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Production Planning
SAP America LO215U02/ 1
Organizational unitsOrganizational units
Enterprise
Controlling areas
Sales organizations Purchasing organizations
Company codes
Valuation areas
Storage locations/batches/special stock
Demand management
MRP
Inventory mgmt.
Demand management
MRP
Inventory mgmt.PlantsPlants
PP Orders and Organizational Structures
Production control
Production order
PP - Organization Structure
CUSTOMERS
VENDORS
MATERIALSMANAGEMENT
SALES & DISTRIBUTION
FI - GL
FI - AP FI - AR
PRs for mtls thro MRP run
Issue of mtls for prodn
Sch
ed
ule
s /
Pu
rch
ase
Ord
ers
Receip
t of M
tls
Updation of Stock
Deliv
ery
/ In
voic
e
Sale
s
Pla
n
Demand thro MRP
Moving Finished Goods to Sales Yard
Con
su
mp
tion
En
trie
s t
hro
’ b
ackfl
ush
ing
Sales
Rev
enue
/ Cos
t of S
ales
Subsidiary Ledgers
Value flow into the General Value flow into the General LedgerLedger
Consumption Entries
thro’ issue to Prodn
Order
ASSETS
PRODUCTION PLANNING
Invoice verification with GR
Bills Of Material
Work CentersMaterials
RoutingInspectionPlans
Production Facilities
Capacities
PP Basic Data Production Resources/Tools
PRODUCTION PLANNING BASIC PRODUCTION PLANNING BASIC DATADATA
PRODUCTION MASTER PRODUCTION MASTER DATADATA
Material Master (MRP & Work Material Master (MRP & Work Scheduling)Scheduling)
Bill Of Materials (BOMs)Bill Of Materials (BOMs) Work Center (Cost Center & Activity Work Center (Cost Center & Activity
Types)Types) RoutingsRoutings Production Resource Tools (PRT)Production Resource Tools (PRT)
MATERIAL MASTERMATERIAL MASTER
Plant
Company
Storage Locations
Purchasing Organization
Purchasing Group
• A plant can be a physical plant
or a logical section of a plant
• Storage locations are areas where
materials are stored within a plant
• A purchasing organization can buy
for a number of plants
• A purchasing group is a sub-set
of a purchasing organization
MATERIALS MANAGEMENT MATERIALS MANAGEMENT ORGANIZATIONORGANIZATION
Material Typee.g. Raw material, semi-finished good, service, trading good, finished product• Controls access security• Determines how material is procured• Controls how material movements affect financial accounts• Linked to material number ranges• Controls what fields appear on what screens
Industry SectorControls what fields appear on what screens
Unit of Measuree.g. Piece, box, crate, palletDifferent parts of the business can measure quantities in different units
Multi-Lingual Texts
MATERIAL MASTER MATERIAL MASTER DATADATA
MATERIAL MASTER MATERIAL MASTER RECORDRECORD
General Data St. Loc. Specific Data Plant Specific DataSales Specific Data
Material Master
Data applicable throughout the client
e.g.
Material number
Description
Units of measure
Weight
Volume
Product hierarchy
Data dependent on sales organization and distribution channel
e.g.
Delivering plant
Sales text
Sales units
Shipping data
Division
Data relevantfor planning andproduction
e.g.
MRP profile
Production costs
Planning data
Valuation
Data referring to storage and inventory management
e.g.
Quantities
Special stock
Warehouse attributes
MATERIAL MASTER MATERIAL MASTER DATADATA
ProductData
EngineeringDesign
Sales
Production
Stock
Finance
Purchasing
Master data is a key pieceof information in the system
Master data can be seen froma number of views
Each view can correspondto an SAP module
Each view has a numberof information screens
Each view belongs to an org unit within the business
One product may have multiple plant and sales views, one for each plant or sales area
MASTER DATA VIEWSMASTER DATA VIEWS
EngineeringDesign
Sales
Production Stock
Finance
Purchasing Texts copiedto purchase orders
Maintains stock levels by plant, storage location, and batch
Data used tocalculate MRP
lead times
Controls customer ordering rules
for material
Controls whichGeneral Ledger
Account is updatedMaterial descriptionused in reporting
ProductData
EXAMPLES OF HOW DATA IS USEDEXAMPLES OF HOW DATA IS USED
ProductProduct
Component 2Component 2
Component31
Component31
Component32
Component32
Component33
Component33
Component 3(assembly)
Component 3(assembly)Component 1Component 1
STOCK MATERIAL NON-STOCK MATERIAL VARIABLE-SIZED ITEM TEXT ITEM SCRAP WASTE
STOCK MATERIAL NON-STOCK MATERIAL VARIABLE-SIZED ITEM TEXT ITEM SCRAP WASTE
Components:
BILLS OF MATERIALBILLS OF MATERIAL
TYPES OF BILLS OF TYPES OF BILLS OF MATERIALMATERIAL
Simple BOMSimple BOM
Variant BOMVariant BOM
Multiple BOMMultiple BOM
SIMPLE BILL OF MATERIALSIMPLE BILL OF MATERIAL
Several similar products are represented in one bill of material
Bike withBlack Frame
HandlebarAssembly
Bike withRed Frame
Bike withBlue Frame
Red Frame/Fork Assembly
Blue Frame/Fork Assembly
Chrome Forks Black Frame
Red Frame
Blue Frame
Qty. for variant 1Qty. for variant 2
Black Frame/Fork Assembly
VARIANT BILL OF MATERIALVARIANT BILL OF MATERIAL
A finished product can be manufactured using different methods of production with different components or component quantities
Qty. for alternative 1Qty. for alternative 1Qty. for alternative 2
Alt 1 - Lot Size 1 to 100Alt 2 - Lot Size 101 to 500Alt 3 - Lot Size 501 to 1000
Qty. for alternative 2
Pigment 2
Blue Paint
Solvent Water Pigment 1
One material but with different combinations ofcomponent material based on production method
MULTIPLE BILL OF MULTIPLE BILL OF MATERIALMATERIAL
WORK CENTERWORK CENTER
AssemblyLine
Machines
People
ProductionLine
Capacity Requirements Planning
Scheduling, Execution Times
Costing
Work Centers
Cost Center
WORK CENTERWORK CENTER
Cost Center
Oper 0010 Oper 0020 Oper 0030 Oper 0040
Routing with standard values
Set Up (SET)
Machine (MACH)
Labor (LAB)
Work Centerwith Activitiesduring production
Activity Rates
Set Up $70.00
Mach $60.00
Labor $80.00
Overhead $70.00
COST CENTER ASSIGNMENT TO COST CENTER ASSIGNMENT TO WORK CENTER FOR OPERATION WORK CENTER FOR OPERATION
COSTINGCOSTING
Work Center Capacity
Oper 0010 Oper 0020 Oper 0030 Oper 0040
Routing with standard values
Set up Formula
Machine Time Formula
Teardown Formula
Work CenterFormulas
Set up 1.0 hrs
Machine 5.5 hrs
Teardown .5 hrs
Operation Std Values
Work Center Schedule
USE OF FORMULAE IN USE OF FORMULAE IN WORK CENTERWORK CENTER
8 hrs
1 hr
7 hrs
1 hr
6 hrs
WorkingHours
BreakTime
WorkingHours less
Breaks
PlannedDowntime
ProductiveWorkingHours
AVAILABLE CAPACITY AT A AVAILABLE CAPACITY AT A WORK CENTERWORK CENTER
ROUTINGROUTING
Routing
Operation 30Operation 20Operation 10
Work Centre: PP-ASSEM
Control Key:- Time Tkts- Costing
Operation Text:Pre-assemble
frame
Std Values:Lab:10 mins
Mach:10 mins
MaterialsComponents
BOM
Process Resource Tool
(PRT)
ROUTING STRUCTURE VIEWROUTING STRUCTURE VIEW
OPERATIONSOPERATIONS
Operation types
(Main) operation
Sub-operationSub-operation Hierarchy Costing
Completion confirmation Scheduling always takes place on the
(main) operation level
The control key defines whether completion confirmations and costing are carried out on the (main) operation level, or on the sub-operation level.
Indicator: group operation sub-operation levelcombined operation (main) operation
OPERATIONOPERATION
Operation0010
Operation0010
Operation0020
Operation0020
Sub Operation0010 / 10
at Work Center A1
Sub Operation0010 / 10
at Work Center A1
Sub Operation0010 / 20
at Work Center A2
Sub Operation0010 / 20
at Work Center A2
Sub Operation0010 / 30
at Work Center A3
Sub Operation0010 / 30
at Work Center A3
Schedule at Operation Level
Useful when processing for operation 0010occurs over multiple work centers
Capacity Planning & Costingpossible at Sub Operation Level Level
OPERATION/SUB-OPERATION/SUB-OPERATIONOPERATION
Routing
Operation 10
Operation 20
Operation 30
Work Center W1
Cost Center 100
Assembly
Cost Centre 200
Work Center W2 Finishing
Cost Center 200
Work Center W1
Cost Center 100
Assembly
WORK CENTER AND WORK CENTER AND ROUTINGROUTING
REFERENCE OPERATION REFERENCE OPERATION SETSET
• It is a type of routing that comprises of a series of operations that recur frequently. It is used to create a routing.
• A reference operation set cannot be used directly in production.
• All the changes you make in the reference operation set are automatically implemented in the referenced operations of the routing.
Reference Operation
Set Z
Reference Operation
Set Y
Oper 0010Oper 0010
Oper 0020Oper 0020
Oper 0030Oper 0030
Oper 0040Oper 0040
Oper 0050Oper 0050
Oper 0022Oper 0022
Oper 0024Oper 0024
Oper 0026Oper 0026
Oper 0045Oper 0045
Reference Operation Set X
REFERNCE OPERATION REFERNCE OPERATION SETSET
SEQUENCES IN SEQUENCES IN ROUTINGROUTING
Standard Sequence A linear series of operations, oriented on the production process, from which parallel and alternative sequences can branch off.
Parallel Sequence A parallel sequence enables you to process several operations at the same time. A parallel sequence is carried out as the same time as the corresponding section in the standard sequence. It is a special form of overlapping operations.
Alternative Sequence A linear set of operations that is an alternative to a sequence of operations in the standard sequence.
StandardRouting represents a standard sequence defining production procedure
ParallelRouting includes processes which can be performed simultaneously to achieve time efficiencies
SplitRouting includes processes which can/must be split across a numberof work centers
OverlappedRouting defines process where one operation is to overlap with the following operation
SEQUENCES IN ROUTINGSEQUENCES IN ROUTING
Op. 10Op. 10
Op. 20Op. 20
Op. 30Op. 30
Op. 10Op. 10
Op. 30Op. 30
Routing BOM
ProductProduct
MATERIAL MATERIAL ALLOCATIONALLOCATION
RoutingRouting
MaterialMaster
MaterialMaster
WorkCenter
WorkCenter
Base Unit of MeasurePlanner GroupShort Text
Control KeyStandard ValuesActivitiesStandards Text KeyHR data
ROUTING DEFAULT ROUTING DEFAULT VALUESVALUES
OPERATION LEAD TIMEOPERATION LEAD TIME
Float Before Float AfterOper 0010 Oper 0020 Oper 0030
Queue | Setup | Process | Teardown | Wait | Move
Execution TimeInteroperation Time
Interoperation Time
Operation Lead Time
Since malfunctions and other disturbances in the production process can never be fully prevented, the system carries out scheduling using a float before and a float after production.
FLOATS BEFORE AND AFTER FLOATS BEFORE AND AFTER PRODUCTIONPRODUCTION
In addition to the floats before and after production, you can define an operation float in the form of a queue time. The queue time is used to compensate for malfunctions and delays within an operation.
The queue time is the interval between the earliest and latest dates of the operation (see the following figure). During each scheduling run, the system calculates the earliest and the latest dates for the individual operation segments.
QUEUE TIMEQUEUE TIME
FunctionThe function of Demand Management is to determine requirement quantities and delivery dates for finished products and important assemblies. The result of Demand Management is the demand program.
PrerequisitesTo create the demand program, you must define the planning strategy for a product. Planning strategies represent the methods of production for planning and manufacturing or procuring a product.
Result.
The demand program is created in the form of planned independent requirements. Demand Management uses planned independent requirements and customer requirements. Customer requirements are created in sales order management.
DEMAND DEMAND MANAGEMENTMANAGEMENT
• Make product for stock in expectation of customer sales
• Plan using planned independent requirements for “anonymous” make-to-stock
production.
• Use Net or Gross Requirements Planning
Net Requirements -- includes warehouse stock, planned issues and receipts.
Gross Requirements -- excludes warehouse stock. Just includes planned and open orders.
Example : Shelf stock item such as a bike accessory light.
• Planning Requirement Type is LSF - Make To Stock which is used in the planned
independent requirements transaction.
• Sales Order Requirement is KSL - which is Sale From Stock.
PLANNING STRATEGY PLANNING STRATEGY MAKE TO STOCK (MTO)MAKE TO STOCK (MTO)
Final assembly is initiated by the customer sales order
Stop production at sub-assembly level
Final assembly pull
Example : Automobile assembled with unique combination of features (sub-assemblies)
Planning Requirement Type is VSE -- planning without final assembly
Sales Order Requirement is KEV -- independent customer order with consumption
PLANNING STRATEGY- PLANNING STRATEGY- WITHOUT FINAL ASSEMBLYWITHOUT FINAL ASSEMBLY
• Sales orders are planned according to sales order number
• Produced quantities for each sales order are managed individually
• Production and procurement costs are managed in either a settlement order or a project.
• Example is a custom product with a unique structure such that it only applies to a particular customers order
• Sales Requirement Type is KE -- independent customer order without consumption
PLANNING STRATEGY-PLANNING STRATEGY- MAKE TO ORDER MAKE TO ORDER
PRODUCTIONPRODUCTION
MRP
Lot sizing
Order schedulingand generation
Internal productionand external purchasing
Net requirementscalculation
Bill of MaterialExplosion
Forecasting
MATERIALS REQUIREMENT MATERIALS REQUIREMENT PLANNINGPLANNING
MRP OVERVIEWMRP OVERVIEW
MRP FEATURESMRP FEATURES• Net Requirement Calculation:
In MRP, the system compares available warehouse stock or the scheduled receipts from purchasing and production with planned independent requirements, material reservations and incoming sales orders during the net requirements calculation. In the case of a material shortage the system creates an order proposal.
• Lot Sizing:
It calculates the quantity recorded in the order proposal according to the lot sizing procedure specified.
• Scheduling:
The order proposal is scheduled. For external procurement delivery and release dates are determined and for in house production the production dates are calculated.
• Planned Orders:
During MRP run planned orders are created which are converted to purchase orders for external procurement and production orders for in house production.
MRPPlanningResult
The MRP List displays the result of the last planning run
The Stock Requirements List displays the most up-to-date stock and requirements situation
MRPPlanningProcess
MRPPlanningProcess
Last planningrun results
Stock RequirementsList uses current data
Current Stock, Rqmts, Balances, planned Receipts, Issues
MRP LIST MRP LIST V/SV/S STOCK REQUIREMENT LISTSTOCK REQUIREMENT LIST
The Stock Overview shows the stock position for all locations within a Company / Plant / Storage Location / Batch for all dispositions of material.
Total Company 100 20 15
Plant US01 Total 100 20 15
SLoc 0001Total 75 Batch 01 Total 45 Batch 02 Total 30
SLoc 0001Total 25
Unrestricted Quality Ins Reserved On Order ...
STOCK OVERVIEWSTOCK OVERVIEW
VB
VM
VV
PD
M0
Manual Reorder Point Planning:MRP produces order proposals when stock falls below a “reorder point”. The reorder point and safety stock levels are entered manually
Automatic Reorder Point Planning:The reorder point and safety stock level are calculated based on the forecast results
Forecast PlanningThe latest forecast is copied as requirements which are used to create order proposals
Deterministic PlanningMRP produces order proposal(s) to match the exact quantity of the requirements based on independent and dependent demands
Master Production SchedulingSimilar to PD but used for master schedule items
MRP TYPESMRP TYPES
MRP: REORDER POINT MRP: REORDER POINT PLANNINGPLANNING
Reorder Point
Safety Stock
Order Date Delivery Date Time
Stock
Static Periodic Optimum (Cost )
Lot for Lot
Fixed Lot size
Replenish up tomaximum stocklevel
Daily Lot size
Weekly Lot size
Monthly Lot size
Flexible period
Lot size accordingto planning calen.
Part period balancing
Least unit cost procedure
Dynamic Lot size creation
Groff reorder procedure
LOT SIZINGLOT SIZING
Lot for Lot Order Quantity:
Shortage Quantity = Ordered Quantity
Replenishment up to Maximum Stock Level:
Stock required to achievemaximum stock level set in
the material master
Order Quantity =
Material Fixed Order
Quantity= Shortage
Quantity
Order =Fixed Order
QuantityIf
Order
Order
OrderFixed Lot Size:
Shortage Quantity >
Fixed Order QuantityIf
MRP STATIC LOT SIZINGMRP STATIC LOT SIZING
PurchasingProcess Time
Vendor Planned Delivery Time
Desired Delivery DateRelease
Order Date
Today
Goods ReceiptProcess Time
Forward scheduling used for reorder point material
FORWARD SCHEDULING FORWARD SCHEDULING FOR EXTERNAL FOR EXTERNAL PROCUREMENTPROCUREMENT
PurchasingProcess Time
Vendor Planned Delivery Time
Desired Delivery DateCalculated Order
Release Date
Future RequirementDate
Goods ReceiptProcess Time
MRP determines the basic scheduling dates using backward scheduling If the release date lies in the past, the system automatically switches to
forward scheduling
MRP PlanningDate -- today
MRP Planning Lead Time
BACKWARD SCHEDULING FOR BACKWARD SCHEDULING FOR EXTERNAL PROCUREMENTEXTERNAL PROCUREMENT
Order ReleaseProcess Time
In-houseProduction Time
Order Finish Date
OrderStart Date
Future Requirement
Date
Goods ReceiptProcess Time
MRP determines the basic scheduling dates using backward scheduling If the release date lies in the past, the system automatically
switches to forward scheduling
MRP PlanningDate -- today
MRP Planning Lead Time
Order Release
Date
BACKWARD SCHEDULING BACKWARD SCHEDULING FOR IN HOUSE FOR IN HOUSE PRODUCTIONPRODUCTION
MRP Controller Group of Materials for which controller
is responsible
Controller’s MRP Listing
Goods ReceiptGoods Issues
MRP Order Proposals and Planner Messages
from MRP Planning run.
Planner can drill down to review material movement activity
MRP LISTMRP LIST
Regenerative Planning – all master schedule items are planned for a plant.
It is generally used during initial start-up to ensure all items are planned or
when heavy maintenance causes most items to be re-planned.
Net Change Planning – only master schedule items which have undergone
a change to the supply/demand balance, such as warehouse receipts and issues,
are re-planned. It is common to run net change MPS daily.
Net Change Planning in the Planning Horizon – shortens the period
over which MPS plans to the planning horizon, which is set in Customizing. It
is typically set to the length of time of the longest lead time item. This means
that only those master schedule items which have undergone a relevant change
within the planning horizon are planned.
PLANNING RUN PLANNING RUN TYPESTYPES
Single-level, Single-Item PlanningPlanning carried out for a single item on a BOM. Dependent requirements are only created for materials on the next lower level
Multi-level, Single-Item PlanningPlanning carried out for the complete BOM structure of a material
SINGLE ITEM PLANNINGSINGLE ITEM PLANNING
Daily Accumulation:
Sales Orders
Planned Individual Requirements
Reservations
Entriesfrom
Planning File
Warehouse Stock
+
Open Order Proposals
Shortages
Order Proposal
Coverage calculation per requirement date
NET CHANGE PLANNINGNET CHANGE PLANNING
E1
Independent RequirementsCustomer Requirements
Planned Orders
Dependent Requirements
B2B1
R1 R2 R3
Planned Orders
DependentRequirements
DependentRequirements
Level 0
Level 2
Level 1Planned Orders
Planned OrdersPlanned OrdersPlanned Orders
MULTI LEVEL PLANNING MULTI LEVEL PLANNING STRUCTURESTRUCTURE
= Demand
= Supply
SalesPlan
SOP
ProductionPlan
MPS
PlannedIndependent
Requirements
Customer IndependentRequirements
Requirements (Orders) from SD ModuleOffset
Keep Balanced
Order Proposals
MRP
Planned Orders
Production Orders
Purchase Requisitions
Demand Requirements
Order proposals, planned orders etc are created and adjusted by running the MRP or MPS programs.
THE PLANNING CONCEPT IN THE PLANNING CONCEPT IN SAPSAP
Independent Requirements:Sales Orders & Planned
Independent RequirementsDependent Requirements:
From BOM explosion
Timings Resource RequirementsQuantity Requirements
Start FinishJuly
1July
5 Labor MachineryRaw
Materials
1 2 3 4 5 6 7
Order Proposal
BOM explosion
Stock RequirementsList
MRP AND MPSMRP AND MPS
Independent Requirements :Planned Independent Requirements:Are used for the anonymous (Non-order-specific) planning of production or procurement (eg. demand forecast)
Customer Independent Requirements:Are sales orders on the system. Sales Orders are generally copied directly into the PP system from the SD system, but they can also be entered manually
Dependent Requirements :Are directly related to or derived from the BOM structure for other items or end products. They are automatically generated during MRP
REQUIREMENT REQUIREMENT TYPESTYPES
Material at 0010------------------------------• Material Number• Quantity• Date
Material at 0010------------------------------• Material Number• Quantity• Date
Operation 0020------------------------------• Work Center• Control Info• Operation Times
Operation 0020------------------------------• Work Center• Control Info• Operation Times
Order Header------------------------------ Settlement Rule Planned/Actual Costs Operation Sequence
Order Header------------------------------ Settlement Rule Planned/Actual Costs Operation Sequence
Operation 0010------------------------------ Work Center Control Information Operation Times
Operation 0010------------------------------ Work Center Control Information Operation Times
Material at 0010------------------------------ Material Number Quantity Date
Material at 0010------------------------------ Material Number Quantity Date
PRODUCTION ORDER PRODUCTION ORDER ELEMENTSELEMENTS
Order HeaderMain View
Order HeaderMain View
Order Type Order Number Production Order Quantity Production Order Date
Order HeaderMaster Data
Order HeaderMaster Data
For Routing For Bill of Material For Costing
Order HeaderAllocation Data
Order HeaderAllocation Data
For Plant MRP Controller
Order HeaderAcct. Assignment
Order HeaderAcct. Assignment
Settlement Rates
Order HeaderOrder Monitoring
Order HeaderOrder Monitoring
Date Quantity
PRODUCTION ORDER PRODUCTION ORDER HEADERHEADER
Material Number Requirement Quantity Requirement Date
Reservation Item Category Bulk Material Indicator
Operation Long Text
Operation Long Text
Text Key
ComponentOverview
ComponentOverview
ComponentGeneral Data
ComponentGeneral Data
PRODUCTION ORDER PRODUCTION ORDER COMPONENTSCOMPONENTS
Material: A, Qty: 100 PCsScheduling Type: BBasic dates: Start/Finish
Components Operations0010 B 1 0010 PHNASM000020 C 1 0020 0030 0040
User fields:• General text data• Quantity data• Value data• Date fields
Production Order
0010 PHNASM00002000300040
PHNASM00Std Values:Setup: 005Prod.: 075TDown: 005
Routing
Work Center
A
B C
Bill of Material
PRODUCTION ORDERPRODUCTION ORDER
MRP RequirementsMRP Requirements
Capacity RequirementsCapacity Requirements
Capacity EvaluationCapacity Evaluation
Work Center CapacityWork Center Capacity
MasterData
Material
BOM
Routes
WorkCenter
MasterData
Material
BOM
Routes
WorkCenter
Capacity Levelingto adjust capacityperiods
CAPACITY PLANNINGCAPACITY PLANNING
Stock on Hand
150 Units
Reservationfor
50 Units
NetAvailable 150 100 300 100
Planned Orderfor
200 Units
Dependent Requirement
for 200 Units
Requirement for 50 Units are Available
MATERIAL AVAILABILITY CHECKMATERIAL AVAILABILITY CHECK
Float Before Float AfterOper 0010 Oper 0020 Oper 0030
Queue | Setup | Process | Teardown | Wait | Move
Execution TimeInteroperation Time
Interoperation Time
Operation Lead Time
Material Master Lead Time
CAPACITY CAPACITY SCHEDULINGSCHEDULING
A Production Order collects all costs associated with making an inventorable item. The order picks up” costs through the manufacturing process from the Bill of Material and the Routing.
Billof
Material
Routing
Production OrderSTATUS:
Created, Released,Confirmed, Delivered,
SettledOrder: 73 Type: PP01Plant: LR001System Status:CRT REL CNF DLV SETCQuantities: Total Produced: 100 Tons Scrap: .001 Confirmed: 100 TonsDates: Schedule 09/15/95 Confirmed 09/16/95
PRODUCTION ORDER AND PRODUCTION ORDER AND INVENTORY ACCOUNTINGINVENTORY ACCOUNTING
CostCenter Formula
Routing
• Standard values• General standard values
Work center
• Formula constants
Activity type
Actual time/quantityActivity price
Costs
CALCULATING PRODUCTION CALCULATING PRODUCTION COSTSCOSTS
Direct material costs
Indirect material costs
Direct production costs
Indirect production costs
Costingsheet
+
+ =
=
Material costs
Production costs
+
=Manufacturing costs
Indirect managementcosts
Indirect sales costs
Cost of goods sold
+
+
=
OVERHEAD COSTINGOVERHEAD COSTING
Order
Delivery
Goods issue
Invoice
Material Requirements Planning
Production
Sales orderstock
Target—
Actual—
Individual customer requirements
Production memo
Reduction of
sales order stock
MAKE TO ORDER PRODUCTIONMAKE TO ORDER PRODUCTION
ISSUE MATERIALS TO ORDER
SelectBOM
SelectRouting
ScheduleTimes & Dates
CalculateCapacity
Purchase Requisitions
GoodsIssue
Production Order
CalculatePlanned Costs
RELEASEORDER
Check Availability
Print Shop Floor Papers
CREATEORDER
CreateRequired Purchases
CONFIRMCOMPLETION
RECEIVE COMPLETE GOODS INTO STOCK
GoodsReceipt
Confirmation Slip
CalculateActual Costs
ActualLabor
THE PRODUCTION THE PRODUCTION CYCLECYCLE
Repetitive Manufacturing- Repetitive Manufacturing- OverviewOverview
Flexible Production Strategy Flexible Production Strategy Production carried out in Production LineProduction carried out in Production Line Production for Longer PeriodsProduction for Longer Periods Order less Production - Managed through RS Order less Production - Managed through RS
HeaderHeader One time Master data creation with period One time Master data creation with period
validityvalidity Effective Version ControlEffective Version Control Process execution simpleProcess execution simple Suitable for continuous and repeated type of Suitable for continuous and repeated type of
production.production.
Repetitive Manufacturing - Repetitive Manufacturing - MastersMasters
Material Master ( MRP 4 - Production Material Master ( MRP 4 - Production Version)Version)
Bill Of MaterialBill Of Material Work Center (Production Line)Work Center (Production Line) Rate Routing Rate Routing Run Schedule HeaderRun Schedule Header Standard Cost EstimateStandard Cost Estimate
Repetitive Manufacturing - Key Repetitive Manufacturing - Key ElementsElements
Repetitive Manufacturing Profile (REM)Repetitive Manufacturing Profile (REM)
Production VersionProduction Version
Product Cost CollectorProduct Cost Collector
SCE Release and ValiditySCE Release and Validity
Repetitive Manufacturing - Repetitive Manufacturing - ProcessProcess
REM Profile creation & inclusion in REM Profile creation & inclusion in MMMM
Work Center (Prod..Line) with Cost Work Center (Prod..Line) with Cost Center and Activity TypesCenter and Activity Types
Rate Routing Creation (Control Rate Routing Creation (Control Keys)Keys)
Production Version CreationProduction Version Creation Standard Cost Estimate ReleaseStandard Cost Estimate Release Product Cost Collector creation.Product Cost Collector creation.
Repetitive Manufacturing - Repetitive Manufacturing - PlanningPlanning
MRP RunMRP Run Requirements in RS Planning TableRequirements in RS Planning Table Edit RS table for Roll over etc..Edit RS table for Roll over etc.. Firming Requirements (if required)Firming Requirements (if required)
Repetitive Manufacturing - Repetitive Manufacturing - ExecutionExecution
Pull List - Check for Components Pull List - Check for Components availabilityavailability
Backflushing - Component & ActivityBackflushing - Component & Activity Single Step / Multi step Backflush Single Step / Multi step Backflush
(Reporting Point / Final Backflush)(Reporting Point / Final Backflush) Reprocessing List CorrectionReprocessing List Correction