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1 XXX-Client Name XXX Client Logo Business Blueprint Warehouse Management System
2 All revisions made to this document are listed here in chronological order. S.No Reason for Change Version No. Effective Date 1 Original 1.0 VERSION 1.0 PAGE 2 OF 93
3 Business Blue Print Preparation and Approval FUNCTION DEPARTMENT DESIGNATION NAME SIGN & DATE Prepared by Reviewed & Approved by Authorized by VERSION 1.0 PAGE 3 OF 93
4 Contents Table of Contents INTRODUCTION...9 OBJECTIVE OF THIS REPORT...9 STRUCTURE OF THE REPORT ORGANIZATION OVERVIEW ABOUT STRIDES GROUP (STRIDES ARCOLAB LTD.) WAREHOUSE MANAGEMENT (WM) AT STRIDES ARCOLAB LTD...11 ORGANIZATION STRUCTURE ORGANIZATION STRUCTURE COMPANY CODE PLANT STORAGE LOCATIONS WAREHOUSE ORGANIZATION STRUCTURE OF WAREHOUSE MANAGEMENT...18 MASTER DATA MASTER DATA MATERIAL MASTER VIEWS IN THE MATERIAL MASTER RECORD ORGANIZATION LEVELS IN WAREHOUSE MANAGEMENT FOR MATERIAL MASTER DATA MAINTENANCE DEFINING WAREHOUSE DATA IN THE MATERIAL MASTER INTEGRATION...27 WAREHOUSE STRUCTURE...28 VERSION 1.0 PAGE 4 OF 93
5 4.1 GENERAL DESCRIPTION WAREHOUSE NUMBER STORAGE TYPE INTERIM STORAGE AREAS STOCK PLACEMENT USING STORAGE UNIT TYPES STORAGE SECTION: STORAGE BIN: QUANT: SHELF LIFE EXPIRATION DATE (SLED) NUMBER RANGES TYPES OF STOCKS: STOCK CATEGORY STATUS OF STOCK IN THE WAREHOUSE PUT AWAY AND PICKING STRATEGIES FORMS AND REPORTS REQUIRED...50 WAREHOUSE MANAGEMENT PROCESS COMPONENTS TRANSFER REQUIREMENT (TR) USE THE SYSTEM UPDATES THE TRANSFER REQUIREMENT STRUCTURE OF TRANSFER REQUIREMENT TRANSFER REQUIREMENTS CAN BE CREATED: TRANSFER REQUIREMENT UPDATES: AUTOMATIC CREATION OF TRANSFER REQUIREMENTS MANUAL CREATION OF TR TRANSFER ORDER STRUCTURE OF TRANSFER ORDER (TO): CREATING TRANSFER ORDERS PREREQUISITES CONFIRMATION OF TRANSFER ORDERS (TO S)...56 POSTING CHANGES IN WM PURPOSE REASONS FOR MAKING POSTING CHANGES INTEGRATION PROCESSING POSTING CHANGES PROCESS FLOW DISPLAYING POSTING CHANGE NOTICES PROCESSING POSTING CHANGES ENTIRELY WITHIN WM PROCESSING INSPECTION STOCK...59 VERSION 1.0 PAGE 5 OF 93
6 6.1.9 UPDATES IN THE SYSTEM: RELEASING STOCK FROM INSPECTION RELEASES FROM MORE THAN ONE STORAGE TYPE PROCEDURE IN WM PROCESSING BLOCKED STOCK (EXPIRED GOODS) CONVERTING AVAILABLE STOCK TO INSPECTION STOCK CONVERTING AVAILABLE STOCK TO INSPECTION STOCK FOR RETEST FORMS AND REPORTS REQUIRED...61 GOODS RECEIPT GOODS MOVEMENTS IN WAREHOUSE MANAGEMENT THE GOODS RECEIPT PROCESS WM - QM INTERFACE PROCESS FLOW GOODS RECEIPT FOR QUALITY INSPECTION PROCESS FLOW RELEASING MATERIAL FROM INSPECTION STOCK TASKS IN INVENTORY MANAGEMENT AND QUALITY MANAGEMENT CUSTOMER RETURN MATERIAL HANDLING PROCESS GOODS RECEIPT FOR PURCHASE ORDER /PROCESS ORDER / RETURN SALE ORDER SAP SCENARIOS GOODS RECEIPT WITHOUT PURCHASE ORDER SAP SCENARIOS GOODS RECEIPT OF BULK STORAGE SAP SCENARIOS ONLINE REJECTION MATERIAL DOCUMENTS SAP SCENARIOS...71 GOODS ISSUE GOODS ISSUE IN THE WAREHOUSE MANAGEMENT PURPOSE PROCESS FLOW INTEGRATION FEATURES IMPACT OF DELIVERY ON WAREHOUSE MANAGEMENT SYSTEM CREATING A TO FOR A CANCELLED DELIVERY GOODS ISSUE BASED ON AN INVENTORY MANAGEMENT POSTING GOODS ISSUE TO A COST CENTER GOODS ISSUE FOR RETURN DELIVERY TO VENDOR (VENDOR RETURN)...77 VERSION 1.0 PAGE 6 OF 93
7 CREATING A TRANSFER ORDER FOR A MATERIAL DOCUMENT GOODS ISSUE FOR PRODUCTION SUPPLY GOODS ISSUE TO PROCESS ORDER / COST CENTER / RESERVATION / PURCHASE ORDER / RETURN DELIVERY TO VENDOR SAP SCENARIOS GOODS ISSUE TO CONTROL SAMPLES SAP SCENARIOS GOODS ISSUE AGAINST SALES ORDER SAP SCENARIO FORMS AND REPORTS REQUIRED...80 TRANSFER POSTINGS GENERAL DESCRIPTION FEATURES TRANSFER POSTINGS AND STOCK TRANSFERS STOCK TRANSFER PROCEDURES STOCK TRANSFERS AND REPLENISHMENT WAREHOUSE TO WAREHOUSE STOCK TRANSFER BELONG TO TWO DIFFERENT PLANTS FROM WAREHOUSE TO WAREHOUSE (IN THE SAME PLANT) INTERNAL STOCK TRANSFERS: BIN TO BIN TRANSFER IN THE SAME WAREHOUSE TRANSFER OF STOCK FROM SALES ORDER STOCK TO SALES ORDER STOCK TRANSFER OF MATERIAL FROM ONE WAREHOUSE TO ANOTHER WAREHOUSE WHICH BELONG TO TWO DIFFERENT PLANTS SAP SCENARIOS TRANSFER POSTING - WAREHOUSE TO WAREHOUSE (WITHIN THE PLANT) SAP SCENARIOS TRANSFER POSTING-BIN TO BIN TRANSFER OF MATERIAL WITH IN THE WAREHOUSE SAP SCENARIOS TRANSFER DOCUMENT CREATED BY OTHER MOVEMENTS SAP SCENARIOS MATERIAL DOCUMENT CREATED BY OTHER MOVEMENTS SAP SCENARIOS FORMS AND REPORTS REQUIRED...88 PHYSICAL INVENTORY PURPOSE FEATURES PHYSICAL INVENTORY PROCEDURES PROCESS FLOW...91 VERSION 1.0 PAGE 7 OF 93
8 PROCEDURE TO BE FOLLOWED FOR PHYSICAL INVENTORY IN WAREHOUSE MANAGEMENT SAP SCENARIOS FORMS AND REPORTS REQUIRED INTEGRATION WITH OTHER MODULES...93 VERSION 1.0 PAGE 8 OF 93
9 Introduction The aim of the blue print on Warehouse Management System (WMS) is to know the functions, processes & procedures to be followed for the business requirements, integration with other modules & processes, which is the main deliverable of Business Blueprint Phase, is to serve as conceptual master plan for Warehouse Management System (WMS) module for XXX-client Name This Blueprint has been developed by documenting all input gathered from the core team by scheduling meetings and workshops. This document shows the business requirements in detail, and serves as the basis for organization, configuration and development activities. Objective of this Report During the course of this phase of the assignment, Covansys consultants held business process workshop for the Core team members (across businesses) to discuss and deliberate the business requirements for respective functional areas. The objective of the workshops was to discuss the following aspects of each business process and to define the requirements of XXX-client Name in detail. Business Process Expectations/ Improvements Reporting/Information requirements Based on the discussions during the Business Process Workshop, various business scenarios have been documented which need to be addressed by the system. The purpose of this report is to confirm the understanding of these business scenarios, which would form the basis for system specifications and to also list requirements which cannot be addressed by the system. This document forms the basis for all subsequent activities to be conducted during the project. VERSION 1.0 PAGE 9 OF 93
10 Structure of the Report The report initially gives an overview of the Warehouse Management Module purview. This would essentially help in defining the boundaries of the module and also in identifying the activities to be performed within Warehouse Management Module in SAP. Subsequently, the report discusses in detail, the proposed coverage of SAP at XXX-client Name., in terms of organizational entities and business processes. Each business process has been described with all the variations. The authorization requirements would be identified and configured during the configuration phase. 1.1 Organization Overview About XXX-client Name XXX-client Name is an integrated manufacturers and exporter of finished pharmaceutical dosage forms both branded and generic. Stride s is a significant global player in soft gelatin capsules and sterile parenterals with quality standards that meet the most stringent regulated market standards. Strides has 14 world-class plants in India, U.S.A, Brazil, Mexico, Poland and Italy offering its partners the advantage of multi-location product sourcing. Strides is among the world s top 5 soft gel capsule manufacturers with plants in India and an US FDA inspected plant in the U.S.A. Strides has marketing presence in 55 countries. This broad network facilitates partnering with global organizations ranging from UNICEF, UNDP, Global TB Drug Facility, The Clinton Foundation to European and American pharma giants and even private labelers and distribution chains. In addition, Strides also undertakes Contract Research & Manufacturing of Specialty Chemicals. Strides have about 1500 employees in total in different operations across various geographical locations. The annual revenues of the group are in the range of RS 700 Crore. Strides have implemented SAP as the backbone ERP system in , which is being successfully used for the last 2 years. However, keeping in view the future challenges and growth plans, Strides has decided to implement mysap ERP R/3 4.7 Ver. Warehouse Management Module. VERSION 1.0 PAGE 10 OF 93
11 1.2 Warehouse Management (WM) at XXX-client Name The Warehouse Management system (WMS) is implemented in the following plants XXX for the management of warehouse. The SAP Warehouse Management module allows: Definition and mapping of the physical warehousing structures in the system Processing goods movements like - receipts, issues and stock transfers Maintain up to date stock inventories in the Warehousing complex at storage bin level The Warehouse management is integrated with Material Management (MM), Sales & Distribution (SD), Quality Management (QM) modules. The base document for the material movement will be generated either in the MM or SD or QM modules. For all the Goods receipt (GR) from the vendors and other plants, the base document will be generated in MM module. For Goods Issue (GI) for either to production or to other plants the base document will be generated in MM module. As quality management is active in the organization, all the materials will pass through the quality inspection process during the GR and GI and posting change document (change in the stock type of the material stock i.e. either from quality inspection stock to unrestricted etc) will be generated in quality management for the placement or removal of material in warehouse. During the GR quality inspection process and online inspection process during production, the base document to return the material to the vendor will be generated in QM module. For the delivery of goods against sales order, the delivery document will be generated in SD module for the removal of the material from the warehouse. For handling the customer return materials, the base document will be generated either in SD module. The inventory will be managed both in storage location level in Inventory management (IM) level in MM module and at bin level in Warehouse Management. WM module also has RFID & Bar code reading functionality. These can be explored & implemented in future as separate project. VERSION 1.0 PAGE 11 OF 93
12 Organization Structure 2.1 Organization Structure In SAP, a company is made up of a variety of operational groups. These groups or organizational units can include sales, purchasing, accounting, distribution, and so forth. SAP R/3 System is designed to support each of these groups. Different software applications in the R/3 System can be linked to these organization units to create a completely integrated company structure. Flexible organizational units in the R/3 System let user represent user s organization with a comprehensive company structure. The combination and integration of organizational units form the legal and structural basis of a company. For example, organizational units can interface with materials management, sales and distribution, and financial accounting. Different application areas in the R/3 System can be linked through organizational units to create a completely integrated company structure. Company Code A Company code represents the XXX client Group legal entity and accounting unit where balance sheet and profit and loss statements are created. There will be XX Company Codes representing XXX client Group Plant A plant is an organizational unit within the company, against which materials are purchased and stored. Only the above company codes are considered for the WM implementation. Company Code: Sterile Products Division 1060 Beta Lactam Division 1070 Oral Dosage Forms 1080 Formulation Development 1090 Sterile Facilities Formulation 1100 Global Remedies Limited VERSION 1.0 PAGE 12 OF 93
13 Company Code: GLOBAL REMEDIES 2010 Global Remedies Limited Company Code: QUANTUM LIFE SCIENCES PVT 3010 QUANTUM LIFE SCIENCES PVT LTD. Storage Locations A storage location is a unit that allows the differentiation of material stocks within a plant. Inventory management on a quantity basis is carried out at storage location level. Physical inventory is also carried out at storage location level. Each plant may have multiple storage locations. Plant Code Storage location 1050 CR CSLF 1050 FG NMFG 1050 PM CSLP 1050 SMP RM CSLR 1050 FD PS SMR RR MI01 VERSION 1.0 PAGE 13 OF 93
14 Plant Code Storage location 1060 CR CSLF 1060 FG NMFG 1060 PM CSLP 1060 SMP RM CSLR 1060 FD PS SMR RR MI01 Plant Code Storage location 1070 CR CSLF 1070 FG NMFG 1070 PM CSLP 1070 SMP RM CSLR 1070 FD PS SMR RR CL01 VERSION 1.0 PAGE 14 OF 93
15 Plant Code Storage location 1080 CR CSLF 1080 FG NMFG 1080 PM CSLP 1080 SMP RM CSLR 1080 FD PS SMR RR MI01 Plant Code Storage location 1090 CR CSLF 1090 FG NMFG 1090 PM CSLP 1090 SMP RM CSLR 1090 FD PS SMR RR MI01 VERSION 1.0 PAGE 15 OF 93
16 Plant Code Storage location 1100 CR CSLF 1100 FG NMFG 1100 PM CSLP 1100 SMP RM CSLR 1100 FD PS SMR RR MI01 Plant Code Storage location 2010 CR CSLF 2010 FG NMFG 2010 PM CSLP 2010 SMP RM CSLR 2010 FD PS SMR RR MI01 VERSION 1.0 PAGE 16 OF 93
17 Plant Code Storage location 3010 CR CSLF 3010 FG NMFG 3010 PM CSLP 3010 SMP RM CSLR 3010 FD PS SMR RR MI01 Above Same Storage Location will be activated for Warehouse management modules. Warehouse The Warehouse Management (WM) application provides flexible, automated support to assist in processing all goods movements and in maintaining current stock inventories in warehousing complex. WM supports warehousing processes like: Define and manage complex warehousing structures Optimize material flow using advanced put away and picking techniques Process goods receipts, goods issues and stock transfers quickly and easily The Warehouse Management application is fully integrated into the SAP R/3 system. Transactions that are initiated in other SAP components result in corresponding tasks in WM which activate the actual physical transfers within the warehouse. A few of these activities include: Material movements and changes in material status, such as releasing goods from inspection Material staging to production supply areas Picking and shipping goods for sales orders VERSION 1.0 PAGE 17 OF 93
18 Organization structure of Warehouse Management Company Code STRIDES ARCOLAB LTD STRIDES ARCOLAB LTD Plant Code Storage location Name Warehouse Code 1050 FG01 Finished Goods 105 CR01 Customer returns 105 CSLF Cus supp FERT 105 NMFG Non Moving FG 105 PM01 Packing Material 105 CSLP Cus supp Pack 105 SMP1 Slow-mvng PM 105 RM01 Raw materials 105 CSLR Cus supply ROH 105 FD01 Raw materials / Packing Mat. 105 PS01 Pre purchase sam 105 SMR1 Slow-mvng RM 105 RR01 Rejections 105 MI01 Miscellaneous FG01 Finished Goods 106 CR01 Customer returns 106 CSLF Cus supp FERT 106 NMFG Non Moving FG 106 PM01 Packing Material 106 CSLP Cus supp Pack 106 SMP1 Slow-mvng PM 106 RM01 Raw materials 106 CSLR Cus supply ROH 106 FD01 Raw materials / Packing Mat. 106 PS01 Pre purchase sam 106 SMR1 Slow-mvng RM 106 RR01 Rejections 106 MI01 Miscellaneous 106 VERSION 1.0 PAGE 18 OF 93
19 STRIDES ARCOLAB LTD 1070 FG01 Finished Goods 107 CR01 Customer returns 107 CSLF Cus supp FERT 107 NMFG Non Moving FG 107 PM01 Packing Material 107 CSLP Cus supp Pack 107 SMP1 Slow-mvng PM 107 RM01 Raw materials 107 CSLR Cus supply ROH 107 FD01 Raw materials / Packing Mat. 107 PS01 Pre purchase sam 107 SMR1 Slow-mvng RM 107 RR01 Rejections 107 MI01 Miscellaneous 107 CL01 Caryl stock STRIDES ARCOLAB LTD 1080 FG01 Finished Goods 108 CR01 Customer returns 108 CSLF Cus supp FERT 108 NMFG Non Moving FG 108 PM01 Packing Material 108 CSLP Cus supp Pack 108 SMP1 Slow-mvng PM 108 RM01 Raw materials 108 CSLR Cus supply ROH 108 FD01 Raw materials / Packing Mat. 108 PS01 Pre purchase sam 108 SMR1 Slow-mvng RM 108 RR01 Rejections 108 MI01 Miscellaneous STRIDES ARCOLAB LTD 1090 FG01 Finished Goods 109 CR01 Customer returns 109 VERSION 1.0 PAGE 19 OF 93
20 CSLF Cus supp FERT 109 NMFG Non Moving FG 109 PM01 Packing Material 109 CSLP Cus supp Pack 109 SMP1 Slow-mvng PM 109 RM01 Raw materials 109 CSLR Cus supply ROH 109 FD01 Raw materials / Packing Mat. 109 PS01 Pre purchase sam 109 SMR1 Slow-mvng RM 109 RR01 Rejections 109 MI01 Miscellaneous STRIDES ARCOLAB LTD 1100 FG01 Finished Goods 110 CR01 Customer returns 110 CSLF Cus supp FERT 110 NMFG Non Moving FG 110 PM01 Packing Material 110 CSLP Cus supp Pack 110 SMP1 Slow-mvng PM 110 RM01 Raw materials 110 CSLR Cus supply ROH 110 FD01 Raw materials / Packing Mat. 110 PS01 Pre purchase sam 110 SMR1 Slow-mvng RM 110 RR01 Rejections 110 MI01 Miscellaneous GLOBAL REMEDIES 2010 FG01 Finished Goods 201 CR01 Customer returns 201 VERSION 1.0 PAGE 20 OF 93
21 CSLF Cus supp FERT 201 NMFG Non Moving FG 201 PM01 Packing Material 201 CSLP Cus supp Pack 201 SMP1 Slow-mvng PM 201 RM01 Raw materials 201 CSLR Cus supply ROH 201 FD01 Raw materials / Packing Mat. 201 PS01 Pre purchase sam 201 SMR1 Slow-mvng RM 201 RR01 Rejections 201 MI01 Miscellaneous QUANTUM LIFE SCIENCES PVT 3010 FG01 Finished Goods 301 CR01 Customer returns 301 CSLF Cus supp FERT 301 NMFG Non Moving FG 301 PM01 Packing Material 301 CSLP Cus supp Pack 301 SMP1 Slow-mvng PM 301 RM01 Raw materials 301 CSLR Cus supply ROH 301 FD01 Raw materials / Packing Mat. 301 PS01 Pre purchase sam 301 SMR1 Slow-mvng RM 301 RR01 Rejections 301 MI01 Miscellaneous 301 VERSION 1.0 PAGE 21 OF 93
22 Logistics Organization Structure of 3 Company Codes Warehouse Organization structure for Plants 1050 (SPD) 1060(BLD) SPD Storage Locations BLD Storage Locations SPD Warehouse 105 BLD Warehouse 106 VERSION 1.0 PAGE 22 OF 93
23 1070(ODF) 1080 (FD) ODF Storage Locations FD Storage Locations ODF Warehouse 107 FD Warehouse 108 VERSION 1.0 PAGE 23 OF 93
24 1090 (SFF) 1100 (GRL) SFF Storage Locations GRL Storage Locations SFF Warehouse 109 GRL Warehouse 110 VERSION 1.0 PAGE 24 OF 93
25 2010 (GRL) 3010 (QLS) GRL Storage Locations QLS Storage Locations GRL Warehouse 201 QLS Warehouse 301 VERSION 1.0 PAGE 25 OF 93
26 Master Data 3.1 Master Data Master data is defined as data records, which remain unchanged over an extended period of time and contain information that is used in the same manner for similar objects. Consistency and correctness of format and input is essential to ensure full and proper use of the system. Material Master The material master record is the source of material specific data, which is used throughout the SAP R/3 system. The data contained in the material master record is required for many functions within the logistics system such as purchasing data for ordering, inventory management for posting goods movements, accounting data for valuation upon goods movements or invoice verification and materials planning data and for the storing the materials in warehouse / storage location. Material data is held at different organizational levels: Data on client level: Material group, base unit of measure, material descriptions, general technical data and conversion factors for alternative units of measure. Data at plant level: All plant and related storage location specific data. Data at storage level: All storage location specific data. Data at Warehouse level: All warehouse specific data such as picking and placement strategies. Data at storage type level: Storage specific data such as bin location specific to the storage area. M aterial M aster: Organizational Levels D ata that is valid for the w hole com pany: F o r e x a m p le, m a te ria l n o., m a te ria l s h o rt te x t, m a te ria l group, base and alternative units of m easure,... Data that is valid within one plant: F o r e x a m p le, p u rc h a s in g d a ta, M R P d a ta, fo re c a s tin g d a ta, w o rk s c h e d u lin g d a ta,... Data that is valid for one storage location: For exam ple, storage bin description, picking area,... SAP AG 1999 VERSION 1.0 PAGE 26 OF 93
27 Views in the Material Master Record Data can be maintained and displayed in material master records using views. Just as data in the material master record is maintained for specific departments, such as quality assurance, sales or product planning, some of the data is used specifically by the Warehouse Management (WM) application. For example, when user maintain material data from the viewpoint of warehouse management, the system displays only the data that is relevant for the storage of the material in the warehouse. General data that is relevant for more than one view (for example, the material's description, its weight, and its volume) appears in several views. Organization Levels in Warehouse management for Material master maintenance data There are two organizational levels that can be defined for WM. In the WM view of the material master record, all the indicators and fields that are used for the entire warehouse number are entered at the warehouse number level. There is also a storage type level with all the indicators that apply to a single storage type but do not for the entire warehouse. If user enter a storage type for a material on the initial screen for the WM view, the system displays an additional section in which user can enter, for example, a fixed storage bin or a control quantity. These fields only apply to the storage type and not to the entire warehouse. Defining Warehouse Data in the Material Master The material master data for warehouse management system can be maintained separately or along with the other views. The procedure to be followed for the mater data maintenance is given below. If user want to create the material master data for a material for more than one storage area (storage type) for a warehouse, user have to create the data for each storage type warehouse combination in creation mode of material master. To define warehousing data in the material master: Choose Logistics _ Logistics Execution _ Master Data _ Material _ Material _ Create _ immediately from the SAP menu. Transaction code is MM To change data in the material master, choose Logistics _ Logistics Execution _Master Data_ Material _ Material _ Create _ immediately. Transaction code is MM02. The steps for changing data are basically the same as those described below. Using this function, user can overtype existing data in the material master record. Transaction code is MM02 and MM03 to display the material master. Integration The WM has integration with Material management (MM), Sales & Distribution (SD), Quality management (QM) and Production Planning (PP). VERSION 1.0 PAGE 27 OF 93
28 Warehouse Structure 4.1 General Description The Warehouse Management (WM) application provides flexible, automated support to assist in processing all goods movements and in maintaining current stock inventories in warehousing complex. WM supports warehousing processes like: Define and manage complex warehousing structures Optimize material flow using advanced put away and picking techniques Process goods receipts, goods issues and stock transfers quickly and easily The Warehouse Management application is fully integrated into the SAP R/3 system. Transactions that are initiated in other SAP components result in corresponding tasks in WM which activate the actual physical transfers within the warehouse. A few of these activities include: Goods receipt from the vendors. Inter plant stock transfers. Material movements and changes in material status, such as releasing goods from inspection Material staging to production supply areas Picking and shipping goods for sales orders Warehouse Number In Warehouse Management (WM), a complete physical warehouse is defined under a single warehouse number. Using the warehouse number, user can manage several individual warehouse buildings that, together, form a complete warehouse complex. The warehouse number encompasses the organizational and physical aspects of a warehousing complex as a single concept. Storage type It is a storage area in warehouse facility, or a warehouse zone that is defined in Warehouse Management (WM) for a warehouse number. This is a physical or logical subdivision of a warehouse complex that is characterized by its warehouse technique, the space used, its organizational form, or its function. A storage bin consists of one or several storage bins. VERSION 1.0 PAGE 28 OF 93
29 Broadly Storage Types can be defined as: Goods receipt area Goods Issue area. Bulk storage Open Storage High rack storage Picking area Shelf storage We will define the important control indicators at the storage type level that determine the material flow (put away and picking activities) and the way inventory is handled in each storage type. These include the control indicators for: Put away strategy Picking strategy For SPD (1050) plant the following storage types (areas) are finalized: Ambient Temperature Area A01 A02 A03 A04 A05 A06 A07 A08 A09 A10 A11 A12 A13 A14 A15 A16 A17 A18 UQ PM Gr.Flr Open Area UQ PM Gr.Flr App PM Gr.Flr Open Area App PM Gr.Flr UQ PM Printed materials Gr.Flr Open Area UQ PM Printed materials Gr.Flr App PM Printed materials Gr.Flr Open Area App PM Printed materials Gr.Flr Rej RM/PM Gr.Flr Open area Rej RM/PM Gr.Flr UQ PM Ist.Flr Open Area UQ PM Ist.Flr App PM Ist.Flr Open Area App PM Ist.Flr Rej PM Ist.Flr Open area Rej PM Ist.Flr Open area PM cellar (App/UQ) Open Area Solvents\Liquids VERSION 1.0 PAGE 29 OF 93
30 Cool Temperature Area C01 C02 C03 C04 C05 C06 C07 C08 C09 C10 C11 C12 C13 UQ RM Room Open Area UQ RM Room UQ RM Controlled Substance UQ RM Hazardus chemicals App RM Room Open Area App RM Room App RM Controlled Substance App RM Hazardus chemicals UQ PM for Labels App PM for Labels App & UQ FG Gr. Flr Open Area App & UQ FG Gr. Flr Rejected FG Gr. Flr Cold Temperature Area D01 D02 App/UQ/Rej for RM App/UQ/Rej for FG For BLD (1060) plant the following storage types (areas) are finalized: Ambient Temperature Area A01 UQ PM Room 1 A02 A03 A04 Open Area UQ PM Room1 Rej PM Room1 Open area Rej PM Room1 A05 App PM Room 1 A06 A07 A08 A09 Open Area App PM Room1 UQ PM Printed materials Open Area UQ PM Printed materials App PM Printed materials VERSION 1.0 PAGE 30 OF 93
31 A10 Open Area App PM Printed materials A11 App PM Room 2 A12 Open Area App PM Room2 Cool Temperature Area C01 C02 C03 C04 C05 C06 C07 Open Area UQ PM (PVDC/FOIL) App PM (PVDC/FOIL) Open Area App PM (PVDC/FOIL) UQ PM for Labels App PM for Labels Open Area FG ( App & UQ) Open Area FG ( Rejected) C08 UQ RM room 1 C09 C10 C11 C12 Open Area UQ RM room1 Rej RM Room1 Open Area Rej RM Room1 App RM Room1 C13 Open Area APP RM Room 1 C14 App RM Room2 C15 Open Area APP RM Room 2 Cold Temperature Area D01 Open Area RM (App/UQ/Rej) For ODF (1070) plant the following storage types (areas) are finalized: Ambient Temperature Area A01 UQ RM Room 1 A02 A03 Open Area UQ RM room1 Rej RM Room1 A04 UQ RM Controlled Room 1 VERSION 1.0 PAGE 31 OF 93
32 A05 UQ RM Room 2 A06 Open Area UQ RM room2 A07 App RM Controlled Room 1 A08 App RM Room1 A09 Open Area APP RM Room 1 A10 UQ RM Room 3 A11 Open Area UQ RM Room 3 A12 App RM Room2 A13 Open Area App RM Room 2 A14 A15 A16 A17 A18 A19 A20 A21 A22 A23 Op Area Solvents(App & Uq) App & UQ PM Op Area App & UQ PM Rejected area PM App & UQ PM printed UQ Misc App Misc Open area App Misc Open Area Rej RM Open Area Rej PM Cool Temperature Area C01 UQ RM room 1 C02 C03 C04 Open Area UQ RM room1 Rej RM Room1 App RM Room1 C05 Open Area APP RM Room 1 C06 App RM Room2 C07 Open Area APP RM Room 2 C08 UQ RM Room 2 C09 Open Area UQ RM room2 VERSION 1.0 PAGE 32 OF 93
33 C10 App RM Room3 C11 Open Area APP RM Room 3 C12 App RM Room4 C13 Open Area APP RM Room 4 C14 C15 C16 C17 C18 C19 C20 C21 C22 C23 C24 C25 C26 C27 C28 C29 C30 Bulk storage tanks (both App & UQ) open area Bulk storage cellar (both App & UQ) EHG capsule storage(both App & UQ) Op Area EHG caps storage(both App & UQ) App & UQ PM (PVC/ PVDC) Open Area App & UQ PM (PVC/ PVDC) App & UQ PM (Foil & Label) Open Area App & UQ PM (Foil & Label) Rejected area PM App & UQ FG Gr. Flr Open Area App & UQ FG Gr. Flr Rejected FG Gr. Flr App & UQ FG Ist. Flr Open Area App & UQ FG Ist. Flr Misc Mat. FG Gr. Flr Open Area Rej RM Open Area Rej PM Cold Temperature Area D01 D02 D03 D04 D05 UQ RM APP RM Rej RM Op Area UQ RM Op Area App RM VERSION 1.0 PAGE 33 OF 93
34 For Star (1080) plant the following storage types (areas) are finalized: Ambient Temperature Area Cool Temperature Area C01 C02 C03 C04 C05 C06 C07 C08 C09 C10 C11 C12 C13 C14 C15 UQ RM Gr. Flr Open Area UQ RM Gr. Flr Rej RM Gr. Flr App RM Gr. Flr Open Area APP RM Gr. Flr UQ RM Ist. Flr Open Area UQ RM Ist. Flr App RM Ist. Flr Open Area APP RM Ist. Flr UQ PM Gr.Flr Open Area UQ PM Gr.Flr App PM Gr.Flr Open Area App PM Gr.Flr Rej PM Gr.Flr Open area RM controlled Substance (App/UQ/Rej) Cold Temperature Area D01 Open Area RM (App/UQ/Rej) For SPD 2 (1090) plant the following storage types (areas) are finalized: Ambient Temperature Area A01 UQ PM Room 1 A02 A03 Open Area UQ PM Room1 Rej PM Room1 A04 App PM Room 1 A05 Open Area App PM room1 VERSION 1.0 PAGE 34 OF 93
35 Cool Temperature Area C01 UQ RM room 1 C02 C03 C04 Open Area UQ RM room1 Rej RM Room1 App RM Room1 C05 Open Area APP RM Room 1 Cold Temperature Area D01 Open Area RM (App/UQ/Rej) For GRL (1100) plant the following storage types (areas) are finalized: Ambient Temperature Area A01 A02 A03 A04 A05 UQ RM Gr. Flr Open Area UQ RM Gr. Flr Open Area UQ RM Gr. Flr Room2 App RM Gr. Flr Open Area App RM Gr. Flr A06 Open Area App RM Gr. Flr Room 2 A07 A08 A09 A10 A11 A12 A13 A14 Open area Rejected RM Gr. Flr UQ/App Printed PM Gr. Flr Open Area UQ/App Printed PM Gr. Flr UQ/App Printed Labels Gr. Flr UQ/App PM Gr. Flr Open Area UQ/App PM Gr. Flr Open area Rej PM Gr. Flr Open Area App/UQ/Rej FG Gr. Flr VERSION 1.0 PAGE 35 OF 93
36 Cool Temperature Area C01 C02 C03 C04 C05 C06 C07 UQ RM Gr. Flr Open Area UQ RM Gr. Flr App RM Gr. Flr Open Area App RM Gr. Flr Open area Rejected RM Gr. Flr UQ/App PM Gr. Flr Open Area UQ/App PM Gr. Flr Cold Temperature Area D01 Open Area RM (App/UQ/Rej) For QLS (3010) plant the following storage types (areas) are finalized: Ambient Temperature Area A01 A02 A03 A04 A05 A06 A07 A08 A09 A10 UQ PM Gr.Flr Open Area UQ PM Gr.Flr App PM Gr.Flr Open Area App PM Gr.Flr UQ PM Printed materials Gr.Flr Open Area UQ PM Printed materials Gr.Flr App PM Printed materials Gr.Flr Open Area App PM Printed materials Gr.Flr Rej PM Gr.Flr Open area Rej PM Gr.Flr Cool Temperature Area C01 C02 C03 C04 App & UQ FG Gr. Flr Open Area App & UQ FG Gr. Flr Rejected FG Gr. Flr Open area Rejected FG Gr. Flr VERSION 1.0 PAGE 36 OF 93
37 C05 C06 C07 C08 C09 C10 C11 C12 C13 UQ RM Gr. Flr Open Area UQ RM Gr. Flr App RM Gr. Flr Open Area App RM Gr. Flr Rejected RM Gr. Flr Open area Rejected RM Gr. Flr UQ PM for Labels App PM for Labels App RM Ist. Flr Cold Temperature Area The business requirement of SPD, BLD, QLS, ODF, SFF and GRL blocked storage area or rejected storage area, materials in this area should not be available for sales invoice i.e. for goods issue for either sales order or Process order. Customer return materials will go through the quality inspection and only quality rejected materials will be coming to customer return materials storage area. The materials in this area are not available for issue. The status of the materials in this area should be blocked. Interim Storage Areas Storage types that are commonly used by Inventory management and warehouse management are called Interim Storage Areas. The Inventory Management (IM) application component communicates with the Warehouse Management component through interim storage types. Goods receipts and issues posted in IM are automatically updated in WM in these interim storage types. Interim storage areas are: Goods receipt area Goods issue area Interim storage area for differences Posting change zone SAP has predefined intermediate Storage types starting the number with 9 series. Code Description 901 GR Area for Production 902 GR Area External Rcpts 904 Returns 910 GI Area General 911 GI Area for Cost Center VERSION 1.0 PAGE 37 OF 93
38 912 GI Area Customer Order 913 GI Area - Fixed Assets 914 GI Area Production Orders 915 Fixed Bin Picking Area 916 Shipping Area Deliveries 917 Quality Assurance 918 Goods Issue Area Contain. 920 Stock Transfers (plant) 921 Stock Transfers (StLoc) 922 Posting Change Area 923 Packaging Area 980 R/3 --> R/2 Cumulative 998 Init. Entry of Inv. Data 999 Differences VERSION 1.0 PAGE 38 OF 93
39 Stock Placement Using Storage Unit Types The Warehouse Management (WM) system allows user to use a number of different storage unit types when user transfer and store materials in the warehouse. For example, user can transfer materials on pallets of various sizes, such as European pallets or industrial pallets. Crates or pallets of materials that must be stored in different locations because of height or weight limits can be stored without unnecessary loss of space. Usage of Storage Unit Types: In order to use storage unit types user can 1. Define storage unit types in the material master record 2. Enter a storage unit type on the initial screen to create a transfer order without an originating document 3. Enter a storage unit type on the preparation screen for a transfer order When creating transfer orders, if user enters the storage unit type either on the initial screen or the preparation screen, the system uses the value user enter instead of the storage unit type in the material master record, if one is available. If user do not enter a storage type on the initial screen and user go to the preparation screen, the system uses the storage unit type defined in the material master record. If users do not enter a storage type on the initial screen and user goes to the item screen, the system does not propose a storage unit type, even if one has been defined in the material master. User must enter the storage unit type and then choose ENTER before the system will propose a storage type and bin. Following Storage Unit Types will me configured for Strides 105 U1 Pallet 105 U2 Common Unit 106 U1 Pallet 106 U2 Common Unit 107 U1 Pallet 107 U2 Common Unit 108 U1 Pallet 108 U2 Common Unit 109 U1 Pallet 109 U2 Common Unit VERSION 1.0 PAGE 39 OF 93
40 110 U1 Pallet 110 U2 Common Unit 301 U1 Pallet 301 U2 Common Unit Following Storage Bin type will be configured for the entire Warehouse. 105 B1 Racks 105 B2 Cup Board 105 B3 Compactor 105 B4 Bulk Tank 106 B1 Racks 106 B2 Cup Board 106 B3 Compactor 106 B4 Bulk Tank 107 B1 Racks 107 B2 Cup Board 107 B3 Compactor 107 B4 Bulk Tank 108 B1 Racks 108 B2 Cup Board 108 B3 Compactor 108 B4 Bulk Tank 109 B1 Racks 109 B2 Cup Board VERSION 1.0 PAGE 40 OF 93
41 109 B3 Compactor 109 B4 Bulk Tank 110 B1 Racks 110 B2 Cup Board 110 B3 Compactor 110 B4 Bulk Tank 301 B1 Racks 301 B2 Cup Board 301 B3 Compactor 301 B4 Bulk Tank VERSION 1.0 PAGE 41 OF 93
42 Storage Section: In Warehouse Management (WM), a storage section is an organizational subdivision of storage type that group s together storage bins with similar features for the purpose of putting away stock. The criteria for grouping bins can be defined on a user-individual basis, for example, heavy parts, bulky materials, fast-moving items, slow-moving items. Following Storage Section will be created for High Racks as per the current Rack Levels are available. L1 Level 1 L2 Level 2 L3 Level 3 L4 Level 4 L5 Level 5 L6 Level 6 L7 Level 7 L8 Level 8 L9 Level 9 Storage Bin: The storage bin is the smallest available unit of space in a warehouse. The storage bin therefore describes the position in the warehouse where the goods are or can be stored. Since the address of storage bin is frequently derived from a coordinate system, a storage bin is often referred to as a coordinate. The coordinate for example, can refer to a storage bin in row 1, stack 2, and level 3. User assigns each storage bin to a specific warehouse number and storage type according to its location. User must also assign each storage bin to a storage section. User can also define the following additional characteristics of a storage bin: Maximum weight Total capacity Fire containment section VERSION 1.0 PAGE 42 OF 93
43 Storing Materials in storage bins: The WM system manages both homogeneous and mixed storage in storage bins. 1. Homogeneous Storage Homogeneous storage is the storage of only one material number in a storage bin. User can define a storage type so that only one material can be stored in each available storage bin. Bulk storage areas are set up so that one line or block contains only one material number. For example, materials such as cases filled with beverages, bottled gas and pallets of cement blocks and other construction materials are stored homogeneously in bulk storage areas. This method is preferable when large quantities of the same material are stored in a warehouse. 2. Mixed Storage When user define mixed storage for a storage type in your warehousing complex, it is possible to store two or more materials (quants) in each storage bin. There is no standard strategy in WM that automatically would place material together with another material that is already stored in a storage bin. User will manually place the different stock with physical bin partition. Mixed storage is particularly useful when user have smaller quantities of several material numbers that need to be stored in the same storage area. Often, slower moving items are stored in mixed storage areas. Homogeneous storage would not be useful here, because that would mean that only a few boxes might be stored in each storage bin. Activities: Creating a single storage bin From the SAP Menu, choose Logistics _ Logistics Execution _ Master Data _Warehouse _Storage Bin _ Create Manually. Transaction code is LS01. Creating several storage bins simultaneously To create a group of storage bins with similar characteristics, user defines a template with the coordinate structure as follows: From the SAP menu choose Logistics_ Logistics Execution _ Master Data _ Warehouse _Storage Bin _ Create _ automatically. Transaction code is LS10 Blocking and Unblocking Storage Bins In WMS will give flexibility of blocking storage bins for put away as well as for picking. User must block any storage bins that are no longer accessible, that have been damaged or are to be renovated, or when put away or picks are not possible. User can block or unblock storage bins VERSION 1.0 PAGE 43 OF 93
44 Selectively On the basis of rows In bulk storage with a time limit for put away For the whole storage type Quant: Quant is the stock of any material with the same features in one storage bin. The system manages different batches of a material as different quant. The quantity of a quant can be increased by an addition to existing stock. Quant can be created or deleted solely through goods movements. The quant serves to manage stocks at storage bin level. When goods are stored in empty storage bin in WM, the system automatically creates a quant in this bin. The system automatically assigns a quant number. The quant is automatically deleted by the system when the material quantity is picked. In the quant record, the system manages the data of the materials grouped in the quant. This data includes: Quant identification Plant Material number Batch number Stock category Special stock indicator and number The different types of stock (categories) and special stock are passed to WM from IM and serve as stock separation characteristics in the quant. WM has neither stock categories nor any special stock types of its own. Since it is possible to manage stocks from different plants within one warehouse complex number, the plant must also exist as a stock separation characteristic in the quant. Since the system automatically assigns a quant number to each separate quant in WM, the system can optimize material flow and manage stock in the warehouse more efficiently. VERSION 1.0 PAGE 44 OF 93
45 Shelf life expiration date (SLED) The SLED field only exists in the quant when shelf life management is active in Materials Management (MM). This happens when the material master is maintained accordingly. During a stock placement in MM user can enter either the production date or the shelf life expiration date. This depends upon whether the field Remaining shelf life has been maintained in the material master record. For example, if 10 days have been entered into this field, the system assumes that when goods are received, the production date was entered and calculates the shelf life automatically. If user leaves this field empty in the material master, the system makes it possible for user to directly enter the shelf life expiration date. This date that is entered or calculated during the goods receipt is then noted in the quant that is created in the storage bin. If user adds stock to an existing quant in a storage bin, the shelf life expiration date of the new quantity that is added is lost. Enter the shelf life data into the storage view of the material master record. This data includes: Maximum time a material can be stored Minimum shelf life a material must have available to be accepted by the system Percentage of the total shelf life that must still be available if the goods are to be sent to another distribution point Time unit used for the shelf life data (days, weeks or years) Total number of days that the goods can be kept from production to the shelf life expiration date Number Ranges Warehouse Management (WM) numbers many objects in the warehouse on a continual basis. The assignment of number ranges provides an orderly sequencing system for several functions within WM. Assigning Number Ranges Number ranges for the following objects in the Warehouse Management can be defined as: Transfer requirements Transfer orders Posting change notices Physical Inventory VERSION 1.0 PAGE 45 OF 93
46 Following Number Ranges are defined for the above documents for the identification of documents. Plant WH Doc No. For TR Doc No. For TO Plant Description code No From To From To 1050 Sterile Products Division Beta Lactam Division Oral Dosage Forms Formulation Development Sterile Facilities Formulation Global Remedies Limited Quantum Life Sciences Plant WH Doc No. For PCN Doc No. For Quant Plant Description code No From To From To 1050 Sterile Products Division Beta Lactam Division Oral Dosage Forms Formulation Development Sterile Facilities Formulation Global Remedies Limited Quantum Life Sciences Plant WH Doc No. For Phy.Inv Doc No. For Phy.Inv-TO Plant Description code No From To From To 1050 Sterile Products Division Beta Lactam Division Oral Dosage Forms Formulation Development Sterile Facilities Formulation Global Remedies Limited Quantum Life Sciences VERSION 1.0 PAGE 46 OF 93
47 Types of Stocks: Special Stock: Special stock is managed separately in the Warehouse Management (WM) application for reasons of ownership or for various factors reflecting the location in which they are kept. Each type of special stock is assigned a special stock indicator to aid in managing it in the system. Special stock characteristics assigned during goods movements transactions in the IM component are displayed on WM screens and taken into consideration when processing stock in WM. Types of special stock using WMS: 1. Individual Customer (Sales Order) Stock (E) Individual customer (make-to-order) stock is managed in WM using a special stock number and the special stock indicator E. 2. Consignment Stock (K) Stock of materials made available by the vendor and stored on the premises of the ordering party. This stock remains in the ownership of the vendor until it is removed from the warehouse and used for production purposes or taken over into the company's own valuated stock. Consignment stock is managed in WM using a special stock number and the special stock indicator K. The special stock number for consignment stock is the same as the supplier (vendor) number. 3. Project Stock (Q) Material which is held in the warehouse for the completion of a project. For project stock, the system checks to see whether a corresponding master record exists. VERSION 1.0 PAGE 47 OF 93
48 Stock Category In WM, it is important to know what quantity of a stock is in a particular storage bin, but also its status and whether or not it is available. Stock in the warehouse is categorized in WM as follows: 1. Available Stock Unrestricted-use stock that is physically located in the warehouse, valuated, and not subject to any kind of usage restrictions. User can carry out all stock movements for this stock to include stock transfers, put away and picking. 2. Inspection Stock This stock carries the stock category Q to indicate that it is in quality inspection. Stock in quality inspection has been valuated but does not count as unrestricted-use stock. The Quality Management inspection data in the QM view of the material master determines whether a percentage of stock is to be designated as inspection stock when it is received in the warehouse. Once this stock has been inspected and a usage decision has been made, User carry out a transfer posting in the Inventory Management component and subsequent Posting Change in WM to remove the category Q, thus converting it to available stock. 3. Blocked Stock In IM it is possible to designate goods as blocked stock. These materials are a company's own stock that should not be used. Stock can be blocked, for example, because it has been damaged and for various other reasons. This stock is displayed in WM with a stock category of S. This stock is processed in exactly the same manner as inspection stock. 4. Blocked Stock Returns When delivered goods are returned by a customer, they are first posted in the system to blocked stock returns with a stock category of R. This stock is neither valuated nor is it considered to be unrestricted-use stock. It is possible store this stock in the warehouse. User must carry out a posting change to return it to available stock. Status of Stock in the Warehouse When goods arrive in the warehouse, they are usually received in the Goods Receipt Area (GR Area) near the receiving dock. Later, they are transferred using a transfer order to Under Quarantine within the warehouse. In some cases, goods can moved directly to fixed bins. During the period of time when move orders have been created for the movement of goods between the various storage types that have not been fully processed, two availability statuses exist for this stock which has not yet been moved. When warehouse evaluation lists are displayed for this material, these goods appear on the display lists under the following three headers: VERSION 1.0 PAGE 48 OF 93
49 1. Quantity or Total Stock This designator usually appears at the top of many stock display lists. This is the total quantity of material quants stored in the warehouse that does not include quantities for planned put away and picks. For the display of materials in a bin, the total quantity in each storage bin is also displayed. 2. Stock Placement This column designator appears in some stock lists. The system has created a transfer order for this stock to move it from one storage bin to another. It has been marked for put away (storage) in the warehouse. 3. Stock Removal This is also a column designator that appears in some stock lists. A transfer order has been created to pick this stock from a storage bin in the warehouse. In most cases, this stock will be transferred to a storage bin in the goods issue area. 4.2 Put away and Picking Strategies Put away and picking strategies are used in Warehouse Management system to optimize the storage / removal of goods in the warehouse. For inbound movements, in conjunction with controls entered in the material master record, the put away strategies assist the WM system to utilize the available warehouse capacity, automatically assigning optimum locations for goods received in the warehouse. For outbound movements, the system uses similar user-defined controls to execute the appropriate picking strategy to assign the best picking location. If user decides to manually process certain stock movements, user can change source and destination storage bins that are automatically proposed by the system. When the system creates transfer orders to move goods into or out of the warehouse, user does not have to intervene when it comes to finding storage bins. This guarantees that stock movements are processed quickly and consistently. For SPD, BLD, QLS, ODF, SFF and GRL plants the following strategies are finalized: 1. Put away strategy: The Addition to existing stock (I) strategy will be followed for placing the materials in the warehouse. The default location for a material will be identified in each storage area for the materials. As the warehouse is divided into many storage areas as explained above, a default location will be identified and same will be maintained in material master for the combination of material storage area in each warehouse. With this strategy, during the Transfer order (TO) against goods receipt (GR) the default location will be captured which is maintained in material master during the first TO transaction. Materials can be placed other than the default location. If user change the material location other than default location, for the subsequent TO creation system will pick the material bin based on the last placement / TO. VERSION 1.0 PAGE 49 OF 93
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