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8/11/2019 Pp Pp 02 Mmreview
1/20
Production Planning 2 - 1
Section 2:
Materials Management and
MM Master Data Review
Production Planning
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Production Planning 2 - 2
Production Planning
Sections
1. Production Planning Overview
2. Materials Management & MM Master DataReview
3. Demand Planning & Long-term Planning
4. Master Production Schedule
5. Material Requirements Planning
6. Capacity Requirements Planning
7. Production Reports
8. Whats Next
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Production Planning 2 - 3
Learning Objectives
Upon completion of this section, you will be able to:
Define the key terms related to Materials
Management and MM Master Data
Describe how MM/MM Master Data fits into theSAP system
List the key MM Master Data processes described
in the AeLS courses
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Production Planning 2 - 5
MM Functionality
MM supports all phases of materials management:
Materials planning and control
Purchasing
Goods receiving
Inventory management
Invoice verification (a FICO task)
The system is updated with information from on-line
transactions from purchasing, inventory management, andinvoice verification
Provides real-time reporting capabilities
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Production Planning 2 - 6
MM Key Terms and
Definitions
Term Definition
Material A substance or object dealt with on a
commercial basis or used, consumed, or
generated during production.
Example: P725003 Cover, Fl. Box Lg. Capacity
Purchasing Group A code indicating a buyer or group of buyers
responsible for a material or material group.
Example: 102 Jim Simkins
PurchasingOrganization
An organizational level that negotiatesconditions of purchase with vendors for one
or more plants. It is legally responsible for
completing purchasing contracts.
Example: 3000 Hubbell Wiring Sys.
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MM Key Terms and
Definitions (continued)
Term Definition
MRP Materials requirements planning is
the process of planning materialsfor current and future requirement.
Vendor A business partner from whom
materials or services are procured.
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MM Master Data Review
MM Master Data is a primary component of MM, along with
Inventory Management, Purchasing, and Warehouse Management
MM Master Data
WM
IM
PR
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Production Planning
Master Data
MasterData
Routing
MaterialMaster
Work Center
Capacity /
Resources
Bill
of
Material
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Working with Master Data -
Overview
Master data is used in every transaction in the system
Master data contains information that is frequently needed andin the same format
Information is read from the material master data and
defaulted in transactional data such as: Bills of Material
Purchase orders
Routings
Master data changes do not change previously createdtransactions
Master data generally resides in the system for a long time andsecurity access is restricted
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Production Planning 2 - 11
Benefits of Master Data
All material data are stored in a single database, therebyeliminating redundant data storage
Information is created once, minimizing data input
Real-time data is available for review at any time
Data is integrated with other SAP modules and processes:
Order Management
Inventory Management (IM)
Warehouse Management (WM)
Accounts Receivable (AR)
Accounts Payable (AP)
Goods Receipt and Movement
Production Scheduling
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Production Planning 2 - 12
Material Master Record Views
Basic Data
Classification
QualityManagement
Warehouse
Management
Material
Master
Record
MRP
Accounting
Costing
Forecasting
Sales
Storage
Work
Scheduling
Purchasing
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Production Planning 2 - 13
Material Types Review
Material type (for example, raw material or finishedgood) determines which views are created
Hubbell has identified the following material types:
ZFINFinished Goods
ZSEMSemi-Finished Goods
ZRAWRaw
ZPKGPackaging
ZSERServices
ZMROOperating Supplies
ZCFGConfigurable Materials
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Production Planning 2 - 14
Selecting Material Views
Material type drives thepossible material views
List of possible views forZRAW
Use the vertical
scrollbar to see
additionalavailable views
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Production Planning 2 - 15
Material Master Record Views
Views Fields DescriptionBasic data 1 Basic Unit of
Measure
Material unit of measure, i.e., EA, LB, BT
Purchasing Purchasing
Group
Responsible buyer or department
MRP1 MRP Type Key that determines how a material is planned
MRP2 Procurement
type
Defines how a material is procured, i.e. in-house
GR Processing
time
Number of days required from the receipt of
goods for inspection and placement into storage
Plnd delivery
time
Number of days to obtain an externally procured
material
Safety Stock Quantity required to satisfy unexpectedly high
demand and/or inconsistent supply
This is a list of
the views and
fields on a
material master
record relevant
to creating MRP
purchase
requisitions
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Production Planning 2 - 16
Material Master Record Views(continued)
Views Field Description
MRP3 Period indicator Specifies period in which the consumption
values and the forecast value are managed, i.e.,
monthly
Availability
check
Procedure that ensures enough components are
available for planned or production orders.
Indicates how or when availability is checked,
i.e., 01=Daily requirement
MRP4 Component
Scrap
Percentage of scrap that occurs during
productionAccounting 1 Standard price Standard price of material
Stor. location
stock
Stor. Loc. Where material is stored in the warehouse
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MM/PP Key Master Data Terms
Term Definition
Bill of Material
(BOM)
Complete list of components making up a
product, including description, quantity, unit
of measure, document information records,
comments, and notes
Alternate BOM A modified BOM with a new effectivity date.
Allows you to make significant changes to the
BOM, while maintaining the original BOM
structure
Capacity
Defines the ability of a work center to performa task: Can be measured in time (as in hours)
or in units
Material Master
Data Record
Contains a complete set of data for all material
procured, sold, produced, and stored
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Production Planning 2 - 18
MM/PP Key Master Data Terms
(continued)
Term Definition
Material Type Grouping of materials with same basic
attributes, allowing these materials to be
uniformly managed
Routing List of operations that must be performed in
sequence to manufacture a product
Work Center An organizational unit that defines where an
operation must be performed: Can be a
person, machine, or product line; includes
information about capacity planning
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Learning Review
You should now be able to:
Define the key terms related to Materials
Management and MM/PP Master Data Describe how MM/PP Master Data fits into
the SAP system
List the key MM Master Data processes
described in the AeLS courses
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Production Planning 2 - 20
This com pletes the review of
the AeLS prerequ isi tes:
Materials Management Overview
MM Master Data
Quest ions?