Production Processes

Production Planning
(PP)
- Overview -
Overview
Components of Production Planning

Production Process Overview
Planning Process Overview
MRP
Elements of a Production Order
January 2008
SAP AG - University Alliances and The Rushmore

Group, LLC 2007. All rights reserved.
Components of Production Planning
MRP
Production
Planning
(PP)
Production
Planning
Product
Cost
Planning
Master
Data
KANBAN
Repetitive
Mfg.
SOP
DRP
January 2008
Production
Control
Capacity
Planning

Planning Process
Execution
High Level Planning
Procurement
Process
CO/PA
Detailed Planning
Forecasting
Sales and Operations
Demand
Planning
Management
MPS
Sales Information
MRP
Manufacturing
System
Execution
Order
Settlement
Execution
January 2008

Material Requirements Planning

A set of techniques utilizing bills of materials,
inventory data (lead times and current status) and
the master production schedule to calculate
requirements for raw materials, components, and
subassemblies
A time-phased planning tool with a defined, specific
algorithm
Balances supply and demand
January 2008

MRP Process
Outputs
Inputs
M
R
P
Planning
Rules
Master
Bill of
Schedule Material
Inventory Forecasts
January 2008
Orders
P
r
o
c
e
s
s
Recommended Recommended
Procurement
Production

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
January 2008

Elements of A Production Order

Work
Center
Raw Materials &

Sub-Components
Bill of Material
Production
Order
Operations
Components
(Production Parts
Production
Routing
List)
January 2008

Organizational Data
Client
Company code
Plant (shipping plant)
Storage location
Work center location
Production Process (Make-to-Stock)

Production
Proposal
(Planning/Other)
Capacity
Planning
Schedule
and Release
Shop Floor
Documents
Order
Settlement
Goods
Issue
Goods
Receipt
January 2008
Completion
Confirmation

10
Organization
Plant specific organizational units
Materials Requirements Planning controller
Production controller/production scheduler/planner group
Person responsible (financially)
January 2008

11
Organization
Non-plant specific organizational units
Capacity planner
January 2008

12
MRP Control Parameters

Environment
Number range
Master Data
Materials Requirements Planning controllers
Float times
Planned Orders
Conversion order type
Dependant requirement availability
January 2008

13
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
January 2008

14
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
January 2008

15
Material Master Planning Parameters

Materials Requirements Planning views for
materials
Work Scheduling views for manufactured products
January 2008

16
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
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, you

must have completely defined the organizational
structures
January 2008

18
Overview
Material Group
Material Master
Material Types
Material Master Views
Purchasing Info Record
Source List
January 2008

19
Material Group
The material group field allows similar materials to
be managed together
Material group is used in reporting
Executive Information Systems (EIS)
Logistics Information Systems (LIS)
Etc.
January 2008

20
Material Master
Material master data can be related directly to all
organizational levels
General information of a material (description,
number, base unit of measure) however has to be
related to the highest level of organization - the
client
Further tailor the material master at the plant level or
lower
January 2008

21
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
January 2008

22
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
January 2008

23
Additional Material Type
HIBE:
VERP:
LEER:
KMAT:
ERSA:
DIEN:
January 2008
Operating Supplies
Customer returnable packaging
Empty containers
Configurable material
Spare parts
Services

24
Material Master Views
Basic data
Classification
Sales: sales organization data
Sales: general/plant data
Sales text
Purchasing
Purchase order text
Forecasting
January 2008
sing
a
h
c
Pur iew
MR
V
P
Vie 1
w
Executive
Pen

25
Material Master Views (continued)
MRP 1, 2
Work scheduling
Storage
Warehouse management
Quality management
Accounting
Costing
January 2008
sing
a
h
c
Pur iew
MR
V
P
Vie 1
w
Executive
Pen

26
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
January 2008

27
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
January 2008

28
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
January 2008

29

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 unexpectedly
high demand in the coverage period
January 2008

30

Availability Check
Specifies whether and how the system checks
availability and generates requirements for materials
planning
January 2008

31
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
January 2008

32

Bill of Materials (BOMs) are created as single-level
relationships between one parent material and the
sub-component material
EPEN
Barrel
January 2008
Cap
Crown
Cartridge
Band

Clip
33

Variant Bill of Material (BOM)
Several products with a large proportion of identical
parts.
EPEN - Red
Red
Cartridge
January 2008
Band
EPEN - Black
Etc.
Black
Cartridge
Band

Etc.
34

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 101 999
EPEN - Black
Black
Cartridge
(Buy)
January 2008
Band
EPEN - Black
Etc.
Etc.
Band

Black
Cartridge
(Make)
35

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 the
shop floor
January 2008

36

Unique production or assembly area
May include
Equipment
Groups of equipment
Production lines
Employees
Groups of employees
Operations carried out at work center
January 2008

37

Work center used to define capacities
Labor
Machine
Output
Emissions
Capacities used in
Capacity requirements planning (CRP)
Detailed scheduling
Costing
January 2008

38

Assigned
Cost center
Work Center only assigned to one cost center
Human Resources (HR)

Qualifications
Positions
People
January 2008

39
Work Center
Work Centers have multiple views
Basic data
Default values
Capacity overview
Scheduling
Cost center assignment
Technical data
January 2008

40
Work Center Control Key
Scheduling
Determine capacity requirements
Inspection characteristics required
Automatic goods receipt by operation
Print time tickets & confirmations
Rework
Cost
Schedule external operations std values
Confirmations
January 2008

41
Routing
Routings enable you to plan the production of
materials
Routings are used as a template for production
orders and run schedules as well as a basis for
product costing.
Routing is a sequence of operations which detail
the manufacture of a product
January 2008

42
Routing
Routing are used to determine:
Operations
Work centers
Material components
Production resources and tools
Quality Checks
January 2008

43
Routing Use
Routings will be used in
Scheduling (dates, times)

Costing
Capacity planning
Production orders
January 2008

44
Routing
Standard
Sequence
Alternate
Sequence
Operation 10
Operation 10
Operation 20
Operation 20
Parallel
Sequence
Operation 10
Operation 20
Operation 25
Operation 25
Operation 30
Operation 30
Operation 30
Operation 40
January 2008
Operation 40
Operation 40

45
Material Types Allowed In Production

Multiple material types may be used in a
routing/BOM
Raw materials
Semi-finished product
Trading goods are allowed but not standard
Text or Reference materials common
January 2008

46
Display Routing List

A collective report displaying the available routings
and the material allocations to operations
Four General Types
Operations Related
Component Related
PRT Related
General List (Operation Control Ticket)
January 2008

47
Controlling Activities for Production

Used to perform internal cost allocation, where
activities by a cost center are measured
Labor time
Machine hours
Output activities are valued

Allocation of an activity type is always made with
the allocation cost element created in activity type
planning
January 2008

48
Activity Prices
Prices (costs) for planned activities
Fixed or Variable
Labor = $$/hour
Machine = $/hour
Overhead = %
January 2008

49
Transaction Data
Includes transactions that describe business
activities
Unlike master data, aggregate transactional data is
dynamic - it constantly changes, usually many
times per day
Transactions use organizational structure, master
data, and rules
January 2008

50
Production Process
(Make-to-Stock)
Production
Proposal
(Planning/Other)
Capacity
Planning
Schedule
and Release
Shop Floor
Documents
Order
Settlement
Goods
Issue
Goods
Receipt
January 2008
Completion
Confirmation

51
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
January 2008

52
Production Order Standard Process

Documents/Procedures used in the manufacture of
material
Order creation/Order Conversion

Capacity planning
Order scheduling
Order release/processing
Shop floor documents
Completion confirmation
Goods receipts
Order settlement
January 2008

53
Production Order Release

When a production order is created the following
actions are carried out:
A routing selected: operations and sequences
The bill of materials transferred
Reservations generated for bill of material items in stock
January 2008

54
Production Order Release (cont.)

When a production order is created the following
actions are carried out:
The planned costs are generated
The capacity requirements generated for the work centers
Purchase requisitions generated for non-stock items and externallyprocessed operations
January 2008

55
Production Order Elements

Order header
Order number
Material produced
Plant
Quantity
Dates
PRT
Tooling
Equipment
January 2008
Operations
Tasks
Work centers
Times
Dates
Control keys
Components
Material components
Quantity

56
Production Order Completion and

Settlement
Completion
confirmation
Quantities of material
used
Operations completed
Time
Personnel
Settlement rule for the

order for accounts/cost
centers
Settlement profile
Settlement receiver
Costs
Planned costs and
actual costs
January 2008

57
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
January 2008

58
Production Order Costs

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
January 2008

59
Production Order Costs

Actual costs
Primary Costs
BOM components
Updated when goods are issued to order, or when purchased
materials 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

January 2008

60
Production Order Status
REL:
CRTD:
PRT:
CNF:
DLV:
PRC:
January 2008
Released
Created
Printed
Confirmed
Delivered
Pre-costed
GMPS:
Goods
movement posted
MACM:
Material
Committed
MANC:
Mat. Availability
not checked
NTUP:
Dates are not
updated
SETC:
Settlement rule
created

61
Overall Process
Purchase
Order
Purchase
Requisition
Schedule
and Release
Convert Production
Proposal
Goods
Issue
Run MPS w/MRP

Check
Availability
Sales Order
Entry
Sales Order
Process
Receipt of
Payment
Invoice
January 2008 Customer
Pick
Materials
Procurement
Process
Invoice
Receipt
Production
Process Completion
Confirmation
Quality
Inspection
Goods
Receipt
Payment
to Vendor
Goods
Receipt
Order
Settlement
Post Goods
Issue
62

Production Processes

Hochgeladen von

Dokumentinformationen

Copyright

Verfügbare Formate

Dieses Dokument teilen

Dokument teilen oder einbetten

Freigabeoptionen

Stufen Sie dieses Dokument als nützlich ein?

Sind diese Inhalte unangemessen?

Copyright:

Verfügbare Formate

Production Processes

Hochgeladen von

Copyright:

Verfügbare Formate

Production Planning

Components of Production Planning

SAP AG - University Alliances and The Rushmore

Components of Production Planning

SAP AG - University Alliances and The Rushmore

High Level Planning

Sales and Operations

SAP AG - University Alliances and The Rushmore

Material Requirements Planning

SAP AG - University Alliances and The Rushmore

SAP AG - University Alliances and The Rushmore

Material Requirements Planning

Replenishment elements (supply)

SAP AG - University Alliances and The Rushmore

Elements of A Production Order

Raw Materials &

SAP AG - University Alliances and The Rushmore

Work center location

Production Process (Make-to-Stock)

SAP AG - University Alliances and The Rushmore

SAP AG - University Alliances and The Rushmore

SAP AG - University Alliances and The Rushmore

MRP Control Parameters

SAP AG - University Alliances and The Rushmore

MRP Control Parameters (continued)

Scheduling Control Parameters

SAP AG - University Alliances and The Rushmore

General Planning Parameters

Create Confirmation Parameters

Define Valuation of Goods Received

SAP AG - University Alliances and The Rushmore

Material Master Planning Parameters

SAP AG - University Alliances and The Rushmore

Business Rules and Parameters

Material master data

Before making the master data configurations, you

SAP AG - University Alliances and The Rushmore

SAP AG - University Alliances and The Rushmore

SAP AG - University Alliances and The Rushmore

SAP AG - University Alliances and The Rushmore

Controls transaction involving the material

SAP AG - University Alliances and The Rushmore

HAWA: Trading Goods

FERT: Finished Products

SAP AG - University Alliances and The Rushmore

Additional Material Type

SAP AG - University Alliances and The Rushmore

Material Master Views

SAP AG - University Alliances and The Rushmore

Material Master Views (continued)

SAP AG - University Alliances and The Rushmore

Material Master Forecasting

SAP AG - University Alliances and The Rushmore

Material Master MRP 1

SAP AG - University Alliances and The Rushmore

Material Master MRP 1 (cont.)

Minimum Lot Size

Fixed Lot Size

SAP AG - University Alliances and The Rushmore

Material Master MRP 2

Planned Delivery Time

Scheduling Margin Key

Net Requirement Calculation

SAP AG - University Alliances and The Rushmore