Category Archives: EWM

Down the Rabbit Hole with EWM Configuration

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How Far Down Does the Rabbit Hole Go?

After spending a great deal of time organizing EWM configuration screens into an external tool for reference on future projects, I increasingly appreciate how massive the EWM application is. I now have over 700 rows in my spreadsheet, each row representing a configuration screen. This along with my implementation experience highlights to me the importance of limiting scope of EMW projects to something manageable. When compared to a module like SNP, there is just so much more detail to configure. Considering the very limited and simplistic functionality in SAP WM, EWM is its polar opposite. However EWM projects will simply have to take more time and more resources than what WM projects did in the past.

Functionality Overkill and the IMG

The size of the functionality is made even a more significant hurdle due to the inefficient IMG. The IMG serves to encapsulate information in a completely unnecessary way, and the large the functionality, the greater the liability of SAP’s IMG design. I have been wondering recently how much more efficient a configuration spreadsheet would be. The spreadsheet could be coded externally, and then simply uploaded. Multiple line items with the same first cell of the row would simply mean how many items in a particular area would need to be setup. So for instance, to setup four different Storage Types in EWM, three rows on a spreadsheet would be added to the spreadsheet. The master row would simply be copied over three times. A very significant benefit of this is a basic configuration could be copied over from system to system. I have a spreadsheet like this, which I have created for my consulting practice, however, there is no way to upload it into SAP. So it is really just an offline tool.


In the movie groundhog day, Bill Murray’s character keeps reliving the same day…kind of like the experience of reconfiguring SAP boxes because I cannot port my configuration from one box to a new one.

Groundhog Day

I have become very tired of all of my configuration work being annihilated when a box is refreshed. Why can’t I port my configuration from SAP system to SAP system? Why must I reinvent the wheel every-time I arrive on a new project? SAP has few to no answers in this area, and clients do not seem to know how much double work there is involved with an SAP implementation because SAP has made it so difficult to maintain their systems.

A Logical Solution

The most logical way of handling this is to create a file that can be manipulated in Excel, that contains all configuration details. This file could then be uploaded to SAP. The system would parse the file for logical consistency, and would reject files and provide an error log for improperly configured files. This would help remove the bias of so many IT projects where after the initial design stages the project basically leaves the business behind and the entire project becomes about the technology.


EWM Product Master Fields

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Intro

SAP EWM is part of the innovative SAP Product Suite SAP SCM with intelligent integration opportunities to SAP ERP. SAP EWM combines highest functionality andbroad support of processes and therefore belongs to the most capable standard software systems for warehouse management under warehouse control worldwide.

The Components

Main components of SAP EWM are thewarehouse management system (EWM = Extended Warehouse Management) and the material flow control (MFS = Material Flow System).

The main areas of application of SAP EWM are service parts management as well as sophisticated distribution processes and multi customer warehousing typical for logistics service providers.

EWM has the following Product Location tabs that relate to it.

  • Storage
  • Packaging Data
  • Unit of Measure

Storage Tab


Packaging Tab


Unit of Measure


Managing The Tremendous Complexity of SAP EWM

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This is what a look under the EWM hood looks like. Be careful to only cut the blue wire….I mean the red wire.

In developing a configuration document for EWM, it became apparent how large and complex the configuration of EWM actually is. On my previous implementation, we only brought up a few areas of functionality such as slotting and rearrangement. However, the setup options of EWM just seems to on and on. I counted at least 40 basic master data setup objects. Slotting itself has around 20 either direct objects or mappings between objects. The objects are so numerous I am thinking of using mind mapping software just to keep track of all of the relationships. One way to manage the complexity is to code each object as to whether it is in scope for the implementation. Then filter the objects for just the in-scope objects (and mappings) and it will substantially cut down the list necessary for me to review as I go through requirements gathering.

This will be the first time I have done this aside from creating a blog based configuration document for SNP. While its great to have, I don’t think a word processing type document is the right format anymore for this type of detail. I think more advanced tools are necessary.

Limiting Scope and Lengthening the Timeline

This reinforces what I have thought previously about EWM. As the module with the largest scope in SCM, getting clients to limit their project scope should be a serious emphasis of any EWM project. Secondly, software such as Red Prairie is far easier to configure. I would estimate that EWM projects have to be planned to be longer than typical SCM module implementations due to the complexity.

My EWM consulting page…

http://www.scmfocus.com/consulting/areas-of-specialty/sap-ewm/


Who Leads in EWM Consulting?

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Leaders

I find it interesting that the large consulting firms have so little literature on EWM. Far and away the biggest intellectual property creators in the EWM space, and in the WM space as well are two smaller consulting companies. One is Infologix, another is Catalyst and the other is Ciber. Secondly, their literature reads extremely authentic, and I have praised Ciber’s white papers in the past as adding genuine value rather than simply serving as an introduction to the bio of some senior partner.

Is Warehousing More Niche?

It brings up the question of whether warehousing projects are more niche than projects in say supply planning or demand planning. Currently there is a significant uptick in the interest in EWM. There was a similar wave of interest around a year and a half ago, which I think dissipated when the economy was wrecked by Wall Street. However, that interest has returned. Some things driving the interest is the ability to do things in SAP that previously could only be done in best of breed applications such as Red Prairie or Manhattan and Associates. Currently two of the biggest interest areas are labor management, valued added services and yard management. Yard management is often pushed off to later stages of a project after transportation management and (interior) warehouse management. However, yard management is a huge opportunity, as is pointed out in the white paper YM Cross Docking White Paper by Catalyst.

Conclusion

I see the development of Ciber, Ciber and Infologix in the EWM market as a welcome sign. Clients get more value when not all the business in SAP SCM is locked up by just a few consulting firms.


Posted in EWM

Batch Management in EWM

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Batch management is a way of tracking discreet batches of product in a supply chain.

Introduction

Batch management is the used to track individuals items in a supply chain at a batch level. It is a functionality within SAP ERP and is part of the logistics area. Batch management is used wherever individual batch traceability is required. This can be due to differentiated quality due to variable manufacturing output. It can also be due to legal requirements. For instance, pharmaceutical supply chains often employ batch functionality in their software, as to various process industries.

Batch Determination

A common feature of batch management is batch determination. This is where criteria can be used to search for specific batches that apply to such things as posting goods issue, or for combining suitable materials for production orders. For instance, with the configuration of SAP Batch Management, SD can see if the current or planning stock batches match the customer order, if not, production of the batch specification for that customer can be scheduled for production, or ordered from a vendor.

What is on the Batch Record?

The batch has three fields associated with it:

  • Material
  • Batch
  • Plant

Batch Specification

This describes the technical, physical or chemical properties of the batch. Batches can have multiple variables that differentiate them from other batches (almost any characteristic you could think of, the most obvious being color). These are called characteristics, which gets into characteristic based planning, which I prefer not to get into for this article as this drives a different discussion. Items that share the same measured characteristics are part of one “batch.” Batches are assigned to a class in configuration, and the class is then assigned to a material master record. Thus, at its heart Batch Management is the creation of a one (material master) to many (batch) relationship. More batch types can be added to materials (and deleted) at any time. Some of the master data is then controlled by the batch, and no longer the material master (i.e. the pricing an cost), thus in a way the batch is an extension of the material master.

QM and Batch Management

Batches can be tested by a lab and determined if they fit within the batch specifications, and this process is managed by QM (or QIE in EWM).

EWM and Batch Management

This is a blog on SCM planning, not ERP, so the beginning of the post was really just a setup for how Batch Management in SAP ERP enables Batch Management in EWM (or the other way around).

(for those unfamiliar with EWM, please read this introduction –

http://www.scmfocus.com/sapplanning/2008/05/30/extended-warehouse-management/

I found a very good article on EWM and Batch Management by InfoLogix, and I have included excerpts below.

SAP EWM is fully integrated with Batch Management. the batch number is a key field of all inventory records for batch-managed materials. Batches are recorded during all inventory transactions such as receiving, putaway, picking, goods issue and physical inventory. Batch determination is integrated into EWM, allowing for optimal selection of products during picking for outbound orders or replenishments according to warehouse logic (i.e. zones preferences) as well as other business or regulatory rules based on batch characteristics or expiration dates (fifo, fEfo, etc.) it is possible to drill-down into batch master details in all stock inquiries and see batch information and batch characteristics data. – InfoLogix - Applying SAP EWM to a Life Sciences Environment (White Paper)

During the inbound process, batches can either be passed from SAp Erp via the inbound delivery, or can be captured (and created) directly in EWM, offering you maximum flexibility in your receiving process. during the batch creation, attributes (characteristics) such as country of origin, expiration date, shelf life expiration date and production date can also be assigned to the batch master. these are all critical attributes that most life Sciences companies must track. – InfoLogix - Applying SAP EWM to a Life Sciences Environment (White Paper)

Conclusion

Batch management is one of those things that companies have to be very serious about to eventually implement. It is costly and in a way is similar to a project code in terms of tracking (bear with me SAP PS consultants). That is it provides a cross-sectional way to track a material. It has both logistics implications (customers get batch A and not batch B) and these can be costed and priced differently (batch A may be more expensive to make and be more pricey for customers). A trade-off analysis must be performed (unless stipulated by regulation or other law) as to whether to turn on the batch management functionality or attempt to manage and model the process with additional material numbers. Batch Management provides extra benefits when it comes to reporting, as instead of simply seeing a report by different material numbers, the batch numbers can be reported upon, providing a higher level of organization of the data.

References

Batch Management (LO-BM, SAP AG)

Applying SAP EWM to a Life Sciences Environment, InfoLogix White Paper


EWM Labor Management

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Labor Management in EWM

Labor management was introduced in EWM in SCM 5.1. While labor management is relatively new to EWM, it is quite established with a number of warehouse vendors. According to Manhattan Associates..

Labor is a significant cost—typically 55% of the total cost of warehouse operations—yet it is among the most manageable….Labor Management works by storing your database of standards for every key task. For each associate, the actual times for task completion are monitored in real time and compared to standards. Employees at all levels receive immediate feedback on their performance. – http://www.manh.com/distribution_management/labor_management.html

However people in the warehouse are underpaid, so actually labor should be a higher percentage of the total cost of a warehouse. However, with union busting, companies often have their workers on extremely low wages. Labor management is actually a category of software which is much broader than warehousing. For instance the demo at…

http://demo.hotschedules.com/demo/

…describes how their software can be used to manage a workforce in a restaurant. This demo is recommended as it provides a fast explanation of the types of things that labor management offers.


Labor management in EWM is still relatively limited compared to the vendors that specialize in labor management and which offer functionalities such as detailed scheduling and skill matching. The focus of EWM labor management is on enhanced control of employee activities in the warehouse and indentifiying low productivity time.

Labor Management as a Driver

While new to the topic, labor management is of serious interest to a number of companies that evaluate EWM.

1. Labor Management Major Features
Functions are used to measure, plan, simulate and visualize the activities in the warehouse.
  • Measurement
  • Engineering Labor Standards (which can be developed by tracking employees as they progress through tasks.)
  • HR Integration (optional)
  • Labor Tracking
  • Comparison of Actual vs. Plan
  • Planning the warehouse workforce
2. Measurement:

Labor management allows you to define your own key figures and map them to measurement services. This can allow you to track:
Outbound deliveries that have left he warehouse more than 24 hours late
Number of open physical inventory documents that are older than 1 day
Number of handling units in goods receipt.
Alerts can be based upon the exceptions from the measurement services.

3. Engineering labor standards

They must be set, and a comparison must be made between the performance of the warehouse employees is typically done. This is how long the activity is estimated to take.
A labor factor is applied which is the rate per worker. Efficiency can be evaluated or the weight that was moved in a particular activity. Planned and executed workloads can be checked and the labor utilization is the aggregated view of the executed workload. The efficiency value can help accurately determine how many workers are required for the planned tasks in the warehouse.
A planned workload document can be created and used as the basis for planning your resources. This contains information on:
  • Activity area
  • Activity
  • Quantity
  • Planned duration
  • Planned end date
  • Travel distance
  • Capacity dat such as weight or volume
4. Comparison of Actual vs. Plan

After performing the work, it can be used to execute the workload to compare the planning and actual durations. Documents can be sent to the HR system for evaluation and for the eventual payment of a performance bonus. Documents can also be queried to check the labor input towards them. This applied for:
  1. Warehouse orders
  2. VAS orders
  3. Quality inspection documents
  4. Physical inventory documents
  5. Indirect labor
Labor can be tracked in the following ways:
  • Direct Labor (the actual activity)
  • Indirect Labor (housekeeping)
  • Unproductive Time (Unproductive time)
The direct labor is captured and store in the EWM documents for warehouse orders, VAS orders and physical inventory. Indirect labor is recorded by creating indirect labor tasks and unproductive time is captured by HR.

5. HR Integration:

Labor management can connect to the HR system. Thus that must be considered if you intend to use it. The incentives can be directly tied to the individual’s HR record. Both individuals and groups can be tracked.
Activities are assigned to an individual.
Start and end times are necessary for
  • Warehouse Order Confirmation
  • Physical Inventory Processing and Counting
  • VAS Processing Transactions
  • Quality Management Related Transactions
  • In work center related transactions
Labor management also requires the use of processor master data. A processor is a person who operates a vehicle or other resource. The processor includes skills and is a resource driver or a warehouse employee. The processor is defined as a business partner with the role of processor. Resources are assigned to warehouses and to different processes supported.
6. Question to Ask to Determine Whether EWM Labor Management is Right for You
  • Are you willing to setup labor standards?
  • Are you interested in paying incentive bonuses for work?
  • Do you have SAP HR and if so, are you willing to spend the effort to integrate to it?
  • Is labor management a top priority for your project?
  • Are you actually interested in taking advantage of labor management to plan the labor in your warehouse?
  • Are you interested in tracking travel distance?

However, LM is Rarely Implemented

At the time of this writing there I could not find a single technical query on SAP’s developer forum. There were only three questions and they were all high level and exploratory. However, I did recently consult at a company that has had all of its labor management integrated with its shop floor system for years (although it does not have a WMS system). The company used and was very happy with their software provider called High Jump.

http://www.highjump.com/Pages/default.aspx


Posted in EWM