Kandil PPQM E2E Integration V4 0

8/11/2019 Kandil PPQM E2E Integration V4 0

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Business Blueprint – PPQM Workshop

E2E PPQM Integration

© EDRAKY CONSULTING 2014



Objective

Production Planning and Quality Management E2E Integration



Hal: 4

End to End Order to Cash

Sales

Planning(CIR)

Daily

Planning

Sales

Inquiry

MRP

Warehous

e Transfer

SLOC

Preventive

Maintenance

Plan

AccountReceivabl

e

Bankdetermin

ation

payment

SD PPQM MM FI

Sales

Quotation

Sales

Order

Weekly

Planning

Production

ExecutionQuality

Inspection

Material

Transfer from

Warehouse

to SLOC

Delivery

PlanningDelivery

Inspection

Goods

IssueBilling

PM CO

Cost

Estimate

Transfer order

(picking)Transportation

Custo

mer

cleara

nce

variance &

settlement

Credit

Management

Stock

Transfer

(905/904)

WM

Stock

Transfer

(905/904)



Hal: 5

End to End Order to Cash (Internal Subcontracting)

SalesPlanning

(CIR)

Daily

Planning

Sales

Inquiry

MRP

Warehouse

Transfer

SLOC and

BIN

Account

ReceivableIncomingpayment

Cash /Bank

SD PPQM MM FI

Sales

Quotation

Sales

Order

Credit

Management

Weekly

Planning

Production

Execution

Quality

Inspection

Warehouse

Transfer RM

to SLOC

Delivery

Planning

Delivery

Inspection

Delivery

ExecutionBilling

PM CO

Receive

Material From

Customer

WM

Stock

Transfer

(905/904)

Good

Receipt

(901)



PROCESS END-TO-END

Class

Bill Of MaterialWork

Center

InspectionMethod

MasterInspection

Characteristic

Characteristic TableObject Dependency

Routing

SamplingProcedure

SamplingScheme

Inspection Plan

Characteristic

Material Master

Catalog

MASTER DATA



PROCESS END-TO-END

Long Term Planning

Quarterly Planning

Weekly Planning

Daily Planning

Monthly Planning



PROCESS END-TO-END

Goods Issue Production Order & Consumable

In-Process Inspection

Goods Receipt

Goods Receipt Inspection

Confirmation



PROCESS END-TO-END

Reinspection CompletionProduction Order

Trial ProductionQuality InGrinding

QualityCalibration

SUPPORTING

Return / Claimmanagement



Production Planning


http://slidepdf.com/reader/full/kandil-ppqm-e2e-integration-v4-0 11/56Hal: 11

PPQM Business process

1. Long Term Planning

2. Quarterly Planning

3. Monthly Planning

4. Weekly Planning

5. Daily Planning



Long Term Planning

E

v e n t

M R P C o n t r o l l e r

Start – Initiate Sales

Forecast

W a r e h o u s

e

S a l e s P e r s o n

EvaluationPurchaseInvormati

on

CreatePlanningScenario

Start – Define

ComodityCapacity

CreateSales

Forecast

Run LTP Evaluate

LTP

ExportingTo

Purchasin

g

ExportingTo Cost

Accountin

g

ExportingTo

InventoryManageme

nt

P u r c h a s i n

g C o s t

A c c o u n t i n

gEvaluation

CostAccountin

g

EvaluationInventoryManageme

nt

PredefinedCapacity

Monthly

Planning

(M+3)

EvaluationCapacityPlanning



Quarterly Planning (M+3)

Quarterly Planning :

- The Process is to Net off the requirement from sales order forecast on monthly

based with the proposal for procure the raw material.

- The Business process is start with the changing of sales forecast until creation

PR and the production planning monitoring raw Material.

- Note: the vendor evaluation(supplier list for each items), the changing of

material and the changing of Plan arrival date will be in purchase order

business process will be part of the integration which is delivered by MM

Module.



Quarterly Planning

E

v e n t



Forecast

P u r c h a s i n g


EvaluationRough

CapacityPlanning

Start – Define

ComodityCapacity

ChangedSales

Forecast(M+2)

Run MRP

CheckPurchase

List

EvaluationProductionPlanningfor RM

monitoring

PredefinedCapacity ifNecessary

MRPEvaluation

Purchasing

Process

PR Creation

Internal

Meetingfor full fill

capacity

Required

new so

Required

Meeting

Yes

NO



Monthly Planning

Monthly Planning :

- The Process is preparation for the Planning execution / Shop floor control

(MPS). The process will be collecting the order which is it will be produce within

next weeks. And then continue with matching the Raw material and free stock

and mapped to the sales order. Certain rules will be defined for the matching

raw materials (order closer, production exist, cover critical product, suitability

material for each product, follow forecast, and full fill capacity

(local/export/rejection).



Weekly Planning

E

v e n t

M R P C o n

t r o l l e r


Order


CreateSalesOrder

Run MRP

ReportOrder Vs

Stock

allocation

Daily

Planning

Pland Ordercreation

N

Check The

Matching

Rules



Daily Planning

E

v e n t Start –

WeeklyPlanning

S h o p F l o o r C o n t r o l

Createproduction

Order

Production

Execution

Infored to

production

CheckingDetail Plan

CheckingStock

situation

Stockallocation

Ordersorting orsequencin

g

Start – Rework

Start – InsternalSubcont

Start – TrialProduction



Trial Production

E

v e n t Start – Initial

TrialProduction

P r o d

u c t D e v e l o p m e n t

CreateNotification

Daily

Planning

Decided

Trial result

ReleaseNotification

Create CIRTrial

Production

CompleteNotificatio

n

Completeactivity

Notification

Preparatio

n Trial

production

Approved

Trial

Production

Production

Execution

Quality

Managemen

t

Stop

S h o p F l o o r

C o n t r o l

P r o d u c t i o n

Q u a l i t y

MRP RunCheck

Notification



Production Order Completion

E v e n t

C o n t r o l l i n

g

Production order

completion

Result RecordingQuality Inspection

Order

Complete

?

Yes

No

Stock Allocation to

Finish free or other

order

No

YesEvaluation order

info system . Order

progress

M R P C

o n t r o l l e r

Excess

Stock

exist ?

Stop

Order

Settlement



Production execution



|22

Production Order Cycle

Sales Order

MRP

Production

OrderOrder Release /

Inspection Lot

Goods IssueInsprocess

Inspection

Confirmation

Goods Receipt

GR Inspection

TECO

Cost Settlement

Archive / Delete

1. Goods Issue : to Note intothe system the

consumption of raw

material and semi finish

2. Inproses Inspection : note

the result of Inprocess

Inspection3. Confirmation : to note the

production activity in to the

system. Eg : Processing

time, gas, electric, dll.

4. Goods Receipt : : to Note

into the system the goods

receipt of SF, FG dan scrap

5. GR Inspection : note in to

the system the result of

Inspection Product related

and do Usage decision.

Production Execution



Hal: 23

Bill Of Material (alt 1)

GCCF

FBC

FC

HPC FCT AC ABHRC

CCM CCT

Note : The selection component will using Variant configuration.



Hal: 24

Bill Of Material (Alt 2)

CCF

PD

FC

FCC FCT

AC

AB

HB

CCMCCTNote : The selectioncomponent and alsoQuantity will usingVariant configuration.

CC

Level 1.

Level 2.

Level 3.

Level 4.

Level 5.

Level 6.

Level 7.



Hal: 25

Routing (3)

CPL BAF

CAL TPM

SHR/SLT/RECMPL

TCM ECL

0010 0020 0030

0040

0050

0060

0070/0080/00900100

Proposed Routing for CRM :



Integration of Production & Inventory Control in SAP

Journal:

material

consumption

Journal:

overhead &

quality

Order

Receive

Sales

Order

Production

Order

Material

Consumption

(Goods

Issue)

Activity

Confirmation

(Overhead

usage)

Finished

Goods

Receipt +

QC

inspection

Order

settlement

Delivery +

QC

inspection

Billing Collection

BOM &

Routing

Firmed

BOM &

Routing

Qty & value

issued

Qty & value

confirmed

Qty & value

received

Standard

Cost

Estimate

Target Cost

determi-

nation

Consumption

recording

Activity value

record

Goods

Receipt

value record

Variance

settlement

Product’s

actual cost

Profitability

Accounting

Sales COGS

Discount

Costing Processes Profitability Analysis

Sales Processes Sales ProcessesProduction & Quality Management processes

Goods issue

value

Goods

receipt

value +

quality cost

Settlement

value

Goods issuevalue +

quality

costs

Sales &

discount

value

A/R open

item

Journal:

finished

goods &

quality

Journal:

finished

goods

Journal:

COGS &

quality

Journal:

account

receivables

Journal: cash

receipt

Financial Accounting Processes

Confirma-

tion value +

quality cost



Production Execution

E

v e n t

Q u a l i t y

Start – DailyPlanning

P r o d u c t i o n

RecordGoods

Receipt

Quality In

Production

Preparatiio

n before

production

CheckingThe

ProductionDaily Plan

CheckingActualStock

Issue Coil tto machineInprocess

Inspection

RecordGoodsIssue

Consumable

RecordConfirmati

on

Warehouse

Stop

ProductionExecution

RecordGoods

Issue Coil



Production Execution – GI TO PROD (1)

Goods Issue to production order : is Consumption of

the component to the production order as reference. Theconsumption of this component that has relation with BOM.

In this case is COILs mostly, Zinc for galvanizing and Paint

for preprinting.

Goods issue will be done when loading the coils to the

machine.

Those goods issue will be applied at all work center.

Some of the work center will be required production order

combined as a reference for Work Center Slit and Work

Center Cut to length

Preparatiio

n before

production

CheckingThe


CheckingActualStock

Iloading

Coil to

Machine

RecordGoods

Issue Coil



Production Execution GI TO PROD (2)

Goods Issue Zinc :

The aim for this material is to put zinc as component BOM to makestandard cost for galvanize product more accurate and also for MRP

Purposes. But to put zinc in to component then need to calculate standard

consumption Zinc per ton in to the BOM. And the consequences for the

production is need to input proper quantity for each component of zinc per

coils.

The complexity is the consumption in the current is manual calculation

based on the (exit + scrap) - entry and the remaining is considered as

ZINC (but Zinc come from the Pot) but SAP required the consumption in to

Material levels by means is ZINC, Aluminum, antimony that need to beconsumpt instead



Pro Cons – alternative W/O Production order has choosen

Has 2 alternative with production order or without

With Production Order

Has to create monthly production order

to manage inventory of zinc pot.

Can measure the goods issue of the

component as it is.

Has to do Goods receipt of Zinc pot bymanual calculation goods issue – dross

– loss (1%) = Goods receipt.

Dross + Loss will be charge to

production order and already

considered in Cost estimate for the Zinc

Pot The consumption of Zinc can be per coil

based on the Zinc Pot.

Will have inventory Zinc pot in each pot

approximate 240 to.

The physical inventory will be correct

between system and real situation.

Without Production Order

Not required production order

Goods issue per coil will be manual

calculation in the first time, it might

discrepancy between the real stock.

Dross and Loss will be charge to

Production order on shift based

No inventory of zinc pot, only inventory

of raw material

The physical inventory might be

misleading because of some material is

already become Zinc Pot



ZINC POT

Min Level

80 toMin Level

80 to

Zinc

35.2To Zn-AL

4 to Level adjustment

120 to

Goods

Issue

Goods

Issue

GoodsReceipt

P d ti E ti R j t d



Production Execution - Rejected

E v e

n t

Start

P r o d u c t i o n

Preparatiio

n before

production

CreationProduction

Ordermonthly

CheckingActualStock

RecordConfirmati

on

Warehouse

Production

Execution

RecordGoods

Issue Zinc,Al, Anti

RecordGoods

ReceiptZinc Pot

Preparatio

n for

goods

issue Zinc

Pot



Paint - Illustration

Sales Order

Creation for PP

MRP

Create

Production order

of PP

Special

Paint?

Buy RAL As it is

Buy Paint

Component

Create

Production order

of RAL

Goods issue

Coil

261

Paint

Goods Issue

261

Coil

Goods Receipt

101

Component

Goods Issue

261

Paint

Goods Receipt

101

Production Order PP

Production Order Paint

Yes

No

WC Paint Mixer

WC Galvanize



Goods Issue Transaction



Goods Issue to Production Order

No Material Work Center1 Coils ALL

2 ZINC,ZINC AL,

ANTIMONY

GALVANIZING

3 PAINT CC



Production execution – GI consumable (1)

Goods Issue consumable : is the consumption of material

which Is cannot refer to production order / Coil. Forexample : Acid, Oil, Hydrogen, nitrogen. For this case SAP

recognize as goods issue to cost center.

This goods issue will be done on shiftily based and will be

done by production.

Those Goods issue will be applied at all work center

Preparatio

n before

production

CheckingThe


CheckingActualStock

Loading

Coil to

Machine

RecordGoods

Issue Coil

InprocessInspection

RecordGoodsIssue

Consumabl

e

Production

Execution



Goods Issue Consumable (2)



Goods Issue Consumable (3)

No Material Work Center1 ACID ALL

2 Tin,LID GALVANIZING

3 OIL CC



Production Execution – Inprocess insp.

In process Inspection: is the feature to inspect in process

parameter. At Kandil Steel will be using this to record the

production parameter. For example : Speed and

temperature.

This goods issue will be done on event based, the tools will

be integrated with PLC and will be done by production.

Those in process inspection will be applied at all work

center.

No integration necessary, only for reporting only if required.

Preparatio

n before

production

CheckingThe


CheckingActualStock

Loading

Coil to

Machine

RecordGoods

Issue Coil

InprocessInspection

RecordGoodsIssue

Consumable

Production

Execution

C f (1)



Production Execution – Confirmation (1)

Confirmation production order : is Confirmation the

activity of production per coil accept for BAF. Theconfirmation of production order will be involve the quantity

and the actual consumption of machine hours. And the

confirmation also required to fill in the start and finished

time of the machine and also break time with the reason of

break time.

The break time will be recorded with the reason. The

reason example is machine break down, setup, change roll,

and else.

Preparatiio

n before

production

CheckingThe


CheckingActualStock

Iloading

Coil to

Machine

RecordGoods

Issue Coil

InprocessInspection

RecordGoodsIssue

Consumabl

e

Production

ExecutionRecord

Confirmation

P d ti E ti C fi ti (2)



Those Confirmation will be applied at all work center.

Some of the work center will be required production order

combined as a reference for Work Center BAF, Slit and

Work Center Cut to length.

Production Execution – Confirmation (2)

C fi ti



Confirmation

P d ti E ti G d i t (1)



Production Execution – Goods receipt (1)

Goods receipt production order : is the activity to

receive the product after process in the machine. Thegoods receipt can be semi finished or finished goods

product. Goods receipt will be receipt coil by coil.

Goods receipt will be done by quality / inspector.

Those Goods Receive will be applied at all work center. Goods receive will be inspection lot automatically.

Goods receipt will be involve creation a new batch Number.

Preparation before

production

CheckingThe


CheckingActualStock

LoadingCoil to

Machine

RecordGoodsIssue Coil

InprocessInspection

RecordGoodsIssue

Consumable

Production

ExecutionRecord

Confirmation

GoodsReceived

B t h N b



Batch Number

Batch Number : this is will be considered as coil number for

Coil and Considered bundle number Sheet or small slit.

The number will be follow mother Coil.

The number will adjust with alphabet if mother coil is cut or

split.

The illustration as mention below

Shearing Line

(SHL1)

Operation 0020

Batch #900101A

PrdOrd# 021

5 Ton

Batch #900101B

PrdOrd# 021

5 Ton

Batch #900101

PrdOrd# 140000110 Ton

G d R i t P d ti O d



Goods Receipt Production Order



Quality Management



Hal: 48

PPQM Business process

1. Quality in incoming

2. Quality In Production

3. Quality return / Claim

4. Quality Delivery Inspection

5. Quality in Grinding6. Quality in Calibration

Quality Management for Incoming



Quality Management for Incoming

E v e n t

B u y e r

W a r e h o u s e C l e r k

DefectsRecording

QualityInspection Defect

Q u a l i t y i n c o m i n g I n s p e c t o r

InspectionLot

RecordUsage Decision

Move Materialto Unrestricted

Stock

CompleteNotification

Goods Receiptfrom Purchase

Order Return ToVendor

No

Yes


Move Materialto Block stock 1

1Move Materialfrom Block

stock toquarantine Sloc

Claim DailyPlanning

No

Yes

M R P Realloc

ated

Yes

No

Purchase

Order

Vendorevaluation

MaterialReturn

Yes

No

Quality Management in production



Quality Management – in production

E v e n t

Q u a l i t y

No

YesDefect

Acceptor not

Yes

No

Move to BlockStock.

PerformInspection

Move ToUnrestricted

Use

Move fromBlock stock

to Free stock


Acceptqc

recommendat

ion

Plannerevaluate

based on QCrecommendation Vs Margin

Yes

RejectionReport

No

PerformResult

Recording

DefectRecording

Usagedecision

Notificationmanual byInspection

Put therecommendation to

rejectionreport

Warehouse

Move fromBlock stock

toUnrestricted

Use

Daily

Planning

Production

Execution

Quality Management for Delivery



y g y

Inspection

E v e n t

R e q u e s t o r

DefectsRecording

Defect

D e l i v e r y I n s p e c t o r

InspectionLot



Stock

MaterialMovement for

Reinspect

No

Yes


Move Materialto Block stock

Daily

Planning

Reinspect

ion

Delivery

PerformInspection

Sales Returns with Quality Management (QM)



Sales Returns with Quality Management (QM)

E v e n t

W a r e h o u s e

C l e r k

S a l e s a d m i n i -

s t r a t i o n

Q u a l i t y I n s p e c t o r

CreateReturn Delivery

Post GoodsReceipt

ResultRecording

QualityInspection

CreateReturn Order

Record UsageDecision

Stock TransferReturns to Own

UnrestrictedStock

UpdateNotification

Automaticcreation

Inspection Lot

Create Billingfor Return

DefectDefect

Recording

Yes

No

Yes

No

CreateNotification

Inspectionat

Customerlocation

ReturnMaterial

?

Stock TransferReturns to

Blocked Stock

CreditMemo

Credit Note

Visiting report

PerformInspection

Record UsageDecision

1

1

1

CustomerClaim andComplain

YesNo

NeedCreditmemo

Stop

Test Equipment - Grinding



Test Equipment Grinding

E v e n t

Q u a l i t y I n s p e c t o r

M

a i n t e n a n c e P l a n n e r G r o u p


Defect

found

Yes

No

Follow UpRoot

cause and

resolve

Record Usage

Decision Accept

No

Yes

1

PerformInspection

Automatic creation

of Inspection Lot

with equipment

CalibrationMaintenance

Order

DefectRecording

Closed

Maintenance Order

Stop

Maintenance

order

P r o d u c t i o n

Test Equipment - Calibration



Test Equipment Calibration

E v e n t

C a l i b r a t i o n C o o r d i n a t o r

M

a i n t e n a n c e P l a n n e r G r o u p


Defect

found

Yes

No

Follow UpRoot

cause and

resolve

Record Usage

Decision Accept

No

Yes

1

PerformInspection

Automatic creation

of Inspection Lot

with equipment

CalibrationMaintenance

Order

DefectRecording

Closed

Maintenance Order

Stop

Maintenance

order

Quality Management for Reinspection



Quality Management for Reinspection

E v e n t

R e q u e s t o r

DefectsRecording

Defect

R

e i n s p e c t I n s p e c t o r

InspectionLot



Stock

MaterialMovement for

Reinspect

No

Yes


Move Materialto Block stock

Daily

Planning

Reinspect

ion

Stop

PerformInspection



Thank youSendy Priatmojo & Mohamed Salah

Contact information:

Edraky Consulting

E-Mail: [email protected] & [email protected]

Phone: +201159777708 & +2010167699928

www.edraky.com

mailto:[email protected]

http://www.edraky.com/

http://www.edraky.com/

mailto:[email protected]

Kandil PPQM E2E Integration V4 0

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Transcript of Kandil PPQM E2E Integration V4 0