SAP Next-generation Just-In-Time Supply to Production

SAP Next-generation Just-In-Time Supply to Production

Introduction

In the modern, fast-paced manufacturing world, companies strive to optimize their processes for efficiency, cost-saving, and customer satisfaction. SAP’s next-generation Just-In-Time (JIT) Supply to Production provides an integrated solution that allows manufacturing entities to streamline their production processes, reduce inventory costs, and ensure that the right components arrive just when needed. Let’s dive into this state-of-the-art solution.

SAP Next-generation Just-In-Time Supply to Production

What is SAP Just-In-Time Supply to Production

SAP Just-In-Time Supply to Production is an innovative approach designed for manufacturing setups that thrive on JIT principles. With the challenges posed by varied customer demands and limited storage space, manufacturers need a sophisticated solution. The SAP JIT ensures that components, whether sourced externally or from internal warehouses, are delivered in the right quantity and at the precise moment they’re needed for production, ensuring optimal workflow and reducing unnecessary inventory overhead.

JIT-Process Architecture

JIT-Process Architecture

This architecture represents a flowchart detailing the Just-In-Time (JIT) Supply to Production process in an SAP environment. The diagram shows how various components and functionalities of SAP interrelate, especially in the context of materials management, production planning, logistics execution, and transportation. Let’s break it down:

  1. Production Planning:
    • The process begins with “Production Order (PP)”, which may derive from a “Planned Order” either from PP-REM or PPDS.
    • These planned orders create demands for either JIT (Just-In-Time) or JIS (Just-In-Sequence) processes.
  2. JIT Supply to Production:
    • Master data and communication group management are fundamental components.
    • The control cycles of JIT are managed and modified, leading to various processes like JIT call management, planning of supply to production, scheduling of JIT replenishments, and more.
    • The JIT calls, whether summarized or sequenced, influence the internal replenishment processes and stock transfers.
  3. OEM/Customer (Original Equipment Manufacturer):
    • This section provides an overview and analytics of the JIT supply to production, highlighting potential changes in the plan and monitoring of JIT calls and their components.
  4. Materials Management:
    • This is where scheduling agreements and schedule lines come into play. As materials are planned and ordered, updates to quantities (Qty Updates) are made, which then lead to the creation of various logistics and transportation processes.
  5. Logistics Execution:
    • Before the goods are received, there’s a series of actions such as updating status, delivery creation, setting transfers, and eventually posting the goods receipt.
    • This interacts closely with the Transportation Management and Warehouse Management processes.
  6. Transportation Management:
    • The system manages the transportation of goods via various stages like creating consignment orders, assigning freight units, managing freight orders, and handling advanced shipping & receiving protocols. External replenishments might also be noted via SOAP messages.
  7. Extended Warehouse Management:
    • Once goods are in the warehouse, processes like pick/prepare management, route train loading, and pick execution are carried out. Internal replenishments are managed, and unloading points for goods are defined.
    • The production supply areas and storage bins for different production lines are clearly depicted.
  8. Integration Points:
    • Red dotted lines typically signify integration or informational flow between processes.
    • Green solid lines might indicate a direct flow or process sequence.
  9. Storage and Stock Management:
    • The architecture demonstrates the flow of stock and its management, transitioning between IM-managed source storage locations, destination areas, and EWM-managed areas.

In essence, this architecture provides a holistic view of how JIT supply to production processes are executed within the SAP environment, integrating production planning, materials management, logistics, transportation, and warehouse management for efficient and streamlined operations.

Fiori Apps in Just-In-Time Supply to Production

The SAP Fiori design language brings user experience to the fore, ensuring that processes are not only efficient but also user-friendly. Here are some core apps within the SAP JIT Supply to Production ecosystem:

a) Manage JIT Calls: This app offers a centralized platform to oversee all JIT calls. You can create, modify, or track JIT calls, ensuring you’re always in sync with your supply needs.

b) Manage JIT Control Cycles: A control cycle determines the supply frequency and quantity. This app aids in setting up, modifying, or monitoring these cycles, which act as the backbone for your JIT system.

c) Request Replenishments for Control Cycles: Occasionally, manual intervention may be required to request specific replenishments. This app allows users to make such bespoke requests aligned with established control cycles.

d) Plan Supply to Production: An intuitive planning tool that integrates with your JIT control cycles, ensuring that your production lines are never starved of the components they need.

e) Manage JIS calls and Reorder: Just-In-Sequence (JIS) is an extension of JIT, ensuring components arrive not just in time, but also in the sequence they’re needed. This app also provides reordering functionalities in case of unforeseen supply issues.

f) Monitor Customer JIT Calls: Keeping an eye on the end customer is crucial. This app provides insights into customer JIT calls, enabling manufacturers to foresee and plan for demand spikes or changes.

g) Manage JIT Delivery Confirmations: Once the components are delivered, confirming their receipt is crucial for inventory tracking and supplier relations. This app streamlines this confirmation process.

h) Stock Availability Analysis: Real-time visibility into stock levels is critical in a JIT setup. This app provides analytics, trends, and insights into stock availability, ensuring decision-makers are always informed.

i) Manage Production Supply Areas: Different production lines or units might have distinct supply needs. This app allows for the efficient management of these individualized production supply zones.


In conclusion, SAP’s next-generation Just-In-Time Supply to Production system is revolutionizing how manufacturers operate. With integrated Fiori apps ensuring a seamless user experience, manufacturers can now optimize their processes, cut down on wastage, and cater to their customers more effectively than ever before. Embracing this solution ensures a competitive edge in the challenging landscape of modern manufacturing.

 

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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