PP Presentation

80
Production Planning

description

Presentation

Transcript of PP Presentation

Page 1: PP Presentation

Production Planning

Page 2: PP Presentation

SAP America LO215U02/ 1

Organizational unitsOrganizational units

Enterprise

Controlling areas

Sales organizations Purchasing organizations

Company codes

Valuation areas

Storage locations/batches/special stock

Demand management

MRP

Inventory mgmt.

Demand management

MRP

Inventory mgmt.PlantsPlants

PP Orders and Organizational Structures

Production control

Production order

PP - Organization Structure

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CUSTOMERS

VENDORS

MATERIALSMANAGEMENT

SALES & DISTRIBUTION

FI - GL

FI - AP FI - AR

PRs for mtls thro MRP run

Issue of mtls for prodn

Sch

ed

ule

s /

Pu

rch

ase

Ord

ers

Receip

t of M

tls

Updation of Stock

Deliv

ery

/ In

voic

e

Sale

s

Pla

n

Demand thro MRP

Moving Finished Goods to Sales Yard

Con

su

mp

tion

En

trie

s t

hro

’ b

ackfl

ush

ing

Sales

Rev

enue

/ Cos

t of S

ales

Subsidiary Ledgers

Value flow into the General Value flow into the General LedgerLedger

Consumption Entries

thro’ issue to Prodn

Order

ASSETS

PRODUCTION PLANNING

Invoice verification with GR

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Bills Of Material

Work CentersMaterials

RoutingInspectionPlans

Production Facilities

Capacities

PP Basic Data Production Resources/Tools

PRODUCTION PLANNING BASIC PRODUCTION PLANNING BASIC DATADATA

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PRODUCTION MASTER PRODUCTION MASTER DATADATA

Material Master (MRP & Work Material Master (MRP & Work Scheduling)Scheduling)

Bill Of Materials (BOMs)Bill Of Materials (BOMs) Work Center (Cost Center & Activity Work Center (Cost Center & Activity

Types)Types) RoutingsRoutings Production Resource Tools (PRT)Production Resource Tools (PRT)

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MATERIAL MASTERMATERIAL MASTER

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Plant

Company

Storage Locations

Purchasing Organization

Purchasing Group

• A plant can be a physical plant

or a logical section of a plant

• Storage locations are areas where

materials are stored within a plant

• A purchasing organization can buy

for a number of plants

• A purchasing group is a sub-set

of a purchasing organization

MATERIALS MANAGEMENT MATERIALS MANAGEMENT ORGANIZATIONORGANIZATION

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Material Typee.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 SectorControls what fields appear on what screens

Unit of Measuree.g. Piece, box, crate, palletDifferent parts of the business can measure quantities in different units

Multi-Lingual Texts

MATERIAL MASTER MATERIAL MASTER DATADATA

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MATERIAL MASTER MATERIAL MASTER RECORDRECORD

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General Data St. Loc. Specific Data Plant Specific DataSales 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 relevantfor planning andproduction

e.g.

MRP profile

Production costs

Planning data

Valuation

Data referring to storage and inventory management

e.g.

Quantities

Special stock

Warehouse attributes

MATERIAL MASTER MATERIAL MASTER DATADATA

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ProductData

EngineeringDesign

Sales

Production

Stock

Finance

Purchasing

Master data is a key pieceof information in the system

Master data can be seen froma number of views

Each view can correspondto an SAP module

Each view has a numberof 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 VIEWSMASTER DATA VIEWS

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EngineeringDesign

Sales

Production Stock

Finance

Purchasing Texts copiedto purchase orders

Maintains stock levels by plant, storage location, and batch

Data used tocalculate MRP

lead times

Controls customer ordering rules

for material

Controls whichGeneral Ledger

Account is updatedMaterial descriptionused in reporting

ProductData

EXAMPLES OF HOW DATA IS USEDEXAMPLES OF HOW DATA IS USED

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ProductProduct

Component 2Component 2

Component31

Component31

Component32

Component32

Component33

Component33

Component 3(assembly)

Component 3(assembly)Component 1Component 1

STOCK MATERIAL NON-STOCK MATERIAL VARIABLE-SIZED ITEM TEXT ITEM SCRAP WASTE

STOCK MATERIAL NON-STOCK MATERIAL VARIABLE-SIZED ITEM TEXT ITEM SCRAP WASTE

Components:

BILLS OF MATERIALBILLS OF MATERIAL

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TYPES OF BILLS OF TYPES OF BILLS OF MATERIALMATERIAL

Simple BOMSimple BOM

Variant BOMVariant BOM

Multiple BOMMultiple BOM

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SIMPLE BILL OF MATERIALSIMPLE BILL OF MATERIAL

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Several similar products are represented in one bill of material

Bike withBlack Frame

HandlebarAssembly

Bike withRed Frame

Bike withBlue Frame

Red Frame/Fork Assembly

Blue Frame/Fork Assembly

Chrome Forks Black Frame

Red Frame

Blue Frame

Qty. for variant 1Qty. for variant 2

Black Frame/Fork Assembly

VARIANT BILL OF MATERIALVARIANT BILL OF MATERIAL

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A finished product can be manufactured using different methods of production with different components or component quantities

Qty. for alternative 1Qty. for alternative 1Qty. for alternative 2

Alt 1 - Lot Size 1 to 100Alt 2 - Lot Size 101 to 500Alt 3 - Lot Size 501 to 1000

Qty. for alternative 2

Pigment 2

Blue Paint

Solvent Water Pigment 1

One material but with different combinations ofcomponent material based on production method

MULTIPLE BILL OF MULTIPLE BILL OF MATERIALMATERIAL

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WORK CENTERWORK CENTER

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AssemblyLine

Machines

People

ProductionLine

Capacity Requirements Planning

Scheduling, Execution Times

Costing

Work Centers

Cost Center

WORK CENTERWORK CENTER

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Cost Center

Oper 0010 Oper 0020 Oper 0030 Oper 0040

Routing with standard values

Set Up (SET)

Machine (MACH)

Labor (LAB)

Work Centerwith Activitiesduring production

Activity Rates

Set Up $70.00

Mach $60.00

Labor $80.00

Overhead $70.00

COST CENTER ASSIGNMENT TO COST CENTER ASSIGNMENT TO WORK CENTER FOR OPERATION WORK CENTER FOR OPERATION

COSTINGCOSTING

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Work Center Capacity

Oper 0010 Oper 0020 Oper 0030 Oper 0040

Routing with standard values

Set up Formula

Machine Time Formula

Teardown Formula

Work CenterFormulas

Set up 1.0 hrs

Machine 5.5 hrs

Teardown .5 hrs

Operation Std Values

Work Center Schedule

USE OF FORMULAE IN USE OF FORMULAE IN WORK CENTERWORK CENTER

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8 hrs

1 hr

7 hrs

1 hr

6 hrs

WorkingHours

BreakTime

WorkingHours less

Breaks

PlannedDowntime

ProductiveWorkingHours

AVAILABLE CAPACITY AT A AVAILABLE CAPACITY AT A WORK CENTERWORK CENTER

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ROUTINGROUTING

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Routing

Operation 30Operation 20Operation 10

Work Centre: PP-ASSEM

Control Key:- Time Tkts- Costing

Operation Text:Pre-assemble

frame

Std Values:Lab:10 mins

Mach:10 mins

MaterialsComponents

BOM

Process Resource Tool

(PRT)

ROUTING STRUCTURE VIEWROUTING STRUCTURE VIEW

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OPERATIONSOPERATIONS

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Operation types

(Main) operation

Sub-operationSub-operation Hierarchy Costing

Completion confirmation 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 levelcombined operation (main) operation

OPERATIONOPERATION

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Operation0010

Operation0010

Operation0020

Operation0020

Sub Operation0010 / 10

at Work Center A1

Sub Operation0010 / 10

at Work Center A1

Sub Operation0010 / 20

at Work Center A2

Sub Operation0010 / 20

at Work Center A2

Sub Operation0010 / 30

at Work Center A3

Sub Operation0010 / 30

at Work Center A3

Schedule at Operation Level

Useful when processing for operation 0010occurs over multiple work centers

Capacity Planning & Costingpossible at Sub Operation Level Level

OPERATION/SUB-OPERATION/SUB-OPERATIONOPERATION

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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 AND WORK CENTER AND ROUTINGROUTING

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REFERENCE OPERATION REFERENCE OPERATION SETSET

• It is a type of routing that comprises of a series of operations that recur frequently. It is used to create a routing.

• A reference operation set cannot be used directly in production.

• All the changes you make in the reference operation set are automatically implemented in the referenced operations of the routing.

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Reference Operation

Set Z

Reference Operation

Set Y

Oper 0010Oper 0010

Oper 0020Oper 0020

Oper 0030Oper 0030

Oper 0040Oper 0040

Oper 0050Oper 0050

Oper 0022Oper 0022

Oper 0024Oper 0024

Oper 0026Oper 0026

Oper 0045Oper 0045

Reference Operation Set X

REFERNCE OPERATION REFERNCE OPERATION SETSET

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SEQUENCES IN SEQUENCES IN ROUTINGROUTING

Standard Sequence A linear series of operations, oriented on the production process, from which parallel and alternative sequences can branch off.

Parallel Sequence A parallel sequence enables you to process several operations at the same time. A parallel sequence is carried out as the same time as the corresponding section in the standard sequence. It is a special form of overlapping operations.

Alternative Sequence A linear set of operations that is an alternative to a sequence of operations in the standard sequence.

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StandardRouting represents a standard sequence defining production procedure

ParallelRouting includes processes which can be performed simultaneously to achieve time efficiencies

SplitRouting includes processes which can/must be split across a numberof work centers

OverlappedRouting defines process where one operation is to overlap with the following operation

SEQUENCES IN ROUTINGSEQUENCES IN ROUTING

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Op. 10Op. 10

Op. 20Op. 20

Op. 30Op. 30

Op. 10Op. 10

Op. 30Op. 30

Routing BOM

ProductProduct

MATERIAL MATERIAL ALLOCATIONALLOCATION

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RoutingRouting

MaterialMaster

MaterialMaster

WorkCenter

WorkCenter

Base Unit of MeasurePlanner GroupShort Text

Control KeyStandard ValuesActivitiesStandards Text KeyHR data

ROUTING DEFAULT ROUTING DEFAULT VALUESVALUES

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OPERATION LEAD TIMEOPERATION LEAD TIME

Float Before Float AfterOper 0010 Oper 0020 Oper 0030

Queue | Setup | Process | Teardown | Wait | Move

Execution TimeInteroperation Time

Interoperation Time

Operation Lead Time

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Since malfunctions and other disturbances in the production process can never be fully prevented, the system carries out scheduling using a float before and a float after production.

FLOATS BEFORE AND AFTER FLOATS BEFORE AND AFTER PRODUCTIONPRODUCTION

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In addition to the floats before and after production, you can define an operation float in the form of a queue time. The queue time is used to compensate for malfunctions and delays within an operation.

The queue time is the interval between the earliest and latest dates of the operation (see the following figure). During each scheduling run, the system calculates the earliest and the latest dates for the individual operation segments.

QUEUE TIMEQUEUE TIME

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FunctionThe function of Demand Management is to determine requirement quantities and delivery dates for finished products and important assemblies. The result of Demand Management is the demand program.

PrerequisitesTo create the demand program, you must define the planning strategy for a product. Planning strategies represent the methods of production for planning and manufacturing or procuring a product.

Result.

The demand program is created in the form of planned independent requirements. Demand Management uses planned independent requirements and customer requirements. Customer requirements are created in sales order management.

DEMAND DEMAND MANAGEMENTMANAGEMENT

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• 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 : 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.

PLANNING STRATEGY PLANNING STRATEGY MAKE TO STOCK (MTO)MAKE TO STOCK (MTO)

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Final assembly is initiated by the customer sales order

Stop production at sub-assembly level

Final assembly pull

Example : 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

PLANNING STRATEGY- PLANNING STRATEGY- WITHOUT FINAL ASSEMBLYWITHOUT FINAL ASSEMBLY

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• 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

PLANNING STRATEGY-PLANNING STRATEGY- MAKE TO ORDER MAKE TO ORDER

PRODUCTIONPRODUCTION

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MRP

Lot sizing

Order schedulingand generation

Internal productionand external purchasing

Net requirementscalculation

Bill of MaterialExplosion

Forecasting

MATERIALS REQUIREMENT MATERIALS REQUIREMENT PLANNINGPLANNING

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MRP OVERVIEWMRP OVERVIEW

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MRP FEATURESMRP FEATURES• Net Requirement Calculation:

In MRP, the system compares available warehouse stock or the scheduled receipts from purchasing and production with planned independent requirements, material reservations and incoming sales orders during the net requirements calculation. In the case of a material shortage the system creates an order proposal.

• Lot Sizing:

It calculates the quantity recorded in the order proposal according to the lot sizing procedure specified.

• Scheduling:

The order proposal is scheduled. For external procurement delivery and release dates are determined and for in house production the production dates are calculated.

• Planned Orders:

During MRP run planned orders are created which are converted to purchase orders for external procurement and production orders for in house production.

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MRPPlanningResult

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

MRPPlanningProcess

MRPPlanningProcess

Last planningrun results

Stock RequirementsList uses current data

Current Stock, Rqmts, Balances, planned Receipts, Issues

MRP LIST MRP LIST V/SV/S STOCK REQUIREMENT LISTSTOCK REQUIREMENT LIST

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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 OVERVIEWSTOCK OVERVIEW

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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 PlanningThe latest forecast is copied as requirements which are used to create order proposals

Deterministic PlanningMRP produces order proposal(s) to match the exact quantity of the requirements based on independent and dependent demands

Master Production SchedulingSimilar to PD but used for master schedule items

MRP TYPESMRP TYPES

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MRP: REORDER POINT MRP: REORDER POINT PLANNINGPLANNING

Reorder Point

Safety Stock

Order Date Delivery Date Time

Stock

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Static Periodic Optimum (Cost )

Lot for Lot

Fixed Lot size

Replenish up tomaximum stocklevel

Daily Lot size

Weekly Lot size

Monthly Lot size

Flexible period

Lot size accordingto planning calen.

Part period balancing

Least unit cost procedure

Dynamic Lot size creation

Groff reorder procedure

LOT SIZINGLOT SIZING

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Lot for Lot Order Quantity:

Shortage Quantity = Ordered Quantity

Replenishment up to Maximum Stock Level:

Stock required to achievemaximum stock level set in

the material master

Order Quantity =

Material Fixed Order

Quantity= Shortage

Quantity

Order =Fixed Order

QuantityIf

Order

Order

OrderFixed Lot Size:

Shortage Quantity >

Fixed Order QuantityIf

MRP STATIC LOT SIZINGMRP STATIC LOT SIZING

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PurchasingProcess Time

Vendor Planned Delivery Time

Desired Delivery DateRelease

Order Date

Today

Goods ReceiptProcess Time

Forward scheduling used for reorder point material

FORWARD SCHEDULING FORWARD SCHEDULING FOR EXTERNAL FOR EXTERNAL PROCUREMENTPROCUREMENT

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PurchasingProcess Time

Vendor Planned Delivery Time

Desired Delivery DateCalculated Order

Release Date

Future RequirementDate

Goods ReceiptProcess Time

MRP determines the basic scheduling dates using backward scheduling If the release date lies in the past, the system automatically switches to

forward scheduling

MRP PlanningDate -- today

MRP Planning Lead Time

BACKWARD SCHEDULING FOR BACKWARD SCHEDULING FOR EXTERNAL PROCUREMENTEXTERNAL PROCUREMENT

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Order ReleaseProcess Time

In-houseProduction Time

Order Finish Date

OrderStart Date

Future Requirement

Date

Goods ReceiptProcess Time

MRP determines the basic scheduling dates using backward scheduling If the release date lies in the past, the system automatically

switches to forward scheduling

MRP PlanningDate -- today

MRP Planning Lead Time

Order Release

Date

BACKWARD SCHEDULING BACKWARD SCHEDULING FOR IN HOUSE FOR IN HOUSE PRODUCTIONPRODUCTION

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MRP Controller Group of Materials for which controller

is responsible

Controller’s MRP Listing

Goods ReceiptGoods Issues

MRP Order Proposals and Planner Messages

from MRP Planning run.

Planner can drill down to review material movement activity

MRP LISTMRP LIST

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Regenerative Planning – all master schedule items are planned for a plant.

It is generally used during initial start-up to ensure 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.

PLANNING RUN PLANNING RUN TYPESTYPES

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Single-level, Single-Item PlanningPlanning carried out for a single item on a BOM. Dependent requirements are only created for materials on the next lower level

Multi-level, Single-Item PlanningPlanning carried out for the complete BOM structure of a material

SINGLE ITEM PLANNINGSINGLE ITEM PLANNING

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Daily Accumulation:

Sales Orders

Planned Individual Requirements

Reservations

Entriesfrom

Planning File

Warehouse Stock

+

Open Order Proposals

Shortages

Order Proposal

Coverage calculation per requirement date

NET CHANGE PLANNINGNET CHANGE PLANNING

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E1

Independent RequirementsCustomer Requirements

Planned Orders

Dependent Requirements

B2B1

R1 R2 R3

Planned Orders

DependentRequirements

DependentRequirements

Level 0

Level 2

Level 1Planned Orders

Planned OrdersPlanned OrdersPlanned Orders

MULTI LEVEL PLANNING MULTI LEVEL PLANNING STRUCTURESTRUCTURE

= Demand

= Supply

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SalesPlan

SOP

ProductionPlan

MPS

PlannedIndependent

Requirements

Customer IndependentRequirements

Requirements (Orders) from SD ModuleOffset

Keep Balanced

Order Proposals

MRP

Planned Orders

Production Orders

Purchase Requisitions

Demand Requirements

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

THE PLANNING CONCEPT IN THE PLANNING CONCEPT IN SAPSAP

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Independent Requirements:Sales Orders & Planned

Independent RequirementsDependent Requirements:

From BOM explosion

Timings Resource RequirementsQuantity Requirements

Start FinishJuly

1July

5 Labor MachineryRaw

Materials

1 2 3 4 5 6 7

Order Proposal

BOM explosion

Stock RequirementsList

MRP AND MPSMRP AND MPS

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Independent Requirements :Planned Independent Requirements:Are used for the anonymous (Non-order-specific) planning of production or procurement (eg. demand forecast)

Customer Independent Requirements:Are sales orders on the system. Sales Orders are generally copied directly into the PP system from the SD system, but they can also be entered manually

Dependent Requirements :Are directly related to or derived from the BOM structure for other items or end products. They are automatically generated during MRP

REQUIREMENT REQUIREMENT TYPESTYPES

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Material at 0010------------------------------• Material Number• Quantity• Date

Material at 0010------------------------------• Material Number• Quantity• Date

Operation 0020------------------------------• Work Center• Control Info• Operation Times

Operation 0020------------------------------• Work Center• Control Info• Operation Times

Order Header------------------------------ Settlement Rule Planned/Actual Costs Operation Sequence

Order Header------------------------------ Settlement Rule Planned/Actual Costs Operation Sequence

Operation 0010------------------------------ Work Center Control Information Operation Times

Operation 0010------------------------------ Work Center Control Information Operation Times

Material at 0010------------------------------ Material Number Quantity Date

Material at 0010------------------------------ Material Number Quantity Date

PRODUCTION ORDER PRODUCTION ORDER ELEMENTSELEMENTS

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Order HeaderMain View

Order HeaderMain View

Order Type Order Number Production Order Quantity Production Order Date

Order HeaderMaster Data

Order HeaderMaster Data

For Routing For Bill of Material For Costing

Order HeaderAllocation Data

Order HeaderAllocation Data

For Plant MRP Controller

Order HeaderAcct. Assignment

Order HeaderAcct. Assignment

Settlement Rates

Order HeaderOrder Monitoring

Order HeaderOrder Monitoring

Date Quantity

PRODUCTION ORDER PRODUCTION ORDER HEADERHEADER

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Material Number Requirement Quantity Requirement Date

Reservation Item Category Bulk Material Indicator

Operation Long Text

Operation Long Text

Text Key

ComponentOverview

ComponentOverview

ComponentGeneral Data

ComponentGeneral Data

PRODUCTION ORDER PRODUCTION ORDER COMPONENTSCOMPONENTS

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Material: A, Qty: 100 PCsScheduling Type: BBasic dates: Start/Finish

Components Operations0010 B 1 0010 PHNASM000020 C 1 0020 0030 0040

User fields:• General text data• Quantity data• Value data• Date fields

Production Order

0010 PHNASM00002000300040

PHNASM00Std Values:Setup: 005Prod.: 075TDown: 005

Routing

Work Center

A

B C

Bill of Material

PRODUCTION ORDERPRODUCTION ORDER

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MRP RequirementsMRP Requirements

Capacity RequirementsCapacity Requirements

Capacity EvaluationCapacity Evaluation

Work Center CapacityWork Center Capacity

MasterData

Material

BOM

Routes

WorkCenter

MasterData

Material

BOM

Routes

WorkCenter

Capacity Levelingto adjust capacityperiods

CAPACITY PLANNINGCAPACITY PLANNING

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Stock on Hand

150 Units

Reservationfor

50 Units

NetAvailable 150 100 300 100

Planned Orderfor

200 Units

Dependent Requirement

for 200 Units

Requirement for 50 Units are Available

MATERIAL AVAILABILITY CHECKMATERIAL AVAILABILITY CHECK

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Float Before Float AfterOper 0010 Oper 0020 Oper 0030

Queue | Setup | Process | Teardown | Wait | Move

Execution TimeInteroperation Time

Interoperation Time

Operation Lead Time

Material Master Lead Time

CAPACITY CAPACITY SCHEDULINGSCHEDULING

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A Production Order collects all costs associated with making an inventorable item. The order picks up” costs through the manufacturing process from the Bill of Material and the Routing.

Billof

Material

Routing

Production OrderSTATUS:

Created, Released,Confirmed, Delivered,

SettledOrder: 73 Type: PP01Plant: LR001System Status:CRT REL CNF DLV SETCQuantities: Total Produced: 100 Tons Scrap: .001 Confirmed: 100 TonsDates: Schedule 09/15/95 Confirmed 09/16/95

PRODUCTION ORDER AND PRODUCTION ORDER AND INVENTORY ACCOUNTINGINVENTORY ACCOUNTING

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CostCenter Formula

Routing

• Standard values• General standard values

Work center

• Formula constants

Activity type

Actual time/quantityActivity price

Costs

CALCULATING PRODUCTION CALCULATING PRODUCTION COSTSCOSTS

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Direct material costs

Indirect material costs

Direct production costs

Indirect production costs

Costingsheet

+

+ =

=

Material costs

Production costs

+

=Manufacturing costs

Indirect managementcosts

Indirect sales costs

Cost of goods sold

+

+

=

OVERHEAD COSTINGOVERHEAD COSTING

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Order

Delivery

Goods issue

Invoice

Material Requirements Planning

Production

Sales orderstock

Target—

Actual—

Individual customer requirements

Production memo

Reduction of

sales order stock

MAKE TO ORDER PRODUCTIONMAKE TO ORDER PRODUCTION

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ISSUE MATERIALS TO ORDER

SelectBOM

SelectRouting

ScheduleTimes & Dates

CalculateCapacity

Purchase Requisitions

GoodsIssue

Production Order

CalculatePlanned Costs

RELEASEORDER

Check Availability

Print Shop Floor Papers

CREATEORDER

CreateRequired Purchases

CONFIRMCOMPLETION

RECEIVE COMPLETE GOODS INTO STOCK

GoodsReceipt

Confirmation Slip

CalculateActual Costs

ActualLabor

THE PRODUCTION THE PRODUCTION CYCLECYCLE

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Repetitive Manufacturing- Repetitive Manufacturing- OverviewOverview

Flexible Production Strategy Flexible Production Strategy Production carried out in Production LineProduction carried out in Production Line Production for Longer PeriodsProduction for Longer Periods Order less Production - Managed through RS Order less Production - Managed through RS

HeaderHeader One time Master data creation with period One time Master data creation with period

validityvalidity Effective Version ControlEffective Version Control Process execution simpleProcess execution simple Suitable for continuous and repeated type of Suitable for continuous and repeated type of

production.production.

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Repetitive Manufacturing - Repetitive Manufacturing - MastersMasters

Material Master ( MRP 4 - Production Material Master ( MRP 4 - Production Version)Version)

Bill Of MaterialBill Of Material Work Center (Production Line)Work Center (Production Line) Rate Routing Rate Routing Run Schedule HeaderRun Schedule Header Standard Cost EstimateStandard Cost Estimate

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Repetitive Manufacturing - Key Repetitive Manufacturing - Key ElementsElements

Repetitive Manufacturing Profile (REM)Repetitive Manufacturing Profile (REM)

Production VersionProduction Version

Product Cost CollectorProduct Cost Collector

SCE Release and ValiditySCE Release and Validity

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Repetitive Manufacturing - Repetitive Manufacturing - ProcessProcess

REM Profile creation & inclusion in REM Profile creation & inclusion in MMMM

Work Center (Prod..Line) with Cost Work Center (Prod..Line) with Cost Center and Activity TypesCenter and Activity Types

Rate Routing Creation (Control Rate Routing Creation (Control Keys)Keys)

Production Version CreationProduction Version Creation Standard Cost Estimate ReleaseStandard Cost Estimate Release Product Cost Collector creation.Product Cost Collector creation.

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Repetitive Manufacturing - Repetitive Manufacturing - PlanningPlanning

MRP RunMRP Run Requirements in RS Planning TableRequirements in RS Planning Table Edit RS table for Roll over etc..Edit RS table for Roll over etc.. Firming Requirements (if required)Firming Requirements (if required)

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Repetitive Manufacturing - Repetitive Manufacturing - ExecutionExecution

Pull List - Check for Components Pull List - Check for Components availabilityavailability

Backflushing - Component & ActivityBackflushing - Component & Activity Single Step / Multi step Backflush Single Step / Multi step Backflush

(Reporting Point / Final Backflush)(Reporting Point / Final Backflush) Reprocessing List CorrectionReprocessing List Correction

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