What are the cutover activities followed for PP module?

I am listing some cut over activities to be followed (for PP - Discrete Manufacturing).

Production Planning / Master data:

For Production planning, only master data shall be migrated to SAP. In the 1st Stage, there is no
master data. Following is the master data elements relevant for PP:

- Bill of materials
- Routing.
- Work Centres.

Transaction data:
As of the cut off date, ideally there should not be any work in process. All the open production
orders should be closed and semi finished goods should be dismantled and should be added to
Raw materials. This strategy should be followed for all production orders where lead time to
complete the production order is not large.

Since, the production orders are for longer duration and it is not possible to dismantle the product
and add it to inventory, following can be the strategy for migrating the data to SAP:

- Create a material master for the work in process and set the standard price as the cost incurred
for that product (ie. Work in process)
- Create a bill of material (which will be used only for this production order) including this
material and other materials still to be consumed.
- Create Routing for rest of the production process.
- Bring the work in process material into inventory as of the cut off date.
- Create the production orders in SAP for the Work in process and issue materials to production
order.

Complete the production process after the cut off date of the project.

Tips by: K.S.Kulkarni

What happens to planned after it has been converted into production order?

When you convert Planned order to Production order. the planned order are offset by production
order. Reference of planned order can be seen in the production order.

How to attach a drawing for a material to BOM? Is it possible?

Yes, you can attach a drawing.

First create a document using Transaction Code "CV01N - Create Document".
Attach your drawing in that document.
The system will generate a document number. Assign this document in the BOM with item
category D.
Report in Long Term Planning - You use long term planning for your customers, what they
need are very simple, just to calculate future requirements for 1 or 2 years.
Are there any reports in SAP to list of material requirement from LTP?
You need a list of material requirement from long term planning result for each item.

Use MS70 then use MCEC.

Scheduling planned order - How can you get planned orders scheduled so that you can do
capacity leveling?
MD11 and then Schedule works fine but ideally you would want the the planned order
scheduled automatically on creation? You have tried setting up an action to schedule the
orders but cannot get that to work either.

When running MRP, try selecting "2" in the scheduling box this will bring planned orders into
CM01 and CM21

Capacity planning CM01 - When you run capacity planning T-code: CM01, you found the
plan orders are not included in the pegged requirement, you checked the profile, the check
box for order and plan order are all actived.

Guess that planned orders have been created without capacity requirement indicator in MRP ("2"
- Lead Time scheduling), if this is the case, then when converted to process orders they will have
impact on the Resource. If you want to see them as planned orders, re-run the MRP or change in
every planned order, going to the Menu: Edit --> Scheduling

Another couple of possibilities are to do with the routing/work centres used and whether it
isactually calculates consumption of capacity of the category at the work centre being displayed
in CM01 (it might consume a capacity pool or it might not consume the category).

MPS in Backgound/Online - You want to run MPS for a plant either online or in the
background, but you do not get any results. If you run MPS for a single material/plant,
then everything is 100% OK.

You need to run a planning file and a consistency check first, transaction OMDO and MDRE
respectively you'll need to set up two jobs to do it but it is straight forward, once you've done this
set up the background job for MPS to run and do it in NEUPL first time round and then change
to NETCH after that.

What is the output of MPS run?

From MPS run you plan the materials which are of 'A' type in the abc analysis (80% dollar
value) that have to be planned before hand.
MPS is also a type of MRP only in which components just below the materials on which MPS
run is taken place, are planned.
Table for production order status - What is the table for finding status (for Ex TECO ed
prodn orders). We are not able to find from AFKO and AFRU tables the status of
production orders or at least the link tables if known can be mentionned. You are unable to
link the structure caufvd and IOHEADER WITH AFKO and AFRU.

JEST is the table.

Data dictonary table for SOP planning data - You are using Standard SOP (Info structure
S076), in which table can you see the planning values that you maintained in MC93
transaction?
You looked under table "S076" and did not see any values there.

Use T.Code MC95 to display your entries under the version which maintained the the table
S076.

Production order operation's component allocation - How does SAP know that an
operation has components as indicated by the component allocation indicator? Tcode
CO08.

Component allocation is done via routing maintenance or BOM maintenance for the assembly.
This is master data maintenance. As soon as a PO is created, the master data is read into the PO.

How to delete groups of products?

How to delete a group of products that was created in screen MC84?

Delete the members in the product group and then archive the product group in transaction
SARA, object=MM_MATNR.
(The product group is created as a material master record with material type PROD and this
record is deleted in SARA.)

Study Material Contributed by Ulhas Kavle - Senior SAP Consultant

Minimum Configuration Required for Routings

Minimum Configuration Required for Routings

Allowed Material Types for the Task List -

Here you can configure the allowed Material Types for the task List such as Routings, Rate
Routings, Reference Operation sets, Rate Reference operation sets, Receipes etc.
SAP nevertheless has already preconfigrued with standard material types and Routing types,
though if you want to add more material types to the list you can do so.

Transaction code - OP50 : The following are pre-configured by SAP, though you can add more.

Task
Material
List Description Description
Type
type
N Routing FERT Finished Products
N Routing HALB Semifinished Products
S Reference Operation Sets FERT Finished Products
S Reference Operation Sets HALB Semifinished Products
R Rate Routing FERT Finished Products
R Rate Routing HALB Semifinished Products
M Reference Rate Routing FERT Finished Products
M Reference Rate Routing HALB Semifinished Products

User Defined Fields -

You can define upto 18 different fields - 6 Text fields, 3 Qty Fields, 3 Value Fields, 3 Date fields,
1 check box and 2 indicators. This you can use for defining the following:

a) Parameters in Scheduling, Capacity, Costing Formulas (Standard Formulas)

b) Production Process related or Operation related information

c) Any other user defined field

Transaction code for configruation - OPEC -

You have to define these user defined fields in a fields set called a Field Key.

Routing Selection -

Routing selection is configured for automatic selection of Routings in the Production orders.
Against every Selection ID that you create, you would be declaring the proirity of selection of
Task list (Routings)
Transaction code is OPEB.

SAP has already pre-configured the automatic Selection.

Every Selection procedure has a selection ID

>>> Selection ID has Priorities
>>> Selection ID has Task List Usage and Status

Selection Selection Task List

Usage Status Status Description
ID Priority Selected
Released
01 1 N 1 - Production 4
(general)
1-
01 2 N 2 Released (order)
Production
01 3 R 1 - Production 4 Released (general)
01 4 R 1 - Production 4 Released (order)

What the table means -

This above configuration means that the production order where the selection id is used should
first choose the Routings task list which has usage 1 and status 4, if this Routing is not found for
the production order material then as second priority option, the system should try to find the
Routing task list of usage 1 and status 1 if found, if this Routing is also not found, then the
system as a third priority option should try to find out a Reference operation set whose usage is
1 and status is 4 and it has a header material (in question) allocated to it already and if this is also
not found then the system has a last option to search for a reference operation set whose usage is
1 and status is 1. Ultimately if SAP cannot find any task list for the order type being created, it
will either Abort or continue creation of Production oeder based on the configuration.

Use of Selection ID -

This "Selection ID" is assigned to the "Production order type" in the order type dependent
parameters configuration, to inform the Production order on selection priorities of Routings.

PRT Configuration -Define PRT Control Keys -

The PRT control key determines whether PRTs that are allocated to a task list or an order are
included in the following business functions:

a) Scheduling
b) costing
c) printing production orders
e) completion confirmation

The path for this configuration is - Tcode SPRO >>> Production >>> Basic Data >>> Routing
>>> Assignment of Production Resources/Tools >>> Define PRT Control Keys

Define Formulas for PRT -

In PRT maintenance, formulas are used to calculate the usage value and the quantity required of
a PRT.

Note

Formulas are also used in

capacity planning, scheduling and costing to calculate capacity requirements, lead times and
costs.

Standard SAP provided formulas are:

SAPF01 : PRT: Quantity

SAPF02 : PRT: Usage value

The path for this configuration is -

Tcode SPRO >>>

1st - Production >>> Basic Data >>> Routing >>> Assignment of Production Resources/Tools
>>> Define Formula Parameter (or directly use T-Code OP52)

2nd - Production >>> Basic Data >>> Routing >>> Assignment of Production Resources/Tools
>>> Define Formula Parameter (or directly use T-Code OP55)

Define Routing and Recipes

Define Routings

Routings define the production activities and sequence in which these production activities are to
be carried out in order to produce a certain material. Routings are used in SAP PP/REM.

The operations in a Routings are assigned to work centers, PRT, inspection characteristics, BOM
components and Trigger points.

It defines the order in which the operations need to be processed so as to produce a material.

Routings are task list and they are categorized as Routings, Rate routings, Reference operation
sets, Reference Rate Routing.

Example –

Routing – For Material M1 at Plant 0001

Material M1 at Plant 0001

  Operation = 0010: Work center = WC1: Components-C1, C2, C3: PRT0001

  Operation = 0020: Work center = WC2: Components- C3, C4: PRT0002:
  Operation = 0030: Work center = WC3: Components- C5,
  Operation = 0040: Work center = WC4: Components- C6,

Type of Routings

Type of Routings

Routings are task list and they are categorized as Routings, Rate routings, Reference operation
sets, Reference Rate Routing.
Routings –

A Routing is used for specifying the sequence of operations to be used for production, Routing is
used in SAP PP. The operations in a Routings are assigned to work centers, PRT, inspection
characteristics.

You can create material specific Routings by creating the Routing for a material and plant
combination.

You can also create a Routing without specifying the material or the Group number and after
creation the system will allocate a Routing Group number generate internally (you can also
provide an external Routing number before creation in the selection screen). Once such a
Routing is created you can allocate this routing to all the products which are manufactured with
the same production processes and activities through the same set of work centers, production
resource tools (if any) and Inspection characteristics (if any). After creation of such a Routing,
you can recall the routing in the change mode through the Group number. Once you allocate such
routing to many products, any change in the routing is also applicable to all the allocated
material Routings.

Transaction code to create, change, display Routings – CA01, CA02, CA02

Task list type = N

Reference Operation sets –

If certain sets of operations are used frequently in many Routings, they can be created separately
in transaction code CA11 {Change/Display: CA12/CA13).

You can call such reference sets of operations in any Routing, to simplify the creation process of
Routing. After calling a specific set of operations you need to unlock that set and make it free for
use in the Routing under creation. Once you unlock that set in your Routing you would remove
the link with the reference operation set. You can change these operations in the Routing under
creation, once you unlock the reference set.

You cannot assign a material to be produced to a reference operation set. It can have neither
parallel nor alternative sequences.

Task list type = S

Rate Routing –

A routing for whose operations the production quantity and a fixed duration has been defined.
Thus the production rate is also defined.

Rate routings are used when you plan on a quantity basis, for example in repetitive
manufacturing. It can have parallel sequences.

The transaction codes to create a Rate Routing are CA21 (Change/Display: CA22/CA23)

Task list type = R

Reference Rate Routing -

Similar to the Reference Operation sets, the operation sets created as Reference rate Routing can
be called in the creation of Rate Routing to reduce the efforts of creation.

The transaction codes to create a Reference Rate Routing are CA31 (Change/Display:
CA32/CA33).

Task list type = M

Operations of a Routing can be assigned with -

Operations of a Routing can be assigned with –

Each of these operations which are placed in an order of processing is assigned with:

 Work center

Each of the operations in a routing is assigned with a work center and this work center in turn
has the activities that are assigned to it, specifying their consumption is logical when you carry
out work their. The standard values or parameters that are assigned to the work center help in
analyzing the capacities that would be consumed to manufacture a product, schedules (start times
and finish times) and the costs that will be incurred.

The work centers are assigned in the Routing operation overview screen.

Note – You can create an operation without a work center, but there would be no standard value
activities resulting in no scheduling, no capacity allocations and no costing for such operations.

 PRT – Production resource tools

Production resource tools can also be assigned to the operations specifying the use of tools such
as jigs and fixtures (as an example) and that their consumption is logical when you carry out
work at the operation. To assign PRT to the operation you need to create them first.

Assignment of PRT is not a mandatory task.

 Inspection Characteristics

You can assign inspection characteristics to the operations specifying that you are going to carry
out “In-process production order inspection”. To assign inspection characteristics to the
operations you need to create quality inspection characteristics first and then assign to the
Routings.

 BOM components

The Routing operations are assigned with BOM components so that:

a) Backflush – Components which are marked as backflush are supposed to be

issued automatically to the Production order at the time of Order confirmations. Thus
all the components which are marked as backflush should be assigned to respective
operations.

b) Requirement date – If components are allocated to an operation, the system can

derive for you a requirement date of the component for the production order. This
requirement date can help the material’s management team and the shop floor
operator to make the raw material available on the operation start date.

Note - If component are not allocated to the operations, then the SAP automatically allocates all
the BOM components to the first operation. This also means that all the backflush materials
would be automatically issued when you confirm the first operation. And this also means that all
the raw materials would be available for production on the start date of the first operation.
Sequence of operations

Sequence of operations:

Standard Sequence – Default Sequence - The Operations in a routings are processed one after
the other unless otherwise you add an alternate sequence of operations or parallel sequence of
operations.

Alternate Sequence - In an alternate sequence you are replacing the certain operations with a
different set of operation/s. Lot sizes can only govern the selection of the alternate route, this lot
size range is different than that entered in the Routing header though they should overlap and
should not be vaguely different.

Parallel Sequence - If in the production process, certain operations are to be processed along
with each other or simultaneously then you need to introduce parallel sequences for those set of
operations. The operations introduced in the parallel sequence and the operations in the standard
sequence might have different lead time, thus to align the standard sequence with the parallel
sequence we need to introduce floats at the start or end of the standard or parallel sequence. To
this purpose, you create an alignment key for the standard sequence and every parallel sequence.
Creating a Routing

Creating a Routing:

A Routings can be created as follows for all the Materials in a plant that are to be produced:

Enter the Following in the selection screen -

Material Code / Plant –

Enter the material code and the plant code for which you want to create the Routing. All the
Materials in a plant that are to be produced need a Routing.

Group –

Entering a Group Number is not mandatory, if you have not entered the Group Number, SAP will
generate one for you after you press the save button for creation.

Key Date -

The Key date that you would enter should be a date on which your work centers and cost center
and BOM is valid. You should make sure of such information. And if you enter any date on
which any one of them is not valid, you would end up with errors or warnings.

Enter the Following in the Routing header screen -

Group Counter –

A Group Counter is similar to BOM alternates. It defines the Routing alternates. A Group
Counter “01” means that it is the first alternative routing. When you want to add one more
alternative to the group you can do so and the next routing alternate will be “02”. It is also
possible to use alpha numerical 2 characters value like AA, 2A.

A Routing is always defined by the material number of the routing, the plant of the material, the
group number and the groups’ counter number.

Criteria to have multiple Routings for a material –

a) Due to the change in production process methods

b) Use of different work centers.
c) Changes in production methods or routes due to production lot sizes, i.e.
production order quantities.
d) Seasonal changes in production routes or production processes.
e) Etc….

Usage –

It is a mandatory field and it defines the area where the Routing is going to be used. If a Routing
is to be used only in the area of production, then you can pick a value = “1” and if it is to be used
in plant maintenance then you will assign an usage = “4” (you can use usage = 4 when you are
creating a maintenance plan task list)

Planner group -

This is a non Mandatory field.

A Planner group field value identifies a group of planners responsible for maintaining the
Routing. This is absolutely not mandatory and not required for entry unless and until you want to
classify the routings through this key.

From Lot Size – To Lot size –

In this field you can define a lot size range for which the Routing is applicable. Many a times the
production routes or the production methods or the production processes change due to change in
production quantities, thus to accommodate this you can enter a lot size range.

When a lot size of production is not a factor to have multiple routings for a product, you can
have one single lot size from 0 to 99,999,999.

An Example on How Routing Lot Sizes are used –

If you create a Material Routing with a Routing Group Counter 01, having a Lot size from 0 –
10000 and then if you create a production order for a quantity of 10001, this Routing will not be
pulled in to the production order.

On the other hand, if you create one more Material Routing with a Group Counter 02 for a lot
size 10001 – 99999, then this Routing Counter 02 will be pulled in the above production order.

Similarly if you create a Production order with order qty of 9000, the Routing with a Counter 01
will be used for production.

Thus we can summarize that Routing Lot Sizes are one of the factors which make to create more
than one Routings for the same material (through the use Routing Group Counters)

Lot Size UOM –

The Lot Size UOM is normally the Base UOM of the material for which you are creating the
Routing. It is defaulted in the Routing from the material master.

Inspection points –

If you plan to use SAP QM “In-Process Inspections” with quality inspection planned at various
Routing operations, then you have to identify an inspection points.

In the case of ‘In-Process Inspections’, you can carry out quality inspections at an operations
numerous number of times, i.e., for example, if you produce 20 out of 100 quantities of the order
you can carry out a inspection recording, and similarly if you receive 5 more you can carry out
inspection at that point of time for the same production order operation and if you receive the
remaining 75 against the same order you can again carry out an operation inspection using an
inspection point.

An Inspection point defines the administrative data of inspection that would be carried out at a
given point of time. SAP provides the following user defined fields that would clearly identify
your inspection point – (the following is just an example)

User Field Fields actively in Use Keyword

Text Length 18 1 Operator
Text Length 10
No. Length 10 5 Inspected Quantity
No. Length 3 4 Shift Number
Date 2 Date
Time 3 Time
You should configure such a required combination for header data entry for each inspection
(inspection point) and choose freely defined inspection points – value “100” in the drop down.

Inspection point definition if not entered here, is fetched from the plant level settings. Thus you
can afford to forget an entry here if you have set at the plant level for use for the in-process-
inspection of all the products in the plant.

Note – I would not go through the pains of In-Process inspection as in-process-inspections do

not govern usage decision on the material produced. SAP QM in-process inspections are only for
information purpose. Therefore if you want to decide the usage of a material and at the same
time record quality inspection results you can use inspection at Goods receipt. Therefore the
following 2 fields also are not be important if you are not using in-process inspection.

Partial Lot assignment -

This is also SAP QM related information used for in-process-inspection. You can have the partial
lots generation methodology defined for each of the material in the Routing and if you want to
use the default settings made for QM at the plant level in SAP QM Configuration then you can
choose so. The partial lot assignment for each inspection point with batch creation or without
batch creation seems logical choice for in-process inspection.

Partial lot assignment during result recording is an optional tool.

Dynamic Modification –

If you are planning to use SAP QM Dynamic Modification for in-process-inspection to tighten or
reduce the inspection scope, then you have to choose a level at which it is carried out –
inspection lot or inspection characteristics level. The system evaluates the number and results of
the last checks with this rule. From the inspection severity determined this way it lays down the
inspection scope for the individual characteristics using the sampling procedure.

Enter the Following in the Routing Operation screen -

When you press DETAIL  OPERATIONS on the header screen, then you would reach the
operations overview screen. Where you can enter the following:

The Operation related data can be changed in the production order where it is used.

Operation number -

SAP provides a sequential operation number, but if you don’t like this you can overwrite it with
you own numbering scheme.

Sub-operation –

Enter a sub-operation number if you have any. You cannot assign material components,
production resources/tools or inspection characteristics to sub-operations, though you can assign
all this to the superior operation.

A sub-operation can be costed, but can only be scheduled relative to superior operation. You can
cumulate standard values from sub-operations on the corresponding operation.

A Sub-operation can be processed externally.

Confirmations can be made at the sub-operation level.

Note - Normally in SAP PP, I have seen people rarely using sub-operations.

Work Center –
Enter a work center number where the operation is going to be carried out. Once you enter the
work center for the operation, the operations adopts the control key value, the standard text
descriptions, the standard value key and the parameters inside them, the capacity generation
formulas, the scheduling generation formulas and the costing requirement generation formulas.

Though for every operation it is not mandatory to enter a work center.

Note – Identifying which operations are to be included in the Routing is very important and as a
consultant you should decide, on various criteria such as machining time, bottleneck operation,
costing relevancy, whether an operation should be included in the Routing.

Control key –

Control keys are normally pulled in from the work center, if you have entered a default control
key there. Control keys are really important keys in SAP PP.

A control key governs the following controls for a production order Routing:

 Whether a work center at an operation should be scheduled.

 Whether a work center at an operation should be subjected to cost derivations.

 Whether a work center at an operation should derive the capacity requirements.

 Whether a work center at an operation can have auto goods receipts posted from it. Such
work centers are the last work centers in a sequence of operations laid in a routing or recipe.

 Whether a work center at an operation can be subjected to quality inspection through the
use of quality inspection characteristics assigned in a quality inspection plan.

 Whether a work center at an operation is externally processed and not processed in

house; in which case a purchase requisition will be created to send the process out for
production, please note that if you are sending the process out for production, the purchase
requisition is not created for any material code but it is created for the process description
without the material code in the requisition.

 Whether a work center at an operation should be allowed to carry out confirmations and
if confirmations are allowed whether these confirmations types be operation wise
confirmation or milestone confirmations.

Milestone confirmation means that if you confirm a certain operation in a task list, it would
automatically confirm all the operations above it till it meets another milestone operation
placed above in the sequence or in other words it will confirm all the operations from this
milestone operation to an earlier milestone operation only.
  Whether you can print confirmations.

 Whether you can print this work center when you are printing shop floor papers for the
production order.

Standard Text –

Standard text identifies a text that is frequently used to describe certain processes. Instead of
including a Operation Description you can assign a Standard text and the description will be
pulled in.

Not so important field -

Operation Description -

Operation Description, describes the operation or sub-operation. This text is copied into the first
line of the long text for the operation or sub-operation.

Entering an operation description is not mandatory, but the Routing would look descent and
informative.

Enter the Following in the Routing Operation Detail screen -

When you select the operation/s and press DETAIL  OPERATIONS on the Routing Operation
overview screen, then you would reach the operations screen. Where you can enter the following
information:

Base Quantity –

Enter a Base quantity for entering the standard values.

Standard Values –

The Standard value key assigned to the work center will bring in the parameter assigned to it and
you have to enter value for them. Entering the values for the standard value parameters is
important to run the scheduling/capacity/costing formulas.

For Example –

Work Center = FINISHING

Base qty = 1 Piece
Parameters Standard Values UOM Activity Types
Set up Time 15 MIN ZSET
 Machine Time 25 MIN ZMACH
STEAM 2 KWH ZSTEAM
ELECTRICITY 2 KWH ZELEC

Interoperation times -

Interoperation times are included in the operations to increase the total lead time. It behaves as
offset times.

Maximum Wait time – It is the longest time that may pass before the material is processed in the
next operation or order. In short it is an additional time between two operations. A wait time
would increase the operation lead time.

Minimum Wait time = It is the Shortest time that must pass before the material can be processed
in the next operation or order. In short it is an additional time between two operations. A wait
time would increase the operation lead time. Scheduling is always based on the minimum wait
time.

Standard Queue time = Time an order normally waits at the work center before it is processed. If
the lead time of an operation must be reduced, the system can shorten the standard queue time as
far as the minimum queue time. A queue time would increase the operation lead time.

Minimum Queue time = Shortest queue time an order waits at the work center before it is
processed. If the lead time of an operation must be reduced, the system can shorten the standard
queue time as far as the minimum queue time. A queue time would increase the operation lead
time.

Standard Move time = Time normally needed between the current operation and the next one for
the move from one work center (location group) to another. Move time does not increase the
operation lead time but increases the total lead time of the order.

Minimum Move time = Shortest time needed between the current operation and the next one for
the move from one work center (location group) to another. Minimum move time from one
operation to other is used if you are applying reduction strategies. Move time does not increase
the operation lead time but increases the total lead time of the order.

Note – Normally consultants don’t use the interoperation times, but if you insist you can do so. If
it is a client requirement I would just use the move time which would not play around with the
operation lead time but will just increase the total order processing lead time.

& if you are confused on what is min and max and standard times just have the same values in
both the fields.
Reduction strategies - Also there is really no need to use reduction strategies in the operations
(which would complicate lead time calculations).

Splits –

An operation is split if it is carried out on several machines or by several persons at the same
time (see figure). This is only used in Routings and not in Recipes.

Splitting an operation has the following effects on the operation dates:

 The processing time/execution time becomes shorter.

 Setup and teardown must be carried out more than once for the operation.

If you want to use splits you should select the check-box indicator called – “Required Splitting”.

If you are using splits then the scheduling generation formula in the work center should be
divided by the number of splits you enter here.

Note – When you are using Splits in a Routing, you can also mention a minimum processing
time if you don’t want the scheduling formula to reduce your total operation processing time
(due to division by the number of splits) below a certain minimum processing time value.

Note – I haven’t seen many consultants use this. You can leave this field alone.

Overlapping –

Overlapping reduces the total lead time by starting the processing of the next operation before
the current operation is finished. It does this by the use of minimum send ahead quantity after
which the overlap should start and minimum overlap time.
Continuous Flow overlaps – When such overlap is triggered between 2 operations and both the
operations are set for “continuous flow overlap”, the system calculates the lead times of both the
operations individually after the overlap is complete and changes the lead time of the operation
with the lowest lead time of the two to the lead time of the operation of the maximum lead time.
In other words if there are 2 operations, 0010 has lead time 1 hr and operation 0020 has lead time
2 hrs, operation 0010 will adopt the lead time of the operation number 0020.

Note – When you are implementing fresh at an organization, it becomes too complicated in
introducing overlapping and splitting. You can do so slowly once you have implemented SAP
and the users have become proficient enough (may be 2-3 years after go-live).

External Operation Processing –

When you are sending out an operation or sub operation for external processing to an external
contractor, it also means that you are just send a partially finished header material to the
subcontractor. Thus if you have provided all the purchase related information in the operation
detail – external processing section, the system will create a Purchase Requisition (PR) for the
operation (the PR is not created for a material code but it is created for a text of the operation);
this may seem odd as there would be no Material code on the PR.

The following information is mandatory for external processing –

 It is also mandatory for you to maintain a Control key for the operation or Sub operation
that allows “external processing”.

 The components allocated to such subcontracting operation are assumed to be sent to the
external vendor for processing. There can be a situation where some of the components
which are allocated to the operation are not being sent to the vendor. In such as case you can
predefine such components which are to be sent to the vendor with Material Provision
indicator = “L” in the BOM  Item  Status Long text screen or You can do so in the
“Component Allocation screen” by choosing Extra  BOM and assign a value = L in the
material provision indicator for those components to be moved to the vendor. (L– to be
provided to the vendor)

 Create and assign a Purchase info record for a subcontracting type for a particular vendor
and with a correct purchasing organization. This Purchase info record should not be created
for a material code but can be created for a material group or just directly enter the sort
string, material group, planned delivery time for purchasing to identify the vendor while
creation of the PR. You can also define a net price, price unit to make things easier for the
purchase order creation.

Scrap Percentage in the Operation detail – General Data Section

A Predefined percentage scarp is assigned for the operation, if you know a fixed percentage by
which production at the operation is reduced.

The Scarp percentage reduces the production order quantities that is supposed to be produced at
the operation; thus transferring a reduced amount to the next operation. Scheduling, capacity
requirement generation and costing is affected proportionately for the operations involved.

User Specific fields –

User defined fields are configurable. You can use user defined fields as process or production
specific information or you can use them as parameters in scheduling, capacity or costing
formulas since we have only 6 parameters possible in the work center standard value key. User
defined fields can be used in operations and sub-operations.

These configurable fields are placed under a field Key that acts as place holder for these user
defined fields. The formats of these fields are given below:

 Up to four general fields for any text: You can use them to store information about
people responsible, substitutes or telephone numbers, for example.

 Up to two quantity fields: You can assign additional formula parameters to the quantity
fields in the field key. With the help of formula parameters you can use the values of the
quantity fields in work center formulas, to calculate processing times, capacity requirements
and costs. In addition there is also a field for the unit of each quantity field. Default values
and their units which you have maintained in Customizing for formula parameters are
transferred, but you can change this data. If you have entered data in the quantity fields and
then change the field key, the old values remain unchanged.

 Up to two value fields: In addition there is also a field for the unit of each value field.

 Up to two date fields: Here you can enter internal start dates, for instance.

 Up to two checkboxes: You can use these to indicate whether an operation is to be included
in evaluations in the Info System, for instance.

Enter the Following for Component Allocation to Routing/Recipe -

The Routing operations are assigned with BOM components so that:

a) Backflush – Components which are marked as backflush are supposed to be

issued automatically to the Production order at the time of Order confirmations.
 Thus all the components which are marked as backflush should be assigned to
respective operations.

b) Requirement date – If components are allocated to an operation, the system

can derive for you a requirement date of the component for the production order.
This requirement date can help the material’s management team and the shop
floor operator to make the raw material available on the operation start date.

Note - If component are not allocated to the operations, then the SAP automatically allocates all
the BOM components to the first operation. This also means that all the backflush materials
would be automatically issued when you confirm the first operation. And this also means that all
the raw materials would be available for production on the start date of the first operation.

Method: To Allocate component to the operations, you have to press the "CompAlloc" Button or
Use the path
in the Operation Overview or Operation detail screen - Goto >>> CompAlloc Gen or
CompAlloc Optn.

Select the components and press "New Assignment" >>> A Pop-up Box will open up, which will
ask you to
enter the Opertion number to which you would want to assign the components to.

See the Screen shot below:

Enter the Following for Material Allocation to Routing/Recipe -

SAP Provides you with a facility to add header materials to the created Routing or Recipe (task
list). In other words, you can just create one Routing/Recipe for one material and then go on
assigning header materials to the task list; this will indirectly mean that the task list which was
applicable for the original material is now applicable for the header materials assigned as well.

Assigning materials to a task list extends the task list to the other materials as well provided they
also have exactly the same process of manufacturing, going through the same flow of operations.

Method: You can press the Material Assignment Button in the Routing/Recipe Header Screen,
which you open up a pop-up box that allows you to enter the material codes and the plant code
(of the materials) to which you want to extend the task list to.

See the Screeshot below for further explaination:

Saving the Task list -

Saving the task list at the end would generate a Routing Group Number for the Routing Group.
Even saving the recipe at the end would generate a Recipe Group Number.

Note: If you have not assigned an external Routing Group Number in the beginning (in the
selection screen), then the system generates the Routing Group Number, which is an internally
generated number.

See the ScreenShot below and notice the Group Number at the bottom of the Screen:
Sample Questions

1. What is the difference between a operation-related and order-related confirmation?

a) Order confirmation is a confirmation of the entire order at order header level and an Operation
confirmation allows you to confirm an order step by step.
b) Order confirmation is a confirmation of the entire order before sending to production and
operation
confirmation is a step by step confirmation of production order
c) Order confirmation is partial confirmation of the order and operation confirmation is automatic
final
confirmation of the order
d) Order confirmation requires a goods receipt, operation confirmation does not require a goods
receipt

Answer: a

There are various procedures for confirmation in SAP ECC. Each procedure implements different
requirements that a company may have. Depending on the application, one or more procedures may be
used.
The procedures must be used to selected to suit the methods of organization within your company and
the
allowed workload.

For the most part, the two main types are operation-related and order-related confirmations. Order
confirmation is a confirmation of the entire order at order header level. An operation confirmation
allows you to
confirm an order step by step. For this type of confirmation, there are various procedures available. You
can
carry out a confirmation for an order only if no confirmations have already been entered for operations.

Each confirmation is entered with a status (partial confirmation, final confirmation, automatic final
confirmation).

Once an order has been confirmed, follow-on functions are performed. The confirmed quantity, the
status
RUCK and actual costs are written to the production order.

When an operation is confirmed, an automatic goods issue is posted on the basis of the quantity that has
been
assigned the material components (backflush). These material components must be prepared for
backflush
posting and also be provided for use at the work center.

When you confirm the last operation that must be confirmed (or for the operation where this posting is
defined
in the control key), an automatic goods receipt is posted.

Capacity reduction is carried out either in proportion to the quantity or activity. If a scrap or rework
quantity is
confirmed, a quantity notification can be generated automatically.

1. What is the difference between a operation-related and order-related confirmation?

a) Order confirmation is a confirmation of the entire order at order header level and an
Operation
confirmation allows you to confirm an order step by step.
b) Order confirmation is a confirmation of the entire order before sending to production and
operation
confirmation is a step by step confirmation of production order
c) Order confirmation is partial confirmation of the order and operation confirmation is
automatic final
confirmation of the order
d) Order confirmation requires a goods receipt, operation confirmation does not require a
goods receipt

Answer: a
There are various procedures for confirmation in SAP ECC. Each procedure implements
different
requirements that a company may have. Depending on the application, one or more procedures
may be used.
The procedures must be used to selected to suit the methods of organization within your
company and the
allowed workload.

For the most part, the two main types are operation-related and order-related confirmations.
Order
confirmation is a confirmation of the entire order at order header level. An operation
confirmation allows you to
confirm an order step by step. For this type of confirmation, there are various procedures
available. You can
carry out a confirmation for an order only if no confirmations have already been entered for
operations.

Each confirmation is entered with a status (partial confirmation, final confirmation, automatic
final confirmation).

Once an order has been confirmed, follow-on functions are performed. The confirmed quantity,
the status
RUCK and actual costs are written to the production order.

When an operation is confirmed, an automatic goods issue is posted on the basis of the quantity
that has been
assigned the material components (backflush). These material components must be prepared for
backflush
posting and also be provided for use at the work center.

When you confirm the last operation that must be confirmed (or for the operation where this
posting is defined
in the control key), an automatic goods receipt is posted.

Capacity reduction is carried out either in proportion to the quantity or activity. If a scrap or
rework quantity is
confirmed, a quantity notification can be generated automatically.
2. What are the options for the material staging from a warehouse management system?
(more than one
option is correct)

a) Create parts are ordered manually

b) Release order parts are ordered manually
c) Pick parts are provided for the production order in exactly the same quantity as the
requirements quantity
d) Release order parts are ordered automatically

Answer: a, b &c

For the material staging from a warehouse management system, there are three options for the
production
order. These options are described here:

Pick parts are provided for the production order in exactly the same quantity as the requirements
quantity

Create parts are ordered manually when a crate is almost empty. Typical examples are small parts
in
containers such as screws, nails…..

Release order parts are ordered manually: The required quantity is calculated using the targe
quantities of the
components in the selected released orders. Typical examples are laminates, paints

3. Consider a product scenario where there is high product stability, high repetition rates, and
low product
complexity. What type of manufacturing do you suggest?

a) Mass manufacturing
b) Bulk manufacturing
c) Repetitive manufacturing
d) Order based manufacturing

Answer: c

To allow the material to be used in repetitive manufacturing, you set the Repetitive Mfg indicator
in the material
master (in the MRP view). This means that you can use the various production versions of this
material for
repetitive manufacturing (that is, you can set the indicator Repetitive Mfg allowed for version in
the production
version.)

The BOM defines the planned material consumption for the components. When you backflush
components in
repetitive manufacturing, you can define the issue storage location from which components are
to be
backflushed in the status/long text of the BOM item (Production storage location field).

Production lines are usually created as simple work centers in the ECC system. In the work
center, you define
the availability of the production line. The production line created at the work center is entered in
the Production
line field in the production version. This same work center is specified in the single operation of
the routing.
Production lines that have more than on work center can be represented in a line hierarchy.
In repetitive manufacturing, the routing define the production rate (quantity per time unit) used
to produce
materials on production lines. The production quantities and their capacity requirements are
scheduled and
calculated respectively according to the production rate.

The routing therefore forms the basis of lead time of scheduling. In repetitive manufacturing
often have only one
operation. The total production rate of the line is specified in this operation. It define how many
materials per
unit can be produced on this production line. In the singe operation, you enter the production line
as the work
center.

4. A distinctive feature of you company is a relatively constant consumption of materials.

For this reason,
you want to process the material flow to the work centers in production of your company in an
event-drive
manner. Is there any possibility in SAP?

a) No this is not possible

b) SAP-SCM KANBAN
c) SAP-SCM REPLENISHMENT
d) SAP-SCM PRODUCT STABILITY

Answer: b

The KANBAN procedure can be used together with all other production types.
In KANBAN, the material flow is organized using containers that are kept directly at the
appropriate work
centers in production. Each contains the quantity of material that work center personnel need for
a certain
period of time. As soon as a container is emptied by the demand source, replenishment is
initiated in
KANBAN. The supply source of the required material can be another place in production, an
external vendor or
a warehouse.

The demand source can use material from other containers until the actual container returns to
full. The aim is
to control the replenishment process in production itself and to reduce the manual posting efforts
for personnel
as much as possible. This self-management process and the fact that replenishment elements are
created
close to time they are actually consumed means that stocks are reduced and lead times are
shortened
(replenishment is only triggered when a material is actually required and not before).

With KANBAN material is staged where it is used and is always available in small material
buffers. This means
that material staging does not need to be planned; instead, material that is consumed is
replenished
immediately using KANBAN.

By using KANBAN with the SAP ECC system, you can automate the transfer of replenishment
data. For
example, scanning the barcode on a KANBAN card is sufficient to transfer the data required for
procurement
and to post the goods receipt when the material is received.

5. What is the industry standard that uses COM/DCOM technology to define manufacturer-
independent
interfaces for the industrial usage area?
a) SAP COM/COM model
b) SAP OPC
c) SAP OCOM
d) SAP OLE

Answer: b

SAP OPC Data Access (SAP ODA) enables the reading and writing of data points and event
using the OPC
server of the ECC system. These functions are also available with the production order
environment.

OPC stands for “OLE for Process Control and Openness, Productivity and Connectivity, and is
an industry
standard that uses COM/DCOM technology to define manufacturer-independent interfaces for
the industrial
usage area. The OPC standard was designed especially for the process control level.

OPC servers enable you to access different data sources (for example, process control systems,
memory
programmable controls, temperature sensors) and thus provide process data which can be
requested by OPC
clients.

SAP ECC with the component SAP ODA is an OPC server and client that can communicate with
OPC
servers. This considerably simplifies the data exchange between applications. OPC servers and
OPC clients
are currently PC-based systems based on which Microsoft operating system runs.

6. As a production manager how do you enable process operations parallel to and

independent of other
operations?
a) Parallel sequences
b) Successor relationships
c) Control sequences
d) Linked sequences

Answer: a

The parallel sequence enables you to process operations parallel to and independent of other
operations. You
can copy both parallel and alternative sequence types from the routing to the order. Parallel
sequences are
linked to the standard sequence through predecessor/successor relationships. Parallel sequences
are a
special form of overlapping operations. This gives rise to network-like structures.

Order scheduling inserts operation floats according to the alignment key specifications.

In mechanical engineering for assemblies involving the production of individual components,

inspection
processes, and preparatory and closing operations.

In the chemical industry for analysis processes that are carried out in parallel to the production
process.
7. What is the difference between regenerative planning and net change planning?
a) Planning all materials from the planning file, you can only plan materials for which
planning file exists.
b) Planning all materials bases on demand, you plan all materials bases on previous
production
c) Planning all materials parallel, planning all materials from previous planning file
d) Planning all material online , planning is carried out as a background job

Answer: a

Regenerative planning means you plan all materials from the planning file. Net change planning
means that you
can only plan materials for which planning file exists. This means that they have undergone a
change relevant to
MRP within a restricted planning horizon. You can only generate planning proposals within the
horizon.

Planning is carried out online or as a background job.

Creation & Conversion of Planned Order in ECC

8. What is the report that collects all important information about a work center or a
hierarchy of work
centers of a shift?
a) Shift report
b) Shift transfer report
c) Transfer report
d) Shirt work center report

Answer: a

The shift report is a document that is generated manually by the production scheduler once data
capture for the
preceding shift has been completed. The shift report is used for collecting all important
information about a
work center or a hierarchy of work centers of a shift. The shift report thereby facilitates shift
transfer.

The shift report consists of the following parts:

• Header data and company logo
• Shift notes
• Confirmations (including activity confirmations and goods movements)
• Maintenance notifications
• Graphical evaluations
In Customizing for the shift report, you define which information you want to be part of the shift
report and which
layout you want to used for the document.

You cannot change the shift report manually.

9. What is the indicator that controls whether a valuated or non-valuated goods receipt
should be made
and on what are the criteria that this indicator is dependent upon? (more than one option is
correct)
a) The stock type indicator
b) The GR valuation indicator
c) Material type of the product and account assignment
d) Demand and Supply

Answer: b & c

The Goods receipt indicator defines whether a goods receipt can be posted once production has
been
completed.

The proposal for storage of goods receipt comes from material master (screen AV). The stock
type indicator
defines the stock to which receipts from production are to be posted. This can be the unrestricted
use, blocked
stock or stock in quality inspection. The indicator can be activated at different points: in the
material master
screen (screen AV), in a production order or at the time of goods receipt.

The GR valuation indicator controls whether a valuated or non-valuated goods receipt should be
made. This
indicator depends on the material type of the product and the account assignment of the
production order.

The Delivery Completed indicator specifies whether an order is regarded as closed from the
point of view of
goods receipt. This means that no further goods receipt will be expected for this order.
10. Settlement in product cost controller is based on? (more than one option is correct)
a) Period-oriented
b) Costs of the product cost controller
c) Order settlement
d) No settlement rule

Answer: a & b

In product-related costs object controlling, all costs are debited and credited to a product cost
controller.
Individual production orders do not have cost segments or settlement rules. All functions in
Production and
Materials Management that are relevant to costs( material withdrawal, confirmation, goods
receipt for the
production order and goods receipt from production) are executed on the basis of the production
order.

All controlling functions (process cost allocation, overhead allocation, WIP and variance
calculation, settlement)
are carried out at the end of the period on the basis of product costs collector. Thus, the relevant
values are
determined.
The current costs for a period comprise values for:
• The material quantities delivered for the period according to the valuation control of the
goods receipt.
• The unfinished product s (WIP) according to the status of the operations confirmed.
• Variances (such a scrap)
• Settlement is a period-oriented based on the costs of the product cost collector. In this case,
there is no
order settlement for the individual production order. In this case the production order does not
have a
settlement rule.
• It makes senses to use product-related COC for the following:
• Make-to-stock production
• Repetitive manufacturing and mass manufacturing
• Sales order controlling only in Profitability Analysis

More Questions? Have a look at:

SAP Certified Application Associate - Production Planning &
Manufacturing with
SAP ERP 6.0 Questions, Answers & Explanations
2. What are the options for the material staging from a warehouse management system?
(more than one
option is correct)

a) Create parts are ordered manually

b) Release order parts are ordered manually
c) Pick parts are provided for the production order in exactly the same quantity as the
requirements quantity
d) Release order parts are ordered automatically

Answer: a, b &c

For the material staging from a warehouse management system, there are three options for the
production
order. These options are described here:

Pick parts are provided for the production order in exactly the same quantity as the requirements
quantity

Create parts are ordered manually when a crate is almost empty. Typical examples are small parts
in
containers such as screws, nails…..

Release order parts are ordered manually: The required quantity is calculated using the targe
quantities of the
components in the selected released orders. Typical examples are laminates, paints

3. Consider a product scenario where there is high product stability, high repetition rates, and
low product
complexity. What type of manufacturing do you suggest?

a) Mass manufacturing
b) Bulk manufacturing
c) Repetitive manufacturing
d) Order based manufacturing
Answer: c

To allow the material to be used in repetitive manufacturing, you set the Repetitive Mfg indicator
in the material
master (in the MRP view). This means that you can use the various production versions of this
material for
repetitive manufacturing (that is, you can set the indicator Repetitive Mfg allowed for version in
the production
version.)

The BOM defines the planned material consumption for the components. When you backflush
components in
repetitive manufacturing, you can define the issue storage location from which components are
to be
backflushed in the status/long text of the BOM item (Production storage location field).

Production lines are usually created as simple work centers in the ECC system. In the work
center, you define
the availability of the production line. The production line created at the work center is entered in
the Production
line field in the production version. This same work center is specified in the single operation of
the routing.
Production lines that have more than on work center can be represented in a line hierarchy.

In repetitive manufacturing, the routing define the production rate (quantity per time unit) used
to produce
materials on production lines. The production quantities and their capacity requirements are
scheduled and
calculated respectively according to the production rate.

The routing therefore forms the basis of lead time of scheduling. In repetitive manufacturing
often have only one
operation. The total production rate of the line is specified in this operation. It define how many
materials per
unit can be produced on this production line. In the singe operation, you enter the production line
as the work
center.

4. A distinctive feature of you company is a relatively constant consumption of materials.

For this reason,
you want to process the material flow to the work centers in production of your company in an
event-drive
manner. Is there any possibility in SAP?

a) No this is not possible

b) SAP-SCM KANBAN
c) SAP-SCM REPLENISHMENT
d) SAP-SCM PRODUCT STABILITY

Answer: b

The KANBAN procedure can be used together with all other production types.

In KANBAN, the material flow is organized using containers that are kept directly at the
appropriate work
centers in production. Each contains the quantity of material that work center personnel need for
a certain
period of time. As soon as a container is emptied by the demand source, replenishment is
initiated in
KANBAN. The supply source of the required material can be another place in production, an
external vendor or
a warehouse.

The demand source can use material from other containers until the actual container returns to
full. The aim is
to control the replenishment process in production itself and to reduce the manual posting efforts
for personnel
as much as possible. This self-management process and the fact that replenishment elements are
created
close to time they are actually consumed means that stocks are reduced and lead times are
shortened
(replenishment is only triggered when a material is actually required and not before).

With KANBAN material is staged where it is used and is always available in small material
buffers. This means
that material staging does not need to be planned; instead, material that is consumed is
replenished
immediately using KANBAN.

By using KANBAN with the SAP ECC system, you can automate the transfer of replenishment
data. For
example, scanning the barcode on a KANBAN card is sufficient to transfer the data required for
procurement
and to post the goods receipt when the material is received.

5. What is the industry standard that uses COM/DCOM technology to define manufacturer-
independent
interfaces for the industrial usage area?
a) SAP COM/COM model
b) SAP OPC
c) SAP OCOM
d) SAP OLE

Answer: b

SAP OPC Data Access (SAP ODA) enables the reading and writing of data points and event
using the OPC
server of the ECC system. These functions are also available with the production order
environment.

OPC stands for “OLE for Process Control and Openness, Productivity and Connectivity, and is
an industry
standard that uses COM/DCOM technology to define manufacturer-independent interfaces for
the industrial
usage area. The OPC standard was designed especially for the process control level.

OPC servers enable you to access different data sources (for example, process control systems,
memory
programmable controls, temperature sensors) and thus provide process data which can be
requested by OPC
clients.

SAP ECC with the component SAP ODA is an OPC server and client that can communicate with
OPC
servers. This considerably simplifies the data exchange between applications. OPC servers and
OPC clients
are currently PC-based systems based on which Microsoft operating system runs.

6. As a production manager how do you enable process operations parallel to and

independent of other
operations?
a) Parallel sequences
b) Successor relationships
c) Control sequences
d) Linked sequences

Answer: a

The parallel sequence enables you to process operations parallel to and independent of other
operations. You
can copy both parallel and alternative sequence types from the routing to the order. Parallel
sequences are
linked to the standard sequence through predecessor/successor relationships. Parallel sequences
are a
special form of overlapping operations. This gives rise to network-like structures.

Order scheduling inserts operation floats according to the alignment key specifications.

In mechanical engineering for assemblies involving the production of individual components,

inspection
processes, and preparatory and closing operations.

In the chemical industry for analysis processes that are carried out in parallel to the production
process.
7. What is the difference between regenerative planning and net change planning?
a) Planning all materials from the planning file, you can only plan materials for which
planning file exists.
b) Planning all materials bases on demand, you plan all materials bases on previous
production
c) Planning all materials parallel, planning all materials from previous planning file
d) Planning all material online , planning is carried out as a background job

Answer: a

Regenerative planning means you plan all materials from the planning file. Net change planning
means that you
can only plan materials for which planning file exists. This means that they have undergone a
change relevant to
MRP within a restricted planning horizon. You can only generate planning proposals within the
horizon.

Planning is carried out online or as a background job.

Creation & Conversion of Planned Order in ECC

8. What is the report that collects all important information about a work center or a
hierarchy of work
centers of a shift?
a) Shift report
b) Shift transfer report
c) Transfer report
d) Shirt work center report

Answer: a

The shift report is a document that is generated manually by the production scheduler once data
capture for the
preceding shift has been completed. The shift report is used for collecting all important
information about a
work center or a hierarchy of work centers of a shift. The shift report thereby facilitates shift
transfer.

The shift report consists of the following parts:

• Header data and company logo
• Shift notes
• Confirmations (including activity confirmations and goods movements)
• Maintenance notifications
• Graphical evaluations
In Customizing for the shift report, you define which information you want to be part of the shift
report and which
layout you want to used for the document.

You cannot change the shift report manually.

9. What is the indicator that controls whether a valuated or non-valuated goods receipt
should be made
and on what are the criteria that this indicator is dependent upon? (more than one option is
correct)
a) The stock type indicator
b) The GR valuation indicator
c) Material type of the product and account assignment
d) Demand and Supply

Answer: b & c

The Goods receipt indicator defines whether a goods receipt can be posted once production has
been
completed.

The proposal for storage of goods receipt comes from material master (screen AV). The stock
type indicator
defines the stock to which receipts from production are to be posted. This can be the unrestricted
use, blocked
stock or stock in quality inspection. The indicator can be activated at different points: in the
material master
screen (screen AV), in a production order or at the time of goods receipt.

The GR valuation indicator controls whether a valuated or non-valuated goods receipt should be
made. This
indicator depends on the material type of the product and the account assignment of the
production order.

The Delivery Completed indicator specifies whether an order is regarded as closed from the
point of view of
goods receipt. This means that no further goods receipt will be expected for this order.
10. Settlement in product cost controller is based on? (more than one option is correct)
a) Period-oriented
b) Costs of the product cost controller
c) Order settlement
d) No settlement rule

Answer: a & b

In product-related costs object controlling, all costs are debited and credited to a product cost
controller.
Individual production orders do not have cost segments or settlement rules. All functions in
Production and
Materials Management that are relevant to costs( material withdrawal, confirmation, goods
receipt for the
production order and goods receipt from production) are executed on the basis of the production
order.

All controlling functions (process cost allocation, overhead allocation, WIP and variance
calculation, settlement)
are carried out at the end of the period on the basis of product costs collector. Thus, the relevant
values are
determined.

The current costs for a period comprise values for:

• The material quantities delivered for the period according to the valuation control of the
goods receipt.
• The unfinished product s (WIP) according to the status of the operations confirmed.
• Variances (such a scrap)
• Settlement is a period-oriented based on the costs of the product cost collector. In this case,
there is no
order settlement for the individual production order. In this case the production order does not
have a
settlement rule.
• It makes senses to use product-related COC for the following:
• Make-to-stock production
• Repetitive manufacturing and mass manufacturing
• Sales order controlling only in Profitability Analysis
1. Is it possible to attach a drawing for a material to BOM and what is the process?

Ans: Yes, it’s possible to attach a drawing for a material to BOM and coming to the process
create a document using Transaction Code CV01N Create Document and attach the drawing in
that document. Then the system will automatically generate a document number and then assign
this document in the BOM with item category D.

2. For SAP PP module what are the cut over activities followed?

Ans: The following are some of the cut over activities that are to be followed for PP Discrete
Manufacturing: Production Planning/ Master Data: In PP only master data shall be migrated to
SAP; there is no master data in the first stage. The elements that are related to PP in the master
data are Bill of Materials, Routing and Work Centers.

Transaction Data: As per the cut off date, ideally there should not be any work in process, all the
open production orders should be closed and semi finished goods would be dismantled and
should be added to Raw materials. This strategy should be followed for all production order
where lead time to complete the production order is not large.

Since, the production orders are for longer duration and it is not possible to dismantle the product
and add it to inventory, following can be the strategy to migrate the data to SAP It create a
material master for the work in process and set the standard price as the cost incurred for that
product (Work in process), create a bill of material, which will be used only for this production
order including this material and other materials still to be consumed. It creates Routing for rest
of the production process. Bring the work in process material into inventory as of the cut off
date. It creates the production orders in SAP for the Work in process and issue materials to
production order.

3. What is the procedure to insert an inspection checkpoint at the end of an operation?

Ans: The procedure to insert an inspection is by defining it in the process sample, assign
inspection type 03 in the Material Master then create MIC and assign them in the Routings. Then
the system automatically generates the Inspection Lots.

4. Explain me why work scheduling view is required for semi finished and finished
products?

Ans: Work Schedule view is required for semi finished and finished products because all the
details are mentioned in MRP views and they are also available for production for scheduler and
production scheduler profile in this view, if not maintained conversion of planned order to
production will not be possible.

5. What is Batch?

Ans: The partial quantity of material managed separately from other quantity of same material in
stock is called Batch.

6. How to delete a group of products that are created in Screen MC84 and group of
products?

Ans: The product group is created as a material master record with material type PROD and this
record is deleted in SARA and the members deleted in the product group and then archive the
product group in transaction SARA. Object MM_MATNR.

7. What is the procedure for MPS in Back ground online when it was run for a plant either
ways?

Ans: MPS in Back ground online was run for a plant in either ways it would run MPS for a
single material/plant, if it does not work it need to run a planning file and a consistency check
first, transaction OMDO and MDRE respectively it require to set up two jobs to do it but it is
straight forward, once it was done this set up the back ground job MPS to run and do it in
NEUPL first time round and then change to NETCH after that.

8. What is the output of MPS run?

Ans: MPS is run to plan the materials which are of ‘A’ type in the abc analysis (80% dollar
value) that have to be planned before. MPS is also a type of MRP only in which components just
below the materials on which MPS run is taken place, are planned.
9. List some components of BOM?

Ans: Components of BOM are List of Components, Quantity of Components and Unit of
Measure of Components.

10. How does SAP know that an operation has components as indicated by the component
allocation indicator?

Ans: Component allocation is done by routing maintenance or BOM maintenance for the
assembly. This is master data maintenance. As soon as a PO is created, the master data is read
into the PO.