Production Execution

Production execution is a central part of a complex process chain starting with creation of order

depending on only PIR ?? the independent requirements (planned or customer requirements) for the

supply of required material. Production execution covers the entire process of In-house production.

The process flow in a production order is as follows:

1. Order creation

2. Availability check

3. Machine reservation

4. Order release

5. Print order

6. Material staging

7. Order processing

8. Confirmations

9. Determine WIP

10. GR

11. Calculate order variance

12. Order settlement

13. Archiving & Deleting

Many of these activities are done automatically or in background so that manual processing is minimized.

WIP, variance calculation and order settlement are usually processed in background

Order creation

A production order defines which material is to be processed, at which location, at what time and

how much work is required. It also defines which resources are to be used and how the order costs are to

be settled. It can be created mainly in three ways.

Manual creation- A production order is created manually using T. code CO01, in the

combination of material, production plant and order type, where we have to enter the details

like quantity, start/end date and scheduling type manually.

From Sales order- If strategy 82 (Assembly processing with production order) is maintained

in MRP3 view of the material master, when sales order is created, a production order is

created directly without running MRP.//Briefly describe - Order creation from sales order

check for other strategies.

Converting from planned order- Planned order is created by MRP run. This planned order

is converted to production order from the current stock/requirements list or by using T. code

CO40 (individual) or CO41 (Collective).

The order will be assigned the status CRTD (created) and cannot be executed until it has been released.

Following are the basic functionalities required at the creation of production order:

Order type: Order type is created with the T. Code OPJH. It is a mandatory field while creating the

production order. It is used to control different functionalities like number assignment, user-defined status

management, settlement profile, order categories etc. It defines which master data has to be copied to the

production order. Order type is assigned to production order by entering manually while creating the order

or automatically. A specific order type is assigned to an order automatically while creation in three ways:

Depending on the production scheduling profile maintained in work scheduling view of the

material master. The default order type is assigned for each business process like

MTO,MTS,ETO etc.

Defining in the plant parameters (OPPQ). ?? Check this

Defining in the MRP Group parameters (OPPR).

Explain Order type dependent parameters

Number assignment: Each order is assigned to a number range group via its order type. You can assign

several order types to the same number range i.e., to the same number interval.

There are two different types of number assignment:

Internal number assignment:

The system automatically assigns a sequential number when an order is created from the number

range specified by the user.

External number assignment :

You must specify a number from the allotted number interval when an order is created.

Order item: If you create an order to manufacture more than one product (co-products), the system

generates an order item for each co-product.

Copy Routing: A routing contains the set of operations and sequence of operations in which production

of material is to be carried out. The suitable routing is copied on order creation based on the valid date

and the lot size. Selection of routing is defined in plant parameters (OPPQ) and order type dependent

parameters (OPL8). The production order copies the following data from the routing:

o Operations

o Data on external processing

o Parallel Sequences

o Work centers

o Standard Values (explain what is this ?)

o Activity types (explain what is this ?)

o BOM assignments

o Assignments of production resources/tools

o Trigger points (explain what is this ?)

Copy BOM: BOM is a formally structured list of components that makeup a product or assembly. It is

selected when the order is created. The selection of BOM is done based on the order quantity, explosion

date and production version maintained in material master MRP view, in plant parameters(OPPQ) and

based on the 'order of priority for BOM usage’ setting defined in T. Code OS31.

The individual BOM items, as well as other data from the BOM, are copied to the production order.

Operation sequences: The following are the operation sequences exist in SAP: ( where do you define

this in SAP ?how system selects which operation sequence will be used in run time ?

Standard sequence

Alternative sequence

Parallel sequence.

Standard sequence : It is the first sequence of operations that is created in the routing or

production order. If all of the operations are to be processed sequentially in an order, then only a

standard sequence is required. If certain operations are to be executed as alternative or parallel

to part of the standard sequence then they must be grouped together (where do you group

them?)as alternate or parallel sequence.

Alternative sequence : It contains operations that replace the operations in the standard

sequence. They are used if

The production process in the order is changed for certain lot sizes

Alternative capacities are available that can be used as alternatives in the case

of capacity bottlenecks

Alternative sequences cannot be changed or added to the production order.

Parallel sequence : It runs parallel to the operation of the standard sequence. If parallel

sequences exist in the routing selected then they are automatically copied to the order when the

routing is exploded

The start of the alternative or parallel sequence corresponds to the start of the branch operation

in the standard sequence. The end of the alternative or parallel sequence corresponds to the end

of the return operation.

Lead time scheduling: Lead time scheduling is done while creating the order to calculate the order start

date, production start date, production finish date and order finish date. Routing and scheduling margin

key defined in material master MRP2 view are the prerequisites for lead time scheduling. Capacity

requirements are calculated with lead time scheduling.

Availability check: The availability check in Shop Floor Control checks whether the components,

production resources/tool or capacities required for a production order are available. In a production

order, the system can only check a material component, if it is:

Kept in stock

Not a phantom item

Not a bulk material

Explain the two type of availability checking –

Materials Planning - MRP elements (for example, purchase orders, reservations) the system includes in the

availability check

Flexible Planning - the different MRP elements - together with the checking rule

Customization settings for availability check:

Checking group (OVZ2): It defines checking method during the availability check. It is assigned

to the material in material master MRP3 view.

Checking Rule : Checking rule ‘PP’ is maintained for availability check in production order. It is

assigned to order type.

Scope of check (OPJJ): The checking scope is defined via the Checking Group and the valid

Checking Rule. They define:

o Which MRP elements are taken into account in the check

o Which inventory categories are taken into account

o Whether the replenishment lead time is taken into account

o Whether the check is also to be carried out at storage location level

Checking control (OPJK): It is defined in the combination order type and plant. It defines:

Whether an availability check is to be carried out when you create or release an order

Whether an availability check is to be carried out when you save an order that has been created

or released

Which checking rule is to be used

What effect a material shortfall is to have on the creation or release of an order

Scheduling in production order: Scheduling parameter (OPU3) is essential to schedule the production

order according to task list data to determine the start sate and end date for an operation. Scheduling

data for a specific order type defines:

How to schedule production order (Backward or Forward)

Whether to generate capacity requirements

How to adjust order dates while scheduling

Explain the types of Scheduling

Detailed

Rate-based

Rough-cut

Adjust

Check if you can explain a little depth on configuration part.

Explain Reduction strategy.

Item categories in Production order: When BOM is copied to the production order, the BOM items are

automatically copied to the production order as components. Item category is defined for each component

which determines, how the component is dealt with in the order.

Different Item categories in Production order:

Category ‘L’ – Stock item.

Item produced and kept in stock to us when it is required.

Category ‘R’ – Variable size item

It is a stock item for which variable-size data is also maintained.

Category ‘N’ – Non stock item

The item is procured when it is required.

Category ‘T’ – Text Item.

This item category has no reference to a material. The item only contains text.

Category ‘D’ – Document item

The item is used to account for different types of documents (ex. drawings, graphics, photos).

Category ‘I’ – PM Structural element.

This item is used to describe the structural design of a piece of equipment (PM assembly).

It is only relevant for maintenance BOMs.

Reservation: When a production order is created, reservation is created against the production order for

all the raw materials on the BOM. Reservation can be created at the creation of production order or at the

release of the production order, depending on the option maintained in order type dependent parameters

(OPL8) in ‘Reservation/Purch. Req’ field in Planning view(1 – never, 2 – from release, 3 – immediately).

Assignment of PRT: Production resources/tools (PRTs) are the instruments that are used to carry out

the production. They are not consumed in the production and can be used several times. PRTs are

maintained in Routing and are copied to the operations in the production order or can be maintained in

the operations directly.

Production resources/tools are created depending on the properties and business functions:

Material PRT: It has its own material master record with the view “PRT”. A material PRT can be

procured, that is, it can either be purchased or produced. You can also keep it in stock and track

both its value and quantity.

Equipment PRT: It has its own equipment master record and has the full equipment functionality.

This category is particularly useful for those production resources or tools which you must

maintain yourself or which must be serviced at regular intervals. With the equipment category,

you can furnish proof of service or usage values for the production resource/tool.

Document PRT: It has its own document info record, (for example engineering drawings). You

can manage these PRTs using the R/3 Document Management System.

Miscellaneous PRT: It has its own PRT master record and can neither be procured nor kept in

stock.

Assignment of Documents: Document assignment allows you to create fixed links between orders and

documents maintained in the Document Management System (DMS). This ensures that the correct

document versions are supplied during the production process. In addition, this also allows you to keep

track of which documents were used to produce a certain order. The document links can be generated

automatically when an order is created or released or manually.

Automatic Generation From Material master or BOM:

Prerequisite: In Customizing for Document Management,(Menu Path: Cross Application components

Document Management Control Data Define Document type), you must configure which

document types are allowed for a link to an order. The corresponding document types must be linked with

object PORDER (In define Object Links).

In the production scheduling profile, (OPKP) you can define that when an order is created or released,

document links from the material master of the produced material or document items from the BOM are

copied as document links into the production order.

The material master or BOM is checked during automatic generation:

All existing document links for the material are copied to the production order. These document links are

assigned to the document header. You make assignments to an operation manually.

All production-relevant document items are copied from the BOM to the production order as document

links. When a document item in a routing is assigned to an operation, then this assignment is also copied

to the production order.

Manual Generation:

Prerequisite: The Document type which allows the assignment to the production order has to be

assigned.

You can create document links manually from the document links/documents saved in the material

master or BOM by calling Document overview in Production Order (CO02).

Order Change Management:

Order change management (OCM) allows the change in procurement elements (Planned order,

Production order and purchase order) when change is done to the master data or sales order data.

The change process in OCM is based on Initiating object records. These initiating objects records are

created automatically by the system when a sales order is changed or when a change number or a

leading change master record is released. These initiating object records determine which production

orders (procurement elements) have to be changed.

The initiating objects determine which procurement elements are affected by a change, and a

Procurement Element Change Record is created for each element. On the basis of the procurement

element change records, a controlled change of production orders takes place. In detail, changes are

determined, checked and executed.

Order Information system: The order information system is a tool for shop floor control with reporting

functions for production orders and planned orders. A report of all the orders in the system including

the orders with deletion flags or deletion indicators and archived orders can be generated with Order

Information System. It is carried out with transaction COOIS.

The system directly works with the order data base and offers both evaluation and mass processing.

Selection can be done at header level, operation level and component level.

The font is not uniform

Mass processing: Several functions can be executed simultaneously by Mass processing. For

production orders COHV is the transaction code for Mass Processing. Mass processing for production

order can be done at header level, operation level, components level and PRT level.

The following functions are available for production orders:

●      Order headers

○       Material availability check

○       Release

○       Print shop floor papers

○       Costing

○       Scheduling

○       Set up capacity requirements

○       WM materials staging

○       Picking

○       Set/delete user status

○       Confirmation

○       Technically complete

○       Complete

○       Log display

●      Operations

○       Release

○       Print shop floor papers

○       Picking

○       Set/delete user status

○       Confirmation

○       Log display

●      Components

○       Print shop floor papers

○       Picking

○       Log display

●      Production resources/tools

○       Print shop floor papers

○       Log display

Collective orders: When the special procurement key is maintained as '52 -Collective orders' in material

master MRP2 view, when a planned order or production order is created for a header material, then the

order for the dependent material is created automatically. Once Confirmation is done for the dependant

material, they are automatically issued to the header material, separate GI is not needed for the header

material and when GR is done for the header material, GR will be posted for dep. requirements

automatically.

Availability check

The availability check in Shop Floor Control checks whether the components, production

resources/tool or capacities required for a production order are available. In a production order, the

system can only check a material component, if it is:

Kept in stock

Not a phantom item

Not a bulk material

Customization settings for availability check:

Checking group (OVZ2): It defines checking method during the availability check. It is assigned

to the material in material master MRP3 view.

Checking Rule : Checking rule ‘PP’ is maintained for availability check in production order. It is

assigned to order type.

Scope of check (OPJJ): The checking scope is defined via the Checking Group and the valid

Checking Rule. They define:

o Which MRP elements are taken into account in the check

o Which inventory categories are taken into account

o Whether the replenishment lead time is taken into account

o Whether the check is also to be carried out at storage location level

Machine ReservationA production in-charge or production scheduler will be responsible for continuous utilization of

work centers for required time period. In this process, the orders should be always assigned to work

center in an appropriate sequence.

Machine commitment can be planned by using the capacity planning table or by using Order information

system.

Capacity Planning: Capacity planning calculates the requirements for the order by Capacity evaluation

and dispatches the requirements by Capacity leveling.

Capacity Evaluation: Capacity evaluation is done to calculate the capacity requirements of an order.

Capacity evaluation can be setup via two initial menus Tcode:

Work center menu generates evaluation for loads, for orders, for pools of orders, for

backlogs or for overloads.

Variable menu allows to access evaluation using profiles created for specific needs.

Capacity Leveling: The requirements that are generated by capacity evaluation are dispatched by

capacity leveling considering the available capacity, generated by availability check. Capacity leveling

is carried out on the capacity planning table Tcode.

Following are the methods for capacity leveling:

o Increase available capacity

o Find alternate work center

o Sort the sequence of operation

o External assignment

o Reduce the lot size/ splitting.

Capacity planning table can be viewed in tabular form or graphical form.

The tabular capacity planning table is divided into two parts, a resource section and requirement

section.

The Graphical capacity planning table, consists of several charts that are arranged horizontally where

capacity requirement and available capacity are grouped according to the criteria.

Order releaseAfter the creation of the order, machine commitment and availability check, the order is released

for production. Release of the order header results in the release of the order and all its operations for

production. The order will be assigned the status REL (released).

Release at order header level can be carried out automatically or manually.

Automatic Release: order will be released automatically while created depending on the production

scheduling profile (OPKP).

Manual release: Order can be released manually by clicking the green flag in left top corner of the

production order maintenance screen. It can be done in create screen (CO01) or in change screen

(CO02).

Print order

In the SAP System, the printing of shop floor papers is carried out in the form of lists. These lists are

defined in Print parameters (OPK8), which is a customization transaction. A list can be a complete

printout of a material provision list. Lists that are created and printed by the system refer to all the

operations, sub operations, components and production resources/tools contained in an order.

The standard SAP System distinguishes between the following four list types:

Operation-related lists: for example, time tickets LV01, completion confirmation slips LV02

Component-related lists: for example, material provision lists, withdrawal slips

PRT-related lists: for example a PRT overview LF01

General lists: for example an object overview, or an operation control ticket

All list types that are defined for the corresponding order type, plant and MRP controller can be printed

within production order processing. To print from a production order, choose Functions Print. In create

mode and Change mode, printing is carried out after saving the order. In display mode, printing is carried

out immediately.

Automatic Print on Release:

Printing of order can be carried out automatically depending on the production scheduling profile (OPKP)

maintained in material master.

Order print/ component print:

To print a component, in component overview, click on ‘Blue i’ select components and click ‘print’

icon.

To print an operation, in operation overview, click on ‘Blue i’ select operations and click ‘print’

icon.

Material stagingMaterial staging is functionality, by which the required material is transferred to the required

location in the shop floor.

Explain if WM is not used then how material staging is carried out?

If you are using Warehouse Management, you can use this function to transport materials to production

bin locations, which are grouped into supply areas.

has to have been released. ????

You can start material staging with WM integration in the following steps:

1. In the production order, choose Go to WM Pick list. The system prompts you through the

dialog steps.

2. In the production order, choose OrderFunctions Material staging Proceed. The remaining

processing steps are carried out in the background.

3. Material staging is automatically triggered during order release. You specify in Production

scheduling profile whether the function is carried out automatically or manually.

Order processingActual production of the required material is carried out here. All the components and PRTs are

issued to the shop floor from storage location. The components are consumed to produce the material.

The issue of goods can be done manually or parallel to confirmation by maintaining Blackfush in work

center or material master.

What is Backflushing ? explain different types. Explain its functionalities & configurations in detail here.

How manual Goods Issue takes place ? what is the movement type used etc.

ConfirmationsReporting of the usage of the components used in the execution of production is called

confirmation. Confirmation can be done at operation level or at header level. A combination of these two

types of confirmation within an order is not possible however.

Operation level confirmation: Here confirmation is done for the individual operations in the production

order. To confirm quantities, durations, activities or personnel data, enter a time ticket confirmation or a

progress confirmation. To make a confirmation at a particular point in time (for example, at the start of

setup or the finish of processing) enter a confirmation for a time event.

The status ‘PCNF’ (partially confirmed) will be assigned to the order once the confirmation for the first

operation and status ‘CNF’ (Confirmed) will be assigned when the last operation is confirmed. It is carried

out with transaction CO11N.

To confirm quantities, durations, activities or personnel data, enter a time ticket confirmation or a progress

confirmation. To make a confirmation at a particular point in time (for example, at the start of setup or the

finish of processing) enter a confirmation for a time event.

Header level confirmation: When the order is confirmed at header level, all the operations having

control key in which confirmation is maintained as optional or necessary are confirmed and status ‘CNF’ is

assigned to the order. It is carried out with transaction CO15.

Customization setting:

Confirmation parameters (OPK4) are maintained in the combination of plant and order type.

It defines:

To propose final confirmation or full confirmation.

To propose value of activity

To calculate activity value according to quantity change.

Confirmation sequence is to be adhered or not

To display all the components irrespective of back-flush indicator.

Confirmation slip can be printed after confirmation.

Determine WIPWork in Progress is a results analysis report which is run to calculate the cost of production

orders that have not been settled. It determines unfinished products according status of operations

confirmed.

It is usually run in background.

Goods Receipt

Once the confirmation is done, Goods Receipt is posted for the finished material

against the production order from shop floor to storage location. GR can be posted

manually or automatically.

GR is posted manually using the transaction MIGO or MB1C. The system

takes a default movement type 131 for GR.

GR is posted automatically while confirmation if ‘Auto. GR while

confirmation’ option is ticked in the Production scheduling profile.

GR slip can be printed once GR is carried out.

Calculate order variance

Order settlementOnce Goods Receipt is posted for the material against the production order, any existing costs of

the production order are settled so that the production order can be deleted at later stage. Order

settlement is usually run periodically Tcode. It is controlled by Settlement profile Tcode.

The settlement profile is maintained with the combination of order type. It defines:

Allocation structure

Source structure

PA Transfer structure

Permissible settlement recipient and proposed account assignment

Special control parameters

Archiving & DeletingThe deletion and archiving of orders is carried out in stages. Can be carried out individually

Tcode or mass order deletion Tcode. Production orders are deleted if they have following statuses:

TECO - Technically complete

CLSD - Closed

DLFL – Deletion flag

DLT – Delete indicator set

These are the conditions required for the following statuses are to be set automatically:

What is TECHO Technically complete - explain here

CLSD – If the order is released or technically competed and there are no payables i.e., cost

balance is zero.

DLFL – The order is delivered or technically completed and there are no payables i.e., cost

balance is zero.

DLT – The order is flagged for deletion and the residence time 1 has expired. What is residence

time 1 & 2 and where one can check in SAP ?

Archived when the Residence time 2 has expired.

Reference times are assigned to order type.