Specifying DISP=(NEW,DELETE) minimizes space loss problems. SMPWRK3 is generally needed only for the duration of the SMP/E job step. To keep the data set longer than that, you must use a different DISP value and compress the data set to reclaim space.
If you want to save assembled object modules until SMP/E has successfully applied or accepted the SYSMODs that caused the assemblies, specify DISP=(NEW,KEEP). This allows SMP/E to reuse the assembled object modules if the APPLY or ACCEPT command fails. For more information about reusing assemblies, see SMP/E for z/OS Commands.
The SMS-related options DATACLAS, MGMTCLAS, STORCLAS, and DSNTYPE provide additional data set support. For more information, refer to z/OS DFSMS Using Data Sets.