(PP) module Automotives Building Materials Chemicals Engineering Construction and Operations Fabricated materials Power plant Construction Healthcare Utilities Services Apparel and Footwear Discrete manufacturing Food and Beverages
Industry Sectors for Production Manuf. Type Strategy Example Discrete MTS MTO ETO Standard Assemblies Custom Req. Material Construction Repetitive MTS Spare Parts Process Industry MTS MTO Foods, Beverages & Pharmaceuticals Production Planning Overview Agenda Review of Materials Management PP Organization Bills of Material Work Centers Routings Material Requirements Planning Agenda (Contd) Processing Planning Results Production Order Management Capacity Planning and Leveling Product Cost The Production Cycle Sales and Operations Planning Master Planning and Demand Management Master Production Scheduling Review of MM Organization Material Type e.g. Raw material, semi-finished good, service, trading good, finished product Controls access security Determines how material is procured Controls how material movements affect financial accounts Linked to material number ranges Controls what fields appear on what screens Industry Sector Controls what fields appear on what screens Unit of Measure e.g. Piece, box, crate, pallet, Each, KG, Litre Different parts of the business can measure quantities in different units Multi-Lingual Texts Material Master Data Material Master Data General Data St. Loc. Specific Data Plant Specific Data Sales Specific Data Material Master Data applicable throughout the client e.g. Material number Description Units of measure Weight Volume Product hierarchy Data dependent on sales organization and distribution channel e.g. Delivering plant Sales text Sales units Shipping data Division Data relevant for planning and production e.g. MRP profile Production costs Planning data Valuation Data referring to storage and inventory management e.g. Quantities Special stock Warehouse attributes Material Types in the Standard SAP Material Type DIEN ERSA FERT HALB HAWA HIBE LEER NLAG ROH VERP WETT PROD Service Spare Part Finished Product Semi-finished Product Trading Good Operating Supply Empty Containers Non stock Item Raw Material Packaging Competitor Product Production Resources/ Tools Description Product Data Engineering Design Sales
Production Stock Finance
Purchasing Master data is a key piece of information in the system Master data can be seen from a number of views Each view can correspond to an SAP module Each view has a number of information screens Each view belongs to an org unit within the business One product may have multiple plant and sales views, one for each plant or sales area Master Data Views Engineering Design Sales
Production Stock Finance
Purchasing Examples of How Data is Used Texts copied to purchase orders Maintains stock levels by plant, storage location, and batch Data used to calculate MRP lead times Controls customer ordering rules for material Controls which General Ledger Account is updated Material description used in reporting Product Data Production Planning Production Planning Basic Data Routings Work Centers Materials Capacities Inspection Plans Production Facilities Bills of Material PP Basic Data Production Resources/Tools F06010 Production Planning Functionality Provides overviews from rough-cut through to detailed shop floor planning PP-CRP Capacity Requirements Planning Controls production costing PP-PC Product Costing Generation of order proposals based on requirements defined by PP-SOP PP-MRP Material Requirements Planning Generates data used for processing orders, e.g., dates, costs and resources PP-SFC Production Order Control Coordination and planning of production activities PP-SOP Sales and Operations Planning Monitoring / analyzing on-going production activities / data PP-IS Shop Floor Information System Products, Production Processes and Resource Requirements PP-BD Basic Data for Production Bills of Material Bills of Material Simple BOM Variant BOM Multiple BOM Simple BOM representing single material Similar materials represented by variants on one BOM BOM representing a material which can be made up of multiple compositions e.g. different components and quantities
Bill of Material Validity Area of Validity The same Bill of Material can be allocated to several plants. Before you can allocate the BOM to a different plant, the material must exist at the new plant, the unit of issue on the BOM item must be the same. Validity Period (Valid from/to dates) Becomes effective with the valid from date The validity date is determined by the system automatically to be either the next effective from date, or 12/31/1999. A A
B C B D X----------------------------------------------------------->>>> from 1/1/95 from 12/31/95 to 12/30/95 to 12/31/99 BOM Scrap Data Assembly Scrap yield or process scrap resulting from the assembly of components into a finished or sub- assembly. It is used for calculating material used in an assembly. MRP increases the material requirements for all components contained in the assembly. Example: Quantity to produce 1000 units with a 1% assembly scrap = 10 units Component Scrap considers component loss before the component is used in an assembly. For example, shrinkage during storage. The scrap refers only to the component in the assembly. When the BOM is exploded, MRP increases the quantity of the component. Example: Component Qty of 1000 units with a 5% component scrap would need 1050 units required. Bill of Material Glossary BOM Category categorizes BOMs to represent different objects; for example: Material BOM -- structure of products manufactured Equipment BOM -- structure of equipment for plant maintenance Document BOM -- structure of documents such as drawings (3.0) BOM Group is a collective number for all BOMs in a group which allows for one or several similar products to be decribed under one number. All Alternatives of a multiple Bill of Material All variants of a variant Bill of Material BOM Usage special view of the BOM which represents a specific area of the company in which the BOM is used; for example, Engineering, Production, Costing, Sales, Plant Maintenance. The BOM Usage allows different views to exist without separate BOMs for each usage. Technical Type the system distinguishes BOMs according to whether they represent product variants or production alternatives. If you create a variant for the BOM, the system marks it as a Variant Bill . If there is more than one alternative for a material, the system marks the BOM as a Multiple Bill. Bill of Material Glossary BOM Validity Bills of Material are valid over an area and effectivity period. Area of Validity -- identifies which plants the BOM has been allocated to Validity Period -- identifies the from and to effectivity dates. The default to date is 12/31/9999 Item Category When you enter a new Bill of Material item, an item category must be assigned. It has important control functions such as: Screen selection Specific processing, such as material number required, negative values supported. The Item Category cannot be changed once set. It must be deleted and re-added. Sizes are maintained for variable-size items Item categories include: Stock Items -- material in stock as a component Non-stock Items -- material not stocked - with or without a material number Variable-size -- system calculates the quantity required using formulas PM Structure Item -- used with plant maintenance equipment Document Item -- used with Document BOMs Sub-Items are typically used to represent different installation points for partial quantities of an item. In assembling resistors on a printed circuit board, the installation points are described. There is no logic related to sub-items
BOM Structure BOM Header Item 10 Item 20 Item 30 Sub Item 10 Sub Item 20 Plant Assignment Validity Period Release Indicator Stock Items Non-stock Items Variable Size Items Document Items Text Items Additional component details e.g. installation points for components BOM Structure Product Component 2 Component 31 Component 32 Component 33 Component 3 (assembly) Component 1
By-product Document Part Class Components: Stock material Non-stock material Variable-sized item Text item Scrap/waste Variant Bills of Material Several similar products are represented in one bill of material Bike with Black Frame Handlebar Assembly Gear Assembly Bike with Red Frame Bike with Blue Frame Red Frame/Fork Assembly Blue Frame/Fork Assembly Chrome Forks Black Frame Red Frame Blue Frame Qty. for variant 1 Qty. for variant 2 Black Frame/Fork Assembly Multiple BOM A finished product can be manufactured using different methods of production with different components or component quantities Qty. for alternative 1 Qty. for alternative 1 Qty. for alternative 2 Alt 1 - Lot Size 1 to 100 Alt 2 - Lot Size 101 to 500 Alt 3 - Lot Size 501 to 1000 Qty. for alternative 2 Pigment 2 Production Variants Blue Paint Solvent Water Pigment 1 One material but with different combinations of component material based on production method BOM explosion Single-level Bill of Material Multi-level Bill of Material Summarized Bill of Material
BOM Reporting Component Where used Single-level Where used Multi-level Where used Summarized Where used C A B BOM Recursiveness E1 K1 B3 K2 E1 K3 Work Centers Assembly Line Machines People Production Line Capacity Requirements Planning Scheduling, Execution Times Costing Work Centers Work Centers Cost Center Work Center Hierarchy Plant 1 Production Assembly Assm Line 1 Assm Line 2 Work Center 1 Work Center 2 Fabrication Plant 2 Production Fabrication Mach = 10 hrs Labor = 8 hrs Mach = 6 hrs Labor = 10 hrs Mach=16 hrs Labor=18 hrs Work Centers and Routings Routing Operation 10 Operation 20 Operation 30 Work Center W1 Cost Center 100 Assembly Cost Centre 200 Work Center W2 Finishing Cost Center 200 Work Center W1 Cost Center 100 Assembly Work Center Category Work centers are allocated to different work center categories
The work center category is used to control the field and screen selection for work centers during work center maintenance.
Work Center Category Screen View
Statistical Work center Basic Data
Production Work Center Basic Data Default Values Capacity Values Scheduling Cost Center Assignment
Cost Center Assignment to Work
Center for Operation Costing Cost Center Oper 0010 Oper 0020 Oper 0030 Oper 0040 Routing with standard values Set Up (SET) Machine (MACH) Labor (LAB) Work Center with Activities during production Activity Rates Set Up $70.00 Mach $60.00 Labor $80.00 Overhead $70.00 Work Center Capacity Oper 0010 Oper 0020 Oper 0030 Oper 0040 Routing with standard values Set up Formula Machine Time Formula Teardown Formula Work Center Formulas Set up 1.0 hrs Machine 5.5 hrs Teardown .5 hrs Operation Std Values Work Center Schedule Use of Formulas in Work Centers Available Capacity at a Work Center 8 hrs 1 hr 7 hrs 1 hr 6 hrs Working Hours Break Time Working Hours less Breaks Planned Downtime Productive Working Hours Routings BOM Groups Production Master Data Materials and PRTs Bills of Material Routings Work Centers Routing Groups Cost Centers Components Allocated to Operations Item Category Material Type W/C Category Routing Structure Views Routing Operation 30 Operation 20 Operation 10 Work Centre: PP-ASSEM Control Key: - Time Tkts - Costing Operation Text: Pre-assemble frame Std Values: Lab:10 mins Mach:10 mins Materials Components BOM Process Resource Tool (PRT) Operation Operation types (Main) operation Sub-operation Sub-operation HierarchyCosting Completion confirmations Scheduling always takes place on the (main) operation level The control key defines whether completion confirmations and costing are carried out on the (main) operation level, or on the sub-operation level. Indicator: group operation sub-operation level combined operation (main) operation Operation / Sub-operation Operation 0010 Operation 0020 Sub Operation 0010 / 10 at Work Center A1 Sub Operation 0010 / 20 at Work Center A2 Sub Operation 0010 / 30 at Work Center A3 Schedule at Operation Level Useful when processing for operation 0010 occurs over multiple work centers Capacity Planning & Costing possible at Sub Operation Level Level 03
02
Sequence Categories Material Routing Group 01 Oper 10
Oper 20
Oper 30
Oper 40
Oper 50
Oper 60 Oper 10
Oper 15
Oper 20 Oper 40
Oper 50 Alternate Seq 0001 Parallel Seq 0002 Standard Seq 0000 Branch operations Return Operations Routing Types Standard Routing
1 Routing Group Routing Group Counter Material-Routing Allocations A routing alterative can be allocated to several materials. A material in a plant can be allocated to several alternatives. Routing Default Values Routing
Material Master Work Center Base Unit of Measure Planner Group Short Text Control Key Standard Values Activities Standards Text Key HR data External Processing Oper 0010 Oper 0020 Oper 0040 Oper 0050 Purch Reqn Purch Ord Vendor Proc Goods Rec Routing data copied to order including quantities and dates
Purchasing creates P.O.
At goods receipt, the operation is confirmed
Operation Lead Time Float Before Float After Oper 0010 Oper 0020 Oper 0030 Queue | Setup | Process | Teardown | Wait | Move Execution Time Interoperation Time Interoperation Time Operation Lead Time Routing Operation Sequences Standard Routing represents a standard sequence defining production procedure Parallel Routing includes processes which can be performed simultaneously to achieve time efficiencies Split Routing includes processes which can/must be split across a number of work centers Overlapped Routing defines process where one operation is to overlap with the following operation Parallel Operation Sequences Special form of overlapping Positioning the parallel sequence at the beginning or end of an operation Usage: for example in the chemical industry for analytical processes which run parallel to the production process Op. 10 Op. 20 Op. 20 Op. 30 Op. 90 Op. 40 Material Requirements Planning MRP Features MRP Lot sizing Order scheduling and generation Internal production and external purchasing Net requirements calculation Bill of Material Explosion Forecasting MRP Overview Overview Purchased Items MRP Purchasing Accounting Warehouse management system Goods receipt
Inventory management Valuation Goods Transfer issue posting Invoice receipt
Invoice verification Master data
Material Batches Vendors Customers : MRP: Reorder Point Planning Reorder Point Safety Stock Order Date Delivery Date Time Stock Purchasing Process Time Vendor Planned Delivery Time Desired Delivery Date Release Order Date Forward Scheduling for External Procurement Today Goods Receipt Process Time Forward scheduling used for reorder point material Daily Accumulation: Sales Orders Planned Individual Requirements Reservations Entries from Planning File Warehouse Stock + Open Order Proposals Shortages Order Proposal Net Change Planning Coverage calculation per requirement date MRP Types VB
VM
VV
PD
M0 Manual Reorder Point Planning: MRP produces order proposals when stock falls below a reorder point. The reorder point and safety stock levels are entered manually
Automatic Reorder Point Planning: The reorder point and safety stock level are calculated based on the forecast results
Forecast Planning The latest forecast is copied as requirements which are used to create order proposals
Deterministic Planning MRP produces order proposal(s) to match the exact quantity of the requirements based on independent and dependent demands
Master Production Scheduling Similar to PD but used for master schedule items Carrying Out the Planning Run Total Planning All materials in a given plant All materials are reviewed by MRP regardless of activity
Only the materials in a plant that have undergone a change relevant to planning since the last planning run (net change planning) Planning Interval Limiting the MRP Planning Interval Time Planned requirements and supply order receipts example: 100 days MRP Planning Horizon MRP List MRP Controller Group of Materials for which controller is responsible Controllers MRP Listing Goods Receipt Goods Issues MRP Order Proposals and Planner Messages from MRP Planning run.
Planner can drill down to review material movement activity Stock Overview The Stock Overview shows the stock position for all locations within a Company/Plant/Storage Location/Batch for all dispositions of material Total Company 100 20 15
Plant US01 Total 100 20 15
SLoc 0001Total 75 Batch 01 Total 45 Batch 02 Total 30
SLoc 0001Total 25
Unrestricted Quality Ins Reserved On Order ... Stock Requirements List Date MRP Element Supply/Demand Ref EM Quantity Available
01/01 STOCK 100 01/08 ORDER Sales Order 25 75 01/15 PL ORD 1000 120 05 100 175 02/01 -----------------------------------------------------> Planning Time Fence
Stock Requirements List brings together all the supply orders, independent and dependent demands and stock balances for the material. MRP makes order proposals to balance the supply/demand position for the material Processing Planning Results Order Proposals: Planned Orders Procurement Type is In-house Production MRP MRP Controller Planned Order Order Qty Order Date Capacity Reqts. Resource Reqts. Production Order Planning for In-house Production Planned Order Production Order Auto Change/ Delete if situation changes Auto Creation Collective Conversion into Production Order Manual changes/ deletion Manual Creation Planning Run MRP Controller Individual Conversion into Production Order Production Order Release Planning for External Procurement Planned Order Auto Creation Convert Planned Orders to Requisitions Manual Change/ Deletion Manual Creation Planning Run MRP Controller Purchase Requisition Purchase Order Delivery Schedule Auto Change/Deletion Auto Creation Auto Change/Deletion Auto Creation Manual Change/Deletion Manual Creation Manual Change/Deletion Create PO via Requisition Manual Creation Purchasing Group Auto Change or Delete Link to Scheduling Agreements Quota Arrangement External Supplier MRP Planning Run Source List Schedule Agreement Lines Created MRP Supplier from Source List Scheduling Agreement 50 Units 50 Units 50 Units Distribution Function 50 Units 50 Units Several planned orders are created for partial quantities of the dependent requirement quantity The planned orders are scheduled for various dates within the run time of the production order A daily provisioning of partial quantities distributed over the run time of the order is possible Models a continuous flow process Total Requirement of 250 units for the week Master Planning and Demand Management Master Planning Demand Management Planning and Consumption Strategies Specification of Requirement Quantities and Delivery Dates Master Production Scheduling Planning for Master Schedule Items Planning Time Fence Interactive MPS Copy from Sales Plan Copy from Prodn Plan Copy from Forecast Copy from Orig Plan Demand Management Demand Program Manual Planned Independent Requirements Sales Demand from Sales Orders MRP/MPS Sales and Operations Planning Demand Management Planning Strategy Make-to Stock Make product for stock in expectation of customer sales Plan using planned independent requirements for anonymous make-to-stock production. Use Net or Gross Requirements Planning Net Requirements -- includes warehouse stock, planned issues and receipts Gross Requirements -- excludes warehouse stock. Just includes planned and open orders Example is a shelf stock item such as a bike accessory light Planning Requirement Type is LSF - make to stock which is used in the planned independent requirements transaction Sales Order Requirement is KSL - which is sale from stock Sale from stock Planning Production Push Warehouse Stock Finished Product Strategy: Make-To-Stock Production Example: Common shelf items such as a bike accessory (light) Planning Strategy Planning with Final Assembly Make product in expectation of customer sales Plan using planned independent requirements at finished goods level to drive demand to long lead time components Typically there is a longer lead time to produce than the customer is willing to wait for Sales orders consume the planned independent requirement quantities Planned quantities that are not consumed by sales orders result in excess stock Example is a long lead time custom product Planning Requirement Type is VSF planning with final assembly Sales Order Requirement is KSV which is sales order with consumption Sales Order Planning Production Push Warehouse Stock Finished Product Example: Custom furniture such as a cherry table Final Assembly to Sales Order Purchase Produce MRP without reference to sales order Planned Independent Requirements Strategy: Planning with Final Assembly Planning Strategy Planning Without Final Assembly Final assembly is initiated by the customer sales order Stop production at sub-assembly level Final assembly pull Example is automobile assembled with unique combination of features (sub- assemblies) Planning Requirement Type is VSE -- planning without final assembly Sales Order Requirement is KEV -- independent customer order with consumption Sales Order Planning Production Push Final Assembly Pull Warehouse Stock Finished Product Warehouse Stock Assembly 01 Warehouse Stock Assembly 02 Example: Option oriented product such as a car Stop at level Planned Independent Requirements Assembly when Sales Order Scheduled Purchase Produce Strategy: Planning Without Final Assembly Planning Strategy Planning with Planning Material Planned independent requirements of Planning Material initiate procurement of the planning bill components Sales orders for the final assembly create planned orders of the finished product and reduce planning quantities for the planning material Possible to plan a family of products from forecast placed on the planning bill. The planning bill details, through percentages, the quantity required for common parts Example is a bike with common sub-assemblies used in many finished items Planning Requirement Type is VSEF -- planning with planning material Sales Order Requirement is KEVV -- independent customer order with planning material Sales Order Planning Production Push Final Assembly Pull Customer Stock Finished Product Planning Material Warehouse Stock Assembly 01 Warehouse Stock Assembly 02 Example: Bikes with the same features except for the color Purchase Produce Note: Percentages drive lower level demands for sub assemblies Strategy: Planning with Planning Material Planned Independent Requirements Planning Strategy Planning at (Sub)Assembly Level Used if forecasts are more reliable at the sub-assembly level. (hour-glass) Sales orders received initiate an explosion of the finished product level Resulting dependent requirements consume the planning quantities of the finished product Must maintain the Mixed MRP Indicator in the Material Master MRP2 View for sub-assembly planning. Maintain the consumption indicator in the item screen of demand management Example is a PC where the forecast for individual features is more accurate than forecasts for the completed PCs Planning Requirement Type is VSFB -- planning at assembly level Sales Order Planning Production Push Final Assembly Pull Warehouse Stock Finished Product Warehouse Stock Assembly 02 Warehouse Stock Assembly 03 Example: A PC with a large number of end item configurations Brake Assembly Common Sub Assembly Strategy: Planning At Assembly Level Sales Order Production by Lot Size Pull Warehouse Stock Finished Product Example: Combine customer orders for the same item Strategy: Production by Lot Size Planning Strategy Make to Order Production Sales orders are planned according to sales order number Produced quantities for each sales order are managed individually Production and procurement costs are managed in either a settlement order or a project Example is a custom product with a unique structure such that it only applies to a particular customers order Sales Requirement Type is KE -- independent customer order without consumption Sales Order Production by Lot Size Pull Warehouse Stock Finished Product Example: New machinery Strategy: Make-To- Order Production Customer requirements consume planning requirements directly before or after it Consumption mode is either determined in the material master record or in the configuration menu of demand management Consumption mode determines either -- Backward consumption requirements directly before the sales order Forward consumption requirements directly after the sales order Both types are allowed the system looks for the next closest planning requirements If no consumption periods exist, then you can only consume requirements planned on the same day. Example -- Forward Consumption 01/07 01/14 01/21 01/28 Planned Requirements 0 0 0 100 Customer Requirements 25 -------^
Example -- Backward Consumption 01/07 01/14 01/21 01/28 Planned Requirements 0 100 0 100 Customer Requirements ^----- 25 Consumption Logic Production Order Management Material at 0010 ------------------------------ Material Number Quantity Date Operation 0020 ------------------------------ Work Center Control Info Operation Times Elements of a Production Order Order Header ------------------------------ Settlement Rule Planned/Actual Costs Operation Sequence Operation 0010 ------------------------------ Work Center Control Information Operation Times Material at 0010 ------------------------------ Material Number Quantity Date Production Order Header Order Header Main View Order Type Order Number Production Order Quantity Production Order Date Order Header Master Data For Routing For Bill of Material For Costing Order Header Allocation Data For Plant MRP Controller Order Header Acct Assignment Settlement Rates Order Header Order Monitoring Date Quantity Production Order Operation Operation Overview Operation Sequence Operation General View Work Center Control Key Text Status Operation Standard Values Base Quantity Standard Times (Setup, Machine, Labor) Operation Dates Dates per time element Splitting Default Values Overlap Default Values Continuous Flow Production Operation Overlap/Split Production Order Component Material Number Requirement Quantity Requirement Date Reservation Item Category Bulk Material Indicator Operation Long Text Text Key Component Overview Component General Data Production Order Material: A, Qty: 100 PCS Schd Type: B Basic dates: Start/Finish
Components Operations 0010 B 1 0010 PHNASM00 0020 C 1 0020 0030 0040
User fields: General text data Quantity data Value data Date fields Production Order 0010 PHNASM00 0020 0030 0040 PHNASM00 Std Values: Setup: 005 Prodn: 075 TDown: 005 Routing Work Center A B C Bill of Material The Production Cycle The Production Cycle Issue Materials to Order Select BOM Select Routing Schedule Times & Dates Calculate Capacity Purchase Requisitions Goods Issue Production Order Calculate Planned Costs Release Order Check Availability Print Shop Floor Papers Create Order Create Required Purchases Confirm Completion Receive complete goods into stock Goods Receipt Confirmation Slip Calculate Actual Costs Actual Labor Production Order Cycle Status CREATED RELEASED DISPATCHED CONFIRMED DELIVERED COMPLETE
. BOM and RTG . Completion Conf- . Capacity Leveling . Actual Production . Goods Receipt . Actual costs selected irmation possible possible for oper usage and time delivered settled to captured cost objects . Lead Time . Shop paper printed Scheduling . Milestone operation (MILE) . Reservations . Availability Check created for possible, at or components before release
. Capacity Reqmts . Material issues for Work Centers after oper release
. Planned Order costs created (PRC)
. Settlement Rule Determined (SETC) CRT REL DSPT CNF DLV COMP Production Order Creation Manual Order Creation Order Proposal MRP Conversion Determine Order Type Routing Selection Lead Time Scheduling Bill of Material Selection Enter start or finish date depending on scheduling direction Component Overrides Material Reservations Item Categories Alternate Sequence Assignments One operation is required Changes are allowed before order release Production Order Release Production Order Ready for Release Material Availability Check Order or Operation Release Shop Paper Printing Possible Material Withdrawals Possible Order release is carried out manually Uses checking rules defined in configuration On-line or in background Pick List, Confirmation Slips,... Material Availability Check Stock on Hand
150 Units Reservation for
50 Units Net Available 150 100 300 100 Planned Order for
200 Units Dependent Requirement for 200 Units Requirement for 50 Units are Available Material Availability Check Stock on Hand
150 Units Reservation for
50 Units Net Available 150 100 300 100 Planned Order for
200 Units Dependent Requirement for 200 Units Requirement for 150 Units not Available 06/01/95 Today Goods Movement for a Production Order Material 1 Material 2 Production Goods receipt of Material 3 Goods Issue Consumption of Material 1 and 2 Reservation Planned Goods Issue Unplanned Goods Issue Goods issues only apply to stock items Goods Issue Results Goods Issue Posting Update Reservations G/L Account Update Accounting
Material Document Material Usage Statistics Cost Object Allocation Completion Confirmations
Production Order Operations
0010 - Assemble Board
0020 - Assemble Case
0030 - Assemble unit
0040 - Final Test
C Confirm Operation 0010 Activities Confirm Operation 0020 Activities Confirm Operation 0030 Activities Confirm Operation 0040 Activities Partial or Final Confirmation Single or Collective Confirmation Milestone Confirmation Reduction of Capacity Requirements Determination of Actual Costs Milestone Confirmation Data Quantity Dates Labor Yield Scrap Quantity Scrap Reason Start date Finish date Work Center Personnel Number Qualification Wage Group Wage Type Capacity Capacity Planning MRP Requirements Capacity Requirements Capacity Evaluation Work Center Capacity Master Data
Material
BOM
Routes
Work Center Capacity Leveling to adjust capacity periods Standard Values Formula Key Formula Constants Std Values Set up .5 hrs Proc 5.5 hrs Teardown .5 hrs No. Splits Formulas Setup | Process | T/D Work Center Operation Capacity Requirements Formulas for Scheduling and Capacity Reqmts Tables Capacity Scheduling Float Before Float After Oper 0010 Oper 0020 Oper 0030 Queue | Setup | Process | Teardown | Wait | Move Execution Time Interoperation Time Interoperation Time Operation Lead Time Material Master Lead Time Lead Time Reduction Measures Float Before Float After Queue | Setup | Process | Teardown | Wait | Move (2) (1) (6) (1) (2) (2) Use Minimum Queue Time Optional Splitting or Overlapping Use Minimum Move Time Reduce Float Time Reduce Float Time Queue (1) Split Process Set up (1) Split Process Wait (1) T Down (1) Move (1) Float After Float Before Standard Formulas Operation Time is ....
Queue Time + Execution Time + Wait Time
Queue Time specified in the operation
Execution Time = Setup + Proc Time * Lot Size/Base Qty
Wait Time specified in the operation Product Costing Costing Integration PP PP-PC Product Costing PP-MRP Mat. Requirements Planning
PP-MPS Demand Management
PP-BD Basic Data
PP-IS Shop Floor Info System
PP-CRP Capacity Planning
PP-SFC Production Activity Cntrl. CO CO-PC Product Cost Acctg. CO-PA Profitability Analysis
CO-PA Profit Centers
CO-OPA Orders
CO-CCA Cost Center Accounting R/3 Client / Server
SD MM PP QA PM HR IS OC PS AM CO FI Sales & Distribution Materials Mgmt. Production Planning Quality Assurance Plant Main- tenance Human Resources Industry Solutions Office & Communi- cation Project System Fixed Assets Mgmt. Controlling Financial Accounting Costing and Organizational Structures Plant PP01 Plant PP02 Plant PP03 Plant 0001 Valuation area PP01 Valuation area PP02 Valuation area PP03 Valuation area 0001 Company code 0001 Company code 0002 Company code PP01 Controlling area 0001 Controlling area PP01 Client Chart of accounts GKR Logistics and Cost Accounting Logistics Materials management Production planning Material requirements planning Production orders Capacity planning Cost elements Cost centers CO orders Cost Accounting Pricing
Valuation
Profitability analysis
Controlling Cost object controlling: Preliminary and standard costing Final costing Master Data for Costing Material Master Record Costing View Product Costing Indicator, Costing Lot Size, Overhead Group Accounting View Valuation Class, Category, Price Control Bills of Material Materials required to make the product Cost Center Accounting data Work Center Standard Value key and Efficiency Rate Routing Relevancy to Costing Indicator Component Cost Layout 02 Cost Component 1 Raw Materials Cost Component 2 Production Cost Component 3 Overhead-Material Cost Component 4 Overhead- Production Cost Component 5 Overhead-Admin Cost Component 6 Overhead-Sales Cost Component 7 External Processing . . Cost Component 15 Miscellaneous . Cost Components Cost components are defined in Product Costing Customizing Each costing variant (standard cost, current cost, ...) points to a cost component layout There can be up to 40 cost components in a cost component layout For each cost component identify which costs are rolled up to the next higher level Component Cost Layout 01 Cost Component 1 Raw Materials Cost Component 2 Production Cost Component 3 Overhead-Material Cost Component 4 Overhead-Production Cost Component 5 Overhead-Admin Cost Component 6 Overhead-Sales Cost Component 7 External Processing . . Cost Component 15 Miscellaneous . The Production Order and Inventory Accounting A Production Order collects all costs associated with making an inventoriable item. The order picks up costs through the manufacturing process from the Bill of Material and the Routing. Bill of Material Routing Production Order STATUS: Created, Released, Confirmed, Delivered, Settled Order: 73 Type: PP01 Plant: LR001 Sys Status: CRT REL CNF DLV SETC Quantities: Total Produced: 100 Tons Scrap: .001 Confirmed: 100 Tons Dates: Schedule 09/15/95 Confirmed 09/16/95 Costing Production Orders Preliminary Order Costing Final Order Costing Simultaneous Order Costing Planned Order Costs are calculated from target input quantities according to BOM and Routing Standard Price for R/M Planned Activity Prices Planned Overhead Rates Actual material and activities used & confirmed Invoices for external activities Overhead Calculated Rates Order confirmed complete Quantities delivered have been posted Last operation confirmed complete Calculating Production Costs Cost Center Formula Routing Standard values General standard values Work center Formula constants Activity type Actual time/quantity Activity price Costs Overhead Costing Direct material costs Indirect material costs Direct production costs Indirect production costs Costing sheet + + = = Material costs Production costs + = Manufacturing costs Indirect management costs Indirect sales costs Cost of goods sold + + = The Costing Sheet Calculation basis Cost element Origin Overhead Percentage rates Planned/actual Dependencies Order type/category Plant Company code Business area Overhead key Credit Cost element Origin Object Cost center Order Make-to-Order Production Order Delivery Goods issue Invoice Material requirements planning Production Sales order stock Target
Actual Individual customer requirements Production memo Reduction of sales order stock Cost Objects with Make-to- Order Production Objects of integrated R/3 modules
Material number (MM) Production order, operation (PP) Sales order (SD) Project item (PS) Network (PS) CO order (CO) Basic General Functions for Cost Object Controlling Master data Cost object, cost object hierarchy Internal/external numbering system Preliminary costing Costing items Automatic valuation Planning aids (revalue, copy, reference) Cost component structure Simultaneous costing Actual quantity used * price Overheads Actual yield Calculation of target costs Variances according to category Work in progress Analysis of actual product costs Closed periods Settlement to stock (at standard price) Settlement to profitability analysis (variances) Controlling Summarization using classifiable characteristics Selection using classifiable characteristics Cost object analysis Cost Roll-up Costs for assemblies in the low-level code with the highest number are calculated first Upper level is production costs at this production level Lower level is costs of all material components processed at this production level Total costs are the sum of the costs for the upper and lower level costs Cost Component Split - Total Material Internal Activity External Activity Overhead Cost Component Split - Upper Level Material Cost Component Split - Lower Level Material Internal Activity External Activity Overhead Cost Component Split - Upper Level Internal Activity External Activity Overhead Cost Component Split - Total Material Internal Activity External Activity Overhead Finished Product Semi-Finished Product Raw Material Master Production Scheduling Separate Planning Run for Master Schedule Items During an MPS run, only master schedule items are planned Dependent requirements are created for the BOM level directly below the planning level Levels below the master schedule items are not planned Changes can be made to the master plan without effecting lower BOM levels Supply orders are reviewed for timing and quantity to match requirements Allows for daily planning without a negative impact on system performance MPS Item Assembly 1 Assembly 2 MPS level MRP level MPS Functions Protects the master plan from automatic changes to the master schedule During a planning run, no automatic change proposals are made within the planning time fence which is determined for each item in the Material Master. The system calculates the planning time fence starting from the planning date Planning Date Planning Time Fence Automatic Order Proposals Order Proposals are Fixed Planning Time Fence Create Planned Independent Requirements Carry out Separate MPS Planning Run Make Changes Using Interactive MPS Start MRP Run for Lower Levels Using Demand Management Proposal Changes within Planning Time Fence System Creates Order Proposals Outside PTF Fine tune MPS Items within Planning Time Fence Carry-out MRP MPS Procedure Planning Run Types Regenerative Planning all master schedule items are planned for a plant. It is generally used during initial start- up to insure all items are planned or when heavy maintenance causes most items to be re-planned. Net Change Planning only master schedule items which have undergone a change to the supply/demand balance, such as warehouse receipts and issues, are re-planned. It is common to run net change MPS daily. Net Change Planning in the Planning Horizon shortens the period over which MPS plans to the planning horizon, which is set in Customizing. It is typically set to the length of time of the longest lead time item. This means that only those master schedule items which have undergone a relevant change within the planning horizon are planned. The system does not plan new order proposals within the planning time fence. Instead, new requirements needed within the planning time fence are scheduled at the end of the planning time fence, depending on the fixing type. Planning Date Planning Time Fence Automatic Order Proposals Order Proposals are Fixed During the next planning run, the system places all order proposals that crossed over the planning time fence at the PTF. The master scheduler needs to fix or firm these order proposals to the correct date inside the PTF. Once fixed, the system will not change.
Orders can be firmed collectively (Planned orders->firm) through selection of MRP controller, material, run schedule, production version, or planning id. Firming Planned Orders Availability Check Inward movement of goods Outward movement of goods Stock Purchase Order Purchase Requisition Planned Order Delivery Sales Order Reservation Other factors to take into account: Safety stock Stock in transfer Replenishment lead time Blocked stock in QA