr. Uwe Dittes, Manufacturing Development SAP AG Jürgen Wettengl, ASM Solution Management SAP AG

15. September 2008

SESSION CODE: MFG 0903

Good Afternoon ladies and gentlemen.My name is Juergen Wettengl. Together with my colleague Uwe Dittes we would like to give you an overview about the new sap manufacturing ERP feature “Work in Process Batches”.Firstly let us introduce ourselves.My name is Juergen Wettengl. I work as a solution manager. I have been working for SAP since 1994.Before I worked for a german company as a project manager for production planning and manufacturing execution.Uwe, would you please introduce yourself.If you do not mind. We should leave questions to the end.

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© SAP 2008 / internal

Objective and Learning Points

What you will learn from this session:

1. Understand the enhancement “Work in Process Batches”

2. Learn the benefits of using “Work in Process Batches” functionality – and how YOU can find out what's is in for your company !

3. Examples on how the functionality can be used

4. Outlook on new enhancements planned in “Work in Process Batches”functionality in future releases

What can you learn from ths session ?You will get information about the features and functions of the work in process batchfunctionality.We would like to give you information how to benefit from the solution based on workingexamples.We are very interested to get your input influencing the functionality.

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© SAP 2008 / internal© SAP 2008 / Page 3

Agenda

New functionality “ WIP Batches” / Example4

How to activate ?- SAP Enhancement Packages -

Definition and Usage2

Business Case3

AGENDA

Outlook5

1

Potential Benefits and Summary6

We would like to start giving you information how to activate the new functionality using enhancement packages.Than we would like to start with the definition of a work in process batches and for what you can use thisfunctionality.So far no more theory. Based on a business case the main part of the presentation are working examples how to use the new functionality.In the last two topics we will give an outlook of the enhancements planned and how you can benefit.

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SAP Enhancement Package (EHP) - General

Technical basis: SAP ECC 6.00 (ERP 2005) -> „stable core“

Implementation of EHP doesn‘t change the system behaviour

Activation of new functionality by switching on corresponding business function

Business Functions do have detailed documentation

Business Functions have test cases that are shipped also

Adaptivness („Fine tuning“) via Customizing

Please note:

„Deactivation of an activated business function not possible“

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Enterprise Business Functions (TC SPRO)

Business Fuction Documentation Release

InformationTest Case

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SAP Enhancement Package – Activation of WIP Batch Functionality

Activate customizing for „ WIP Batch functionality “ per business function LOG_PP_WIP_BATCH

Start Customizing transaction (OMCWB) to activate the functionality:Check: Process Batch functionality active? (data migration required)In case WIP functionality is activated by Customizing no reversal is possible

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Agenda




Business Case3

AGENDA

Outlook5

1


What is the definition of work in process batches and for what can you use this new functionality ????

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Definition

Production Order 70001:

Cutting Forging Heat Treatment

WIP Batch A_1 WIP Batch A_2 WIP Batch A_3

The work in process batch (WIP Batch) is a partial quantity of the production- or process order header material confirmed per operation or phase.

WIP Batches represent an intermediate status of a product which is in production.

Alternatively a reference material can be used instead of the header material of the production- or process order.

Before EHP4 it was not possible to confirm batches ( a partial quantity of a material) per operation and phase.

It was only possible to confirm batches with the goods receipt of the manufacturing order. There was no work in process information on batch level available within the manufacturing order.

The WIP Batch is a partial quantity of the production- or process order header material.

You can confirm/create WIP Batches while confirming an operation or phase.

WIP Batches represent an intermediate status of a product. Optional it is possible to classify WIP Batches using batch characteristics.

Alternatively instead of header material of the manufacturing order you can use a reference material, which can be allocated in the material master of the header material of the order.

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Example: Work in Process Batches (WIP batches)

Goods issue Stock Batch R1111

Production Order

Cutting

Forging

Heat TreatmentOven 1

WIP_S_B1 WIP_S_B2 WIP_S_B3

WIP_M_C1 WIP_U_C2

WIP_O_D1 WIP_O_D2

Oven 2

Goods Receipt

Length: 6 meter

Length: 2 meter

Length: 2 meter

Quality: A

Length: 2 meter

Quality: A

Oven: 1

Length: 2 meter

Quality: B

Oven: 2

Length: 2 meter

Quality: B

Oven: 2

Inventory Batch GR_FIN_1

Length: 2 meter

Quality: A

Oven: 1

Create with reference

Inventory

Inventory

WIP Batches

Split

Merge

Length: 2 meter

Quality: B

Split

WIP_A Length: 6 meter


Based on this example we will present the new functionality. We are going to show it step by step also presenting a system example per step.

We will create a production order with 3 operations: Cutting, Forging and Heat treatment and will confirm these using work in process batches.

In the example we will split WIP Batches in operation cutting.

And merge WIP Batches in operation forging.

WIP batches can be classified and depending on the operation the characteristics are used to document the production.

A WIP Batch is a special type of a batch and exist only inside a manufacturing order.

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Usage

Work in process tracking on operation / phase level of a production or process order

Quantity based work in process stock analysis

Documentation of the actual characteristics / status of a product which is in production

Subcontracting to send work in process batches to subcontractors

For what can you use WIP batches ?You can use WIP Batches for tracking of the work in process. A WIP Batch where used list per manufacturing order is available which determines how a WIP batch was created and used in various operations of a manufacturing order.

While confirming an operation or phase you can create a goods receipt for a WIP Batch quantity.

So you can analyze the work in process stock for example using the batch information cockpit.

Using the classification system you can document the actual characteristics and status of a WIP Batch.

If you have to support subcontracting operations within a manufacturing order you can use WIP batches to send the work in process parts to a subcontractor.

For each of this usages we will show a system example in this presentation.

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Agenda




Business Case3

AGENDA

Outlook5

1


What is the overall business case behind this functionality ?

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Business Case WIP Batches

Create Production or Process Order

Adopt Routing /BOM or Recipe

Availability Check

Release Order

Material StagingProduction Process

Confirm Operation /Phase

Create WIP BatchValuate Characteristics

Allocate Goods issue

Goods Receipt

„Batch AssignmentWIP Batch to

Inventory Batch“ 1

2

3

4

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7

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Based on a planned order coming from the MRP run a production or process order will be created adopting the recipe or the BOM and routing.

The user checks the material availability and release the order.

The material staging will be executed and the production process starts.

While confirming the operation or phase the user creates the WIP Batches, valuate the batch characteristics and allocate the goods issue consumed for the WIP Batch created.

While confirming the last operation of the manufacturing order the user assigns the WIP batch created in the last operation to a normal stock batch and creates the goods receipt into the warehouse.

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Agenda




Business Case3

AGENDA

Outlook5

1


In this chapter we would like to show you the functionality based on system examples.

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Confirmation with WIP Batches

Call confirmation for production or process

order

Create WIP Batches and assign predecessor batch

Post goods issue

Confirm quantities and activitiesProcess WIP

Batches

1

2

3

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7

8

Assign goods receipt batch

Post goods receipt

9Enter final confirmation

for production or process order

While confirming operations or phases of a manufacturing order the following steps shall be executed. For process orders and production orders the functionality is the same.

First the user calls the transaction “time ticket confirmation”.

2.Confirming the operation the user create the WIP Batches and assign predecessor batches, post the goods issue of the used components and confirm the activities like the setup, machine or labor time.

It is possible to process the WIP Batches e.g. using provided functionality for split and merge.

In the last operation of an order the wip batch will be assigned to a goods receipt (Stock) batch.

The user creates the goods receipt and can set the status final confirmation.

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Example: Work in Process Batches (WIP Batches)


Production Order

Cutting

Forging

Heat Treatment

Goods Receipt

Length: 6 meter Inventory

Inventory

WIP Batches

In the first step of the example we will create a production order with the three operations Cutting, Forging and Heat Treatment.

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Required Master Data Settings

batch managed materialoriginal batch managementallowed

confirmation profile forWIP batches

Adopt user profile to enable WIP batch creation during confirmationsParameter ID: CORUPROF Parameter value: WIPBATCH

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Production Order for WIP Material

We would like to produce 6 meter of the material WIP Finish.

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Production Order – Operations & Components

Usage of different work

centers

The operations will be executed on different work centers.

We will consume the component COMP_A, 6 meter from stock.

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Create WIP Batches

WIP batches are created when order confirmations are executedNo WIP batch creation using batch management transaction MSC1N

You can create WIP batcheswithout reference with reference to an input batchwith reference to an order item

Depending on which option you choose, you can adopt characteristic values of the input batch or the order item in the WIP batch

While confirming operations or phases with the time ticket confirmation the user can create Work in Process Batches:

Without reference,

With reference to an input batch from a component,

Or with reference to an order item.

Depending on the option chosed, you can adopt / derive batch characteristic values of the input batch.

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Call Confirmation for Production Orders or Process Order

For production orders, choose Logistics → Production → Shop Floor Control →Confirmation → Enter → For Operation → Time Ticket

For process orders, choose Logistics → Production - Process → Process Order →Confirmation → Enter for Phase → Time Ticket

The WIP batch functionality for process orders and for production orders is the same.

But different transactions for time ticket confirmations have to be called depending on production orders or process orders are used.

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Example: Work in Process Batches (WIP Batches)


Production Order

Cutting

Forging

Heat Treatment

Goods Receipt

Length: 6 meter


Inventory

Inventory

WIP Batches


Based on this example we will present the new functionality. We are going to show it step by step also presenting a system example per step.

We will create a production order with 3 operations: Cutting, Forging and Heat treatment and will confirm these using work in process batches.

In the example we will split WIP Batches in operation cutting.

And merge WIP Batches in operation forging.

WIP batches can be classified and depending on the operation the characteristics are used to document the production.

A WIP Batch is a special type of a batch and exist only inside a manufacturing order.

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Create WIP Batch with Reference to Component Batch

While confirming the operation “cutting” component ‘Comp_A’, batch R1111 is consumed.

Clicking on the button “create Work in Process Batch” leads to WIP batch ‘WIP_A’ with reference to component batch R1111.

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Classify Characteristics of WIP Batch

Status message

Classification of

batch characteristics

Original batch material

The characteristic value “length” is assigned to WIP Batch WIP_A.

Derived from the consumed input batch R1111 of the component comp_a.

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Post Goods Receipt for WIP Batch

Creation of goods receipt with movement type 521 (goods receipt to blocked stock).

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Batch Master for WIP Batch – Batch Type

Automatically with the confirmation a batch master is created with the batch type “Work in process batch”.We have used the reference material WIP Finish Ref for the WORK in Process Batches.The reference material is allocated to the header material of the order maintained in the material master.

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Batch Master for WIP Batch – Classification and Stock Overview

The batch master is classified with the characteristic “length” derived from the component batch.

By using MM transactions and batch information cockpit (BIC) it is possible to get a quick overview about the available stock.

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Split WIP Batches


Production Order

Cutting

Forging

Heat Treatment


Goods Receipt

Length: 6 meter

Length: 2 meter


Inventory

Inventory

WIP Batches

Split Split


While confirming the operation cutting work in process batch WIP_A is split in three wipbatches.

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Split WIP Batches

We mark the item of WIP Batch WIP_A1 and click the button batch split.

In this case we will split one WIP batch in 3 WIP batches.

We cut the the wip batch WIP_A1 with the length of 6 meter and created three batches with the length of 2 meter.

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Batch Where Used List for WIP Batches

Analysis of the WIP batch usage can be done using the WIP batch where-used list (via order menu)The situation after confirming the operation cutting is:- WIP batch WIP_A was created with reference to the stock batch R1111.- WIP batch WIP_A was split in three different WIP batches WIP_S_B1, WIP_S_B2, and WIP_S_B3

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Stock Overview of WIP Batches (TC MMBE)

On stock there are three batches with a length of 2 meter each.

The stock for the predecessor batch A is reduced automatically.

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Merge WIP Batches


Production Order

Cutting

Forging

Heat Treatment


WIP_M_C1 WIP_U_C2

Goods Receipt

Length: 6 meter

Length: 2 meter

Length: 2 meter

Quality: A


Inventory

Inventory

WIP Batches

Split

Merge

Length: 2 meter

Quality: B

Split


While confirming the operation ‘Forging’ WIP batches are merged.In this example the two WIP batches WIP_S_B1 and WIP_S_B2 are merged to create WIP batch WIP_S_C1.Characteristics for the batch WIP_M_C1 and WIP_U_C2 are valuated. Both batches have a length of 2 meter, but obtain different quality codes.

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Merge WIP Batches

WIP batches WIP_S_B1 & WIP_S_B2 are marked.

Then button ‘Merge WIP batches’ is clicked.

WIP batch WIP_M_C1 is created.

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Classification of Merged WIP Batch

Merged WIP batch WIP_M_C1

Maintenance of batch characteristics: Batch WIP_M_C1 got a quality code “A”.

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Batch Where-Used List after Split & Merge of WIP Batches

After confirming the second operation the WIP batch where-used list looks like this.

The batch split and the batch merge is documented.

After the operation ‘Forging’ there exist WIP batches WIP_M_C1 and WIP_U_C2 on stock.

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WIP Batches after Operation “Heat Treatment“


Production Order

Cutting

Forging


WIP_B1 WIP_ B2 WIP_ B3

WIP_M_C1 WIP_U_C2

WIP_O_D1 WIP_O_D2

Oven 2

Goods Receipt

Length: 6 meter

Length: 2 meter

Length: 2 meter

Quality: A

Length: 2 meter

Quality: A

Oven: 1

Length: 2 meter

Quality: B

Oven: 2


Inventory

Inventory

WIP Batches

Split

Merge

Length: 2 meter

Quality: B

Split


Operation ‘Heat treatment’ is confirmed, WIP batches WIP_O_D1 and WIP_O_D2 are created.

Using the batch characteristics it is documented that Oven 1 was used to produce batch WIP_O_D1 and oven 2 was used to produce batch WIP_O_D2.

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WIP Batch Where-Used List After Confirmation of Heat Treatment Operation

After confirming the three operations the WIP batch where-used list looks like this.

WIP batches WIP_D1 and WIP_D2 were produced. It is now possible to analyze the WIP batch usage.

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WIP Batches: Assigned Goods Receipts


Production Order

Cutting

Forging



WIP_M_C1 WIP_U_C2

WIP_O_D1 WIP_O_D2

Oven 2

Goods Receipt

Length: 6 meter

Length: 2 meter

Length: 2 meter

Quality: A

Length: 2 meter

Quality: A

Oven: 1

Length: 2 meter

Quality: B

Oven: 2


Inventory

Inventory

WIP Batches

Split

Merge

Length: 2 meter

Quality: B

Split


Length: 2 meter

Quality: B

Oven: 2


Length: 2 meter

Quality: A

Oven: 1


In the last step work in process batches WIP_O_D1 and WIP_O_D2 are delivered to the warehouse creating a goods receipt.

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Creation of Inventory Batch by Goods Receipt of WIP Batch

WIP BatchWIP_O_D1

Inventory BatchGR_FIN_1

The user marks the WIP batch WIP_O_D1 and the item for the goods receipt and clicks on the button ‘Assign Goods Receipt’.

Goods receipt for the batch GR_FIN_1 with movement type 101 will be created.

Characteristic valuation of the WIP batch is transferred to the inventory batch

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Batch Where Used List for Inventory Batch GR_FIN_1

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Batch Where Used List: Involved WIP Batches

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Example: Subcontracting of WIP Batches„Production Order“

If you have to support subcontracting operations within a manufacturing order you can use WIP batches to send the work in process parts to a subcontractor.

In this example the operation 0020 “Assembly Components” shall be outsourced defined in the control key of the operation.

Pressing components and packaging will be done internal.

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Example: Subcontracting of WIP Batches„Components for Operation“

The components COMP_C and COMP_D are allocated to the external operation and have to be provided to the supplier.

together with the work in process parts from the operation “pressing” the operation before.

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Example: Subcontracting of WIP Batches„ Comfirm internal Operation“

First step would be to confirm the internal operation “pressing” and creating the work in process batch P_10 with a quantity of 100 pieces.

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Example: Subcontracting of WIP Batches„ Purchase Order Item“

While creating or releasing the production order a purchase requisition for the external operation “Assembly components” is created and converted in a purchase order to send to the supplier.

In this case the reference material WE_WIP_Finish_REF is used as material identification instead of the order header material.

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Example: Subcontracting of WIP Batches„ Purchase Order Components“

How does the purchase order look like?

For the production on supplier side we have to provide the components COMP_C and COMP_D andThe pressed parts the WIP Batch P_10 created in the internal operation before.

The functionality to create an item for the work in process material is new.

Based on these items the delivery can be created and the work in process batches and the components can be transferred to the supplier.

Optionally you can allocate the batches early in the purchase order or later in the delivery or the goods issue.

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Example: Subcontracting of WIP Batches„ Confirm external Operation“

After the supplier has assembled it is possible to confirm the assembled WIP batch confirming operation 0020.

In the example we create the WIP Batch P_20 100 pieces produced.

And allocate the used component batch 1605 from the components COMP_C and COMP_D confirmed from the supplier.

Using the WIP Batch reference material Finish_Ref we allocate also the usage of WIP Batch P_10 the delivered pressed parts to the supplier.

If you use the supply network collaboration system (SNC) the confirmation of external operations can be triggered automatically.

My colleague Uwe Pfisterer will give you more details about the new features developed for supporting outsourced manufacturing in his presentation tomorrow.

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Example: Subcontracting of WIP Batches„ Batch Where Used List“

In the WIP Batch where used list also confirmations for external operations using WIP batches are considered.

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Agenda




Business Case3

AGENDA

Outlook5

1


Currently the WIP batch tracks the material on a quantity basis only.

We are evaluating how a wip batch can be also valuated.

During the goods receipt posting of a WIP batch a new valuation strategy for material price determination shall be introduced.

With the new valuation strategy the price for the WIP batch will be calculated based on the defined planned costs for the operation the WIP Batch is being created.

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Example: WIP Batches “Stock Valuation“

Goods issueComponent:

Stock Batch R1111

Production Order

Cutting: 50 USD per meter

Forging: 100 USD per meter

Heat Treatment: 200 USD per meter


WIP_M_C1 WIP_U_C2

WIP_O_D1 WIP_O_D2

Goods ReceiptFinished Product:

Length: 6 meter

Length: 2 meter

Length: 2 meter

Quality: A

Length: 2 meter

Quality: A

Oven: 1

Length: 2 meter

Quality: B

Oven: 2

Inventory

Inventory

WIP BatchesLength: 2 meter

Quality: BValue: 400 USD

V: 100 USDV: 100 USDV: 100 USD

V: 200 USD

Value: 800 USD V: 400 USD

Price Determination

?

Length: 2 meter

Quality: B

Oven: 2


Length: 2 meter

Quality: A

Oven: 1


Based on the example shown before the Price determination can look like this variant using the planned costs calculated per operation.

Based on the material costs and activity costs of a production order operation the system can calculate the price to consider per operation.

In this example the price for the WIP Batch after cutting would be 50 USD per meter. After forging 100 USD and after heat treatment 200 USD.

We would like to ask you which variants for the price determination of a wip batch are required in your company.

In this example the price is calculated based on planned costs. Is it e.g. also required to calculate the price for a WIP batch also on a basis of actual costs ??

We are very interested to get your input. In the presentation you can find our E-Mail addresses. Examples would be very helpful for us..

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Agenda




Business Case3

AGENDA

Outlook5

1


What could be the benefit using the WIP batch functionality.

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Potential Benefit

Fulfil legal requirements:“…. requires the maintenance of strict batch traceability through the

manufacturing process from raw material through to finished product.”

Supports defect tracing, call-back activities and regression requirement

Better visibility to reduce the work in process stock

The WIP Batch functionality can help to fulfill legal requirements and requirements from customers to be able to trace a specific batch.

It supports defect tracing ,callback activities and regression requirements.

And last but not least it gives a better visibilty controlling the work in process stock.

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Summary

Definition:The work in process batch (WIP Batch) is a partial quantity of the production- or process order header material confirmed per operation or phase.

WIP Batches represent an intermediate status of a product which is in production.

Alternatively a reference material can be used instead of the header material of the production- or process order.

Usage:

Work in process tracking, work in process stock analyse,

Documentation, Subcontracting

To sum up:Before EHP4 It was only possible to confirm batches with the goods receipt of the manufacturing order.

Within a manufacturing order there was no work in process information on batch level available in the system.

The WIP Batch is a partial quantity with an intermediate status of the production- or process order header material. Alternatively a reference material can be used.

You can confirm/create WIP Batches per operation or phase.

You can use the functionality for Work in process tracking, stock analyse, documentation and supporting the subcontracting processes.

We are very interested to get your input. Please let us know If you have further requirements. Our E-mail adresses you canfind in the next slide.

Thank you very much.Do you have questions ?

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Summary

Availability:

Business Function in SAP ECC 6.0 Enhancement Pack 4 (ECC 6.04)

Contacts:

Dr. Uwe Dittes ( [email protected] )

Jürgen Wettengl ( [email protected] )

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Thank You for Participating !

[SESSION CODE: MFG 0903

Please remember to complete and return your evaluation form following this session.

For ongoing education on this area of focus, visit the Year-Round Community page at www.asug.com/yrc

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work in process batches (wip batch) dr. uwe dittes ......wip batch a_1 wip batch a_2 wip batch a_3...

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