Post on 12-Jan-2016
SAP ERP Manufacturing Solutions
ManufacturingScope items
Manufacturing Logistics Planning
Includes the transfer of aggregated planning data based on sales quantity planning to Long Term Planning. After simulation runs the demand may then transferred to active demand management
Make-to-Stock Production: Discrete Industry Supports the manufacturing processes of goods stored in inventory prior to receipt of
an order. Orders are usually filled from existing stock, and inventory is replenished based on production orders.
Make-to-Stock Production: Process Industry Provides an integrated platform for batch-oriented process manufacturing. This
supports processes in the following manufacturing industries: chemical, pharmaceutical, food and beverage industries as well as the batch-oriented electronics industry.
Make-to-Order Production with Variant Configuration Manufacturing environment where the final product is usually a combination of
standard items and items custom-designed for this customer.
Make-to-Order Production without Variant Configuration Manufacturing environment where you produce a product for a order: includes
quotation, manufacture, shipping, invoice, and payment. Options: serial number creation, subcontracting, QM, and more.
Manufacturing (Cont.)
Repetitive Manufacturing Is distinguished by the production of discrete units, usually at very high speeds
and quantities in which materials tend to move in a continuous flow during production.
Production Subcontracting (External Processing) Outlines the steps required for processing of individual production steps during
manufacturing outside of your company by a vendor (subcontractor).
Rework Processing (Stock-Manufactured Material) Focuses on the rework manufacturing steps including: production execution,
creating a new production order, reusing the rework material, collecting and allocating the associated costs and variances.
Quarterly Plan: Sales Quantity Forecast with CO-PA The sales forecast is reviewed and updated on a quarterly basis.
Rework Processing (Work-in-Process) Addresses the work performed to correct defects in a product after it has been
manufactured. The cost of rework is interpreted as a variance.
ManufacturingLogistics Planning
PurposeIncludes the transfer of aggregated planning data based on sales quantity planning to Long Term Planning. After simulation runs the demand may then transferred to active demand management.
Key process flows coveredExecute Sales and Operations Planning Execute Long-Term Planning
Business benefits Provides seamless integration in complete planning
cycle from CO-PA via Sales and Operations Planning and Long-Term Planning to Demand Planning
ManufacturingMake-to-Stock Production: Discrete Industry
PurposeSupports the manufacturing processes of goods stored in inventory prior to receipt of an order. Orders are usually filled from existing stock, and inventory is replenished based on production orders.
Key process flows coveredCreate planned independent requirementsPlan material requirements at plant levelExecute in-house production (subassembly)Execute in-house final assembly (finished goods)Level capacities Confirm assembly activities
Business benefits Triggers production by a production plan Includes serial number and batch management Provides integration options with: quality management,
consigned inventory, and external processing
ManufacturingMake-to-Stock Production: Process Industry
PurposeBatch–oriented process manufacturing commonly used in the following industries: chemical, pharmaceutical, food and beverage industries and the batch–oriented electronics industry.
Key process flows covered Create planned independent requirements Execute Material Requirements Planning (MRP) Execute Make-to-Stock (MTS) production for semi-
finished and finished products
Business benefits Enables recipe-oriented production Handles materials in batches according to a recipe
specified for the appropriate production quantity Offers cost object controlling
ManufacturingMake-to-Order Production without Variant Configuration
PurposeManufacturing environment where you produce a product for a order: includes quotation, manufacture, shipping, invoice, and payment. Options: serial number creation, subcontracting, QM, and more.
Key process flows covered Create quotation headers Create follow on quotations with reference to first
quotation Change quotations based on customer requests Create sales orders with reference to accepted
follow on quotations Check customer credit limits Send order confirmations to customers and start
production processes Execute milestone billing – post down payments
after order confirmations Manage technical changes based on customer
requests Recalculate sales orders and bills of material Execute deliveries and billing of finished goods
Business benefitsProvides quotation historyOffers billing plans including down paymentsEnables change management in production
ManufacturingRepetitive Manufacturing
PurposeRepetitive manufacturing is distinguished by the production of discrete units, usually at very high speeds and quantities in which materials tend to move in a continuous flow during production.
Key process flows coveredCreate planned independent requirementsPlan material requirements at plant levelExecute in-house productionConfirm assembly activities
Business benefitsSimplifies handling of the production processProvides full cost control
ManufacturingProduction Subcontracting (External Processing)
PurposeOutlines the steps required for processing of individual production steps during manufacturing outside of your company by a vendor (subcontractor).
Key process flows covered Create purchase orders for external processing Post goods receipts for “subcontracting” purchase
orders Post invoices Execute periodic payments
Business benefits Specifies that a certain operation of the production
order is executed by an external subcontractor on a regular basis via outline agreements
Offers assignment of the assembly procedure of the finished product to a subcontractor in case of capacity bottlenecks
ManufacturingRework Processing (Stock-Manufactured Material)
PurposeFocuses on the rework manufacturing steps including: production execution, creating a new production order, reusing the rework material, collecting and allocating the associated costs and variances.
Key process flows coveredCreate rework production ordersPost goods issues for defective materialsConfirm rework production activitiesPost goods receipts for rework production orders
Business benefits Provides transparency on costs for rework activities Offers usage of all standard shop-floor control
functionalities
ManufacturingQuarterly Plan: Sales Quantity Forecast with CO-PA
PurposeThe sales forecast is reviewed and updated on a quarterly basis.
Key process flows covered Execute sales quantity planning on basis of actual
data Execute transfer to Sales and Operations Planning
Business benefitsProvides integration to Sales and ProductionOffers data planning in spreadsheet
ManufacturingRework Processing (Work-in-Process)
PurposeAddresses the work performed to correct defects in a product after it has been manufactured. The cost of rework is interpreted as a variance.
Key process flows coveredConfirm production activitiesConfirm scrap defective materialConfirm parent order at rework operationContinue shop-floor activities
Business benefits Automatically triggers rework process based on scraps
at defined operation Lets you confirm additional activity and material
consumption after rework Is fully integrated into the production process