Production Planning Master Data EGN 5620 Enterprise Systems Configuration Spring, 2015

Production PlanningProduction PlanningMaster DataMaster Data

EGN 5620 Enterprise Systems Configuration EGN 5620 Enterprise Systems Configuration

Spring, 2015Spring, 2015

Business Module for Business Module for Selling Finished Goods by ProductionSelling Finished Goods by Production

January 2008January 2008

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Pre-Sales Activity

Sales Order

Delivery Billing

Planned Order

Production Order

Completion Confirmation

In Inventory

Plant or Warehouse

Availability Check

NO

YES

Goods Issued to Delivery

Goods from Production Order

General Ledger Accounts

InventoryPostings

AccountsReceivable

Issue Goods to Production

Order

Purchase Requisition

Purchase Order

Goods Receipt

Invoice Receipt

AccountsPayable

NO

Or

Production and PlanningProduction and PlanningMaster DataMaster Data

SAP Implementation SAP Implementation

Business Process Integration Business Process Integration


© SAP AG - University Alliances and © SAP AG - University Alliances and The Rushmore Group, LLC 2008. All The Rushmore Group, LLC 2008. All rights reserved. rights reserved. 44

MM

PP

SD

Org

Dat

a

Rules

MM

PP

SD

Master D

ata

MM

PP

SD

FI SDMM

FI

FI

FI

PP

Business Process IntegrationBusiness Process Integration


© SAP AG - University Alliances and © SAP AG - University Alliances and The Rushmore Group, LLC 2007. All The Rushmore Group, LLC 2007. All rights reserved.rights reserved. 55

PP

Org

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PP

PP Organizational DataPP Organizational Data Client

◦ An independent environment in the system Company Code

◦ Smallest org unit for which you can maintain a legal set of books Plant

◦ Operating area or branch within a company Manufacturing, distribution, purchasing or maintenance facility

Storage Location◦ An organizational unit allowing differentiation between the various stocks of a

material in a plant Work Center Locations

◦ An organizational unit that defines where and when an operation is performed◦ Has an available capacity◦ Activities performed are valuated by charge rates, which are determined by

cost centers and activity types. ◦ Can be machine, groups of machines, people, production lines or groups of

craftsmen

GBI Structure for PPGBI Structure for PP

Global Bike

Global Bike Inc. Global Bike Germany GmbH

Dallas Heidelberg

Client

CompanyCode

Plant

StorageLocation

Raw Materials

Semi-fin. Goods

Finished Goods

Miscellaneous

Raw Materials

Semi-fin. Goods

Finished Goods

Miscellaneous

Assembly

Packaging

Inspection

Assembly

Packaging

Inspection

(Work Center Location)

Organization Data Organization Data Plant-specific organizational units

◦MRP controller ◦Production controller◦Production scheduler◦Planner group ◦Person responsible (financially)

Non-plant specific organizational units◦ Capacity planner



BPI PP master data BPI PP master data



PP

Ma

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r Data

PPPP

PP

Master Data for Production Master Data for Production PlanningPlanning

MaterialBill of Materials (BOM)Work CenterRoutingProduct Group



Material Data (Review)Material Data (Review)Definition

◦Physical objects to buy, transform into, sell, maintain other resources, or use in support for business activities.

Generic classification(material types) :◦Trading goods◦Raw materials◦Semi-finished products (WIPs)◦Finished products◦Consumables (e.g., stationery, production tools)◦Spare parts (for maintenance)

Bill of MaterialsBill of MaterialsBOM is a hierarchical structure of the materials

needed to produce a finished goods or semi-finished goods.

BOMs in SAP are defined as single-level, but can be constructed multi-level by nesting several single-level BOMs.

Nesting refers to a hierarchy in which a bill of materials contains its own bills of materials.



Bill of Material Master DataBill of Material Master DataBOM in SAP consists of a header section and an

item section.

Header section includes data that apply to entire BOM, such as finished material number, plant, usage, validity, status, and base quantity.

Usage identifies the purpose for which the BOM can be used. For example, 1 is for production.

The BOM is valid from the date specified in the header.



Bill of Materials Master DataBill of Materials Master DataItems section identifies all materials needed to make

finished goods or semi-finished goods identified in the header.

Data for each item are: ◦ item category, ◦ material number, ◦ description, &◦ Quantity

Item category◦ Tell how material is used in the BOM.



BOM MM Item CategoryBOM MM Item Category

L: Stock itemN: Non-stock itemR: Variable –size itemT: Text item used to include notes and

comments within the BOM. Notes may explain how to use the material or identify any unusual assembly requirement.

D: Document item used to include document such as engineering drawings, assembly instructions, and photographs.



BOM MM Item CategoryBOM MM Item CategoryK: Class item used in variant BOMs to identify a

class or group of items. A variant BOM is used to create multiple versions.

M: Intra material, or phantom items used as a logical grouped set of materials that could collectively be considered as a single material. Phantom material is not an actual material and is mostly temporarily used during production planning.



Where to use BOM?Where to use BOM?1. MRP uses BOM to determine dependent

requirements

2. Controlling uses BOM to calculate product costs

3. Production uses BOM to issue the proper quantities of components and raw materials to the shop floor



Bill of Materials – An ExampleBill of Materials – An ExampleBOM for a Bicycle1. Wheel Assembly

1.1 Tire1.2 Tube1.3 Wheel1.4 Hex nut1.5 Lock Washer1.6 Socket Head Bolt

2. Frame3. Derailleur Gear Assembly

4. Seat Kit

5. Handle Bar

6. Pedal Assembly

7. Chain

8. Brake Kit

9. Warranty Document

10. Packaging

Single-Level Single-LevelFinished Bike

Handle Bar

Wheel Assembly

Frame Chain

Derailleur GearAssembly

Warranty Doc.Seat Kit

Brake Kit

Pedal Assembly

Packaging

Bill of Materials: Single-levelBill of Materials: Single-level

Multi-Level

Single Level vs. Multi-Level BOMSingle Level vs. Multi-Level BOM

Single-LevelFinished Bike

Handle Bar ChainDerailleur Doc.Seat BrakePedal Pack.

Single-Level

Wheel Frame

Tire

Tube

Wheel

Hex nut

Lock

BoltMulti-level

◦Several products with a large proportion of identical parts.

Single-Level

Variant Bill of MaterialsVariant Bill of Materials

Deluxe Bike (red)

Handle Bar

Aluminum Wheel

Frame red Chain



Brake Kit

Pedal Assembly

Packaging

Single-Level

Professional Bike (black)

Handle Bar

Carbon Wheel

Frame black Chain



Brake Kit

Pedal Assembly

Packaging

Work CenterWork CenterWork center is a location where value-added

work for producing a finished or semi-finished product is carried out.

A work center can be a machine, a group of machines, an entire production line, a work area, or a person or group of people who are responsible for completing operations.

A work center is a resource that can be used for a variety of purposes and for multiple processes.



Work Center - CapacitiesWork Center - CapacitiesWork center used to define capacities

◦Labor◦Machine◦Output◦Emissions

Capacities used in◦Capacity requirements planning (CRP)◦Detailed scheduling◦Costing



Work Center – Where usedWork Center – Where usedWork Center is used:

◦To be assigned as cost center◦To be allocated with Human Resources (HR)

Positions with requirements People with qualifications



Work Center ViewsWork Center ViewsWork Centers have multiple views of:

◦Basic data◦Default values◦Capacity overview◦Scheduling◦Cost center assignment◦Technical data



Work Center – Basic data sectionWork Center – Basic data section



Name, and description of the work centerPerson or group of people who are responsible for

completing operationsTask list: a list of operations that are required to

accomplish a task. Operations are the specific tasks that must be completed, such as drilling, cutting, assembling. In production, a task list takes the form of a product routing or a master recipe.

Standard value key: used to assign standard or planned values for operations, such as setup and execution times. Companies use these values to calculate costs, execution times, and capacity requirements.

Work Center – Basic dataWork Center – Basic data



Work Center – Default Values Work Center – Default Values



Default Values: for operations performed at the work center.

Control Keys: specify how an operation or a sub-operation is scheduling, how costs will be calculated, and how operations will confirmed once they are completed in the work center.

Wage data: used by processes in human capital management, such as payroll.

Standard value keys: identify the normal time elements – the activities that consume time associated with the work center. Typical time elements are setup time, machine time, labor time, and teardown time.

Work Center – Default ValuesWork Center – Default Values



Work Center – Capacities/SchedulingWork Center – Capacities/Scheduling



Available capacity defines how much work can be performed at the work center. ◦ A work center can include more than one resource or

capacity, such as labor and machine.

Scheduling basis determines the specific capacity to be utilized for production.

Work Center - Capacities/SchedulingWork Center - Capacities/Scheduling



Work Center - CostingWork Center - Costing



A work center is associated with a cost center which is a container for accumulation of costs. Costs associated with operations completed in a work center are calculated using formulas that utilize the costs and standard values associated with each activity type, for example,

setup, labor, and machine.

Work Center - CostingWork Center - Costing



Product RoutingProduct Routing

A list of tasks or operations that must be performed to convert a material to a part, component, or product.

Routing is a sequence of operations which detail the manufacture of a product

Routings are used as a template for production orders and run schedules as well as a basis for product costing.



RoutingRoutingRouting are used to determine:

OperationsWork centersMaterial components Production resources and toolsQuality Checks



Routing – an ExampleRouting – an Example

Routing for Finished Bike

Operation

Work Center

Plant

Control Key

Description

Time and Unit of Measure

Activity Type

Routing UseRouting UseRoutings will be used in

◦Scheduling (dates, times)◦Costing◦Capacity planning◦Production orders



RoutingRouting

January 2008January 2008© SAP AG - University Alliances and The Rushmore Group, LLC © SAP AG - University Alliances and The Rushmore Group, LLC 2007. All rights reserved.2007. All rights reserved. 3838

StandardSequence

AlternateSequence

ParallelSequence

Operation 10

Operation 20

Operation 30

Operation 40

Operation 10

Operation 20

Operation 30

Operation 40

Operation 25

Operation 20

Operation 10

Operation 30

Operation 40

Operation 25

Material Types Allowed in ProductionMaterial Types Allowed in ProductionMultiple material types may be used in a

routing/BOMRaw materialsSemi-finished productTrading goods are allowed but not standardText or Reference materials common



Controlling Activities for ProductionControlling Activities for Production

Used to perform internal cost allocation, where activities by a cost center are measured◦Labor time◦Machine hours

Output activities are valuedAllocation of an activity type is always

made with the allocation cost element created in activity type planning



Activity Prices Activity Prices Prices (costs) for planned activities

◦Fixed or Variable Labor = $$/hour Machine = $/hour Overhead = %



Activity Type/Price PlanningActivity Type/Price Planning



Product GroupProduct Group

Aggregate planning that group together materials or other product groups (Product Families)◦Manufacturing procedure◦Product design◦Market niche, etc.

Proportional Factors (Percentages for components)

Product GroupsProduct Groups



• Multi-level or single-level– A product group is multi-level if it contains

other product groups– Lowest level in a product group hierarchy

always consists of materials.– A product group is single-level if its members

are materials only– A material or product group can be a member

of more than one owner product group

Production GroupProduction Group



PP RulesPP Rules



PPPP

Ru

les

PP

PP

MRP Control ParametersMRP Control ParametersEnvironment

◦Number rangeMaster Data

◦Materials Requirements Planning controllers◦Float times

Planned Orders◦Conversion order type◦Dependant requirement availability



MRP Control Parameters MRP Control Parameters

Planning run ◦Bill of Material (BOM) selection ◦External procurement◦Planning horizon

Availability Check◦Material◦Production Resource/Tool (PRT )◦Capacity

Scheduling Control Parameters



General Planning ParametersGeneral Planning Parameters

Order Type Control Parameters◦Types of routings, ◦BOM’s per order type:

manually or automatically◦Availability checking

Create Confirmation Parameters ◦Reservations◦Status Updates

Define Valuation of Goods Received◦Moving Average Price Control evaluation



MM Planning ParametersMM Planning Parameters

Materials Requirements Planning views ◦for materials

Work Scheduling views ◦for manufactured products



GBI, Inc. GBI, Inc.

Production and PlanningMaster Data

GBI. Organizational Structures GBI. Organizational Structures

Plant (DL## Plant (DL## /MI##/SD## _)/MI##/SD## _)

Client (320) Client (320)

Chart of Chart of Accounts (GL##)Accounts (GL##)

CompanyCompanyCode (US##)Code (US##)

Fiscal YearFiscal YearVariant (K1)Variant (K1)

Credit ControlCredit ControlArea (GL##)Area (GL##)

PurchasingPurchasingOrganization Organization

(US##)(US##)

Purchasing Purchasing Group (N##)Group (N##)

Controlling Controlling Area (NA##)Area (NA##)

RM##RM## FG##FG##

Work CenterWork Center

Work center Work center (ASSY/INSP/(ASSY/INSP/PACK/MANT/PACK/MANT/

SERV)SERV)

Shipping Point (DL##/MI##/SD##)Shipping Point (DL##/MI##/SD##)

SF##SF## TG##TG##

MI##MI##

ASSM10##ASSM10## PACK10##PACK10##INSP10##INSP10##

BOM - ExampleBOM - Example



RoutingRouting



PPP OrdersPPP Orders

Planned Order (planning)◦A request created in the planning run for a

material in the future (converts to either a production or purchase order)

Production Order (execution)◦A request or instruction internally to produce a

specific product at a specific timePurchase Order (execution)

◦A request or instruction to a vendor for a material or service at a specific time

Exercises: Exercises: (Due Date – 3/30/2015)(Due Date – 3/30/2015)1. Determine work center location2. Create activity type3. Change activity output/prices4. Determine person responsible5. Create capacity6. Create work centers7. Create MRP views for raw materials8. Create semi-finished goods9. Create finished goods10. Create bill of materials11. Create product routings12. Create product groups

Documents

Production Planning Master Data EGN 5620 Enterprise Systems Configuration Spring, 2015