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LOG-MD-005 WM Presentation PDF
LOG-MD-005 WM Presentation PDF
LaGOV
Version 4.00
Updated: 09/22/2008
Agenda
2
Logistics
3
Ground Rules
4
Introduction
Roles
Process Analyst and Functional Consultant (IBM) –
lead and facilitate the discussions and drive design
decisions
Documenter (State Employee) – take detailed notes to
support the formal meeting minutes to be sent by the
Process Analyst to all participants for review and feedback
Team Members (LaGov) – provide additional support for
process discussions, address key integration touch points
Subject Matter Experts – advise team members on the
detailed business process and participate in the decisions
required to design the future state business process
Realization
Preparation
Preparation
Business
Blueprint
Support
Go Live
Project
Final
and
• Strategy & Approach Defined • Development & Unit Testing • Go-Live Support
• Project Team Training • Integration Testing • Performance Tuning
• End-User Training Materials
6
Tentative Project Timeline
May – June 2008 July 2008 August – Dec 2008 January 2009
Project Start-Up
Phased deployment
Blueprint will be
confirmed/updated
before completion
of Blueprint activities!
7
Blueprint Schedule - Tentative
9
Blueprint Objectives
TOPICS TO BE DISCUSSED
WM structure
13
KEY DECISIONS
14
Project Scope
Systems to be Replaced
DOTD
– PIMS (Purchasing Inventory Management System)
DPS
– VENICE
15
AS-IS Process Flow
16
17
18
19
GLOSSARY
20
SAP Glossary
21
SAP Glossary
22
SAP Glossary
Putaway Strategy – A procedure in which the system looks for a suitable bin in a
storage type for stock putaway. A putaway strategy can be defined for each storage
type to search for the next empty bin that guarantees the optimization of warehouse
storage and material flow.
Cycle Counting – A physical inventory procedure in which the materials are
counted at regular intervals during a fiscal year. These intervals, or cycles, depend
on the cycle counting indicator set for the relevant material.
Stock Transport Order – A purchase order used to request or instruct a plant to
transport material from one plant to another (that is, to effect a long distance
physical stock transfer) within the same corporate enterprise. The stock transport
order allows delivery costs incurred as a result of the stock transfer to be charged to
the material transported.
Cross-docking – A procedure for processing goods in a distribution center or
warehouse. The goods are brought directly from goods receipt area to goods issue
without being put away.
One step Process - The goods are moved directly from Goods Receipt (GR)
to Goods Issue (GI)
OR
Two step Process - The goods are first moved to a storage type designated
for cross-docking
23
SAP Glossary
24
SAP Glossary
25
Warehouse Management
26
WM Introduction
Basic WM topics
27
What is WM? - Key Concepts
WM is used to manage complex
MM
warehouse structures (high rack, bulk Materials
Mgmt.
storage, block storage, fixed bin storage,
etc.)
WM is an extension of Inventory
Management (IM) IM
Inventory
Mgmt.
deal of flexibility
28
Integration Concepts
WM FI
Warehouse Financial
Management Accounting
MM CO
Materials Controlling
PP Mgmt. AA
Production
Planning
SAP Asset
Accounting
CS ERP Central EC
Customer Enterprise
Service Controlling
QM Component PS
Quality Project
Mgmt. PM (ECC) 6.0 WF System
Plant
Workflow
Maintenance
HR IS
Industry
Human Solutions
Resources
30
Difference Between Warehouse
Management & Inventory Management
31
Warehouse Management & Inventory Management
32
Warehouse Management and Inventory
Management as per our Current Practice
Purchase DOTD / DPS
Order /
Picking Slip
Inventory
Management (IM)
Inbound Testing Of
Delivery Item
IM Inventory
Updated
Product
Placed in DOTD / DPS Warehouse
Interim WM Receiving Management (WM)
Location Info in
Current
System
Submits
Aisle/Bin
Location
WM
personal
puts Item in
Warehouse
33
Logistics Is More Than WM
35
Basics of Warehouse Management (WM)
Provides the ability to:
– Define and manage multiple
storage bins for a material
– Automate stock placement and
removal based on predefined
strategies
– Check capacity of storage bin
– Perform a confirmation for actual
placement and removal of stock
– Take inventory at the storage bin
level
– Manage hazardous materials
– Allow extensive reporting
capabilities
36
WM Business Process Overview
Placement Removal
(Transfer (Transfer Order)
Order)
Store/Remove
Inventory
37
“Going In” IM Structure
Company
Company
Code
Code0001
0001
(State
(State ofLA)
of LA)
Plant
Plant
A001
A001
(DOA)
(DOA) Department Level
Plant
Plant Agency Level
Plant
Plant
B002
B002 C003
(DPS C003(DOTD
(DOTD
Storage
Storage (DPSMgmt
Mgmt Sec
Location
Location &&Finance ) Sec45)
45)
Finance)
A001
A001 Guiding Principle: If a given
Storage
Storage Storage
Storage organization maintains inventory AND it
Storage
Storage Location
Location Location
Location wants to track the financial costs of that
Location
Location B001
B001 C001
C001 inventory at a given level, then the
organizational level = Plant
A002
A002
Storage
Storage Storage
Storage
Storage
Storage Location
Location Location
Location Note:
Note:Physical
Physicalinventory
inventory
Storage
Storage
Storage
Storage
Location
Location B002
B002 C002
C002 taking
taking (conductingan
(conducting an
Location
Location
Location
Location
A003
A003 inventory and cycle
inventory and cycle
A003
A003
A003
A003 Storage
Storage
Storage Storage
Storage
Storage counting)
counting)takes
takesplace
placeatat
Storage
Storage
Storage Storage
Storage
Storage
Location
Location
Location Location
Location
Location
Location the
theStorage
StorageLocation
Locationlevel!
level!
Location
Location
Location Location
Location
B003
B003
A003 C003
C003
A003
A003
A003
A003 A003
A003
A003
38
How WM Org Structure
Relates to ERP Structure
The company code dictates high-level planning and reporting
Plants are an organizational unit for dividing an enterprise according
to production, procurement, maintenance and materials planning
39
How WM Org Structure
Relates to ERP Structure
Storage locations denote subsets within plants and are a link to
warehouse management
Inventory Company
Management (State of LA)
Plant Plant
(DPS) (DOTD)
Warehouse
Warehouse
(Central Warehouse
Management Warehouse)
40
How WM Org Structure
Relates to ERP Structure
Plant A Plant B
(DPS) (DOTD)
Storage loc Storage loc Storage loc Storage loc Storage loc
A001 A002 A003 B001 B002
Warehouse Warehouse
Two Storage Locations
001 002
are linked to one Some Storage Locations
warehouse, in order to are not linked to any
separate ownership, even warehouse. They
if the materials are stored represent separate areas Storage Type
Storage Type
in the same areas. that are not divided into Storage
004 Type
Storage
001 Type
bins. Storage
005 Type
Storage
002 Type
006
003
Bin CC01
Bin AA01
Bin CC02
Bin AA02
Bin DD01
Bin BB01
41
WM Organizational
Structure
42
WM Organizational Structure
Warehouse
43
WM Organizational Structure
Warehouse
The warehouse ID (number) contains certain attributes for the
site, including unit of measure, material locking logic, etc.
44
WM Organizational Structure
Storage Type
The storage type is a zone and is important for placement
sequence, removal strategies, product mixing rules, etc.
45
WM Organizational Structure
Storage Type
47
WM Organizational Structure
Storage Section
A physical or logical subdivision of the storage type. A number of storage bins can be
grouped together into a storage section (e.g., fast or slow moving sections)
Storage Type
High Rack Bin Area
49
WM Organizational Structure
Storage Bin
Purpose: Smallest addressable unit in the warehouse used to store material
(exact physical location)
Created specifically for a storage type and section
Contains maximum weight and total capacity information for the bin
Can be created in configuration or in application
Created automatically or manually
– Automatic bin creation can create a range of bins with the same naming
format (max 10 characters)
Can change or delete bins in a range or singularly
-01
FF-09
-01
FF-08 1
-0
FF-07-01
FF-06-01
FF-05 1
-0
FF-04
-01
FF-03 1
-0
FF-02-01 1
FF-01 LF-01-0
1 FX-01-0 50
WM Organizational Structure
Picking Areas
Picking areas allow more visibility and splitting logic during the
removal process
Warehouse
Management Warehouse Warehouse
51
WM Organizational Structure
Overview
Plant
0001
Inventory Storage
S.Loc. S.Loc. S.Loc. S.Loc. S.Loc.
Management 0001 0002 0003 0004 0005 Location
Warehouse
Management 001 Warehouse
Storage Bin
52
Action Items / Future Decisions
Warehouse Structure
53
Work Session
54
Company
State of Louisiana
Example of
Central Warehouse
Warehouse Structure for DPS
DEPARTMENT OF PUBLIC SAFETY
GAMING
MANAGEMENT AND MOTOR HIGHWAY STATE TRAINING
LP GAS FIRE MARSHAL LEGAL CONTROL CAFETERIA
FINANCE VEHICLE SAFETY POLICE ACADEMY
BOARD
INFO
Police Supply SHOOTING
SERVICES
RANGE
Warehouse
Warehouse Warehouse
DRIVING
FLEET RANGE
RADIO HQ
MAINT
Warehouse
Warehouse Warehouse
Key: CONFERNCE
FLEET CENTER
PLANT TROOP
A
ETC
Warehouse
Warehouse for
All of DPS
CRIME
Warehouse for LAB
storage location DNA
attached to
Warehouse
Warehouse for
State Police only CRIME
LAB
CRIMINAL
Storage
Locations
Warehouse
55
WM Terms
56
WM Terms
Transfer Requirement
57
WM Terms
Transfer Requirement
What to move?
Quantity to move?
58
WM Terms
Transfer Requirement
Used to plan material movements
59
WM Terms
Transfer Orders
60
WM Terms
Transfer Orders
A material movement document that identifies the
material, source, destination bins and quantities
Material put-away or removal performed through a
transfer order can be confirmed as complete
Except for internal movements, they are created with
reference to other documents (e.g., transfer
requirements, material documents, or delivery note)
Transfer order printouts are used as pick list or put-away
documents and can include bar codes if necessary
Can be created automatically by the system or manually
Strategies can be based on material attributes, the type of
movement, space availability, where other similar
materials are stored, etc
61
WM Terms
Capacity Check
62
Receive Goods Issue Goods
Goods Issue
Goods Receipt Movement
Movement
Interim Storage
(Transfer Requirement)
Interim Storage
Warehouse Movements
Warehouse
63
WM Terms
Movement Types
WM movement type (Goods Receipt) is mapped to a MM movement type (PO
receipt) via a reference movement type
Reference movement types connect material movements moving from the
Inventory Management system to the Warehouse Management system
Movement types can be the same or different in Warehouse Management and
Inventory Management
WM movement types are more generic, whereas IM movement types can be
specific
Movement Description
WM 551 Scrap
551 Scrap
IM
553 Scrap to Sale
STOCK TRANSFER
POSTING CHANGE
65
WM Terms
Storage Unit and Handling Unit
Storage unit
– A temporary unique number (License Plate) that
identifies items packed in a storage container
within a warehouse
Handling unit
– A permanent unique number (License Plate) that
identifies items packed within a storage container
transferred from a warehouse to another location
66
WM Material Master
67
MATERIAL MASTER VIEW
Material Master
Basic Data
Sales Organization Data
Sales General / Plant Data
Sales Text
Purchasing
Purchase Order Text
Storage
MRP 1 and MRP 2
Warehouse Warehouse Management 1
Management Warehouse Management 2
Views Accounting
Costing
Plant / Storage Location Stocks
68
WM Material Master
69
WM Material Master – View 1
Capacity
Usage
For capacity
planning
purposes, how
much room
does this item
occupy?
Can be set to 1.
Allow addn to
stock
Allows more
stock to be
added to a
material
already sitting
in a bin.
Stock Removal & Stock Placement
Recommended
These indicators describe the method that we use to putaway and pick stock. We base these
always active.
on our storage types.
(e.g. A normal product stored in the main rack is 805.
A product stored on the shelf is 802.)
These will always be the same. 70
LE quantity (Logistics Execution) SUT (Storage Unit Type)
This is the number of this material This describes the type of
that make up a FULL pallet. container normally used
This HAS to be set to a value of 1 or for this material.
greater. Values are -
UN = Unit of measure = EA
Storage Bin
This is the name of the bin
that is the FIXED (picking) bin
for this material.
It must be set to a valid bin
that has been created in the
warehouse.
Replenishment Qty
This is the qty of the material
which will move from a high
Max bin quantity rack to a fixed bin when
This is the maximum qty of a material that can fit in it’s replenishing that bin.
fixed bin. This will always be set to the
This will normally be set to slightly higher or the same as same as the LE quantity.
the LE quantity. 71
Material Master Review
72
Action Items / Future Decisions
WM Material Master View
Pallatization Data
73
WM Functionalities
74
How Do Handheld Devices (RF)
Work with SAP?
75
WM Functionality
Batch Picking
76
WM Functionality
Capacity Management
There are several forms of capacity management
– Number of pallets
– Volume of product
– Volume of product and the pallet volume
77
WM Functionality
Container Influence on Strategies
78
WM Functionality
Counting Methods
79
WM Functionality
Reporting
– Warehouse activity
– RF activity
80
WM Functionality
Infostructures
There is some material placement and removal analysis available
This is a zone-
based query of
placements and
removals
81
Review
82
What Does WM Touch?
WM interacts with many modules
Inventory
Management
Sales and
Distribution
Production
Planning
Quality
Management
83
Questions?
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84