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Ho me Te c h nica l Inter vie w Q 's J o bs Te s timo nials C on ta c t Us

Typical Production cycle in Process Industry

Topics:

By R.Balaji, Infosys Technologies

General Topics

The below production cycle explains the basic business flow in Process Industry. The flow is
generally focusing only on Production and Quality Management

Materials Management
Sales & Distribution

Simple Production Cycle:

Financials

Consider all Raw materials are available in plant and production process yet to start, the following
stages are to be followed

CRM
Production Planning

1. Create Process Order

Plant Maintenance

Here we are creating a process order based on the capacity of the equipments and
resource availability

HCM (HR)
Project Systems

2. Release the Process order

Warehouse Management

Once Process order created, it has to be released for production, means system will
check the scheduling, material availability, capacity planning, etc., and then release
process takes place

Contribute
3.

Goods issue from the Stores

Join the Mailing List

Once PO got released, goods issue against the process order will takes place
Enter name and email address below:

4.

Name:

Start processing
Product process against the PO will start

Email:

5.
Subscribe

Confirmation Process

Unsubscribe

After production, the final out put confirmation from the process will be entered
6.

Goods Receipt Process

Goods receipt process plays a major role in any business here we have to do 101
movement type and do the postings. In goods issue process they will issue the goods
against PO in 261 movement type.

7.

Quality Approval and Release

Once GR from the production was made, the material will come to Quality control for
approval. Here QC person will check the material and they will do the result recording
and usage decision

8.

Stock will appear in Unrestricted use for SALE / Further Process

Once usage decision was made the material will automatically moved into unrestricted
use. The FG is ready for sale

By keeping above all points in mind, the following masters and transactions are required to
proceed
S.
No

Master

Transaction

T-code

Description

Where has to be used

MM01

Create Material

Used for creating Recipe

and further tracking

CRC1

Create Resource

Machine / set of Machines

used for making the
product

C201

Create Recipe

Here we are calling

resource and materials
required to make the
finished product

QS21

Create MIC

List of specifications to
be checked for that
concerned finished goods

QP01

Create
Plan

Creating Quality Plan

Quality

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COR1

Create
Order

Process

MIGO with
261
movement

Goods
Process

CORK

Confirmation
Process

Production
Output
confirmation Process

QA32

Quality Approval
and
Usage
Decision

QC will
release
process

Issue

Initiating
Production
Process
by
creating
Process Order
Goods
issue
Manufacturing unit

to

approve and
for
further

Step by Step Execution Process:

Scenario Explanation:
REQUIREMENTS:
For a leading Process Manufacturing Company ABC, they are selling the product FG 1, the
raw materials and resource requirements are listed below
Raw Materials required for making 50kg of Finished Product, FG 1 are
S.No

Material
Code
/
Material Type

Material
Description

Quantity
required

Unit of Measurement

RM l 1 / ROH

Raw Material 1

80

Kg

RM 2 /ROH

Raw Material 2

20

Kg

BP 1 / FERT

Byproduct

60

Resources required for making 50kg of Finished Product FG1

S.No

Resource Code

Resource Description

Capacity

CRC-001

Reactor

2KL

CRC-002

Vessel

4KL

List of MASTERS required for addressing the above scenario

1.

Create Materials using MM01 transactions in the following way:

In this screen select select views button and extend the following fields

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We have selected basic information entries field. Fill the information and finally select the General
plant / storage data and give plant as 1100 and storage as 0001 in case of Raw material.
The same procedure has to be repeated for finished goods and Co-Products, in plant storage data
we have to give Plant 1100 and storage 0004.
2.

Create Resource master using CRC 1 Transactio

Click here to continue...

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