Step by step introduction to set up and run a SAP PP Long Term Planning Scenario

Intro

As a Production planning consultant, we must learn the PP EWM integration. Let us see the process of staging materials in PSA from the warehouse. Explained the EWM configuration here.

Main Part.

Consider the below as a plant in which we have a warehouse, Production area, and production supply area. For some components, whenever a production order got created, we need to transfer materials from warehouse to the production area directly and consume them. But for some materials, we will stage the materials in the Production supply area and consume it whenever its needed.

You may ask why we need to move(Staging) it from the warehouse to PSA. As the warehouse is big it may take time for the production team to find and take the component from the warehouse. So its good to take the material from warehouse and keep it near by production area. So it will be ready to access. For big and easily identifiable materials they do staging whenever the order is created. But for small items they will do replenish the supply area whenever the stock got reduced.

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Overview on Steps

  1. Create a new Storage location as PSA
  2. Assign warehouse number to plant/storage location
  3. Map Storage Locations from the ERP System to EWM.
  4. Set up the Staging for Separate Storage Location
  5. Create a new production supply area – PK05
  6. Create Work Center – CR01
  7. Create a BOM – CS01
  8. Routing – CA01
  9. Create new control cycles – LPK1
  10. Create the same production supply area in EWM – /n/SCWM/PSA
  11. Map the EWM PSA to the ERP PSA – /n/SCWM/PSAMAP
  12. Assign Bin to Product/Entitled in PSA – /n/SCWM/PSASTAGE2
  13. Execute the Staging
  14. Create one warehouse process Type by copying the standard WPT 3100
  15. Activate Replenishment Strategies in Storage Types.
  16. Schedule the replenishment for the crate part – /n/SCWM/REPL

Configuration

1. Create a new Storage location as PSA

Enterprise Structure – Definition – Materials Management – Maintain storage location

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2. Assign warehouse number to plant/storage location

Enterprise Structure – Assignment – Logistics – Execution – Assign warehouse number to plant/storage location.

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3. Map Storage Locations from the ERP System to EWM.

SCM EWM – EWM – Interfaces – ERP Integration – Goods Movements – Map Storage Locations from ERP System to EWM.

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Set up the Staging for Separate Storage Location

4. Create a new production supply area – PK05

As mentioned above the PSA is a small storage location nearby production area, where the components are stored. It can be either a rack or bin or flat surface. We have to create this in SAP ERP. If the components are replenished in PSA, it can be easily take and used in production. No need to go to WH and take it.

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Logistics – Logistics Execution – Master Data – Warehouse – Production Supply – Production Supply Area – Create / Change.

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5. Create Work Center – CR01

These are machine, location or labour who make the product in manufacturing area. Here you need to add the PSA to respective workcenter. So that the system will understand from where to take the components.

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Create Work center with the Produciton Supply area which you created.

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6. Create a BOM – CS01

As you know these are Components used on manufacturing the finished materials

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7. Routing – CA01

Create Routing with the Work Center that you created with PSA and assign the components to the operations

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Material assignment to 1st operation where the PSA work center is assigned

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Create the production version as well as C223

8. Create new control cycles – LPK1

The control cycle is a mapping between the material, supply storage location and the staging indicator in ERP system. It defines the storage location from where the materials to be taken and where its need to be placed.

Logistics – Logistics Execution – Master Data – Warehouse – Production Supply – Control Cycle Production Supply – Create.

PPB01 – Pick Part, PPC01 – Crate Part , PPC02 – Release Order Part (Not shown). The difference between these control cycles are staging indicator.

Pick Part – This indicator should be used for the materials which are manged in WM, and there is no pallet requirements – means you can pick any qty without any restrictions.

Crate Part or Kanban – This indicator should be used for the materials which are manged in WM, and the materials that are handled by a pallet/crate. Few material you cannot pick partial qunatities — for example one cement bag..

Release order parts –  Release order parts are scheduled individually and replenishment is carried out manually based on production orders. — Not used much….

Manual staging – Here the materials are staged manually i.e. movement of components to production storage is carried out using manual transfer orders. When you post the goods issue, posting are made to destination storage bins through control cycles. — self explanatory.

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Give the staging indicator as 1 – Pick Part and Storage location as AFS where we have the stock for components.

Create another Control cycle with the staging indicator 2 – Crate Part for the material PCC01- This means the component can be restocked in PSA whenever it’s reduced. (Like Reorder point)

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Note: But here Staging Indicator 4 – Manual staging can also be used.

I added one more material PPC02 to BOM and routing and created one more control cycle with staging indicator 3 – Release Order Part. This means the staging of component can happen only after the Release of the production order.

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9. Create the same production supply area in EWM – /n/SCWM/PSA

Extended Warehouse Management – Master Data – Production Supply Area (PSA) – Define PSA

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Here the supply area name is added with the suffix 0075.

10. Map the EWM PSA to the ERP PSA – /n/SCWM/PSAMAP

Extended Warehouse Management – Interface – ERP Integration – Map Production Supply Area (PSA)

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11. Assign Bin to Product/Entitled in PSA for EWM (Like Control cycle in ERP) – /n/SCWM/PSASTAGE2

Extended Warehouse Management – Master Data – Production Supply Area (PSA) – Assign Bin to Product/Entitled in PSA.

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For PPB01 and PPC02 the settings are the same, But for PPC01 the settings are different so I used the crate part staging method. Here I mentioned the storage bin as PSA (Physical Production supply area) from where I will stage the components and use it for production.

Before starting the staging process you need to have some stock in your AFS storage location in Storage bin RA01. For that you can create a purchase order, Inbound delivery, and complete the GR from the EWM side.

If you face issue that stock not generated in ECC then check the SMQ2 transaction with the inbound delivery number. There you can find issues.

Note: For doing GR, you need to maintain the Putaway rule

SCM Extended Warehouse Management – Extended Warehouse Management – Goods Receipt Process
Strategies – Storage Type Search – Definition of Groups – Define Storage Type Search Sequence for Putaway

In Same menu do the below configs also

Assign Storage Types to Storage Type Search Sequence, Define Putaway Control Indicator, Specify Storage Type Search Sequence for Putaway, Optimize Access Strategy for Storage Type Search: Putaway

At last assign it to material in EWM via transaction /n/SCWM/MAT1

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Execute the Staging

Now we have the linkage between the PSA and storage bins for the components. When we

12. Create one warehouse process Type by copying the standard WPT 3100

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13. Activate Replenishment Strategies in Storage Types.

SCM EWM – EWM – Internal Warehouse Processes – Replenishment Control – Activate Replenishment Strategies in Storage Types.

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Here I used the storage type PSA – Production storage location which I need to fill one component PPC01 on reorder/Kanban-based replenishment. This same storage type is used to create the bin PSA which I have maintained in Assign Bin to Product/Entitled in PSA as storage bin.

14. Schedule the replenishment for the crate part – /n/SCWM/REPL

EWM – Work Scheduling – Schedule Replenishment

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After clicking Execute you will get this output. So here the materials from warehouse has been removed and placed in the PSA as the stock not available in PSA like Reorder point planning

Note: For completing this, you need to maintain the Stock removal strategy.

SCM EWM- EWM – Goods Receipt Process – Goods Issue Process – Strategies – Specify Storage Type Search Sequence

In same menu also do the below 3 configurations

Define Stock Removal Control Indicator, Determine Storage Type Search Sequence for Stock Removal, Optimize Access Strategies for Stor. Type Determination in Stock Removal

At last maintain the Stock removal Indicator in EWM materail via transaction /n/SCWM/MAT1 – Warehouse data view – Stock Removal Control.

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Confirm the warehouse task

Now go to Warehouse monitor /n/SCWM/MON to replenish the stock for component PPC01.

This can be seen in the document – Warehouse order. There select the open order and click warehouse task above

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Here you can see the stock is moving from the RA01 to PSA. Now Select the option button and confirm the warehouse task in the background.

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Now you can see the stock of 100 PC has been moved from RA01 to PSA. Previously I kept 510 pc in RA01 and now 100 PC got moved to PSA.

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Create a Production order – CO01

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Will proceed to explain further on next blog.

End.

I hope this may support you.
Kindly share documents on configuring the staging components for PP with EWM if any.

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