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Transcript of Sap
Module : PP (Production Planning)
The SAP PP business processes uses the following organizational elements:
– Client– Company Code– Plant– Storage Location
Organizational Elements
Organizational ElementsClient
A Highest Hierarchical Level in SAP (e.g. a corporation)Used to Differentiate between a Development, Quality Assurance, and Production System within SAP R/3Common Set of Rules
Common Tables Common Master Files Common Data Bases
Standardized data across the client A vendor number and name is common across the client A customer is common across the client A material number and description is common across the client
BALANCING / (LEGAL)BALANCING / (LEGAL)ENTITYENTITY ==
Company Code ****
AssetsLiabilitiesRevenues
- Expenses
Profit/Loss
Organizational ElementsCompany Code
A company code represents an independent balancing/legal accounting entity, for example, a company within a corporate group.
Balance sheets and profit & loss statements, required by law, can be created at the company code level.
Organizational ElementsPlant
Usually a manufacturing facility, a warehouse, or a location that stocks , manages, and valuates inventory
May be a physical site with multiple manufacturing/production lines
May be multiple manufacturing/production lines at one physical site
Can be a physical location (cost centers may or may not be associated to a plant i.e. Administrative vs. Manufacturing cost centers)
Links to production (PP), materials management (MM), and sales and distribution (SD)
A plant is assigned to a company code Purchasing organization are assigned to plants.
Organizational ElementsStorage Locations
A storage location is the place where stock is physically kept within a plantA storage location has the following attributes:
There may be one or more storage locations within a plant.
Stocks are managed only on a quantity basis and not on a value basis at storage location level.
Physical inventories are carried out at storage location level.
Storage locations are always created for a plant.
Master DataList of Master Data in SAP PP Module are:
– Material Master– Bills Of Material– Work Centers– Routings
Master DataMaterial Master
Material Master
Material master record is a company's main source of material-specific data. It is used by all components in the R/3 Logistics System.
The integration of all material data in a single database object prevents the problem of data redundancy. Every area, such as Purchasing, Inventory Management, Materials Planning, and Invoice Verification can use the data stored.
Material Master
Since materials are processed by various user departments within a company and each department stores different information for the materials, the material master is subdivided into information grouped by user departments.
Each user department has a different view of the material master record and is responsible for maintaining the data to support its function.
The data maintained within a view may be valid for more than one organizational level.
Material Master
Material Master
Material Master
Material Master
Material Master
Material Master
Material Master
Base unit: Piece
Box(unit of issue)
Crate(order unit)
Pallet(sales unit)
416 72
Material Master – Units of Measure
Material Master
Material Master
Master DataBills Of Material
Bills Of Material
Bills Of Material
Bills Of Material
Bills Of Material
Bills Of Material
Bills Of Material
Bills Of Material
Bills Of Material
Bills Of Material
Bills Of Material
Bills Of Material
Bills Of Material
Bills Of Material
Bills Of Material
Bills Of Material
Bills Of Material
Master DataWork Centers
Work Center
Work Center
Work Center
Work Center
Work Center
Work Center
Work Center
Work Center
Work Center
Work Center
Work Center
Work Center
Work Center
Work Center
Work Center
Work Center
Work Center
Work Center
Master DataRoutings
Routing
Routings - Components
Routing - Components
Routings
Routing - Group
Routing - Group
Material Allocation
PRT Assignments
Sequences in Routing
Parallel Sequences
Scheduling in PP
Scheduling
Sub Operations in Routing
Scheduling
Production Planning• Demand Management• Material Requirement Planning
−Planning of Purchased parts−Planning of in house assemblies
Planning Process: Process flow
Demand planning cell
PPC
Production
MRP Run
Third Party Log
Vendor Web site
Demand (Weekly)
Production Requirement (Week wise, Model wise)
Planned Prod.
Confirmed Production
Planned Vendor Schedule
Confirmed Vendor Schedule
Dispatch plan
Central marketing office
Dispatch sheet
While doing planning, you need to decide which planning strategy to use when the customer places their order.
• Make-to-Stock Production− Make-to-stock production means we build stock in anticipation of customer
demand. We ship the customer order from our stock of finished goods
• Make-to-order Production− We wait for a customer order before we start production/procurement. i.e. We
produce as per demand from customer
Planning Process: Strategies
Dealer
Territory office
Area Office Area Office Area Office Area Office
Zonal
Central Marketing office
Consolidation of Demand
Territory office
PPC
Dealer Dealer Dealer Dealer Dealer
Planning process: Demand Planning
Demand management is the link between top-level requirements planning (SOP) and materials planning (MRP).Input for the demand program can come from several sources:
Planning Process: Demand Management
Materials Requirement Planning
MRP Overview
Uses of MRP
MRP Functions
MRP Prerequisites
Planning Run
Planning Run - Types
MRP - Control Parameters
Net Change Planning
Planning in Planning Horizon
Planning Run - Single Item
Single-item, Multi-Level Planning
Single-Level MRP
Multi-Level MRP
Total Planning
MRP Procedure
MRP Control Parameters
MRP Control Parameters
MRP Control Parameters
MRP Control Parameters
MRP Control Parameters
MRP Control Parameters
Net Requirements Calculation
Requirement Quantities
Safety Stock
Safety Time
Safety Time in Production
Lot Size Calculation
Lot Sizing - Overview
Static Lot Sizing
Period Lot - Sizing Procedure
Optimum Lot Sizing
Long Term Lot Sizing
Other Lot Sizing Features
Lot Size Rounding Profiles
Layout of MRP List
Stock Req. List - Layout
MRP List - Collective Display
MRP List - Functions
Exception Messages
Rescheduling Checks
Old / New Exception Message
Planned New Exception Message Order Conversion
Material Supply for Production
Collective Display
Search in Individual List
Current List - Functions
Pegged Requirements
Order Report
Planning Time Fence
Planning Time Fence
Scheduling in PP
Scheduling - Basic Dates
Scheduling - Production Time
Planning Process
PlantStock
MRP
OrderProposalExternal
ProcurementIn-HouseProduction
SupplyDemand
PlanningParameters
Planning Process
Production Execution
• Stock transfer to WIP location• Order Execution
−Production confirmation−Error handling
Planning Process
Planning Process
Production Execution
Physical MovementStorage Loc MAINStorage Loc MAIN Storage Loc WIPStorage Loc WIP
ProductionOrder
BOM
Work Center
Routings
Release Avail check
Goods issue
Production
Goods receiptConfirmation
TECO
Movefloorstock
Planned Order
Availability Check
Convert Order
Production Execution
Best PracticesLogistics PlanningMake-To-Stock Discrete ManufacturingProduction Subcontracting (External
Processing)Rework Processing (Stock-Manufactured
Material)Rework Processing (Work-In-Process)
Logistics Planning
• Purpose − The purpose of logistics planning is to make sure that future demand can be
satisfied by your company’s available resources and to point out situations where demand cannot be met in time or in the desired quantities.
• Benefits − Seamless Integration in complete planning cycle
• CO-PA SOP LTP Demand Planning • Key process flows covered
− Sales and Operation Planning − Long Term Planning
Purpose and Benefits:
Logistics Planning•This process sometimes is called ‘Sales and Operations Planning’. The process usually takes place in a simulative mode and at an aggregated (usually product group rather than end-item) level. Once a feasible production plan is found that satisfies demand it can be used as the basis for operational production planning (MRP and Detailed Capacity Scheduling).•The Best Practice scenarios in this section cover the following planning workflow: Planning/forecasting of future demand Aggregated production planning including capacity check in order to check at
product group level if demand can be satisfied (using the SOP functionality) Transfer of results to Long Term Planning (using the LTP module) to enable
simulation of material requirements, based on the production plan (s) Planning takes place in separate (simulative) planning versions within LTP Review and adjustments of planned requirements as needed Once the simulated requirements are accepted, the demand (independent
requirements) is then transferred to active demand management for detailed MRP and Production Planning / Scheduling in the active version.
Detailed Process Description:
Logistics Planning – Process Flow DiagramRe
venu
e Pl
anne
rSt
rate
gic
Plan
ner
Even
t
Acceptable Plan
Sales Qty Budget and Transfer to SOP (with CO-PA), Revenue Planning (172)
Operational Production Planning & Control(Production scenarios)
SOP Verification Demand Verification (Check Sales Plan)
Create Rough-Cut Production Plan
Periodic Sales and Operations Meeting
Operative Production Data
CO-PA = Profitability Analysis, SOP = Sales and Operations Planning, LTP = Long Term Planning, MRP = Material Requirements Planning
Transfer Rough Cut Production Plan to Inactive Demand Management
Copy to Active Demand Management
Execute LTP MRP
Create LTP Planning Scenario
No
Yes
Evaluate Capacity Planning
Sales Quantity forecast (179)
Make-To-Stock Production with Discrete Manufacturing
• Purpose − This scenario describes a business process, which is typical for companies with lot-
size oriented production. − The production scenario produces a finished good and all dependent components in
make-to-stock production (MTS). − Furthermore, the scenario is supported by the main cost object controlling functions
required, such as preliminary costing and period-end closing.• Benefits
− Production triggered by a production plan− Serial number and batch management included− Optional with: quality management, consigned inventory, external processing
• Key process flows covered− Creating Planned Independent Requirements− Material Requirements Planning at Plant Level− In-House Production (subassembly)− In-House final assembly (Finished Good)− Capacity Leveling − Confirming Assembly Activities
Purpose and Benefits:
Make-To-Stock Production with Discrete Manufacturing
This scenario describes a business process, which is typical for companies with lot size oriented production. The production scenarios consist of both goods movements (goods issues and receipts) and confirmation of completion of the production order.
Furthermore, the scenario is supported by the main cost object controlling functions required, such as preliminary costing and period-end closing.
The typical planning process starts with sales quantity planning. The previous period’s actual sales figures can be used as a basis for future planning.
In Sales and Operations Planning, you ensure that production stays in line with sales so that you may create the production plan synchronously to sales. The planning data is transferred from Sales and Operations Planning to Demand Management. Demand Management generates independent requirements, which are used in the subsequent Material Requirements Planning (MRP) run.
In material requirements planning, the bill of materials (BOM) for the top-level material demand gets exploded and production is planned right down to procured component level. MRP results in planned orders being generated for the material to be produced.
If insufficient warehouse stock is available, purchase requisitions are created for the raw materials required. When the order is created, target costs are calculated for the order lot size (preliminary costing).
During the production process, costs incurred are updated on the order, which enables you to keep track of and compare target costs and actual costs at any time.
Period-end-closing activities are applied to the order. This includes Work In Progress calculation and variance calculation.
After this, Work in Progress is settled to financial accounting and production variances are settled to management and financial accounting.
Detailed Process Description:
Make-to-Stock Production – Discrete Industry – Process Flow DiagramM
anuf
actu
ring
Even
tPl
ant
Cont
rolle
r
Period End Closing “General” Plant(181)
Material Requirements Planning at Plant Level & Evaluation of Stock / Requirement List
Beginning of Planning Cycle
Purchase Requisition
MRP List
Inventory @ Standard. Cost
Prod
uctio
n Pl
anne
rPeriodic Plan Revision
Release Production Order
Capacity Leveling
Material Staging for Planned Orders
Confirming Assembly Activities/ Final Confirmation
Semi-Finished Goods Receipt
Goods Issue/ Back flush
Update Capacity
Goods Receipt Slip
Pick List
Order PrintPlanned Orders
Capacity Leveling O.k.?
Material Available?
Buye
rW
are-
hous
e Cl
erk Goods Receipt
Slip
Procurement of Stock Material with QM (127)
Procurement & Consumption of Cosigned Inventory (139)
Stra
tegi
c Plan
ner Creating
Planned Independent Requirements
ConvertPlanned Order to Production Order
Inventory Consumption @ Standard. Cost
Procurement w/o QM(130)
Finished Goods Receipt
MM Subcontracting (138)
PP-Subcontracting (External Processing)(150)
No
Yes
No
Yes
Logistics Planning (144)
1
Make-to-Stock Production – Discrete Industry – Process Flow DiagramPr
oduc
tion
Supe
rviso
r
1 Review Operation List
Even
t
Production Subcontracting (External Processing)
• Purpose − During the Manufacturing process, when a "Planned Order" for Production is
converted to a "Production Order", the system will check to see if there are any routing/work-center operations which require external processing. External processing is when you have individual production steps, that are operations or sub-operations, which are performed outside of your company by a vendor. This type of processing is particularly important for subcontracting. It can also provide a company with a feasible alternative to in-house processing, if capacity bottlenecks occur.
• Benefits − An outline agreement can specify that a certain operation of the production order
is executed by an external subcontractor on a regular basis− In the case of capacity bottlenecks, the assembly procedure of the finished product
can be assigned to a subcontractor• Key process flows covered
− Creating Purchase Order for External Processing− Goods Receipt for “subcontracting” Purchase Order− Enter Invoice− Periodic Payment
Purpose and Benefits:
Production Subcontracting (External Processing)
•Production Subcontracting (External Processing)− When a Production Order is scheduled, external operations need to be taken into account. The
duration of an external operation is calculated either by using the planned delivery time or using the standard values. The system automatically creates a purchase requisition for the operation or sub-operation that requires external processing. The Production scheduler should inform the buyer they need to check the workload for requisitions that require external processing.
− When data is maintained for an external activity, a cost element is specified. The cost element determines how the external activity is to be valuated. A decision needs to be made as to whether an operation or sub-operation is processed externally via its control key. In the control key, it is determined whether externally processed operations are scheduled on the basis of their standard values or the planned delivery time. This information is needed to settle externally processed operations and sub-operations that have been marked as relevant for costing in their control keys.
− Purchasing should not convert the purchase requisition until the external processing is required. The reason for this is that any quantity changes on the production order will automatically update the requisition.
− Once the purchase order is created it is printed and sent to the vendor. The purchase order informs the vendor which service is required. The buyer/planner/scheduler creates a manual shipping document and provides the information to the shipping department on what components need to be gathered for the external processing and ships the components to the vendor.
− When the vendor has completed the external processing, the material is shipped back. The warehouse clerk receives the externally processed goods back into the warehouse. The vendor service is reflected on the production order via an operation confirmation. The purchase order and the production order show the quantity received.
− The goods receipt of an externally processed material causes the status of the operation to be updated: For a partial delivery of an external process operation, the status is: EOPD (External operation - partial delivery) and for final delivery of a external process operation the status is: EOFD (External operation - final delivery).
Detailed Process Description:
Production Subcontracting (External Processing) – Process Flow DiagramPu
rcha
ser
Vend
or
War
ehou
se
Cler
k
Create PO from Purchase Req (Vendor assigned by Info record)
Vendor Receives Material and Performs External Services
Ship Material to Vendor
Print Purchase Order
Subcontract Services GR/IR
PP = Production Planning, RFQ = Request for Quotation, PO = Purchase Order, GR/IR = Goods Receipt/Invoice Receipt, PPV = Purchase Price Variance
Ship External Material Back to Plant
Incoming Vendor Invoice
Completion Confirmation of Production Order
Production Order Generates Purchase Requisition for External Services
Goods Receipt for Subcontracting PO
Deliver Material Back to Shop Floor
Acco
unts
Pa
yabl
e Ac
coun
tant
Even
t
Invoice Receipt
GR/IR PPV Vendor
Periodic Payment: Accounts Payable (158)
Perform External Services
Prod
ucti
on
Supe
rvis
or Check Order Operations
Rework Processing (Work-In-Process)
• Purpose − Processing of defective material on a production order.
• Benefits − Scraps at defined operation automatically trigger rework process. − After rework, additional activity and material consumption can be confirmed. − Fully integrated in the production process
• Key process flows covered− Confirming Production Activities− Confirm Scrap defective material− Confirm Parent Order at Rework Operation− Continue Shop floor-Activities
Purpose and Benefits:
Rework Processing (Work-In-Process)
This scenario focuses on a rework process within production. All required rework activities are related to the parent production order. For this reason, errors are recognized and corrections initiated such as insertion of a rework operation within the same production order. The additional rework operation is confirmed and settled within the original production order, causing production variances within controlling and price differences for the dedicated product.
Detailed Process Description:
Rework Processing (Work-in-Process) – Process Flow DiagramSh
op F
loor
Spe
cial
ist
Even
t
Any Complaint Quantity to Be Scrapped?
Confirm Scrap Defective Material
Confirming Production Activities
No
End Process
Insert Rework Operation on Parent Production Order Automatically
Confirm Parent Production Order at Rework Operation for Non-Defective Quantity
Scrap Defective Quantity that Can’t Be Reworked
Confirm Parent Production Order for Reworked Quantity That Can Proceed to Subsequent Operations
Continue Shop-Floor-Activities for Non-Defective-Quantity
Yes
Rework Processing (Stock-Manufactured Material)
• Purpose − This process covers the rework of defective manufactured materials
that are found in the warehouse. • Benefits
− Transparent costs for rework activities− Use of all standard shop-floor control functionalities is possible
• Key process flows covered− Create rework production order− Goods issue for defective material− Confirmation of rework production activities− Posting goods receipt for rework production order
Purpose and Benefits:
Rework Processing (Stock-Manufactured Material)
•Rework Processing (Stock-Manufactured Material)•For materials that can be reworked, a production order is created for correcting the defect. The costs associated with the rework production order will be settled to profitability as a material variance.
Detailed Process Description:
Rework Processing (Stock-Manufactured Material) – Process Flow DiagramEv
ent
Prod
ucti
on
Plan
ner
Prod
ucti
on
Supe
rvis
orW
areh
ouse
Cl
erk
Create Rework Production Order
Identified Component in Stock Requires Changes
End Process
Confirmation of Rework Production Activities
Posting Goods Receipt for Rework Production Order
Goods Issue for defective Material
Shop
floo
r Sp
ecia
list
Review Order Confirmations
Release Rework Production Order