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8/10/2019 SAP Overview & PP-PC Integration
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2014 WIPRO LTD | WWW.WIPRO.COM | CONFIDENTIAL1
SAP
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SAP Overview
SAP Background
SAP Integration & Data Structures
Overview of SAP Production Planning (PP)
Reporting in SAP
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SAP Background
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What Does SAP Stand For?
Systems
Applications and
Products in Data Processing
(Or in German
Systemanalyse
Und
Programmentwicklung)
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Flexible:Configuration of the SAP modules to suit business needs
Real-time:
Updates information immediately in the system as the data is saved
Provides improved access to real-time, integrated information
Reduces operational costs
Audit Trail:All transactions can be tracked to the person entering or
changing data by their SAP user ID
Online: Display information and reports as you need themIntegrated:
Provides an enterprise with a common business language and the ability to develop global
processes and data structures
Increases the coordination of departments
Business workflow orientation versus stand-alone applications
Real-time ripple effect of data through all business functions
Seamless integration of data between business functions (e.g., automatic financial postings based
on transactional processing in all modules)
One-time data entry ensuring data consistency and reliability
Audit
Trail Online
Flexible Real-time
Integrated
SAP Integration
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Real-time access
to information
Consistency of
processes acrossproducts and
regions
Reduction in cycle
time
Benefits
Integrated SAP backbone
SAPs strength is built around an integrated data platform
ProductLines
Regions
Latin
America
Asia Mid
East
Europe
Product 1
Product 2
Product 3
Product 4
Spares
Corporate
Mfg.HR
Quality
FinanceNorth
America
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Types of Data in SAP R/3
Organizational Data
- Validation, check tables (e.g., ABAP Tables,
Source Code Tables)
Master Data
- Static data (e.g., material, vendor, Cost Center,
G/L Account, etc.)
Transaction Data(Movement Data)
- Data created by business activities (e.g., requisitions,
Purchase Orders, G/L postings)
- Document Principle: 1 business transaction = 1 SAP
document
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SAP structuresimplified
R/3 INSTANCESHARED PROGRAMS
R/3 Code
Custom ABAPs
Language Files
CustomersSuppliers
Materials
Products
CoA
R/3 CLIENTSHARED DATA
Sales Organization
Purchasing Organization
Plant
Project
Controlling Area
Profit Center HierarchyCost Center Hierarchy
COMPANYLEGAL ENTITY
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The Document Principle
Single version of the truth
Enterprise visibility
Summary to detail views
Complete auditability
Documents
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How SAP Transaction Work
Harman International Industries | Confidential | December 22, 201412
Master Data Records
Accessed
Purchase
Order
SAP Data
TablesAccessed
xxxx
xxxx
xxxx
xxxx
xxxx
xxxx
xxxx
xxxx
xxxx
xxxx
xxxx
xxxx
xxxx
xxxx
xxxx
SAP Transaction
Performed
Data Created for
Reporting and Analyzing
SAP Document Created
whenever stock is moved
or money is received
Examples of
Documents:
Customer orders
Goods issue
Productionorders
Vendor invoices
Data tables
are files that
contain codes
and other
information.
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Integrated SAP concept - Overview
Strategicpurchasing
Invoiceverification
Assetsaccounting
SalesProductionMaterialsManagement
Purchasing
Accounting
MaterialsManagement
Raw materials Finished products
GLaccounting
MRP
Billing
MRP
Overheadcost management Controlling
Operativepurchasing
Accountspayable
Production
Jobpreparation
Work
scheduling Engineering
WarehouseGoods
receiptVendor
Inventoryaccounting
Internalaccounting
Inventoryaccounting
Warehouse Shipping Customer
Strategicsales
Operativesales
Accountsreceivable
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SAP Integrated concept
Strategicpurchasing
Invoiceverification
Assetsaccounting
SalesProductionMaterialsManagement
Purchasing
Accounting
MaterialsManagement
Raw materials Finished products
GLaccounting
MRP
Billing
MRP
Overheadcost management Controlling
Operativepurchasing
Accountspayable
Production
Jobpreparation
Work
scheduling Engineering
WarehouseGoods
receiptVendor
Inventoryaccounting
Internalaccounting
Inventoryaccounting
Warehouse Shipping Customer
Strategicsales
Operativesales
Accountsreceivable
I t ti i K B fit f i t t d
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Integration is Key - ex. Benefits of integrated
order to cash
The SAP Universe
Strategic Benefits Heightened understanding of customer
needs and profitability
Improved brand performance information
and greater clarity of global/regional brand
profitability
Improved management decision-making
across businesses due to greater clarity and
timing of information Improved organizational flexibility (e.g.
shared services, regional/global
management structures)
Tactical Benefits Reduced sales expense through cross-
selling
Improved cash collection enabled by
reduction in cycle time
Reduced working capital due to lower
inventory levels
Improved order fulfillment accuracy
Reduced back office expense due to
streamlined inter-company processing and
standardized reporting
Reduced cost of ownership
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The Document Principle
Single version of the truth
Enterprise visibility
Summary to detail views
Complete auditability
Documents
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Order fulfillmentthe value of integration
1997
Packing
Shipping Point
Deadline monitoring
Availability check
Creating deliveries
Goods issue
Transfer
Picking
Picking confirmation
Transportation
Planning Point
Sales Order
Loading
Shipping papers
The sales order controls the follow up
activities in logistics
Real time information is delivered to
warehouse and transportation
management regarding materials
and quantities that must be picked,
packed and shipped
Allows shipments to be consolidated
for execution for better efficiency
Enables splitting of orders for actual
fulfillment at the site where materials
are stored
Monitoring of the delivery of the sales
order throughout the process is enabled
with out of the box integration with
materials management
Order
Management
Delivery/POD
Transportion
Execution
Inventory
Materials
Mgt
POD
95
PC
Proof Of
Delivery
Order to Cash transformation the value of
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Order to Cash transformationthe value of
integration
Once the delivery activities have takenplace and a goods issue or POD has
been posted, the financial accounts are
immediately (real-time) updated
Integration with the front end
quotation and order management
ensures accuracy and timeliness of
bill presentment
Allows service personnel to quote
and issue bills for service
Links between sales, delivery, and
finance are preserved for future
analysis via drill-down or adjustments
Incentive &
CommisionMgt
Invoicing
Adjustment
Management
Accounts
ReceivableProfitability
Analysis
Balance Sheet
XX XX
Billing
Due List
Delivery
OrderQuotation
Updated
XYZ 60PC
Sales Price 300 USDCost 100 USD
Order #2077Delivery
Requirements
Stock
Balance Sheet
XX XX
Billing
Due List
Billing
Due List
Delivery
OrderQuotation
Updated
Delivery
OrderQuotation
Delivery
OrderOrderQuotationQuotation
Updated
XYZ 60PC
Sales Price 300 USDCost 100 USD
Order #2077Delivery
Requirements
Stock
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SAP R/3 Integration
R/3
FIFinancial
Accounting
COControlling
PSProjectSystemWF
Workflow
ISIndustrySolutions
MMMaterials
Mgmt.
HRHumanResources
SDSales &
Distribution
PPProductionPlanning
QMQuality
Manage-ment PM
Plant Main-tenance
CSCustomerService Integrated Solution
Client / Server
Open Systems
ECEnterpriseControlling
AAAssetAccounting
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PP Business Concepts
Order Settlement
Production
Cycle
Goods Receipt
(inward stock movement)
Order Processing
Production Order
Planned Order
MRP
Material Forecast (SOP)
Production
Order
Demand Management
Completion Confirmation
PurchasingCycle
BOMs
Routings
1
7
6
5
3
2
8
4
BOMs
Routings
9Sales
Cycle
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Organizational Data
Is the foundation which must exist within SAP R/3 before any PP
business processes can be modeled or executed Defines the companys organizational and physical entities
Plant
Storage Location
Company Code
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Organizational Data
What functionality does Organizational Data provide in Production
Planning? Allows materials, equipment, and planning to be the unique responsibility
of an individual or group
Since many individuals or groups may use similar data types, the
Organizational Data allows them to select only that data which is their
responsibility Using the key, these individuals or groups may display, process, or print
information en masse
PP Production Orders and Organisation
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PP Production - Orders and Organisation
Structures
Valuation Area
Company Codes
Controlling Area
Company
Sales Organization Purchasing Organization
Plants Demand Management Production Control MRP Inventory Management Production Order
Storage Locations / Batches / Special Stock
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Production Planning
MRP Controller
Run MRP and Create
Production OrderWarehouse
Produce
Skate
Sharpener
Receive
Goods to
Inventory
Ship Goods
to Customer
Production Order
Skate Sharpener
Production
Production Quantity
1,000
Start Date Jan. 6,
2003
Finish Date Feb. 1,
2003
Components
Forklift
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Factory Calendar
Material Master
Work Centers
Bills of Materials Routings
Production Resources and Tools
CAPP Formulas
PP - Data in Production
Master Data
Production Orders
Completion Confirmations
CO Object (Cost Collector)
Goods Movements (Receipt/Issue)
Transaction Data
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Master Data
Is staticdata which represents things (like account, cost center,
material, vendor and employee numbers) rather than events (whichwould be transaction data)
Is a central repository built in layers with each SAP R/3 module adding
its specific data to information already created by other modules
Is input to SAP R/3 transactions
Production Scheduler
Work CenterMaterial Masters
Bill of Materials
Routing
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PP Bills of Material
ITEM Co-product
Scrap
MRP data
Recursiveness
...
SUB-ITEM
- Quantities
- Installation point
HEADERStatus
Texts
Usage
...
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Product costing
Unit costing
Standard costing
Maintenance plan
Maintenance order
PP Integration of BOMs in the System
Material
Documents
Bill of material
Routings
PR/T
Work centers
Roughcut profile
ECM
Std trigger pts
Cost centers
Purchasing
Warehouse
Material requirements planning
Planned orders
Production orders
Controlling
Master Data
Plant Maintenance
Production
Materials Management
Sales order (for
variant configuration)
Sales and Distribution
BOM
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Material
PP BOM Categories
Equipment
BOM
Material
Master
Record
Material
BOM
Document
BOM
Equipment
Document
Document
Equipment
Master
Record
Document
Information
Record
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Transaction Data
Is dynamicdata, meaning it is typically changed or created many
times in one day Records a business activity or event
Product Costing
Order Type
Sales and Operation Planning (SOP)
Materials Requirements Planning (MRP)
Production Order
PP I i P i
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PP Integration Points
Planned Order
Production Order
Goods Issue
Goods Receipt
Purchase RequisitionMRP
Order Settlement
Completion
Confirmation
Sales Order
Sales Order
Processing
Stock Inventory
Shipping
Purchase Order
Goods Receipt
Actual Cost Update
G/L Account Update
SD FI/COPP
MM
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PP Inv. Management - Overview
Warehouse
Management
Accounting
Requirement
Production
(Internal Procurement)
Material Requirements
Planning
Transfer
Posting
Purchasing
(External Procurement)
Goods Receipt
Sales and Distribution
Invoice
Verification
Invoice
DemandStocks
Forecast
Goods
Issue
PP I M G d M
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PP Inv. Management - Goods Movement
Ad hoc.
Inventory Inventory
Transfer
Posting
Goods
Issue
Goods
Issue
ConsumptionSamples Sales Order
Goods
ReceiptDelivery Production
PP I M t
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PP Inv. Management
Inventory Management
GoodsIssue
From
Warehouse
From
Consignment
MaterialDocument
------ --------- ------ ---------- ------
Reservation
------ --------- ------ ---------- ------
ProductionOrder
------ --------- ------ ---------- ------
BOM
------ --------- ------ ---------- ------
ToConsumption
Cost Centre
AssetProjectSales Order
Scrap
Sampling
PP I M t T f P ti
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PP Inv. Management - Transfer Posting
1000
Company Code
2000
Company Code
Plant
1000
Plant
2000
Stor. Loc.2000Stor. Loc.1000
Stock Transfers
Stor. Loc.1000ConsignmentStore
Transfer Postings
Master
----- ------ ------------ - ----- --
------- ------- ---------
Product
789
Master
----- ------ ------------ - ----- --
------- ------- ----- ----
Product
123
Unrestricted
Use
Quality
Inspection
PP Inv. Management - Stock Fields in the
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PP Inv. Management Stock Fields in theMaterial Master
Plant: CSPLTotal =
Consignment in QIConsignment StockIn TransferReturns StockBlocked StockIn Quality InspectionRestricted Use Stock
Unrestricted Stock
Storage Location: Main
Total =
Consignment in QIConsignment StockIn TransferReturns StockBlocked Stock
In Quality InspectionRestricted Use StockUnrestricted Stock
Consignment in QIConsignment StockIn TransferReturns StockBlocked StockIn Quality InspectionRestricted Use Stock
Unrestricted Stock
Storage Location: FRPR
Total =Consignment in QIConsignment StockIn TransferReturns StockBlocked StockIn Quality InspectionRestricted Use Stock
Unrestricted Stock
Storage Location: WMST
Total =
PP I M t St k O i
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Open POs
Production
Orders
Reservations
WM StockMat. Movements
Display Material
PP Inv. Management - Stock Overview
Material XYZUOM pc
Unrestricted Quality ReservedUse Inspection
Total 10,000 2,400 550
COMP1 10,000 2,400 550
PLANT1 6,600 2,000 0
STOR1 2,000 0 0
STOR2 2,000 1,500 0
STOR3 2,600 500 0
PLANT2 3,400 400 550
STOR1 400 200 0
STOR2 0 200 550
STOR3 3,000 0 0
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Production Planning (PP)
1. Demand Management
2. FG & RM Planning
4. Prod. Order Execution
5. PO Close-out & Reporting
3. Prod. Order Preparation
- Maintain customer forecast
- Evaluate raw material forecast
- Run planning and evaluate results
- Convert planned orders into production orders and
purchase requisitions into purchase orders
-Link production orders and sales orders
-Finish final scheduling of orders
- Print shop floor documents
- Control components supply
- print labels
- post components consumption and finished goods
receipts
- Control and confirm PO bookings (qty and value)
- Close and settle production order
- Reports : usage & production
Costing
Master data
Pl i L l
http://localhost/SAP-Knowledge%20Transfer/SAP%20Knowledge%20Transfer/Mfg/Planning/44%20-%20Demand%20-%20Procedures.dochttp://localhost/SAP-Knowledge%20Transfer/SAP%20Knowledge%20Transfer/Mfg/Planning/44%20-%20Planning%20-%20Procedures.dochttp://localhost/SAP-Knowledge%20Transfer/SAP%20Knowledge%20Transfer/Mfg/Planning/44%20-%20PO%20preparation%20-%20Procedures.dochttp://localhost/SAP-Knowledge%20Transfer/SAP%20Knowledge%20Transfer/Mfg/Planning/44%20-%20PO%20preparation%20-%20Procedures.dochttp://localhost/SAP-Knowledge%20Transfer/SAP%20Knowledge%20Transfer/Mfg/Planning/44%20-%20Planning%20-%20Procedures.dochttp://localhost/SAP-Knowledge%20Transfer/SAP%20Knowledge%20Transfer/Mfg/Planning/44%20-%20Demand%20-%20Procedures.doc8/10/2019 SAP Overview & PP-PC Integration
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Planning Levels
Profitability Analysis Revenue Plans Sales Plans (Quantities)
Sales and Operations Planning Sales Plan
Production Plan
Master Planning Demand Program
Adjusted Master Plan
Material Requirements Planning Dependent Requirements
Master Plan
Procurement Plan
CO/PA
SOP
MPS
MRP
OK?
OK?
OK?
OK?
Product 1
Product Group
Region 1 Region 2
Assembly 2
Part 2Part 1
Assembly 1
Product 2Feedback/Corrections
PP S&OP Planning
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PP S&OP - Planning
May June July
Q
UA
N
T
I
T
Y
T I M E
Sales plan
Production plan
SOP provides a method for:
Sales planning
Production planning
Feasibility estimates
Capacity estimate
PP S&OP Planning Cycle
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PP S&OP - Planning Cycle
SOP
Sales Plan
Production PlanSIS
Forecast
Cons.
History
Forecast
Manual
Manual
COPA
CO
MM
SD
Transfer
Demand Management
Synchronous to Sales
Stock Level = 0
Target Stock Level
Target Days Supply
Manual
DISAGGREGATION
of Product Group
PP Independent Functional Data Flow
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Reservations
Warehouse
Independent
Requirements MRP
Demand
Management
SD
Processing
Production
Order
Order
Processing
Scheduling
Agreement
PurchasingFunction
( PO)
Invoice
Verification
PlannedOrder ConvertPlanned
Order
Dependent
Requirements
Final
Costing
Capacity
Planning
Warehouse
Purchase
Requisition
External Procurement
In-House
Production
PP - Independent - Functional Data Flow
PP Production Procurement Types
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PP Production - Procurement Types
ProductionOrder
------------------------------- --------- --- --
--------- --------------------------
In-House Production
PurchaseRequisition
------------------------------- --------- --- --
--------- --------------------------
External Procurement
PP Production - External Procurement
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Environment
Goods / Service
Receipt
PO
Created
Invoice
VerificationRequirement
Source
Determined
Vendor
Selected
Purchase
History
Invoice
PO
Delivery
MRP
Payment
Source ListQuota Arrangement
Outline Agreement
Info Record
PP ProductionDoc. Category, Order Category,
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g y, g y,Order Type
Document Category Orders Inventory Accounting Documents Financial Accounting Documents
Order Category
PP Production PS Network PM Maintenance Order CO Internal Order CO Production Order CO Model Order CO Results-Analysis Order
Order Type Production Order (Internal Number Assignment) Production Order (External Number Assignment)
Production Order (Specific Procedures)
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PP Production - Definitions in the Production
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Order
What is Produced?
For what Dates?
What Quantities are to
be Produced?
For Whom is Production
Being Carried Out
(Cost Object)?
What Resources and
Methods are Used?
What Costs are Involved
in Production?
- Products
- Activities
- Planned Order Dates
- Basic Order Dates
- Scheduled Dates
- Confirmed Dates
- Release- Start
- Finish
- Planned Order Quantity
- Production Order Quantity
- Material (Stock)
- Cost per Item
- Order- Asset
- Material Usage
- Production Resources/tools
- Inspections
- Planned Costs
- Actual Costs
PP Production - Maintain and Allocate Factory
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yCalendar
Maintain PublicHolidays
1.
Maintain PublicHoliday Calendar
2.
Maintain FactoryCalendar
3.
Allocate FactoryCalendar
4.
Public Hol. 1Definition
Public Hol. 2Definition
Public Hol. nDefinition. . .
Public Holiday CalendarDefinitionID: 08
Public Hol.-1. . .Public Hol.-n
Factory CalendarDefinitionID: P5
Public Hol. Calendar ID 08Plant Public Hol. DefinitionExceptions
Plant PP01
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PP MRP - Materials Planning Procedures
AutomaticReorder Point
Manual
Reorder Point
Forecast-Based Planning
Reorder PointPlanning
Consumption-Based Planning
PlanningProcedures
DeterministicMRP
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PP MRPConsumption Based MRP and
Deterministic MRP Differences
Deterministic MRP
MRP Including BOM Explosion Using the forecast for unplanned
additional requirements
Using the forecast for the
total requirements MPS represents a separate planning run
Consumption-Based MRP Manual reorder point planning
Automatic reorder point planning
Forecast-based planning
Start Delivery
Date Date
No Materials Planning
Reorder Point
Safety Stock
PP Capacity Planning - Environment
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PP Capacity Planning - Environment
Available capacity
10 20 30 40 50
Scheduling
t
Capacity requirementst
Basic data Production planning PM / PS
Capacity evaluation / leveling
Planned orders
Production orders
Process orders
SOP orders
Plant maint.
Projects
Calendar
ArbeitsplanRouting
TskLstGrp C 1
10 Center 1
20
30
Bill of material
MaterialMaterial
A
PP Capacity Planning - Elements of Capacity
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Planning
Available
Capacity
Scheduling
CapacityRequirements
Capacity
Levelling
CapacityEvaluation
PP Repetitive Manufacturing Process
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Setup Master Data
Planning
Backflushing
Capacity Planning
Reporting Tools (Evaluation)
Cost Controlling
Intro to Repetitive Manufacturing
Intro to Repetitive Manufacturing in SAP
Repetitive
Manufacturing
with
Cost Collector
PP Repetitive Manufacturing Process
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PP Industry Examples of Repetitive
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Stencil
&Paste
Process
BareBoards
Pick & PlaceMachine
Oven
Finished
PrintedCircuit
Boards
Chips,
Capacitors,
Resistors
Component
Reels
Manufacturing
Repetitive Manufacturing with Cost Collector
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Repetitive Manufacturing with Cost Collector
Planning Table
(Run Schedule)
Create RS Planned Orders
(Background)
Backflush
(GR, GI, AP)Reduce RS Planned Orders
(Background)
Cost Collector
Planning Table
(Run Schedule)
Backflush
(GR, GI, AP)
Create RS Planned Orders
(Background)
Cost Collector
Reduce RS Planned Orders
(Background)
Repetitive Manufacturing
with Cost Collector
MRP
Normal Planned Orders (Optional)
PP Repetitive Manufacturing
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PP Repetitive Manufacturing
Production line Production line
Make-to-order repetitive manufacturing
S.order
SDSD
Production line Production line
Make-to-stock repetitive manufacturing
Demand
management
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PP Material Staging and Backflushing
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PP Material Staging and Backflushing
Production line
BIOS RAM Processor
Motherboard
Board
Reporting Point Backflushing
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Reporting Point Backflushing
B C D
A
WIPStock
Mat AProduction Line
reportingpoint10
reportingpoint40
20 30
Component A
Component B
Component C
PP Repetitive vs. Discrete
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Workcenters Workcenters
1 2 3 4
Input
Output
1 2 3
5 6
Product
A
Product
B4
PP Repetitive vs. Discrete
PP Repetitive vs. Discrete
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PP Repetitive vs. Discrete
- Products changefrequently
- Production in restricted productionlots
- Varying sequence of work centers(complex routings)
- Semi-finished products often putinto interim storage
- Material staged with reference toproduction lot / order
- Release procedure- Completion confirmation for
individual operations or orders
- Order-based cost controlling
Discrete Manufacturing Repetitive Manufacturing
- Same product produced over a loperiod of time
- Period-based planning
- Steady flow through production
(simplified routings)- Semi-finished products often
directly processed without interistorage
- Components are staged at lines,with no reference to production l
- Reduced administrative effort (noreleaseprocedure)
- Completion confirmation based operiods (backflushing)
- Period-based cost controlling
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0
1
2
3
4
5
6
Category 1 Category 2 Category 3 Category 4
Chart Title
Series 1 Series 2 Series 3
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0 1 2 3 4 5 6
Category 1
Category 2
Category 3
Category 4
Chart Title
Series 3 Series 2 Series 1
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Sales
1st Qtr 2nd Qtr 3rd Qtr 4th Qtr
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1
2
3
4
5
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