EWM110 Sample

EWM110Extended Warehouse Management

Customizing

SAP ERP

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Participant HandbookCourse Version: 81Course Duration: 5 Day(s)Material Number: 50091421

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Copyright © 2008 SAP AG. All rights reserved.

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About This HandbookThis handbook is intended to complement the instructor-led presentation of thiscourse, and serve as a source of reference. It is not suitable for self-study.

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2008 © 2008 SAP AG. All rights reserved. iii


About This Handbook EWM110

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iv © 2008 SAP AG. All rights reserved. 2008


Contents

Course Overview .... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . vii

Course Goals. . . . . . . . . .. . . . . . . . . . .. . . . . . . . . . .. . . . . . . . . . .. . . . . . . . . . .. . . . . . . . . . .. . . . . . . . . .. . . . . .viiCourse Objectives . . . .. . . . . . . . . . .. . . . . . . . . . .. . . . . . . . . . .. . . . . . . . . . .. . . . . . . . . . .. . . . . . . . . .. . . . . .vii

Unit 1: The Extended Warehouse Management System Environment... . . . . . . . . . .1

Extended Warehouse Management Environment.. . . . . . . . . . .. . . . . . . . . .. . . . . . . . . . .. . . . . . .2

Unit 2: Integration ... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27

Basic ERP and EWM Integration . . . . . . . . .. . . . . . . . . . .. . . . . . . . . . .. . . . . . . . . .. . . . . . . . . . .. . . . . 29Delivery Document Integration.. . . . . . . . . . .. . . . . . . . . . .. . . . . . . . . . .. . . . . . . . . . .. . . . . . . . . .. . . . . 59

Unit 3: Structural Elements and Master Data ... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 97

EWM Structural Elements . . . . . .. . . . . . . . . . .. . . . . . . . . . .. . . . . . . . . . .. . . . . . . . . .. . . . . . . . . . .. . . . . 99APO Core Interface.. .. . . . . . . . . . .. . . . . . . . . . .. . . . . . . . . . .. . . . . . . . . . .. . . . . . . . . . .. . . . . . . . . .. . . .143EWM Master Data . . . .. . . . . . . . . . .. . . . . . . . . . .. . . . . . . . . . .. . . . . . . . . . .. . . . . . . . . . .. . . . . . . . . .. . . .153

Unit 4: Warehouse Process Types... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .181

Warehouse Process Types .. . . .. . . . . . . . . . .. . . . . . . . . . .. . . . . . . . . . .. . . . . . . . . . .. . . . . . . . . .. . . .182

Unit 5: Goods Receipt .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .201

Goods Receipt Process Overview.. . . . . . .. . . . . . . . . . .. . . . . . . . . . .. . . . . . . . . . .. . . . . . . . . .. . . .203Availability Groups for Inventory Management . . . .. . . . . . . . . . .. . . . . . . . . .. . . . . . . . . . .. . . .207Direct Putaway Configuration . .. . . . . . . . . . .. . . . . . . . . . .. . . . . . . . . . .. . . . . . . . . . .. . . . . . . . . .. . . .224Putaway Rules and Strategies .. . . . . . . . . . .. . . . . . . . . . .. . . . . . . . . . .. . . . . . . . . . .. . . . . . . . . .. . . .239Capacity Checking.. . .. . . . . . . . . . .. . . . . . . . . . .. . . . . . . . . . .. . . . . . . . . . .. . . . . . . . . . .. . . . . . . . . .. . . .267

Unit 6: Goods Issue ... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .291

Goods Issue .. . . . . . . . . .. . . . . . . . . . .. . . . . . . . . . .. . . . . . . . . . .. . . . . . . . . . .. . . . . . . . . . .. . . . . . . . . .. . . .292Stock Removal Strategies . . . . . .. . . . . . . . . . .. . . . . . . . . . .. . . . . . . . . . .. . . . . . . . . . .. . . . . . . . . .. . . .310Pick Denial/Handling Differences in Picking .. . . . . .. . . . . . . . . . .. . . . . . . . . . .. . . . . . . . . .. . . .329Batch Management. . .. . . . . . . . . . .. . . . . . . . . . .. . . . . . . . . . .. . . . . . . . . . .. . . . . . . . . . .. . . . . . . . . .. . . .344

Unit 7: Storage Control.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .363

Storage Control Concepts . . . . . .. . . . . . . . . . .. . . . . . . . . . .. . . . . . . . . . .. . . . . . . . . . .. . . . . . . . . .. . . .364Process-oriented Storage Control . . . . . . . .. . . . . . . . . . .. . . . . . . . . . .. . . . . . . . . .. . . . . . . . . . .. . . .368

2008 © 2008 SAP AG. All rights reserved. v


Contents EWM110

Layout-oriented Storage Control. . . . . .. . . . . . . . . . .. . . . . . . . . . .. . . . . . . . . . .. . . . . . . . . . .. . . . . . .385

Unit 8: Warehouse Order Creation ... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .397

Warehouse Order Creation.. . . . . . . . . . .. . . . . . . . . . .. . . . . . . . . . .. . . . . . . . . . .. . . . . . . . . . .. . . . . . .398

Unit 9: Posting Changes, Stock Transfers and Replenishment ... . . . . . . . . . . . . . . .433

Posting Changes and Stock Transfers. . . . . . . . . .. . . . . . . . . . .. . . . . . . . . . .. . . . . . . . . . .. . . . . . .434Ad Hoc Movements and Replenishment . . . . . . .. . . . . . . . . . .. . . . . . . . . . .. . . . . . . . . . .. . . . . . .455

Unit 10: Physical Inventory ... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .479

The Physical Inventory Process .. . . . .. . . . . . . . . . .. . . . . . . . . . .. . . . . . . . . . .. . . . . . . . . . .. . . . . . .480EWM Physical Inventory Procedures .. . . . . . . . . .. . . . . . . . . . .. . . . . . . . . . .. . . . . . . . . . .. . . . . . .485

Unit 11: Slotting and Rearrangement ... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .537

Slotting and Rearrangement . . . . . . . . . .. . . . . . . . . . .. . . . . . . . . . .. . . . . . . . . . .. . . . . . . . . . .. . . . . . .538

Unit 12: Post Processing Framework (PPF)... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .569

Overview of Post Processing Framework (PPF) . . . . . . . . .. . . . . . . . . . .. . . . . . . . . . .. . . . . . .570PPF in Delivery Processing .. . . . . . . . . .. . . . . . . . . . .. . . . . . . . . . .. . . . . . . . . . .. . . . . . . . . . .. . . . . . .575

Unit 13: Labor Management... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .605

Overview, Activation and Master Data . . . . . . . . . .. . . . . . . . . . .. . . . . . . . . . .. . . . . . . . . . .. . . . . . .607Basic Process Configuration . . . . . . . . . .. . . . . . . . . . .. . . . . . . . . . .. . . . . . . . . . .. . . . . . . . . . .. . . . . . .624Engineered Labor Standards .. . . . . . . .. . . . . . . . . . .. . . . . . . . . . .. . . . . . . . . . .. . . . . . . . . . .. . . . . . .648Indirect Labor Tasks .. . . . . . . .. . . . . . . . . . .. . . . . . . . . . .. . . . . . . . . . .. . . . . . . . . . .. . . . . . . . . . .. . . . . . .669

vi © 2008 SAP AG. All rights reserved. 2008


Course OverviewThis course provides coverage of the customizing settings required to set up the basicprocesses of Extended Warehouse Management.

Target Audience

This course is intended for the following audiences:

• Customer Project Team Members

• SAP Consultants

• SAP Business Partners

Course Prerequisites

Required Knowledge

• EWM100 Extended Warehouse Management

Recommended Knowledge

• SCM660 Handling Unit Management

• SCM610 Delivery Processes

Course GoalsThis course will prepare you to:

• Understand and make the necessary customizing settings to interface the ECC6.0 ERP System with an Extended Warehouse Management (EWM) system.

• Set up the structural elements in EWM to represent the physical warehouseenvironment.

• Create the EWM master data required in the business processes: warehouseproduct master, storage bins, packaging specifications, and work centers

• Make the customizing and master data settings required to set up the goodsreceipt, goods issue and transfer posting processes in EWM.

• Configure physical inventory processing.

• Perform slotting and rearrangement

• Implement the Labor Management function

2008 © 2008 SAP AG. All rights reserved. vii


Course Overview EWM110

Course Objectives

After completing this course, you will be able to:

• Make the necessary customizing settings to establish integration of the ERPand EWM systems.

• Create the organizational elements in the EWM system and establish the requiredrelationships between them.

• Create storage bin master data using a template.

• Create and use packaging specifications.

• Understand the delivery document integration using delivery types and itemcategories.

• Understand the role and basic configuration of warehouse process types.

• Implement putaway and removal strategies.

• Make the settings necessary for the integration of the ERP InventoryManagement with EWM stocks.

• Configure Process and layout-oriented storage control.

• Configure Warehouse Order Creation

• Execute physical inventory at the storage bin level.

• Understand and use the Post Processing Framework (PPF).

• Perform the basic customizing for slotting.

• Activate, configure and use the Labor Management function in EWM.

viii © 2008 SAP AG. All rights reserved. 2008


Unit 1The Extended Warehouse Management

System Environment

Unit OverviewIn most implementations, EWM will be run as a de-centralized system, therefore it isimportant to understand the basic environment in which EWM will be deployed. Inaddition to the deployment options, it is important to know the key EWM functionssupported by the application as well as the various delivery documents used as themeans for transferring data between the ERP system and the EWM system.

Unit ObjectivesAfter completing this unit, you will be able to:

• Describe the EWM deployment options.

• Name the major functions supported by EWM.

• List the delivery documents used to transfer data between the ERP system andthe EWM system.

Unit ContentsLesson: Extended Warehouse Management Environment . . . .. . . . . . . . . .. . . . . . . .2

Exercise 1: EWM Document Review Using the EWM WarehouseManagement Monitor . . . . . . . . . .. . . . . . . . . . .. . . . . . . . . . .. . . . . . . . . . .. . . . . . . . . . .. . . . . 15

2008 © 2008 SAP AG. All rights reserved. 1


Unit 1: The Extended Warehouse Management System Environment EWM110

Lesson: Extended Warehouse Management Environment

Lesson OverviewThis course represents an extension of the basic concepts, processes and functionslearned in EWM100 to include the configuration of the core functions in ExtendedWarehouse Management (EWM) system. Before you start your learning of theconfiguration activities of EWM it will be helpful to review some of the basics learnedin EWM100.

Lesson ObjectivesAfter completing this lesson, you will be able to:

• Describe the EWM deployment options.

• Name the major functions supported by EWM.

• List the delivery documents used to transfer data between the ERP system andthe EWM system.

Business ExampleTo prepare for the implementation of the Extended Warehouse Management (EWM)system and the configuration of the system, certain basic concepts must be learned.

System LandscapeExtended Warehouse Management is designed to run as a de-centralized system. It isconsidered an application in the SCM server landscape, although it can be deployed inthe ERP server. We shall explore this deployment option later in this lesson. First, wewill review the “standard” deployment option in which EWM is a component in theSCM 2007 server landscape. This deployment option is shown in the figure below.



EWM110 Lesson: Extended Warehouse Management Environment

Figure 1: EWM Deployment Options

Although EWM in SCM 2007 shares the same server as the other SCM applicationssuch as APO and Event Management, it is a standalone application. In fact, if due toperformance considerations, EWM can be run in its own SCM server environment.SAP recommends that EWM not run in the same SCM server as a production planningapplication such as the APO Demand planning and Production Planning/DetailScheduling. It is important to note that in it's de-centralized deployment, EWM mustrun in a SCM server environment.

Although EWM is a self-contained application, it does require integration with anERP system for master and transaction data. Use of certain functions or features inEWM such as entitlement processing, slotting and availability checking may requirean interface to other SAP applications/systems such as CRM, Global ATP in APO andService Parts Planning in APO.

In the SCM 2007 release of EWM, the ability to run EWM in a centralized modewithin the SAP ECC 6.0 became available. In addition, EWM 2005 can be supportedfrom the SAP R/3 4.6C through the ECC 5.0 releases with the application of Servicepack 06 (SP06). However, with EWM 2007 it is not necessary to to use SP06.




Figure 2: SP06 For Older Releases

There are some functions that were introduced in EWM 2007, such as batch selectionand kit-to-stock, require ECC 6.0 EhP 3. It is advised that you review the EWMrelease notes for the EWM 2007 release to determine the functions that require ECC6.0 EhP 3.

Figure 3: EWM 2007 Current Release




EWM Functions and ProcessesThe various EWM functions can be grouped into processes as shown in the illustrationbelow.

Figure 4: EWM Processes

At the core of the Inbound Processes is the goods receipt process that includes thefunctionality necessary to direct the movement of products from the warehouse door totheir final destination bins. Based on configuration settings and master data, productscan be putaway in an optimal fashion. Use of the Slotting and Rearrangement functioncan be used as an integral part of the putaway optimization process.

During slotting, a storage concept is automatically determined for a product. Thesystem determines the underlying storage parameters that are relevant for putawayon the basis of product data, requirement data, and packaging data. Rearrangementis used to optimize the arrangement of your products in the warehouse by movingstock such as fast-moving items to the relevant optimal storage bin as determinedby the slotting process.

Yard Management can be used to monitor and manage vehicles (Transportation Units)that arrive to deliver products to the warehouse. Although described as part of theInbound Process, Yard Management can be used to also manage Transportation Units(TU's) that arrive to pick up orders to be delivered to customers or other companywarehouses.




Materials that are being received into the warehouse may require quality-relatedinspections. These inspections can be managed using the EWM Quality Inspectionfunction through the use of the Quality Inspection Engine (QIE). Quality inspectiondocuments are created for the products to be inspected and the results of theinspections can be posted against them.

Outbound Processes represent the second of the major EWM processes. Within theOutbound Processes, goods issue represents the pick, pack, staging and loading ofproducts from the warehouse. The remaining processes in the Outbound processessupport the goods issue process. Using the Wave Management function you canuse EWM to combine items or split items from warehouse requests for outbounddeliveries into waves. These waves must be picked and processed at roughly the sametime. Waves can be created manually or automatically in EWM.

In cross docking you transport the products or HU's from goods receipt to goods issuewithout putaway occurring in between. In the case of push deployment (PD) andpick from goods receipt (PFGR), you start by working with a standard goods receiptprocess. Transportation cross-docking (TCD) supports the transportation of handlingunits (HUs) across different distribution centers/warehouses to the final destination.If the final destination is a customer site, a sales order in SAP ERP or CRM formsthe basis for TCD. However, TCD can also be used to support the movement of HU'sbetween your warehouses. In this case, a stock transfer order forms the basis for TCD.

Typical Value Added Services (VAS) activities performed in warehouses/distributioncenters are assembling products, packing products, labeling, or kitting. Although,described here as an Outbound Process, a value added service can be performed as partof an inbound or an outbound process. VAS activities are managed in EWM underthe control of a VAS order. The VAS order defines which product processing must beperformed by warehouse employees in the work centers, for example. You can alsouse a VAS order in the goods issue process to assemble kits for your customers, and topack them on a customer-specific basis using this VAS order.

Packing in the Outbound processes generally involves the removal of stock from astorage bin and placing it into a pick handling unit (HU). Depending on your packingrequirements, the pick HU may be taken to a packing work center where the productsin the pick HU are packed further into other HU's for shipping or repacked into otherHU's.

Replenishment control can be used to re-stock a picking area in accordance with thedemand for products that are picked in this area. There are several replenishmentstrategies that can be used to direct the replenishment process. Data that can be usedto determine replenishment stocks can come from slotting, open warehouse requests,and can be entered manually.




The functions in Environmental Health and Safety (EH & S) provide support for theproper handling and storage of hazardous substances in the warehouse. In addition,these services can help insure that goods are transported in accordance with the variousgovernmental regulations. The following functions are available in EH & S service:

• Phrase management - standard EH & S texts can be entered in the form ofphrases. These texts can be printed, or supplied as output, for the various EWMand transportation documents.

• Hazardous substance master - key characteristics required for performinghazardous material checks prior to storage and that can be used to direct theproper putaway of hazardous substances.

• Inventory list of hazardous substances for the fire department - This configurablelist provides product storage and hazardous substance data commonly requiredby fire departments.

• Dangerous goods management - in this function all hazardous and dangerousgoods relevant data can be entered and used to provide dangerous goods checks.

The hazardous substances data used in the EH & S Services function is obtained byintegration with the EH & S application in the SAP ERP system.

The EWM Warehousing and Storage Processes include the support of handling unitsin all of the warehouse processes where products must be moved using handling units.An example of this requirement is in the use or EWM process-oriented storage controlthat insures that product movements occur in the proper sequence in the warehouse.Support of mobile data entry/scanning devices (RF) is an integral function in EWMand can be used for all warehouse processes. Integrated with the RF functionality isthe resource management function that is used to link warehouse resources, peopleand material handling equipment, to the RF environment to insure that the properresources are assigned to a warehouse task.

Support of Radio Frequency Identification (RFID) tags is also a key function in EWM.Use of RFID tags with the SAP AutoID Infrastructure (AII) component is possiblefor inbound, outbound and internal product movements. For warehouses that haveautomated storage/retrieval systems (AS/RS), EWM provides the Material FlowSystem (MFS) that can be used to interface these systems with EWM.

Evaluation & Planning processes in EWM consist of various monitoring tools and thelabor management function. The central monitoring function for all EWM processesand master data is the Warehouse Management Monitor, or simply, the “warehousemonitor”. Contained within the warehouse monitor is the ability to display warehouserequest, warehouse task and warehouse order document data. In addition, stock relateddata form the EWM storage bins can be displayed. Built into the warehouse monitoris an alert monitoring function in which various EWM exceptions can be monitored.



Documents

EWM110 Sample