H84 Scen Overview en De
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H84: Make-to-Stock (MTS) Production with Batch Management, Warehouse Management (WM) and Handling Unit Management (HUM)
Scenario Overview
SAP AG 2006
The scenario H84 – Make-to-Stock (MTS) Production with Batch Management, Warehouse Management and Handling Unit Management describes the processes involved in sales-order-independent production including a variety of logistic functions, such as bulk material, scrap, missing parts with workflow, rework, handling unit management, batch management, first in first out material consumption and manufacturing part numbers.
Material costing
Sales order processing and offset against planned independent requirements
Material requirements planning (MRP)
Planned orders / purchase requisitions processing
Procurement with scheduling agreement
Manufacturers Part Number Processing (MPN)
Bulk material handling
Production order processing
MTS-Production w. Batch Management, WM and HUMOverview I
SAP AG 2006
Warehouse management (WM), lean WM processing
Picking according WM/PP material staging
Batch management
Scrap processing
Rework order process
Workflow for missing parts (optional)
Barcode integration (optional) for order confirmations and picking list
Handling unit management (HUM)
Goods issue and billing
Order settlement
MTS-Production w. Batch Management, WM and HUMOverview II
SAP AG 2006
Business Benefits Customer Manufacturer / Supplier Business Benefits
Material Requirements Planning (MRP): The daily MRP run generates replenishment elements at each low-level code. The system automatically generates purchase requisitions for purchased parts within the 3-month opening period for the planned order. The system uses planned orders to implement receipt elements, which are also required. In general, the system also creates planned orders for parts, which will be produced internally. When the planned opening date has been reached, these planned orders are converted to production orders by the production planner. As a result, the system reserves all of the required components. In the material master for all of the Interface Cards in this series, the planned opening date is set to 5 days. Some raw materials and packing material are planned on a consumption basis. Since these parts are required for a variety of other Boards and Cards, large quantities of this material are to be stored in the warehouse. Replenishment orders are triggered as soon as a specified reorder point is reached. The stock issues are backflushed when the turn activity is confirmed.
Costing run
Costing Run: The purpose is to calculate prices for the selected materials which are then updated in the material master records as the standard price. The standard price is used to valuate goods movements within the company. The price update involves two steps: marking the calculated price and then releasing it. Before you can mark the prices, you have to allow it for the company.
Sales order processing with availability check: The system checks the incoming sales orders to determine whether the components are available. The available warehouse stock and the receipts from forecast planning are taken into account. Therefore, the system calculates the confirmed delivery date from the receipt date of the next (still unplanned) planned or prod. order. If a suitable receipt element is found, the sales order receives a confirmation date, and the order confirmation can be printed out. At the same time, the system compares the forecast details with the specific customer requirements.
MRP at plant level
Production Order Processing -
Create Production Order
Scrap treatment and analysis
Sales Order Processing with Availability Check
Purchasing -
Create Purchase Orders
Customer Order is transferred via eMail / Fax
MTS-Production w. Batch Management, WM and HUMBusiness View
SAP AG 2006
Business Benefits Customer Manufacturer / Supplier Business Benefits
Procurement with Manufacturing Part Numbers: The process integrates the manufacturing parts number, batch and quality management process in procurement.
Quality Inspection:
To ensure that the delivery of material meets predefined quality standards, a quality inspection is performed and the result recorded in the inspection lot according to the defined inspection plan. The usage decision is made to accept the material and it is moved to unrestricted stock.
Purchasing -
Manufacturing parts number processing
Purchasing-
Maintain delivery schedule for scheduling agreement
Post goods receipt
WM, Lean WM, MPN
Analysis and treatment for bulk materials
MTS-Production w. Batch Management, WM and HUMBusiness View
SAP AG 2006
Business Benefits Customer Manufacturer / Supplier Business Benefits
Make-to-stock production/ Production Order Processing:
The production planner releases the production orders created on the release date, and simultaneously prints the shop floor papers with bar code. Production orders with missing parts are usually not released by the production planner. However, in exceptional cases, the production planner can also send orders with missing parts to production and the planner receives information as soon as the missing material comes in. The warehouse worker picks the production order in the parts warehouse based on the FIFO strategy, and uses the pick list to pick the components managed in the temporary warehouse for each order. The consumable material is managed in service stock at the work center. At the beginning of production planning, the planned scrap quantity (component scrap, assembly scrap and operation scrap) is considered.
Missing Part Management with Workflow Integration
Production Order Processing -
Release Order
Picking components for semifinished and finished
products - WM/PP material Staging
Production Order Processing -
Confirmations with Barcode Integration (optional)
Handling Unit Management
MTS-Production w. Batch Management, WM and HUMBusiness View
SAP AG 2006
Business Benefits Customer Manufacturer / Supplier Business Benefits
Cost Object Controlling: Cost object controlling in discrete manufacturing is an area in cost accounting that assigns the costs incurred in the production of company activities (such as internally manufactured materials) to those activities. Product cost by order enables you to analyze costs at the level of manufacturing orders, process orders, and production orders. In product cost by order, the manufacturing orders themselves are the cost objects. Costs charged to manufacturing orders are usually analyzed and settled by lot. This means that variances can only be analyzed after the entire planned production quantity has been put into inventory. The settings in Production Planning & Control (PP, PP-PI) are required to cost manufacturing orders as part of production execution.
Create Delivery for HU and Post Goods Issue
(only DIMP)
Create Billing Document
Cost Object ControllingWIP Calculation, Variances,
Order Settlement
MTS-Production w. Batch Management, WM and HUMBusiness View
SAP AG 2006
Supplier/ManufacturerCustomer
SAP ERP
Purchase order
Creation of production order for finished goods
Production of semi-finished goods
Planned Independent Requirement Processing (Catt)
Material requirements planning
Order release and confirmation
Rework order process
Creation of sales order
Billing
Cost object controlling
Delivery processing with handling unit
Scrap
Pro
cessIing
Pro
curem
ent w
ithsch
edu
ling
agreem
ent
Picking components with WM/PP interface and FIFO strategy
Normalprocess
Missin
g p
arts wo
rkflow
FIF
O w
ith IM
/WM
pickin
g
Confirming production orders (optional: with barcode scanner)
Creating handling units
Bu
lk material
pro
cessing
Purchaseorder processing
FIF
O w
ith b
ackflush
FIF
O w
ith lean
WM
Production order release and confirmation for finished goods production order
MTS-Production w. Batch Management, WM and HUMComponent View
SAP AG 2006
H84-1000Interface Card
V24/2 HC 150 E
HALB
PD
H84 -1010Hexagon Head
Screw
ROH
VB
H84 -1020IC
LogicMAX884
ROHVB
H84 -1030Transformer
ROH
PD
H84 -1040Circuit Board
PCB 2L 8B 7.6
HALB
PD
H84 -1050Connector
SUB-D2
ROH
PD
H84 -1060Resistor
RES0805MS392
ROH
VB
H84 -1046Flex Connection
ROH
PD
H84 -1045Panel
ROH
PD
HUSC
BIM B
M
BH
B LMWM
B MP
Operation scrap in BOM item with net
indicator
SC
Assembly scrap in Material Master
Component scrap in Material Master
SC
B
Procurement with Scheduling Agreement
RW
SC
IM
M
RW
MP
WM
LM
BH
B
Lean Warehouse Management
Missing Parts Processing
Bulk Material Handling
Batch Management Manufacturer Part Number
Rework
Scrap ProcessingWarehouse Management: FIFO
B
H84 -1070Glue
ROH
VB
H84-1080Packaging Material
for H84-1000 VERP
VB
BH
0002 - Production
H84 -1047Plastic Film
ROH
PD
H84 -1048Supplies
ROH
PDWMWM
0006 0006 00050006
LM
HU Handling Unit Management
Inventory Management: FIFO
MTS-Production w. Batch Management, WM and HUMProduct Structure
SAP AG 2006
Convert
Planned Order
Dependent Reqmts
Reservations
Warehouse
Material ReqmtsPlanning
Demand
ProgramPlanned Ind. Requirements
ProductionOrder
MTS-Production w. Batch Management, WM and HUMMaterials Requirement Planning (MRP)
SAP AG 2006
Manufact.H8401
Manufact.H8402
MPN-Nr.H84-1031
MPN-Nr.H84-1032
Material-Nr.H84-1030
Vendor / Distributor
L8400
Info-Record5300000XX
Info-Record5300000XX
Assumptions: Electronical component has one material number and one price Update of price in Purchase Order (PO) Material delivered by one Distributor (e.g. exchangeable electronical component) The AMPL (Approved Man. Part List) specifies, which components from which manufacturer can be reused MPN Information can only be seen in PO (Print version) but not in PO document in PO only inventory managed material-number
Assumptions: Electronical component has one material number and one price Update of price in Purchase Order (PO) Material delivered by one Distributor (e.g. exchangeable electronical component) The AMPL (Approved Man. Part List) specifies, which components from which manufacturer can be reused MPN Information can only be seen in PO (Print version) but not in PO document in PO only inventory managed material-number
MTS-Production w. Batch Management, WM and HUMMPN Processing
SAP AG 2006
Order proposal (planned order)
Order creation
Availability check
Order settlement
Goods Receipt
Order headerOrder header
OperationsOperations
ComponentsComponents
CostsCosts 2050
100
Material withdrawal
Serial Number Assignment
Production Order
MTS-Production w. Batch Management, WM and HUMProduction Order Processing
Scrap Processing Rework Processing
Order release and batch determination
for components Finished / semifinishedGoods
SAP AG 2006
Conversion of planned order to production order
Manual execution of material availability check and control of the missing parts list
Goods receipt of missing parts into plant stock. This operation triggers the workflow event (optional)
The MRP planner is informed about the situation change by means of the workflow or a standard customized method by SPRO (optional)
MTS-Production w. Batch Management, WM and HUMMissing Part Management
SAP AG 2006
Manually ATP Check
GR of Missing parts
Missing Part ListH84-1050
Workflow
Information for MRP controller
Production Order
Purchase Order
MTS-Production w. Batch Management, WM and HUMMissing Part Management
Missing Part Management
Missing Part Management
SAP AG 2006
MRPMRP
Convert Planned Order Convert Planned Order
Operation confirmationOperation confirmation
Goods ReceiptGoods Receipt
Production Order Rel.Production Order Rel.
Need to Rework
N
Y
Select Reference Operation Set
Select Reference Operation Set
Insert Reference Operations Set to POInsert Reference
Operations Set to PO
Confirmation Rework Operations
Confirmation Rework Operations
MTS-Production w. Batch Management, WM and HUMRework Process
Planned independent requirements/sales orderPlanned independent
requirements/sales order
Planned Orders/ Purchase Requisitions
Planned Orders/ Purchase Requisitions
Rework ProcessRework Process
SAP AG 2006
Production Plant Production Plant
10
Receivingstorage location
Production Order
Release
30
Quality Check
User Status Control
Trigger Point
Reference Operation Set
10
OperationsOperations
10 20
Rework Operations
20
Quality Check
Trigger Point
MTS-Production w. Batch Management, WM and HUMRework Process
SAP AG 2006
Goods receiptGoods receipt
Purchase Requisition for bulk material
Purchase Requisition for bulk material
External procurement
process
MRP run for bulk material
MRP run for bulk material
Goods issue bulk material to cost center
Goods issue bulk material to cost center
Bulk MaterialBulk Material
MRPMRP
Convert Planned Order Convert Planned Order
Operation confirmationOperation confirmation
Production Order Rel.Production Order Rel.
Planned independent requirements/sales orderPlanned independent
requirements/sales order
Planned Orders/ Purchase Requisitions
Planned Orders/ Purchase Requisitions
MTS-Production w. Batch Management, WM and HUMBulk Material Processing
SAP AG 2006
Scrap definition in master data:
Material master data (assembly scrap, component scrap)
BOM (operational scrap, component scrap, net indicator)
Routing (operational scrap factor)
Process Flow:
Convert planned order to production order and view its scrap calculation,
which impacts the quantity of input components and output assembly
Production order release and production start
Confirm production order at operation level and view the default
confirmation parameter values with effect of scrap definition
MTS-Production w. Batch Management, WM and HUMScrap Processing
SAP AG 2006
Scrap definition in master data
Scrap definition in master data
View scrap infoView scrap info
Scrap processing in confirmation
Scrap processing in confirmation
Operation confirmationOperation confirmation
Production Order Rel.Production Order Rel.
MRPMRP
Convert Planned Order Convert Planned Order
Planned independent requirements/sales orderPlanned independent
requirements/sales order
Planned Orders/ Purchase Requisitions
Planned Orders/ Purchase Requisitions
Goods receiptGoods receipt
• Material master• BoM• Routing
MTS-Production w. Batch Management, WM and HUMScrap Processing
SAP AG 2006
Prer.: Production Order
Processthe operations
Deliver printed forms to related sites
Release Production Order
Create production order with operations print production order
And pick list w. barcode
Scan barcode in the printed order
Finishing operation confirmed in the system
Print Procedure in SAP system
External workflow
Process: beginscanning procedure
Complete operations
Scan barcode For GI and confirmation
Beginning operation recorded in the system
Process: finishscanning procedure
Completeoperation process
MTS-Production w. Batch Management, WM and HUMBarcode Integration (optional)
SAP AG 2006
MTS-Production w. Batch Management, WM and HUMBarcode Integration (optional) – Forms: Traveller (DE)
SAP AG 2006
MTS-Production w. Batch Management, WM and HUMBarcode Integration (optional) – Forms: Traveller (EN)
SAP AG 2006
•The following functions are provided to support Batch Management for components and finished goods:
Batch determination according to batch status
Batch classification goods receipt for purchase order (raw materials) internal number assignment characteristics for batch classification
Batch creation for finished goods by production order release
Batch Management in WM Batch Management for picking according to batch search strategy (FIFO)
Batch Management with HUM
MTS-Production w. Batch Management, WM and HUMBatch Management
SAP AG 2006
MTS-Production w. Batch Management, WM and HUMWM/PP material staging in Production Supply Area
H84 -1040
Circuit Board
PCB 2L 8B 7.6
HALB
STORAGE LOCATION 0002
H84 -1045Panel
ROH
PD B LMWM
B
H84 -1047XXX
ROH
PD
H84 -1048XXX
ROH
PDWMWM
Production Supply Area PROD_MTS
for Work Center(s)
STORAGE LOCATION 0006 – WM F01
WM STORAGE TYPE 100 – PRODUCTION SUPPLY
WM STORAGE
TYPE 001
HIGH RACK STORAGE
WM STORAGE
TYPE 002
SHELF STORAGE
WM STORAGE
TYPE 003
OPEN STORAGE
WM STORAGE
TYPE …
….
Pick list item(1) Crate part(2) Rel. Order part(3)
SAP AG 2006
MTS-Production w. Batch Management, WM and HUMWM/PP Material Staging with Pick List Items (1)
Material master definition
Material master definition
WM stock in storage
WM stock in storage
Confirmation oftransfer order
Confirmation oftransfer order
Picking: transfer order for WM/PP- delivery
Picking: transfer order for WM/PP- delivery
Release of production order
Release of production order
Confirmation of prod. order: backflush -> GI
Confirmation of prod. order: backflush -> GI
• storage bin• supply area• control cycle
WM/PP-delivery (goods issue not relevant)
WM/PP-delivery (goods issue not relevant)
SAP AG 2006
MTS-Production w. Batch Management, WM and HUMWM/PP Mat.Staging w. Crate Parts(2)/Release Order Parts(3)
Material master definition
Material master definition
WM staging of crate parts/release order parts
WM staging of crate parts/release order parts
Confirmation oftransfer order
Confirmation oftransfer order
Replenishment after release of prod. ordersReplenishment after
release of prod. orders
WM stock in Storage
WM stock in Storage
Confirmation of prod. order: backflush -> GI
Confirmation of prod. order: backflush -> GI
• storage bin• supply area• control cycle
Transfer requirements + transfer orders
Transfer requirements + transfer orders
SAP AG 2006
Definition of handling units:
A handling unit is a physical unit that consists of the packaging materials (load carrier/ packaging material) and the goods contained therein. A handling unit is always a combination of materials and packaging materials. The MTS scenario uses handling units on finished good level. Two ways of packaging (= creating HU) are possible:
MTS-Production w. Batch Management, WM and HUMMTS-Production with Handling Units (HU)
GR PRODUCTION
MIGO (101)
Inbound Delivery
(FG / HU)
Goods on Storage Location
w/o HU (0003)
Packaging by the end of Production (1) Packaging before Delivery (2)
CreateHU
Outbound Delivery
(0084 FG/HU)
GI
Stock Transfer to FG Storage Location
(0003 0084 FG/HU)
SAP AG 2006
MTS-Production w. Batch Management, WM and HUMHandling Units - Packing by the end of Production (1)
Sales Order OutboundDelivery
Picking:Assigning
Batch +HU to
Delivery
HandlingUnit xxx
in Storage Location 0084
(FG H84-1000+ Pack.Mat.)
GoodsIssue
forDelivery
Sales/Delivery Process flow for FG H84-1000
GR for Production Order with
Transaction COWBPACK
Master data preparation for H84-1000 :
Material Master / View ‘Pl./Stor.1’:
Storage conditions ‘YH’
Material Master / View ‘Pl./Stor.1’:
Storage conditions ‘YH’
Picking location determination for outbound delivery=
Default St.Location‘0084’
Picking location determination for outbound delivery=
Default St.Location‘0084’
SAP AG 2006
MTS-Production w. Batch Management, WM and HUMHandling Units - Packing before Delivery (2)
Master data preparation for H84-1000 :
Material Master / View ‘MRP2’:Sloc MRP indicator ‘1’
Material Master / View ‘MRP2’:Sloc MRP indicator ‘1’
Stock of storage location 0084 excluded from MRP
Stock of storage location 0084 excluded from MRP
Material Master / View ‘Pl./Stor.1’:
Storage conditions ‘YH’
Material Master / View ‘Pl./Stor.1’:
Storage conditions ‘YH’
Picking location determination for outbound delivery=
Default St.Location‘0084’
Picking location determination for outbound delivery=
Default St.Location‘0084’
Material Master / View ‘MRP3’:Checking Group Avail. ‘YH’
Material Master / View ‘MRP3’:Checking Group Avail. ‘YH’
Availabilty check is carried on plant level
Availabilty check is carried on plant level
Sales Order
OutboundDelivery(Picking
Location 0084/ Stock = 0)
Picking:Assigning
Batch +HU to
Delivery
HandlingUnit xxx
in Storage Location 0084
(FG H84-1000+ Pack.Mat.)
GoodsIssue
forDelivery
Sales/Delivery Process flow for FG H84-1000
TransactionHUPAST:
Creating HU + Tran. Posting
SLoc 0003 SLoc 0084
SAP AG 2006
Costing variant
Display planned/actual costs
Cost elementsCost itemizationCost component split
Planned costsPlanned costs
Material costs
Costs for externalprocurement
Production costs
Material overheadcosts
Production overheadcosts
Costs for externalprocessing
Cost elementsCost elements::Gen. operation values
Standard valuesControl key “costing
indicator”
ResourcesResources
Formula key forcosting
Cost center
Activity type
Formula constants
Cost calculationlog
Ind. "Rel. to costing"
Price
MaterialMaterial components components
MTS-Production w. Batch Management, WM and HUMProduction Order - Preliminary Costing
OperationsOperations
Order type / plantOrder type / plant
SAP AG 2006
Production order cost Production order cost
Overhead calculationsOverhead calculations
- Work center- Standard value- Quantities
- Cost center- Activity types- Formulas
- Activity types
Operation
Internal activities costsMaterial costs
- Quantities- Prices
Work center Cost centerMaterialcomponents
- Periods
Activity cost
MTS-Production w. Batch Management, WM and HUMCost of Production Order
SAP AG 2006
Order Status
Pre-Released or Released Partially Delivered Finally Delivered or Technically Completed
Variances
DeliveryValue
Actual Costs
WIP atActual Costs
=WIP at
Actual Costs
=
-Delivery
Value
=
-
PREL
REL PDLV DLV
TECO
MTS-Production w. Batch Management, WM and HUMWIP and Variance Calculation in Lot-Based Cost Object CO
Actual Costs Actual Costs
SAP AG 2006
Material600
Product cost planningLotsize 1 PC
CO-CO-PCPC
Production Order Mat. C10150
8001.200
4002.400
-2.000
400
MaterialProductionSurcharge
GR
Variances
Actual Cost
CO-PC
Material MasterStandard Price = 2000
Target Version 0
Price 150 Qty 150 Structure 100 Scrap 0 Lotsize 0
Production1100
Surcharge300
Warehouse Price difference
Financial Accounting
2000 400
SettlementFI
CO-PA
MTS-Production w. Batch Management, WM and HUMSettlement of Production Order