Class-10-SCM300-REM-PP-PI.pdf

SCM300 Supply Chain Manufacturing Overview

SCM300

Supply Chain Manufacturing Overview

THE BEST-RUN E-BUSINESSES RUN SAP SAP AG 2003  SAP AG©2003

System R/3 ERP, Enterprise Extension Set 1.10 2003/Q3 50063193

© SAP AG

SCM300

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Appendix: mySAP Business Suite and Production

Contents: mySAP Business Suite: Solutions, Key Areas, Components Key Areas in the mySAP SCM Solution Roles in Production Components in the Key Area Production Master Data for Production Integration of Production in Planning

 SAP AG 2003

© SAP AG

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Appendix-1

Value Creation Using the mySAP Business Suite SAP xApps

mySAP Business Suite

mySAP SCM

mySAP SRM

mySAP Financials

mySAP CRM

mySAP HR SAP BI

Corporate Services Operations

SAP NetWeaver

SAP Enterprise Portal

Industry Solutions

SAP Customer Service Network

mySAP PLM

mySAP ERP

SAP R/3 Enterprise

Application Platform (Web AS) People Integration (Portal) Information Integration (BW, MDM) Process Integration (XI) SAP Business One

 SAP AG 2003

The mySAP.com Business Suite offers cross-industry and industry-specific solutions. Cross-industry solutions are, for example, mySAP SCM (Supply Chain Management) and mySAP PLM (Product Lifecycle Management). Each solution has different key areas. The mySAP SCM solution, for example, contains the key areas SCM planning and SCM production. Each solution and key area is technically realized using components. The key areas SCM planning and SCM production use the components SAP R/3, SAP APO (Advanced Planning and Optimization) and SAP BW (Business Information Warehouse). The mySAP Business Suite is based on SAP NetWeaver, which is an open, scalable infrastructure that allows the integration of heterogeneous environments (SAP and non-SAP components) The SAP NetWeaver comprises the SAP Web Application Server, the portal infrastructure, the exchange infrastructure and information integration. The SAP Web Application Server supports native Internet technology (HTTP, XML), JAVA and ABAP. In addition to the solutions themselves, SAP offers corresponding services: The SAP Customer Service Network allows customers to maximize the return of investment using the mySAP Business Suite. The SAP Customer Service Network comprises: Business Solutions Consulting (Business Solution Design: concepts of business solutions, project management, Continuous Business Improvement); Solutions Operations Services (technical implementation and continuous optimization); training; support (24x7 support, EarlyWatch, GoingLive).

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Appendix-2

Solutions (1)

Cross-Industry Solutions

Industry Solutions

mySAP Enterprise Portals

mySAP Aerospace & Defense

mySAP Insurance

mySAP Customer Relationship Management

mySAP Automotive

mySAP Media

mySAP Banking

mySAP Mill Products

mySAP Supply Chain Management

mySAP Chemicals

mySAP Mining

mySAP Exchanges

mySAP Consumer Products

mySAP Oil & Gas

mySAP Supplier Relationship Mgmt (SRM)

mySAP Engineering & Construction

mySAP Pharmaceuticals

mySAP Financial Service Provider

mySAP Public Sector

mySAP Healthcare

mySAP Retail

mySAP High Tech

mySAP Service Providers

mySAP Higher Education & Research

mySAP Telecommunications

mySAP Services

mySAP Hosted Solutions

mySAP Business Intelligence mySAP Product Lifecycle Mgmt mySAP Human Resources mySAP Financials mySAP Mobile Business

mySAP Utilities

Infrastructure und Services mySAP Technology

 SAP AG 2003

© SAP AG

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Appendix-3

Solutions (2) Industry Solutions

mySAP Public Sector

mySAP Higher Ed. & Research

mySAP Healthcare

mySAP Insurance

mySAP Financial S. Provider

mySAP Banking

mySAP Utilities

mySAP Telecommunications

mySAP Service Providers

Service Financial Public Industries Services Services

mySAP Media

mySAP Retail

mySAP Mining

mySAP Oil & Gas

mySAP Pharmaceuticals

mySAP Mill Products

mySAP CP

Consumer Industries

Process Industries

mySAP Chemicals

mySAP High Tech

mySAP E&C

mySAP Automotive

Cross-Industry Solutions

Discrete Industries mySAP Aerospace & Defense

Financial Services

mySAP Enterprise Portals mySAP CRM mySAP SCM mySAP BI mySAP Exchanges mySAP SRM

Best-of-Breed Solutions for Industries

mySAP PLM mySAP HR mySAP Financials mySAP Mobile Business  SAP AG 2003

© SAP AG

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Appendix-4

The mySAP SCM (Supply Chain Management) Solution

Partner

Supply Chain Collaboration

Vendor

Planning

Strategy Supply Chain Design

Supply Source External Procurement

Sales and Delivery Planning

Production Manufacturing

Delivery Order Fulfillment

Supply Chain Collaboration

Supply Chain Performance Management

Customer

Partner

Supply Chain Event Management  SAP AG 2003

mySAP Supply Chain Management (SCM) is a complete solution that allows a company to efficiently plan, create and control products or services within complex logistics networks. This solution supports a synchronized and close interaction between all departments involved (and all people involved) within a logistics chain. Customers, sales, production planning, manufacturing, warehouse management, purchasing, and vendors are all included in this complete solution. Especially the processing of cross-company processes or collaborative planning and procurement processes, which also allow for a connection to an open market place, is a main feature of this solution.

© SAP AG

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Appendix-5

Key Areas in the mySAP SCM Solution

mySAP SCM SC Technology

Sales Processes and Logistics Execution

SC Networking External Procurement

SC Coordination

SC Planning Manufacturing Solution

SC Execution

Key area  SAP AG 2003

Supply Chain Technology: Open technological framework; uses internet standards (HTML, XML, WAP) Flexible optimization functions for optimally coordinated logistics chains Superior logistics performance: efficient logistics planning and scheduling using the liveCache Supply Chain Networking: Private marketplace: company-wide information exchange, planning, coordination Company portal: provides user-specific information via the web browser Mobile Supply Chain Management: mobile data entry, allows for seamless information flow Supply Chain Coordination: Supply Chain Event Management: monitors events and processes in the logistics network Supply Chain Performance Management: determines performance figures for process optimization Supply Chain Planning Supply Chain Design: design and optimization of the supply chain infrastructure Company-wide sales and requirements planning Supply Chain Execution Production: supports discrete production (order-oriented or period-oriented) and process manufacturing from planning to realization, creates feasible schedules taking into account the availability of material, capacity and production resource/tools External procurement: covers the whole procurement process from the purchase requisition via the source of supply determination, to the purchase order, goods receipt, invoice verification and inventory management; supports internet-based direct procurement; uses e-marketplaces, catalogs, rules-based procurement strategies for automated procurement Sales Processes and Logistics Execution: manages sales orders with offer creation, delivery date determination, global availability check, picking, invoice documenting; transportation management with transportation planning and vehicle scheduling; delivery tracing © SAP AG

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Appendix-6

Roles in Production

Production planner plant manager, MRP controller Production scheduler

Demand planning

Detailed scheduling

Plant reqmts

Industrial engineer

Production worker Production scheduler

Work scheduling

Production

Production worker Production scheduler (foreman)

Docu.& analysis

Plant manager, quality manager

Design engineer

 SAP AG 2003

With the introduction of the mySAP Business Suite, computer-supported workplaces were created throughout the whole process chain in production. The roles shown on this slide are just a few of the roles required to manage shop floor control. In addition, there are single roles for different activities (tasks), authorizations, and responsibilities which correspond to actual daily work.

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Appendix-7

The mySAP Enterprise Portals Solutions R/2 R/2 3rd 3rd party party

Other Other ERP ERP Systems Systems

not SAP

Tim Brown Production scheduler

3.1H

SAP Components

R/3 R/3

mySAP mySAP Enterprise Enterprise Portals Portals

Web Browser Access

SEM SEM

BW BW

single single point-of-access point-of-access Integration Integration Role-based Role-based Personalized Personalized

( ... ) KW KW

APO APO CRM CRM

Syst

em l Inside imita tion

Partner mySAP mySAP Partner Marketplace Marketplace SAP Internet Services

other Internet Services

Outside

SAP SAP

 SAP AG 2003

The cross-industry solution mySAP EP (Enterprise Portals) is an open, role-related enterprise portal, which allows a user to have integrated and personalized access to information, applications, and services from internal and external sources via a web browser. mySAP EP is the starting point for an employee to his or her daily work. It makes information and applications available per mouse-click over an interface that is easy to understand, adjust and use. The following characterizes mySAP EP: Single point-of-access: A web browser allows for central access to different applications, contents and services. - Access is possible everywhere and anytime. - Convenient integration of SAP and non-SAP components and applications from intranet and internet services. - Openness and flexibility Personalized and role-based, individually adjustable user interface The description above describes the mySAP EP application using a production scheduler as an example. Based on his or her daily tasks, an employee is assigned a role with special authorizations and system access. A production scheduler is given access to selected functions from the SAP components R/3, APO, and BW, and well as the option to have internet access. © SAP AG

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Appendix-8

Components in the Planning and Production Areas Enterprise Portals: integrated access to all components

R/3

BW

...

SAP BW

APO

SAP R/3

Core Interface

Plug-In Reporting

 SAP AG 2002

SAP APO

Customer requirements management Production planning in the plant Production processing

Requirements forecast Plant-wide planning Quantity and capacity requirements planning Optimization

...

...

The SCM key areas Planning and Production mainly use the following mySAP components: SAP R/3 SAP APO (Advanced Planner and Optimizer) SAP BW (Business Information Warehouse) A plug-in allows for the interfaces responsible for the integration of R/3 with BW or APO. The interface between R/3 and APO is called a core interface (CIF).

© SAP AG

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Appendix-9

Integration of Production in Planning

SCM Planning

Plnd ind. reqmts

Demand program

Cust. reqmts

Stock

MRP

B A C D E

Planned order

Goods issue of comp. Execution of production Goods receipt of product

Purchase requisition

SCM External Procurement

SCM Production

Work scheduling

Purchase order

Goods receipt

Capacity requirements planning

Sales

Material forecast

Invoice receipt

Settlement  SAP AG 2002

Shop floor control is a central part of a complex process starting with an independent requirement (planned or customer requirement) and ending with the goods issue of a finished product.

© SAP AG

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Appendix-10

Supply Chain Planning: Overview

R/3

LIS

APO

BW

Demand Planning (DP)

Flexible Planning Standard SOP

SD

Global Availability Check (ATP)

Demand Management

Supply Network Planning (SNP)

Material Requirements Planning (MRP) Capacity Reqmts Planning (CRP)

Production Planning and Detailed Scheduling (PP/DS) Transportation Planning (TP/VS)

SCM Production / External Procurement  SAP AG 2002

Planning covers several steps that are executed using different components in R/3 and/or APO. It makes sense to use both systems together for planning. The systems are integrated via the CIF interface (CIF: Core Interface). Demand planning uses past sales quantities to calculate the future demand program. Flexible planning (R3), the standard SOP (R3) or demand planning (APO-DP) can all be used to do this. Supply Network Planung (APO) allows for plant-wide planning of all procurement operations. The demand program (determination of planned independent requirements) is usually planned in R/3. However, planned independent requirements can also be determined in APO-DP. Sales orders are usually entered in the R/3 System. The ATP check of a sales order can take place globally in APO. Material requirements planning can be executed in both systems. In R/3 capacity planning is executed separately in a second step, while quantities and capacities are planned simultaneously in APO-PP/DS. Production takes place based on planned orders. Here mySAP SCM supports different production types.

© SAP AG

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Appendix-11

Master Data for Planning and Production

APO

R/3 Core Interface Master data Plant

CIF Initial data transfer / transfer of changes

Master data

Location

Customer Vendor Material master

Product

Work center / resource / capacity

Resource

Routing / master recipe and BOM

PPM

 SAP AG 2002

Specific business operations for planning and shop floor control in R/3 and in APO are based on master data from Lifecycle Data Management. Lifecycle Data Management is a key area in the solution mySAP PLM (Product Lifecycle Management). The master data objects from R/3 and APO are not identical. The R/3 System is the leading system for the master data. The APO Core Interface (CIF) allows R/3 master data to be represented by the corresponding master data in APO. Both the initial transfer of data as well as the supply of changes made to data in APO are achieved via the CIF.

© SAP AG

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Appendix-12

Transaction Data for Planning and Production

APO

R/3

Transaction data

Transaction data Sales orders Planned ind. reqmts Planned orders Stocks Production orders / process orders Reservations Purchase orders

Core Interface

CIF Integration model

Orders - Production order - Replenishment order - Procurement order ... (Distinction based on ATP category)

 SAP AG 2002

The selection of transaction data exchanged between R/3 and APO is defined in an integration model in R/3. All R/3 transaction data is represented in APO by orders, which are distinguished using their ATP category.

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Appendix-13

© SAP AG

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Appendix-14

Summary

Contents: Overview of production types Additional information

 SAP AG 2002

© SAP AG

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8-1

Course Overview Diagram

1

Course Overview

2

Introduction Order-Controlled Production with Production Orders

3

4

Order-Controlled Production with Process Orders

5

Project-Oriented Production

6 7 88

Repetitive Manufacturing Kanban

Summary

8

 SAP AG 2002

© SAP AG

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Overview of Production Types (Basic Functions) SFC

Order-related production Status management Scheduling (with, w/o time) Capacity requirements Costing (standard and simultaneous costing) Cost Object Controlling Order-related Product-related Availability checks Material PRTs Capacity

Printing of shop floor papers Material staging using reservations Goods issue (manual or backflush) Confirmations of quantities, activities and time events (var. confirmation procedure Work in process (determination of unfinished prod.) Goods receipt (manual or automatic) Period-end closing Archiving and retrieval Mass processing

PI

REM

X X X X X X X

X X X X X X X

--(4) X X -X

X (1) X

X -X

(2) ---

X X X X

X X X X

(7) (6) (3) (8)

X X X X X

X X X X X

(9) (5) X ---

 SAP AG 2003

Legend: SFC = Shop Floor Control = shop floor production = discrete manufacturing with production orders PI = Process Industry = manufacturing with process orders REM = Repetitive Manufacturing = period-based production (1) Possible to limited extent (2) For planned order only (3) Backflush only (4) Valid period only (5) Fixed to final confirmation (6) No reservations! (7) No shop floor papers, only quantity papers (dispatch list) and operational method sheet (8) Quantities and activities only (9) For reporting point backflush only, for make-to-order only Scheduling normally does not involve checking the capacity available. For production/process orders, you can carry out finite scheduling (forwards with check of available capacity).

© SAP AG

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Overview of Production Types (Special Functions) Production of configurable materials Production with production version Manufacture of co-products Batch number assignment Batch determination Material quantity calculation Batch-specific units of measure Resource network Resource selection Engineering change management Multi-level collective orders Assembly orders Order splitting Serial number management As-built configuration Cross-plant production Externl processing/external procurement Trigger points Phantom assemblies Discontinued parts (simple, groups)

SFC

PI

X X X X X -X --X X X (5) X X X X X X X

X X X X X X X (4) X X -X X -X -X X -(7) X

REM

X X (1) (2) (3) -X ----X -(6) -X ---(8)

 SAP AG 2003

(1) By-products only (2) At goods receipt of finished product (3) At goods issue of components (4) Active ingredient management can be realized together with material quantity calculation (5) Cost Object Controlling for product in standard system only (6) At goods receipt using confirmations (7) Not with approved process orders (8) simple or parallel discontinuation possible

© SAP AG

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Overview of Production Types (3)

Link to process control level Interface (BAPI, RFC) Process management

SFC

PI

REM

PP-PDC --

PI-PCS X

(1) --

--

X

--

--

X

--

X X ---X

X X X X X X

X X -----

-X

X X

-X

(Control recipes, PI sheets, process messages)

OPC interface Production in compliance with GMP Order approval Integration with QM Inspection during production Inspection for goods receipt Material identification Material reconciliation Batch record Batch where-used list Digital signature in production in QM  SAP AG 2002

(1) Possible using BAPI

© SAP AG

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Overview of Production Types (Integration) SFC

PI

REM

Warehouse Management System (WM)

X

X

X

Transport and packaging units (HUs)

X

X

X

Integration with QM Inspection during production Inspection for goods receipt

X X

X X

X X

X

X

X

Business Information Warehouse (SAP BW) (or LIS)

 SAP AG 2002

© SAP AG

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8-6

Information about Follow-Up Courses (1) Courses on the production types SCM310 (Production Orders) SCM320 (Repetitive Manufacturing) SCM340 (Process Manufacturing) SCM350 (KANBAN)

Follow-up courses in the production environment Courses of Product Lifecycle Management (mySAP PLM) PLM110 (Basic Data Part 1) PLM111 (Basic Data Part 2) PLM115 (Basic Data for Process Manufacturing) PLM130 (Classification System) PLM140, PLM143, PLM146 (Variant Configuration) LO720 (QM in Discrete and Repetitive Manufacturing) LO721 (QM in Process Industries)  SAP AG 2003

For a complete overview of all courses offered, refer to the SAP Curriculum Plan. You can easily find this information in SAPNet.

© SAP AG

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Information about Follow-Up Courses (2) Follow-up courses in the production environment (Cont.) Further courses of Supply Chain Management (mySAP SCM) Manufacturing SCM344 (Process Management) SCM360 (Capacity Planning) LO955 (Batch Management) External Procurement SCM500 (Processes in Procurement) LO510 (Inventory Management) Logistics Execution LO530 (Basic Processes in Warehouse Management)

 SAP AG 2003

© SAP AG

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Information about Follow-Up Courses (3) Follow-up courses in the production environment (Cont.) From the Business Intelligence (mySAP BI) solution BW200 (Business Information Warehouse - Overview) From the mySAP Financials solution AC505 (Product Cost Planning) AC510 (Cost Object Controlling for Products) AC515 (Cost Object Controlling for Sales Orders)

 SAP AG 2003

© SAP AG

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Information on the Internet (1) SAP Help Portal http://help.sap.com/

SAP Service Marketplace http://service.sap.com/

mySAP Supply Chain Management http://www.sap.com/scm/

SAP Educational Services http:// www.sap.com/education/

Internet Demo and Evaluation System http:// www.sap.com/ides/

SAP Shop http:// www.sap.com/shop/

 SAP AG 2003

© SAP AG

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Information on the Internet (2) Software partners http://www.sap.com/partners/software/ SCM interfaces: http://(…)/software/integration-opportunities/ interface-certification/scm/ (…) PI-PCS (Process control systems PI): http://(…)/scm/pi-pcs.asp (…) PP-CC2 (Process control systems PP): http://(…)/scm/pdc-cc2.asp (…) PP-PDC (Process control systems PP): http://(…)/scm/pp-pdc.asp QM-IDI (Laboratory information systems QM): http://(…)/software/integration-opportunities /interface-certification/plm/qm-idi.asp ArchiveLink (Archiving products BC): http://(…)/software/integration-opportunities/ interface-certification/technology/bc-al.asp  SAP AG 2002

© SAP AG

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References (1)

Books See SAP Shop under Global SAP Knowledge Shop

 SAP AG 2002

© SAP AG

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References (2) Participant handbook for SCM300 (as course basis)

Online system documentation (CD-ROM) Model company IDES (brochure)

 SAP AG 2002

© SAP AG

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© SAP AG

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8-14

Kanban

Contents: Kanban principle Mapping the principle to the system Supply areas Production supply using control cycles Procurement triggering Goods receipt Special type: event-driven kanban

Summary

 SAP AG 2002

© SAP AG

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Kanban: Unit Objectives

At the conclusion of this unit, you will be able to: Explain the characteristics of the kanban principle Describe the main steps of kanban processing List the main functions of the kanban principle

 SAP AG 2002

© SAP AG

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7-2

Course Overview Diagram

1

Course Overview

2

Introduction Order-Controlled Production with Production Orders

3

4

Order-Controlled Production with Process Orders

5

Project-Oriented Production

6 77 8

Repetitive Manufacturing Kanban

7

Summary

 SAP AG 2002

© SAP AG

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7-3

Main Business Scenario

A characteristic of your company’s production is a relatively constant consumption of materials. For this reason, you want to handle the material flow to the work centers in production of your company in an event-driven manner. You organize replenishment via stock transfers, external procurement, and in-house production using the mySAP SCM kanban functions.

 SAP AG 2002

© SAP AG

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Kanban Principle

Demand source

Supply source

Full l Ful

Material

l Ful

Empty

Kanban = card

 SAP AG 2002

In KANBAN, material flow is organized using containers, which are kept directly at the appropriate work centers in production. Each contains the quantity of material that work center personnel need for a certain period of time. As soon as a container is emptied at the demand source, replenishment is initiated. The supply source for the required material can be another place in the production, an external supplier or a warehouse. The demand source can use material from other containers until the actual container returns to full. The aim is for the replenishment process to be controlled from production itself, and to reduce the manual tasks required of personnel as much as possible. This self-management process and the fact that replenishment elements are created close to the time they are actually consumed means that stocks are reduced and lead times shortened (replenishment is only triggered when a material is actually required and not before). Basically, in KANBAN, material is provided in production exactly where it is required. It remains there, in small material buffers, ready for use. Thus, material staging does not need to be planned. Instead, material that is consumed is replenished immediately using KANBAN. A further advantage of KANBAN together with the SAP R/3 System is that replenishment data is transmitted to a great extent automatically. That is, scanning the barcode on a Kanban card suffices to transmit the data needed for procurement and to post the goods receipt upon receipt of the material.

© SAP AG

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Kanban: Characteristics Features of R/3 kanban processing Pull production supported by the graphical kanban board Material flow organized using containers: Setting to Empty triggers procurement in the system Setting to Full posts the goods receipt in the system

Master data in the control cycle guarantees self-management of the production process (JIT call), therefore, material staging is not planned Minimization of the manual posting effort and administrative effort in the system Lean Manufacturing: process optimization with more employee responsibility

 SAP AG 2002

© SAP AG

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7-6

Using Kanban in Production Requirements Settlement

1

9

Resource planning

2

8 Goods receipt

l Ful

Confirmation, WIP determination

3

l Ful

Availability check

4

7

Printing papers

5

6

Material staging using kanban

Production execution

 SAP AG 2002

In the general production process, the kanban principle is used within material staging.

© SAP AG

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Master Data: Supply Area

Supply area 3 E Supply area 2

D C

Supply area 1 B

Production Assign storage location SA Assign person responsible Unloading point for ext. procurement

Where should which material be staged? Which supply areas are necessary?  SAP AG 2002

Structure and organization of production are important when introducing KANBAN. With KANBAN, material is staged directly in production in specific areas, known as supply areas. A supply area can be used by one or more work centers. The supply areas act as a buffer for the necessary materials (for example, on shelves or in marked-out areas on the floor). The supply areas established for the shop floor are defined in the SAP R/3 System in the KANBAN menu. In the definition, the supply area is assigned the following objects: The supply area is a data object used to organize material flow for KANBAN, but is not an inventory management object. Therefore, storage locations are assigned to the supply areas. Inventory management (which is relevant, for example, for posting goods receipts) therefore takes place at the storage location to which the supply area is assigned. Another significant organizational prerequisite is that you create a person responsible per supply area. If a responsible person is assigned to a supply area, this defines who is responsible at the demand source for material processing and for monitoring stocks at the supply area. If in in-house production, a person responsible is maintained in the control cycle, this defines who is responsible at the supply source for replenishment, that is, for material provision and, if necessary, for delivery to the demand source. The person responsible is assigned as an MRP controller to the supply area in Customizing for MRP. Unloading point: Often in external procurement, the supplier does not deliver the material directly to the supply area in production but to a certain unloading point. From here, the kanbans are transported to the supply area. The unloading point defines where the supplier has to deliver the material (for example, gate 1). It is printed on the kanban card or even transferred to the summarized JIT call. Delivery address: You can maintain an address in the supply area. When creating a control cycle, this address is transferred to the delivery address of the control cycle. © SAP AG

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Master Data: Kanban Control Cycle

Demand source

Supply source

Supply area Delivery

Control cycle

Person responsible Vendor Issuing plant Warehouse

Requirement

The control cycle contains the data required for replenishing a material at a supply area (for example, number of kanbans, quantity per kanban, supply source, type of replenishment).  SAP AG 2002

To control the relationship between supply and demand source, you define a control cycle. The control cycle defines: The demand source (supply area) The replenishment strategy (for example, replenishment via purchase order for external procurement or via run schedule quantities for in-house production or via stock transfer reservations for stock transfer) The supply source (supplier (vendor) or issuing plant for external procurement, the responsible person for in-house production, the storage location for stock transfer) The number of containers (kanbans) circulating between the demand and the supply source The quantity per container The delivery address (when accessing the function, the plant address is automatically maintained). Here, you can also enter detailed information required for the supply area. You can print this data on a kanban, for example). Printing parameters for printing the kanban The pallet position: More precise specification of the material's position (for example, a specific shelf section) in the supply area. The pallet position can also be printed on the kanban. Parameters for the automatic kanban calculation You can also delete or lock kanbans in the control cycle. You lock a kanban, for example, if it is not to be used for a certain time as consumption within the control cycle has fallen. © SAP AG

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Production Supply Using Control Cycles

Control cycle D 75

75

H 10

10

SA_Preprod. 1

SA_Assembly 1 SA_Assembly 2 G 75

75

E 10

10

F 25

25

75

B 10

10

E 25

25

Vendor 1 SA_Preprod. 2

Work centers in supply areas Materials

 SAP AG 2002

A 75

Central warehouse

E 75

75

C 10

10

Container with 10 pieces

Vendor 2

When using KANBAN, warehouses or vendors are linked to the supply areas that are assigned to the relevant producion storage locations using control cycles. Since the link to material staging can also take place via in-house production within KANBAN, preassembly and final assembly can, for example, be linked using KANBAN.

© SAP AG

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Setting the Kanban to Empty = Triggering Replenishment

Production process

l Ful

Supply area

Empty

Supply source

Status to Empty

Ext. procurement

Stock transfer

Replenishment is triggered automatically: • Order • Purch. Purch. order ...

In-house production

 SAP AG 2002

The progress of production in KANBAN is controlled by setting the kanban to the appropriate status. Usually, only the two statuses, Empty and Full are used. If the demand source sets the status to Empty, the system creates a replenishment element, instructing the material supply source to deliver. Emptying a kanban does not lead to a goods issue posting! In KANBAN, goods issues are typically backflushed when an order is confirmed (or during manual goods issue posting of an order). You can set the status to Empty by scanning a bar code on the kanban card. To do this, you scan the bar code using a standard bar code scanner in the transaction Kanban Signal -> Bar Code. You can also set the status to Empty using transaction Manual Kanban Signal or in the kanban board.

© SAP AG

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Setting Kanban to Full = Posting Goods Receipt

Production process

l Ful

Goods receipt is posted automatically

Supply area Full

Status to Full

Supply source

Full KANBAN

Ext. procurement

Stock transfer

In-house production

 SAP AG 2002

If the demand source sets the status to Full, the system automatically posts the goods receipt for the material with reference to the procurement element. You can set the status to Full by scanning a bar code on the kanban card. To do this, you scan the bar code using a standard bar code scanner in the transaction Kanban Signal -> Bar Code. You can also set the status to Full using transaction Manual Kanban Signal or in the kanban board.

© SAP AG

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Requesting Additional Kanban Containers

Event Event

Create kanban with status Empty and a predefined quantity Supply source receives request to deliver a kanban

Empty

Full

Material delivery: demand source sets status to Full

Demand source sets status back to Empty: kanban is deleted  SAP AG 2002

Use: In event-driven KANBANB, material staging is not based on a predefined number of kanbans or a predefined kanban quantity (as in classic KANBAN). Instead, it is based on actual material consumption. The material is not continually provided and replenished at a supply area. It is only replenished when specifically requested. This procedure is especially useful if, for example, requirements for a particular material are irregular, but you still want to use the benefits of KANBAN to carry out replenishment with a simplified procedure. Prerequisite: You must maintain separate control cycles for event-driven KANBAN. In event-driven KANBAN, you can also use all the functions available in the KANBAN component.

Activities: 1. With the transaction Event-driven KANBAN, or the pull list, one or more kanbans are created. The quantity or the number of kanbans depends on the required quantity and the specifications in the control cycle. A replenishment element is created for each kanban created depending on the strategy. 2. Replenishment is carried out. 3. The kanban is set to Full and, if necessary, a goods receipt is posted. 4. When you set the kanban to Empty (for example, using either a bar code or the kanban board), the system deletes the kanban. 5. A new kanban is not created again until you retrigger the kanban signal using the Event-Driven Kanban function.

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Plan-Controlled Production vs Kanban

Focus of the Kanban procedure

Focus of plan-controlled production - Planning instrument

- Short-term replenishment control

- Short- to long-term requirements forecast

- Demand-based

- Date-oriented

- Event-driven

- BOM explosion

- Simple method of organization

- Lot-size calculation / optimization

- Replenishment quantity = current requirements

- Centralized planning and control

- Delivery directly to demand source

- Centralized stock responsibility

- Decentralized stock and procurement responsibility

- Push principle

- Pull principle

 SAP AG 2002

Advantages of KANBAN: KANBAN is a simple form of production control: the production controls replenishment itself, to a large extent. Manual posting effort is kept to a minimum. The material is available directly on the shop floor. This saves the organizational effort required to stage the material. The production quantities correspond to actual requirements. This self-management process and the fact that replenishment elements are created close to the time they are actually consumed means that stocks are reduced and lead times shortened (replenishment is only triggered when a material is actually required and not before).

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Kanban: Summary

The kanban procedure enables material staging in production without external control effort. Material supply sources can be embedded in the self regulatingkanban control cycle, providing the material via in-house production, external procurement, or stock transfer.



SAP AG 2002

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Repetitive Manufacturing Contents: Application areas and characteristics Processes Mapping repetitive manufacturing onto the system Master Data Integration with planning (R/3 or APO) Planning Line Loading Material staging Backflush and Goods Receipt Special cases Settlement Information Systems

Summary  SAP AG 2003

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Repetitive Manufacturing: Unit Objectives

At the conclusion of this unit, you will be able to: Explain the characteristics of period-based repetitive manufacturing Describe the main steps of repetitive manufacturing Explain the main functions within repetitive manufacturing

 SAP AG 2002

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Course Overview Diagram

1

Course Overview

2

Introduction Order-Controlled Production with Production Orders

3

4

Order-Controlled Production with Process Orders

5

Project-Oriented Production

66 7 8

Repetitive Manufacturing

6

Kanban

Summary

 SAP AG 2002

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Main Business Scenario Your company produces products in large numbers. The production is quantity-based and period-based. You belong to the team that is implementing repetitive manufacturing for quantity-based and period-based production during the mySAP SCM implementation. Before implementation, you must create the whole process chain for in-house production, which will allow your company to organize, control, and execute production based on the mySAP SCM functions. Important stages of repetitive manufacturing are the dispatching of quantities at the production lines, material staging of the components, backflush of quantities produced, and settlement of the costs collector. These functions are integrated with other areas in your company, such as controlling and warehouse management. Therefore, you must consider the many integration relationships when implementing repetitive manufacturing.  SAP AG 2002

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Application Areas Typical Typical industries industries

PRODUCT COMPLEXITY

Mechanical engineering, consumer products, electronics, and more

Takt-based Takt-based flow flow manufacmanufacturing turing

Period-based production

Mass production

PRODUCT STABILITY  SAP AG 2002

Repetitive manufacturing is mainly used for production with high product stability and high repetition rate as well as low product complexity.

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Period-Based Repetitive Manufacturing: Characteristics (1) Repetitive Manufacturing Order type: - without order Quantity- and period-based production

Integration of Repetitive Manufacturing Master Data Management Sales Production or Material Requirements Planning Capacity Requirements Planning Materials Management Logistics Execution Quality Management Controlling Business Information Warehouse Logistics Information System

(mySAP PLM) (mySAP CRM, SAP R/3-SD) (SAP R/3, SAP APO) (SAP R/3, SAP APO) (SAP R/3 IM) (SAP R/3 WM) (SAP R/3 QM) (SAP R/3 CO) (SAP BW) or (SAP R/3 LIS)

 SAP AG 2002

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Period-Based Repetitive Manufacturing: Characteristics (2) Basic Functions of Repetitive Manufacturing Scheduling Calculation and monitoring of capacity requirements Costing Availability checks Printing of dispatch list and operational method sheet Material staging (without reservations!) Goods issue: component backflushing by default Goods receipt: closely linked to final confirmation (quantities and activities) Period-end closing (process cost allocation, overhead rates, WIP determination, variance calculation, cost collector settlement)

 SAP AG 2002

Apart from the basic functions, repetitive manufacturing offers several other functions (see next slide). The course SCM320 covers a selection of the most important of these functions in detail.

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Period-Based Repetitive Manufacturing: Characteristics (3) Enhanced Functions of Repetitive Manufacturing Printing of operational method sheet and dispatch list with Microsoft Office link Reporting point backflush (milestone) Action control Mapping of takting to the system using takt-based flow manufacturing

 SAP AG 2002

There is an MS Office link for the printing of shop papers and quantity papers (no shop floor papers!): MS Word can be used to print operational method sheets and MS Excel for print dispatch lists. Beside make-to-stock production, sales-order-oriented repetitive manufacturing is also supported. This enables, for example, dealing with configurable materials. To determine work in progress or to post component withdrawals timelier, you can use a reporting point procedure (only make-to-stock). With regard to configurable materials, action control enables the automatic triggering of actions (for example, printing the component list). The modelling of takts along with the sequence planning it involves is represented by a separate function: takt-based flow manufacturing.

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Costing

Demand program

Material forecast

SD

Indep.reqmts

Sales orders Stock

Planned orders

MRP Rep. Manufacturing

B A C D E

Planned orders (RSQ) Manufacturing

Confirmation w. stock receipt Settlement of cost collector

Integration with QM

Inventory management

Capacity requirements planning

Application-wide processes

Integration with PDC

 SAP AG 2003

The complex process chain from independent requirements to the goods issue of the finished product is reproduced in a lean version in repetitive manufacturing. Typical features are, for example, the use of planned orders for production (Planned orders are not converted to production orders. They only obtain the new order type run schedule quantity (RSQ) when the production version is assigned.) as well as the confirmation of the finished product with simultaneous backflushing of the components used.

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Master Data for Repetitive Manufacturing Repetitive mfg indicator and REM profile

Material

Production version

BOM

BOM

Material BOM

Production line as work center (or as an exception, as a line hierarchy)

Work center

Rate routing (or standard routing) Routing

Routing

Usually one operation Definition of production rate (quantity per time)

 SAP AG 2002

To allow a material for repetitive manufacturing, you set the Repetitive Mfg indicator in the material master record (in the MRP4 view). This means you can use all the various production versions of this material for repetitive manufacturing (that is, you can set the indicator Repetitive Mfg allowed for version in the production version). The BOM defines the planned material consumption for the components. In the status/long text of the BOM item (Production storage location field), you can define the issue storage location from which components are to be backflushed. Production lines are usually created as simple work centers in SAP R/3. In the work center, you define from when and to when the production line is available. The production line created as the work center is entered in the production version in the Production line field. This same work center is specified in the single operation of the routing. Production lines that have more than one work center can be represented in a line hierarchy. In repetitive manufacturing, the routing defines the production rate (quantity per time unit) used to produce materials on production lines. The production quantities are scheduled according to the production rate, and capacity requirements are calculated for this production quantity. The routing therefore provides the basis for lead time scheduling. In repetitive manufacturing, work centers are not usually used to describe the actual operations to be performed. Therefore, routings in repetitive manufacturing often only have one operation. The total production rate of the line is specified in this operation. It defines how many materials per time unit can be produced on this production line. In the single operation, you enter the production line as the work center. Two different routings are available in SAP R/3: standard routings and rate routings. Rate routings are specially designed for the needs of repetitive manufacturers and can be used instead of standard routings for organizational purposes. You can, however, also use standard routings for repetitive manufacturing. © SAP AG

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Demo Scenario: PC Production in the Dresden Plant Sales orders SD

Finished goods warehouse 0002

Confirmation Line T-L1##

Sold-to party PC final assembly

Stor. location PL01 Confirmation Line T-L3## Assembly production Stor. location PL03

Stor. location PL04

Material staging by stock transfer

Vendors

Material warehouse 0001

Plant 1200 (Dresden)

 SAP AG 2002

Demonstration example for repetitive manufacturing: In plant 1200, PCs and PC assemblies are produced. The most important material numbers used for the demo and exercises in the training system are: T-F10## PC Maxitec R-375 (Final assembly with make-to-order production) T-B10## Motherboard M-375 (Assembly production to stock) T-B20## Cable with earthed plug T-B30## Keyboard T-B40## TFT Monitor T-B50## Diskette drive T-B60## Harddisk T-B70## PC case T-B80## CD ROM drive T-B90## Modem T-T6## Memory (for pull list: direct transfer posting) T-TE## Processor M-375 Production lines: T-L1## Production line 1 (for production T-F10##) T-L3## Production line 3 (for production T-B10##)

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Repetitive Manufacturing: Process Flow

Settlement by product cost collector

Requirements

1

10

Planning of line loading and capacity check

2

9 Final confirmation and stock receipt with component backflushing

3

4 WIP determination (optional with reporting point backflush)

5

8

Availability check Printing of operational method sheet Printing of dispatch list

6

7

Material staging

Production execution  SAP AG 2002

Despite the lean implementation of basic functions, a number of activities are possible in repetitive manufacturing. The main aspects are the planning of line loading and the (usually simultaneous) capacity monitoring. You can, for example, use the planning table (multi-level access) to check the availability of assemblies for the finished product. The worker gets the information he or she needs from the operational method sheet (description of the operation if necessary) and from the dispatch list (materials, quantities, and dates). Material staging is done by stock transfers or KANBAN provision to the line. During production, reporting point backflush can be used to determine work in progress. After order processing, the finished product is confirmed to stock. This means both the goods receipt as well as the component backflush is posted. Costs are settled by means of a product cost colletor.

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Integration with Planning (R/3 or APO)

APO

R/3

Demand Planning (DP)

Flexible Planning Demand Management

Plnd indep.reqmt

Plnd indep.reqmt Consumption

Sales (SD)

Sales order

Production Planning (PP) MRP

Sales order

Supply Network Planning (SNP) Production Planning (PP/DS)

Planned order Repetitive Manufacturing

Planned order (RSQ)

Purchasing Purchase requisition Purchase order (MM) Stock transp. requisition Stock transport order

Planned order or run schedule quantity

Assign Planned order to line

Purchase requisition Purchase order

Conversion

Stock transp. requisition Stock transport order

Deployment

 SAP AG 2003

The mySAP SCM solution offers two general solution methods for integrating planning and production: planning with the functions of the APO component and planning with the functions of the R/3 component. Production preparation, execution,and control is always carried out with the functions of the SAP R/3 component, but also depending on the production type. These functions include costing, material staging, confirmation, goods movements, and settlement. Other functions (scheduling, availability check, machine commitment, for example) can be performed using either of the SAP components. Between the two SAP components, the master data and transaction data (planned orders, production orders, purchase requisitions, purchase orders, stocks, and so on) is usually exchanged via the Core Interface (CIF). Specific events lead to the transfer of data from R/3 to APO (release, confirmation, goods receipt) and vice versa. Sales orders are usually entered in R/3 and transferred from there to APO. Planned orders can be generated in material requirements planning in R/3 (MRP) or in APO with the following: a) Supply Network Planning in APO (SNP) This component achieves cross-plant planning in a long-term planning horizon across the whole supply and procurement chain. Stock transport requisitions (distribution), planned orders (in-house production), and purchase requisitions (external procurement) are generated for each production plant. b) Production Planning and Detailed Scheduling APO (PP/DS) This component generates planned orders and purchase requisitions in a defined, short-term time period (production horizon) in the production plant. What distinguishes repetitive manufacturing is that planned orders with order type RSQ (run schedule quantity) are used for production, which means that planned orders are not converted. Only their status changes when they are assigned to the production line. © SAP AG

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Basic Planning Strategies for Repetitive Manufacturing Make-to-stock production Sales order

SD

Demand Management

Warehouse stock Production line

Make-to-order production (sales order-based production) Sales order Sales order

Sales order stock

SD

Production line Configurable materials also possible  SAP AG 2002

Make-to-stock production: You can use repetitive/flow manufacturing for pure make-to-stock production. This means you produce products with no direct reference to sales orders. The planned independent requirements from demand management are used as the basis for planning. Depending on your planning strategy, the planned independent requirements from demand management can be consumed by sales orders. The same product is produced repeatedly over a substantial period of time. The product is not produced in lots. Instead, a total quantity is produced in a certain period at a certain rate. Products pass through production in a relatively steady flow. Sales orders are filled from warehouse stock. Make-to-order production (sales order-based production): You can use repetitive/flow manufacturing for make-to-order production. This means you produce products with direct reference to the sales orders. The products are stored in the sales order stock. Sales orders can be processed separately. A planned order is created with direct reference to the sales order. Production is therefore controlled using sales orders. The quantities produced cannot be swapped between the individual sales orders. The produced quantities are stored specifically for the individual sales order (sales order stock) and not in the anonymous warehouse stock. If you use variant configuration, you can plan and manufacture configurable materials using make-to-order repetitive manufacturing. Sales orders are filled from sales order stock. Prerequisite: You use the strategy group in the material master record to control whether you want to use make-to-stock or make-to-order repetitive manufacturing.

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Planning Line Loading: Overview

PlOrd.

PlOrd.

PlOrd.

PlOrd. PlOrd. Planned order assignment using... Optionally R/3 planning table/ APO product planning table

Alternative selection (automatically) Quota arrangement (automatically)

 SAP AG 2003

You can use any of the following three options to plan the line loading (dispatching of planned orders on the production line): Alternative selection: - If only one valid production version, that is, for example, only one line, is available, you can set the alternative selection indicator 2 in the material master (MRP4 view). Planned orders are then automatically assigned to this line. If several lines are available, the system assigns the first line it finds. Since this reduces your freedom when planning the line loading, we recommend using this option only if there is only one valid production version or production line. Quota arrangement: - If several production lines are available but one is preferred (for example, it is always to reach full capacity load), you can use quota arrangements to distribute the remaining quantity to the alternative lines. To do so, you maintain the Quota arr. usage field in the MRP2 view in the material master and trigger quota maintenance in the MRP menu under Master Data. We recommend using quota arrangements only for rough-cut planning with additional postprocessing in the planning table. R/3 planning table/APO product planning table: - As opposed to the other methods, quantities are dispatched manually or semiautomatically on the available lines when planned orders are assigned in the R/3 planning table or the APO planning table. © SAP AG

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Actions for Manual Planning of Line Loading (Example: R/3) Capacity data Line 1 Requirement Available Line 2 Requirement Available

% h h % h h

Material data Material A Requirements Available qty Production line 1 Production line 2 Not yet assigned

PC PC PC PC PC

Due

04.09.

0 0 16 0 0 16

100 16 16 0 0 16

Due

04.09.

200

100 200 100

0

200

05.09. 50 8 16 150 24 16

Monitoring: Capacity utilization

05.09. Activitiy: Assign lines 50 150 0

 SAP AG 2003

The planner uses the R/3 planning table to process the master plan. He or she can check the production quantities, change them if required, and create new production quantities (planned orders). He or she can determine the capacity utilization of the production line as well as the availability situation of the products. In addition, he or she can display the source of the capacity requirements (pegged capacity) by double-clicking the capacity requirements. Since planning in repetitive manufacturing is carried out in a quantity- and period-based manner, the display in the planning table is quantity- and period-based. You can choose any planning period (shift, day, week, month, planning calendar period). In the assignment mode, the planner can assign the production quantities (planned orders) to a production version and thus to a production line. If this was already done in MRP, he or she can also change existing assignments. Planned orders that are assigned manually to a line obtain order type PE (run schedule quantity) and are usually fixed. By means of the repetitive manufacturing profile, the fixing behavior can be limited to the planning time fence per material or deactivated in general. In addition, you can choose Materials Overview to go to a separate material overview displaying the exception message and range of coverage situation. Changes you make in the planning table are not written to the database unless you save them. In the SAP APO System, similar functions are available in the product planning table. It is an enhancement of the R/3 planning table and serves as the manual planning tool in SAP APO according to the enhanced APO planning functions. The graphic illustrates the general appearance of the R/3 planning tool. In an illustration of the APO product planning table, the terms Material and Line/Capacity would have to be replaced by Product and Resource. © SAP AG

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Material Staging Options Pull list: Staging from storage location level

MM-IM Warehouse Mgmt Inventory Management

List of kanbans to be moved Pull list: event-driven kanban

Kanban control

Pull list: List of transfer requirements Transfer orders

LE-WM Warehouse Mgmt System

Material is ordered

Release order parts Pick parts

Prod. order

Order-based creation of transfer requirements Container is ordered

Crate parts  SAP AG 2002

The SAP R/3 System has various procedures for controlling material staging. a) Warehouse management with the component MM-IM (Inventory Management) b) Replenishment control with the component KANBAN c) Handling of storage bins and replenishment control with the component LE-WM (Warehouse Management) The pull list enables processing by means of transfer postings on the storage location level, supports event-driven KANBAN, and enables integrating Warehouse Management (WM). Since pick part processing is order-based, the Warehouse Management System prefers to use release order parts for non order-based repetitive manufacturing: Release order parts are ordered manually. Here the required quantity is calculated from the target quantity of the components of the selected orders that have been released. Both pick part processing and crate part processing can be used when the typical repetitive manufacturing functions (for example, the planning table) are used by means of production orders.

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Backflush and Goods Receipt

Upload PDC interface

Manual entry Product cost collector

Goods receipt of finished products

Saving backflushes

Standard actions using backflushing data

Goods issue of components

Update statistics

Production costs

Reduction of PL Ord.

 SAP AG 2003

The BAPI interface can be used for backflushing from PDC systems. A separate transaction (MFBF) is available for manual entry of backflushes in the SAP R/3 System. By posting the goods receipt for the finished products during backflushing a number of different actions are performed by default (controlled by the repetitive manufacturing profile): Goods issue posting for the components used (usually by backflushing) Statistics update in the Logistics Information System (LIS) or the Business Information Warehouse (BW) Reduction of run schedule quantities/planned orders and the connected capacity requirements on the production lines Posting of production costs incurred (material costs, production activities, overhead costs) to a product cost collector Data entry document creation Other optional actions (see Details in the REM backflush transaction) include the following: consideration of setup costs for lot-size independent material quantities, posting of component/assembly scrap, collective entry for different materials of a line, archiving of backflush documents, pure goods issue backflush or pure activity backflush (more/less activity), reporting point backflush, decoupled backflushing processes, aggregation as well as various postprocessing and reversal options. In addition, sales-order based production enables backflushing with reference to the sales order. © SAP AG

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Reporting Point Backflush Example:

Production line 1 Work center 1-1

Operation 10

Work center 1-2

Work center 1-3

Receiving storage location Work center 1-4

Goods receipt

Operation 20 Operation 30 Operation 40

Goods issues Issuing storage location

Issuing storage location

Report. point backflush Report. point backflush

Report. point backflush with GR

 SAP AG 2002

Scenario: A long production line with longer lead time exists. However, the goods issues for the first components at work centers 1-1 and 1-2 are to be posted timely and not by backflushing with final confirmation at the end of the production line. During final confirmation, all components used along the production line are usually backflushed. If there are long lead times, the goods issues for the components may be posted much later in the system than after they have actually been withdrawn physically. In this case, it makes sense to use the reporting point backflush to timelier post the withdrawal of components (and production activities) after operations already completed. The above example contains the three reporting points connected with operations 10 (work center 1-1), 20 (work center 1-2), and 40 (work center 1-4). Prerequisite: In addition to having activated reporting point backflush in the repetitive manufacturing profile, the relevant work centers must exist, and the operations must be available in the routing and defined as reporting points by means of the control key. Depending on the application, optional or required reporting point backflush is possible and makes sense.

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Action Control

Example: Printing the component list for configurable material

Action control Printing component list for planned order

Components available?

Issuing storage location 1

 SAP AG 2002

The Actions in planned order function provides a solution for an interface to external assembly control systems. This is used to transfer progress at the assembly line and other dependent actions to the SAP System using a standard interface or an adjusted interface. The following standard functions are available: BEMA BOM explosion with availability check, BFPL Backflush planned order, BOME BOM explosion, COPD Change planned order data (e.g. sequence number, order quantity), DLPL Delete planned order, FIKM Firm planned order components, FIRM Firm planned order header, MAAV Availability check with BOM explosion if necessary, NEMA Availability check without BOM explosion, PRNT Print component list, RSMA Reset material availability check, SCHE Scheduling planned orders, Execution of custer-defined actions, ZZXX Customer action. You can use this function to execute one or more actions for a series of planned order simultaneously. Without this function, you would have to execute these actions individually per planned order online. Furthermore, action control defines which actions are allowed and the sequence in which the actions are to be carried out The date and the time of the last action are then saved in the planned order. Executing actions: To execute actions, you must maintain a report that transfers the customer-specific data for the action. You can use the Execute Action transaction in the MRP menu as an example. To print the planned order component list, the system uses the printer defined in Customizing for MRP in the activity Procurement Proposals -> Planned Orders -> Define Layout for Component List.

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Cost Debit / Credit (Product-Related COC) Debit product cost collector Material cost Production costs Overhead costs to material

Costing document from material costing

Product cost collector M 1000 100-100 E 1421 4230 1310 G Surcharge, raw material

12,000 25,000 8,500

E ... 25.000 12 11 1 10 2 9 3 8 4 7 6 5

Material withdrawal

Processing Processing

Confirmation

Goods receipt

Settlement Settlement

Credit Credit product product cost cost collector collector GR valuation control

Settlement profile Settlement receiver

Material stock account (quantity * standard/price acc. to valuation variant) Plant activity account (quantity * price acc. to valuation variant)

 SAP AG 2002

Actual costs at time of settlement

Distribution rule Settlement parameters Settlement account (acc. to allocation structure) Plant activity account Difference account

Settlement in repetitive manufacturing is always period-based based on the costs of the product cost collector (product-related cost object controlling). When executing confirmations in repetitive manufacturing, the material costs for the components and the production activities (only if a material cost estimate with price update was carried out in advance) are automatically posted to the product costs collector during backflushing. The product cost collector is debited with the material costs and production activities (in the repetitive manufacturing profile, you can define whether activity backflush is to be made with reference to the material cost estimate or the version-specific cost estimate). Morevover, the product cost collector is credited with the valuation price (materials controlled with standard price) or with the moving average price of the assembly (materials controlled with the moving average price). Overheads are not determined with reference to an operation (that is, not for each goods movement or activity confirmation). Instead they are determined periodically during period-end closing in Controlling by way of an overhead structure and are posted to the product cost collector. There is a separate transaction in the Repetitive Manufacturing menu for this. It is possible that components different to those planned are used in production or that the overhead cost rates change. This results in variances in the product cost collector and settlement must be executed. The aim of settlement is to completely credit the product cost collector. During settlement, the costs not yet credited to the product cost collector are transferred; for a material that is valuated using the standard price, the variant costs are posted to the price difference account. © SAP AG

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Integration with Controlling Prerequisites for cost settlement: Creating a product cost collector (either per material or also per production version) The posting of production activities must have been defined accordingly in the REM profile. In addition, a material cost estimate with price update must be made. Besides the material cost estimate, version-specific preliminary costing is possible if several production versions are used (can be activated in the REM profile) Carrying out cost settlement: Debiting the product cost collector with the material costs, production activities, and overhead costs incurred Crediting the product cost collector to the stock account Period-based variance calculation to price difference account

 SAP AG 2002

Transaction codes for the above actions: Create Product Cost Collector per Material [KKF6N], also per production version [KKF6M] Material cost estimate [CK11N] with price update (marking and release) [CK24] Preliminary cost estimate ([MF30] and [OPP3], REM profile)

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Repetitive Manufacturing: Information Systems Basis Order Information System

Planned orders

Controlling reports

CO objects of orders

Business Information Warehouse (SAP BW) in mySAP BI

BW InfoCubes

Logistics Information System (R/3 LIS) statistics

R/3 LIS Library

Reporting point overview

Backflush

 SAP AG 2002

Repetitive manufacturing supports different evaluation methods. Beside the analyses via CO reports, a data update is made in the Logistics Information System LIS by default (exception: planning data must be updated manually or in a background job). A link to the Business Information Warehouse (BW) also exists. Evaluations based on orders are not supported since the processing is not order-related.

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Repetitive Manufacturing: Summary

The Repetitive Manufacturing application can be used for period-based and quantity-based production control. The period quantities are planned as run schedule quantities and assigned to the production lines. The production is carried out without orders, enabling simple production control. The main tools for repetitive manufacturing are the SAP R/3 planning table and the SAP APO product planning table.

 SAP AG 2002

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Exercises Unit: Repetitive Manufacturing Topic: Master Data At the conclusion of these exercises, you will be able to: • Name the main master data for repetitive manufacturing • Explain what is special about the master data for repetitive manufacturing

You work for a company that uses repetitive manufacturing to produce PCs on two production lines. You are a member of the SAP project team responsible for implementing the functions of SAP SCM Repetitive Manufacturing. You therefore first try to get a general overview of the basic master data for repetitive manufacturing. In particular, you look at the master data for the PC T-F10## (material master, BOM, routing, and work center as well as the product cost collector from Controlling).

1-1

First, get an overview of the menu structure for the repetitive manufacturing functions. 1-1-1 Which menu path takes you to the Repetitive Manufacturing menu? ______________________________________________________ 1-1-2 Which transactions take you to Customizing for Repetitive Manufacturing? ______________________________________________________

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1-2

Name the basic Logistics master data for repetitive manufacturing. ____________________________________________________________ ____________________________________________________________ ____________________________________________________________ ____________________________________________________________

1-3

In the Logistics folder in the R/3 menu, navigate to the material master of PC T-F10## (## = your group number), MRP4 view, plant 1200. Use the change mode (transaction MM02). Name three material master settings that are specific to repetitive manufacturing: ____________________________________________________________ ____________________________________________________________ ____________________________________________________________ 1-3-1 Display production version 0001. Check the consistency of the combination of BOM and routing by choosing Check. 1-3-2 Which production line is entered in production version 0001? ______________________________________________________ 1-3-3 Write down the group counter of the rate routing entered: ______________________________________________________

1-4

Check the material BOM for material T-F10##in the Logistics master data. How many assemblies are on the hierarchy level directly below the finished product? ____________________________________________________________

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1-5

Display the rate routing for material F10##, plant 1200 in the Logistics master data. 1-5-1 How many different routings are displayed in the overview? ______________________________________________________ 1-5-2 Select the first routing with group counter 1 and choose Operations. What is special about the routing? ______________________________________________________ ______________________________________________________ 1-5-3 Name the work center involved and the production rate planned: ______________________________________________________ 1-5-4 Exit the operation overview and go back to the rate routing overview. Which work center belongs to group counter 2? ______________________________________________________ 1-5-5 Write down the group counter number and compare it with exercise 1-3-3. Note: You find the group counter number in the rate routing header data. ______________________________________________________ 1-5-6 Does production version 0001 enable repetitive manufacturing with the two routings? Give reasons. ______________________________________________________ ______________________________________________________

1-6

In the Repetitive Manufacturing menu, check in the master data whether a product cost collector already exists for material T-F10## in plant 1200. Note: To do so, you must activate the field next to the material in the display transaction. How many product cost collectors exist and how are they assigned? ____________________________________________________________ ____________________________________________________________

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Exercises Unit: Repetitive Manufacturing Topic: Integration with Production Planning and MRP in the R/3 System At the conclusion of these exercises, you will be able to: • Create a quantity- and period-based master production schedule for repetitive manufacturing • Interpret the results of a planning run in the stock/requirements list

In your plant 1200 in Dresden, you produce PCs. To achieve shorter delivery times, you execute planning for assembly production (make-tostock strategy) together with the Planning without final assembly strategy (make-to-order) for the finished product. This means that the last step of final assembly is made only after a corresponding sales order was received. First, check whether the master data for materials T-F10## (PC) and TB10## (motherboard) and then create planned independent requirements.

2-1

Make sure that for the finished product T-F10## the correct settings have been made for the strategy groups in the R/3 material master (plant 1200, MRP3 view): 50 – Planning without final assembly:

2-2

Is the material allowed for repetitive manufacturing? Note: Check the settings in the material master, MRP4 view and the release indicator (REM allowed) in the relevant production versions.

2-3

Now create planned independent requirements for the finished product in your plant 1200: Menu path: Logistics → Production → Production Planning → Demand Management → Planned Independent Requirements → Create Data: Values: Material Plant Planning period

© SAP AG

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In the next screen, choose the Sched. Lines tab. Create a planned independent requirement with a requirements date for the next week (enter the calendar week in the format week.year). The planned quantity should be 600 pieces. The quantity with period indicator W is to be distributed over the individual working days. Therefore, set the T (day format) indicator in the Splt column and confirm your entry. Confirm warning messages that may be displayed and save your planned independent requirements. 2-4

A sales order is received in Sales and Distribution. Now act as if you were the sales employee and create the following sales order for the finished product T-F10##: Menu path: Logistics → Sales and Distribution → Sales → Order → Create Data:

Values:

Order type Sales organization Distribution channel Division

TA 1000 10 00

Sold-to party Purch.order no. Req.delivery date Material Quantity

1171 660## Tuesday in two weeks T-F10## 100 pieces

Save the sales order. 2-5

Plan the BOM structure of the PC in an MRP run: Menu path: Logistics → Production → MRP → Planning – Single-Item, Multi-Level Use the following settings: Material Plant Further settings

T-F10## 1200 2, 3, 1, 1, 1

Start the MRP run by choosing Enter twice. Note: Multi-level planning ensures that secondary requirements are also created for lower BOM hierarchy levels.

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2-6

Use the stock/requirements list for the finished product T-F10## in plant 1200 to interpret the results: Menu path: Logistics → Production → MRP → Evaluations → Stock/Requirements List Why is the plant stock for the material not included? ____________________________________________________________

2-7

Use the stock/requirements list for assembly T-B10## in plant 1200 to interpret the results: Menu path: Logistics → Production → MRP → Evaluations → Stock/Requirements List

2-8

Double-click a planned order to display the detail data. Why are there no pushbuttons to convert the planned order to a production order? ____________________________________________________________ ____________________________________________________________

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Exercises Unit

Repetitive Manufacturing

Topic: Planning Line Loading in the R/3 System At the conclusion of these exercises, you will be able to: • Assign production quantities to production lines, taking capacity into account. The production quantities either originate from MRP or they were created manually and assigned to the production lines in the planning table. For the final assembly of your PC T-F10## and for the assembly of the motherboard T-B10##, there is one production line respectively. After the MRP and production planning in the previous exercise, the basic dates as to quantities and periods have been determined. As the production planner, assign the quantities to the relevant production line. 3-1

Use the R/3 planning table for repetitive manufacturing from the repetitive manufacturing planning menu to assign the planned orders to the production lines, taking available capacities into account. Call up the planning table, enter plant 1200 and select by production line. First, enter the final assembly line T-L1##. Then choose Planning table. Familiarize yourself with the period-based display of quantity and capacity data in the planning table. Fields that are ready for input are shown in white, display fields are gray as usual.

3-2

Double-click the quantity in the planning table section that is ready for input to display the detail data for the planned order. Which order type is assigned (F4 help)? ___________________________________________________________

3-3

Switch on the assignment mode for the quantities not yet assigned in the planning table section that is ready for input by choosing the corresponding pushbutton. Assign the quantity not yet assigned to the final assembly line. Note: You cannot yet assign the planned orders for the planned quantities. The reason for this is the planning strategy Planning without final assembly used. In this strategy, final assembly is only allowed when sales orders are received. In this case, the planning quantities only serve to create the relevant secondary requirements (which, however, are planned using a make-to-stock strategy and therefore can be produced without a sales order).

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3-4

Double-click the quantity you just assigned. Which order type is now assigned (F4 help)? ____________________________________________________________

3-5

Look at the capacity data. Does the production line reach full capacity through the planned order in the relevant time interval or is there still available capacity for further orders in the same period? ____________________________________________________________

3-6

Save the line loading planning for the finished product and do exercise 3-1-3 for assembly production (use line T-L3##, plant 1200 to access the planning table). Why does the quantity that was already available at the beginning (plant stock) reduce the oldest planned order? ____________________________________________________________ ____________________________________________________________ Save the line loading planning for the assemblies. Note: Since there is only one production line for final assembly and one for assembly production, you could also use alternative selection (material master, MRP4 view, alternative selection indicator = 2) to plan line loading and, if required, check the results in the planning table afterwards.

3-7

© SAP AG

Optional: Create a planned order manually in the planning table. To do so, access the planning table (line T-L3##, plant 1200) and use the function keys right at the bottom of the planning table (not the scrollbar!) to scroll to the date Today + 1 month. Enter a quantity of 300 pieces on line T-L3## and choose Enter to confirm. You have manually created a planned order that can be used for production in this form. Double-check this in the planned order details. However, do not save.

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Exercises Unit: Repetitive Manufacturing Topic: Material Staging and Backflush At the conclusion of these exercises, you will be able to: • Use the pull list to stage components at your production line • Carry out quantity- and period-based backflushing in repetitive manufacturing For assembly production of motherboard T-B10##, you want to check for missing components in the production storage location PL03 and use stock transfer measures to stage missing components for a certain production period. After a production section has been completed, the quantity produced is backflushed in the system. Both task are within the supervisor’s or production scheduler’s area of responsibility, whose roles you will be playing during the following exercise. 4-1

Here, you use the pull list to execute the stock transfer from the central warehouse to the production line. Perform component staging at assembly production line T-L3##. 4-1-1 Call up the pull list from the Repetitive Manufacturing menu. Staging is performed for line T-L3## in plant 1200 for all requirements that are received until Tuesday in two weeks. In this example, material staging is performed at storage location level (note that the pull list supports further staging types: using the Warehouse Management System or by event-driven KANBAN) by stock transfer from the central warehouse 0001 to the production storage location PL03. Some steps in the pull list can be carried out automatically. Make the following global settings: Dialog control tab:

Field name

Value

Create replenishment proposals Execute batch/stock determination Stage replenishment proposals Post replenishment elements Print replenishment elements

Automatically Automatically In dialog In dialog In dialog

Execute the report and note the status bar. © SAP AG

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4-1-2 Go to the pull list. Interpret the results of the automated steps: For which materials have planned requirements caused missing parts until Tuesday in two weeks and how big are they? ______________________________________________________ 4-1-3 For which storage location are there missing quantities? ______________________________________________________ 4-1-4 At which storage location has the system found a replenishment quantity? ______________________________________________________ 4-1-5 Can the complete missing quantity be covered from it? ______________________________________________________ 4-1-6 You accept the system proposal. Trigger material staging for the relevant components from warehouse 0001 to production storage location PL03 by choosing Stage. 4-1-7 Caution! Material staging (here by means of stock transfer) is not carried out until you save the pull list. If you need a printout of the list for the physical stock transfer, we recommend printing it before you save (Pull list ### Print). Save. 4-1-8 Check the stock transfer posting in the message log for the pull list (separate transaction). 4-2

After a production unit that was predefined with regard to time and quantity and in which you produced 90 motherboards on line T-L3## has been completed, you are to backflush the quantity produced in the system. 4-2-1 First, create a second session of the planning table for repetitive manufacturing (access by selection production line T-L3##, plant 1200). 4-2-2 In the first session, backflush 90 pieces of the motherboard material T-B10## produced on line T-L3## in plant 1200. To do so, enter the data on the backflush transaction screen. You can find it in the Backflush menu for repetitive manufacturing. Then choose Post with correction. 4-2-3 From the following screen, explain which components of assembly T-B10## were backflushed on the line but do not exit this display: ______________________________________________________ ______________________________________________________

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______________________________________________________ 4-2-4 Due to a technical defect of a machine, you needed 3.5 hours to produce 90 pieces instead of 3 hours as specified in the production rate in the routing (30 pieces per hour). To correct this, choose Actual activities. On the following screen, select the only line offered and confirm. On the next screen, choose the ProdTime field under Activities and overwrite the planned value under Current to Confirm with the actual value of 3.5 h. Choose Enter to confirm and save. 4-2-5 Go to the second session (planning table) and look at the quantities on the line while pressing F5 (= Update). How have the planned quantities changed? ______________________________________________________

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Solutions Unit: Repetitive Manufacturing Topic: Master Data 1-1

The Repetitive Manufacturing menu is in the Production folder. 1-1-1 On the SAP Easy Access screen, choose Logistic → Production → Repetitive Manufacturing The main master data is also in the Production folder: SAP Easy Access screen: Logistic → Production → Master Data 1-1-2 SAP Easy Access screen: Tools → Accelerated SAP → Customizing → Edit Project Transaction: SPRO SAP Reference IMG → Production → Repetitive Manufacturing To jump directly to Customizing for Repetitive Manufacturing, enter transaction OPP3.

1-2

Logistics master data: - Material master - BOM - Routing - Work center (line)

1-3

SAP Easy Access screen: Logistics → Production → Master Data → Material Master → Material → Change → Immediately Material View Plant

T-F10## MRP4 1200

The three settings are: 1) Repetitive manufacturing indicator 2) REM profile 3) Production version 1-3-1 On the production version detail view, choose Check in the top right-hand corner. The consistency check has the following results: BOM and routing exist. There are no error messages. Exit the screen by choosing Cancel. 1-3-2 On the detail screen, you can find out that production version 0001 contains production line T-L1##. © SAP AG

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1-3-3 The number varies. The group counter is also displayed on the production version detail screen. You can find it under Planning data in the Rate-based planning line. 1-4

SAP Easy Access screen: Logistics → Production → Master Data → Bills of Material → Bill of Material → Material BOM → Display Material Plant Usage

T-F10## 1200 1

The assembly indicator Asm is set for 3 BOM items. 1-5

SAP Easy Access screen: Logistics → Production → Master Data → Routings → Routings → Rate Routings → Display Material Plant Key date

T-F10## 1200 Today

1-5-1 → Rate Routing Overview or Return Two routings exist (two group counters). 1-5-2 In the routing overview, select the line with group counter 1 and choose Operations. What is special is the fact that there is only one 1-5-3 operation that contains the (entire) line T-L1## as the work center and the production rate (30 pieces per hour). 1-5-4 Choose Goto → Header overview. In the routing overview, select the line with group counter 2 and choose Operations. The work center used in the second routing is T-L2##. (Note: we will not produce anything on this work center in the following exercises.) 1-5-5 In the routing overview, select a line and choose Header. The group counter is the same as that in exercise 1-3-3. 1-5-6 Production version 0001 only allows production according to the routing with group counter 1 since the group counter is taken over to the production version for a more detailed specification of the routing. 1-6

SAP Easy Access screen: Logistics → Production → Repetitive Manufacturing → Master Data → Product Cost Collector → Process Product Cost Collector Material Plant

T-F10## 1200

Select material T-F10## in the left part of the screen. Two product cost collectors already exist. They are assigned to the material by means of the production version (one product cost collector per production version). © SAP AG

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Solutions Unit: Repetitive Manufacturing Topic: Integration with Production Planning and MRP in the R/3 System 2-1

SAP Easy Access screen: Logistics → Production → Master Data → Material Master → Material → Display → Display Current Material Plant

T-F10## 1200

Strategy 50 (Planning without final assembly) has been defined. 2-2

SAP Easy Access screen: Logistics → Production → Master Data → Material Master → Material → Display → Display Current 1) Check whether the Repetitive Manufacturing indicator has been set on the MRP4 view for both materials. It has been set. 2) Check the production version for both materials. Has the Release indicator been set? Answer: Yes.

2-3

SAP Easy Access screen: Logistics → Production → Production Planning → Demand Management → Planned Independent Requirements → Create – For the procedure, see the exercise. No solution required. –

2-4

SAP Easy Access screen: Logistics → Sales and Distribution → Sales → Order → Create – For the procedure, see the exercise. No solution required. –

2-5

SAP Easy Access screen: Logistics → Production → MRP → Planning → SingleItem, Multi-Level – For the procedure, see the exercise. No solution required. –

2-6

SAP Easy Access screen: Logistics → Production → MRP → Evaluations → Stock/Requirements List Material Plant

T-F10## 1200

The plant stock as well as an individual customer segment for the sales order and a planning segment are displayed. There are planned orders for the planned independent requirements in the planning section. One planned independent requirement has been partly consumed by the sales order and results in a planned order in the individual customer segment due to the MRP run. © SAP AG

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The plant stock and the sales order stock must never be consumed by each other. Maketo-order production always involves separate, sales order-specific inventory management. 2-7

SAP Easy Access screen: Logistics → Production → MRP → Evaluations → Stock/Requirements List Material Plant

T-B10## 1200

Assembly T-B10## is produced in a make-to-stock strategy, which is why the plant stock is considered in the consumption. The secondary requirements that were created due to the planned independent requirements as well as the relevant planned orders are displayed. 2-8

© SAP AG

Materials T-B10## and T-F10## are pure repetitive manufacturing materials (Repetitive Manufacturing indicator is set in the material master). The planned orders can be used for production and can therefore not be converted to production orders.

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Solutions Unit: Repetitive Manufacturing Topic: Planning Line Loading in the R/3 System 3-1

SAP Easy Access screen: Logistics → Production → Repetitive Manufacturing → Planning → Planning Table → Change Mode To access the planning table, enter: Plant Selection

1200 Production line T-L1##

Choose Planning table. 3-2

Double-click a planned order in the planning table section that is ready for input (shown in white). The planned order has order type KD (Individual customer order).

3-3

Activate the assignment mode for the quantities not yet assigned in the planning table section that is ready for input by selecting the Not yet assigned line in the bottom Material data table (to select, click on the button at the beginning of the line) and then choosing the pushbutton displaying a truck. A symbol appears at the start of the line, signifying that you are in assignment mode for this line. Read the quantity in the Not yet assigned section and enter it in the field on the production line that belongs to the same period, and confirm. Deactivate the assignment mode again by choosing the corresponding pushbutton.

3-4

Double-click a planned order that has been assigned to the production line in the planning table. The planned order has order type PE (Run schedule quantity).

3-5

By dispatching a planned order on production line T-L1##, the line only reaches a comparatively low capacity load (see planning table: capacity data in the row for production line T-L1##). This means, you could theoretically dispatch further quantities for the same period. Note: The capacity data is not available on the same day as the production quantities since the quantities are determined to the day according to availability while the capacity load of the production line is determined to the hour and minute according to the production date. You can change the display from within the planning table by choosing View → Reference Dates → Production Dates.

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3-6

Save the line loading planning for the finished product T-F10##. SAP Easy Access screen: Logistics → Production → Repetitive Manufacturing → Planning → Planning Table → Change Mode To access the planning table, enter: Plant Selection

1200 Production line T-L3##

Choose Planning table. Switch on the assignment mode for the quantities not yet assigned in the planning table section that is ready for input by selecting the Not yet assigned line and then choosing the pushbutton showing a truck. Read the quantities in the Not yet assigned section and enter them in the field on the production line that belongs to the same period, and confirm. Switch off the assignment mode again and save. The T-B10## (which does not belong to any sales order) is on stock; the existing stock can be used for production planning. 3-7

© SAP AG

– For the procedure, see the exercise. No solution required. –

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Solutions Unit: Repetitive Manufacturing Topic: Material Staging and Backflushing 4-1

SAP Easy Access screen: Logistics → Production → Repetitive Manufacturing → Material Staging 4-1-1 Pull List – Trigger Replenishment Staging type Plant Selection period

Storage location level 1200 Tuesday in two weeks

On the Planned order tab, choose: Production line

T-L3##

Choose Global settings. On the Dialog control tab, choose: Create replenishment proposals Execute batch/stock determination Stage replenishment proposals Post replenishment elements Print replenishment elements

Automatically Automatically In dialog In dialog In dialog

Confirm your entries and execute the report. 4-1-2 Due to the planned requirements, there are missing quantities for material TT6## until Tuesday in two weeks. The system automatically created a replenishment proposal and determined stock for component T-T6## in storage location 0001. The pull list shows how big the missing quantity is. 4-1-3 There are missing quantities at the production storage location PL03, where the components for assembly production are to be staged. 4-1-4 The replenishment quantity was found in central warehouse 0001. 4-1-5 Yes, the staging quantity is equal to the missing quantity. 4-1-6 – For the procedure, see the exercise. No solution required. – 4-1-7 – For the procedure, see the exercise. No solution required. – 4-1-8 ###Log Call up the log in the Material Staging menu, enter Today as the from-date, and choose Execute. The stock transfer was successfully posted in the system.

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4-2

SAP Easy Access screen: Logistics → Production → Repetitive Manufacturing → Backflush → REM Backflush 4-2-1 Choose System → Create session to create another session. In the new session, choose: SAP Easy Access screen: Logistics → Production → Repetitive Manufacturing → Planning → Planning Table → Change Mode To access the planning table, enter: Plant Selection

1200 Production line T-L3##

Choose Planning table. 4-2-2 Enter the following data on the Backflush transaction screen: Backflush type Backflush qty Material Plant Prod.version *)

Assembly backflush 90 pieces T-B10## 1200 0001*)

The production version comprises the production on line T-L3##.

Choose Post with correction. 4-2-3 The current BOM was exploded during the backflush. The system determined the materials to be backflushed in the BOM explosion. The all or nothing principle applies, which means that all four materials displayed are backflushed. 4-2-4 – For the procedure, see the exercise. No solution required. – 4-2-5 Go to the second session (planning table) and choose F5 (Reaccess planning table). The oldest planned order quantity or quantities are reduced according to the backflush quantity. Explanation: For demonstration purposes, the backflush was made with a date (today) that is before the actual production dates. The backflush quantity is therefore interpreted as “over-production” that reduces later planned orders accordingly (oldest planned orders first).

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Project-Oriented Production Contents: Application areas of project-oriented production Project-oriented production: characteristics Application-wide processes Master data and prerequisites Production lots Master data for production lots (BOM, plan) Process flow Cost estimate for production lots Planning of production lots Production of production lots

Assignment of sales orders to production lots Integration with other types of production

 SAP AG 2003

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Project-Oriented Production: Unit Objectives

At the conclusion of this unit, you will be able to: Explain the characteristics of project-oriented production Describe the main steps of the overall process Explain the main functions for planning and production using production lots

 SAP AG 2002

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Course Overview Diagram

1

Course Overview

2

Introduction Order-Controlled Production with Production Orders

3

4

Order-Controlled Production with Process Orders

55

Project-Oriented Production

6 7 8

5

Repetitive Manufacturing Kanban

Summary

 SAP AG 2002

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Main Business Scenario

Your company produces products of some kind in projectoriented production. You belong to the team that is implementing the prerequisites of project-oriented production as part of the implementation of mySAP.com components. For the implementation, you must create the whole process chain for in-house production. This will allow your company to organize, control, and execute production based on the mySAP SCM Production solution. Important stages of project-oriented production are the creation and costing of a production lot, the processing of BOMs and routings that are related to the production lot, planning and production based on the production lot, and assignment of sales orders to production lots that have already been manufactured. You can use all production types explained in the previous units to carry out the production.

 SAP AG 2002

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Project-Oriented Production: Characteristics (1) Planning and Production Linked to Account Assignment Planning and production with reference to production lot Production lot = account assignment category (no separate order category)

Account assignment category = WBS element

Integration of Project-Oriented Production Master Data Management (mySAP PLM) Sales (mySAP CRM, SAP R/3-SD) Production or Material Requirements Planning (SAP R/3, SAP APO) Capacity Requirements Planning (SAP R/3, SAP APO) Materials Management (SAP R/3 IM) Logistics Execution (SAP R/3 WM) Quality Management (SAP R/3 QM) Controlling (product-oriented) (SAP R/3 CO) Business Intelligence (mySAP BI) or Logistics Information System  SAP AG 2002

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Project-Oriented Production: Characteristics (2) Functions of Project-Oriented Production Production lot creation Processing of BOMs and routings that are related to the production lot Production lot costing Production lot planning for a certain period MRP for production lot Production of individual production lot Progress check for production lot Assignment of production lots to incoming sales orders Storage (valuated project stock) Sales order delivery Settlement Project-oriented cost accounting

 SAP AG 2002

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Project-Oriented Production: Characteristics (3)

Information Systems and Reports Project information system Order information system Missing parts information system Multilevel order reports Business Information Warehouse (SAP BW)

 SAP AG 2002

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Demo Scenario: Production of a Production Lot Outbound delivery

Sales order 600034256

Sold-to party

0002 Finished goods warehouse

Goods receipt

SD

Final assembly II

Production plan

Production lot 2003_45

Final assembly I Confirmation

Work center R-F##

2003_45

Work center R-E## Confirmations

Pre-assembly II

Work center R-M##

Inbound delivery

Pre-assembly I

Work center R-V## Stor. location PROD-1300 Material staging by stock transfer

0001 Material warehouse

Plant 1000 (Hamburg)

 SAP AG 2003

Demonstration example for project-oriented production: In plant 1000, pumps and their assemblies (casing, shafts,...) are produced. The pre-assembly and final assembly as well as the assembly production is carried out as make-to-order production. Due to long lead times and the fact that sales orders come in late, production lots must be used for planning and preproduction. Production orders are used to carry out the production. The individual parts for assembly production are transferred via picking or the pull list from the material warehouse to production. The most important data in the training system is: Material numbers T-POP Pump 100-100 Casing 100-200 Fly wheel 100-300 Hollow shaft 100-400 Electronic

(make-to-order and make-to stock) (make-to-stock) (make-to-stock) (make-to-order and make-to stock) (make-to-stock with production version)

Work centers 1310 Pre-assembly 1 1320 Pre-assembly 2 1904 Final assembly 1 1906 Paint shop 1905 Final assembly 2 1721 Check © SAP AG

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Project-Oriented Production: Process (1)

Planning for each production lot

MRP per production lot

Production of individual production lots

Consumption of production lot (such as delivery for sales orders)

Basic data per production lot BOM

Routing

Revenue & cost controlling Variance calculation based on production lot

Production lot costing Activation  SAP AG 2002

Project-oriented production (SEIBAN) supports costing, planning, external procurement, in-house production, and inventory management of products with reference to a production lot and a deferred assignment of the production lot to incoming sales orders. The production lot is a WBS element (account assignment object) that creates individual planning segments in MRP. In project definition, the Valuated project stock indicator is activated. For the WBS element, the operative indicators Account assignment element and Billing element (for the assignment of the production order and the account assignment of sales orders that are received later) are activated. Production lot costing can be carried out with a specific quantity structure (BOM, routing). The result can be activated as a specific material price (CO-PC). In demand management, planned independent requirements are assigned to the production lot using account assignment category Q. Material requirements planning (R/3 MRP) creates planned orders that are converted to manufacturing orders (usually production orders). The orders are assigned to the production lot (WBS element) and can thus be evaluated in the project information system. The production orders are produced, confirmed, and delivered, and a project stock (with reference to the production lot) is created. When sales orders are received, they access this project stock provided that the sales order items are controlled by account assignment category Q (default) and are assigned to the production lot (WBS element). © SAP AG

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Project-Oriented Production: Process (2)

PS

Acc.assmt cat. Q

PP PBED

T -POP T-POP

SD

Production lot= WBS element

2003_45

Jan. 100

Feb. 120

SalesOrd. SalesOrd.

Delivery

T -POP T-POP

T -POP T-POP

Billing

T -POP T-POP

Mrch Apr. 130 110

MRP: Planned order -> Convert to prod.order

MM

PP 2003_45 Prod. order

Goods receipt

 SAP AG 2003

The production lot creates the link between a pre-produced material and sales and distribution, materials management (purchasing and inventory management), and production planning and control.

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Production Lot Processing

Production planning

Order settlement

15

1

Variance calculation

14 Create delivery

Delivery to stock

WIP determination

Production lot Plnd.ind.reqmt

13

3

Planned order

4

Master data per prod.lot

Production order

11

Sales order is received

Enter planned indep.reqmt

Costing

12

Confirmations

Create production lot

2

5

Project stock Sales order

10 9

8

Production lot costing

6 7

MRP Material staging

Order execution  SAP AG 2002

Production planning specifies the concrete quantities for production lots for the planning period (month, quarter). They must be entered as planned independent requirements. With this production type, order-related BOMs and routings are often used as master data. This master data can be provided with reference to the production lot (the same applies to sales order BOMs and routings). You copy existing material BOMs and routings and continuously adjust them to the customer's requirements. MRP creates individual planning segments per production lot. Usually production orders are used for order execution, but repetitive manufacturing can also be used. Incoming sales orders (often already notified during production planning) must be assigned to the production lots that are being produced. In this way, the sales order assignment to the individual planning segment of the production lot in MRP as well as the requirements consumption between the planned order and the sales order are performed. The goods from production are delivered to a project stock from which the delivery to the customer must take place. WIP determination, variance calculation, and settlement are generally periodic work for Cost Object Controlling (production lot), which are usually processed in the background. © SAP AG

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Project-Oriented Production & Project Management

PS

SD

SD

WBS element = production lot

MM Company

M M

Purch. order

PP

Prod. order

 SAP AG 2002

To carry out project-oriented production, you do not need to use project management (PLM-PM). You can, however, use it within a project for the in-house production of a material. WBS elements are usually part of a work breakdown structure in PLM_PM. In project-oriented production, the WBS element is used as a production lot and can be used without reference to a project. The production lot (WBS element) creates the link between the project and sales and distribution, materials management (purchasing and inventory mangement), and production planning and control.

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Project-Oriented Production: Master Data = WBS element (account assignment object) Project profile

Production lot

Master data for material

Material

(product and components) Planning strategy group "S1" BOM

Production lot-related BOMs

BOM

Master data for work center (standard value keys, available capacities, formulas, activity types)

Work center

Routing

Routing

Production lot-related routings

 SAP AG 2002

The material to be produced must have a planning strategy group that points to a requirements class on the sales order side for which the account assignment category "Q" (engineer-to-order production) is defined. Using transaction CSPB (WBS BOM Browser), you can create production lot-related BOMs from single-level BOMs and process them. Using transaction CA01 (Create Routing), you can create production lot-related routings from routings and process them. In a special selection procedure, the valid BOM and routing for MRP or the production order is selected.

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Production Lot-Related BOM and Routing

Material / Plant

Production lot-related BOM

Production lot-related routing

Production lot costing

$ $ $ $ Cost component split Cost estimate activation

Price per production lot (= per project stock)

 SAP AG 2002

You can create BOMs and routings specifically for a production lot (or per WBS element to be more precise). In this way, you can prepare and apply special technolgies for production deviating from material BOMs and routings. Production lot-specific BOMs and routings are automatically transferred to production orders with reference to the account assignment (production lot). In Product Cost Planning (CO-PC), you can use these BOMs and routings to create "production lot costing". Production lot costing can be activated. Thus, a material price is defined that is used to valuate stocks and consumption of this material instead of the standard price.

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Transfer of Requirements SD/PP (1) Demand Management Material master

Planning strategy group

SD Customizing Table TVEPZ

1.

0

2.

Sales document type Item category . . . . .

1 Valid planning strategies

Planning strategy Main planning strategy Alternative strategies

2

Item category group

Check for valid requirements type

MRP type Requirements type

Plnd Indep. Reqmts

Cust. reqmts

 SAP AG 2003

Using the planning strategy group, you assign the valid planning strategies to the material in the material master. This is a prerequisite for finding the correct requirements type in planned independent requirements management and in sales order management. You maintain planning strategies (and planning strategy groups) in SAP R/3-Customizing: Choose Production -> Production Planning -> Demand Management -> Planned Independent Requirements -> Planning Strategy -> ... The main strategy of the strategy group determines the default requirements type for sales orders and for planned independent requirements. Requirements classes are assigned to requirements types. The requirements class is used to call up the transfer of requirements SD/PP, the MRP relevance, the availability check in SD, the account assignment category and many further processes. If there is no entry for the strategy group in the material master, the system uses the item category group (Sales tab in the material master) and the MRP type to find the requirements type for the sales order. You can explicitly proceed this way; however, it is not a good option for transferring requirements to PPC.

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Transfer of Requirements SD/PP (2)

Requirements type Planning

Customer requirements

Requirements class

Requirement Availability check

Processing Y/N

Transfer of requirements Y/N

Costing

Configuration Y/N Consumption in config.

Consumption customer requirements/planning (assignment)

Assembly type

Automatic reduction of pl. independent requirements

Account assignment category Q

MRP

Y/N

Product allocation

Y/N

Automatic sales order planning

PAUF FA Network

Costing

Y/N

Costing method Product Individual Costing variant

 SAP AG 2003

You maintain requirements classes in SAP R/3-Customizing: In the IMG, choose Sales and Distribution -> Basic Functions -> Availability Check and Transfer of Requirements -> Transfer of Requirements -> Define Requirements Classes.

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Sales Order/Project Stock & Collective Stock

PS

SD SD

PS

Sales order stock

Project stock Plant stock / collective stock

 SAP AG 2002

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Valuated Project Stock: Quantities and Values 2003_45

Complete report of quantities and values on each level

$ $ 4100,4100,T -POP T-POP Production Production order order 60002585 60002585

100-100 100-100

100-200 100-200

100-300 100-300

Vendor 1000  SAP AG 2003

Every quantity flow (MM) has a corresponding value flow in financial accounting (FI document) and cost accounting (CO document). All planned costs, commitment values, and actual costs (also for individual requirements stock components) are displayed in the order or network. Complete report of values on all production levels (unlike non-valuated stock where values from different levels are mixed and displayed as costs for the WBS element). For the project stock, the G/L account determination can be controlled differently to the collective stock through separate valuation classes in the material master. WIP is created for the orders as it is for collective stock and does not need to be calculated by results analysis (as it needs to be for non-valuated stock).

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Non-Valuated Project Stock: Quantities and Values

Value check at WBS ! Incomplete costs at orders! !! No FI documents!!

2003_45

4100,4100,T -POP T-POP Production Production order order 60002585 60002585

100-100 100-100

100-200 100-200

100-300 100-300

Vendor 1000  SAP AG 2003

Material components can be managed in a project stock or sales order stock (WBS element or sales order item). In the example, both the assembly T-POP and selected components are managed in the project stock. Procurement for these materials (for example, the production order for T-POP) can be displayed in the info systems for the project. Non-valuated project stock means that quantity flows and value flows are separated. Goods issues, for example, lead to quantity updates in the network or production order (the material is consumed). The material movements are usually non-valuated, which means they do not create FI or CO documents. Only the goods receipt for the purchase order creates an FI document that is assigned to the WBS element. In networks or production orders, this procedure results in incomplete costs for the relevant MRP level. WIP stocks must be created by results analysis and its settlement.

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Collective Stock: Quantities and Values

Project costs

2003_45

4100,4100,T -POP T-POP

100-100 100-100

100-200 100-200

Make-to-Stock Production

Production Production order order 60002585 60002585

100-300 100-300

Vendor 1000  SAP AG 2003

Material components that are managed in collective stock have synchronous quantity and material flows. Every quantity posting (for example, goods receipt, material withdrawal from warehouse, delivery) results in a corresponding posting in FI / CO. However, only the costs and availabilities of the directly assigned components are of interest and visible for a project. In the example, assembly T-POP is withdrawn from the warehouse for a price defined in the valuation strategy. The production order for producing T-POP and its costs are not shown in the project information system. Only the reservation and the later goods issue of assembly T-POP to the network is displayed.

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Project-Oriented Production: Information Systems Basis (1) Order information system

Multi-level order overviews for projects and sales orders

Orders

(1)

(1)

Project and order structure

Missing parts - information system

Missing part record (index record)

Controlling reports

CO objects of orders

Key figures, historical values (Business Information Warehouse)

BW library

(1) Project information system

Projects

 SAP AG 2002

Project-oriented production is supported by several information systems. They differ in the way they use the order database (directly or indirectly) as well as in their results. Systems marked with (1) are profile-controlled. You set up the profile in Customizing for the relevant application (shop floor control, project system).

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Project-Oriented Production: Summary

Project-oriented production is a form of production planning and shop floor control that has particular advantages for make-to-order production with long lead times. Its main characteristic is the use of production lots (WBS elements) as account assignment objects for production planning, external procurement, and in-house production. Using production lots in make-to-order production enables the planning and pre-production of individual parts, assemblies, and products before a real sales order is received.

 SAP AG 2002

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Order-Controlled Production with Process Orders Contents: Application Areas for Process Orders Process Order-Controlled Production: Characteristics Application-Wide Processes Master Data for Process Manufacturing Structure and Elements of a Process Order Editing a Process Order Order creation, integration with planning Process planning Order processing Order settlement

 SAP AG 2002

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Order-Controlled Production with Process Orders

Contents (contd): The Concept of Process Management Elements of PI Sheets Production in Compliance with GMP Approved process orders Material identification In-process quality check Material reconciliation Batch record Digital signature

Information Systems

 SAP AG 2002

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Process Orders: Unit Objectives

At the conclusion of this unit, you will be able to: Explain the characteristics of order-controlled production with process orders Describe the individual steps in process order management Describe the concept of process management and use a PI sheet to execute a process order Explain the special functions for process order management in the pharmaceutical area

 SAP AG 2002

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Course Overview Diagram

1

Course Overview

2

Introduction Order-Controlled Production with Production Orders

3

44

Order-Controlled Production with Process Orders

5

Project-Oriented Production

6 7 8

4

Repetitive Manufacturing Kanban

Summary

 SAP AG 2002

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Main Business Scenario

Your company is a process manufacturing company. You produce order-related products. You are on the project team for implementing shop floor control functions based on process orders. Important steps in process order management are order creation, batch determination, scheduling, availability check, release, transfer of control recipes to process control, material withdrawal, confirmations, material delivery, and settlement. To link the process control level with process control systems and PI sheets, you must set up the process management functions. For the production of pharmaceutical products, you require the following functions: order approval, material identification and reconciliation, in-process quality checks, batch records, and digital signatures.

 SAP AG 2002

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Application Areas for Process Orders Typical Typical industries industries

Chemical Pharmaceutical Food manufacturers (…)

PRODUCT COMPLEXITY

Production Production according according to to customer's customer's reqmts reqmts

Make-to-order Make-to-order production production

Batch Batch production production

Production campaigns

Mass production

PRODUCT STABILITY  SAP AG 2002

Process orders are used in different areas of the process manufacturing industry. Process orders can be used for various production procedures and identified, for example, according to the criteria product complexity and product stability.

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Process Order-Controlled Production: Characteristics (1) Order-Related Production Order type: Process order (order type '40') Production in charge quantities per order

Integration of Process Orders Master Data Management (mySAP PLM) Sales (mySAP CRM, SAP R/3-SD) Production or Material Requirements Planning (SAP R/3, SAP APO) Capacity Requirements Planning (SAP R/3, SAP APO) Materials Management (SAP R/3-IM) Logistics Execution (SAP R/3-WM) Handling Unit Management (SAP R/3-HU) Batch Management (SAP R/3-BM) Quality Management (SAP R/3-QM) Controlling (order or product-oriented) (SAP R/3-CO) Business Intelligence (mySAP BI) or Logistics Information System Classification system (batch functionalities)  SAP AG 2003

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Process Order-Controlled Production: Characteristics (2) Basic Functions of Process Orders Status management Production with production versions Scheduling Calculating capacity requirements Costing Batch number assignment Manufacture of co-products Availability checks Material quantity calculation Active ingredient management Batch determination Resource network Resource selection

Generating control recipes for process control level Material staging with reservations Confirmation of quantities, activities, time events (variable confirmation procedure) Goods receipt (to stock) Period-end closing (process cost allocation, overhead rate, WIP determination, variance calculation, order settlement) Archiving and retrieval Mass processing

Printing shop floor papers  SAP AG 2002

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Process Order-Controlled Production: Characteristics (3) Link to Process Control Level Order processing with process management Process control and flexible backflushing In R/3: With PI sheets Outside of R/3: With process control systems (link via the PI-PCS interface)

Functions for GMP-Compliant Production Approval procedures for master recipes and inspection plans Approved process orders In-process quality checks Material identification Material reconciliation Batch records

Batch usage Digital signatures

 SAP AG 2002

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Process Order-Controlled Production: Characteristics (4) Additional Functions Production of configurable materials Multi-level order network Assembly orders External procurement components Plant-wide production (planning and production plant) Phase-out control of material components

Information Systems and Reports Alert Monitor Process order information system Process message reporting Production information (SAP BW or SAP R/3 LIS) Missing parts information system Controlling report Batch where-used list  SAP AG 2002

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Application-Wide Processes

Independent requirements

Demand program

Sales

Sales orders

Costing

Stock

MRP

Planned orders

Make-to-order prod.

Process orders

B A C D E

Order execution Delivery to stock Order settlement

Capacity Requirements Planning

Material forecast

Batch record/archiving Integration with QM/LIMS

Inventory mgmt

Integration with PCS

 SAP AG 2002

Process order management is a central part of a complex process chain starting with a requirement (planned or customer requirement) and ending with the goods issue of a finished product. Process order management controls the whole process of the in-house production of products. Process order execution is integrated with the functions of capacity requirements planning, costing, and inventory management. In addition, there are links or interfaces to R/3 Quality Management, external laboratory information systems (LIMS), and process control systems.

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Master Data for Process Orders Batch Batch Material Batch Batch

Batch Batch

Resource

.. . Production version

Master recipe

Integrated BOM maintenance

Material BOM

 SAP AG 2002

Master data is data in the SAP System that remains unchanged over a long period of time. It contains information that is used in the same manner over and over again. The material is the central master record in logistics. In general, SAP defines a material as a substance or commodity that is bought or sold on a commercial basis, or is used, consumed or created in production. A batch is a uniquely identifiable partial quantity of a material. The batches of one material are managed separately in stock. With regard to the production process, a batch is a quantity of a material produced during a given production run. This quantity, therefore, represents a non-reproducible unit with unique specifications. The master data for resources describes the means of production in the production process. A production version determines which alternative BOM in combination with which master recipe is used for process order manufacturing. The master data of the master recipe describes the production of one or more materials in one production run without relating to a particular order. Material BOMs describe the structure of products that are produced in a company. They are usually created and maintained from the master recipe (integrated maintenance).

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Material and Batch Batch Partial quantity of a material that is managed separately from other quantities of the same material in stock. A quantity of a material produced during a specific production run, which therefore represents a non-reproducible, homogeneous unit with unique specifications.

Material

Values:

•Acidity: Batch mgmt reqmt •Total solids: •Freezing point:

Vanilla ice cream

Batch C1

Batch C2

7 - 9 pH 35 - 45 % (-18o) - (-14o) C

Batch B3

For process order 60114

For process order 60225

For process order 60438

Specifications:

Specifications:

Specifications:

•Acidity: •Total solids: •Freezing point :

7 pH 36 % -18 oC

•Acidity: •Total solids: •Freezing point :

9 pH 38 % -19 oC

•Acidity: •Total solids: •Freezing point :

8 pH 34 % -17 oC

 SAP AG 2002

In the SAP System, batch master records always depend on their corresponding material master records. Batches are created for a material. In general, the data of a material master is valid for all batches assigned to it. In contrast, a batch master record contains data that uniquely identifies a batch and characterizes it as a non-reproducible unit. The characteristic batch specifications are assigned using characteristics from the classification system in the material master and are inherited by the corresponding batch master records. If a material is to be produced and managed in batches, the batch management requirement indicator must be set in the material master record. A batch master record is usually created by the system in the background for certain business operations (such as goods receipt). Users can also create batch master records directly in master data maintenance.

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Batch Management in Supply Chain Management

Procurement

Production

Warehouse Management

SD

Warehouse Management KM T KMT

A

A B

Purchase order

Warehouse

B

Proc.order/ prod.order

A

Warehouse

Batch determination Batch assignment

A S

Sales order

Batch determination

Batch assignment

 SAP AG 2002

Batch management is used in all areas of logistics. A batch can be traced across the whole supply chain, from the receipt of the raw material to processing in production and the creation of the final product, all the way to sales and delivery to the customer. A batch master record can be used to assign a batch to a material at different places along the supply chain. For example, if the partial quantity of a material produced in batches leaves a production process (process order) with certain specifications, it is posted to stock with a batch number and can be uniquely identified there. If a batch is required in the supply chain with certain specifications, the batch determination function can be used to have the system find suitable batches in stock. In production, for example, batch determination is used in a process order to find and withdraw suitable material components for the product to be produced.

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Demo Scenario: Ice Cream Production in Plant 1100 Delivery to stock

Delivery stock 0001

Mixer

Pasteur. & Homog.

T-IC100

T-IC200

Blast freezer

T-IC300

Packaging line

T-IC400

Freezing line

T-IC500

Resources

Material staging

Process control system

PI sheet

Central warehouse 0002

Backflushing: Confirmations of material movements ( ... )

 SAP AG 2002

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Structure of the Process Order

Process order Header

Material

Operation overview

Material list Material component

Operation

Resource Phase

Material quantity calculation

 SAP AG 2003

Operations describe the different steps required during the production process. For a more detailed description of these steps, operations are assigned phases. An operation is assigned exactly one resource. At the same time, the resource assignment applies for all phases assigned to the operation. The processing sequence of the phases is defined in relationships. The material list is made up of components representing the materials entering and leaving the production process as well as temporarily existing materials and their planned quantities. It also defines the assignment of these material components to phases of the order according to their appearance in the process. In material quantity calculation, you define formulas to calculate the material quantities to be used or obtained in a production process, taking into account the mixing ratios of the input materials, yield ratios of the products and remaining materials as well as specific material attributes (for example, active ingredients).

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Elements of the Process Order Order header

Assignments

Documents

Production version Resource network Prod. scheduler Planned order Sales order Insp. lot (QM) ( ... )

Order no. Status Material number Batch Prod. qty (plnd/act.) Dates (plnd/act.) Plant

Doc. number Doc. type

Header

Operation overview

Operations Resource

Control key Standard values Relationships Ctrl. recipe destination

Char. for process control level

Planned Actual costs

Settlement rule Settlement profile Settlement receiver

Material list Material components

Phases

Process instructions

Costs

Confirmations Activities Time periods Op. quantities

Material number Req. qty (plnd/act.) Requirements date Reservation Batch

Secondary resources Control key Standard values

Material quantity calculation

 SAP AG 2003

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Editing a Process Order Archiving / deleting

Order request Process order creation

Batch record Process order settlement

Availability check

Proc. order

Resource/ line scheduling

Variance calc. Operations

Material receipts

Phases

In-process quality checks

Process instructions Costs

Order confirmations

Resource selection Batch determination Material quantity calculation

Resource assignments Material components

Process order release

Relationships

Order print

Material staging / Material withdrawals

Send control recipes

Process messages to diff. dest.

Edit PI sheet

 SAP AG 2003

The graphic shows the main steps that are performed during process order management to control process manufacturing in the SAP System. The procedure involved in process order management can be divided into the following steps: Process planning Process order execution / process management Completion of order Many of these activities can run automatically or in the background so that manual processing of orders is minimized. WIP determination, deviation determination, and settlement are generally periodic work for Cost Object Controlling and are usually processed in the background. A number of settings must be made (Customizing) for each step to allow for successful order processing.

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Order creation options Creating without a planned order

Material Production version

Master recipe

Master recipe

Material BOM

Production version

Material BOM

Process order

Create with planned order

Master recipe

Production version

Material BOM

Planned order

Process order

 SAP AG 2003

For the creation of a process order and a planned order, a suitable production version is determined for the material based on the validity period and the charge quantity range. A production version determines which alternative BOM in combination with which master recipe is used for production. If a process order is created without a planned order, it takes the recipe and BOM from the production version. When a planned order is converted, the production version created for it is made known to the process order and its recipe is transferred. The BOM is not reread, but rather the dependent requirements of the planned order are converted to reservations for the process order.

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Integration with Planning (R/3 or APO)

APO

R/3

Demand Planning (DP)

Flexible Planning Demand Management

Plnd indep.reqmt

Plnd indep.reqmt Consumption

Sales (SD)

Sales order

Production Planning (PP) MRP

Sales order

Supply Network Planning(SNP) Production Planning (PP/DS)

Planned order Manufacturing

Process order

Purchasing Purchase requisition Purchase order (MM) Stock transp. requisition Stock transport order

Planned or process order

Conversion

Purchase requisition Purchase order

Conversion

Stock transport requisition Stock transport order

Deployment

 SAP AG 2003

The mySAP SCM solution offers two general solution methods for integrating planning and production: Planning with the functions of the APO component Planning with the functions of the R/3 component Production preparation, execution and control are always performed with the functions of the R/3 component, but also depending on the production type. Other functions (scheduling or the availability check, for example) can be carried out using either of the SAP components. Between the two SAP components, the master data and transaction data (planned orders, process orders, purchase requisitions, purchase orders, stocks, and so on) are usually exchanged via the Core Interface (CIF). Specific events lead to the transfer of data from R/3 to APO (release, confirmation, goods receipt) and vice versa. Sales orders are usually entered in R/3 and transferred from there to APO. Planned orders can be generated in material requirements planning in R/3 (MRP) or in APO with a) Supply Network Planning (SNP) (plant-wide planning in a long-term planning horizon across the whole supply chain and procurement chain) and b) Production Planning and Detailed Scheduling (PP/DS) (Planning in a defined, short-term period (production horizon) in a production plant)

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Order creation with planned orders Planned order Material Material no. no. (product) (product) Production Production version version Requirements Requirements quantity quantity Requirements Requirements date date

Material Material no. no. (component) (component) Requirements Requirements quantity quantity Requirements Requirements date date

Material components (reservations)

Order item

Process order Inspection lot Inspection data

Secondary resources Operations / phases

Material quantity calculation Process instructions Formulas Formulas

Insp. Insp. char. char. Insp. Insp. procedures procedures

Operations Operations // phases phases Control Control key key Standard Standard values values Relationships Relationships

Process Process instruction instruction characteristics characteristics Ctrl. Ctrl. recipe recipe destination destination

Master recipe (for production version)  SAP AG 2003

Planned orders are created in material requirements planning (R/3 - MRP) or in planning in APO (APO - PP/DS or SNP) The creation of process orders via planned orders is the most important application form when using the PP-PI application. The process order data is created automatically this way. Inspection data is copied from the master recipe when an inspection lot is generated, but not written in the process order. Planned orders generated in planning can be converted to process orders (and purchase requisitions to purchase orders) by the MRP controllers (buyers) both in APO and in R/3.

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Process planning

Order request Process order creation Resource/line scheduling Resource selection Batch determination Material quantity calculation

Material availability check Process order release

 SAP AG 2003

Process planning comprises all activities that are performed during the time between creation and release of a process order. The goals and methods of resource scheduling for process orders are the same as those for work center scheduling for production orders. They can be found in the unit Order-Controlled Production with Production Orders on the pages Detailed Scheduling (Work Center Scheduling) and Example: The Detailed Scheduling Planning Board (APO). The material availability check for process orders is the same as the availability check for production orders. They are described in the unit Order-Controlled Production with Production Orders on the page Availability Check for Material.

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Batch determination Search strategy

Process order Material list

. . .

Batches found in stock: Batch C1 Dextrose equiv. 80 %

Cornstarch . . .

Selection criteria

Dextrose equivalent: 75 % - 85 %

Batch C2 Dextrose equiv. 66 % Batch C3 Dextrose equiv. 78 %

Batch assignment  SAP AG 2003

You can use the batch determination function to find batches with certain material specifications required for production. According to specific selection criteria, the system looks for batches in stock and selects them. You can classify material list components in classes of the class type Batch. This is how you define selection criteria for batch determination as characteristic values for material list components. The actual characteristics of a batch are also specified using characteristic values. Based on the selection criteria and a search strategy, the system looks for and selects suitable batches in stock. An availability check is performed at batch level.

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Material Quantity Calculation Ingredients Raw material

Catalyst

Batch charact. Concentration: 80%

Formulas

Phase quantities

Batch charact. Potency of active ingredient: 95% By-product

Catalyst

Product

Yield  SAP AG 2002

In material quantity calculation, you define formulas to calculate the material quantities to be used or obtained in a production process, taking into account the mixing ratios of the input materials, yield ratios of the products and remaining materials as well as specific material attributes (for example, concentration, active ingredient content). You can also define formulas for calculating phase quantities in material quantity calculation. You can perform active ingredient management in a process order when using batch determination and material quantity calculation simultaneously.

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Order Release Functions

Order creation Resource/line scheduling Batch determination Availability check

Order release

Print documents

Create and download control recipes

Generate insp. lots

Process messages

In-process quality inspections

Material withdrawal

Confirmations

Goods receipts

 SAP AG 2002

Process orders have a status management which controls the possible processing sequence of the individual business operations. When an order is released, a status is set accordingly. The process order must have status Released so that the business transactions for process order execution and process management can be executed. You can release individual phases and operations, one complete order or several orders at once. Various activities can be triggered automatically when an order is released: Batch number assignment for the product Batch determination for the material components Material availability check Control recipe generation Generation of an inspection lot for an in-process quality check

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Process Management

Process planning

Process order

Other message destinations

Process management

Process control

Execution

Control recipe (process instructions)

Process messages

PI-PCS Process control system PI sheet

 SAP AG 2002

Process management is the interface between PP-PI and the systems involved in process control. Due to its flexible structure, it can be linked to fully automated, partially automated, and manually operated lines. Process management includes the following functions: Receiving control recipes with process instructions from released process orders. The process instructions define in detail the process steps to be executed and the process data to be confirmed (using process messages). Transferring control recipes to the corresponding process operators or process control systems Manual processing: displaying control recipes in natural language in the form of PI sheets that can be maintained on the screen by the process operator Receiving, checking, and transferring process messages with actual process data from the process control system or the PI sheet Data is exchanged with process control systems using the interface PI-PCS.

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The material staging process Material withdrawal slip Pull list Pick list PI sheet Weighing system (PI-PCS) Backflushing

MM-IM Warehouse Mgmt Inventory Management

List of kanbans to be moved

Kanban control

List of transfer requirements Transfer orders PI sheet Weighing system (PI-PCS)

LE-WM Storage Bin Mgmt Warehouse Mgmt System Pick parts

Process order

Process order generates transfer requirement

Crate parts

Container is ordered

Release order parts

Material is ordered

 SAP AG 2003

The basis for material withdrawal for process orders are material withdrawal slips, pull lists, pick lists and similar documents, as well as PI sheets and weighing systems linked via the PI-PCS interface. The R/3 System has various procedures for controlling material staging: a) Warehouse management with the component MM-IM (Inventory Management) b) Replenishment control with the component Kanban c) Warehouse management and replenishment control with the component LE-WM Management)

(Warehouse

The warehouse management system offers the three following options: Pick parts are staged for the process order directly in the amount of the requirements quantity. The staging of these parts for the process order can be done at a physical storage location or a dynamic one (process order). For this type of staging, you can create transfer requirements manually or automatically at order release. Crate parts are manually ordered when a crate is almost empty. Release order parts are ordered manually. Here the required quantity is calculated from the target quantity of the components of the selected orders that have been released. The stock situation in production and replenishment are taken into account.

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Standard postings for process orders Process control system

PI-PCS

Process Process messages messages

Manually

Postings for process order Goods issue postings Confirmations

PI sheet

(same as for production orders)

- For phases and sec. res. - For process orders

Goods receipt postings

PI-PCS Control Control recipies recipies (process (process instructions) instructions)

Process order

Documents

Data updates

Resulting activities

 SAP AG 2003

The standard postings for process orders (goods issue, confirmation, goods receipt) can be performed using manual data entry in the R/3 System, process messages from a PI sheet or a process control system. The functions and procedures for manual entry for process orders are the same as those for production orders. They are explained in the unit Order-Controlled Production with Production Orders (goods issue posting, order confirmation, confirmation procedures, goods receipt posting). The process instructions of the order define which process messages are requested by a PI sheet or a process control system. Confirmations are entered for phases and secondary resources (and not for operations). The simplest confirmation procedure is the confirmation for the process order.

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Flexible Data Entry with Process Messages

Process order

Inventory mgmt

QM

Batch management Handling unit management

Process data evaluation

Plant maintenance

Process management

EBR

Process data documentation

PI-PCS

Mail

PI-PCS Process messages

Process messages

PI sheet

Process control

Process control system

 SAP AG 2002

Process messages are data structures with which actual data for a process is confirmed from process control to one or more destinations. You can define process messages in Customizing according to your own specific requirements. The SAP standard system contains a number of predefined message categories which enable you to transfer actual data from process control to the R/3 System.

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HTML-Based PI Sheet PI sheet

Header

PI sheet 1000000449 Process order: 1234

Received Comment sheet Material: XYZ test material

Comments

Operating group: W01

Control information Additional information

Due to an error... Temp: ______ °C Freq.: ______ Quantity: ____ kg Signature: ____

Phase 10 / Instr. 10 Heat solvent Start agitator. Add material ABC. Note:

Note:

Phase 20 / Instr. 10 Check material quality. Record material quantity. Stop heating and slow down agitator.

Record insp. results Call mat. qty calculation Quantity:____ kg Freq.: ______ Signature: ____

Phase 10 / Instr. 30 Start cooling. Record time and temperature every hour.

Input values

Time 10:00 11:01

Total quantity:?___

Input values Insp. results recording Function call Signature for proc. step Formula result

Temperature 175.0 168.3

 SAP AG 2002

The SAP PI sheet favors processing on the screen, which means the process operator is to enter, confirm, or complete data interactively. In connection with the process instructions contained in a control recipe, the PI sheet has the following elements and functions: Display of information on process (control instruction, notes, and so on) Input fields and tables for entering process data, input validation, signatures Batch determination and batch check Process data calculation Function call for calling data from internal or external applications Link to QM inspection results recording Sequence definition for determining the processing sequence of phases Comments on documentation and messages from process events As of Release 4.6C, you can generate PI sheets in HTML. The browser-based PI sheet is an enhancement of the ABAP list-based PI sheet. It gives you the advantage of a flexible, user-specific layout definition and allows you to define frames, for example, for linking to documents, graphics, the internet and intranet.

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Production in compliance with GMP

Material reconciliation Digital Signature

? ?

Approved recipe

?

Material identification

Quality process management Approved order

Batch record Approved inspection plan

Quality management Batch management

 SAP AG 2003

The guidelines on Good Manufacturing Practices (GMP) laid down by the U.S. Food and Drug Administration (FDA) and other international institutions have become an international standard in many areas of process industries. In particular, they must be taken into account in processes of the pharmaceutical industry. You can specify that a process order can only be created if an approved recipe exists. The order data is therefore locked and cannot be changed. The approval procedure is performed in R/3 engineering change management. You use the material identification function to check whether the material that was picked for the process order is completely available at the production line and will be used in the correct sequence. You can exchange information about the product quality and analysis values between the production plant and the laboratory or the quality assurance system. You use the R/3 Quality Management System to do this. For batch specification, the inspection results can be automatically transferred to the class characteristics of the batch produced. You use the material reconciliation function to analyze and verify the ingredients and yield at the end of the production process. With regard to product liability, the batch record contains all planned and actual data for the production process of a batch. You can activate the digital signature function to execute certain business operations in the R/3 System.

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PI-PCS

Material Identification PI sheet for picking

or

Weighing system

Process order

Note:

Picking complete?

PI sheet for production

? Note:

Material identification

Materials complete?

Completeness check

Materials in correct sequence?

Sequence check

Process messages XXXXXXXXXXX

 SAP AG 2002

Goods issue

Batch record

Material identification is performed in the PI sheet using dynamic function calls and includes the following: Completeness check Sequence check Automatic goods issue posting (GI-posting) after successful completeness or sequence check Automatic transfer of data from material identification to the batch record Check that picking is complete You use the completeness check to ensure that the materials that were picked for the process order are staged at the production line. You use the sequence check to ensure that the sequence of the components to be used is correct. You can perform a completeness check or sequence check at the start of: Production for the whole process order An operation or a phase

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In-Process Checks: Scenarios

PI

Insp. Results recording

QM

4 Insp. lot

Process planning/ process order

Process management 1 Process control system

1

Insp. charact./ results recording

2

1

3

PI sheet

Lab. Information system (LIMS)

 SAP AG 2003

In an in-process quality inspection, the inspection results for the inspection characteristics of the inspection lot are recorded when a process order is carried out. There are several ways to record inspection results: 1. You can use process messages to record inspection results. In this case, results recording can either be carried out automatically by a process control system or manually by the process operator who enters the corresponding values in the PI sheet. 2. You can jump directly to QM Inspection Results Recording from within the R/3 PI sheet 3. You can use an interface to link external laboratory information systems (LIMS) to R/3 Quality Management. R/3 QM uses this interface to transfer process instructions to the LIMS, which, in return, sends inspection results back to R/3 QM. 4. You can also use the corresponding transactions of R/3 QM to record inspection results manually during the production process.

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Specification of Batches Produced

Process order Mixing

Granulating

Tablet pressing

Cetepharm-N Batch 347819

Sieve size 0.15 mm Water content 1.50 % Potency of active ingredient 98.5 %

Autom. value transfer

Potency of active ingredient 98.5%

Inspection lot

 SAP AG 2002

If the product is to be handled in batches, inspection results for batch specification can be automatically copied to the class characteristics of the batch produced.

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Batch record Batch 347819 Approved Process Order

Batch record

R/3

Archive

Batch record Header record batch 347819 Version data Status

Course Content

File

Version data Archive Link

Deviations Documents from R/3 data

File File File

Attachment: data from ext. systems

File

Comments

File

Digital signature for approval  SAP AG 2003

The guidelines on Good Manufacturing Practices (GMP) specify that a batch record must be created for every batch. With regard to product liability, the batch record contains all planned and actual data for the production process of a batch. A batch record consists of a current, valid version as well as a history of any older, now invalid versions. All versions are managed with their status in the header record of the batch record. A version of a batch record contains at most the following parts: A document for the table of contents and version data from the batch record A document containing any deviations that may have occurred while processing the batch Documents for the following R/3 objects: all process orders to which the batch was assigned, the material lists of these process orders, the PI sheets of the process orders, the process messages for the process orders, all inspection lots for the batch A document for entering more company-specific R/3 data An attachment with archive data from external systems (process control systems, labels, and so on) Comments entered for the version Digital signatures entered for approval You can use the SAP ArchiveLink interface to store documents in an archive system for long-term archiving where they cannot be forged. © SAP AG

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Process Orders: Information Systems Basis Order information system

Process orders

Process message evaluation

Process messages

Missing parts information system

Missing parts

Business Information Warehouse

BW InfoCubes

Logistic Information System LIS

R/3 LIS Library

Batch where-used list

Material documents

Controlling reports

CO object of order

 SAP AG 2002

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Process Orders: Summary

The use of process orders is an order-oriented production control option. Process orders have specific characteristics, which determine how they are used in the different areas of process manufacturing industries. An important characteristic is the option to process orders using process management, which is realized with the use of PI sheets and links to process control systems (PI-PCS interface). An additional essential characteristic is the use of functions for GMP-compliant production.

 SAP AG 2002

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Exercises Unit: Order-Controlled Production with Process Orders Topic: Master Data At the conclusion of these exercises, you will be able to: • Name the master data that is important for process order-controlled production • Select production versions in mass maintenance • Navigate from mass maintenance for production versions to master recipes • Navigate from a master recipe to the BOM (integrated BOM maintenance) You are an employee in a company that produces food products and alcoholic beverages. You are a member of the SAP project team and responsible for implementing the functions of order-controlled production with process orders. You will first get a general overview of the basic master data. Next you will display the master data production version, master recipe, and BOM for the product T-FI1## Vanilla ice cream - packaged and become familiar with the structure, basic data and navigation in these master records. 1-1

First get an overview of the menu structure for the functions of Production Planning and Control for Process Industries. Which menu path takes you to these transactions? ____________________________________________________________

1-2

Name the basic master data for process order-controlled production. ____________________________________________________________ ____________________________________________________________ ____________________________________________________________ ____________________________________________________________ ____________________________________________________________

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1-3

Which menu paths take you to the maintenance transactions for material master records, batches, production versions, resources, and master recipes? ____________________________________________________________ ____________________________________________________________ ____________________________________________________________ ____________________________________________________________ ____________________________________________________________

1-4

Go to mass maintenance for production versions and select the production version(s) for the material T-FI1## Vanilla ice cream - packaged in plant1100. 1-4-1 Display the details for production version 0001. Which task list and which BOM are assigned to each other via the production version? ______________________________________________________ ______________________________________________________ For which lot size range and which time period is the production version valid? ______________________________________________________ ______________________________________________________ 1-4-2 Navigate from mass maintenance in the master recipe to production version 0001. 1-4-3 Get an overview of the master recipe structure and the data in the Recipe Header, Operations, and Materials views. 1-4-4 From the master recipe view Materials, navigate to the BOM for material TFI1##. 1-4-5 Get an overview of the data in the BOM and then go back to the master recipe. 1-4-6 Exit the master recipe and mass maintenance for production versions.

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Exercises Unit: Order-Controlled Production with Process Orders Topic: Integration with Planning Process Order Creation with Planned Order At the conclusion of these exercises, you will be able to: • Execute an MRP planning run for your product • Interpret the result of the planning run in the stock/requirements list • Convert a planned order to a process order • Interpret the result of the planned order conversion in the stock/requirements list • Display a process order, navigate in an order, and name the structure and basic data To become familiar with the principle of the integration of ordercontrolled production with process orders in Supply Chain Planning, you will execute an MRP run, starting with the existing planned independent requirements, in the R/3 System for your product T-FI1## Vanilla ice cream –packaged. You will interpret the planning results in the stock/requirements list: The planning run creates planned orders with regard to the planned independent requirements. You will then convert a planned order to a process order and interpret the results in the stock/requirements list. Finally you will display the newly created process order and become familiar with the structure, navigation, and basic data in the order. 2-1

© SAP AG

Display the current stock/requirements list for your material T-FI1## in plant 1100.

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Describe the current situation: Date

MRP element

MRP element data

Rec. / reqd. qty

Available qty

____________________________________________________________ ____________________________________________________________ ____________________________________________________________ 2-2

Perform multi-level single-item planning for your material T-FI1## in plant 1100.

2-3

After the planning run, display the current stock/requirements list. Describe the new situation after the planning run: Date

MRP element

MRP element data

Rec. / reqd. qty

Available qty

Production version

____________________________________________________________ ____________________________________________________________ ____________________________________________________________

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2-4

Display the planned order from the stock/requirements list. 2-4-1 Make a not of the planned creation dates in the Header view. Creation of first planned order:

___________________________

Creation of second planned order: ___________________________ Creation of third planned order:

___________________________

Write down the production version selected: _______________ 2-4-2 In the Assignment view, write down the responsible MRP controller. MRP controller:

________________

2-4-3 Display the material components from the BOM explosion for the planned order. 2-5

In collective conversion, convert those planned orders within the area of responsibility of your MRP controller ## that have a planned creation date in the current week. Enter the following conditions for planned order selection: Planning plant: MRP controller:

1100 I##

Creation:

Time period of current week

Choose process order type PI01 for conversion.

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2-6

After planned order conversion, display the current stock/requirements list for material T-FI1##. Describe the new situation after the planned order conversion: Date

MRP element

MRP element data

Rec. / reqd. qty

Available qty

Production version

____________________________________________________________ ____________________________________________________________ ____________________________________________________________ 2-7

In the change mode, call the new process order from the stock/requirements list. 2-7-1 Familiarize yourself with the process order structure and the data in the views Header, Operations (Operation Overview) and Materials (Material List). 2-7-2 Get an overview of the views in the order header. Write down the order number: __________________________ Pay attention to status management. 2-7-3 In particular, familiarize yourself with the data in the following views: Header General Data Notice the quantity and date fields Header Assignment Write down the production scheduler: ________________________ Header – Goods Receipt Notice that you can define a batch number for the product T-FI1##. Header Master Data Write down the production version: ________________________ In this view you can navigate to the master recipe and the BOM.

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2-7-4 Display the operation overview of the order. Compare the entries with the corresponding data in the master recipe. Get an overview of the detail views of a phase. 2-7-5 Display the material list for your order. Compare the entries with the corresponding data in the master recipe. Notice that the Batch field is ready for input for components that are subject to batch management requirement. Get an overview of the detail data of a material component.

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Exercises Unit: Order-Controlled Production with Process Orders Topic: Process Order Release; Processing an Order with a PI sheet At the conclusion of these exercises, you will be able to: • Release a process order • Generate a control recipe for a process order • Edit a PI sheet • Send process messages • Check the results of order processing You will release your order for material T-FI1## and generate the control recipe for the order at the same time. You will select your control recipe in the control recipe monitor. You will maintain the PI sheet. You will select and send the process messages created while you were processing the PI sheet in the message monitor. After sending the messages, you will check the current data in the process order, the stock/requirements list, and in inventory management. 3-1

Release your process order for the production of the material T-FI1## in collective processing. At the same time generate the control recipe for the order. Enter the following criteria for order selection: Order type: Plant: Production sched.:

PI01 1100 I##

Do not enter any selection criteria for the release date (or set the selection period so that your order’s scheduled release date corresponds to the selection criteria). 3-2

Display your process order now that it has been released and the control recipe has been generated. Find out which activities were performed when the order was released.

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3-2-1 Look at the order status. Especially pay attention to REL, CRCR, BCRQ, BASC, MACM. 3-2-2 Header- Goods Receipt Notice that a batch number is created automatically for the product T-FI1##. 3-2-3 Material list Notice that batch determination was automatically executed for material components managed in batches. 3-3

Select your control recipe in the control recipe monitor. Send the control recipe and update the list display. Note: In the production plant, control recipes are sent automatically in a job.

3-4

Your control recipe destination is of the type PI sheet. Select and edit the PI sheet created when the control recipe was sent. Maintain the PI sheet as specified in the solutions for this exercise.

3-5

Select the process messages created by maintaining the PI sheet in the message monitor. Send the process messages. Note: In the production plant, process messages are sent automatically in a job.

3-6

Display the process order for material T-FI1##. 3-6-1 On the header data screen, check the data on the quantity produced and on the confirmed dates. Notice the order status DLV and CONF. 3-6-2 Go to the operation overview and display the confirmed dates and calculated activities for some of the phases. 3-6-3 Go to the material list and display the quantities that have been issued for some of the materials.

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3-7

Display the current stock/requirements list for material T-FI1##. Describe the new situation: Date

MRP element

MRP element data

Rec. / reqd. qty

Available qty

Production version

____________________________________________________________ ____________________________________________________________ ____________________________________________________________ 3-8

© SAP AG

Display the stock overview for material T-FI1##.

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Solutions Unit: Order-Controlled Production with Process Orders Topic: Master Data 1-1

On the SAP Easy Access screen, choose Logistics → Production - Process → (…) The menus appear for - Master data maintenance - Production planning – Shop floor control

(demand planning/SOP, production planning, MRP) (process order; production campaign; process planning; process management)

- Product cost planning 1-2

For more information, refer to the page Master Data for the Process Order in your training material. The basic master data is: - Material and batch - Resources – Production version – Master recipe -BOM

1-3

SAP menu → Logistics → Production - Process → Master Data

→ Material Master → (…) → Material Master → Batch → (…) → Production Versions → Resources → (…) → Master Recipes → (…)

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1-4

SAP menu → Logistics → Production - Process → Master Data → Production Versions Plant: 1100 Choose Enter.

Material:

T-FI1##

1-4-1 Double-click the line for production version 0001 Lot size from 2000 to 10000 kg Task list Task list type: Group: Group counter:

Planning recipe T-ICE## 1

BOM Alternative BOM: 1 1-4-2 Choose Recipe. 1-4-3 Choose the appropriate tabs to navigate. 1-4-4 In the Materials view Choose BOM. 1-4-5 To exit the BOM, choose Back (F3) 1-4-6 To exit the recipe, choose End (Ctrl+F3) To exit mass maintenance for production versions, choose End (Ctrl+F3)

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Solutions

2-1

Unit:

Order-Controlled Production with Process Orders

Topic:

Integration with Planning Process Order Creation with Planned Order

Logistics → Production - Process → MRP → Evaluations → Stock/Requirements List Material: Plant:

T-FI1## 1100

Choose Enter.

Date

MRP element

MRP element data

Rec. / reqd. qty

Available qty

Today

STOCK

Req. date

IndReq

LSF

5000 -

5000 -

Req. date

IndReq

LSF

5000 -

10000 -

Req. date

IndReq

LSF

5000 -

15000 -

0

The available quantity today in the plant stock is 0 kg. There are 3 future planned independent requirements which are not yet covered by material requirements planning. 2-2

Logistics → Production - Process → MRP → Planning → Single-Item, Multi-Level Material: Plant:

T-FI1## 1100

Choose Enter. The system displays a warning and prompts you to check the input parameters. To start the MRP run, choose Enter again. 2-3

Logistics → Production - Process → MRP → Evaluations → Stock/Requirements List Material: Plant:

T-FI1## 1100

Choose Enter.

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Date

MRP element

MRP element data

Rec. / reqd. Available qty Production qty version

Today

STOCK

Plnd Receipt

PlOrd.

Number/Stck

5000

5000

Req. date

IndReq

LSF

5000 -

0

Plnd Receipt

PlOrd.

Number/Stck

5000

5000

Req. date

IndReq

LSF

5000 -

0

Plnd Receipt

PlOrd.

Number/Stck

5000

5000

Req. date

IndReq

LSF

5000 -

0

5000 0001

0001

0001

As a result of the MRP run, the system created planned orders to cover the planned independent requirements. 2-4

To display a planned order: Double-click MRP element PL-AUF Choose Display element (F7) 2-4-1 Header tab: Creation:

Planned creation date

The creation date is used as selection criteria for the collective conversion of planned orders into process orders. Production version:

0001

2-4-2 Assignment tab page: MRP controller: I## 2-4-3 To display the components: Choose Components (F5)

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2-5

Logistics → Production - Process → Process Order → Process order → Create → With material Material number: MRP controller:

1100 I##

Creation:

Time period of current week

Process order type:

PI01

Choose the Execute selections (F8) icon. The Collective Conversion of Planned Orders: List screen appears. According to the selection criteria, the system only displays the planned order for material T-FI1## that is chronologically first. Select the corresponding line in the list and choose Convert. After the conversion, the system displays the number of the process order in the lower message bar. Choose Back (F3) to exit collective conversion. 2-6

Logistics → Production - Process → Process Order → Environment → Process Management→ Stock/requirements list Material: Plant:

T-FI1## 1100

Choose Enter.

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Date

MRP element

MRP element data

Rec. / reqd. qty

Available Production qty version

Today

STOCK

Plnd Receipt

PR-ORD

Number/PI01

5000

5000

Req. date

IndReq

LSF

5000 -

0

Plnd Receipt

PlOrd.

Number/Stck

5000

5000

Req. date

IndReq

LSF

5000 -

0

Plnd Receipt

PlOrd.

Number/Stck

5000

5000

Req. date

IndReq

LSF

5000 -

0

0 0001

0001

0001

The planned order was converted to a process order. 2-7

To call the process order in the change mode: Double-click MRP element PR-AUF Choose the Change element (F8) icon 2-7-1 Choose the appropriate buttons to navigate. 2-7-2 2-7-3 Header – Assignment Production scheduler:

I##

Header - Goods Receipt The Batch field is ready for input. Header - Master Data Production Version:

0001

2-7-4 Choose Operations. Double-click the phase number to display the detail view of a phase. 2-7-5 Choose Materials. The Batch field is ready for input for components subject to batch management requirement. Double-click the item number to display the detail data of a material component. © SAP AG

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Solutions Unit: Order-Controlled Production with Process Orders Topic: Process Order Release; Processing an Order with a PI Sheet

3-1

Logistics → Production - Process → Process Order → Process Order → Release Order type: Plant: Production sched.:

PI01 1100 T##

Delete the entries in the fields for date selection. Choose the Execute selections (F8) icon. The Release Process Order: List screen appears. According to the selection criteria, the system only displays the process order created above for material T-FI1##. Choose Control recipe (release with control recipe generation). After you have released the order and created the control recipe, choose Back (F3) to exit the list. 3-2

Logistics → Production - Process → Process Order → Process Order → Display Order type:

Order number

Choose Enter.

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3-2-1 to 3-2-3 The following activities were performed: Order release:

See status REL "Released"

Control recipe generation:

See status CRCR “Control Recipe” Generated’ Creation of batch master record for product T-FI1##: See status BASC "Batch assignment complete" See the automatically created batch number in the header data screen Goods receipt Material availability check:

See status MACM "Material confirmed” Batch determination for material components subject to a batch management requirement: See automatically assigned batch in the material list 3-3

Logistics → Production - Process → Process Management → Control Recipe → Control Recipe Monitor Plant: Process order:

1100 Order number

or Plant: Destination address:

1100 GRP. ## ICE

Choose Enter. The Control Recipe Monitor: Overview screen appears. The control recipe has status Created. Select your control recipe and choose Send. After sending, choose the Refresh icon to update the list. The control recipe must now have status Sent.

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3-4

(…) → Process Management → PI Sheet → Find or (…) → Process Management → PI Sheet → Worklist - Maintain Choose appropriate selection criteria, such as: Plant: Operating group:

1100 GRP. ## ICE

Execute (F8) Maintain PI Sheet (F5) Enter your signature to report the start of PI sheet maintenance. Sign with your R/3 user name and confirm the signature with your R/3 password. The material component to be entered for the first phase 1010 can be found in the list of ingredients. The quantities and batch numbers from the process order are set as the default values. The line operator can change these values. Enter your signature to report the end of phase 1010. Process the other phases of the PI sheet in the same manner. In the last phase at the end of the PI sheet, report the number of ice cream packages produced. Enter your signature to report the end of PI sheet. 3-5

(…) → Process Management → Message → Message Monitor Plant: Process order:

1100 Order number

Choose Enter. The Process Message Monitor: Messages screen appears. Select all process messages and choose Send to send them. After sending, choose Refresh to update the list. The messages must now all have status Sent.

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3-6

(…) → Process order → Display Process order:

Order number

3-6-1 Choose Enter. The order header appears. The produced quantity and confirmed order dates are displayed here in the General data. After the PI sheet has been completely processed, the statuses DLV (“delivered”) and CNF (“confirmed) are set. 3-6-2 Choose Operations. Select one or more phases and double-click a phase number. To display the confirmed dates, choose the Dates tab page. To display the activities calculated from the dates, choose the Qty/activities tab page. You can use the Previous operation and Next operation buttons to go to the dates of the individual phases. 3-6-3 Choose Materials. Select one or more material components (and the individual batch records for the materials to be handled in batches) and double-click an item number. The General Data screen contains the component quantities withdrawn.

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3-7

Logistics → Production - Process → Process Order → Environment → Process Management→ Stock/requirements list Material: Plant:

T-FI1## 1100

Choose Enter. Date

MRP element

MRP element data

Rec. / reqd. qty

Available qty

Today

STOCK

Req. date

IndReq

LSF

5000 -

0

Plnd Receipt

PlOrd.

Number/Stck

5000

5000

Req. date

IndReq

LSF

5000 -

0

Plnd Receipt

PlOrd.

Number/Stck

5000

5000

Req. date

IndReq

LSF

5000 -

0

Production version

5000 0001

0001

After the goods receipt, the process order no longer appears in the list. The plant stock was raised by the delivered quantity. 3-8

Logistics → Materials Management → Inventory Management → Evironment → Stock → Stock Overview Material: Plant:

T-FI1## 1100

Program → Execute The batch that you produced was delivered to storage location 0001 "Delivery warehouse" in plant 1100. Since a corresponding setting has been made, you first get to the stock in quality inspection in the material master.

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Order-Controlled Production with Production Orders Contents: Application Areas for Production Orders Order-Controlled Production: Characteristics Application-Wide Processes Master Data for Production Orders Structure and Elements of a Production Order Processing a Production Order Order creation Integration with planning Order processing Order settlement

Automation Information Systems  SAP AG 2002

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Production Orders: Unit Objectives

At the conclusion of this unit, you will be able to: Explain the characteristics of order-controlled production with production orders Describe the main steps for managing production orders Describe the main functions for managing production orders

 SAP AG 2002

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Course Overview Diagram

1

Course Overview

2

Introduction Order-Controlled Production with Production Orders

33

4

Order-Controlled Production with Process Orders

5

Project-Oriented Production

6 7 8

3

Repetitive Manufacturing Kanban

Summary

 SAP AG 2002

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Main Business Scenario

Your company produces order-related products of some kind. You belong to the team that is implementing production orders in Production Planning and Scheduling. To implement production orders, you must create the whole process chain for in-house production to allow your company to organize, control, and execute production for a plant based on the mySAP SCM Production solution. You want to include functions for these important steps in order-related production: order creation, scheduling, release, execution, confirmation, and settlement; printing shop-floor papers; material withdrawal; and goods receipt. These functions are integrated with other areas in your company, such as controlling and warehouse management. Therefore, you must consider the many integration relationships when implementing production orders.

 SAP AG 2002

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Order-Controlled Production: Characteristics (1) Order-Related Production Order type: Production order (order type "10") Production in order lot sizes (see lot-sizing procedure)

Integration of Production Orders Master Data Management (mySAP PLM) Sales (mySAP CRM, SAP R/3-SD) Production or Material Requirements Planning (SAP R/3, SAP APO) Capacity Requirements Planning (SAP R/3, SAP APO) Materials Management (SAP R/3 IM) Logistics Execution (SAP R/3 WM) Quality Management (SAP R/3 QM) Controlling (order or product-oriented) (SAP R/3 CO) Business Intelligence (mySAP BI) or Logistics Information System  SAP AG 2002

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Document Type

Orders Material documents Accounting documents

Order Category

PP production order PP process order PP network CO internal order CO production order CO model order PM maintenance order

Order Type

Production order (internal number assignment) Production order (external number assignment) Production order (special processing)

 SAP AG 2003

R/3 R/3 R/3 R/3 R/3 R/3 R/3 R/3 R/3 R/3 R/3 R/3 R/3 R/3 R/3 R/3 R/3 R/3 R/3 R/3

Document Type, Order Category, Order Type

In the SAP system, you use the document type to distinguish between business transactions. Orders are one type of business transactions. The order category is used to distinguish between the various orders that are used in the different applications. The client-specific order category definitions for each application cannot be changed. Within an application, users can define order types for an order category. The order type controls various processes and functions: Number assignment Setting default values User-defined status management User-defined field control (not for production orders in ERP Release ) You make all necessary settings in Customizing.

© SAP AG

SCM300

3-6

Order-Controlled Production: Characteristics (2) Basic Functions of the Production Order Status management Scheduling Calculating capacity requirements Costing Availability checks (material, PRT, capacity) Printing shop floor papers Material staging via reservations Confirmation of quantities, activities, and time events (variable confirmation procedure) Goods receipt (to stock) Period-end closing (activity-based costing, overhead cost rates, WIP determination, variance calculation, order settlement)

Archiving and retrieval Mass processing

 SAP AG 2002

A number of functions are available for production orders, which allow for complex support of production (see following slides). The course SCM310 covers a selection of the most important functions in detail.

© SAP AG

SCM300

3-7

Order-Controlled Production: Characteristics (3) Extended Functions of the Production Order Production based on production version (for example, production lines) Production of configurable materials Engineering change management (ECM) and order change management (OCM) Multi-level order network Assembly orders Serial numbers and as-built configuration Order splitting External processing operations and external procurement components Plant-wide production (planning and production plant)

 SAP AG 2002

© SAP AG

SCM300

3-8

Order-Controlled Production: Characteristics (4) Extended Functions of the Production Order Trigger points (start workflow, ...) Scrap planning, management and rework Phase-out control, material components Quality inspection during production Batch number assignment (product) Batch determination (components) Batch where-used list Manufacture of co-products Transport and packaging units (HU)

 SAP AG 2003

© SAP AG

SCM300

3-9

Order-Controlled Production: Characteristics (5) Link to Process Control Level Order processing via PP-PDC - Interface: Downloading of orders Uploading of confirmations

Information Systems and Reports Alert Monitor (SAP APO) Order information system Production information (SAP_BW or R/3_LIS) Missing parts - information system Order progress report (multi-level for sales orders) Controlling report Batch where-used list and batch records  SAP AG 2002

© SAP AG

SCM300

3-10

Application-Wide Processes

Plnd ind. reqmts

Demand program

Costing

Sales

Sales orders Stock

Planned orders

MRP Make-to-order prod.

B A C D E

Production orders Order execution Delivery to stock

Order settlement

Capacity Requirements Planning

Material forecast

Archiving Integration with QM

Inventory mgmt

Integration with PDC

 SAP AG 2002

Production order management is a central part of a complex process chain starting with an independent requirement (planned or customer requirement) and ending with the goods issue of a finished product. Production order management controls the whole process of in-house production of products and is integrated in the functions of capacity requirements planning, costing and inventory management. Furthermore there are links or interfaces to quality management as well as external systems. Production order management uses the following system elements: ALE, workflow, Customizing, text processing, factory calendar, classification, communication, and graphics.

© SAP AG

SCM300

3-11

Master Data for Production Orders Master data for material

Material

(product and components)

BOM

BOM

Material or order BOM

Master data for work center (standard value key, available capacity, formulas, activity types)

Work center

Routing

PRTs

Routing

Operations, standard values, control key, trigger points

Master data for PRT (material, equipment, document, misc.)

 SAP AG 2002

The material to be produced must have the procurement type in-house production (X,E). The BOMs are single-level BOMs. A special selection procedure chooses the valid BOM. The routings are normal routings. A special selection procedure chooses the valid routing. Work centers are assigned in the routing of the operations. Production resources/tools are assigned in the routing of the operations.

© SAP AG

SCM300

3-12

Demo Scenario: Pump Production in Plant 1000 Outbound delivery 0002 Finished goods warehouse

Sold-to party Goods receipt

SD

Final assembly II

Final assembly I Confirmation

Work center R-F##

Work center R-E## Confirmations

Pre-assembly II

Work center R-M##

Inbound delivery

Pre-assembly I

Work center R-V## Stor. location PROD-1300 Material staging by stock transfer

0001 Material warehouse

Plant 1000 (Hamburg)

 SAP AG 2003

Demonstration example for production with production orders: In plant 1000 pumps and their assemblies (casing, shafts, ...) are produced. The final and pre-assembly as well as assembly production take place in the warehouse and partially as make-to-order production. The production is organized based on the workshop principle. The individual parts for assembly production are transferred via picking or the pull list from material stock to production. During confirmation of the assembly, the stock receipt of the assembly is posted directly to the storage location, which is assigned to the final assembly production line. Components for final assembly that are not produced at the assembly production lines are transferred via the pull list from material stock. The most important data in the training system are: Material numbers R-F1## Pump (make-to-order and make-to-stock prod.) R-B1## Casing (make-to-stock prod.) R-B2## Stock (make-to-stock prod.) R-B3## Shaft (make-to-order and make-to-stock prod.) R-B4## electronics (make-to-stock production with production version) Work centers R-V## Pre-assembly 1 R-M## Pre-assembly 2 R-E## Final assembly 1 R-L## Paint shop © SAP AG

SCM300

3-13

R-F## R-P##

© SAP AG

Final assembly 2 Check

SCM300

3-14

Production Order Processing Order request

Archiving / deleting Order settlement

1

Order creation

2

15 Order header

4

Operations

(1) Goods receipt WIP determination

Material components

5

Production Tools

12

Upload from PCD system

(1)

Machine reservation (1)

13

Confirmation

Availability checks

3

14

Variance calculation

(1)

16

Planning Target Actual

Costs

100

6

20 50

11

7

Download to PDC system Order print

(1)

8

10

 SAP AG 2003

Order release

Material staging

9 Material withdrawal posting

(1)

The production order goes through a number of individual activities. Many of these activities can run automatically or in the background so that manual processing of orders is minimized. WIP determination, variance calculation, and settlement are generally periodic work for Cost Object Controlling, which are usually processed in the background. A number of settings available in Customizing allow you to successfully perform each step in order processing. (1) These functions can be automated.

© SAP AG

SCM300

3-15

Elements of a Production Order Order header Order number Plant Production scheduler Operation sequences Standard sequence Other sequences Operations Work center Control key Standard values

Settlement rule

Document link

Costs

Settlement profile Settlement receiver

Planned Actual

Doc. number Doc. type

Material components Material number Quantity Requirements date PRTs PRT number PRT category Number of PRTs Trigger points

Capacity splits

Functions

Individual machine Individual person

Confirmations Quantities Times

Order-related COC

 SAP AG 2002

The order structure represented can be enhanced by certain elements. At least one operation is required. If necessary, the system creates one automatically. You have the choice of whether to assign material components, production resources/tools and trigger points to the operation. You can create several (parallel) operation sequences. You can make a selection from several alternative sequences. Suboperations are permitted within an operation. Costs are determined at operation level, submitted at order header level and a settlement rule is created for the orders only for order-related COC. You can link production orders to documents in the Document Management System (DMS)

© SAP AG

SCM300

3-16

Order Creation Options Create without routing and BOM Create with routing and BOM Order Plan

Create with routing Plan

Order

Material BOM

Order Create with planned order Planned order

Order

Plan

 SAP AG 2002

Operations, material components and PRTs are usually taken from the routing and the BOM. You can enter data manually. When a planned order is converted, the BOM is not reread. If not otherwise specified in the routing, the components of the BOM are assigned to the first operation.

© SAP AG

SCM300

3-17

Integration with Planning (R/3 or APO)

CIF

R/3

APO Demand Planning (DP)

Flexible Planning Demand Management

Sales (SD)

Plnd indep.reqmt

Plnd indep.reqmt Consumption

Sales order

Production Planning (PP) MRP

Sales order

Supply Network Planning (SNP) Production Planning (PP/DS)

Planned order Production

Planned or production order

Production order

Purchasing Purchase requisition Purchase order (MM)

Purchase requisition Purchase order

Stock transp. requisition Stock transport order

Conversion

Conversion

Stock transp. requisition Stock transport order

Deployment

 SAP AG 2003

The mySAP SCM solution offers two general solution methods for integrating planning and production: planning with the functions of the APO component and planning with the functions of the R/3 component. Production preparation, execution and control are always performed with the functions of the R/3 component, but also depending on the production type. Such functions include costing, release, material staging, confirmation, goods movements, and settlement. Other functions (scheduling, availability check, machine commitment, for example) can be performed using either of the SAP components. Between the two SAP components, the master data and transaction data (planned orders, production orders, purchase requisitions, purchase orders, stocks, and so on) are usually exchanged via the Core Interface (CIF). Specific events lead to the transfer of data from R/3 to APO (release, confirmation, goods receipt) and vice versa. Sales orders are usually entered in R/3 and transferred from there to APO. Planned orders can be generated in material requirements planning in R/3 (MRP) or in APO with the following: a) Supply Network Planning in APO (SNP) This component achieves cross-plant planning in a long-term planning horizon across the whole supply and procurement chain. Stock transport requisitions (distribution), planned orders (in-house production), and purchase requisitions (external procurement) are generated for each production plant. b) Production Planning and Detailed Scheduling APO (PP/DS) This component generates planned orders and purchase requisitions in a defined, short-term time period (production horizon) in the production plant. © SAP AG

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The course SCM210 covers the Core Interface (CIF) in detail. The courses SCM220 to SCM260 cover the planning tools in detail.

© SAP AG

SCM300

3-19

Order Creation with Planned Orders Planned order Material Material no. no. (product) (product) Requirement Requirement quantity quantity Requirements Requirements date date

Material Material no. no. (component) (component) Requirement Requirement quantity quantity

Order item

Inspection lot

Material components

Production order

Inspection data

Inspection Inspection characteristics characteristics Inspection Inspection values/ values/ characteristics characteristics

Operations

Task Task list list no. no. Work Work center center Control Control key key Standard Standard values values

PRTs

PRT PRT no. no. Requirement Requirement qty qty Control Control key key

Routing  SAP AG 2002

Planned orders are created in material requirements planning (R/3 - MRP) or in planning in APO (APO - PP/DS or SNP) The creation of production orders via planned orders is the most important application form in the whole PP application. The production order data is created automatically this way. Inspection data is copied from the routing when an inspection lot is generated, but not written in the production order. Planned orders generated in planning can be converted to production orders (and purchase requisitions to purchase orders) by the MRP controllers (buyers) both in APO and in R/3.

© SAP AG

SCM300

3-20

Order Release Functions Order header Operations

Order creation

Material components Production Tools Costs

Plan Target Actual

100

Scheduling

20 50

Availability check

Order release

Print document

Material withdrawals

Processing

Confirmation

Goods receipts

Settlement

 SAP AG 2002

The order release is the basis for the processes that follow the production order (printing order documents, material withdrawal, and so on). Production orders are managed via status. When an order is released, a status is set accordingly. An availability check can be executed automatically. You can release an individual operation, a whole order or several orders together. A function is also available for the mass release of operations or orders (see the section "Mass Processing").

© SAP AG

SCM300

3-21

Detailed Scheduling (Work Center Scheduling)

Goals

Creation of a feasible work center schedule for executing operations of production orders Ensuring the time-based availability of capacities Optimum work center scheduling High capacity load utilization with shortest possible op. lead times Optimum processing sequence and dates Material availability, low stock levels Minimum setup/clean-out costs

Methods

R/3

Capacity Requirements Planning (CRP) Planning board (continuous with regard to time) Tabular capacity planning table (period-oriented) Use of the order information system Mass planning in the background

APO Production Planning/Detailed Scheduling (PP/DS) Simultaneous material req. and capacity req. planning Product planning table (period-oriented) DS planning board (continuous with regard to time) Optimization procedure  SAP AG 2003

Detailed scheduling (work center scheduling) can be done both in R/3 (capacity requirements planning) and in APO (PP/DS). A prerequisite for all methods of detailed scheduling is long-term or medium-term capacity requirements planning. You can use the order information system to create a list of the operations for each work center. You can only do so if you create a special profile in Customizing beforehand. The course SCM360 deals with capacity requirements planning in detail.

© SAP AG

SCM300

3-22

Planning board Edit

Goto

Functions

Extras

Settings

System

Help

APO DS Planning Board, Planning Version 000 Optimize ...

New schedule

Deallocate

Strategy

Scheduling log

Resource chart Resource

Short description Check production II Check production II (machine) Final assembly II (labor cap.) Final assembly I (labor cap.) Final assembly I (machine cap.) Paint shop (labor cap.) Paint shop (machine cap.)

Product chart Product

Prod. Description

Scheduling or rescheduling of operations: Confirmation of requiredcapacities

Metal (APO) Pillar (APO) Lagerträger (APO) Antriebselektronik (APO) Shaft (APO) Shaft (APO) Laufrad (APO) Casing (APO) Pump (APO)

Operation chart Order no.

Op.

Oper. description Staging by picking Einpressen Laufrad in G Paint casing Shaft built in casing Final assembly of pump Delivery to stock Staging by picking Einpressen Laufrad in G Paint casing

Start

Inbox-Microsoft Outlook

SAP Logon 610

APO DS-Planning board

Change planned indep. reqmts

Exploring – E:\Developm...

 SAP AG 2003

© SAP AG

SCM300

Microsoft PowerPoint – (...

Hardcopy - Hrdcpy

APO APO APO APO A APO APO APO APO APO APO APO APO APO APO APO APO APO

Example: The Detailed Scheduling Planning Board (APO)

3-23

Availability Checks (Material, Capacity, PRT) Warehouse 3

Order header A

Material

Operations

Material components

Warehouse 2

Production Tools Costs

Req. quantity/date

A

Planning 20 100 Target 50 Actual

Material

Checking control for production orders Inspection results Time 1

12 11 1 10 2 9 3 8 4 765

12 11 1 10 2 9 3 8 4 765

Order creation

Confirmed quantity or capacity Missing part record (index) Status FMAT, FKAP, FFHM (missing part, capacity, ...)

Time 2

Change

Release

Processing

Confirmation

Goods receipt

 SAP AG 2003

Production orders can be checked individually or with mass processing at different times, manually or automatically. Check instructions control the availability check. Inspection results

Assignment of confirmed quantity (Partial quantities can be confirmed) Material shortage status Missing part record

Depending on the control, the check is done either in R/3 or in APO.

© SAP AG

SCM300

3-24

Shop Floor Papers (Standard - List Types)

Reports

Forms

PSFC_OBJ_LIST

PSFC_PRINT_LAY

Operation control ticket

PSFCOPCT

PSFC_STD_LAYOUT

Job ticket

PSFCJOBT

PSFC_STD_LAYOUT

Time ticket

PSFCTIME

Confirmation slip

PSFCCONF

PSFC_STD_LAYOUT

Pull list

PSFCPICK

PSFC_STD_LAYOUT

Goods withdrawal slip

PSFCGISS

PSFC_STD_LAYOUT

PRT overview

PSFCPRTL

PSFC_STD_LAYOUT

KANBAN card

PSFCKANB

PSFC_KANBAN

Object list

Document distribution

PSFC_STD_LAYOUT

PSFC_DOCLINK_DIST

DDS_COVER_PLO

 SAP AG 2003

The standard system provides various lists. For each order, a maximum of 20 lists may be called up. It is possible to plot originals of documents using document distribution.

© SAP AG

SCM300

3-25

The Material Staging Process Material withdrawal slip Pull list Pick list Backflushing

MM-IM Warehouse Management Inventory management

List of kanbans to be moved

Kanban control

List of transfer requirements Transport request

LE-WM Warehouse Management

Pick part

Prod. ord.

Production order generates transfer requirement Container is called

Crate part

Material is called

Release order part  SAP AG 2002

The basis for material withdrawal for production orders are material withdrawal slips, pull lists, pick lists and simular documents. The R/3 System has various procedures for controlling material staging. a) Warehouse management with the component MM-IM (Inventory Management) b) Replenishment control with the component KANBAN c) Warehouse management and replenishment control with the component LE-WM (Warehouse Management) The warehouse management system offers the three following options: Pick parts are staged for the production order directly in the amount of the requirements quantity. The staging of these parts for the production order can be done at a physical storage location or a dynamic one (production order). This is typical for high value parts, such as shafts, casings, and so on. Crate parts are manually ordered when a crate is almost empty. This is typical for small parts in containers, such as screws and nails. Release order parts are manually ordered. Here the required quantity is calculated from the target quantity of the components of the selected order that has been released. This is typical for paint, for example. © SAP AG

SCM300

3-26

Production Order: Goods Issue Posting Reservation

Material Stock quantity Consumption stat. ...

Point of consumption: Order Cost center

G/L accounts

Goods issue Goods issue slip G/L accounts: Stock account Consumption acc. ...

Material document

Acctg document

Cost acctg document

 SAP AG 2002

The goods issue posting (GI) is executed for a consumption of a material component for a production order. The following functions are executed when a goods issue is posted. - Storage location-related update of stock and consumption fields - Reduction of reservations (for planned withdrawal) - Determination of actual costs (evaluation) and update of order - Generation of material documents, accounting documents and cost accounting documents - The material document describes the goods movement from the materials management (stock) point of view. - The accounting document describes the goods movement from the financial accounting point of view. - The cost accounting documents serve various cost analysis purposes. - When you display the material document, you can branch to the other documents. - A goods issue document can be printed. The GI posting is controlled via a movement type (261), to which each posting refers. This can take place manually or automatically. © SAP AG

SCM300

3-27

Order Confirmation: Process Chain Production order Operation 0010 Operation 0020 Upload PDC interface

. . .

Manual entry

Operation 9999

Saving confirmations

Confirmations

Orders

Different functions are executed using the confirmation data Actual costs

Capacity requirements

Material documents

HR data

 SAP AG 2002

Confirmations are an important basis for update control and a resulting capacity requirements planning. Therefore, exact, real-time confirmations are especially important. Order confirmation is used for entering activities carried out within your company for an order. Confirmations from PDC systems are possible via a PP-PDC interface.

© SAP AG

SCM300

3-28

Confirmation Procedures Order-related confirmations

Operation-related confirmations

Confirmations for production order

Time ticket /confirmation slip confirmation

Time event confirmation

Collective / quick entry

Start setup

Milestone confirmation

Finish setup Start processing Finish processing

Progress confirmation

 SAP AG 2002

There are different confirmation procedures. Each procedure realizes different requirements that a company may have. Depending on the application, one or more procedure may be used. For the most part, the two main types are operation-related and order-related confirmations.

© SAP AG

SCM300

3-29

Interfaces: Overview MM PP

PPPDC HR

PM

PS

PPKAN

Plant data recording

PP

PP

PI

WM

MM

QM-IDI PP-REM PP-CAD PI-PCS WM-LSR MM-MOB interinterinterinterinterinterface face face face face face

PDC interfaces

Time recording

QM

R/3

PM PS Kanban data data rerecording cording

Inspect. processing (LIMS)

Material data recording

CADintegration

Process control

Warehouse control

Mobile data entry

Subsystem

 SAP AG 2003

PDC interfaces (plant data collection) serve to exchange data between R/3 and subsystems (usually plant data collection systems). The PP-PDC interface has been specifically developed for production control. For further information on this interface, see: http://www.sap.com -> Partners -> Software -> interface certification -> integration scenarios -> interface reference Call up PP-PCD Plant Data Collection - R/3 Shop Floor Control.

© SAP AG

SCM300

3-30

Production Order: Goods Receipt Posting

Order

Material Stock quantity

Trans. requirement

G/L accounts Goods receipt slip

Goods receipt G/L accounts: Stock account Plant activity

Messages Material document

Acctg document

Cost acctg document

 SAP AG 2002

The goods receipt posting (GR) realizes the stock receipt of a product produced using a production order. The following functions are executed when a goods receipt is posted. - Generation of material documents, accounting documents and cost accounting documents - The material document describes the goods movement from the materials management (stock) point of view. - The accounting document describes the goods movement from the financial accounting point of view. - The cost accounting documents serve various cost analysis purposes. - When you display the material document, you can branch to the other documents. - A goods receipt document can be printed. - Update of the delivered quantity in an order - Evaluation of the receipt - Credit to order - Update of plant activity The GR posting is controlled via a movement type (101), to which each posting refers. © SAP AG

SCM300

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This can take place manually or automatically.

© SAP AG

SCM300

3-32

Cost Debit/Credit (Order-Related COC) Order debit Material costs Production costs External activity Process costs Overhead costs (material)

Material withdrawal

Production order M E V X G

Processing Processing

1000 100-100 1421 4230 1310 External processing 300900 Surcharge, raw material

12,000 25,000 8,000 12,000 8,500

Goods receipt

Confirmation

12 11 1 10 2 9 3 8 4 7 6 5

Order Order settlement settlement

Archiving/ deleting

Credit production order WE valuation control

Settlement profile Settlement receiver

Material stock account (quantity * standard/price it. valuation variant) Plant activity account (quantity * price it. valuation variant)

Actual costs at time of settlement  SAP AG 2002

Distribution rule Settlement parameter Settlement account (according to allocation structure) Plant activity account Difference account

The manner in which a production order is credited and debited depends on the variant of cost object controlling (COC) selected in Controlling. Both order-related and product-related execution is possible. Order settlement credits the order. Settlement is usually periodic. It is controlled via a settlement profile. It makes sense to use order-related COC for the following: Flexible production environment Flexible product range Cost management of individual production lots If cost controlling is required for each order High setup costs Manufacture of co-products For in-house production of materials, it is generally best to use standard price control. For more information about cost object controlling, see the courses AC510 or AC515.

© SAP AG

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Cost Debit/Credit (Product-Related COC) Order debit Material costs Production costs External activity Process costs Overhead costs (material)

Material withdrawal

Product cost collector M E V X G

Processing

1000 100-100 1421 4230 1310 External processing 300900 Surcharge, raw material

12,000 25,000 8,000 12,000 8,500

Goods receipt

Confirmation

12 11 1 10 2 9 3 8 4 7 6 5

Order settlement

Archiving/ deleting

Credit product cost collector WE valuation control

Settlement profile Settlement receiver Distribution rule

Material stock account (quantity * standard/price it. valuation variant) Plant activity account (quantity * price it. valuation variant)

Actual costs at time of settlement  SAP AG 2002

Settlement parameter Settlement account (according to allocation structure) Plant activity account Difference account

Settlement is period-oriented based on the costs of the product cost collector. In this case, there is no order settlement for the individual production order. The production order also does not have any costs or any settlement rule. It makes sense to use product-related COC for the following: Make-to-stock production Repetitive production, mass production Sales order controlling only in profitability analysis

© SAP AG

SCM300

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Mass Processing (HVOM) Knowledge Work Bench – Citrix ICA Client Program

Edit

Goto

System

Help

Mass Processing: Production Orders List Profile

Standard profile

Selection

Mass processing

Function

Selection at header level Production order

to

Material

to

Production plant

to

Planning plant:

to

Order Type

to

MRP controller

to

Production scheduler

to

Sold-to party

to

Sales order

to

Sales order item

to

WBS element

to

Sequence number

to to

Priority Status selection profile System status

excl.

and

excl.

Selection at operation level to

Work center

to

Plant Selection profile System status

excl.

and

excl.

Selection at component level Component Plant Storage location Selection profile System status

excl.

and

No function Complete Set user status / Delete Print Release Calculation Picking Material availability Log display Confirmation Complete technically Scheduling Generate capacity requirements WM material staging

excl.

Execute immediately background processing Generate function indicator

+

Function-specific parameters

Options

Start

SAP Logon 46A

Order information system: Detail ...

Mass processing f....

 SAP AG 2003

Mass processing is available for production orders. It is integrated in the order information system (COOIS) and works quickly and without dialog. You can start mass processing with the options execute immediately, generate function indicator, or background processing. If orders are only marked, these indicators must be processed later with the program COWORKDISPATCH. A log book is kept for background processing (application log).

© SAP AG

SCM300

3-35

Order Network

BOM structure

Order Structure

Finished Finished product product

Order Order 11

52

Component 1 52

Assembly 1

Component 2

Assembly 3

Component 3

Assembly 4

Component 5

Order 2

52

Assembly 2

Order 3

Order 4

52

Component 4

Order 5

Component 6

 SAP AG 2003

Order networks have the following advantages: reduction of planning, administration and maintenance tasks high transparency of complex order structures clear overview of the relationships between orders direct access to individual orders by double-clicking cross-order execution of functions for the entire order network (date and quantity changes, availability checks, releasing orders, confirmations) Each component with the special procurement key "52" leads to an order in the order network. All orders have the same order type. The leading order can be created with an internal or external number. Individual orders can be added or deleted. You can choose to have automatic stock postings in the intermediate steps.

© SAP AG

SCM300

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Information Systems for Order Management Info. systems

Basis (1)

Order information system

Multi-level order overview for sales orders

Orders

(1)

(1)

Order structure and operations

Missing parts - information system

Missing part record (index record)

Controlling reports

CO object of order

Business Information Warehouse mySAP BI (BW)

BW InfoCubes

Production information system PPIS as part of R/3 LIS (logistics controlling system)

R/3 LIS Library

 SAP AG 2002

There are several information systems for production orders. They differ in the way they use the order database (directly or indirectly) as well as in their results. Systems marked with (1) are profile-controlled. You set up the profiles in Customizing under Production Control -> Information Systems. If the systems are used for list creation in individual production orders, you can control the profile for each order type in the order type-dependent parameters (T399X). From the systems mentioned above, you can display capacity evaluations, batch where-used lists, and other lists.

© SAP AG

SCM300

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Production Orders: Summary

The use of production orders is an order-oriented production control option. Production orders have specific characteristics based on how they are used in different industries and branches. An important characteristic of production orders is that they are used in discrete industries. The numerous special functions allow for a wide range of applications.

 SAP AG 2002

© SAP AG

SCM300

3-38

Exercises Unit:

Order-Controlled Production with Production Orders

Topic: Integration with Planning Order Creation with Planned Orders Order Structure (SCM300 Exercise 1)

• Material Requirements Planning (SAP R/3 MRP or SAP APO PP/DS) • Conversion of Planned Orders to Production Orders • Order Structure Your company consistently uses automatic material requirements planning based on SAP R/3 or SAP APO. As the production manager, MRP controller or production scheduler, you therefore create a large number of production orders based on planned orders generated by the automatic material requirements planning run. In this exercise, you will generate planned orders based on planned independent requirements, convert them to production orders (individual and collective conversion) and familiarize yourself with the order structure. 1-1

In this first step, adjust the interface and functionality of the stock/requirements list for your requirements. The stock/requirements list (SAP R/3) or the product view (SAP APO) are important tools for the daily work of the MRP controller and the production scheduler.

Choose: SAP menu → Logistics → Production → Production Control → Control → Stock/Requirements List 1-1-1 Choose the Individual access tab and select with the following: Material Plant

© SAP AG

R-F1## 1000

SCM300

3-39

1-1-2 Assign the navigation profile for a production scheduler.

Environment → Navigation profile → Assign

Choose:

A Settings for User dialog box appears with several tabs. You are already on the General settings tab. Enter the following values: Checking rule for ATP display:

PP

Navigation profile:

SCM310_01

Save the settings. 1-2 Check the stock/requirements situation for the materials. R-F1##

Finished product

R-B3##

Assembly

and

Write down the current, non-restricted plant stock: R-F1##

_______________________

R-B3##

_______________________

and

1-3 Use the following menu path in Sales to enter a sales order for the product R-F1## with the order quantity 1 piece. Choose: SAP menu → Logistics → Sales and Distribution → Sale s→ Order → Create Use the following requirements parameter: Order Type Sales organization Distribution channel Division Sales office Sold-to party Ship-to party PO number Req. delivery date © SAP AG

OR (standard order) 1000 10 (final customer sales) 00 (cross-division) 1000 (Frankfurt) 1000 (Becker Company, Berlin) 1000 (Becker Company, Berlin) GR##_001 Current date + 1 month SCM300

3-40

If the system suggests a different delivery date, confirm this by choosing the symbol.

Save the order and write down the order number and item. Order number: _______________________

________

1-4 Perform multi-level material requirements planning (single-item) for the product RF1xx. Use the following data: Processing key

NETCH

Create purchase requisition 3

(only planned orders)

Delivery schedules

1

(none)

Create MRP list

1

(always)

Planning mode

1

(normal mode)

Scheduling

2

(lead time scheduling)

Do not select anything else. Choose: SAP menu → Logistics → Production → MRP → Planning → Single-Item, Multi-Level 1-5

Check the stock/requirements situation again for the materials R-F1## and R-B3##

Planned orders must have been generated!

© SAP AG

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1-6 Choose a planned order for the material R-F1##.. Number of the planned order: ___________________________ 1-6-1 Display the details for the planned order from the stock/requirements list.

Choose: Double-click the order number. 1-6-2 Choose the Header tab, and make a note of the planned dates. Order start date:

___________________________

Order finish date :

___________________________

Opening date:

___________________________

Availability date:

___________________________

Does the planned order have a production version? Answer:

_____

1-6-3 Choose the Assignment tab to find the responsible production scheduler. Production scheduler: _____ 1-6-4 Display the material components (dependent requirements) of the planned order. Choose:

Components.

1-6-5 Convert the planned order with the total quantity to a production order of the order type PP01. To do this, follow the menu path in production control. Choose: SAP menu → Logistics → Production→ Production control → Order → Create → From Planned Order Save the production order! Write down the number of the production order created. Number of the production order:

© SAP AG

________________

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3-42

1-6-6 Is the converted planned order still in the stock/requirements list? Answer: _____ Planned orders can also be converted to production orders from the stock/requirements list.

To do this, choose the planned order by double-clicking it. Choose Production Order. 1-6-7 Check the header in the production order (on the Assignment tab). Here the planned order number is still visible.

1-7 Convert several planned orders to production orders at the same time. Use collective conversion to do this. Choose: SAP menu → Logistics → Production→ Production control → Order → Create → Collective Conversion of Planned Orders Select the planned orders to be converted with the following parameters: Planning plant:

1000

MRP controller

0##

Material

R-F1##

Order Type

Order type

Limit the selection date (to one month before or one month after the current date) Select the planned orders to be converted and choose

Convert.

Write down the numbers of the planned orders you converted: Planned order no. ___________

Production order no. ________________

Planned order no. ___________

Production order no. ________________

Planned order no. ___________ Production order no. ________________ © SAP AG

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2 In one of the production orders you generated, look at the individual data segments, screens, and data fields. Write down any questions you may have about the meaning of the data fields and ask the trainer.

Choose: SAP menu→ Logistics → Production→ Production control → Order → Change 2-1 Order header screens

Choose:

Goto → Header

Choose the appropriate tab for the screen. General Assignment Goods receipt Control Dates/quantities Master data Long text Also notice the settlement rule of the order. Choose: Header → Settlement Rule 2-2 Overview of operation sequences

Choose:

Goto → Overviews → Sequence overview

2-3 Operation sequence details Choose:

© SAP AG

Sequence → Details

SCM300

3-44

2-4 Operation overview

Choose:

Goto → Overviews → Operations

2-5 Operation screens (choose operation 0010)

Choose:

Operation → Operation details

Choose the appropriate tab for the screen. 2-6 Material components - Overview

Choose:

Goto → Overviews → Components

2-7 Material component screens (choose component 0010)

Choose:

Component → Component details

Choose the appropriate tab for the screen. Item 0010 General data, description 2-8 Production resource/tool overview for operation 0010 Choose:

Go to the operation overview and choose operation 0010. Choose the pushbutton PRT (production resources and tools) in the lower toolbar.

© SAP AG

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2-9 PRT screens (choose PRT 0010)

Choose:

Production Resource/Tool → Details → Production Resource/Tool

Choose the appropriate tab for the screen. Item 0010

General data, quantities, dates

2-10 Document overview

Choose:

Goto → Overviews → Documents

2-11 Display the document info record (choose the first document).

Choose:

Document → Display document info record

Choose the appropriate tab for the screen 2-12 Display the original document (look at both originals in the document overview of the order)

Choose: 2-13 Costs

Choose:

© SAP AG

Document → Display original document Itemization Analysis

(cost elements)

Cost component split

(cost components)

Goto → Costs → Itemization → Analyze → Cost Component Split

SCM300

3-46

Exercises Unit: Order-Controlled Production with Production Orders Topic: Order Release and Order Processing (SCM300 Exercise 2)

• Order release • Printing Shop Floor Papers • Material staging • Material withdrawal • Backflushing • Goods receipt (to stock) • Order information system Your company uses production orders to control production. As the production manager or production scheduler, you are responsible for shop floor control, and as an employee in production, you work based on production orders. In this exercise you will perform the whole management process for a production order. It starts with the release of production orders and ends with the goods receipt of the material produced. You will use the order information system to control this whole process. 1

Perform collective production order release for all orders with your production scheduler number.

Notice the default release period.

Choose: SAP menu → Logistics → Production→ Production control → Control → Collective Release

© SAP AG

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1-1

1-2

On the Selection tab, use the following parameters to select: List

Order Headers

Profile

Collective Release

Production plant

1000

Order Type

Order type

Production scheduler

0##

System status

REL

(exclusive)

On the Mass processing – Release tab, make the following settings: Function Release Execute function immediately Function parameters:

1-3

1-4

Order release

Select all production orders and start the release (mass processing).

Choose:

Start the selection.

Choose:

Mass Processing → Execute

Check the release log for any errors. Choose: Mass Processing → Log of last MP or Order.

1-5

Check the status changes in one of the production orders. What is the new status? Answer: ______

© SAP AG

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2

Print all the shop floor papers for all the released orders of your production scheduler number. 2-1

Use mass processing to print the production orders. Choose: SAP menu→ Logistics → Production → Production Control → Control → Print 2-1-1

On the Selection tab, use the following parameters to select:

2-1-2

List

Order Headers

Profile

Order print

Production plant

1000

Order Type

Order type

Production scheduler

0##

Status selection profile

PP00008

On the Mass processing – Printing of shop floor papers tab, make the following settings: Function Printing of shop floor papers Execute function immediately Function parameters: Original print The print mode original print prints all of the operations of the order that are not printed and are released.

2-3

© SAP AG

Select all production orders and start printing (mass processing).

Choose:

Start the selection.

Choose:

Mass Processing → Execute

SCM300

3-49

2-4

Check the print log for any errors. Choose: Mass Processing -> Log of last MP or Order.

2-5

Use transaction SP01 to display and check the printing results. Choose: System→ Services → Output controller Use your user name and the current date to select.

2-6

Check the status changes in one of the production orders. What is the new status? Answer: _____

3

Perform material staging and the goods issue posting for all the released orders of your production scheduler number. 3-1

Create a pick list for staging the material components of the order in stock. Choose: Sap menu → Logistics → Production→ Production control → Goods Movements → Material Staging → Pick 3-1-1 First select the orders with the following parameters: Profile

000002 (standard pick profile)

Plant

1000

Order Type

Order type

Production scheduler

0##

3-1-2 Use the Pick function to post the goods issues and save the results. Select all of the components in the list and choose Pick.

Note: If there is not enough stock to perform a material withdrawal, use transaction MB1C, movement type 561, to perform an other goods receipt for the material. Post a sufficient quantity.

© SAP AG

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3-50

To display errors, choose Environment ->Errors in picking.

3-2

Look at the update in an order (documented goods movements, withdrawal quantities, actual costs)

3-3

Check the status change in the production order. What is the new status?

4

Answer:

_____

Choose one of the orders processed so far for material R-F1## to perform confirmations. Order number: _____________________ 4-1

Perform a final confirmation (quantity and time) for operation 0070. Use the operation-related confirmation for the progress confirmation. Choose: SAP menu→ Logistics → Production → Production Control → Confirmation → Enter → For Operation → Progress Confirmation

This type of operation-related confirmation confirms all operations automatically and by quantity.

4-2

Display the confirmations performed for the order. Choose: SAP menu → Logistics → Production→ Production control → Confirmation → Display

Choose Enter. 4-3

© SAP AG

Look at the update (actual quantities, status, costs) in the order (order header, operations).

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4-4

Check the material stock for material R-F1##. Material stock: ______________ Choose: SAP menu→ Logistics → Production → Production Control → Information System → Stock Overview

4-5

Was the stock receipt posted automatically? Answer: _____

4-6

Is the order still in the stock/requirements list? Answer:

4-7

_____

Check the status change in the production order. What is the new status? Answer:

_____ _____

5

Post a goods receipt for the whole order quantity of a different production order for material R-F1##. Choose: SAP menu → Logistics → Production→ Production control → Goods Movements → Goods Receipt

The movement type for the goods receipt from production can be found in the menu.

5-1-1 Go to the detail screen for the posting and check the data. Choose: Copy and Detail. 5-1-2 Generate the overview for the goods receipt posting. Choose:

Copy.

5-1-3 Save the goods receipt posting. Material document no. ___________

© SAP AG

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5-2

Check the update of the delivered quantity in the order. What is the new status?

6

Answer: _____

Use the order information system to check the order progress for all production orders of your production scheduler number. Choose: SAP menu→ Logistics → Production → Production Control→ Information System → Order Information System 6-1

6-2

Select the orders with the following parameters: List

Order Headers

Profile

(no profile)

Layout

/SCM310_001

Production plant

1000

Order Type

Order type

Production scheduler

0##

Are the orders that have already been delivered displayed? Answer:

6-3

_____

Call up the order information system again with the following lists in the selection screen (all other data remains the same) 6-3-1 List Documented Goods Movements 6-3-2 List Operations 6-3-3 List Object Overview

For technical reasons, the system hides the layout and displays profile 000000000001. In the list generated, you can expand individual objects (operations, components) of an order.

© SAP AG

SCM300

3-53

© SAP AG

SCM300

3-54

Solutions Unit: Order-Controlled Production with Production Orders Topic: Integration with Planning Order Creation with Planned Orders Order Structure (SCM300 Exercise 1)

1-6-2 Answer:

no

1-6-6 Answer:

no

© SAP AG

SCM300

3-55

© SAP AG

SCM300

3-56

Solutions Unit: Order-Controlled Production with Production Orders Topic: Order Release and Order Processing (SCM300 Exercise 2)

1-5

Answer:

REL

2-6

Answer:

PRIN

3-3

Answer:

GMPS

4-5

Answer:

Yes

4-6

Answer:

no

4-7

Answer:

CNF DLV

5-2

Answer:

DLV

6-2

Answer:

Yes

© SAP AG

SCM300

3-57

© SAP AG

SCM300

3-58

Course Overview Diagram

1

Course Overview

22

Introduction Order-Controlled Production with Production Orders

3

4

Order-Controlled Production with Process Orders

5

Project-Oriented Production

6 7 8

2

Repetitive Manufacturing Kanban

Summary

 SAP AG 2002

© SAP AG

SCM300

2-1

Introduction

Contents: mySAP SCM - Production Types

 SAP AG 2003

© SAP AG

SCM300

2-2

Introduction: Unit Objectives

At the conclusion of this unit, you will be able to: Name the production types supported within mySAP SCM

 SAP AG 2003

© SAP AG

SCM300

2-3

The mySAP SCM (Supply Chain Management) Solution

Partner

Supply Chain Collaboration

Vendor

Planning

Strategy Supply Chain Design

Supply Source External Procurement

Sales and Delivery Planning

Production Manufacturing

Delivery Order Fulfillment

Supply Chain Collaboration

Supply Chain Performance Management

Customer

Partner

Supply Chain Event Management  SAP AG 2003

mySAP Supply Chain Management (SCM) is a complete solution that allows a company to efficiently plan, create and control products or services within complex logistics networks. This solution supports a synchronized and close interaction between all departments involved (and all people involved) within a logistics chain. Customers, sales, production planning, manufacturing, warehouse management, purchasing, and vendors are all included in this complete solution. Especially the processing of cross-company processes or collaborative planning and procurement processes, which also allow for a connection to an open market place, is a main feature of this solution.

© SAP AG

SCM300

2-4

mySAP SCM - Production Types (1) Make-to-order prod.

Order-controlled production with production order

Lot Lot Lot Lot

Lot Lot

Unit 3 Work center

Process manufacturing

Resource

Project-oriented production Production lot

07/15

Sales order

Order-controlled production with process order

Unit 4

Project-oriented production with production lots

Unit 5

08/20

 SAP AG 2003

Depending on the manufacturing process, product complexity, stability of production and further criteria, a manufacturing company has various requirements with regard to shop floor control. For this reason, mySAP SCM supports a variety of production types.

© SAP AG

SCM300

2-5

mySAP SCM - Production Types (2) Repetitive manufacturing

Production line

Kanban

f

l ful

u ll

full

Period and quantity-oriented production Not order-related

Unit 6

Replenishment-controlled using stock transfer, external procurement, in-house production via self-controlled control cycle

Unit 7

empty Kanban

 SAP AG 2003

© SAP AG

SCM300

2-6

Introduction: Summary

Various production types are available within mySAP SCM.

 SAP AG 2003

© SAP AG

SCM300

2-7

© SAP AG

SCM300

2-8

Course Overview

Contents: z Course Goals z Course Objectives z Course Content z Course Overview Diagram z Main Business Scenario

 SAP AG 2002

© SAP AG

SCM300

1-1

Course Goals

This course will provide you with: z A basic understanding of the positioning, integration and functions in the Production area within mySAP SCM z An overview of the production types supported within mySAP SCM

 SAP AG 2003

© SAP AG

SCM300

1-2

Course Objectives

At the conclusion of this course, you will be able to: z Describe basic shop floor control procedures and functions in mySAP SCM z Understand basic scenarios in the SAP System

 SAP AG 2002

© SAP AG

SCM300

1-3

Course Content Preface Unit 1

Course Overview

Unit 2

Introduction

Unit 3

Order-Controlled Production with Production Orders

Unit 4

Order-Controlled Production with Process Orders

Unit 5

Project-Oriented Production

Unit 6

Repetitive Manufacturing

Unit 7

KANBAN

Unit 8

Summary Appendix: mySAP Business Suite and Production

 SAP AG 2003

© SAP AG

SCM300

1-4

Course Overview Diagram

1 11

Course Overview

2

Introduction Order-Controlled Production with Production Orders

3

4

Order-Controlled Production with Process Orders

5

Project-Oriented Production

6 7 8

Repetitive Manufacturing Kanban

Summary

 SAP AG 2002

© SAP AG

SCM300

1-5

Main Business Scenario

z Your company implements the mySAP Business Suite. z You are either a member of the project team responsible for implementing the shop floor control functions or you are in the production department. z You will use various scenarios to get an overview of the possibilities and functions of the production types supported in mySAP Supply Chain Management.

 SAP AG 2003

© SAP AG

SCM300

1-6

Copyright

Copyright 2003 SAP AG. All rights reserved. No part of this publication may be reproduced or transmitted in any form or for any purpose without the express permission of SAP AG. The information contained herein may be changed without prior notice. All rights reserved.

 SAP AG 2003

Trademarks: Some software products marketed by SAP AG and its distributors contain proprietary software components of other software vendors. Microsoft®, WINDOWS®, NT®, EXCEL®, Word®, PowerPoint® and SQL Server® are registered trademarks of Microsoft Corporation. IBM®, DB2®, DB2 Universal Database, OS/2®, Parallel Sysplex®, MVS/ESA, AIX®, S/390®, AS/400®, OS/390®, OS/400®, iSeries, pSeries, xSeries, zSeries, z/OS, AFP, Intelligent Miner, WebSphere®, Netfinity®, Tivoli®, Informix and Informix® Dynamic ServerTM are trademarks of IBM Corporation in USA and/or other countries. ORACLE® is a registered trademark of ORACLE Corporation. UNIX®, X/Open®, OSF/1®, and Motif® are registered trademarks of the Open Group. Citrix®, the Citrix logo, ICA®, Program Neighborhood®, MetaFrame®, WinFrame®, VideoFrame®, MultiWin® and other Citrix product names referenced herein are trademarks of Citrix Systems, Inc. HTML, DHTML, XML, XHTML are trademarks or registered trademarks of W3C®, World Wide Web Consortium, Massachusetts Institute of Technology. JAVA® is a registered trademark of Sun Microsystems, Inc. JAVASCRIPT® is a registered trademark of Sun Microsystems, Inc., used under license for technology invented and implemented by Netscape. MarketSet and Enterprise Buyer are jointly owned trademarks of SAP AG and Commerce One. SAP, SAP Logo, R/2, R/3, mySAP, mySAP.com, and other SAP products and services mentioned herein as well as their respective logos are trademarks or registered trademarks of SAP AG in Germany and in several other countries all over the world. All other product and service names mentioned are the trademarks of their respective companies. © SAP AG

SCM300

-2

Course Prerequisites

Required SAPSCM (mySAP Supply Chain Management Overview) Recommended: SCM200 (Supply Chain Planning Overview) PLM100 (Lifecycle Data Management)

 SAP AG 2003

© SAP AG

SCM300

-3

Target Group

Participants: This course is intended for project team members and key users (people from the specific departments) who are responsible for introducing shop floor control with mySAP SCM.

Duration: 3 days

 SAP AG 2003

Notes to the user The training materials are not teach-yourself programs. They complement the course instructor's explanations. Your material includes space for writing down this additional information.

© SAP AG

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