H84 Scen Overview en De

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

Scenario Overview

SAP AG 2006

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

MTS-Production w. Batch Management, WM and HUMOverview I

SAP AG 2006

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

MTS-Production w. Batch Management, WM and HUMOverview II

SAP AG 2006

Business Benefits Customer Manufacturer / Supplier Business Benefits

Material Requirements Planning (MRP): The daily MRP run generates replenishment elements at each low-level 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

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.

MRP at plant level

Production Order Processing -

Create Production Order

Scrap treatment and analysis

Sales Order Processing with Availability Check

Purchasing -

Create Purchase Orders

Customer Order is transferred via eMail / Fax

MTS-Production w. Batch Management, WM and HUMBusiness View

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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

Purchasing-

Maintain delivery schedule for scheduling agreement

Post goods receipt

WM, Lean WM, MPN

Analysis and treatment for bulk materials


SAP AG 2006


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.

Missing Part Management with Workflow Integration


Release Order

Picking components for semifinished and finished

products - WM/PP material Staging


Confirmations with Barcode Integration (optional)

Handling Unit Management


SAP AG 2006


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.

Create Delivery for HU and Post Goods Issue

(only DIMP)

Create Billing Document

Cost Object ControllingWIP Calculation, Variances,

Order Settlement


SAP AG 2006

Supplier/ManufacturerCustomer

SAP ERP

Purchase order

Creation of production order for finished goods

Production of semi-finished goods

Planned Independent Requirement Processing (Catt)

Material requirements planning

Order release and confirmation

Rework order process

Creation of sales order

Billing

Cost object controlling

Delivery processing with handling unit

Scrap

Pro

cessIing

Pro

curem

ent w

ithsch

edu

ling

agreem

ent

Picking components with WM/PP interface and FIFO strategy

Normalprocess

Missin

g p

arts wo

rkflow

FIF

O w

ith IM

/WM

pickin

g

Confirming production orders (optional: with barcode scanner)

Creating handling units

Bu

lk material

pro

cessing

Purchaseorder processing

FIF

O w

ith b

ackflush

FIF

O w

ith lean

WM

Production order release and confirmation for finished goods production order

MTS-Production w. Batch Management, WM and HUMComponent View

SAP AG 2006

H84-1000Interface Card

V24/2 HC 150 E

HALB

PD

H84 -1010Hexagon Head

Screw

ROH

VB

H84 -1020IC

LogicMAX884

ROHVB

H84 -1030Transformer

ROH

PD

H84 -1040Circuit Board

PCB 2L 8B 7.6

HALB

PD

H84 -1050Connector

SUB-D2

ROH

PD

H84 -1060Resistor

RES0805MS392

ROH

VB

H84 -1046Flex Connection

ROH

PD

H84 -1045Panel

ROH

PD

HUSC

BIM B

M

BH

B LMWM

B MP

Operation scrap in BOM item with net

indicator

SC

Assembly scrap in Material Master

Component scrap in Material Master

SC

B

Procurement with Scheduling Agreement

RW

SC

IM

M

RW

MP

WM

LM

BH

B

Lean Warehouse Management

Missing Parts Processing

Bulk Material Handling

Batch Management Manufacturer Part Number

Rework

Scrap ProcessingWarehouse Management: FIFO

B

H84 -1070Glue

ROH

VB

H84-1080Packaging Material

for H84-1000 VERP

VB

BH

0002 - Production

H84 -1047Plastic Film

ROH

PD

H84 -1048Supplies

ROH

PDWMWM

0006 0006 00050006

LM

HU Handling Unit Management

Inventory Management: FIFO

MTS-Production w. Batch Management, WM and HUMProduct Structure

SAP AG 2006

Convert

Planned Order

Dependent Reqmts

Reservations

Warehouse

Material ReqmtsPlanning

Demand

ProgramPlanned Ind. Requirements

ProductionOrder

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

SAP AG 2006

Manufact.H8401

Manufact.H8402

MPN-Nr.H84-1031

MPN-Nr.H84-1032

Material-Nr.H84-1030

Vendor / Distributor

L8400

Info-Record5300000XX

Info-Record5300000XX

Assumptions: 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

Assumptions: 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

MTS-Production w. Batch Management, WM and HUMMPN Processing

SAP AG 2006

Order proposal (planned order)

Order creation

Availability check

Order settlement

Goods Receipt

Order headerOrder header

OperationsOperations

ComponentsComponents

CostsCosts 2050

100

Material withdrawal

Serial Number Assignment

Production Order

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

Scrap Processing Rework Processing

Order release and batch determination

for components Finished / semifinishedGoods

SAP AG 2006

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)

MTS-Production w. Batch Management, WM and HUMMissing Part Management

SAP AG 2006

Manually ATP Check

GR of Missing parts

Missing Part ListH84-1050

Workflow

Information for MRP controller

Production Order

Purchase Order

MTS-Production w. Batch Management, WM and HUMMissing Part Management

Missing Part Management

Missing Part Management

SAP AG 2006

MRPMRP

Convert Planned Order Convert Planned Order

Operation confirmationOperation confirmation

Goods ReceiptGoods Receipt

Production Order Rel.Production Order Rel.

Need to Rework

N

Y

Select Reference Operation Set

Select Reference Operation Set

Insert Reference Operations Set to POInsert Reference

Operations Set to PO

Confirmation Rework Operations

Confirmation Rework Operations

MTS-Production w. Batch Management, WM and HUMRework Process

Planned independent requirements/sales orderPlanned independent

requirements/sales order

Planned Orders/ Purchase Requisitions


Rework ProcessRework Process

SAP AG 2006

Production Plant Production Plant

10

Receivingstorage location

Production Order

Release

30

Quality Check

User Status Control

Trigger Point

Reference Operation Set

10


10 20

Rework Operations

20

Quality Check

Trigger Point

MTS-Production w. Batch Management, WM and HUMRework Process

SAP AG 2006

Goods receiptGoods receipt

Purchase Requisition for bulk material

Purchase Requisition for bulk material

External procurement

process

MRP run for bulk material

MRP run for bulk material

Goods issue bulk material to cost center

Goods issue bulk material to cost center

Bulk MaterialBulk Material

MRPMRP








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

SAP AG 2006

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

MTS-Production w. Batch Management, WM and HUMScrap Processing

SAP AG 2006

Scrap definition in master data

Scrap definition in master data

View scrap infoView scrap info

Scrap processing in confirmation

Scrap processing in confirmation



MRPMRP






Goods receiptGoods receipt

• Material master• BoM• Routing

MTS-Production w. Batch Management, WM and HUMScrap Processing

SAP AG 2006

Prer.: Production Order

Processthe operations

Deliver printed forms to related sites

Release Production Order

Create production order with operations print production order

And pick list w. barcode

Scan barcode in the printed order

Finishing operation confirmed in the system

Print Procedure in SAP system

External workflow

Process: beginscanning procedure

Complete operations

Scan barcode For GI and confirmation

Beginning operation recorded in the system

Process: finishscanning procedure

Completeoperation process

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

SAP AG 2006

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

SAP AG 2006

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

SAP AG 2006

•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

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

SAP AG 2006

MTS-Production w. Batch Management, WM and HUMWM/PP material staging in Production Supply Area

H84 -1040

Circuit Board

PCB 2L 8B 7.6

HALB

STORAGE LOCATION 0002

H84 -1045Panel

ROH

PD B LMWM

B

H84 -1047XXX

ROH

PD

H84 -1048XXX

ROH

PDWMWM

Production Supply Area PROD_MTS

for Work Center(s)

STORAGE LOCATION 0006 – WM F01

WM STORAGE TYPE 100 – PRODUCTION SUPPLY

WM STORAGE

TYPE 001

HIGH RACK STORAGE

WM STORAGE

TYPE 002

SHELF STORAGE

WM STORAGE

TYPE 003

OPEN STORAGE

WM STORAGE

TYPE …

….

Pick list item(1) Crate part(2) Rel. Order part(3)

SAP AG 2006

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

Material master definition


WM stock in storage

WM stock in storage

Confirmation oftransfer order


Picking: transfer order for WM/PP- delivery

Picking: transfer order for WM/PP- delivery

Release of production order

Release of production order

Confirmation of prod. order: backflush -> GI


• storage bin• supply area• control cycle

WM/PP-delivery (goods issue not relevant)

WM/PP-delivery (goods issue not relevant)

SAP AG 2006

MTS-Production w. Batch Management, WM and HUMWM/PP Mat.Staging w. Crate Parts(2)/Release Order Parts(3)



WM staging of crate parts/release order parts

WM staging of crate parts/release order parts



Replenishment after release of prod. ordersReplenishment after

release of prod. orders

WM stock in Storage

WM stock in Storage



• storage bin• supply area• control cycle

Transfer requirements + transfer orders

Transfer requirements + transfer orders

SAP AG 2006

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:

MTS-Production w. Batch Management, WM and HUMMTS-Production with Handling Units (HU)

GR PRODUCTION

MIGO (101)

Inbound Delivery

(FG / HU)

Goods on Storage Location

w/o HU (0003)

Packaging by the end of Production (1) Packaging before Delivery (2)

CreateHU

Outbound Delivery

(0084 FG/HU)

GI

Stock Transfer to FG Storage Location

(0003 0084 FG/HU)

SAP AG 2006

MTS-Production w. Batch Management, WM and HUMHandling Units - Packing by the end of Production (1)

Sales Order OutboundDelivery

Picking:Assigning

Batch +HU to

Delivery

HandlingUnit xxx

in Storage Location 0084

(FG H84-1000+ Pack.Mat.)

GoodsIssue

forDelivery

Sales/Delivery Process flow for FG H84-1000

GR for Production Order with

Transaction COWBPACK

Master data preparation for H84-1000 :

Material Master / View ‘Pl./Stor.1’:

Storage conditions ‘YH’



Picking location determination for outbound delivery=

Default St.Location‘0084’



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MTS-Production w. Batch Management, WM and HUMHandling Units - Packing before Delivery (2)

Master data preparation for H84-1000 :

Material Master / View ‘MRP2’:Sloc MRP indicator ‘1’

Material Master / View ‘MRP2’:Sloc MRP indicator ‘1’

Stock of storage location 0084 excluded from MRP

Stock of storage location 0084 excluded from MRP









Material Master / View ‘MRP3’:Checking Group Avail. ‘YH’

Material Master / View ‘MRP3’:Checking Group Avail. ‘YH’

Availabilty check is carried on plant level

Availabilty check is carried on plant level

Sales Order

OutboundDelivery(Picking

Location 0084/ Stock = 0)

Picking:Assigning

Batch +HU to

Delivery

HandlingUnit xxx

in Storage Location 0084

(FG H84-1000+ Pack.Mat.)

GoodsIssue

forDelivery

Sales/Delivery Process flow for FG H84-1000

TransactionHUPAST:

Creating HU + Tran. Posting

SLoc 0003 SLoc 0084

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Costing variant

Display planned/actual costs

Cost elementsCost itemizationCost component split

Planned costsPlanned costs

Material costs

Costs for externalprocurement

Production costs

Material overheadcosts

Production overheadcosts

Costs for externalprocessing

Cost elementsCost elements::Gen. operation values

Standard valuesControl key “costing

indicator”

ResourcesResources

Formula key forcosting

Cost center

Activity type

Formula constants

Cost calculationlog

Ind. "Rel. to costing"

Price

MaterialMaterial components components

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


Order type / plantOrder type / plant

SAP AG 2006

Production order cost Production order cost

Overhead calculationsOverhead calculations

- Work center- Standard value- Quantities

- Cost center- Activity types- Formulas

- Activity types

Operation

Internal activities costsMaterial costs

- Quantities- Prices

Work center Cost centerMaterialcomponents

- Periods

Activity cost

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

SAP AG 2006

Order Status

Pre-Released or Released Partially Delivered Finally Delivered or Technically Completed

Variances

DeliveryValue

Actual Costs

WIP atActual Costs

=WIP at

Actual Costs

=

-Delivery

Value

=

-

PREL

REL PDLV DLV

TECO

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

Actual Costs Actual Costs

SAP AG 2006

Material600

Product cost planningLotsize 1 PC

CO-CO-PCPC

Production Order Mat. C10150

8001.200

4002.400

-2.000

400

MaterialProductionSurcharge

GR

Variances

Actual Cost

CO-PC

Material MasterStandard Price = 2000

Target Version 0

Price 150 Qty 150 Structure 100 Scrap 0 Lotsize 0

Production1100

Surcharge300

Warehouse Price difference

Financial Accounting

2000 400

SettlementFI

CO-PA

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

H84 Scen Overview en De

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