SAP – PP-PI Training

09 Aug’02 to 15 Aug’02
Gaurav Rastogi
Agenda
Day1 – Introduction to PP-PI and Master Data
(Material Master,Master Recipe,BOM) & Hand On
Day2 – Master Data (Resources, ECM) Master Data
Configuration and hand on
Day3 – SOP , MRP Concepts and Hands On
Day4 – MRP Configuration, Process Order
Concepts and hands on.
Day5 – Process Order Configuration,hands on and
Q/A
Production Planning Overview

Forecast

Demand Process Order

SOP Management MPS MRP Control Costing

Master
Planning
Scheduling PP-PI Basic
CRP Data
Master Data
• Contains the records that remain in the
database over and extended period of time. It
contains information that is often used in the
same manner for similar objects and business
processes.
Master Data • Master data is a key piece
of information in the system
• Master data can be seen from
Finance Engineering a number of views
Design
• Each view can correspond
Sales to an SAP module
Product Purchasing
Data • Each view has a number
of information screens
Production
Stock • 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
Production Planning Master Data
Master Recipe

Materials Work Centers

Production
Production
Facilities PP Basic Data Resources/Tools

Inspection Capacities
Plans
Bills of Material
Master Data
• MRP Data (Material master)
• Work Scheduling Data
• Production Version
• BOM
• Master Recipe
• Work Center
• Engineering Change Management
Material Master

• Contains all data required to manage a material. This

data is sorted according to various criteria.

• All materials are defined in a material master record

and identified by material number.
MRP Data
Data Required to plan for all materials
• MRP Type
Determines how the material is planned such as MRP, MPS, or
consumption based planning

MRP Controller
Responsible for Planning the materials.This can be based upon
production line,product types etc
• Lot Size
Determines which lot-sizing procedure the system uses to
calculate order quantities
MRP Data
• Safety Stock
Specifies the quantity whose purpose is to satisfy
unexpectedly high demand from sales.
• Procurement Type
Indicates if the material is externally procured, or
produced internally or both.

• In House Production Time

Determines the time to produce a materials
MRP Data

• GR Processing Time
Determines the time to receive a material after production

• Schedule Margin Key

Key that the system uses to determine the floats required for
scheduling an order.

• Planning Strategy
The planning strategy represents the procedure used for planning a
material
MRP Data

• Availability Check
Indicates whether the system generates individual or summarized
requirements for sales orders for this material and for planning,
which MRP items the system includes in the availability check.

• Selection Method
Indicator determining the selection of the alternative BOM when
requirements are exploded in material requirements planning
Work Scheduling Data

Data for Production Scheduling

• Production Scheduler
Scheduler responsible for a material in production activity control

• Production Scheduling Profile

Specify that certain business transactions are carried out in parallel
in a process order
Production Version

• A Production version determines which

alternative BOM is used together with
which master recipe to produce a material.
• For one material, there can be several
production versions, lot-size ranges.
Production versions are used together with
alternative BOM.
Bill of Material
A complete, formally structured list of the components
that make up a product. This Product can be a semi-
finish or finish product.The list contains the object
number of each component, together with the
quantity, unit of measure, and item category.
Master Recipe
• A Master recipe describes the production of one or more
materials in one production run and is the basis for process
orders.

• A Master Recipe defines the following data required for the

manufacturing of materials without relating to a particular
order;operations, phases,processing steps, work center, material
components, data for in-process quality inspection, control
information for the process control level.
Master Recipe

Operations,Phases &
BOM Process Instructions Work Center

Final Product
Operations and Phases
Premixing
- Preparation
- Mixing
- Dispersion
After Mixing
- Preparation
- Mixing
- Cleaning
Canning
- Canning
Work Center

• Work centers are facilities and persons involved in a

production process that have capacities. They are
subdivided into categories to specify their suitability
for certain purpose or their use in certain processes.

• Example: Premixing tanks, grinding machine, canning

line.
Work Center and Operations
Operation Work Center
Premixing IUPMWC01
- Preparation
- Mixing
- Dispersion
After Mixing IUAMWC01
- Preparation
- Mixing
- Cleaning
Canning IUCNWC01
- Canning
Work Center – Important fields
• Work center category
• Person Responsible
• Supply Area
• Usage
• Standard value key
• Control key
• Formulas : Costing / Capacity /
Scheduling
Availability Capacity at Work Center
Planned
Break Downtime
1 hr Time

1 hr

8 hrs
7 hrs
6 hrs

Working Working Productive

Hours Hours less Working
Breaks Hours
Formulae in the Work Center
• Formulae are used to calculate the
processing time of the operation
• Formulae can be fixed ,variable duration
formulae
• Premixing, After mixing, Color Matching
and Canning operations are Fixed duration
formulae; Grinding operation is a variable
duration formulae
Use of Formulae in Work Center
Work Center Schedule Work Center Capacity

Work Center Set up Formula

Formulas
Machine Time Formula
Operation Std Values
Teardown Formula
Set up 1.0 hrs
Machine 5.5 hrs
Master Recipe with standard values Teardown .5 hrs

Oper 0010 Oper 0020 Oper 0030 Oper 0040

Cost Center Assignment to Work
Center for Operation Costing
Cost Center Set Up $70.00

Mach $60.00
Activity Rates
Labor $80.00

Overhead $70.00
Set Up (SET)
Work Center
with Activities Machine (MACH)
during production Labor (LAB)

Master Recipe with standard values

Oper 0010 Oper 0020 Oper 0030 Oper 0040
Engineering Change Management
• Changes to object types can be made without history
which only records the maintenance change after.
• Change to object types can also be made with history
which is made with reference to a Change Master.
• Changes become effective on a defined date
• Changes are documented before and after the change
• Changes are documented in a Change Master Record
Sales & Operations Planning
SOP(Sales & Operations Planning)

• Sales & Operations Planning (SOP) is a flexible

forecasting and planning tool with which sales,
production, and other supply chain targets can be set
on the basis of historical, existing, and estimated
future data.
Flow for SOP…

Sales & Marketing to Production to create

input sales plan based monthly or weekly production
on sales history or market info. plan based on sales plan

Monthly or
Weekly
Production Plan

Master Production Plan.

Sales and Production to
discuss on the feasibility
of the production plan.
SOP Functions
• SOP specifies sales quantities for the long and medium
term to roughly assess the feasibility of sales and
operation plans
• Sales and Operations Planning at the Product Group or
F/G level
• Materials may be planned together in Product Groups
• Sales quantities are determined for future periods
• Production quantities are then determined on the basis
of sales
How are they related??
Planned
Order

SOP MRP Planned Order

Created

Work Center
Process Order
Created
Process Instruction

MASTER RECIPE
BOM

Characteristic
Demand Management
• Demand Management determines the requirement dates
and requirement quantities for Finished Products and
specifies the strategies for planning and
producing/procuring finished products. The result of
Demand Management is the demand program. The
demand program differentiates planned independent
requirements and customer independent requirements.
Sales and Operations Planning –
Transferring Data to Demand
Management
• Transfer a single-level product group (multiple) or
individual material (single) (Using Excel file for Nippon)
• Independent Requirements Parameters
• Specify Requirements Type
• Version Number
• Plant
• Limit scope of the time period
What happens when SOP data is
transferred to Demand Management
• When SOP data is passed on to Demand Management,
independent requirements are created for all materials
whose data has been transferred. These independent
requirements are created in the base unit of measure of
the material.
• We are using Excel file for Uploading SOP data to
demand management directly for Nippon.This excel file
helps sales persons to key in forecast for all the
materials together.
Material Requirement Planning
Material Requirement Planning

• What to produce
• How much to produce
• When to Produce
The Planning Concept in SAP
SOP MPS MRP
Planned Customer Independent
Independent Requirements
Sales Requirements Demand ie
Plan Requirements
Requirements (Orders) from
Offset SD Module

Keep Balanced

Planned Orders
Production
Plan
Process Orders
Order Proposals
Purchase
Requisitions

Order proposals, planned orders etc are created and adjusted by running the MRP or MPS programs.
Material Requirement Planning

Requirement elements:
• Sales orders
• Planned independent requirements
• Material reservations
• Dependent requirements received from BOM
explosion
• Forecast or safety stock
Planning Run Types
• Regenerative Planning – all 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.NEUPL
• Net Change Planning – only 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
daily.NETCH
• Net Change Planning in the Planning Horizon – shortens the
period over which MRP 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 items which have
undergone a relevant change within the planning horizon are
planned.NETPL
Reorder Point Planning
Stock Lot size

Reorder
level

Safety
stock

Reorder point Delivery date Time

Replenishment
lead time
Single and Multi level Planning

• Single-Item, Single-level Planning

• Planning carried out for a single item on a
BOM. Dependent requirements are only
created for materials on the next lower level
• Single-Item, Multi-level Planning
• Planning carried out for the complete BOM
structure of a material
Multi level Planning Structure
Independent Requirements

= Demand
E1
= Supply
Planned Orders Level 0

Dependent Requirements

B1 B2
Planned Orders Planned Orders
Level 1
Dependent Dependent
Requirements Requirements

R1 R2 R3
Planned Orders Planned Orders Planned Orders

Level 2
Backward Scheduling for In
House Production
• MRP determines the basic scheduling dates using backward scheduling
• If the release date lies in the past, the system automatically
switches to forward scheduling
Order Order Order
Release Start Finish
Date Date Date

Order Release In-house Goods Receipt

Process Time Production Time Process Time

Future
Requirement
Date
Stock Requirement List
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
MRP List Vs Stock Req’ment List
MRP Current Stock,
MRP Reqmts, Balances,
Planning
Planning planned Receipts,
Process
Result Issues

Last planning Stock Requirements

run results List uses current data

• The MRP List displays the result of the last planning

run
• The Stock Requirements List displays the most up-to-
date stock and requirements situation
Process Order
Process Order

• A Process Order describes an actual production

process. It contains all information specified during
process planning, such as production date and
quantities to be produced.
• A Process Order is based on master recipe
Elements of a Process Order
Order Header
------------------------------
n Order Type
n Material
n Plant
n Planned/Actual Costs
n Operation Sequence
Operation 0010
------------------------------
Phase• Work Center
0020
• Control Info
------------------------------
n Work • Operation
Center Times
n Control Information
n Phase Times
Material at 0020
------------------------------
Material at 0020
• Material Number
------------------------------
• Quantity
n Material
• DateNumber
n Quantity
n Date
Process Order - Example
Production Order
Bill of
Material Material: A, Qty: 10 PCS Master Recipe
Schd Type: B
A Basic dates: Start/Finish 0010 IUPCWC01
0020
Components Operations and Phases 0030
0010 B 200 0010 Premixing 0040
B C
0020 C 20 0020
0030
0040 Work Center

User fields: IUPCWC01

• General text data Std Values:
• Quantity data Processing Time:30
• Value data Min
• Date fields
 Process Order

Convert or Release Goods Issue Completion Goods Order Technical

Create Order confirmation Receipt Settlement completion
The Production Cycle
Print Shop
Select Select Schedule Floor Papers
Master Recipe BOM Times & Dates
Release Check
Order Availability

Actual
Create Labor Confirm
Order Completion
Issue
Materials to
Order Calculate
Actual Costs
Calculate Calculate Create
Capacity Planned Costs Required
Purchases Receive complete
Goods
Issue goods into stock
Purchase
Requisitions Goods
Receipt
Completion Confirmation

Why need to confirm?

• How much yield and how much scrap was
produced in an operation
• How much activity was used to carry out the
operation
• At which work center the operation was
carried out
• Who carried out the operation
 Completion Confirmation

What is the outcome?

• Capacity load reduces
• Costs updated
• Order data updated
• Withdraw posting of backflushed
components
• Goods receipt
Completion Confirmation

What objects can be confirmed?

• An order
• An operation
• A Phase
Completion Confirmation

What data can be confirmed?

• Quantities
• Activity data
• Times & dates
• Personnel data
• Scrap
• Reasons for variance
Types of confirmation
• Standard confirmation
• Single ( for each Process Order at a time)
• Collective ( for many Process Orders at a time )
• Partial / Final
• Milestone confirmation
• Single
• Collective
• Partial / Final
Q and A
Thank You