sap production processes

8/12/2019 SAP Production Processes

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Production Planning

(PP)

- Overview -


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January 2008 SAP AG - University Alliances and The RushmoreGroup, LLC 2007. All rights reserved.

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Components of Production Planning

Production

Planning

(PP)

Production

Planning

SOP

CapacityPlanning

MRP

Product

Cost

Planning

Repetitive

Mfg.

Production

Control

KANBANMaster

Data

DRP


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Planning Process

Execution

Execution

Detailed Planning

High Level Planning

Forecasting

Sales and Operations

Planning

Demand

Management MPS MRP

Sales Information

System

CO/PA

Manufacturing

Execution

Order

Settlement

Procurement

Process


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Material Requirements Planning

A set of techniques utilizing bills of materials,inventory data (lead times and current status) andthe master production schedule to calculaterequirements for raw materials, components, and

subassemblies

A time-phased planning tool with a defined, specificalgorithm

Balances supply and demand


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Inventory

MasterSchedule

PlanningRules

Bill ofMaterial

OrdersForecasts

M

R

P

P

r

o

ce

s

s

Recommended

Procurement

Recommended

Production

Inputs Outputs

MRP Process


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Material Requirements Planning

Elements

Requirement elements (demand) Withdrawals from inventory

Maintenance must be done at source of demand

Two types of demand

Replenishment elements (supply)

Receipts into inventory

Maintenance can be adjusted manually


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Elements of A Production Order

Raw Materials &Sub-Components

Bill of Material

Components

(Production Parts

List)

WorkCenter

Operations

ProductionRouting

ProductionOrder


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Organizational Data

Client Company code

Plant (shipping plant)

Storage location

Work center location


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Scheduleand Release

Shop FloorDocuments

GoodsReceipt

OrderSettlement

Goods

Issue

ProductionProposal

(Planning/Other)

CompletionConfirmation

CapacityPlanning

Production Process(Make-to-Stock)


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Organization

Plant specific organizational units Materials Requirements Planning controller

Production controller/production scheduler/planner group

Person responsible (financially)


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Organization

Non-plant specific organizational units Capacity planner


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MRP Control Parameters

Environment Number range

Master Data

Materials Requirements Planning controllers Float times

Planned Orders

Conversion order type

Dependant requirement availability


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MRP Control Parameters (continued)

Planning run Bill of Material (BOM) selection

External procurement

Planning horizon

Availability Check

Material

Production Resource/Tool (PRT )

Capacity Scheduling Control Parameters


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General Planning Parameters

Order Type Control Parameters Types of routings, BOMs per order type: manually or

automatically

Availability checking

Create Confirmation Parameters

Reservations

Status Updates

Define Valuation of Goods Received Moving Average Price Control evaluation


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Material Master Planning Parameters

Materials Requirements Planning views formaterials

Work Scheduling views for manufactured products


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Business Rules and Parameters

Automatic postings (account determination) COGS, Material consumption, inventory

Activate MRP

Availability checks Scheduling parameters

Order parameters

Confirmation parameters

Planning parameters

Consumption based planning

MRP


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Master Data

Master data is relatively fixed Material master data

Vendor master data

Purchasing information record

General Ledger master data

Before making the master data configurations, youmust have completely defined the organizational

structures


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Overview

Material Group Material Master

Material Types

Material Master Views Purchasing Info Record

Source List


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Material Group

The material group field allows similar materials tobe managed together

Material group is used in reporting

Executive Information Systems (EIS)

Logistics Information Systems (LIS)

Etc.


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Material Master

Material master data can be related directly to allorganizational levels

General information of a material (description,number, base unit of measure) however has to berelated to the highest level of organization - theclient

Further tailor the material master at the plant level or

lower


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Material Type

Categorizes materials Defines the material attributes

Valuation

Procurement

Price control Etc.

Controls transaction involving the material

Controls screen sequence, number assignment,field selection, account determination


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Material Types

Standard material types are used in all industries ROH: Raw Materials

Purchased externally only

No sales view

HAWA: Trading Goods Always purchased externally Sold without any change to the material

No manufacturing views exist

FERT: Finished Products

Are normally produced internally No purchasing views exist


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Additional Material Type

HIBE: Operating Supplies VERP: Customer returnable packaging

LEER: Empty containers

KMAT: Configurable material ERSA: Spare parts

DIEN: Services


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Material Master Views

Basic data Classification

Sales: sales organization data

Sales: general/plant data Sales text

Purchasing

Purchase order text Forecasting

ExecutivePen


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Material Master Views (continued)

MRP 1, 2 Work scheduling

Storage

Warehouse management Quality management

Accounting

Costing

ExecutivePen


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Material Master Forecasting

Number of Periods Required Historical Periods The number of historical values the system uses for the forecast

Forecast Periods Number of period splits for which a forecast should be created

Forecast Values The numeric quantity for future periods

Consumption Values The sum of planned and unplanned consumption


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Material Master MRP 1

General Data Purchasing Group The buyer(s) who are responsible for certain purchasing

activities

MRP Procedures

MRP Type Determines whether and how the material is planned

Reorder Point If stock falls below this point, the system is flagged to create a

planned order

MRP Controller The person(s) responsible for the material planning


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Material Master MRP 1 (cont.)

Lot Size Data Lot Size The lot sizing procedure to calculate the quantity to be produced

or procured

Minimum Lot Size

The smallest order quantity Fixed Lot Size

The quantity to be ordered


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Scheduling Planned Delivery Time Number of calendar days needed to obtain the material

Scheduling Margin Key Used to determine the floats required for scheduling

Net Requirement Calculation Safety Stock

Specifies the quantity whose purpose is to satisfy unexpectedlyhigh demand in the coverage period


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Availability Check Specifies whether and how the system checks

availability and generates requirements for materialsplanning


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Production oriented Master data

Bill of Material Master Data Work Center Master Data

Work Center Control Key

Routing Routing Use

Material Types and Production

Controlling Activities For Production Activity Prices


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Bill of Material Master Data

Bill of Materials (BOMs) are created as single-levelrelationships between one parent material and thesub-component material

EPEN

Barrel Cap Crown Cartridge Band Clip


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Variant Bill of Material (BOM) Several products with a large proportion of identical

parts.

EPEN - Red

Red

CartridgeBand Etc.

Black

CartridgeBand Etc.

EPEN - Black


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Multiple Bill Of Materials (BOM) One product produced from alternative components

or processes, where the differences are small(usually the quantity of a component).

BOM 1 = lot size 1 - 100

BOM 2 = lot size 101999

Black

Cartridge

(Make)

BandEtc.

EPEN - Black

Black

Cartridge

(Buy)

Band Etc.

EPEN - Black


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Where is the Bill Of Material (BOM) used? MRP uses the BOM to determine dependent

requirements

Controlling uses the Bill Of Material (BOM) to calculate

product costs Production uses the Bill Of Material (BOM) to issue the

proper quantities of components and raw materials to theshop floor


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Work Center Master Data

Unique production or assembly area May include

Equipment

Groups of equipment

Production lines

Employees

Groups of employees

Operations carried out at work center


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Work center used to define capacities Labor

Machine

Output

Emissions

Capacities used in

Capacity requirements planning (CRP)

Detailed scheduling Costing


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Assigned Cost center

Work Center only assigned to one cost center

Human Resources (HR)

Qualifications Positions

People

C


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Work Center

Work Centers have multiple views Basic data

Default values

Capacity overview

Scheduling

Cost center assignment

Technical data

W k C t C t l K


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Work Center Control Key

Scheduling Determine capacity requirements

Inspection characteristics required

Automatic goods receipt by operation Print time tickets & confirmations

Rework

Cost Schedule external operationsstd values

Confirmations

R ti


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Routing

Routings enable you to plan the production ofmaterials

Routings are used as a template for productionorders and run schedules as well as a basis forproduct costing.

Routing is a sequence of operations which detailthe manufacture of a product

R ti


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Routing

Routing are used to determine: Operations

Work centers

Material components

Production resources and tools

Quality Checks

R ti U


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Routing Use

Routings will be used in Scheduling (dates, times)

Costing

Capacity planning

Production orders

R ti


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Routing

StandardSequence

AlternateSequence

ParallelSequence

Operation 10

Operation 20

Operation 30

Operation 40

Operation 10

Operation 20

Operation 30

Operation 40

Operation 25

Operation 20

Operation 10

Operation 30

Operation 40

Operation 25

M t i l T All d I P d ti


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Material Types Allowed In Production

Multiple material types may be used in arouting/BOM

Raw materials

Semi-finished product

Trading goods are allowed but not standard

Text or Reference materials common

Di l R ti Li t


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Display Routing List

A collective report displaying the available routingsand the material allocations to operations

Four General Types

Operations Related

Component Related

PRT Related

General List (Operation Control Ticket)

C t lli A ti iti f P d ti


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Controlling Activities for Production

Used to perform internal cost allocation, whereactivities by a cost center are measured

Labor time

Machine hours

Output activities are valued

Allocation of an activity type is always made withthe allocation cost element created in activity type

planning

A ti it P i


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Activity Prices

Prices (costs) for planned activities Fixed or Variable

Labor = $$/hour

Machine = $/hour

Overhead = %

Transaction Data


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Transaction Data

Includes transactions that describe businessactivities

Unlike master data, aggregate transactional data isdynamic - it constantly changes, usually many

times per day

Transactions use organizational structure, masterdata, and rules

Production Process


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Scheduleand Release

Shop Floor

Documents

GoodsReceipt

OrderSettlement

Goods

Issue

ProductionProposal

(Planning/Other)


CapacityPlanning

Production Process(Make-to-Stock)

Production Order


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Production Order

Production Order Defines Material is to be processed

At what location (work center)

At what time

How much work is required

Resources to be used

Order costs settlement

Production Order Standard Process


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Production Order Standard Process

Documents/Procedures used in the manufacture ofmaterial

Order creation/Order Conversion

Capacity planning

Order scheduling

Order release/processing

Shop floor documents

Completion confirmation

Goods receipts

Order settlement

Production Order Release


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Production Order Release

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

A routing selected: operations and sequences

The bill of materials transferred

Reservations generated for bill of material items in stock

Production Order Release (cont )


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Production Order Release (cont.)

When a production order is created the followingactions are carried out: The planned costs are generated

The capacity requirements generated for the work centers

Purchase requisitions generated for non-stock items and externally-processed operations

Production Order Elements


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Production Order Elements

Order header Order number

Material produced

Plant

Quantity Dates

PRT Tooling

Equipment

Operations Tasks

Work centers

Times

Dates

Control keys

Components

Material components Quantity

Production Order Completion and


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pSettlement

Completionconfirmation Quantities of material

used

Operations completed

Time

Personnel

Costs

Planned costs andactual costs

Settlement rule for theorder for accounts/costcenters

Settlement profile

Settlement receiver

Production Order Completions


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Production Order Completions

Completion confirmation: Confirms both the yield and scrap quantities

Backflushing Can create goods movements

Reduction of component reservations Receipt of product if automatic Goods Receipt (G/R) set

Activity costs

Production Order Costs


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Planned costs Primary Costs

Material Costs (BOM)

Based on material master price for each component

Cost for External Processing Secondary Cost

Production Costs (Routing)

Material Overhead Costs

Production Overhead Costs



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Actual costs Primary Costs BOM components

Updated when goods are issued to order, or when purchasedmaterials are received

Secondary Costs Uses routing

Time Cards from Operations

May include activity costs

Material Overhead Costs

Production Overhead Costs

Gets updated at completion confirmation

Production Order Status


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Production Order Status

REL: Released

CRTD: Created

PRT: Printed

CNF: Confirmed DLV: Delivered

PRC: Pre-costed

GMPS: Goodsmovement posted

MACM: MaterialCommitted

MANC: Mat.Availabilitynot checked

NTUP: Dates are notupdated

SETC: Settlementrule created

PurchaseOverall Process


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Sales Order

Process

Sales Order

Entry

CheckAvailability

ProductionProcess

Run MPS w/MRP

Convert ProductionProposal

Schedule

and Release

Procurement

Process

Pick

Materials

GoodsIssue

Purchase

Requisition

PurchaseOrder

GoodsReceipt

Invoice

Receipt

Paymentto Vendor


Goods

Receipt

QualityInspection

OrderSettlement

Post GoodsIssue

Invoice

Receipt ofPayment

Overall Process