Cycle Counting Optimization for Warehouse Management Wesley Dean MillerCoors Supported by: Produced by:
Presentation Introduction & Overview Cycle Counting Issues Thorough Investigation Resolutions Reporting Key Points to take home Questions
Introduction & Overview MillerCoors - SAP Maintenance Storerooms 5 SAP Plants 2 Breweries, 3 Container Sites (Cans, End, Glass) Shenandoah Brewery has over 11,000 stocked materials Golden Brewery has over 19,000 stocked materials The Container Sites in Golden have about 19,000; 4,000; 10,000 stocked materials respectively
Storeroom Cycle Count Audit Storeroom s get yearly audits on the Cycle Counting procedures This last year, an audit brought up several materials missing a cycle count at the Brewery in Virginia Slide 4
SAP Cycle Counting Methods SAP Cycle Counting has a few ways it can be done A) Yearly Cycle Counts Cycle Count the whole warehouse at one time B) Continuous Cycle Count Cycle counts a number of materials daily MM02 Slide 5
Slide 6 What is causing the Cycle Counting errors? That site needed help finding out why certain materials were missing getting Cycle Counted Master Data Configuration Business Process Reporting Daily Batch Jobs
Material Master Data For those materials missing the cycle counts, is the master data complete and correct? Do the stocked materials have their master data setup with an A,B,C,D value? Does the Bin Number where the Materials are stocked match the Storage Bin in the Master Data? MM02 Slide 7
Business Processes Regarding Business Processes, how did the storeroom: Setup materials in the bins. One to One; Many to One; Do Goods Issues, Receipts and Transfers Do their Cycle Counting Procedures incl. LI20 & LI21 Delete Cycle Counting for the day if certain things happen like Vacation; Holidays; Call off s; etc Slide 8
Configuration Configuration Options: 1. Bins setup for Mixed Storage 2. The Placement Inventory and Zero Check In PZ What happens to a Material s Cycle Counting Planned Date when certain SAP movements occur? SPRO Slide 9
Batch Jobs Lastly, was there anything else that might be affecting certain materials from being counted? SM37 shows the Cycle Counting job for the last couple of days LX22 shows all the Cycle Counts LX22 Slide 10
Findings and Suggestions 1) Explained how SAP works in the WM module (Bin vs. Material) 2) Certain business process needed to be changed 3) Some configuration was missing 4) The daily batch jobs looked ok. Slide 11
Design and Test To make sure the suggestions would correct the problem, in the Quality box: The configuration change was moved to the Quality box The test material master data was changed and the materials were moved to single bins The design tested all Goods Movements like: Cycle Counting Goods Receipts Goods Issues Bin2Bin Transfers Slide 12
The changes went in to the Production Box The initial testing in PRD worked great But the next morning.. Stores could not receive inventory.. Relooked at the configuration changes. Issue - Single material per bin Changed the configuration back to allow Mixed Storage Stores were able to receive Materials in to their Receiving Bin. Slide 13
Retest To keep One Material per Bin, we went from having a Configuration Setting to changing the Business Process. Went back in to the Quality box and retested the complete Business Process for: 1) Goods Receipt 2) Goods Issue 3) Goods Transfer 4) Cycle Counting Slide 14
Massive Data Changes LSMW or CATS jobs MM02 Slide 15
Reporting Some current SAP reports that show Cycle Counting data is LS03N, LX22, LI15, etc LS03N shows how SAP works at the WM level for Cycle Counting LS03N Slide 16
Slide 17 LI15 Evaluation of Quant Inventory The Cycle Counting data is in Table LINV so a Query or a BW Report can provide the Actual Information LI15
SAP Query or SAP BW Report Slide 18
Some of the wins experienced from this change Cycle Counting is now more accurate All stocked materials are getting Counted The Cycle Counting process has improved its overall efficiency Another win is clerks like having the materials in separate bins. It helps them find the material quicker for cycle counting or any types of warehouse movement. Slide 19
Some Key Points to Take Home 1. When problems arise investigate all avenues, like: The Business Process side Master Data Configuration Programming Batch Jobs 2. As you setup testing for the changes being made, make sure you test all possible scenarios that might be affected by the change
Wesley Dean MillerCoors Wesley.Dean@MillerCoors.com Supported by: Produced by: