1 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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Work in Process Batches (WIP Batch) Dr. Uwe Dittes ......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
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1
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.
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.
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.
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
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.
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.
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.
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.
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.
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
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.
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.
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.
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.
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.
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.
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..
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.
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