Production Planning

Work Centers for Fitter Snacker

R
a
w

M
a
t
e
r
i
a
l

W
a
r
e
h
o
u
s
e

(
1
0
0
)

Mixer
Mixer
Mixer
Mixer
Form Bake Pack
F
i
n
i
s
h
e
d

G
o
o
d
s

W
a
r
e
h
o
u
s
e

(
3
0
0
)

Snack Bar Line
Production (200)
Production Master Data
Company
Code
Valuation
Area
Plant
Material
Master
Work
Center
Bill of
Material
Routing
Capacity
Planning
Production
Orders
Product
Costing
Navigating Material Master Views
Click on tabs to select
Use direction arrows to scroll
Use icon to get list
Material Types
A Material Type is used to classify materials:
Defines material attributes like:
Valuation (value of material as market changes)
Procurement (internal, external or both)
Controls screen sequence and number assignment
Can restrict access using authorization groups
A number of material types are pre-defined
Abbreviations are abbreviations of German terms
Users can create their own material types
Usually best to copy a pre-defined type, then
modify

Material Types in Exercises
ROH: Raw material
Externally purchased only, no sales view
Oats, Wheat Germ, Honey, Cinnamon, etc.
HALB: Semifinished Product
No purchase or sales view
Dough for NRG-A and NRG-B bars
FERT: Finished Product
Produced internally, has sales views, no purchasing
views
NRG-A and NRG-B bars
Other Material Types
HAWA: Trading Goods
HIBE: Operating Supplies
VERP: Customer returnable packaging
LEER: Empty containers
KMAT: Configurable material
ERSA: Spare parts
DIEN: Services
NLAG: Non-stock, non-valuated material
UNBW: Non-valuated, stocked material
FHMI: Production resources/tools
WETT: Competitive products
PROD: Product group
IBAU: Maintenance assembly
Documentation in Material Master
The SAP R/3 system documents all changes
to the material master:

Click for documentation
Documentation in Material Master
Master Data Bill of Material
BOMs are represented as single-level
relationships between a material and its
components and sub-assemblies
## NRGA
(case)
## Dough NRGA
(lb)
## Oats
(lb)
## Wheat Germ
(lb)
## Cinnamon
(lb)
## Nutmeg
(lb)
## Cloves
(lb)
## Honey
(gal)
## Vit/Min Powder
(lb)
## Carob Chips
(lb)
## Raisins
(lb)
## Canola
(gal)
BOM for NRG-A
BOM for
Dough NRG-A
Routings
Routings define the relationship between a
material and the sequence of workcenters
(operations) that are required to produce the
material
Also specifies where sub-components and
sub-assemblies are needed in producing the
material
20 10 30 40 50 60
Functions of Production Orders
(part 1 of 2)
Status Management: Tracking, User-defined status
Scheduling
Calculation of Capacity Requirements (detailed)
Costing/Collection of Costs
Availability Checks (material, capacity, PRT-
production resources and tools)
Printing of Paper Orders/related documents
Assembly drawings and instructions
Inspection instructions
Storage regulations
Material Staging: withdrawal of materials used in
production, e.g. components and sub-assemblies
Confirmations: quantities, activities, times
Goods receipt: receipt of completed materials
Period-end closing: Process cost allocation, overhead
costs, surcharges, WIP (work-in-process) calculation,
variance calculation, order settlement
Archiving and retrieval
Many more: rework, serial numbers, as-built, quality
control, etc.

Production Orders capture actual data
costs, dates, etc.
Functions of Production Orders
(part 2 of 2)
Status Management
(part 1 of 2)
Status Management is one tool that can be used to
manage released production orders
A status can allow, allow with warning, or block a
business transaction
Two status types are available
System status: internal, predefined, fixed number
User status: freely definable, set by user
Status Status detail
Status Management
(part 1 of 2)
Planned Orders vs. Production
Orders
Planned Orders are for PLANNING
Production Orders are for EXECUTION

Planned Order 3 weeks in future
Planned Orders 2 weeks in future
Planned Orders 1 week in future
Production Orders released today
Planning
Execution
Master Data for Production Orders
Master Data is data that does not change frequently
Master Data for the production order comes from:
Material Master
Bill of Material (BOM)
Work Center
Routing
Production Resources/Tools (PRT)
Materials like gages, fixtures, test equipment
Can also be items like drill bits that can be
consumed in production but arent consumed
INTO the product
Most Production Order data comes from BOM and
Routing
1
Order Request
2
Order Creation
3
Availability
Checks
Machine
Reservation
4
Order Release
5
6
Print Order
7
Download to
PDC system
8
Material staging
9
Material withdrawal
posting
10
Upload from
PDC system
11
Variance
Calculation
Confirmation
12
WIP
Determination
13
Goods Receipt
14
15
Order
settlement
16
Archiving &
Deletion
Production
Order
Cycle
Routing Selection
Different routings can be selected for a product
depending on a number of criteria like:
Raw material used
Lot size
Product features/configurations (variants)
A complicated, automatic selection process
can be configured
Bill of Material (BOM)
The system selects the FIRST Valid BOM it
finds
Validity can depend on:
Date (engineering changes)
Customer
Serial number
Material
Material Assignment
OP
0010
OP
0020
OP
0030
OP
0080
OP
0090
..
Material
M
a
t
e
r
i
a
l

Material
OP
0010
OP
0020
OP
0030
OP
0080
OP
0090
..
Material
M
a
t
e
r
i
a
l

Assigned via BOM:
All materials assigned to
first operation
Assigned via Routing:
Materials can be assigned
to specific operations