Introduction SAP Manufacturing Execution (ME)

Dr. Djamal ZianiKing Saud University

Business Scenario

• Engineering informed you that they updated the BOM for the redesigned pump.

• You are a material planner. You want to verify the changes and you want to view other master data (work center, routing) used in ME.

• Before scheduling production you realize that you need to rerun MRP due to the change in the BOM

• MRP will generate a planned order. You will convert one of them to a production order.

• You will process the steps of issuing material to production order, confirming activities, receiving the finished pump into inventory, …

Objectives

Organizational Level in ME

• Client• Company code• Plant• Storage location

Master Data Used

• Material Master• Bill Of Material (BOM)• Routing• Work center/Resources• Task lists• PRTs (Production resource tools)

Material Master

Bill of Material (BOM)

• The BOM are single level.

• The items of the BOM can themselves contain further BOM

Work Center (Resource) Data

Work Center (Resource) Data

• Basic data:– Task list usage: specify the task list types (routing, rate

routing, master recipe, equipment task list, or inspection plans).

– Standard value: is a planned value used to carry out an operation, such as the execution time. They are used in costing, scheduling, and capacity requirements planning in order to calculate costs, execution times, and capacity requirements.

Work Center (Resource) Data

• Default values– When you maintain the operations in the routing, rate

routing, master recipe or production/process order, the system copies or references this information.

• Cost center– By assigning a cost center to a resource, you link the

resource to cost accounting and can now carry out product and order costing.

Work Center (Resource) Data

• Capacities– Available capacities of resources are the basis for

scheduling process orders. They are also required for capacity requirements planning and shop floor control.

• HR assignment– Assign people to a work center.

• Scheduling– Make the schedule in the work center.

Routings

• Routings contain the steps that are necessary for production: – The corresponding operations– The sequence– Work center in which these operations are to be

executed– Time elements that are relevant for scheduling

the operations

Routings

Routings and BOM

Production Order processing-Glossary

• WIP: Work in Process

• PDC : Plan Data Collector

• Material withdrawal: Get the components for the assembly

• Material Staging : Transferring the material from your main store to production location.

Production Order processing

Order Creation Options

Elements of Production Order

Order Release Functions

Availability Check (Material, Capacity, PRT )

Production Order: Goods issue Posting

• The goods issue posting (GI) is executed for a consumption of a material component for production order

• The following functions are executed:– Storage location update– Reservation – Determination of actual costs: evaluation and update order– Creation of:

• Material document: goods movement (MM stock point of view)• Accounting document: : goods movement (financial accounting point of

view)• Cost accounting documents: serve various analysis purposes (financial

controlling point of view)

Production Order: Goods issue Posting

Confirmation Procedures

Production Order: Goods receipt Posting

• The goods receipt posting (GR) realizes the stock receipt of a produced product.

• The following functions are executed:– Storage location update– Reservation – Determination of actual costs: evaluation and update order– Creation of:

• Material document: goods movement (MM stock point of view)• Accounting document: : goods movement (financial accounting point of

view)• Cost accounting documents: serve various analysis purposes (financial

controlling point of view)

Period-End Closing: Settlement

Period-End Closing: Settlement

• Initial or first contribution margin for the period: Compare the standard cost of goods manufactured for the product with the revenues

• Second contribution margin for the period: the variances between the actual costs and the standard cost of goods manufactured.