Index. Glossary 3 1)Introduction 4 1.1) Executive Summary 6 2) Objectives and Expected Results 7 3)State of the Art 9 3.1) Warehouse Management 13

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1 Mestrado Integrado em Engenharia Informática e Computação Introdução à Investigação 5º ano Integration of a Logistics Managem ment Module in jdx ERP José Luís Carvalho Pereira (ei07182) Supervisor: Prof. Ana Paula Rocha (FEUP) January 9, 2009

2 Index Glossary 3 1)Introduction 4 1.1) Executive Summary 6 2) Objectives and Expected Results 7 3)State of the Art 9 3.1) Warehouse Management ) Inbound Processes ) Outbound Processes ) Storage Bin Management and Optimization ) Distribution Center Processes ) Demand Planning with DUET and SAP SCM )Meeting Today s Supply Chain Challenges ) Demand Planing with DUET and SAP SCM )Preconfigured user roles )Easy to use planning sheets 27 4)Project Scheduling 29 5)Conclusion 29 References: 33 Integration of a Logistics Management Module in jdx ERP 2

3 Glossary ABAL Advanced Business Application Language from Prologue ASN Advanced notification of shipping Baan Corporation Information Systems Company BAdI Business add-ins technology Bann Important ERP in the market CRM Customer relationship management DBMS Database Management System Dialogue3 Database Management System from Prologue Dinâmica Small Information Systems Company Dinamix ERP from Dinâmica ERP Enterprise Resource Planning EWM Extended Warehouse Management IIR Human resources J. D. Edwards Important ERP in the market J. D. Edwards Corporation Information Systems Company Jasper Report-iReport Open-Source Reporting Engine JBuilder IDE (Integrated Development Environment) from Borland jdx ERP that Dinâmica wants to end in the future KPI Key performance indicators MRP Material Requirements Planning mysap Important ERP in the market ORACLE Information Systems Company PD Pushes deployment PeopleSoft Information Systems Company PFGR Pick from goods receipt PLM Product Lifecycle Management PostgreSQL Open-Source Object-Relational DBMS Prologue A French constructor of system software and hardware QIE Quality inspection engine QM Quality management RF Radio Frequency SAP Information Systems Company SCM Supply Chain Management TCD Transportation cross-docking UPS Uninterrupted Power Supply Integration of a Logistics Management Module in jdx ERP 3

4 1)Introduction The work described in this document is related to the Information Technology area in enterprises in the Industrial market, so it is worth a brief history of the requirements required by the Industrial market. Since mid-85, roughly until the mid-90s, there were still a significant amount of entrepreneurs who opted to have in terms of Information Systems, Productive system disconnected from the Administrative / Financial Area. This way of working had justifications that are not relevant to this analysis, but had also the disadvantage to involve redundancies in terms of data and to "isolate" information that obviously should not be separated. Since that time the situation has changed and entrepreneurs began to seek integrated solutions. It is therefore substantially in the mid-nineties that integrated solutions for Information Systems in enterprises starts to appear and we begin to talk about ERPs (Enterprise Resource Planning) in the domestic market with regard to medium-sized industrial enterprises. I am connected to the ERP (Enterprise Resource Planning) area since the mid-80s of the last century. By the year 2000 my functions are mainly as an analyst, in particular in the modules of Industrial Production and Quality Maintenance. From that time I had to extend this analysis to the Administrative / Financial areas. I have always be a collaborator of "Software Houses" (curiously decreasing in size over time).the fact I have worked several years in the Industrial area with an Operating System, the Prologue ( a French constructor of system software and hardware), a programming language, of the 4ª generation ABAL (Advanced Business Application Language) and a DBMS (Database Management System) has made the Dialogue3 (Database Management) System. Dialogue3 could produce solutions that meet the requirements of customers with interesting features, for example at the explosion of articles using MRP (Material Requirements Planning) in automatic exploding of color, after a careful coding of articles or the accompanying online without papers for operation / collaborator among others. This triangle Prologue/ABAL/Dialogue3 was something of insurance (almost Integration of a Logistics Management Module in jdx ERP 4

5 makes UPS -Uninterrupted Power Supply- not necessary) immune to viruses, but was driven to character. The work on the Industrial area is more sensitive to the features / requirements than to the form / appearance, what implies that we had not given the importance due to the emergence of the "graphic". Moreover, usual development teams in small / mediumsized enterprises, where there isn t a great culture of R & D, are naturally "collage" to the technology dominated by the team. It degenerates into complex business situations, because the period of gestation of ERP (even with an analysis successfully done a priori) is very high when software tools change. This is what is happening with us in Dinamica, which is a small sized enterprise in the field of ERP builders. We hope to, at least partially, solve this issue with the current proposed project. The rest of this document is structured as follows: Integration of a Logistics Management Module in jdx ERP 5

6 1.1) Executive Summary 1) Introduction The first chapter is mainly intended to contextualize the author of the report in the area we are talking about. 2) Objectives and Expected Results Here the objective is to show the ERP that we have in market and the technical delay we also have. We explain some of the main reasons why that happened. It also explains the aims of this work and sets out a brief form of the features of Logistics Module to implement in project (see Section 4). 3) State of the Art is the key section of this paper where we analyze 2 modules of SAP's mysap ERP, the Warehouse Management and Demand Planning with DUET. The DUET is an application developed between Microsoft and SAP that make users "see" the planning as a spreadsheet. 4) Project Scheduling Aims to represent a very simple form a forecast of planning project to be implemented in the 2nd half of 5ºyear of de course. 5) Conclusion It is intended to be a comparison between what has been achieved considering the Warehouse Management module of mysap and the features that we have in our current ERP (Dinamix) to withdraw, in a manner appropriate to our market, features that will optimize our system. Integration of a Logistics Management Module in jdx ERP 6

7 2) Objectives and Expected Results "We wake up" in 2005, late is a fact, we had a good product, it is true. It is reliable, meets the requirements of potential customers, but does not sell. It fact led us to a deep reflection in the selection of appropriate development tools, also by consulting institutions of reference in the software area. After these considerations the choice lies in the triangle JBuilder (Borland) / PostgreSQL / Jasper Report-iReport). The issue of the software tools was the main concern in this work, since in terms of analysis we believe to be well in the market we want to attack. There is however a very important aspect that we need to up grade, which is, the parameterization of the ERP. Given the peculiarities of our project seems to us to be a good strategy to reach a state of the art, comfortable, with regard to the Logistics Module to be included in the ERP. We will try to analyze what the most reputable manufacturers of ERP's offer at the moment. To meet this objective it seems to us that the best way is to "take a look" in what SAP 1 includes in their systems. Regarding two other main reference manufacturers that, in a first analysis, we also thought to include in this work ORACLE (acquired PeopleSoft that had likened the J. D. Edwards Corporation) and Infor Global Solutions (which acquired SSA,. who had bought the Baan Corporation), manufacturers, quickly we arrive to the conclusion that its analysis will be very difficult. The two standards, J. D. Edwards and Bann, have "changed hands" several times what turns the analysis of the ERP a very difficult task, because they are already very widespread. Regarding other important manufacturer, mysap (ERP from SAP), we can say that this German manufacturer is very strict on the dissemination of technical information, that s the main reason why it was not easy to do this work. The objective of this work (3) State of the Art), whose result is this report, with the difficulties we have told, is after the analysis of the warehouse management of the 1 SAP is an enterprise that offers Information Systems in the Management area Integration of a Logistics Management Module in jdx ERP 7

8 mysap, compare that features with that we have in Dinamix (ERP from Dinâmica) and conclude what we can improve in our future logistics module suitable to our market. The Project (see 4) Project Scheduling) Implementation and Integration of a Logistics Management Module in jdx ERP, a preliminary analysis, should have the following functionality..management of Supply Orders.Management Warehouse Document s.several Reports.Supplier / Article relations.suppliers Information The Logistics module will integrate with the financial module and other module that will be developed. The project will be done under Java Technologies witch is very important for the future of our product. During the second semester, I will have the supervision of Prof Ana Paula Rocha, in order to achieve the objectives. Integration of a Logistics Management Module in jdx ERP 8

9 3)State of the Art This section presents the state of the art in the Enterprise Information Technology area, focusing in the discussion of Supply Chain Management (SCM). We will discuss two main topics that are, the Warehouse Management and the Demand Planning in SCM, presenting solutions already existing and pointing out its features. We begin the discussion about the state of the art in what concerns the Supply Chain Management (SCM) systems of the manufacturers organizations making a question: What are the supply chain problems that today's manufacturers need to solve? And we will try to answer it, as better as we can. We have been watching in the last years at an increment use of outsourcing, both offshore and nearshore, that has resulted in highly distributed suppliers and manufacturing networks to bring products and services to the global market (in some cases direct outsourcing, in others cases indirect outsourcing, but in most situations the networks include both types). The reason why these networks become highly complex is because they have so many nodes that interact with each other with high range of raw materials in order to deliver finished goods. So it s imperative that these global supply networks must exhibits a high degree of adaptability, responsiveness, and collaborative capability, or they quickly become chaotic with poor service levels and high inefficiency costs. The two usual ways of manufacturing globalization, owned and outsourced, in addiction with the product demand and the resulting variability of both, can quickly degrade service and cost performance if the organizations do not have the capacity to respond quickly and decisively to these inevitable changes. We are also seeing growth in customer demands for diversification and broader, variety in both products and product delivery that is driving higher than ever levels of supply chain complexity while companies attempt to accommodate increased expectations for reduced delivery lead times. Integration of a Logistics Management Module in jdx ERP 9

10 In a highly distributed, global manufacturing network, this increased in complexity is compounded, and a corresponding inability to respond to these new market realities will lead to increased out of stocks and lost revenue. These trends are particularly complicating for the manufacturing network that is struggling to properly balance cost and service in an environment where demand signal data is increasingly available. In our days it is the manufacturing network that is the most globally distributed, often with a mixture of owned and outsourced capacity, which drives a great deal of complexity, usually with a corresponding lack of visibility and agility. The inability to operate with this kind of network in a connected, synchronized way drives up inventory levels and pushes down service levels. As it is obviously at the same time as the fulfillment, end of the supply chain becomes more demand driven. The modern supply chain model we use (Manufacturing Insights) to articulate current challenges in supply chain organizations looks quite distinctly at two components of the global supply network: the supply side and the demand side. While these are clearly two pieces of the same whole, they are quite different. They have different cadences and challenges. The demand side is affected by demand and is therefore characterized by demand-driven processes and short lead times in a pull environment. The supply side is affected by globalization and supply variability and is therefore characterized by costdriven processes and longer lead times in a push environment. Balancing push and pull processes across a distributed network requires clear business rules (metrics), improved collaboration, and a transparent flow of information and clear decision making. It s to help us solving these challenges we use software. The mysap 2 SCM (Supply Chain Management) is the only application of supply chain that integrates collaboration, execution, implementation and coordination for the entire network of the supply chain. We can synchronize supply to demand and accelerate the chain from the factory to the foxhole. The organization can respond to every situation with an adaptive supply chain network that provides the visibility, collaboration, and analytics for the entire network. 2 mysap is a ERP from SAP Integration of a Logistics Management Module in jdx ERP 10

11 We can see below (Figure 1 see 2ª URL Ref.)at a glance the generic process enabled by mysap SCM. Integration of a Logistics Management Module in jdx ERP 11

12 In next sections, we will analyze in more detail two modules:. Warehouse. Demand Planning Integration of a Logistics Management Module in jdx ERP 12

13 3.1) Warehouse Management Let's start with a brief compilation of the most important features found in SAP systems in management of warehouses. SAP EWM (Extended Warehouse Management), has the option of mapping all warehouse facilities in detail, down to storage-bin level. Because SAP EWM is completely integrated with the management and delivery of inventory processing software, it is possible to monitor and improve various processes of the warehouse. The business processes caused by other components of the application cause movements in its warehouse. These movements can be organized, managed and monitored in SAP EWM. Warehouse Management implies the management of inbound processes, outbound processes, storage bin optimization as well as distribution center processes ) Inbound Processes Inbound Processes are responsible for inputs in the warehouses. Yard Management With the application s new yard management functionality, it is possible to manage trucks and trailers in the yard, map their movements based on warehouse tasks, and monitor the yard via a warehouse monitor. The yard can be defined within the warehouse structure. This definition can be unique to one warehouse or used for multiple warehouses. Also multiple yards can be defined for one warehouse. Parking spaces are mapped as standard storage bins that can be grouped into yard sections. Vehicles are checked into and out of the yard using checkpoints. From a checkpoint, a vehicle might be directed to a parking space or to a door for immediate loading or unloading. An inbound trailer can be unloaded and then immediately loaded as an outbound trailer to increase asset utilization. Yard movements are performed via radio frequency (RF) or desktop transactions. The service-enabled architecture of the yard management functionality provides the additional flexibility we need to enhance scheduling and streamline vehicle or transport unit activities. Integration of a Logistics Management Module in jdx ERP 13

14 Putaway and Stock Removal Strategies With SAP EWM, the strategies putaway and removal are used to assign appropriate bins for the placement and picking. These strategies determine the correct bin each time a warehouse task is created. For goods receipt, the putaway strategy uses parameters uses in the product master data to maximize the capacity of the warehouse, automatically determining suitable storage bins for incoming products. In the property issue, strategies for removal are determined from product master data to find the optimal picking bin. The application also lets you manually processing certain movements of goods, overriding source and destination storage bins that are usually determined automatically. Putaway and strategies for removal are also used to handle internal movements - for example, replenishment and rearrangement. Putaway strategies include manual entry, fixed storage bin, general storage, addition to existing stock, empty storage bin, near fixed bin picking, pallet storage, and bulk storage. Strategies for stock removal include first in, first out, last in, first out; first expiry, first out; first partial quantities, according to removal quantity; shelf-life expiry; and fixed bin. Any of these strategies can be enhanced or modified using business addins (BAdI) technology. Expected Goods Receipt Typically, an advanced notification of shipping (ASN) or inbound delivery is created in the planning of the company in the enterprise resource planning (ERP) system to begin the process of receipt of goods in the warehouse. With mysap EWM, it is the ERP purchasing document as a planned goods receipt enabling goods receipt processes to begin in the warehouse. The receipt of goods and streamlined within mysap EWM, allows to create and check inbound deliveries of entry based on the arrival of the truck. Findings of tolerance entrant are processed in receipts. The supervisor of the warehouse Integration of a Logistics Management Module in jdx ERP 14

15 can check the receipts of the future workload and plan based on the number of ASNs and purchase-order items scheduled for the day. Cross-Docking With mysap EWM storage costs of minimizing handling of product can be reduced. The Cross-docking lets to carry the goods directly to a receipt for goods to issue, thereby increasing the number of units processed and insure the shipment of the completion of urgent orders to reduce processing and storage costs. Pick from Goods Receipt and Push Deployment Pick from goods receipt (PFGR) and pushes deployment (PD) functions are unplanned cross-docking or opportunistic activities. For not programmed cross-docking, the work is done with deliveries and starts by using the goods receipt. At the time of goods receipt, the warehouse process type and stock type are checked to determine whether the product is relevant for putaway delay. If relevant, the putaway the delay is started and the generation of putaway warehouse tasks is delayed. If a back-order situation exists, an outbound delivery document is created and the product is cross-docked to the area of transportation. If the warehouse process type and stock are not relevant, the warehouse tasks are generated for putaway without delay, so that means PD and PFGR functions are not performed. The SAP Advanced Planning & Optimization (SAP APO) component defines whether an inbound delivery is PD-relevant or PFGR-relevant. This means that SAP APO defines the cross-docking relevance after posting goods receipt. In PFGR-relevant deliveries, SAP APO determines whether stock is to be moved directly after receipt to a customer or to a different warehouse. The decision is based on one or several back orders held in the SAP Customer Relationship Management (SAP CRM) application. For PD-relevant deliveries, SAP APO decides whether goods are to be moved from one location to another. This decision is triggered by goods receipt and is based on a sales forecast. Integration of a Logistics Management Module in jdx ERP 15

16 Transportation Cross-Docking The transportation cross-docking of (TCD) is a form of cross-docking planning that allows improving cost of transportation. TCD supports the transport of handling units through different distribution centers or hubs on to its final destination. It allows us to consolidate multiple deliveries to new transports, changing the mode of transport, or processes export activities centrally. If the final destination is a distribution center or a warehouse at the client, a sales order in SAP CRM gives way to the basis for TCD. However, it is also possible to use TCD to carry the handling units to the final warehouse. In this case, a stock transfer order forms the basis for TCD. Value-Added Services With SAP EWM, the value-added services (VAS) can be executed in the warehouse using orders. The activities are typical of VAS assembling product, labeling, packing, or kitting. The order of the VAS instructs the warehouse worker about what activity needs to be executed for which product. The order links the delivery item with the packaging specification containing the details for the service that should be executed. The specification of packaging says the VAS activities need to be done, and delivery item tells the exact amount of work to be done. The auxiliary products used for particular services are also recorded in the order of the VAS. We can use the data collected in the order of the VAS as a basis for calculating external billing internal services providers. The VAS order also serves as the documentation of the activity. Quality Management The functions of quality management (QM) in mysap EWM are enabled through a quality inspection engine (QIE) that maps inspection processes. The QM functions let to check whether delivered products meet the specified criteria for quality. Upon good receipt, it is now possible to inspect the entire delivery, inspect delivered handling units, count the delivered products, and inspect the delivered products to a customer return. Inside the warehouse, a quality inspection can be triggered manually for a product that has been put away. Using SAP CRM, the parameters that influence the goods receipt and quality inspection process of customer returns can be parameterized. The results of an inspection are evaluated and can then trigger logistical follow-up actions such as stock transfer or scrapping. Integration of a Logistics Management Module in jdx ERP 16

17 SAP EWM also uses the QIE to handle tasks of inspection quality. An inspection of the quality lets us use a catalog of defects to appraise the quality of an object (such as a delivery), handling unit, or product. We can also integrate these functions of inspection in several applications in the family's series of business in the SAP enterprise applications as well as in non-sap applications. The functions of inspection-engine supplement the comprehensive QM function the SAP Product Lifecycle Management (SAP PLM) application. The QIE was designed for use in a heterogeneous system landscape. Because it is service-oriented, it can support new processes such as the process for executing inspections via the decentralized warehouse management software in mysap SCM ) Outbound Processes Outbound Processes are responsible for outputs in the warehouses.. Wave Processing A wave gathers articles of the application of the warehouse processes to control the store such as the choice of activities or the display of changes. These groupings are then processed together. Warehouse request and split items can be grouped into waves based on area of activity in the route, or product. The waves can be generated automatically or manually using templates. The wave template defines the attributes of wave and serves as the infrastructure for the automatic assignment of the wave. The templates allow the same attributes wave to be reused for different warehouse request items that comply with the same conditions. They can also be used in creating manual wave. In the case of automatic creation wave, templates must be used to assign or split items to existing waves. The outbound process begins grouping the items of delivery line in waves that can model a constraint-based calculation to takes material handling equipment in mind. With the number of pallet assembly positions known, an appropriate amount of work can be identified and released to the floor. Some picks, such as full pallets, are identified to bypass the conveyor system and instead be picked from reserve and directly staged for shipping. This results in a significant labor savings. Other items are picked to a conveyor, where they are routed to either a pallet-building station or a parcel-shipping Integration of a Logistics Management Module in jdx ERP 17

18 station. After being placed on a pallet or manifested, products are loaded and a goods issue is posted. Replenishment Processing Proceedings of the Replenishment ensure that forwards pick areas are stocked in appropriate quantities to support picking requirements. There are multiple possibilities for managing the replenishment including minimum and maximum stock levels, demand-based stock requirements, and exception-based replenishment. In a replenishment system of based on minimum and maximum levels, when the minimum level is reached, a replenishment task is created to refill the bin in pallet quantities up to the maximum level. Demand-based replenishment plans are based on open warehouse requests. Direct or exception-based replenishment react to shortfalls that become apparent during warehouse task confirmation ) Storage Bin Management and Optimization Storage Bin is a crucial issue, because it has direct influence in the management of the warehouse and therefore in the performance of it. Within mysap EWM, this facility is described and mapped out based on different storage areas. For example, areas for the storage of high-rack, bulk stock, and fixed bin areas are mapped as storage types within the warehouse structure. Inventories can be controlled as a combination of products and packaging materials, defined as handling units. Handling units provide the flexibility of movement as well as visibility in the contents of a pallet or a container. Product inventories are managed at a of storage-bin level. Storage bins are defined according to our needs, using templates. Each storage bin is mapped in its warehouse, allowing us constantly to follow in detail all movements. We have the full visibility of our warehouse products at all times. With mysap EWM it is possible to optimize storage of the warehouse stocks so that each product is stored in the most optimum bin according to size and frequency of access. First it uses slotting functions to suggest the best fit for a product within the warehouse, then warehouse is reorganized, relocating products that are not currently Integration of a Logistics Management Module in jdx ERP 18

19 stored in optimum positions. The slotting function enables mysap EWM to update master data to ensure proper placement and picking of products in the future. The management of inventory and management of prolonged storage are fully integrated. Allowing the use of physical inventory procedures and enter the differences, SAP EWM ensures that the book inventory balance of the in inventory management always matches actual warehouse stock. Managing Handling Units A handling unit is a physical unit that comprising the packaging material and the product. All the information contained in the product can be accessed from the handling unit. Articles that include C unit, can consist of materials items, auxiliary packaging materials, or other handling units, which can be displayed in an overview. Each unit of manipulation is exceptionally identified. The general management of the status enables us to document the physical status of the handling unit (such as realized or performed) and other attributes (such as blocked, weighed, loaded, or posted goods issue). Additionally it is possible to define a user schema to create a specific status for a type of packaging material. Slotting Slotting determines the product master data from the product master data that directs putaways and removal strategies. Using the slotting function in mysap EWM, it is possible to prevent the establishment of storage-bin for products that were not yet been slotted. At the warehouse level, it is possible to control whether storage-bin determination of a product is to be permitted when slotting has not yet been performed. The slotting software takes into account product data, demand data, and packaging data to determine the most optimum storage bin in the warehouse. These parameters describe the area in which the product must be stored, the properties required for the storage bin and putaway strategy to be used. Slotting software also looks the master data that is dependent on the implementation process. If a putaway process is dependent on the execution data, this information is included for the storage-bin determination the process but has no influence on the slotting results. You can simulate slotting results by Integration of a Logistics Management Module in jdx ERP 19

20 running the slotting function without updating the product master. When we are satisfied with the result, we can save and activate it. Taking Physical Inventory With SAP EWM, the physical inventory runs at the warehouse level. Regular counting cycle ensures that we have the right amount of the right product in the right bin. It is possible to define the frequency for counting articles A, B and C. An analyzer, available with configurable groups of tolerance, enables control the differences after what is possible to evaluate and post the differences back to the ERP system. Another possibility is to set the maximum allowable percentage or monetary limit to specific users for posting differences. And it is also possible to manage counts at a product or the bin level by cycle counting, verifying that the product is in the right location, verifying the balance at the time of putaway or pick, conducting zero or low-stock checks, and conducting annual wall-to-wall physical inventory procedures ) Distribution Center Processes Distribution Center Processes consist in a set of general features included in the mysap EWD. Planning and Monitoring A central warehouse monitor in mysap EWM gives warehouse personal complete and up-to-date visibility into all warehouse activity. The warehouse monitor displays information on picking, physical inventory, resource management, warehouse stocks, or any warehouse activity. Users can setup the monitor to display only the business processes that they need. They may also use the monitor as an interactive tool for assigning, initiating, and controlling work. Radio Frequency Support SAP EWM supports the radio frequency technology for faster, and more accurate data entry. The RF devices interact directly, ensuring accurate data validation. They let enter and verify data using bar codes or tags, which ensure a high standard of quality in the warehouse. The SAP software is device agnostic and provides tools to translate as Integration of a Logistics Management Module in jdx ERP 20

21 necessary messages and information from the RF device. A radio frequency identification can also be used throughout warehouse processes for task confirmation, packing, loading and unloading Serial Number Support The serial numbers are also supported in SAP EWM and can be controlled at the document level or at the bin level. If the serial numbers are tracked at the document level, you record the serial number only at the time of inbound or outbound delivery. If tracked at the bin level, the numbers are recorded not only at the time of receipt and issue but also captured of each task confirmation. Resource Management With its functionality of resource management, SAP EWM maximizes the efficiency of processes of the warehouse facilitating the management and distribution of work through the queue. The action may be an environment in RF or in non-rf. Queues help us to refine the selection of warehouse orders for the resource requesting work while the warehouse monitor helps monitor and control resources effectively. Allocate resources to queues ensure focused management and distribution of tasks throughout the warehouse. Work can be assigned automatically or manually to available resources. Resources requiring system-guided work are provided with the optimum tasks, based on a range of factors that include latest start date, mode assigned queues, executions priorities, resource qualifications, and warehouse order status. A warehouse order represents the optimum executable work package a warehouse employee should perform at a specific time. It consists of one or the other tasks of the warehouse - orders that are grouped into the warehouse and available for processing and in articles of physical inventory. The scope and type of an order from the warehouse can be adjusted using the rules of the creation of the warehouse order of the store that are set in customization. Warehouse orders are allocated to warehouse employees via resource management functionality. Labor Management SAP EWM offers robust labor management functionality that lets to work follow the performance of the employee to meet the projected labor standards or the other Integration of a Logistics Management Module in jdx ERP 21

22 measuring performance. With this feature labor can be managed efficiently using EWM tools for planning, simulating, and measuring employee activities. The tracks of mysap EWM direct and indirect labor, give an exact overview of all activities of the warehouse employee. Using authorization profiles, it keeps sensitive information secure and upholds associate anonymity. With this new feature of labor management, users can better control and measure employee productivity and to plan, simulate, measure, and view warehouse activities. Out-of-the-box reporting lets us see the performance of the employee individually or by group activities for both direct and indirect. Employees can have immediate feedback on their own performance seeing results of the transaction on its RF device or in warehouse display, accessible from their desktop. Travel times are calculated for both vertical and horizontal movements. The supervisors can plan and simulate activities across various time buckets. The new feature also lets to define key performance indicators (KPIs) that support its business model and configure alerts when KPIs are not met. The KPIs can be displayed in a graphic structure that allows to enter multiple services immediately, giving a quick visual of the most important KPIs that should be following. Because these labor management functions are integrated with human resources (IIR) software, it is possible to offer incentive-based wages. The supervisor has an opportunity to review and approve the workload data prior to passing bonus calculations of the HR system. Automation, Support for Material Flow Systems SAP EWM also contains a link to external systems (warehouse control units), allowing to integrate and automated putaway and storage-retrieval systems, control systems, forklift control systems, conveyor systems, and other automated equipment for all product movements using standard application linking and embedding processing. A material flow system allows a direct connection to automated systems of storage and retrieval systems. You simply plug a programmable logic controller to mysap EWM. It is possible to use this material to control movement of handling units in automated systems, to enable or disable conveyor segments, to group conveyer segments, or to enable or disable correspondence at various levels. The warehouse display gives the Integration of a Logistics Management Module in jdx ERP 22

23 visibility to monitoring communication points, current and previous flow, and the complete flow for a handling unit. Integration of a Logistics Management Module in jdx ERP 23

24 3.2) Demand Planning with DUET and SAP SCM Integrating with Microsoft Office software, SAP, the Duet has changed dramatically the scenario of wasted time and possible errors from using data that is out-of-date when compiling data for reports or business plans collated from a variety of sources. Duet gives employees the information a window in the heart of the enterprise applications from mysap, significantly improving their access to business processes and key information such as planning demand. For users, working with Duet is like working with Microsoft Excel. Within a spreadsheet that contains data from the planning of mysap SCM (see Figure 2), you can use many standard functions of Microsoft Excel to add rows and columns, to create graphs and calculations to do with specific formulas. A highlight feature identifies the changes you make to the planning data so that you can review those changes before saving the data to mysap SCM. You can also work offline - while visiting clients, for example )Meeting Today s Supply Chain Challenges Planning for typically demand has been the domain of a small group of highly skilled individuals who manage the process of planning and forecasting for an entire organization and its divisions, product groups, or regions. As a result of centralization, the planners are often far removed from the customer demand for real and must rely on their own planning experience and tools without valuable input from their sales organizations. The implementation of the Supply Chain Management of the mysap (SAP SCM) provides the perfect set of tools for these highly skilled and experienced users. Demandplanning software within the application offers a complete range of advanced functions to analysis data, multilevel planning, life cycle management, forecasting, and planning. In addition, mysap SCM supports collaboration and supply chain partnerships such as vendor-managed inventory and collaborative planning, forecasting, and replenishment. Integration of a Logistics Management Module in jdx ERP 24

25 3.2.2) Demand Planing with DUET and SAP SCM Used with a fully configured mysap demand-planning application in the back end, Duet offers a detailed provision of interactive features to create the planning, managing, and modifying demand plans or forecasts. Duet links the advanced demand-planning features of mysap SCM with the familiar and flexible interface of Microsoft Excel. Together, mysap SCM and Duet support needs of users for comprehensive interactive functions that are flexible, intuitive and easy to use. In addition, users have the option to work off-line - allowing, for example, a sales representative to embed data in the forecast when on the road. Using Duet and mysap SCM, employees who do not specializes in the planning process but have the best possible understanding of their customers requirements can enter information via a simple interface - thereby contributing greatly to the accuracy of the overall demand plan. Such employees gain an unprecedented view of planning data as it relates to their areas of responsibility. Specialized demand planners also benefit from the flexible Excel-based functions that complement the mysap SCM functions they already use )Preconfigured user roles mysap SCM offers four roles preconfigured with the demand-planning functions assigned for intuitive use. These functions vary from simple tasks in a preset area for less specialized planners, such as sales managers, through support for advanced and power planners who are responsible for enterprise-wide demand planning and forecasting. For system administrators, there is a complete range of functions for the establishment and control of the whole planning process. The four preconfigured roles are suggestions, and some smaller organizations may choose not to use all the roles. The details for each role follow below. Integration of a Logistics Management Module in jdx ERP 25

26 The Planner The planner typically has almost no knowledge of mysap SCM and is involved in planning the demand for the infrequent and short periods - perhaps to contribute data on a quarterly basis. the planner could be a sales representative who knew the client demand and is often out of the office, and can use the function off-line planning to update forecasting date. Preconfigured planning sheets and straightforward options for accessing demand-planning data within Duet provide the planner an efficient work environment using the most basic functions of mysap SCM. The Advanced Planner The planner typically has some advanced knowledge of mysap SCM, needs flexible access to data for planning, and may require application several times a day and for a longer periods. An example of the advanced planner is a manager of logistics who has an overview of an enterprise requirements of planning but does not spent an entire day of work in the planning process. In the Duet, the advanced planner gets preconfigured planning sheets that can be adapted to particular needs. The Power Planner The power planner is typically a good understanding of mysap SCM, requires flexible access to data planning, and can use the software regularly and for long periods. An example of advanced planner is a planner of the supply chain. The power planner is responsible for the transfer to other users, local or regional, knowledge about setup of the planning software and is the main contact point for the administrator (see below). The power planner uses Duet and SAP SCM to configure planning sheets for anyone who contributes in the planning process. The Administrator The administrator typically works in the department and IT is responsible for configuring and administering SAP SCM and Duet. While familiar with demandplanning tasks and processes, the administrator supports other users in these tasks rather than directly contributing to the planning process itself. The administrator can use the duet and SAP SCM planning to configure sheets for the planner, advanced planner and power planner. Integration of a Logistics Management Module in jdx ERP 26

27 3.2.4)Easy-to-use planning sheets Creating a Planning Sheet A planning sheet contains the key figures and characteristics for the planning scenario and displays data in the frequency required (such as weeks) and time frame (as June to December 2008). This lets users see exactly the data they need. The planning sheet displays data originating from SAP SCM implementation and is the interface through which users incorporate and change data as necessary. As with other spreadsheets in Excel, we can create a workbook that contains multiple sheets of planning and makes calculations on a sheet that reference data on another sheet. This data may have a different font, such as a non-sap system. Editing an Existing Planning Sheet With the exception of the planner, users can change to the existing planning sheets to varying degrees. The advanced planner can remove the key figures, to change the order in which they appear, and reduce the planning horizon (the time period covered by a demand plan). The advanced planner can change how drilling down on data is carried out and how data is displayed. In addition to the options available to advanced planner, the power planner of can change the frequency (for example, of weeks to months) and extend the planning horizon. The administrator has access to the complete range of functions to edit an existing planning sheet and can add new key figures or make adjustments to key figures that should be read only in the sheet. The administrator can add or remove features and change the planning-horizon type from absolute (for example, July 2007 to July 2008) to moving (for example, three months in the past and six months in the future, taking today s date as a reference point). In addition, the administrator defines witch periods of planning horizon must be read-only (for example, all periods in the past). Managing the Selection of Data The management of data selection is a core function of demand planning with SAP SCM and Duet. A selection includes all the criteria that we use to upload data in the planning sheet. Selections available in SAP SCM also exist in the Duet for users with Integration of a Logistics Management Module in jdx ERP 27

28 appropriate authorization. We must pre-assign at least a selection of a sheet planning to use the demand-planning functions in SAP SCM with Duet. All users can switch between some of the pre-assigned selections. The advanced planner, the power planner, and the administrator have access to the quick-entry and hitlist features that let them further restrict and fine-tune selections to see only the information they need in the planning sheet. The function of the quick-entry lets to restrict the selection of data to one characteristic, such as color, and, if required, to a specific characteristic, like a yellow. This is a particularly simple and efficient way to retrieving specific data. The function is particularly useful if user are only planning a limited range of data; for example, user are updating figures for one or two products out of a total of 100 in their planning sheet. The list of hit slets combine criteria that further restrict data in planning sheet. All the features included in the selection can be used to filter and refine the data range the user want to show. All values (such as names of the individual customer or product) that meet the specified search criteria appear in the hit-list section of the Duet action pane. With a mouse click, data to one or more of the products on the list can be uploaded. Integration of a Logistics Management Module in jdx ERP 28

29 4)Project Scheduling We can t make an accurate scheduling of the project, because in the middle of it there will be examinations periods and we do not know their exact date, so Figure 3 should be seen as an estimated scheduling for the project Figure 3: Preview of project scheduling ei )Conclusion In this section of conclusions we address ourselves only on 3.1) Warehouse Management, since it is most directly connected with the project that we will develop, that is, the demand side will not be included. We will compare the features that we have in Dinamix (ERP from Dinamica) and conclude what we can improve in our logistics module that is suitable to our specific market (Metal Mechanics medium-sized enterprises). Next paragraphs relates these conclusions in each of the main features of the Warehouse Management already enumerated in section 3.1 a) Inbound Processes a1) Yard Management Although it was important to be known in some detail how SAP treats, at the moment, the Yard Management, we believe it s now out of question to include a routine in the Integration of a Logistics Management Module in jdx ERP 29

30 logistics module to solve this issue, as this analysis is not a priority for client target (Metal Mechanics medium-sized) a2) Putaway and Stock Removal Strategies This point will lead us to a profound reflection on the units to purchase / consumption, sale. In practical terms it looks very difficult to implement all the flexibility in terms of handling of stock proposed by SAP, including the pallet/ bulk handling. a3) Expected Goods Receipt This is a situation that we have contemplated in Dinamix. Our ERP treat the estimated date of delivery in supplier order, line by line, that means article by article, that can be feed from placing the order to delivery of the last item. Thus, using maps that show the expected deliveries for a given period of time we can manage them. However we must create a flag to signalize when date passes to bas in an ASN. a4) Cross-Docking / Pick from Goods Receipt and Push Deployment Mechanisms of Cross-Docking are not very important in our ERP as we work with industry, and it s very rare instances have an input article in the warehouse that without any added value will be outbound immediately. The only situation that we see where it might happen, is when there are transfer inter-warehouse of the organization. On other issues we work as follows: 1) Manufacturing Orders, created by the planning, create needs and the reserve raw materials. 2) At any time the responsible for planning, if necessary, can reserve items for a Manufacturing Order. a5) Transportation Cross-Docking Again, the set of features examined won t have immediately interest, because our customers usually use the service carriers when they are responsible for transport. However the concept of hub of transport and transport slice was stored in the "ear". a6) Value-Added Service Integration of a Logistics Management Module in jdx ERP 30

31 These are issues have historically treat on our module production management. a7) Quality Management Due to the fact that we customize solutions to our customers in the area of quality our system reflects the stage where they are in this area. Some are certified in terms of quality, others are in certification, and others have started the process. The quality index we use work with suppliers and employees. Those relating to suppliers can range from indices for compliance with deadlines for delivery of orders, delivery time. We have no idea of the object (delivery, handling unit or product), in our ERP and to that purpose make an inspection of quality. What we do is a statistical treatment of events. b) Outbound Process b1) Wave Processing Right now we do not have this kind treatment "batch" implemented. We did a routine that of all orders placed to suppliers in the system, but not yet processed, it generates a set of suggestions for supplier s orders which are then validated or not by the user. b2) Replenishment Processing We believe that the analysis here hasn t brought anything new. It is also a mix of stock minimum / maximum, the quantity of orders, demand and level of stock among others that we use. c) Storage Bin Management and Optimization In this topic our attention has decreased over time. This is because our clients have been given less importance to this requirement. Initially we had a three-dimensional location to the articles in the warehouse, which was used by our customers. Some time ago we noticed that customers do not use this quota. This does not mean the best possible location depending on the size and frequency of hits is not important... If not in another way we will exploit it in a commercial way... c1) Managing Handling Units Integration of a Logistics Management Module in jdx ERP 31