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Introduction
Why Material Management ???
Process Flow
Material Management Integration
Material Management Component
Benefits of Material Management
Implementation Challenges
Thank you !!!
Introduction
SAP MM Module is one of the most important SAP Modules where MM
stands for Materials Management - underpins the supply chain,
including
Requisitions
Purchase orders
Goods receipts
Accounts payable
Inventory management
BOMs
Master raw materials, finished goods etc
Why
Need
MM
???
amount spend on material is higher
than other inputs
Process Flow
orders
S
U
P
P
I
E
R
S
R
E
C
I
V
I
N
G
Purchasing
Raw
Material
Storage
Finish
Goods
Storage
Transformation
Processes
In Process
Storage
D
I
S
T
R
I
B
T
N
C
U
S
T
O
M
E
R
MM Integration
SD
QM
Quality Management
PM
MM
Production Planning
Production Managemen
Financial Accounting
FI
AM
Asset Management
Material Management
Controls
CO
PS
Project System
Purchasing (MM-PUR)
Consumption
based
planning
CBP is based on the past consumption values and uses the forecast or
other statistical procedure to determine future requirements. It gets
trigger when stock level falls below pre-defined reorder points.
Procedure available for MRP : Reorder point procedure
Forecast based planning
Time-phased materials planning
Purchasing
Purchasing is a component of Material
Management.
Task of Purchasing as following : External procurement of material &
services
Determination of possible source of
supply
Monitoring deliveries from and payment
to vendors.
Integration with :-
SD, FI & CO
Inventory Management
Task of SAP-IM as following : Management of material stocks on a
quantity and value basis
Vendor Evaluation :-
Benefits of MM
Material cost can be lowered
down
Controlling of indirect cost
Risk of Inventory loss
minimized
Reduction in loss of time of
direct labor
Control of manufacturing cycle
Material congestion in storage
places avoided
Improvement in delivery of the
product
Implementation Challenges
Optimizing
time and
quality for
product
Selection
of
appropriate
vendors
Difficulty in
forecast
accurate
demand
Management
of
information
Appendix I MM Definition
Material management is the grouping of management functions
supporting the complete cycle of material flow, from the purchase and
the internal control of production material to the planning and control of
work in process to the warehouse shipping and distribution of the
finished product. Thomas f Wallance.
----------------------------------
Services
Finished Product
Production Resources / tools
Semi finished Products
Trading Tools
Operating Supplies
Non-stock material
Row Material
Non Valuated Material
Packaging material
Competitive product
http://www.sap-img.com/materials/sap-mm-configuration-tips.htm
Plant
An organization unit for dividing enterprise according to production,
procurement, maintenance & material planning.
Storage Location
Warehouse Stock Location
Vendor Master
Contains details about all the vendors within a company.
Goods Receipts
Term for inventory management denoting a physical inward movement
of goods or material.
Material Group
Grouping of material and services according to their characteristics.
Release Strategy
Plan define the release code with which a purchase requisition item, a
complete purchase requisition or a complete external purchasing
document must be release.
Appendix IV MM Tables
EINA
EINE
MAKT
Material description
MARA
Document header
T156
Movement type
T024
Purchasing group