0-erp - sap overview

8/2/2019 0-Erp - Sap Overview

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SAPSAP

ERP - SAP OVERVIEWERP - SAP OVERVIEW


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AgendaAgenda

Brief introduction of participantsBrief introduction of participants

Understanding ERPUnderstanding ERP

Overview of SAPOverview of SAP

SAP introduction sessionSAP introduction session

SAP PP sessionSAP PP session


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AgendaAgenda

Organization structureOrganization structure

SAP TerminologySAP Terminology


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UnderstandingUnderstanding


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ERP DefinitionERP Definition

An ERP system is A unified environment

Comprising of key business and managementprocesses, information blocks and functional areas

to deliver consistent, reliable and detailedinformation

to facilitate timely and quality business decisions

But, beyond that it is


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Why ERPWhy ERP

Before ERPs becamepopular, the typicalcompany had manyspecialized

computer systems.

Each system wasspecified designedto serve the needs

of an individualdepartment


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Why ERPWhy ERP

One system mightmanage accounting.Another might controlproduction planning. Athird might serve theHuman Resources

department.

Some large companieshad hundreds ofdifferent systems, andmany companies built

custom systems fromscratch to meet theirbusiness needs.


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Why ERPWhy ERP

Sometimes differentcomputer systemsdidn't communicatewith each other.

Duplicate informationhad to be entered byhand in each system.This was slow,

inefficient andsubject to errors.


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After ERPAfter ERP

Sales

Accounts

Production

HR

Purchase

Sales Admin.


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SAP OverviewSAP Overview

SAP What, How & WhySAP What, How & Why

--------------------------------------------------------------SAP R/3 is an Enterprise Resource Planning

application, or ERP.

An ERP is an integrated information systemthat usually serves many departments withina company.

You may hear SAP R/3 called simply SAP orR/3


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SAP was founded in 1972 in Mannheim,Germany.

The name SAP is derived from the

German phrase meaning Systems,Applications, and Products in DataProcessing.

It is pronounced as separate letters, andnot as the word sap.


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As the software isintegrated, information nolonger had to be enteredmore than once. Changesmade in one part of thebusiness were immediately

visible to users working inother parts of the business,because the different partsof SAP's software were inconstant communication.Users could have better,

more accurate informationwith less effort.


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SAP R/3 ModulesSAP R/3 Modules

Sales &Sales &DistributionDistribution

SDSD

MMMM

PPPP

QMQM

PMPM

HRHR

FIFI

COCO

TRTR

PSPS

WFWF

ISIS

MaterialsMaterialsMgmt.Mgmt.

ProductProductPlanningPlanning

QualityQualityMgmt.Mgmt.

Plant Mainte-Plant Mainte-nancenance

HumanHumanResourcesResources

FinancialFinancialAccountingAccounting

ControllingControlling

TreasuryTreasury

ProjectProjectSystemSystem

WorkflowWorkflow

IndustryIndustry

SolutionsSolutions

R/3R/3R/3R/3

Client/ServerClient/Server

ABAP/4ABAP/4

Client/ServerClient/Server

ABAP/4ABAP/4


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Organization Structure

ClientClient 400400

CompanyCompany codecode

00010001

CompanyCompany codecode

00020002

Plant 1000Plant 1000 Plant 1100Plant 1100 Plant 2000Plant 2000

SLocSLoc

00030003SLocSLoc

00020002

Lagerort

002SLocSLoc

00010001SLocSLoc

00020002SLocSLoc

00010001


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SAP TerminologySAP Terminology

TRANSACTIONTRANSACTION A transaction is a task

that you perform inSAP.

Any time you view areport, or create ordisplay a document,

you are running atransaction.


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TRANSACTION CODETRANSACTION CODE

Most transactions withinSAP are associated with afour-character codecalled a transaction code.This transaction code can

be used in the commandfield to jump directly to atransaction withouthaving to follow thenavigation path. You willlearn how to do this in alater lesson.


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MASTER DATAMASTER DATA

Master data isimportant, long-termdata stored within theSAP system.

Vendors, customers,plant IDs, the chart ofaccounts, and productnumbers are allexamples of

information that isstored as master datarecords


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DOCUMENTDOCUMENT

A documentis data created inassociation with a particularbusiness event or transaction.

Sales orders, purchaseorders, material requisitions,and general ledger postings

are all examples ofdocuments stored within SAP.

Every document created inSAP is assigned a documentnumberthat uniquelyidentifies it.


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SAP Overview - Integration with other Modules

Finance / Asset ManagementFinance / Asset Management

ProcurementProcurement

QualityQuality

Sales LogisticsSales Logistics

ProductionProduction

Project systemsProject systems


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ModulesModules

FinanceFinanceControllingControllingProject SystemsProject SystemsProduction PlanningProduction Planning

Quality managementQuality managementMaterials ManagementMaterials ManagementSales and distributionSales and distribution

Human ResourceHuman ResourceCustomer supportCustomer supportService managementService management


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- Master Data- Master Data

- Material Master- Material Master

- Bill Of Material- Bill Of Material

- Work Centers- Work Centers

- Routings- Routings

- Sales and Operation Planning- Sales and Operation Planning

- Demand Management- Demand Management

- Materials Requirements Planning- Materials Requirements Planning- Capacity Planning- Capacity Planning

- Production Control- Production Control

ContentsContents


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Production PlanningProduction Planning

Master DataMaster Data


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Master Data in PPMaster Data in PP

Material MasterMaterial Master Bills of MaterialBills of Material

Work CentersWork Centers

RoutingsRoutings


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Master Data in PPMaster Data in PP

WorkCenter

Routing

BOM

ProcessOrder

Material

Master


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Material MasterMaterial Master


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Concept of Material Master in SAP.Concept of Material Master in SAP.

The material master contains information onThe material master contains information onall the materials that a company procures,all the materials that a company procures,

produces, stores, and sells.produces, stores, and sells.

The material master is used by all modules inThe material master is used by all modules in

the SAP.the SAP. Different departments in a company work withDifferent departments in a company work with

the same material, so data in a materialthe same material, so data in a material

master record is subdivided in the form ofmaster record is subdivided in the form of

user departments.user departments. Material description and base unit of measureMaterial description and base unit of measure

appear in all user departments.appear in all user departments.

U d t t ( t )U d t t ( t )


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User departments(cont..)User departments(cont..)

ViewsViews


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ViewsViews

Basic dataBasic data

MRP1MRP1 MRP2MRP2

MRP3MRP3

MRP4MRP4 ForecastingForecasting

Work scheduling,Work scheduling,


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On this data screen, data that is alsoOn this data screen, data that is alsoused by other user departments isused by other user departments is

entered.entered.

Data like description of theData like description of the materialmaterial, base, baseunit of measure, Division, Itemunit of measure, Division, Item

Category, material group,, Weight of theCategory, material group,, Weight of the

item, Document or Drawing No etc areitem, Document or Drawing No etc are

maintained.maintained. The above data is maintained acrossThe above data is maintained across

two views Basic Data 1&2 views.two views Basic Data 1&2 views.

M t i l R i t Pl i (MRP)M t i l R i t Pl i (MRP)


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Material Requirements Planning (MRP).Material Requirements Planning (MRP). The following Data relating to MRP isThe following Data relating to MRP is

maintained:maintained:

PlanningPlanning

Lot size (Fixed, Variable)Lot size (Fixed, Variable)

ProcurementProcurement

Scheduling time(lead times : Planned In-Scheduling time(lead times : Planned In-house Production Times, Planned Deliveryhouse Production Times, Planned Delivery

times etc.).times etc.).

Stock levels (Ex Safety Stock)Stock levels (Ex Safety Stock)

Planning StrategyPlanning Strategy

The above data is maintained in FourThe above data is maintained in Four

screens MRP1,MRP2,MRP3,MRP4.screens MRP1,MRP2,MRP3,MRP4.

ForecastingForecasting


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ForecastingForecasting

Data related to forecasting of material is maintained here.

Consumption values and forecast values as a basis for

calculations are maintained on this screen.

Individual forecast models for a material can be maintained.


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Work SchedulingWork Scheduling

The following data is maintained onThe following data is maintained onthis screenthis screen ::

Production scheduler,production schedulerProduction scheduler,production scheduler

profile Serial No Profile.profile Serial No Profile.

Batch Management (If required).Batch Management (If required).

The base quantity to which the processingThe base quantity to which the processing

time relates, under Lot size dependent in-time relates, under Lot size dependent in-

house production time.house production time.


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Production Planning-Bill Of MaterialProduction Planning-Bill Of Material 3333


Bill Of MaterialBill Of Material

Concept of Bill of materials in SAPConcept of Bill of materials in SAP


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Concept of Bill of materials in SAPConcept of Bill of materials in SAP A bill of material is a complete, formallyA bill of material is a complete, formally

structured list of the components requiredstructured list of the components required

to produce the product or assembly.to produce the product or assembly.

The BOM contains the object number ofThe BOM contains the object number of

each component, together with the quantityeach component, together with the quantity

, unit of measure and item category of, unit of measure and item category of

component.component.

Bills of material (BOMs) contain essentialBills of material (BOMs) contain essentialmaster data for integrated materialsmaster data for integrated materials

management and control.management and control.

BOM UsageBOM UsageTh d t t d i bill f t i l b i fTh d t t d i bill f t i l b i f


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The data stored in bills of material serves as a basis forThe data stored in bills of material serves as a basis foractivities such as:activities such as:

A design department (working with CAD) can base itsA design department (working with CAD) can base its

work on bills of material. You can also create a BOMwork on bills of material. You can also create a BOMin the R/3 System from your CAD program, via thein the R/3 System from your CAD program, via theSAP-CAD interface.SAP-CAD interface.

A material requirements planning (MRP) departmentA material requirements planning (MRP) departmentexplodes bills of material on a certain date toexplodes bills of material on a certain date to

calculate order quantities and dates for materials.calculate order quantities and dates for materials.

A work scheduling department uses bills of materialA work scheduling department uses bills of materialas a basis for operation planning and productionas a basis for operation planning and productioncontrol.control.

Sales orders, As an aid to data entry. You can alsoSales orders, As an aid to data entry. You can also

create and maintain a BOM specifically for a salescreate and maintain a BOM specifically for a salesorder.order. Reservation and goods issueReservation and goods issue Product costing, To calculate the costs of materialsProduct costing, To calculate the costs of materials

re uired for a s ecific roduction order.re uired for a s ecific roduction order.

Scrap DataScrap Data R/3 ll t d fi diff t f t f BOMR/3 allows you to define different scrap factors for BOM


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R/3 allows you to define different scrap factors for BOMR/3 allows you to define different scrap factors for BOMcomponents. Three different scrap factors accumulatecomponents. Three different scrap factors accumulatein MRP:in MRP:

Component scrap :Component scrap :

Is defined in the BOM item. ItIs defined in the BOM item. Itshows the % of the componentshows the % of the componentthat is lost as scrap.that is lost as scrap.

Assembly scrap :Assembly scrap :

Is defined in the BOM header or inIs defined in the BOM header or inthe material master record of thethe material master record of thecomponent. It shows thecomponent. It shows the

percentage of the finished or semi-percentage of the finished or semi-finished product that is lost asfinished product that is lost asscrap due to manufacturingscrap due to manufacturingproblems across all operations.problems across all operations.


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Overview of BOM Reporting FunctionsOverview of BOM Reporting Functions The R/3 System supports the following reportingThe R/3 System supports the following reporting

functions:functions: Mass Changes : You can use the mass changeMass Changes : You can use the mass change

function to change items in several BOMs atfunction to change items in several BOMs atonce.once.

BOM Explosion: The system determines all theBOM Explosion: The system determines all the

components which are contained in an assembly.components which are contained in an assembly. BOM level by levelBOM level by level Multi-level BOMMulti-level BOM

Where-Used List :To determine which BOMs anWhere-Used List :To determine which BOMs an

object is used in.object is used in. BOM Comparison: Two BOMs can be comparedBOM Comparison: Two BOMs can be comparedfor single or multilevel.for single or multilevel.

Displaying Change DocumentsDisplaying Change Documents


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Work centersWork centers

A work center is a place whereA work center is a place whereproduction operations areproduction operations are

performedperformed..

Machines, machine groupsMachines, machine groups

Employees, groups of employeesEmployees, groups of employees

Together with bills of material andTogether with bills of material and

routings, work centers belong to theroutings, work centers belong to the

most important master data in the R/3most important master data in the R/3and control system.and control system.


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Work center data in R/3Work center data in R/3

The data is grouped together inThe data is grouped together inscreens and screen groups :screens and screen groups :

Basic DataBasic Data

Assignments (To cost centers)Assignments (To cost centers) CapacitiesCapacities

SchedulingScheduling

Default valuesDefault values

Technical dataTechnical data



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Basic dataBasic data In the Basic data screen the following data isIn the Basic data screen the following data is

maintained.maintained.

Short and long texts for description of work center.Short and long texts for description of work center. Various administrative data, such as the personVarious administrative data, such as the person

responsible and the location of the work centerresponsible and the location of the work center

Usage type: This specifies which type of task lists theUsage type: This specifies which type of task lists thework center can be used in. (for Production, Maintenance)work center can be used in. (for Production, Maintenance)

Standard value key:Standard values are planned valuesStandard value key:Standard values are planned values

for the execution of an operation and are maintained infor the execution of an operation and are maintained inthe operation.the operation. E.g.:set-up and processingE.g.:set-up and processing The execution time, costs and capacities are calculatedThe execution time, costs and capacities are calculated

in operations using formulae from the work centersin operations using formulae from the work centersand standard values from the operations.and standard values from the operations.

Performance Efficiency Rate Key :The performancePerformance Efficiency Rate Key :The performanceefficiency rate key is the ratio between an individual'sefficiency rate key is the ratio between an individual'sactual output and the planned average output .actual output and the planned average output .

SSt d d il bl it


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Standard available capacityStandard available capacity Standard available capacity isStandard available capacity is

used, among other things, forused, among other things, forcalculating execution time in acalculating execution time in a

routing without reference to anrouting without reference to an

orderorder It is valid indefinitely.It is valid indefinitely.

It has a fixed working timeIt has a fixed working time

It is valid on all working days in theIt is valid on all working days in the

factory calendarfactory calendar

Units of Measurement for AvailableUnits of Measurement for AvailableC it


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CapacityCapacity

The base unit of measure for theThe base unit of measure for the

available capacity must be a unit withavailable capacity must be a unit with

dimension "time".dimension "time".

the available capacity can be expressedthe available capacity can be expressed

in any unit for instance in numbers".in any unit for instance in numbers". A conversion factor must be specified ,A conversion factor must be specified ,

that is how many units of the newthat is how many units of the new

dimension correspond to a particulardimension correspond to a particular

period of time, for instance 1 number =period of time, for instance 1 number =30 minutes.30 minutes.

Scheduling DataScheduling Data


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Scheduling DataScheduling Data FormulasFormulas

Formulas are used to calculate theFormulas are used to calculate theexecution times of operations inexecution times of operations in

production orders using standard valuesproduction orders using standard values Formulas are used in the work center toFormulas are used in the work center to

calculate the following data in costing,calculate the following data in costing,scheduling and capacity planning:scheduling and capacity planning:

CostsCosts

Execution times for production ordersExecution times for production orders

Internal processing times for networks andInternal processing times for networks andmaintenance ordersmaintenance orders

Capacity requirements.Capacity requirements.

Concept Of Formulae in WorkConcept Of Formulae in Work


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Concept Of Formulae in Workp

CentersCenters

C t t d tC t t d t


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Cost center dataCost center data

Work center is assigned to activityWork center is assigned to activitytypestypes..

Activity types are used to describeActivity types are used to describe

the various forms of activity that arethe various forms of activity that are

performed at a cost center.performed at a cost center.

The activity types are used toThe activity types are used to

calculate the costs for thesecalculate the costs for these

activities.activities.



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RoutingsRoutings

ROUTINGS in SAP R/3 SYSTEM.ROUTINGS in SAP R/3 SYSTEM.


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A routing is a description ofA routing is a description of Which operations (process steps) have to be carried outWhich operations (process steps) have to be carried out

The order in which they are carried out,The order in which they are carried out,

Information about the operations .Information about the operations .

Details about the work centers at which they are carried outDetails about the work centers at which they are carried out

About the required production resources and tools (includesAbout the required production resources and tools (includes

jigs and fixtures).jigs and fixtures).

Standard values for the execution of individual operationsStandard values for the execution of individual operations..

Quality Inspection to be carried out for each operationQuality Inspection to be carried out for each operation

A routing is used as a source for creating aA routing is used as a source for creating a production order.production order.

Structure of routingStructure of routing


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Structure of routing.Structure of routing.

External Processing DataExternal Processing Data


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gg

Operations or sub-operations,Operations or sub-operations,

carried out outside of your companycarried out outside of your companyby a vendor is External processing .by a vendor is External processing .

When a production order is createdWhen a production order is created

the system automatically creates athe system automatically creates apurchase requisition for thepurchase requisition for the

operation or sub-operation foroperation or sub-operation for

External OperationExternal Operation

An operation or sub-operation isAn operation or sub-operation is

processed externally is decided byprocessed externally is decided by

itsits control kecontrol ke ..

Maintaining Material ComponentsMaintaining Material Components


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g p

Materials are to be made available inMaterials are to be made available ina production process.a production process.

The following data already exists inThe following data already exists in

the system:the system: The operations in the routingThe operations in the routing

The master record for the material to beThe master record for the material to be

producedproduced

The bill of material (BOM) for the materialThe bill of material (BOM) for the material

to be producedto be produced

Production Resources/ToolsProduction Resources/Tools


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Production Resource/Tool(PRT) is aProduction Resource/Tool(PRT) is a

moveable operating resource used inmoveable operating resource used inproduction or plant maintenance.production or plant maintenance.

Production resources/tools can beProduction resources/tools can be

assigned to operation, activities orassigned to operation, activities or

phases in task lists.phases in task lists.

Production resources/tools that are usedProduction resources/tools that are used

for testing during production, can befor testing during production, can be

assigned to the correspondingassigned to the correspondinginspection characteristic in theinspection characteristic in the

inspection plan.inspection plan.


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Sales &Sales &

Operations PlanningOperations Planning

Integration between Sales andIntegration between Sales andManufacturingManufacturing


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ManufacturingManufacturing

h

Process Flow in PlanningProcess Flow in Planning


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h

CONCEPTS of SOP.CONCEPTS of SOP.


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Sales & Operations Planning (SOP) is a flexibleSales & Operations Planning (SOP) is a flexibleforecasting and planning toolforecasting and planning tool

SOP constitutes the planning functionality in SAP.SOP constitutes the planning functionality in SAP. SOP is used to perform companys sales andSOP is used to perform companys sales and

production operations Sales, production targets canproduction operations Sales, production targets canbe set on the basis of historical, existing, andbe set on the basis of historical, existing, andestimated future data.estimated future data.

Rough-cut planning can be carried out to determineRough-cut planning can be carried out to determinethe amounts of the capacities and other resourcesthe amounts of the capacities and other resourcesrequired to meet these targets.required to meet these targets.

SOP plans are passed on to Demand ManagementSOP plans are passed on to Demand Management(PP-MP-DEM) in the form of independent(PP-MP-DEM) in the form of independentrequirements.requirements.

This data is fed to Material Requirements PlanningThis data is fed to Material Requirements Planning(PP-MRP).(PP-MRP).

Transfer to Demand ManagementTransfer to Demand Management


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Transfer to Demand Management.Transfer to Demand Management.

Demand Management determinesDemand Management determinesthe requirement dates andthe requirement dates and

requirement quantities for importantrequirement quantities for important

assemblies and specifies theassemblies and specifies the

strategies for planning andstrategies for planning andproducing / procuring finishedproducing / procuring finished

products in the form of plannedproducts in the form of planned

independent requirements.independent requirements. This ends the phase of SOP.This ends the phase of SOP.

Demand ManagementDemand Management


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Demand ManagementDemand Management The function of Demand Management is to determineThe function of Demand Management is to determine

requirement quantities and delivery dates for atyerials /requirement quantities and delivery dates for atyerials /

Components and important assemblies.Components and important assemblies.

The result of Demand Management is the demand program.The result of Demand Management is the demand program.

The demand program is created in the form of plannedThe demand program is created in the form of planned

independent requirements.independent requirements.

Demand Management uses planned independentDemand Management uses planned independentrequirements and customer requirements. Customerrequirements and customer requirements. Customer

requirements are created in sales order management.requirements are created in sales order management.

To create the demand program for a material , planningTo create the demand program for a material , planning

strategy must be defined for it.strategy must be defined for it.

Planning strategies represent the methods of productionPlanning strategies represent the methods of productionfor planning and manufacturing or procuring a product.for planning and manufacturing or procuring a product.


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Material RequirementsMaterial RequirementsPlanningPlanning

Material Requirements Planning in R/3Material Requirements Planning in R/3


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Functions of material requirements planning isFunctions of material requirements planning is

To guarantee material availability.To guarantee material availability.

It is used to procure or produce the requirementIt is used to procure or produce the requirement

quantities on time both for internal purposes and forquantities on time both for internal purposes and for

sales and distribution.sales and distribution.

Monitoring of stocks, creation of order proposals forMonitoring of stocks, creation of order proposals for

purchasing and production.purchasing and production.

Determines any shortages and create the appropriateDetermines any shortages and create the appropriate

procurement elements.procurement elements.

Create messages that inform the MRP controller ofCreate messages that inform the MRP controller of

critical parts and exceptional situations so that the MRPcritical parts and exceptional situations so that the MRP

controller can quickly reprocess the results of thecontroller can quickly reprocess the results of the

automatic planning run in the specific area withautomatic planning run in the specific area with

roblems.roblems.

MASTER DATA FOR MRPMASTER DATA FOR MRP


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MASTER DATA FOR MRPMASTER DATA FOR MRP

Material MasterMaterial Master BOMsBOMs


RoutingsRoutings

Demand ManagementDemand Management

Sales and Distribution, if necessarySales and Distribution, if necessary

Concepts of MRPConcepts of MRP


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Single-Item or Total PlanningSingle-Item or Total Planning. For an individual material,. For an individual material,

planning is referred to asplanning is referred to as single-item planningsingle-item planning. For a. For a

certain plant, where all materials to be planned arecertain plant, where all materials to be planned are

included, it is referred to asincluded, it is referred to as total planningtotal planning..

Scope of the Planning RunScope of the Planning Run

Regenerative planning: All materials are planned for a plant.Regenerative planning: All materials are planned for a plant.

Usually, the regenerative planning run is only carried out inUsually, the regenerative planning run is only carried out in

the implementation stages.the implementation stages.

Net change planning: only materials which are included inNet change planning: only materials which are included in

the planning run are those which have undergone a changethe planning run are those which have undergone a change

relevant to MRP since the last planning run.relevant to MRP since the last planning run.

Lot-Sizing ProceduresLot-Sizing Procedures

Static lot si ing p oced es Using q antit specificationsStatic lot sizing procedures:Using quantity specifications

Concepts of MRPConcepts of MRP


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Static lot-sizing procedures:Using quantity specificationsStatic lot-sizing procedures:Using quantity specificationsentered in the material master record.entered in the material master record.

Lot for lot order quantityLot for lot order quantity

Fixed lot sizeFixed lot size

Replenish up to maximum stock levelReplenish up to maximum stock level

Planning Time FencePlanning Time Fence

To protect the master plan from any automatic changes toTo protect the master plan from any automatic changes to

master schedule items in the near future by using a planningmaster schedule items in the near future by using a planningtime fence.time fence.

Manual Reorder Point PlanningManual Reorder Point Planning

Specify both the reorder level and the safety stock levelSpecify both the reorder level and the safety stock levelmanually in the material master record.manually in the material master record.

Automatic Reorder Point PlanningAutomatic Reorder Point Planning Both the reorder level and the safety stock level are determinedBoth the reorder level and the safety stock level are determined

by the integrated forecasting program , using past pastby the integrated forecasting program , using past pastconsumption data (historical data) to forecast futureconsumption data (historical data) to forecast futurerequirements.requirements.

Role of MRP controllerRole of MRP controller


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The MRP controller is responsible for all activities forThe MRP controller is responsible for all activities forspecifying the type, quantity and time of the requirementsspecifying the type, quantity and time of the requirements

He must also confirm when and for what quantity an orderHe must also confirm when and for what quantity an orderproposal has to be created to cover these requirements.proposal has to be created to cover these requirements.

He is provided with the information on stocks, stockHe is provided with the information on stocks, stockreservation and stock on order to calculate quantities and hereservation and stock on order to calculate quantities and heneeds all the information on lead times and procurementneeds all the information on lead times and procurementtimes to calculate dates.times to calculate dates.

The MRP controller determines a suitable MRP and lot-sizingThe MRP controller determines a suitable MRP and lot-sizingprocedure for material to determine procurement proposals.procedure for material to determine procurement proposals.

The planning run in MRP determines any shortages andThe planning run in MRP determines any shortages andcreates the appropriate procurement elements.creates the appropriate procurement elements.

The system creates messages that inform the MRP controllerThe system creates messages that inform the MRP controller

of critical parts and exceptional situations so that the MRPof critical parts and exceptional situations so that the MRPcontroller can quickly reprocess the results of the planningcontroller can quickly reprocess the results of the planningrun in the specific area with problems.run in the specific area with problems.

Role of MRP controller (cont..)Role of MRP controller (cont..) The most important exception messages areThe most important exception messages are

rescheduling and reversal proposals These messagesrescheduling and reversal proposals These messages


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rescheduling and reversal proposals. These messagesrescheduling and reversal proposals. These messagesrefer to receipt components that cannot automaticallyrefer to receipt components that cannot automaticallybe changed by the system (for example, productionbe changed by the system (for example, productionorders or purchase orders).orders or purchase orders).

In the SAP system, new dates are also proposed forIn the SAP system, new dates are also proposed forfirmed order proposals if the requirements situation hasfirmed order proposals if the requirements situation haschanged since the order proposal was firmed.changed since the order proposal was firmed.

In case of capacity planing the MRP controller receivesIn case of capacity planing the MRP controller receivesthe information on possible bottlenecks and overloadsthe information on possible bottlenecks and overloadsfrom the comparison of the available capacity with thefrom the comparison of the available capacity with thecapacity requirements. As a result, planned orders cancapacity requirements. As a result, planned orders canbe re-planned in the planning run before the masterbe re-planned in the planning run before the masterplan is passed on to production.plan is passed on to production.

Exception messages provide information that refer to aException messages provide information that refer to asituation that may require attention, for example, startsituation that may require attention, for example, startdate of the planned order in past, stock level fallendate of the planned order in past, stock level fallenbelow the safety stock level, and so on.below the safety stock level, and so on.

During availability check In the planning results and inDuring availability check In the planning results and in

the evaluations of the planning run the MRP controllerthe evaluations of the planning run the MRP controller

Role of MRP controller (cont..)Role of MRP controller (cont..)


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the evaluations of the planning run, the MRP controllerthe evaluations of the planning run, the MRP controller

can use the ATP quantity to determine whether allcan use the ATP quantity to determine whether all

issues are covered by the master plan and how manyissues are covered by the master plan and how manyof the receipts are still open for new issues (such asof the receipts are still open for new issues (such as

sales orders) that may arise.sales orders) that may arise.

This provides the MRP controller with all theThis provides the MRP controller with all the

information he requires for deciding whether theinformation he requires for deciding whether the

master plan has to be changed.master plan has to be changed. After the planning run, the MRP controller can checkAfter the planning run, the MRP controller can check

and edit the order proposals created using the variousand edit the order proposals created using the various

evaluation functions available.evaluation functions available.

The MRP controller can also firm order proposals soThe MRP controller can also firm order proposals sothat the system makes no changes to them in the nextthat the system makes no changes to them in the next

planning run.planning run.


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Capacity PlanningCapacity Planning

Capacity PlanningCapacity Planning

C it l i bl fC it l i bl f


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Capacity planning enables use of resourcesCapacity planning enables use of resources

andand

Comparing available capacity and capacity requirements,Comparing available capacity and capacity requirements,displayed in lists or graphics.displayed in lists or graphics.

Allotting available capacities to requirements.Allotting available capacities to requirements.

Selection of appropriate resources.Selection of appropriate resources.

Capacity Requirements:Capacity Requirements: Calculating the capacity requirements of an operation forCalculating the capacity requirements of an operation for

manufacturing a material takes place in scheduling usingmanufacturing a material takes place in scheduling using

formulas in the work centerformulas in the work center

Orders generate capacity requirements and thus a load onOrders generate capacity requirements and thus a load on

the resources(work centers) that are to process them.the resources(work centers) that are to process them.The following types of orders are relevant:The following types of orders are relevant:

Production orders in Shop Floor Control (SFC).Production orders in Shop Floor Control (SFC).

Planned orders .Planned orders .

Concepts of capacity planningConcepts of capacity planning


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Scope of functions in capacity evaluationScope of functions in capacity evaluation Gives an overview of the load situation of selected workGives an overview of the load situation of selected work

centers .centers .


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This is a list predefined by SAP showing data onThis is a list predefined by SAP showing data on

the capacity situation at work centersthe capacity situation at work centers Columns displayed:Columns displayed:

PeriodPeriod

Capacity requirements in the periodCapacity requirements in the period

Available capacity in the periodAvailable capacity in the period

Capacity load (capacityCapacity load (capacity

requirements/available capacity inrequirements/available capacity in

percentage terms) in the periodpercentage terms) in the period

The various evaluations can be displayed both inThe various evaluations can be displayed both intabular and graphical form.tabular and graphical form.

The SAP-Gantt diagram gives you an overview ofThe SAP-Gantt diagram gives you an overview of

Capacity LevelingCapacity Leveling Capacity leveling is used in a company withCapacity leveling is used in a company with

the following objectives:the following objectives:


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t e o o g object esg j Leveling overloads and underloads at workLeveling overloads and underloads at work

centerscenters Achieving commitment of machines andAchieving commitment of machines and

production linesproduction lines

Selecting appropriate resourcesSelecting appropriate resources

Operations are dispatched to the time when there isOperations are dispatched to the time when there is

sufficient capacity for them to be executedsufficient capacity for them to be executed

In the dialog box Dispatch manually you can enterIn the dialog box Dispatch manually you can enter

the date and the time when the operation is to startthe date and the time when the operation is to start

or finish as well as the work center.or finish as well as the work center.

An operation can be dispatch to a different workAn operation can be dispatch to a different workcenter from the one to which it is planned.center from the one to which it is planned.


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Production ControlProduction Control

Production OrdersProduction Orders Production orders are used to controlProduction orders are used to control


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Production orders are used to controlProduction orders are used to control

production within a company.production within a company.

A production order definesA production order defines

Which material is to be processed orWhich material is to be processed or

produced,produced,

At which location I.e work center,At which location I.e work center,

At what time (When to produce ?),At what time (When to produce ?),

How much work (quantity) is required,How much work (quantity) is required,

Which materials are required,Which materials are required, Which resources are to be used andWhich resources are to be used and

How the order costs are to be settled.How the order costs are to be settled.

Elements of Production OrderElements of Production Order


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Creation and release of Production OrderCreation and release of Production Order An order can be generated in the following ways:An order can be generated in the following ways: By converting a planned order to a production orderBy converting a planned order to a production order


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Without any previous requirement, that is by creating itWithout any previous requirement, that is by creating it

manuallymanually

When a production order is created the followingWhen a production order is created the following

actions are carried out:actions are carried out:

A routing is selected, its operations and sequences areA routing is selected, its operations and sequences are

transferred to the order.transferred to the order.

The bill of materials is exploded and the items in the billThe bill of materials is exploded and the items in the billof material are transferred to the order.of material are transferred to the order.

Reservations are generated for bill of material items heldReservations are generated for bill of material items held

in Stock.in Stock.

The planned costs for the order are generated.The planned costs for the order are generated.

The capacity requirements are generated for the workThe capacity requirements are generated for the work

centers.centers.

Purchase requisitions are generated for non-stock itemsPurchase requisitions are generated for non-stock items

and externally-processed operations.and externally-processed operations.

Other data of Production orderOther data of Production order


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Production resources/toolsProduction resources/tools Production resources/tools (PRTs) are, in contrastProduction resources/tools (PRTs) are, in contrast

to machines and fixed assets, moveableto machines and fixed assets, moveable

resources that are not tied to a particular locationresources that are not tied to a particular location

and can be used several times. In the productionand can be used several times. In the production

order production resources/tools must always beorder production resources/tools must always beallocated to a specific operation. However, theallocated to a specific operation. However, the

allocation can already take place in the routing.allocation can already take place in the routing.

Checking the Availability of MaterialChecking the Availability of Material


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Before you start with production, checkBefore you start with production, checkcan be done whether all the materialcan be done whether all the material

components allocated to the productioncomponents allocated to the production

order are available on the calculatedorder are available on the calculated

requirements dates.requirements dates.

In a production order, the system can onlyIn a production order, the system can only

check a material component, if it ischeck a material component, if it is kept in stockkept in stock

not a phantom itemnot a phantom item not a bulk materialnot a bulk material

Release of production orderRelease of production order The following restrictions apply to a production order withThe following restrictions apply to a production order with

the status "created and which is not releasedthe status "created and which is not released


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the status "created and which is not released.the status "created and which is not released.

Completion confirmations cannot yet be carried outCompletion confirmations cannot yet be carried out

for the order.for the order. Shop papers cannot be printed.Shop papers cannot be printed.

Stock movements I.e goods issues, receipts cannotStock movements I.e goods issues, receipts cannotbe carried out for the order.be carried out for the order.

The release of the order cancels these restrictions.The release of the order cancels these restrictions.

Printing orders is possible once the order is released.Printing orders is possible once the order is released.

Shopfloor papers include:Shopfloor papers include:

operation control ticketoperation control ticket

job ticketjob ticket

pick listpick list time tickettime ticket

confirmation slipconfirmation slip

ConfirmationsConfirmations Part of order monitoring, this documents thePart of order monitoring, this documents the


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g,gprocessing status of operations or sub-processing status of operations or sub-

operations. In the SAP System, a distinctionoperations. In the SAP System, a distinctionis made between partial and finalis made between partial and finalconfirmations.confirmations.

With confirmation you specifyWith confirmation you specify

The quantity in an operation that was produced as yield, scrapThe quantity in an operation that was produced as yield, scrapand the quantity to be reworkedand the quantity to be reworked

DatesDates

How much work was actually doneHow much work was actually done

Which work center was used for the operationWhich work center was used for the operation

Reason for varianceReason for variance Usually confirmations are made forUsually confirmations are made for

An orderAn order

An o erationAn operation

Order SettlementOrder Settlement When a production order is settled, the actualWhen a production order is settled, the actual

costs incurred for the order are settled to one orcosts incurred for the order are settled to one or


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costs incurred for the order are settled to one orcosts incurred for the order are settled to one or

more receiver cost-objects (for example, to themore receiver cost-objects (for example, to the

account for the material produced or to a salesaccount for the material produced or to a salesorder).order).

If the costs for the production order are settled toIf the costs for the production order are settled to

a material account, the order is credited eacha material account, the order is credited each

time material is delivered to stock. The materialtime material is delivered to stock. The materialstock account is debited accordingly.stock account is debited accordingly.

If the costs for the production order are settled toIf the costs for the production order are settled to

another receiver (for example to a sales order),another receiver (for example to a sales order),

the order is credited automatically at the time ofthe order is credited automatically at the time of

settlement.settlement.

ContentsContents


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Production Order CreationProduction Order Creation

Order ConfirmationOrder Confirmation

Goods MovementGoods Movement

ObjectiveObjective


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Increase awareness about:

the cross-functional implications, system checks and

the results of the transactions




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Which material is to be processed or producedWhich material is to be processed or produced

At which location I.e work center.At which location I.e work center.

At what time( when to produce ? )At what time( when to produce ? )

How much work(quantity) is required.How much work(quantity) is required.

Which resources/work centers are to be used andWhich resources/work centers are to be used and

How the order costs are to be settled.How the order costs are to be settled.



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You can create production orders either:

with or without material



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When a production order is created the followingWhen a production order is created the followingactions are carried out:actions are carried out:

A routing is selected, its operations and sequencesA routing is selected, its operations and sequences

are Transferred to the order.are Transferred to the order.

The bill of materials is exploded and the items inThe bill of materials is exploded and the items in

the bill of material are transferred to the order.the bill of material are transferred to the order.



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When a production order is created the followingWhen a production order is created the following

actions are carried out:actions are carried out:

The planned costs for the order are generated.The planned costs for the order are generated.

The capacity requirements are generated for theThe capacity requirements are generated for the

work centers.work centers.

Purchase requisitions are generated for non-stockPurchase requisitions are generated for non-stock

items and externally-processed operations.items and externally-processed operations.

Process Order CreationProcess Order Creation


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DataData

HeaderHeader: Quantities, dates and scheduling data.: Quantities, dates and scheduling data.

AllocationAllocation: Inspection Lot, Created/changed by,: Inspection Lot, Created/changed by,

responsibility, plants, other assignmentsresponsibility, plants, other assignments

Goods receipt:Goods receipt: Tolerances, receipt and deliveryTolerances, receipt and delivery

Master data:Master data: Recipe, production version, costingRecipe, production version, costing

datadata

Production Order CreationProduction Order Creation The following information is listed for every operation:The following information is listed for every operation:

h b ( h b f h


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The operation number (this number specifies theThe operation number (this number specifies the

sequence in which operations are processed).sequence in which operations are processed). The work center where the operation is to beThe work center where the operation is to be

executedexecuted

The control key that determines how the operation isThe control key that determines how the operation is

to be used (for example, whether it must beto be used (for example, whether it must beconfirmed, whether it can be scheduled, whether itconfirmed, whether it can be scheduled, whether it

can be printed, and so on)can be printed, and so on)

The current status of the operation (for example,The current status of the operation (for example,

whether it has already been created or released)whether it has already been created or released)

A short description of the operationA short description of the operation



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If a bill of material exists for the material to beIf a bill of material exists for the material to beproduced, the BOM items contained in the bill ofproduced, the BOM items contained in the bill of

material are automatically taken over into thematerial are automatically taken over into the

production order as components.production order as components.

Production Order ConfirmationProduction Order Confirmation A confirmation documents the state processing ofA confirmation documents the state processing of

orders operations sub operations and individualorders operations sub operations and individual


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orders, operations, sub-operations and individualorders, operations, sub-operations and individualcapacities. It is an instrument for controllingcapacities. It is an instrument for controllingorders.orders.

With confirmation you specifyWith confirmation you specify

The quantity in an operation that wasThe quantity in an operation that was

produced as yieldproduced as yield

datesdates

How much duration was requiredHow much duration was required

Which work center was used for theWhich work center was used for the

operationoperation reworkrework

reasons for deviationreasons for deviation

Production Order ConfirmationProduction Order Confirmation

ll fi i d f


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Usually confirmations are made forUsually confirmations are made for

An orderAn order

An operationAn operation

Production Order ConfirmationProduction Order Confirmation

Confirmations Result inConfirmations Result in


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a reduction in the capacity load on the resourcea reduction in the capacity load on the resource

an update of the costs, based on the confirmedan update of the costs, based on the confirmed

datadata

an update of the order data, such as times oran update of the order data, such as times or

order statusorder status

withdrawal postings for backflushed componentswithdrawal postings for backflushed components

an automatic goods receiptan automatic goods receipt

Goods MovementGoods MovementBefore you can start producing a material, all the necessary

i l h b i d f k i d


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material components have to be issued from stock via goods

issues. The delivery to stock of the manufactured material isdocumented in the system via a goods receipt. :

A material document is created to record the goods movement.

The stock quantities of the material are updated.

The stock values are updated in the material master record and

the stock/consumption accounts are updated.

Goods MovementGoods MovementMovement types


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261 for GI to order

101 for GR from order

SettlementSettlement

Single FG


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RM cost

5 Rs

+

Processing cost

10Rs

FG cost

15 Rs=


Multiple FG


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RM cost

5 Rs

+

Processing cost

10Rs

FG1 cost

? Rs

=

FG2 cost? Rs



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To decide the % of cost breakup we need the equivalence number


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