Table of Contents

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Preface
15
Who This Book Is For
16
How This Book Is Organized
17
Acknowledgments
19
Conclusion
20
1 Introduction to SAP S/4HANA and SAP Fiori
21
1.1 SAP HANA Database
22
1.1.1 Basics
22
1.1.2 In-Memory Database Limitations and Mitigation Strategies
24
1.1.3 Database Benefits and Features
27
1.2 A New Data Model
29
1.2.1 Material Documents (Table MATDOC)
29
1.2.2 Accounting Documents (Table ACDOCA)
37
1.3 Functional Changes
37
1.3.1 Simplification List
37
1.3.2 Industry Solution Retrofitting
38
1.4 SAP Fiori
38
1.4.1 A New User Paradigm
39
1.4.2 SAP Fiori Applications
41
1.4.3 SAP Fiori Launchpad
50
1.5 Summary
64
2 Inventory Management Basics
65
2.1 Inventory as a Staple of the Supply Chain
65
2.2 End-User Role Templates
68
2.3 Key Considerations
69
2.3.1 Service Levels, Inventory Costs, and Operational Profit
69
2.3.2 Lot Sizes, Replenishment Times, and Safety Stocks
71
2.3.3 Local versus Global Inventory Management
74
2.3.4 New Technologies
75
2.4 Inventory Optimization in SAP S/4HANA
79
2.4.1 Optimization Schema
79
2.4.2 Plan and Adjust
82
2.4.3 Execute
82
2.4.4 Analyze
84
2.5 Summary
85
3 Configuring Inventory Management
87
3.1 Implementation Guide Configuration
87
3.1.1 Implementation Guide Overview
88
3.1.2 Organizational Units
91
3.1.3 Inventory Management
95
3.1.4 Procurement
112
3.1.5 Logistics Execution
119
3.1.6 Production Planning
119
3.2 Cross Functions
125
3.2.1 Date Functions
125
3.2.2 Responsibility Management
127
3.2.3 Situation Handling
130
3.2.4 Extensibility
136
3.3 Servers
143
3.3.1 Frontend
144
3.3.2 Backend
146
3.4 Basic Interfaces
147
3.5 SAP Fiori
148
3.5.1 SAP Fiori Entities
149
3.5.2 Roles and Users
150
3.5.3 SAP Fiori Apps Reference Library
153
3.6 Summary
155
4 Planning and Adjusting Inventory
157
4.1 Planning Strategies
158
4.1.1 Production Planning
160
4.1.2 Discrete versus Process Manufacturing
163
4.1.3 Demand-Driven versus Plan-Driven Planning
163
4.2 Production Master Data Overview
165
4.2.1 Bill of Material
165
4.2.2 Work Center/Resource
166
4.2.3 Routing/Master Recipe
166
4.2.4 Production Version
166
4.2.5 Production Supply Area
167
4.3 MRP Overview
167
4.3.1 Generic MRP Capabilities in SAP S/4HANA
168
4.3.2 Planning Process
168
4.3.3 MRP Live
171
4.3.4 DDMRP
172
4.4 Kanban Overview
173
4.5 Capacity Planning and Production Master Data
174
4.5.1 Manage Work Center Capacity
174
4.5.2 Display BOM, Display Multilevel BOM Explosion, and Find BOM for Components
176
4.5.3 Display Routing/Display Master Recipe
180
4.6 Make-to-Order and Make-to-Stock
182
4.7 MRP Live
186
4.7.1 Monitor Requirements and Material Coverage
186
4.7.2 Manage Planned Orders
201
4.7.3 Convert Planned Orders
201
4.7.4 Schedule MRP Runs
202
4.7.5 Display MRP Key Figures
207
4.7.6 Display MRP Master Data Issues
211
4.7.7 Monitor External Requirements
212
4.7.8 Monitor Internal Requirements
214
4.7.9 Detect Unnecessary Supply Elements
217
4.8 DDMRP
221
4.8.1 Configuration Process
221
4.8.2 Buffer Profile Maintenance
222
4.8.3 Product Classification: Mass Maintenance of Products
223
4.8.4 Buffer Adjustment
225
4.8.5 Product Classification: Schedule Product Classification
226
4.8.6 Buffer Positioning
228
4.8.7 Schedule Lead Time Classification of Products
231
4.8.8 Schedule Buffer Proposal Calculation
233
4.8.9 Manage Buffer Levels
236
4.8.10 Planners Overview
243
4.8.11 Replenishment Planning
244
4.8.12 Replenishment Execution
246
4.9 Kanban
248
4.9.1 Manage Control Cycle
248
4.9.2 Summarized JIT Call Scheduler
252
4.9.3 Kanban Calculation
254
4.10 What’s Ahead for Inventory Planning and Adjustment?
255
4.10.1 Prerequisites
255
4.10.2 Schedule Predictive MRP Simulation Creation
256
4.10.3 Process Predictive MRP Simulations
260
4.11 Summary
262
5 Goods Receipt
263
5.1 Purchase Order
263
5.1.1 Purchase Orders for Inventory
264
5.1.2 Stock-Related Procurement
268
5.2 Inbound Delivery
272
5.3 Production Order
274
5.4 Goods Receipt without Reference
275
5.5 Process Variants
277
5.5.1 Batch-Managed Materials
277
5.5.2 Goods Receipt Blocked Stock
280
5.5.3 Mandatory Quality Inspection
280
5.5.4 Decentralized Warehouse Management
281
5.5.5 Return Delivery
281
5.5.6 Single- or Multi-Account Assignment
282
5.6 What’s Ahead for Goods Receipt?
285
5.7 Summary
285
6 Core Inventory Management
287
6.1 Monitoring Core Inventory Documents
288
6.1.1 Material Document Components
288
6.1.2 Use Enterprise Search to Identify Inventory Documents
289
6.1.3 Material Documents Overview
291
6.1.4 Analyze the Document Flow via the Material Document Object Page
296
6.2 Stock Identification
298
6.2.1 Stock – Single Material
299
6.2.2 Stock – Multiple Materials
305
6.2.3 Display Stock Overview
307
6.3 Stock Transfer
309
6.3.1 Stock Transfer – In-Plant
310
6.3.2 Transfer Stock – Cross-Plant
314
6.3.3 Post Goods Movement
316
6.3.4 Working with Stock Transport Orders
318
6.4 Initial Entry and Scrapping
321
6.4.1 Manage Stock
321
6.4.2 Post Goods Movement
324
6.5 Reversals
325
6.5.1 Reversals within the Material Document Object Page
326
6.5.2 Partial Material Document Reversal
326
6.6 Physical Inventory
327
6.6.1 Physical Inventory Phases
328
6.6.2 Create Physical Inventory Documents
330
6.6.3 Enter Inventory Count
333
6.6.4 Process Physical Inventory Count Results
334
6.6.5 Physical Inventory Document Overview
335
6.7 What’s Ahead for Core Inventory?
337
6.8 Summary
338
7 Production Execution
339
7.1 Working with Reservations
340
7.1.1 Automatic Creation of Reservations
341
7.1.2 Manual Reservation Management
341
7.1.3 Display Reservation List
343
7.2 Scheduling and Manufacturing Execution
345
7.2.1 Schedule Production
345
7.2.2 Monitor Work Center Schedules
349
7.2.3 Stock Requirements List
351
7.2.4 Display Planned Orders, Production Orders, and Process Orders
352
7.2.5 Manage Change Requests
356
7.2.6 Check Material Coverage
359
7.2.7 Monitor Production Orders and Process Orders
359
7.2.8 Manage Production Orders
364
7.2.9 Confirm Production Operations
370
7.2.10 Create Goods Receipt for Production Order
372
7.3 Production Performance Monitoring
372
7.3.1 Material Scrap
372
7.3.2 Operation Scrap
374
7.3.3 Scrap Reason
375
7.3.4 Excess Component Consumption
377
7.3.5 Monitor Production Execution Duration
379
7.4 Working with Kanban
380
7.4.1 Display Kanban (Demand View)
380
7.4.2 Display Kanban (Supply View)
383
7.4.3 Due Replenishment Elements
384
7.4.4 Correct Kanban
386
7.4.5 Unlock Kanban Container
387
7.4.6 Collective Kanban Print
387
7.4.7 Set Kanban Container Status
388
7.5 What’s Ahead for Production Execution?
389
7.6 Summary
392
8 Inventory Analysis
395
8.1 Inventory Analytics in SAP S/4HANA
396
8.1.1 Advances in Analytics
396
8.1.2 Choosing the Right Analytics Tool
397
8.2 Posted Stock Change Analysis
398
8.2.1 Stock Single Material and Stock Multiple Materials
398
8.2.2 Goods Movement Analysis
398
8.2.3 Physical Inventory Document Analysis
403
8.3 Key Performance Indicator Monitoring and Analysis
404
8.3.1 Overview Pages
404
8.3.2 Inventory Turnover Analysis
409
8.3.3 Inventory (Multiple) Key Performance Indicator Analysis
413
8.3.4 Material Valuation
419
8.4 Process Analysis Tools
419
8.4.1 Dead Stock Analysis
420
8.4.2 Slow or Non-Moving Materials
421
8.4.3 Overdue Stock in Transit
425
8.4.4 Overdue Goods Receipt Blocked Stock
427
8.5 Custom Queries
428
8.6 What’s Ahead for Analytics?
433
8.7 Summary
437
9 Inventory Management in the Cloud
439
9.1 SAP S/4HANA Cloud
440
9.1.1 Solution Scope
441
9.1.2 Implementation Methodology
447
9.1.3 Configuration and Fine-Tuning
448
9.1.4 Update Cycle
453
9.2 Hybrid Deployment
453
9.2.1 SAP S/4HANA and SAP S/4HANA Cloud
454
9.2.2 Decentralized Warehouse Management
457
9.2.3 Digital Procurement, Sourcing, and Supply Chain Process with SAP Ariba
459
9.3 SAP Cloud Solutions
460
9.3.1 SAP Cloud Platform
460
9.3.2 SAP Analytics Cloud
460
9.3.3 SAP API Business Hub
464
9.3.4 SAP Leonardo Internet of Things
475
9.4 Summary
478
The Authors
479
Index
481