PP Process Flow

Step 1: Material Master

Logistics > Production > Master Data > Material Master > Material > Create General >
Immediately MM01

Step 2: BOM creation

Logistics > Production > Master Data > Bills of Material > Bills of Material > Material
BOM > Create CS01

Step 3: Work Center creation

Logistics > Production > Master Data > Work Center > ( New Screen ) Work Center >
Create CR01

Step 4: Route creation

Logistics > Production > Master Data > Routings > Routings > Routing > Create CA01

Step 5: PIR Generation

Logistics> Production>production planning>demand management>PIR>Create MD61

Step 6: MRP Run

Logistics>Materials Management>Material planning>MRP>MRP>Total
Planning>Online MD01

or

Logistics > Production > MRP > MRP > Sng-Item, Multi-Level MD02

Step 7: Evaluation through MRP list and Stock requirement list

Logistics>Materials Management>Materials Planning>MRP>Evaluations>MRP
List>Individual Display MD05

Logistics>Materials Management>Materials Planning>MRP>Evaluations>Stock

Requirements List MD04

Step 8: Conversion of Planned order to Production order

Logistics > Production > Production control > Order > Create > With a planned order
CO40

or

Logistics >Production > Production control >Order > Create >With material CO01(For
creating production order Without planned order)
Step 9: Order management
Logistics >Production > Production control >Order > Change >With material CO02

Step10: Confirmations
Logistics >Production >Production control >Confirmation >Enter >For order CO15

or

Logistics >Production >Production control >Confirmation >Enter >For Operation >For

time ticket CO11N

Step11: Goods issue

1. Logistics >Production >Production Control >Environment >Goods Movement >Goods
Issue

2. Logistics >Materials Management >Inventory Management >Goods Movement

>Goods Issue MB1A261Movement type

Step12: Goods receipt

Logistics > Production > Production Order > Environment > Material Movement > Post
Mat to Stock

or

Logistics > Materials Management > Inventory Management > Goods Movement > Good
Receipt > For Order MB31

Step13: Techo Or Close Order.

This can be done from Prd. Order Header menu.

In sap there is specific transaction flow for a particular Manufacturing Process. It all
depends upon the requirement of client and process.

Here is the basic flow of transactions which is req. for creating master data, planning and
order processing

The Made TO Order Cycle:

The sale department passes on the Made to order-Sales Order to the Material department
so that material requirement is analyzed. This is done in SAP by carrying on an MRP Run
for all the levels of the product BOM. This MRP Run would create Planned Orders for
the shortages. Here the planned orders for fert sub assemblies, Components etc, are
created. This planned orders for materials produced in house are converted in to
Production order and planned orders for materials procured from outside are converted in
to Purchase order. The creation of Production order through the planned orders will
convert all the dependant requirements in to dependant reservations.

The dates of production or purchase are decided through the total replenishment time
mentioned in the material master, If it is, in-house production, then the Route times
precede over the total replenishment time entered in the material master. And the
availability of all the components is ruled by the availability checking rules and by
availability checking scopes. Thus whenever the system declares a product to be ready or
available by a date it implies that the system has checked the availability of the material
with respect to the Ware house stock, in coming stock (Receipts) and all other planned
orders already existing for the product or material.

In the Made to order production, sales order produced for Fert and Sub assemblies are
converted in to production order during MRP run. The production orders created have a
specific quantity, specific Basic start date and a specific Basic Finish Date, a set of
operations and a set of component attached from the BOM. In course of production the
quantities produced in the operation for an order should be confirmed so that the current
status of work is available in real time situation. The components required for production
are issued to the production order through goods issue by a movement type 261 and the
issue is always made to the reservations or to the order, thereby clearing the reservations.
Issues of unplanned components are made as new items issue and not as order issue. The
quantities, for an order which are produced completely are the put in to stock i.e. a Goods
Receipt is done.

Thus the made to order cycle starts with the sales orders and converting them to
Production Orders through MRP Run and there off confirming produced quantities for an
order and finally putting the order in to stock.

The Cycle of Made to order: Steps: MTO Scenario

1. Material Creation (Made To order Material with major changes of: Item Category:
0004-make to order/assem.,or 0001-make to order)
2. Routing Creation
3. Creation of BOM
4. Sales order
5. Production order Scheduling, Costing, Release and Save
6. Production order Quantity confirmations for operations, Parallel task of material issue
to order or to reservations (261)
7. Fully Produced Production Quantities will be put into stock (GR)
8. Delivery against sales order
9. Invoicing.

The Made To Stock Cycle

The Made to stock scenario will start from Demand Management here we can create
Planed independent requirements manually or by using data from SOP. After MRP run
system will create planned orders which we can convert to Production order As the
Stocks produced there off are not customer stock or the stock is not attached to any
specific customer. Further confirmations are done and issues of material are carried out to
the production order. Finally the production is put in to stock (GR).

Here at any point of time a sales order might come in and delivery to the customer is
done from the existing stock.

Production Master Data

The Production Master Data consists of Material Master, Bill of Material, Work Center,
Route, and Production Line Design.

The Material Master is created first for all components involved in making the Final
product. Then these components are put in a product relationship i.e. a list of materials
required to make the final product are put in a hierarchy, this is called a Bill of Material.

The next task is to identify the work centers required to produce the product; if the work
centers are already created then they can be readily put in a sequence, which would be a
sequence of work centers required to produce the product. This sequence of work centers
one after the other (in the sequence of work to be done) is called a Route

The Cycle of Made to stock: Steps: MTS Scenario

1. Material Creation (Made To Stock Material with major changes of: Item Category:
NORM )
2. Creation of BOM
3. Route Creation
4. Demand requirements
5. MRP Run
6. Creation/conversion of Production order (Made To stock), Scheduling, Costing,
Release and Save
7. Production order Quantity confirmations for operations, Parallel task of material Issue
to order or to reservations (261)
8. Fully Produced Production Quantities will be put into stock (GR)
9. Sales order Creation
10. Delivery against sales order
11. Invoicing.

Example:-

MTO: Make to Order

The production and Procurement will only happen with reference to Sales Orders. Until
unless there is no Sales Order there will not be any Procurement/production.

Planning strateguy used is 20. with littlevariation in the Business requirement Planning
Strategy 50 can also termed as MTO.
In material master in MRP3 view mainatin the MTO Strategy group like 20,50 etc

MTO: Make to Stock

With this Business Process, the main aim is to supply to the customer immediately there
is a demand and this can be done by supplying from the Stock.

You will keep the products as stock..

Planning Strategy : 10 & 11.

Both these strategies will not consider Sales Orders.
But strategy 40 can also be termed as MTS, here with this Sales Orders will also be taken
into account to smoothen the production.
MRP Concept in SAP

MRP is the planning tool in SAP which will look at all aspects of a material and is highly
based upon the master data of the material.
MRP looks at current inventory, current requirements, and open purchase
requisition/orders and so on. So if a material is required to satisfy a sales order and there
is no inventory, MRP will create a planned order if the item is to be produced in house.
This planned order can then be converted to a production order by the master scheduler.

If the item is to be procured, then MRP will create a purchase requisition which the Buyer
will convert to a purchase order. This is just one scenario, the system is highly
configurable and will do pretty much whatever you tell based on config and master data.

The main function of material requirements planning is to guarantee material availability,

that is, it is used to procure or produce the requirement quantities on time both for
internal purposes and for sales and distribution. This process involves the monitoring of
stocks and, in particular, the automatic creation of procurement proposals for purchasing
and production.

The following topics are covered in the rest of material;

Planning Procedure
MRP at Plant or MRP Area Level
Reorder Point Planning
MRP Run Procecure
Total Planning
Total Planning Run With MRP Controller and much more