Managing packaging units from creation in production to delivery with solution MySAP in Cimos company

Transcription

1 Managing packaging units from creation in production to delivery with solution MySAP in Cimos company Elvis Marion Faculty of Organizational Sciences, University of Maribor ABSTRACT In the company Cimos d. d. we strive to control each handling unit during the processes of production, warehousing and dispatching. Our goal is to increase material management control efficiency, reduce error threats and improve support to logistic processes. We will do this by MySAP HUM (handling unit management) module implementation and SITMobile program installation, which will ensure direct data input with mobile devices into the information system. The solution will enable us to work with any mobile device that has installed web browser, which can be connected to local network. By using mobile devices, we will considerably reduce paper work, shorten MySAP enterprise resource planning system data entry delay and enable material movement data verification. KEYWORDS - Enterprise resource planning system - HUM (handling unit management) - Mobile device - MySAP - Material management - Logistic process INTRODUCTION In Cimos we are creating a new path in the field of development and production of automotive components. We are an internationally recognized supplier to worldwide automobile manufacturers, as well as to major system suppliers of automobile manufacturers. Besides our core activity in the automotive sphere we develop the area of agricultural machinery and investment equipment. We realized that manual input of material movement data into MySAP system represents significant error threat. Besides, such data input is done with too large and for contemporary manner of business unacceptable delays. From here to decision, that data input into information system has to be automated, it wasn't such far any more. With this we will abolish mistakes because of human factor in the largest possible measures. Although we realized the urgency of the automated data input into information system alone, the customers demands contributed to final decision, that the modern information technologies have to be adopted. 1/6

2 Some more important customers demands: PSA corporation (Citroën, Peugeot) demands handling units marking and advising their serial numbers in delivery note and electronic document EDIFACT (electronic data interchange for administration, commerce and transport), BMW company demands provable conformity to handling units with sales order checking, all customers demand provable and consistent respect of FIFO (first in first out) method during dispatch. SOLUTION Introduced solution foresees MySAP HUM module implementation and SITMobile program installation. SITMobile is program of Austrian company SAPPHIR IT & Management Consulting GmbH, which supports work with mobile devices. By using bar code labels for each handling unit, entering data into MySAP with mobile devices and MySAP HUM module implementation, we improved control of each handling unit from creation in production to delivery to customer. Data is not entered into information system manually any more, but directly with mobile devices. In this way we improved data quality, increased material management control efficiency and shortened MySAP data entry delay. Support to logistic processes is improved and with this deciding of responsible managers is eased. EXISTENT PROCESS Figure 1: Existent logistic process scheme With existent process we control manufactured goods from producing and packing in production to dispatching to customers (Figure 1). Process consists of producing and packing manufactured goods in production, storing them to warehouse, from where we pick and arrange them in delivery zone and dispatch them to customer. 2/6

3 MySAP HUM MODULE The MySAP HUM module is used for tracking the handling units used by the materials. Some common handling units are packagings materials like cartons, pallets etc. In the MySAP system, the handling unit (HU) expands on the shipping unit. Handling units can be nested and you can also create new handling units from several handling units as often as you like. At the material item level, HUs contain the complete material identification, the quantity, and, in the case of serial numbers, the respective object list. Handling units have unique, scannable identification numbers that can be developed according to standards such as EAN 128. Handling units contain all inventory management information of the materials they contain that are maintained in Inventory Management. There are also status messages that you can call up at any time that indicate whether a handling unit is only planned or if the ship-to party has been notified of the arrival of this handling unit, or whether it is in the warehouse or has already been posted to goods issue. The integrated history function also records each business process in the life cycle of each handling unit, meaning that you can track the handling unit s path and development at any time. In HU-managed storage locations, all goods movements are executed through the specification of the respective HUs, and Inventory Management is performed through the handling units. Although the handling unit is basically a unit that remains constant in the system, you can change it by repacking the materials it contains. All the packing functions, such as packing, repacking, and unpacking, are completely supported by the handling unit functionality. In this way, handling units can be created in production, during goods receipt, or in the packing areas of the warehouse. Before we start using MySAP module HUM and SITMobile program, we have to make some changes and adjustments, which can be separated in four major groups: MySAP customizing in SPRO transaction (storage location definition, shipping point definition, packing instructions creation, user status profile definition, ), changing existent ABAP programs (user exits for batch number creation, bar code addition in product order and shipping list form), creating new printouts (handling units labeling, storage bins labeling), changing data while implementing MySAP module HUM (maintaining material master data, maintaining technological procedures, maintaining production orders, ) With this changes correct working of MySAP module HUM and using of SITMobile program solution is made possible. SITMobile PROGRAM SOLUTION SITMobile program solution with use of mobile devices has many advantages, because data is entered into MySAP in an instance, when individual process is executed. Delays between execution of process and entering belonging data into MySAP are abolished in this way. Data is not entered into information system manually, when administrator copies data from forms any more, but directly by scanning bar codes. With this, errors at data input into MySAP are considerably abolished. 3/6

4 The program solution architecture enables us to work with any mobile device, which can be connected to local network (Figure 1). Only important thing is that such device enables work with web browser. So, data input can be done with portable computers, pocket computers and contemporary mobile phones. Of course, only mobile devices that contains bar code scanners, enable using complete functionality of program solution, because with such devices we don't need to input data manually. Figure 2: SITMobile program solution arcitecture Work with SITMobile program solution is simply begun by starting web browser. Then we select initial web page of the web server, on which SITMobile program solution is installed. Program solution then shows logon screen. Different users have correspondent user rights assigned in settings of program solution. Worker in production has only possibility of running 'packaging in production' option, for instance. All users have appropriate user rights assigned in this way, considering their function in process. User inputs user name and password and continues with work. Initial screen with all possibilities of program solution, needed to input all necessary material movement data into information system, appears. packing manufactured goods in production Worker in production creates handling units, corresponding to preliminarily arranged packing instructions. He put manufactured goods into boxes, assign boxes to pallets and pallets to production order. With partial confirmation of production order, chosen handling unit gets 'Closed' status and is moved to storage type 901 (Production zone). The batch number is assigned to handling unit at the same time. We can pack new pallets following the same procedure, as long as we don't achieve total quantity on production order. manufactured goods stock-in This option is used to move handling units from storage type 901 (Production zone) to prescribed storage type in warehouse. Prescribed storage types are maintained in material master data. Forklift driver scans bar code which contains handling unit number. Software solution suggests first empty storage bin in storage type, prescribed in material master data. If we want to move handling unit to other storage bin, we simply scan bar code of other storage bin, otherwise program solution moves handling unit to suggested storage bin. delivery stock-out With creating delivery in MySAP, corresponding transfer orders for moving handling units from storage bins in warehouse to storage type 916 (Delivery zone) are created. Forklift driver scans shipment number bar code, gets all transfer orders 4/6

5 which are assigned to shipment and move corresponding handling units to delivery zone. Appropriate material movements data is entered into MySAP simultaneously. delivery confirmation This is an additional, not mandatory process, which we had to implement to follow demands of some customers. With this process we check adequacy of selected handling units to those on shipment list, before they are loaded on the truck. This will help us prevent and check incorrect labelling of handling units with bar code labels. With delivery confirmation in MySAP, no material movement is done. Only a a user status of the handling unit is changed from NCON (HU not confirmed for delivery) to CONF (HU confirmed for delivery) displaying handling unit With this function we display and check the handling unit's contents. We do this simply by scanning the bar code with handling unit's number. CONCLUSION MySAP HUM (handling unit management) module implementation and SITMobile program installation is bringing above all organizational improvements and increase logistical processes data quality. With changed work during the processes of packing in production, warehousing and dispatching, we shortened MySAP enterprise resource planning system data entry delay. Data is entered into MySAP in an instance, when individual process is executed. Furthermore, we eliminated manual data writing on preprinted paper forms and copying them into MySAP. With this, we considerably eliminated possibility of error occurrence during the data input. Data in MySAP are so precise and up-to-date. Managers now have possibility of making quality processes analyses, which are base for improvements of processes and increasing of competitiveness of company. We are convinced, that initiated novelty will increase our reputation at customers. Changes assure respecting of FIFO method, bar code labels adequacy checking and shipped goods correctness authentication. With described changes we reduced possibility of logistic reclamations. BIBLIOGRAPHY Cimos d. d. (2006): Company's internal script: Upravljanje z manipulativnimi enotami v MySAP,. Koper. Gričar J. (2002): Lecture notes: Poslovni informacijski sistem, Fakulteta za organizacijske vede, Kranj. Kretschmer R.; Weiss W. (1996): Developing Sap's R/3 Applications With Abap/4, Sybex Inc, Berkeley. Podlogar M.; Gričar P. (2003): Uporaba programa SAP v celovitem informacijskem sistemu PROCES OSKRBOVANJA, Založba Moderna organizacija, Kranj. SAPPHIR IT & Management Consulting GmbH (2005): Company's internal script: MySAP Handling unit management, Dunaj. Welti N. (1999): Succesful SAP R/3 implementation: practical management of ERP projects, Addison-Wesley, Harlow. ACRONIMS EDIFACT (Electronic Data Interchange For Administration, Commerce And Transport) is United Nation's standard which regulates format of electronic documents, used for changing data between two different companies. 5/6

6 FIFO (First In First Out) is procedure, which regulates the product rotation in warehouse. It means that the first batch of product prepared and placed in storage should be the first one picked. HU (Handling Unit) is a physical unit that consists of the packaging materials and the goods contained therein. A handling unit is always a combination of materials and packaging materials. HUM (Handling Unit Management) is MySAP module used for tracking the handling units used by the materials. SAP (Systems, Applications and Products in Data Processing) is one of many program solutions for enterprise resource planning system. 6/6