SAP Production Processes
Transcript of SAP Production Processes
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Production Planning
(PP)
- Overview -
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Components of Production Planning
Production
Planning
(PP)
Production
Planning
SOP
CapacityPlanning
MRP
Product
Cost
Planning
Repetitive
Mfg.
Production
Control
KANBANMaster
Data
DRP
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Planning Process
Execution
Execution
Detailed Planning
High Level Planning
Forecasting
Sales and Operations
Planning
Demand
Management MPS MRP
Sales Information
System
CO/PA
Manufacturing
Execution
Order
Settlement
Procurement
Process
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Material Requirements Planning
A set of techniques utilizing bills of materials,inventory data (lead times and current status) andthe master production schedule to calculaterequirements for raw materials, components, and
subassemblies
A time-phased planning tool with a defined, specificalgorithm
Balances supply and demand
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Inventory
MasterSchedule
PlanningRules
Bill ofMaterial
OrdersForecasts
M
R
P
P
r
o
ce
s
s
Recommended
Procurement
Recommended
Production
Inputs Outputs
MRP Process
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Material Requirements Planning
Elements
Requirement elements (demand) Withdrawals from inventory
Maintenance must be done at source of demand
Two types of demand
Replenishment elements (supply)
Receipts into inventory
Maintenance can be adjusted manually
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Elements of A Production Order
Raw Materials &Sub-Components
Bill of Material
Components
(Production Parts
List)
WorkCenter
Operations
ProductionRouting
ProductionOrder
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Organizational Data
Client Company code
Plant (shipping plant)
Storage location
Work center location
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Scheduleand Release
Shop FloorDocuments
GoodsReceipt
OrderSettlement
Goods
Issue
ProductionProposal
(Planning/Other)
CompletionConfirmation
CapacityPlanning
Production Process(Make-to-Stock)
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Organization
Plant specific organizational units Materials Requirements Planning controller
Production controller/production scheduler/planner group
Person responsible (financially)
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Organization
Non-plant specific organizational units Capacity planner
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MRP Control Parameters
Environment Number range
Master Data
Materials Requirements Planning controllers Float times
Planned Orders
Conversion order type
Dependant requirement availability
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MRP Control Parameters (continued)
Planning run Bill of Material (BOM) selection
External procurement
Planning horizon
Availability Check
Material
Production Resource/Tool (PRT )
Capacity Scheduling Control Parameters
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General Planning Parameters
Order Type Control Parameters Types of routings, BOMs per order type: manually or
automatically
Availability checking
Create Confirmation Parameters
Reservations
Status Updates
Define Valuation of Goods Received Moving Average Price Control evaluation
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Material Master Planning Parameters
Materials Requirements Planning views formaterials
Work Scheduling views for manufactured products
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Business Rules and Parameters
Automatic postings (account determination) COGS, Material consumption, inventory
Activate MRP
Availability checks Scheduling parameters
Order parameters
Confirmation parameters
Planning parameters
Consumption based planning
MRP
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Master Data
Master data is relatively fixed Material master data
Vendor master data
Purchasing information record
General Ledger master data
Before making the master data configurations, youmust have completely defined the organizational
structures
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Overview
Material Group Material Master
Material Types
Material Master Views Purchasing Info Record
Source List
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Material Group
The material group field allows similar materials tobe managed together
Material group is used in reporting
Executive Information Systems (EIS)
Logistics Information Systems (LIS)
Etc.
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Material Master
Material master data can be related directly to allorganizational levels
General information of a material (description,number, base unit of measure) however has to berelated to the highest level of organization - theclient
Further tailor the material master at the plant level or
lower
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Material Type
Categorizes materials Defines the material attributes
Valuation
Procurement
Price control Etc.
Controls transaction involving the material
Controls screen sequence, number assignment,field selection, account determination
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Material Types
Standard material types are used in all industries ROH: Raw Materials
Purchased externally only
No sales view
HAWA: Trading Goods Always purchased externally Sold without any change to the material
No manufacturing views exist
FERT: Finished Products
Are normally produced internally No purchasing views exist
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Additional Material Type
HIBE: Operating Supplies VERP: Customer returnable packaging
LEER: Empty containers
KMAT: Configurable material ERSA: Spare parts
DIEN: Services
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Material Master Views
Basic data Classification
Sales: sales organization data
Sales: general/plant data Sales text
Purchasing
Purchase order text Forecasting
ExecutivePen
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Material Master Views (continued)
MRP 1, 2 Work scheduling
Storage
Warehouse management Quality management
Accounting
Costing
ExecutivePen
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Material Master Forecasting
Number of Periods Required Historical Periods The number of historical values the system uses for the forecast
Forecast Periods Number of period splits for which a forecast should be created
Forecast Values The numeric quantity for future periods
Consumption Values The sum of planned and unplanned consumption
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Material Master MRP 1
General Data Purchasing Group The buyer(s) who are responsible for certain purchasing
activities
MRP Procedures
MRP Type Determines whether and how the material is planned
Reorder Point If stock falls below this point, the system is flagged to create a
planned order
MRP Controller The person(s) responsible for the material planning
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Material Master MRP 1 (cont.)
Lot Size Data Lot Size The lot sizing procedure to calculate the quantity to be produced
or procured
Minimum Lot Size
The smallest order quantity Fixed Lot Size
The quantity to be ordered
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Material Master MRP 2
Scheduling Planned Delivery Time Number of calendar days needed to obtain the material
Scheduling Margin Key Used to determine the floats required for scheduling
Net Requirement Calculation Safety Stock
Specifies the quantity whose purpose is to satisfy unexpectedlyhigh demand in the coverage period
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Material Master MRP 3
Availability Check Specifies whether and how the system checks
availability and generates requirements for materialsplanning
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Production oriented Master data
Bill of Material Master Data Work Center Master Data
Work Center Control Key
Routing Routing Use
Material Types and Production
Controlling Activities For Production Activity Prices
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Bill of Material Master Data
Bill of Materials (BOMs) are created as single-levelrelationships between one parent material and thesub-component material
EPEN
Barrel Cap Crown Cartridge Band Clip
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Bill of Material Master Data
Variant Bill of Material (BOM) Several products with a large proportion of identical
parts.
EPEN - Red
Red
CartridgeBand Etc.
Black
CartridgeBand Etc.
EPEN - Black
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Bill of Material Master Data
Multiple Bill Of Materials (BOM) One product produced from alternative components
or processes, where the differences are small(usually the quantity of a component).
BOM 1 = lot size 1 - 100
BOM 2 = lot size 101999
Black
Cartridge
(Make)
BandEtc.
EPEN - Black
Black
Cartridge
(Buy)
Band Etc.
EPEN - Black
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Bill of Material Master Data
Where is the Bill Of Material (BOM) used? MRP uses the BOM to determine dependent
requirements
Controlling uses the Bill Of Material (BOM) to calculate
product costs Production uses the Bill Of Material (BOM) to issue the
proper quantities of components and raw materials to theshop floor
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Work Center Master Data
Unique production or assembly area May include
Equipment
Groups of equipment
Production lines
Employees
Groups of employees
Operations carried out at work center
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Work Center Master Data
Work center used to define capacities Labor
Machine
Output
Emissions
Capacities used in
Capacity requirements planning (CRP)
Detailed scheduling Costing
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Work Center Master Data
Assigned Cost center
Work Center only assigned to one cost center
Human Resources (HR)
Qualifications Positions
People
C
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Work Center
Work Centers have multiple views Basic data
Default values
Capacity overview
Scheduling
Cost center assignment
Technical data
W k C t C t l K
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Work Center Control Key
Scheduling Determine capacity requirements
Inspection characteristics required
Automatic goods receipt by operation Print time tickets & confirmations
Rework
Cost Schedule external operationsstd values
Confirmations
R ti
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Routing
Routings enable you to plan the production ofmaterials
Routings are used as a template for productionorders and run schedules as well as a basis forproduct costing.
Routing is a sequence of operations which detailthe manufacture of a product
R ti
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Routing
Routing are used to determine: Operations
Work centers
Material components
Production resources and tools
Quality Checks
R ti U
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Routing Use
Routings will be used in Scheduling (dates, times)
Costing
Capacity planning
Production orders
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Routing
StandardSequence
AlternateSequence
ParallelSequence
Operation 10
Operation 20
Operation 30
Operation 40
Operation 10
Operation 20
Operation 30
Operation 40
Operation 25
Operation 20
Operation 10
Operation 30
Operation 40
Operation 25
M t i l T All d I P d ti
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Material Types Allowed In Production
Multiple material types may be used in arouting/BOM
Raw materials
Semi-finished product
Trading goods are allowed but not standard
Text or Reference materials common
Di l R ti Li t
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Display Routing List
A collective report displaying the available routingsand the material allocations to operations
Four General Types
Operations Related
Component Related
PRT Related
General List (Operation Control Ticket)
C t lli A ti iti f P d ti
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Controlling Activities for Production
Used to perform internal cost allocation, whereactivities by a cost center are measured
Labor time
Machine hours
Output activities are valued
Allocation of an activity type is always made withthe allocation cost element created in activity type
planning
A ti it P i
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Activity Prices
Prices (costs) for planned activities Fixed or Variable
Labor = $$/hour
Machine = $/hour
Overhead = %
Transaction Data
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Transaction Data
Includes transactions that describe businessactivities
Unlike master data, aggregate transactional data isdynamic - it constantly changes, usually many
times per day
Transactions use organizational structure, masterdata, and rules
Production Process
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Scheduleand Release
Shop Floor
Documents
GoodsReceipt
OrderSettlement
Goods
Issue
ProductionProposal
(Planning/Other)
CompletionConfirmation
CapacityPlanning
Production Process(Make-to-Stock)
Production Order
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Production Order
Production Order Defines Material is to be processed
At what location (work center)
At what time
How much work is required
Resources to be used
Order costs settlement
Production Order Standard Process
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Production Order Standard Process
Documents/Procedures used in the manufacture ofmaterial
Order creation/Order Conversion
Capacity planning
Order scheduling
Order release/processing
Shop floor documents
Completion confirmation
Goods receipts
Order settlement
Production Order Release
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Production Order Release
When a production order is created the followingactions are carried out:
A routing selected: operations and sequences
The bill of materials transferred
Reservations generated for bill of material items in stock
Production Order Release (cont )
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Production Order Release (cont.)
When a production order is created the followingactions are carried out: The planned costs are generated
The capacity requirements generated for the work centers
Purchase requisitions generated for non-stock items and externally-processed operations
Production Order Elements
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Production Order Elements
Order header Order number
Material produced
Plant
Quantity Dates
PRT Tooling
Equipment
Operations Tasks
Work centers
Times
Dates
Control keys
Components
Material components Quantity
Production Order Completion and
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pSettlement
Completionconfirmation Quantities of material
used
Operations completed
Time
Personnel
Costs
Planned costs andactual costs
Settlement rule for theorder for accounts/costcenters
Settlement profile
Settlement receiver
Production Order Completions
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Production Order Completions
Completion confirmation: Confirms both the yield and scrap quantities
Backflushing Can create goods movements
Reduction of component reservations Receipt of product if automatic Goods Receipt (G/R) set
Activity costs
Production Order Costs
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Production Order Costs
Planned costs Primary Costs
Material Costs (BOM)
Based on material master price for each component
Cost for External Processing Secondary Cost
Production Costs (Routing)
Material Overhead Costs
Production Overhead Costs
Production Order Costs
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Production Order Costs
Actual costs Primary Costs BOM components
Updated when goods are issued to order, or when purchasedmaterials are received
Secondary Costs Uses routing
Time Cards from Operations
May include activity costs
Material Overhead Costs
Production Overhead Costs
Gets updated at completion confirmation
Production Order Status
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Production Order Status
REL: Released
CRTD: Created
PRT: Printed
CNF: Confirmed DLV: Delivered
PRC: Pre-costed
GMPS: Goodsmovement posted
MACM: MaterialCommitted
MANC: Mat.Availabilitynot checked
NTUP: Dates are notupdated
SETC: Settlementrule created
PurchaseOverall Process
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Sales Order
Process
Sales Order
Entry
CheckAvailability
ProductionProcess
Run MPS w/MRP
Convert ProductionProposal
Schedule
and Release
Procurement
Process
Pick
Materials
GoodsIssue
Purchase
Requisition
PurchaseOrder
GoodsReceipt
Invoice
Receipt
Paymentto Vendor
CompletionConfirmation
Goods
Receipt
QualityInspection
OrderSettlement
Post GoodsIssue
Invoice
Receipt ofPayment
Overall Process