6_SAP_PP Level I Training

Honda-Goa, 06th May 2009 1

Honda-Goa, 06th May 2009 2

SAP PP MODULE

Presented By : Srinivas U.B

Honda-Goa, 06th May 2009

LEVEL 1 TRAINING AGENDA

SAP Overview (Structure and Modules)

SAP Implementation Methodology

PP Module overview

LEVEL 1 TRAINING

Systems Application and Products In Data Processing

Before SAP Implementation

Manufacturing

HumanResources

FinanceControlling

Purchasing

Reconciliation

Reconciliatio

Reconciliation

After SAP Implementation

Finance

Materials Management

Controlling

Sales &Distribution

HumanResources

Production Planning

SAPSAP

SAPserver

During Project Preparation, project guidelines and teams are established, project scope and strategies are refined. Our project team will be briefed and mobilized with a kick-off meeting

During Realization, business and process requirements based on the Business Blueprint are configured and implemented. The SAP R/3 system in this phase would have gone through thorough unit and integration testing and is ready for the Final Preparation

During Final Preparation, final acceptance sign-off would have been gained from stakeholders and cutover readiness and cutover readiness check is completed. The SAP R/3 system and the organization is ready for ‘Go-Live’

During Business Blueprint, the as-is and to-be business requirements are documented as the baseline of how the key business processes will be configured and run within the SAP R/3 system

During Go-Live & Support, the SAP R/3 system is ‘live’. The project team along with DC consultants will support the end users to ensure familiarity to operate the new system as per the business processes

The project implementation stages will be described as followed

During Parallel Test, the user will enter transactions in legacy and SAP systems. At the end of the month, the results will be compared to check the SAP system design accuracy.

Parallel Test Run

PP Master Data :

Material Master

Bill of Material

Work Center

Routing

Sales and Operations Planning

Demand Management

Long Term Planning

Planned order

Production Order

Back flushing

Production Order Confirmation &

Settlement

SAP R/3 PP Module overview

Org. Structure

SAP R/3 Integration

Organizational Structure

SAP AG 1999

ClientClient 400 400

CompanyCompany codecode00010001

CompanyCompany codecode00020002

Plant 1000Plant 1000 Plant 1100Plant 1100 Plant 2000Plant 2000

SLocSLoc00030003

SLocSLoc00020002

Lagerort002

SLocSLoc00010001

SLocSLoc00020002

SLocSLoc00010001

Organizational Levels in Inventory Management

Organizational LevelsClient

Company Code 1 Company Code 2

Plant 1 Plant 2

SLOC 2SLOC 1

Controlling Area

P Org 1SALES ORG

DISTR. CHANNEL

DIVISION

SALES AREA

SLOC 2SLOC 1

Sales &Distribution

ProductionPlanning

MaterialsManagement

Finance &Controlling

CustomerSales Order

Shipment

Receivable Accounts / Cash Receipt

Credit Limit

Material Availability CheckTransfer of Requirements

Goods Issue to SO

Goods Receipt

Invoice Receipt

Purchase Order

Accounts Payable

Invoice

Accounting DocumentProduction Cost

Material Requirements

Material Procurement

Sales Order / Forecast / Plan

Vendor

Process Flow Integration

Master Data

PP Master Data

Each user function has its own view of the material master which permits easy access and maintenance of data.

MRPMRP

StorageStorage

Stocks in plant/Stocks in plant/ storage locationstorage location

CostingCosting

AccountingAccounting

Basic DataBasic Data The material master is a The material master is a central data object for all central data object for all material types:material types:• raw materialsraw materials

• semi-finished productssemi-finished products

• finished productsfinished products

• P.R.T.P.R.T.

PurchasingPurchasing

SalesSales

WorkWorkschedulingscheduling

QualityQualitymanagementmanagement

ClassificationClassification

ForecastingForecasting

Views of the Material Master

Basic Data view

MRP View

Why is this view used?Why is this view used? To record data related to To record data related to

production such as:production such as: Units of issueUnits of issue Issue Storage LocationIssue Storage Location In-house production In-house production

timetime

Which departments use this view?Which departments use this view? EngineeringEngineering Shop Floor ProductionShop Floor Production Materials ManagementMaterials Management

EngineeringEngineeringShopShop FloorFloorProductionProduction

MaterialsMaterialsManagementManagement

Work Scheduling View

View is used to record following View is used to record following datadata

Shelf life dataShelf life data Stock DeterminationStock Determination Profit CenterProfit Center

Which departments use this view?Which departments use this view? Shop Floor Shop Floor Materials ManagementMaterials Management

Shop Floor Shop Floor ProductionProduction

MaterialsMaterialsManagementManagement

Plant Data / Storage Views

Bill of Material

A bill of material is a complete, formally structured list of the components of a product or assembly.

A bill of material contains the description and object number of each component, the quantity

and unit of measure.

BOMBOM

Multi Level - Bill of Material

Combining single-level BOMs creates a complete multi-level

structure.

MachineMachine

Fly wheelFly wheel ChainChainFrameFrame ShaftShaft

Assembly 1Assembly 1 Assembly 2Assembly 2

MotorMotor GearGear ExhaustExhaust

Bill of Material Usage

Sales Data

Production Data

Engineering Data

Costing Data

Different types of BOM usage; Engineering Production Costing Sales

BOM Item Status• Released• Blocked

Bill of Material Structure

• BOM header maintained with structure of assembly components & sub assembly items with respective

base quantity and unit of measure.

• BOM status governs, whether the BOM is active or inactive.

Work Center

Work center

Definition

Examples Type of work centerType of work center Example Example Individual work centerIndividual work center Automatic lathe 17

Work center groupWork center group Machine shop

Assembly lineAssembly line Line 9

Individual personIndividual person John Doe

Group of peopleGroup of people Group 12

Usage Work centers are used in routings. They can also be usedWork centers are used in routings. They can also be usedas capacity collectors for statistical evaluations.as capacity collectors for statistical evaluations.

A work center is an organizational unit whereA work center is an organizational unit wherea work step (operation) is performed.a work step (operation) is performed.

Basic dataGeneral dataGeneral data Name and descriptionStandard value key

Default valuesStandard valuesStandard valuesfor routingfor routing

Control keyStandard text key

CapacityCapacity dataCapacity data Available capacityFormula key

SchedulingScheduling dataScheduling data Scheduling basisQueue and move timesFormula key

AssignmentCosting dataCosting dataandand

HR dataHR dataCost centerActivity types

Work center Data

Routing

Routings

A routing contains the operations to be performed, their sequence and the various work centers involved to manufacture an item.ROUTING STRUCTURE

GroupGroupCounter 01Counter 01

Routing Group

Each individual routing is referred to as a group counter within the group

Routings

Routings contain:

Manufacturing In-house components & finished goods. The work centres where the operations are to be performed

Material allocation The manufacturing material is allocated to the group counter. Component are allocated to operations and standard values for

• Setup time, • Processing time• Tear-down time

Routings

Demand Management

Sales Plan Prodn Plan Forecast Plan

Demand Management“Demand Program”

Manual Planned Independent

Requirements

Sales Demand fromSales Orders

MRP/MPS

Demand mgmt will have product, qty & Rqd. Date

Demand Management Process

Demand Management Customer or sales requirements ( Export or Domestic).

Planned independent requirements.Planning strategies

Methods of production for planning & manufacturing or procuring a product.

Different planning strategies used are; Make to stock Make to order Planning with final assembly

Honda-Goa , 06th May 2009 35

MRP Overview

SAP AG 1999

Complete MRP Overview

Plannedorder

Dep. reqmts

Reservations

PurchaserequisitionsProduction

Purchaseorder

Schedule lines

MRPMRP

Only formaterials procured

externally

Only formaterials procured

externally

Convert

Warehouse

Sales ordersPlanned ind reqmts

Stores StockStores Stock

Honda-Goa , 06th May 2009 36

MRP- Stock Requirement List

Production Control

Production Methods

Discrete manufacturing: Frequently changing products

MFG restricted production lots

Varying sequence of work centers over which a product can run

Repetitive Manufacturing: Same product is produced over a longer period of time in one

production line

Total quantity of the product is manufactured over a specific period of

time with a specific production rate per partial period

Production Methods

Production Orders

8 - Issue Materials to

1 - Select BOM

2 - Select Routing

3 – Schedule Dates(Fwd / Backward)

5 - CalculateCapacity

GoodsIssue

6 - CalculatePlanned Costs

ReleaseOrder

4 - Check Availability

7 - Print Shop Floor Papers

CreateOrder

ConfirmCompletion

9 - Receive complete goods into stock

GoodsReceipt

10 - CalculateActual Costs

ActualLabor

Confirmation Slip

Production Order Overview

Cost Release

Production Order Settlement

A Production Order collects all costs associated with making an inventorial item and the order “picks up” the cost from Material master. Production cost analysis carried out after Final Confirmation & Order Settlement.

Billof

Material

Routing

Production Order STATUS:Created, Released,

Confirmed, Delivered,Settled

Order: 73 Type: PP01Plant: LR001Sys Status:CRT REL CNF DLV SETC

Quantities: Total Produced: 100 Tons Scrap: .001 Confirmed: 100 TonsDates: Schedule 09/15/95 Confirmed 09/16/95

Backflushing

GR/GI will happen simultaneously at the time of Posting.

Backflushing Process

Hinjawadi , 06th May 2009 45

THANK YOU

6_SAP_PP Level I Training

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