futureproofing our business with a strategic move to sap ... · management (ewm) ewm is the new...

#NP#_J ZBva4MwEMa/SsmrjdVVW7XqO+ufr bNuQpFSCIQsjVQmSUh0G5R+m36TfbFdNjiO5577HXfcBTGGkgvS3faEEuS5LoRN6DqHlvXwIqcjv/OCVRiso8gPwnD5YLF7vEBzdOrt PAVwQ83A9az4pGC/W6fumZZGduOskV9cN7IXox3Z5t Bsdy91u34+t Otjf Hz1sr Kt 8qJ q3uIakE4BkSUYt 4Zr g7FiVNATBZVz8zFKhfGK1D83IQZOKsnPsJ k8aTkpsk8bkknRcc0F42Q/McaN6aaB7Ogk2J nI jhSHmixdL3pUavyGder/ JFDjn4izYFM UZeQAEzt+tMmdOLBl7KdpUIbesoAPXX8B_#NP#

Futureproofing our Business with a Strategic Move to

SAP Extended Warehouse Management


18.10.2018 / Kürzel / 2

Contents

1. The Koehler Paper Group

2. Short explanation of Extended Warehouse Management

3. Our strategic decision to replace our current Warehouse Management to SAP Extended Warehouse Management

4. The pilot project

5. Business impact and benefits realized as a result of SAP EWM project

6. IT experiences with the new system

7. Next steps in the Koehler Paper Group


18.10.2018 / Kürzel / 3

The Koehler Paper Group

Koehler Kehl GmbHKehl

Koehler Greiz GmbH & Co. KG Greiz

Katz GmbH & Co. KGWeisenbach

Papierfabrik August Koehler SEOberkirch


18.10.2018 / Kürzel / 4

The Koehler Paper Group

▪ The Koehler Group was founded in 1807

▪ Eight generation family owned company

▪ More than 1,800 employees

▪ In total 7 paper machines and 1 board machine

▪ Divisions:

▪ Thermal paper

▪ Carbonless paper

▪ FineTech paper and ColorTech paper

▪ Decor paper

▪ Coasters


18.10.2018 / Kürzel / 5

Short explanation of Extended Warehouse Management (EWM)

▪ EWM is the new Warehouse Management solution from SAP

▪ It replaces the older Warehouse Management (WM)

▪ It offers new or advanced features compared to the WM

▪ e.g. creation of warehouse orders and tasks

▪ radio frequency (scanner) functions

▪ There are two installation options

ERP EWM

Standalone EWM Embedded EWM

EWMERP


18.10.2018 / Kürzel / 6

2025: SAP technology S/4 HANA moves closer

Our strategic decision to to replace our current Warehouse Management to SAP Extended Warehouse Management

▪ Current status in the Koehler Group:

▪ All four production plants use the Warehouse Management

▪ The classic system WM will be (presumably) deactivated at the end of 2025

▪ Strategic decision:

▪ Koehler needs to be prepared for S/4 HANA

▪ The system EWM will be introduced in all plants EWM


18.10.2018 / Kürzel / 7

▪ Current status in the Koehler Group:

▪ Only a short time window is available for downtimes of the SAP systems

▪ Need a chance to update the systems

▪ Strategic decision:

▪ EWM should work independently from ERP system

▪ The standalone installation was implemented already for the pilot plant

Autonomous of the SAP ERP

Our strategic decision to replace our current Warehouse Management to SAP Extended Warehouse Management

ERP EWM


18.10.2018 / Kürzel / 8

The pilot project

▪ Project name: Beaver

▪ Start: 1st October 2017

▪ IT Go Live: 1st May 2018

▪ New location in Willstätt, Germany

▪ The Koehler Group is responsible for the IT

▪ Beaver is well suited as pilot project

▪ Complete new plant

▪ Manageable processes

▪ No migration required


18.10.2018 / Kürzel / 9

The pilot project

▪ Characteristics

▪ Lower quantities and sizes than usual in the Koehler Group

▪ Multiple Handling Units (HU’s)

▪ “Make to stock“ - no “Make to order“

▪ What was the central focus?

▪ Are there any advantages or disadvantages of EWM?

▪ How does the integration work with the ERP release?

▪ Are there any restrictions in the processes and functionalities?


18.10.2018 / Kürzel / 10

Business impact and benefits realized as a result of SAP EWM project

▪ There are now two separate systems: ERP and EWM

▪ Logistic and commercial services are clearly separated now

Commercial employee

▪ Works on ERP▪ Knows the quantity of the material

management (product level)▪ No HU’s are visible in the ERP system▪ Known transactions in most cases

unusable

Logistics employee

▪ Works on EWM▪ Knows the exact quantity of each

HU and the corresponding storage place

▪ Works the most time with mobile devices


18.10.2018 / Kürzel / 11

▪ During the entire EWM-process, the ERP delivery is blocked for changes

▪ There are many new documents with different number ranges, which confuse the employees

ERP

Customer Order

OutboundDelivery

EWM

WarehouseProcessing


Outbound Delivery Request

Outbound Delivery Order

Outbound Delivery


18.10.2018 / Kürzel / 12

▪ Master data of the product have to be created and maintained two times:

▪ 1st time (ERP): master data of the material (CIF)

▪ 2nd time (EWM): warehouse master data special for logistic

▪ SAP offers a large number of transactions

▪ The core transaction is the warehouse management monitor

▪ Also a new mobile device functionality is included

▪ Mobile device software was modified with Mobisys

▪ More flexible in the user interface(size, color, verification of fields, buttons)

▪ Display orientation fits to the mobile device

▪ Positive feedback from the employees



18.10.2018 / Kürzel / 13


▪ Example of mobile device screens


18.10.2018 / Kürzel / 14

IT experiences with the new system

▪ New know-how was necessary in the IT

▪ Especially the communication between the systems ERP, EWM, MES*

▪ The old WM was mainly driven by own programming

▪ The technology of the interface of the standalone EWM is comparable to SAP APO*

▪ Data are transferred in two ways:

▪ CIF: Master data - by a daily job

▪ qRFC: Transaction data - by creation or change

▪ The interface is based on inbound / outbound deliveries

*MES = Manufacturing Execution System *APO = Advanced Planning and Optimizing


18.10.2018 / Kürzel / 15


▪ Communication with the MES:

ERP EWM MES

Standalone Systems

MM of HU feedback

MM of HUfeedback

Production order feedback


18.10.2018 / Kürzel / 16


Inbound Delivery

▪ Goods receipt of a purchase order

▪ Goods receipt of a production order

Processes:

1. Purchase Order / Production Order

2. Inbound Delivery

3. Goods receipt of each HU

4. Transfer to a storage location

▪ We work without a storage strategy

▪ Employees need to confirm the storage location (mobile device)


18.10.2018 / Kürzel / 17


Outbound Delivery

Process:

1. Customer Order

2. Outbound Delivery

3. Warehouse Process

4. Goods Issue Posting

▪ We use the FIFO strategy

▪ Mixed with a quantity based strategy


18.10.2018 / Kürzel / 18


Outbound Delivery

Warehouse Process (SAP standard):

Outbound DeliveryOrder

WaveWarehouse Tasks

Warehouse Order

Logisticanstarts picking

Outbound Delivery


18.10.2018 / Kürzel / 19


▪ Koehler has the current ERP version ECC 6.0

▪ That leads to some restrictions in the functionalities

1. Base unit

▪ Customer order allows alternative unit of measurements

▪ Problem is the conversion factor on ERP side

1 palette = 24 rolls

▪ Solution: Only base units are allowed in the customer order


18.10.2018 / Kürzel / 20


2. Picking info

▪ Problem: when there are more than one position in the customer order the ERP system throws an error. The correct delivery feedback is not possible.

EWM ERP

▪ Solution: Own coding was necessary

1. product

2. product

3. product

1. product

2. product

3. product

picked


18.10.2018 / Kürzel / 21

3. Product classification

▪ The classification of the product (class 001) will not be sent to the EWM automatically

ERP EWM

▪ Solution: Dummy change in the classification


CL


18.10.2018 / Kürzel / 22


▪ Most new programming on EWM side:

▪ Communication with MES

▪ Adjustment on both sides

▪ Weight calculation

▪ Gross weight / net weight / tare

▪ SAP standard not equal to Koehler standard

▪ Processes in the warehouse

▪ Repacking

▪ Re-storage after picking

▪ …


18.10.2018 / Kürzel / 23

Next steps in the Koehler Paper Group

▪ First step in our S/4 HANA strategy is already done

▪ Now we know the special details and requirements of EWM

▪ Knowledge is available for the next projects

▪ In the next years we will roll out EWM to all our plants


18.10.2018 / Kürzel / 24

Futureproofing our Business with a Strategic Move to

SAP Extended Warehouse Management

International SAP Conference for Forest Products, Paper and Packaging

17-18 October, 2018 – Prague, Czech Republic

Irena Männle

Koehler Paper Group

futureproofing our business with a strategic move to sap ... · management (ewm) ewm is the new...

Documents