SAP JIT

Just-In-Time (JIT) and Just-In-Sequence (JIS) Processing in SAP S/4HANA

Introduction

The automotive industry is all about speed, precision, and meeting customer needs. A significant part of this involves ensuring that components are available exactly when they’re needed, and in the correct order. This is where Just-in-time (JIT) and Just-in-sequence (JIS) processing come into play. Today, we’re diving into how SAP S/4HANA, a leading enterprise resource planning software, is revolutionizing this process.

SAP JIT

What is Just-In-Time (JIT)?

JIT, or Just-In-Time, is a production method rooted in the principle of reducing in-process inventory. Given the sheer variety of configurations automotive manufacturers offer, there’s a need to have a multitude of components on hand. However, with space at a premium on production lines, it’s crucial to keep inventory lean. This means having suppliers or internal warehouses deliver small quantities of components multiple times a day. In a JIT environment, the sequence in which these parts are delivered doesn’t matter.

Just-in-Time inventory, commonly referred to as JIT, is an inventory management strategy in which raw materials arrive as soon as production is scheduled to begin but no sooner. The goal is high-volume production with minimal inventory on hand to meet demand and eliminate waste.

What is JIT in SAP?

JIT calls in SAP are created for a supplier based upon demands that can be either planned or production orders and even based upon the safety stocks in case of consumption-driven scenarios.

SAP provides multiple T-Codes to manage the JIT scenarios. SAP has also introduced Fiori Apps to manage JIT for S/4 HANA customers.

It is important to note that JIT is a very complex process as it highly depends upon the efficacy of the ordering system so that items are delivered with the right amount at the right time.

SAP JIT Types

Based on scenarios JIT can be divided into two structures

  • JIT Supply to Customer: Also, known as JIT S2C covers the JIT processes from the perspective of a supplier.
  • JIT Supply to Production: Also, known as JIT S2P covers the JIT processes from the perspective of Manufacturers.

JIT in R/3 ABAP

SAP on-premise system provides all the methods that can be used to maintain a plan, create scheduling agreements, create a JIT order, plan a JIT forecast order, and many other relevant operations. Various Reports and T-codes are available to create and manage the same such as:

JIT in S/4 HANA

SAP S/4 HANA provides various Fiori Apps that can be used to create, manage and plan a JIT. Different Apps provide different functionality. The technologies involved for the same include ABAP CDS, BOPF, ABAP RAP, and Fiori.

What is Just-In-Sequence (JIS)

Unlike JIT, Just-In-Sequence (JIS) focuses on delivering the right components to the production line in the exact sequence they are needed. This becomes especially crucial when suppliers are building complex modules or sets that are directly delivered to the line.

Just-In-Time (JIT) and Just-In-Sequence (JIS) Processing in SAP S/4HANA

SAP S/4HANA has risen to the occasion, offering next-gen JIT and JIS processing, catering to both automotive manufacturers and their wider ecosystems. It provides support for both summarized JIT calls and sequenced JIT calls from both outbound and inbound perspectives.

JIT Supply to Production

Delving deeper into the JIT Supply to Production, we see a demand-triggered pull signal to either internal or external supply sources. The highlights of this process include:

  • Flexibility: You can cater to both summarized and sequenced JIT calls.
  • Integration: Seamless linkage with SAP S/4HANA inventory management and SAP Extended Warehouse Management (SAP EWM) means tasks can be directly created in embedded EWM.
  • Adaptability: Reordering of sequenced JIT calls in case of damage or quality issues is possible, ensuring production isn’t halted.
  • Real-time Transparency: With embedded analytics, companies can have an instant overview of their operational system, facilitating better decision-making.

What’s more, the use of communication groups for multiple JIS call recipients and lifecycle management for control cycles ensures that this system can be tailored to fit specific customer needs.

JIT Supply to Customer

Switching gears to JIT Supply to Customer, we find a similarly robust system. Key takeaways here include:

  • End-to-End Process Support: With both summarized and sequenced JIT calls being supported, companies have a comprehensive toolkit at their disposal.
  • Flexibility: Rules-based component group determination, combined with simplified grouping of sequenced JIT calls, allows for precise and efficient packing and delivery.
  • Usability: The new SAP Fiori user interface, combined with a monitoring app for JIT calls, ensures that the system is both powerful and user-friendly.
  • Transparency: Thanks to SAP S/4HANA’s embedded analytics, companies can get a clearer view of their stock availability and demand analysis.

In essence, SAP S/4HANA’s next-gen JIT solutions elevate the JIT processing, offering automotive companies the tools they need to streamline processes, enhance reliability, and ultimately, boost customer satisfaction.

In conclusion, as the automotive world becomes more complex and customer-centric, systems like SAP S/4HANA’s JIT and JIS processes will be the linchpin holding production lines together, ensuring that the right part is always at the right place, at the right time.

Author

  • Barry Allen

    A Full Stack Developer with 10+ years of experience in different domain including SAP, Blockchain, AI and Web Development.


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