Functional overview of the kitting process in SAP EWM (Kit-to-Stock, Kit-to-Order and Reverse Kitting).

1. Kitting with SAP EWM
FUNCTIONAL OVERVIEW
© 2013 Victor Cerullo – All Rights Reserved

2. Contents
1. Objectives
2. Key concepts
3. Examples
• Kit-to-Stock initiated through a production order
• Kit-to-Stock initiated through a VAS order in EWM
• Kit-to-Order initiated through an ERP sales order
• Reverse Kitting
KITTING W ITH SAP EW M – FUNCTIONAL OVERVIEW
2

3. Kitting with SAP EWM: Objectives
This presentation provides a functional overview of
the kitting process options available in SAP Extended
Warehouse Management.
The kitting process is illustrated by means of
examples performed on a SAP SCM EWM system
configured through standard BC sets.
By attending this presentation you will have a clear
understanding of the kitting process in SAP EWM and
its fundamental applications.
KITTING W ITH SAP EW M – FUNCTIONAL OVERVIEW
3

4. Key concepts
KITTING W ITH SAP EW M – FUNCTIONAL OVERVIEW
4

5. Kitting with SAP EWM: Key concepts
Kitting is the process of building kit products by assembling their component
materials (raw materials, semi-finished products or finished products).
In EWM the kitting process can take place in two forms:
• Kit-to-Stock: when kitting is performed as a simple, streamlined
manufacturing process with reference to an ERP production order or initiated
through an EWM VAS order and the kit is put away in the warehouse.
• Kit-to-Order: when kitting is performed in relation to a sales order for the kit.
The disassembly of a kit into its component materials is called "reverse kitting".
KITTING W ITH SAP EW M – FUNCTIONAL OVERVIEW
5

6. Kitting with SAP EWM: Key concepts
The bill of material is not stored in EWM: the kit structure is managed in
EWM either through a VAS order (Kit-to-Stock) or through item level
hierarchy in the Outbound Delivery Order (Kit-to-Order).
Nested kitting (kit within a kit) is not currently supported but complex kit
structures can be used in combination with the SCM iPPE when e.g. a
sales order is created from CRM.
Kits are physically assembled in a work center apart from the "kitting
during picking" scenario where the picker is assembling the kit in the aisle
(or no assembly is required).
KITTING W ITH SAP EW M – FUNCTIONAL OVERVIEW
6

7. Kitting with SAP EWM: Key concepts
Process
initiator
Kitting flow type
ERP Prod. Order
Kit-to-Stock
EWM process
enablers
VAS order is essential and
automatically created when
ERP leads, manually
created when EWM leads.
Post kit and components
according to VAS order
(backflush is possible).
Pack and create putaway
tasks for the kit (with or
without POSC).
EWM VAS Order
ODO item hierarchy
replicates BOM and kits are
generated based on that.
ERP Sales Order
Kit-to-Order
CRM Sales Order
Kitting Work Center
execution
VAS order not mandatory
(only needed for printing
assembly instructions and
for tracking duration/effort).
Kitting during picking is also
possible through pick-HU.
Generate kit according to
ODO item hierarchy.
Kit dummy item is added
automatically to pick-HU in
kitting during picking.
Create staging tasks for kit
and components (with or
without POSC).
KITTING W ITH SAP EW M – FUNCTIONAL OVERVIEW
7

8. Examples
NB: in the following examples the ROD storage location is
called 009I and the AFS storage location is called 009O.
KITTING W ITH SAP EW M – FUNCTIONAL OVERVIEW
8

9. Kitting with SAP EWM: Kit-to-Stock
Kit-to-Stock initiated through a production order (1)
The kit product is exploded
according to the BOM into its
component materials A and B.
KITTING W ITH SAP EW M – FUNCTIONAL OVERVIEW
9

10. Kitting with SAP EWM: Kit-to-Stock
Kit-to-Stock initiated through a production order (2)
The release of the production
order automatically creates one
outbound delivery for the
components (delivery type HOD).
And one inbound delivery for the
kit (delivery type HID).
Both deliveries are replicated to
EWM via qRFC.
KITTING W ITH SAP EW M – FUNCTIONAL OVERVIEW
10

11. Kitting with SAP EWM: Kit-to-Stock
Kit-to-Stock initiated through a production order (3)
In the EWM system
the two deliveries are
linked to a VAS order
that is automatically
created.
Packaging
specifications with a
kitting level must be
maintained for this.
KITTING W ITH SAP EW M – FUNCTIONAL OVERVIEW
11

12. Kitting with SAP EWM: Kit-to-Stock
Kit-to-Stock initiated through a production order (4)
Warehouse tasks are created against the outbound delivery to supply the
components to the kitting work center.
The picking WTs are confirmed in RF (in this example the WOCR is configured
for automatic pick-HU creation at WT creation):
KITTING W ITH SAP EW M – FUNCTIONAL OVERVIEW
12

13. Kitting with SAP EWM: Kit-to-Stock
Kit-to-Stock initiated through a production order (5)
At the kitting work center
the components are
goods-issued, the goods
receipt for the kit is
posted, the kit is packed
into a new HU and the
putaway WT is created for
the same.
KITTING W ITH SAP EW M – FUNCTIONAL OVERVIEW
13

14. Kitting with SAP EWM: Kit-to-Stock
Kit-to-Stock initiated through a production order (6)
The putaway task for the kit is
confirmed using RF, completing
the process.
On the ERP side, three
material documents are
posted reflecting the
consumption of the
component materials and the
GR and stock type change of
the kit from ROD to AFS.
KITTING W ITH SAP EW M – FUNCTIONAL OVERVIEW
14

15. Kitting with SAP EWM: Kit-to-Stock
Kit-to-Stock initiated through a VAS order in EWM
A similar Kit-to-Stock
process can be
initiated in EWM by
manually creating a
VAS order. This can
be done either by
referencing the ERP
BOM or by listing the
kit components (as
shown here).
Saving the VAS order generates one ODO for the components and one inbound
delivery for the kit, which are replicated to the ERP system via qRFC.
KITTING W ITH SAP EW M – FUNCTIONAL OVERVIEW
15

16. Kitting with SAP EWM: Kit-to-Order
Kit-to-Order initiated through an ERP sales order (1)
In the Kit-to-Order
process a sales order for
the kit is created (in ERP
or CRM) and delivered.
The outbound delivery is replicated
to EWM via qRFC, carrying the BOM
structure.
KITTING W ITH SAP EW M – FUNCTIONAL OVERVIEW
16

17. Kitting with SAP EWM: Kit-to-Order
Kit-to-Order initiated through an ERP sales order (2)
The kit material in the ODO is
not relevant for picking and the
kit structure is represented by a
level hierarchy among items.
In this example the ODO is relevant for
VAS so that a VAS order is created and
a kitting work center is determined.
KITTING W ITH SAP EW M – FUNCTIONAL OVERVIEW
17

18. Kitting with SAP EWM: Kit-to-Order
Kit-to-Order initiated through an ERP sales order (3)
At the kitting work
center the kits are
generated based on
the ODO item
hierarchy and a
dummy item is added
for the kit header in
the pick-HU.
KITTING W ITH SAP EW M – FUNCTIONAL OVERVIEW
18

19. Kitting with SAP EWM: Kit-to-Order
Kit-to-Order initiated through an ERP sales order (4)
Once the goods issue is posted for the ODO, a material document is posted in
the ERP to reflect the consumption of the kit and the components, and the
"temporary" goods receipt of the kit (movement type 521, configurable in ERP).
KITTING W ITH SAP EW M – FUNCTIONAL OVERVIEW
19

20. Kitting with SAP EWM: Reverse Kitting
Reverse Kitting (1)
Reverse kitting can
only start from EWM
by manually
creating a VAS
order, either with
reference to a BOM
or by listing the
components.
Saving the VAS order generates one ODO for the kit and one inbound delivery
for the components, which are later replicated to the ERP system via qRFC.
KITTING W ITH SAP EW M – FUNCTIONAL OVERVIEW
20

21. Kitting with SAP EWM: Reverse Kitting
Reverse Kitting (2)
At the kitting work
center the kit is
disassembled and the
goods receipt is posted
for the components,
which can be then
packed and put away.
KITTING W ITH SAP EW M – FUNCTIONAL OVERVIEW
21

22. Kitting with SAP EWM: Reverse Kitting
Reverse Kitting (3)
In the ERP system three material documents have been posted to reflect the
consumption of the dismantled kit, the goods receipt and stock type change of
the components from ROD to AFS.
KITTING W ITH SAP EW M – FUNCTIONAL OVERVIEW
22

23. Thank you!
Victor Cerullo
cerullo@mac.com
Copyright Notice
This document is protected by international copyright laws and it should not be reproduced, in whole or in part, without consent of the author.
Disclaimer
The examples contained in this presentation are intended for illustration purposes only. The information contained in this presentation is targeting
an audience of business consultants with specialized knowledge. The author is not responsible for any damage caused by improper use of this
information. SAP is a trademark of SAP AG, Neurottstrasse 16, 69190 Walldorf, Germany.
© 2013 Victor Cerullo – All Rights Reserved
23