Scenario Overview

H84: Make-to-Stock (MTS) Production with Batch Management, Warehouse Management (WM) and Handling Unit Management (HUM)

MTS-Production w. Batch Management, WM and HUM Overview I

The scenario H84 Make-to-Stock (MTS) Production with Batch Management, Warehouse Management and Handling Unit Management describes the processes involved in sales-order-independent production including a variety of logistic functions, such as bulk material, scrap, missing parts with workflow, rework, handling unit management, batch management, first in first out material consumption and manufacturing part numbers.  Material costing  Sales order processing and offset against planned independent requirements  Material requirements planning (MRP)  Planned orders / purchase requisitions processing  Procurement with scheduling agreement  Manufacturers Part Number Processing (MPN)  Bulk material handling  Production order processing

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MTS-Production w. Batch Management, WM and HUM Overview II

 Warehouse management (WM), lean WM processing  Picking according WM/PP material staging  Batch management  Scrap processing  Rework order process  Workflow for missing parts (optional)  Barcode integration (optional) for order confirmations and picking list  Handling unit management (HUM)  Goods issue and billing  Order settlement

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MTS-Production w. Batch Management, WM and HUM Business View

Business Benefits
Costing Run: The purpose is to calculate prices for the selected materials which are then updated in the material master records as the standard price. The standard price is used to valuate goods movements within the company. The price update involves two steps: marking the calculated price and then releasing it. Before you can mark the prices, you have to allow it for the company. Sales order processing with availability check: The system checks the incoming sales orders to determine whether the components are available. The available warehouse stock and the receipts from forecast planning are taken into account. Therefore, the system calculates the confirmed delivery date from the receipt date of the next (still unplanned) planned or prod. order. If a suitable receipt element is found, the sales order receives a confirmation date, and the order confirmation can be printed out. At the same time, the system compares the forecast details with the specific customer requirements.

Customer

Manufacturer / Supplier

Business Benefits
Material Requirements Planning (MRP): The daily MRP run generates replenishment elements at each lowlevel code. The system automatically generates purchase requisitions for purchased parts within the 3-month opening period for the planned order. The system uses planned orders to implement receipt elements, which are also required. In general, the system also creates planned orders for parts, which will be produced internally. When the planned opening date has been reached, these planned orders are converted to production orders by the production planner. As a result, the system reserves all of the required components. In the material master for all of the Interface Cards in this series, the planned opening date is set to 5 days. Some raw materials and packing material are planned on a consumption basis. Since these parts are required for a variety of other Boards and Cards, large quantities of this material are to be stored in the warehouse. Replenishment orders are triggered as soon as a specified reorder point is reached. The stock issues are backflushed when the turn activity is confirmed.

Costing run

Customer Order is transferred via eMail / Fax

Sales Order Processing with Availability Check

MRP at plant level

Production Order Processing Create Production Order

Scrap treatment and analysis

Purchasing Create Purchase Orders

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MTS-Production w. Batch Management, WM and HUM Business View

Business Benefits Customer Manufacturer / Supplier Business Benefits
Procurement with Manufacturing Part Numbers: The process integrates the manufacturing parts number, batch and quality management process in procurement. Quality Inspection: To ensure that the delivery of material meets predefined quality standards, a quality inspection is performed and the result recorded in the inspection lot according to the defined inspection plan. The usage decision is made to accept the material and it is moved to unrestricted stock.

Purchasing Manufacturing parts number processing

PurchasingMaintain delivery schedule for scheduling agreement

Post goods receipt WM, Lean WM, MPN

Analysis and treatment for bulk materials

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MTS-Production w. Batch Management, WM and HUM Business View

Business Benefits
Make-to-stock production/ Production Order Processing: The production planner releases the production orders created on the release date, and simultaneously prints the shop floor papers with bar code. Production orders with missing parts are usually not released by the production planner. However, in exceptional cases, the production planner can also send orders with missing parts to production and the planner receives information as soon as the missing material comes in. The warehouse worker picks the production order in the parts warehouse based on the FIFO strategy, and uses the pick list to pick the components managed in the temporary warehouse for each order. The consumable material is managed in service stock at the work center. At the beginning of production planning, the planned scrap quantity (component scrap, assembly scrap and operation scrap) is considered.

Customer

Manufacturer / Supplier

Business Benefits

Missing Part Management with Workflow Integration

Production Order Processing Release Order Picking components for semifinished and finished products - WM/PP material Staging Production Order Processing Confirmations with Barcode Integration (optional)

Handling Unit Management

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MTS-Production w. Batch Management, WM and HUM Business View

Business Benefits
Cost Object Controlling: Cost object controlling in discrete manufacturing is an area in cost accounting that assigns the costs incurred in the production of company activities (such as internally manufactured materials) to those activities. Product cost by order enables you to analyze costs at the level of manufacturing orders, process orders, and production orders. In product cost by order, the manufacturing orders themselves are the cost objects. Costs charged to manufacturing orders are usually analyzed and settled by lot. This means that variances can only be analyzed after the entire planned production quantity has been put into inventory. The settings in Production Planning & Control (PP, PP-PI) are required to cost manufacturing orders as part of production execution.

Customer

Manufacturer / Supplier

Business Benefits

Create Delivery for HU and Post Goods Issue (only DIMP)

Create Billing Document

Cost Object Controlling WIP Calculation, Variances, Order Settlement

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MTS-Production w. Batch Management, WM and HUM Component View

Customer Supplier/Manufacturer
SAP ERP
Planned Independent Requirement Processing (Catt) Purchase order Creation of sales order Material requirements planning Creation of production order for finished goods Purchase order processing Procurement with scheduling agreement Scrap ProcessIing Production of semi-finished goods Picking components with WM/PP interface and FIFO strategy FIFO with IM/WM picking Missing parts workflow FIFO with backflush FIFO with lean WM Order release and confirmation

Production order release and confirmation for finished goods production order Confirming production orders (optional: with barcode scanner) Creating handling units Delivery processing with handling unit Billing Cost object controlling

Bulk material processing

Normal process

Rework order process

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MTS-Production w. Batch Management, WM and HUM Product Structure

H84-1080
Packaging Material for H84-1000 VERP VB
SC

H84-1000

HU

Interface Card V24/2 HC 150 E Assembly scrap in Material Master HALB B PD

0002 - Production
SC SC M BH

H84 -1010
Hexagon Head Screw ROH VB Operation scrap in BOM item with net indicator

H84 -1020
IC LogicMAX884
IM

H84 -1030
Transformer ROH B PD Component scrap in Material Master

H84 -1040
Circuit Board PCB 2L 8B 7.6 HALB B RW PD

H84 -1050
Connector SUB-D2 ROH PD

H84 -1060
Resistor RES0805MS392 ROH VB Procurement with Scheduling Agreement

H84 -1070
Glue ROH VB

ROH VB

MP

BH

WM Warehouse Management: FIFO

SC Scrap Processing

H84 -1045
LM Lean Warehouse Management IM Inventory Management: FIFO WM B Batch Management HU Handling Unit Management

H84 -1047
Plastic Film ROH PD LM WM

H84 -1048
Supplies ROH PD WM

H84 -1046
Flex Connection ROH PD LM

Panel ROH PD

RW Rework BH Bulk Material Handling M Manufacturer Part Number MP Missing Parts Processing

0006

0006

0006

0005

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MTS-Production w. Batch Management, WM and HUM Materials Requirement Planning (MRP)

Demand Program Material Reqmts Planning Dependent Reqmts Reservations Planned Order Planned Ind. Requirements

Convert

Production Order

Warehouse

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MTS-Production w. Batch Management, WM and HUM MPN Processing

Manufact. H8401

MPN-Nr. H84-1031 Vendor / Distributor L8400 Material-Nr. H84-1030

Manufact. H8402
Assumptions:

MPN-Nr. H84-1032
Info-Record 5300000XX

 Electronical component has one material number and one price  Update of price in Purchase Order (PO)  Material delivered by one Distributor (e.g. exchangeable electronical component)  The AMPL (Approved Man. Part List) specifies, which components from which manufacturer can be reused  MPN Information can only be seen in PO (Print version) but not in PO document in PO only inventory managed material-number

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MTS-Production w. Batch Management, WM and HUM Production Order Processing

Order proposal (planned order)

Order settlement

Order header Production Order

Operations

Order creation

Goods Receipt

Components

Availability check

Serial Number Assignment

Costs

100

20 50

Material withdrawal

Finished / semifinished Goods

Order release and batch determination for components

Scrap Processing
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Rework Processing

MTS-Production w. Batch Management, WM and HUM Missing Part Management

 Conversion of planned order to production order  Manual execution of material availability check and control of the missing parts list  Goods receipt of missing parts into plant stock. This operation triggers the workflow event (optional)  The MRP planner is informed about the situation change by means of the workflow or a standard customized method by SPRO (optional)

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MTS-Production w. Batch Management, WM and HUM Missing Part Management

Production Order Missing Part Management Manually ATP Check Missing Part List H84-1050

Purchase Order

GR of Missing parts Workflow

Information for MRP controller

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MTS-Production w. Batch Management, WM and HUM Rework Process

Planned independent requirements/sales order

Rework Process

MRP Planned Orders/ Purchase Requisitions Convert Planned Order Production Order Rel. Operation confirmation
Need to Rework N

Select Reference Operation Set

Insert Reference Operations Set to PO

Confirmation Rework Operations

Goods Receipt

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MTS-Production w. Batch Management, WM and HUM Rework Process

Production Plant
Production Order

Operations

Release

20 30 10

Trigger Point

Rework Operations

Receiving storage location

Quality Check

10

20

User Status Control Reference Operation Set

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MTS-Production w. Batch Management, WM and HUM Bulk Material Processing

Planned independent requirements/sales order

Bulk Material

MRP Planned Orders/ Purchase Requisitions Convert Planned Order Production Order Rel. Operation confirmation Purchase Requisition for bulk material MRP run for bulk material Goods issue bulk material to cost center

Goods receipt
External procurement process

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MTS-Production w. Batch Management, WM and HUM Scrap Processing

Scrap definition in master data:
 Material master data (assembly scrap, component scrap)  BOM (operational scrap, component scrap, net indicator)  Routing (operational scrap factor)

Process Flow:
 Convert planned order to production order and view its scrap calculation, which impacts the quantity of input components and output assembly  Production order release and production start  Confirm production order at operation level and view the default confirmation parameter values with effect of scrap definition

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MTS-Production w. Batch Management, WM and HUM Scrap Processing

Planned independent requirements/sales order

Scrap definition in master data Material master BoM Routing

MRP Planned Orders/ Purchase Requisitions Convert Planned Order

View scrap info Production Order Rel. Operation confirmation Scrap processing in confirmation

Goods receipt

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MTS-Production w. Batch Management, WM and HUM Barcode Integration (optional)

Create production order with operations Release Production Order Deliver printed forms to related sites Process the operations External workflow

print production order And pick list w. barcode

Prer.: Production Order

Print Procedure in SAP system

Scan barcode in the printed order Complete operations Finishing operation confirmed in the system Complete operation process Process: finish scanning procedure

Scan barcode For GI and confirmation Beginning operation recorded in the system

Process: begin scanning procedure

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MTS-Production w. Batch Management, WM and HUM Barcode Integration (optional) Forms: Traveller (DE)

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MTS-Production w. Batch Management, WM and HUM Barcode Integration (optional) Forms: Traveller (EN)

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MTS-Production w. Batch Management, WM and HUM Batch Management

The following functions are provided to support Batch Management for components and finished goods:

Batch determination according to batch status Batch classification goods receipt for purchase order (raw materials)
 internal number assignment  characteristics for batch classification

Batch creation for finished goods by production order release Batch Management in WM
 Batch Management for picking according to batch search strategy (FIFO)

Batch Management with HUM

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MTS-Production w. Batch Management, WM and HUM WM/PP material staging in Production Supply Area
H84 -1040 Circuit Board PCB 2L 8B 7.6 HALB STORAGE LOCATION 0002 Pick list item(1) Crate part(2)
B

Rel. Order part(3)

WM STORAGE TYPE 001 HIGH RACK STORAGE

H84 -1045 Panel ROH PD

H84 -1047 XXX ROH PD

H84 -1048 XXX ROH PD

WM

WM LM

WM

WM STORAGE TYPE 003 OPEN STORAGE

Production Supply Area PROD_MTS for Work Center(s) WM STORAGE TYPE 002 SHELF STORAGE WM STORAGE TYPE 100 PRODUCTION SUPPLY STORAGE LOCATION 0006 WM F01 WM STORAGE TYPE .

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MTS-Production w. Batch Management, WM and HUM WM/PP Material Staging with Pick List Items (1)

Release of production order

Material master definition storage bin supply area control cycle

WM/PP-delivery (goods issue not relevant) Picking: transfer order for WM/PP- delivery Confirmation of transfer order

WM stock in storage

Confirmation of prod. order: backflush -> GI

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MTS-Production w. Batch Management, WM and HUM WM/PP Mat.Staging w. Crate Parts(2)/Release Order Parts(3)
Material master definition storage bin supply area control cycle

Replenishment after release of prod. orders

WM staging of crate parts/release order parts Transfer requirements + transfer orders Confirmation of transfer order WM stock in Storage Confirmation of prod. order: backflush -> GI

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MTS-Production w. Batch Management, WM and HUM MTS-Production with Handling Units (HU)
Definition of handling units: A handling unit is a physical unit that consists of the packaging materials (load carrier/ packaging material) and the goods contained therein. A handling unit is always a combination of materials and packaging materials. The MTS scenario uses handling units on finished good level. Two ways of packaging (= creating HU) are possible:
GR PRODUCTION MIGO (101) Packaging by the end of Production (1) Packaging before Delivery (2)

Inbound Delivery (FG / HU) Create HU

Goods on Storage Location w/o HU (0003)

Stock Transfer to FG Storage Location (0003 Outbound Delivery (0084 FG/HU) GI 0084 FG/HU)

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MTS-Production w. Batch Management, WM and HUM Handling Units - Packing by the end of Production (1)
Master data preparation for H84-1000 :
Material Master / View Pl./Stor.1: Storage conditions YH

Picking location determination for outbound delivery= Default St.Location0084

GR for Production Order with Transaction COWBPACK

Handling Unit xxx in Storage Location 0084 (FG H84-1000 + Pack.Mat.)

Sales Order

Outbound Delivery

Picking: Assigning Batch +HU to Delivery

Goods Issue for Delivery

Sales/Delivery Process flow for FG H84-1000

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MTS-Production w. Batch Management, WM and HUM Handling Units - Packing before Delivery (2)
Master data preparation for H84-1000 :
Material Master / View MRP2: Sloc MRP indicator 1 Material Master / View Pl./Stor.1: Storage conditions YH Material Master / View MRP3: Checking Group Avail. YH

Stock of storage location 0084 excluded from MRP

Picking location determination for outbound delivery= Default St.Location0084

Availabilty check is carried on plant level

Sales Order

Transaction Handling Outbound HUPAST: Unit xxx Delivery Creating HU + in Storage (Picking Tran. Posting Location 0084 Location 0084/ SLoc 0003 (FG H84-1000 Stock = 0) SLoc 0084 + Pack.Mat.)

Picking: Assigning Batch +HU to Delivery

Goods Issue for Delivery

Sales/Delivery Process flow for FG H84-1000

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MTS-Production w. Batch Management, WM and HUM Production Order - Preliminary Costing

Planned costs
Material components
 

Cost elements: elements:



Operations
 

Ind. "Rel. to costing" Price

Material costs Costs for external procurement

Gen. operation values Standard values Control key costing indicator

Order type / plant



Production costs


Resources Formula key for costing Cost center Activity type Formula constants Cost calculation log

Costing variant Material overhead costs

 

Display planned/actual costs Production overhead costs Cost elements Cost itemization Cost component split Costs for external processing

  

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MTS-Production w. Batch Management, WM and HUM Cost of Production Order

Material components - Quantities - Prices

Operation - Work center - Standard value - Quantities

Work center - Cost center - Activity types - Formulas

Cost center - Activity types

Activity cost - Periods

Material costs

Internal activities costs Overhead calculations Production order cost

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MTS-Production w. Batch Management, WM and HUM WIP and Variance Calculation in Lot-Based Cost Object CO

Actual Costs

Actual Costs

Actual Costs

Delivery Value

Delivery Value

=
WIP at Actual Costs

=
WIP at Actual Costs

=
Variances

Order Status
Pre-Released or Released
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Partially Delivered

Finally Delivered or Technically Completed

MTS-Production w. Batch Management, WM and HUM Settlement of Production Order

Product cost planning Lotsize 1 PC
Material

Production Order Mat. C10150

COCOPC

COPC

Actual Cost 800 1.200 400 2.400 -2.000 400

FI

600
Production

Surcharge

300

1100

Material Production Surcharge GR Variances

Target Version 0
Price Qty Structure Scrap Lotsize 150 150 100 0 0

Material Master Standard Price = 2000

Settlement

Financial Accounting Warehouse Price difference

COPA

2000

400

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