DISCRETE MANUFACTURING(FULL LIFE CYCLE)

Data Types in SAP ERP

When dealing with a software system as robust as SAP ERP, you need to haveperspective on
how your business will be modeled in a software environment. In
SAP ERP, users will have essentially three types of data:

Configuration data
Masterdata
Transactional data

Configuration Data:

Organization Structure
Configuration data is often referred to as one-time data. This means that the datashould not
change, but if it does it will be tracked or controlled.

Client
The client is a unit within an SAP ERP system that is self-contained both inlegal and
organizational terms, and in terms of data, with separate masterrecords and an independent set of
tables. From a business viewpoint, theclient represents a corporate group.

Company code
A company code is the smallest organizational unit of external accountingfor which a complete,
self-contained bookkeeping system can be replicated.This includes the entry of all events that
require posting to the accounts andthe creation of a complete audit trail for balance sheets and
profit-and-lossstatements. A company code represents an independent unit producing itsown
balance sheet, for example, a company within a corporate group (client).

Plant
The plant is an organizational unit within logistics that subdivides anenterprise from the
viewpoints of production, procurement, and materialsplanning.

Storage Location
The storage location is an organizational unit that facilitates thedifferentiation of stocks of
materials within a plant. Inventory managementon a quantity basis is carried out in the plant at
storage-location level. Thephysical inventory is also carried out at this level.

Purchasing Organization
Outside of production planning, other areas of the SAP ERP system needadditional configuration
to support their specific functional needs. In addition tothe client and company code
requirements, purchasing requires an additionalorganizational structure.

Sales Organization
Similar to the purchasing side of an organization, the group responsible for saleshas additional
unique business requirements.A sales organization is uniquely assigned to a company code,
however a companycode may have more than one sales organization assigned to it.

Distribution channelis a means through which saleable materials or servicesreach the customer.
A distribution channel is assigned to a sales organization. Asales organization may have more
than one distribution channel assigned to it.
Division A
sales organization can have several divisions assigned to it, but must have atleast one division. A
division is used to group materials and services. A divisioncan represent a product group or
product line, which allows:
Restricted price agreements to a certain division
Statistical analysis by division

Sales areais a unique and allowable combination of a sales organization,distribution channel,

and division. Each Sales and Distribution document isassigned to exactly one sales area. This
assignment cannot be changed. A salesarea can belong to only one company code. This
relationship is created by theassignment of the sales organization to the company code in
Customizing.
Shipping pointis the organizational element that manages your shippingactivities. Each
outbound delivery is processed at a shipping point.

MRP areas are defined as part of MRP configuration. There are three types of
MRP areas: plant, storage location, and Vendor (subcontractor).

When creating MRP areas, you must specify the MRP area type, plant, andreceiving storage
location for Type 2 (storage location). Companies have theoptions of assigning one or more
storage locations to each MRP area. Once anMRP area is defined, users must assign material
masters to the MRP areas theywish to segregate from the rest of the plant.

Master Data:

Configuration will be the foundation upon which most master data will be built.
Master data is often referred to as slowly changing data. This means the data ofa particular object
does not change all the time, but often several times a year.Master data in SAP ERP is a
centralized function. This means that the data is beintended to be stored once and replication is to
be avoided. The master data thatwill be used for production planning in SAP ERP is as follows:

Material masters
Bills of material
Work centers
Task lists/routings
Cost center

Transactional Data:

Every day, businesses perform tens of thousands of transactions that make thebusiness function.
Some transactions are directly related to outside events withcustomers or suppliers. Other events
are internal to the business and affect theinteraction between departments within a business or
division.

Within SAP ERP, all transactional data is related to some form of master data orconfiguration
data. In the world of production planning, you will be executingplanning runs that will be
generating replenishment suggestions, generatingproduction execution directions, or executing
production confirmations. In SAPERP production planning, alltransactional data typically
revolves around thematerial master, bill of material, or routing.
 Master Data Objects in Production Planning:

i) Material Master Record (MM01/MM02)

The material master contains information on the materials that a companyconstructs,

procures, manufactures, stores, and sells. The information is stored ina database that is a
central source of data on materials. The material master recordintegrates data from different
areas of a company.

ii) Bills of Material (CS01/CS02)

A bill of material (BOM) is a complete, formally structured list of the componentsthat

make up a product or assembly. The list contains a description and objectnumber for each
component, together with the quantity and unit of measure. Billsof material can exist at the
plant and/or client level. The header and components allcontain validity dates that can be
affected using Engineering Change Management.

iii) Work Centers (CR01/CR02)

 A work center is a location that defines when and where production resources arerequired
according to order requirements. In different companies, work centersare also called
machine, labor, or capacity centers.

iv) Task Lists and Routings (CA01/CA02)

A routing defines operations and the sequence in which they are carried out. The following
is also defined in the routing:

a) Where the work is to be done

b) How long the work should take
c) What materials are needed for each operation?
d) What tools and fixtures are required?

A routing shows operations in a sequence and acts as a template for productionorders. Each
step defines the work center in which specific work will beaccomplished. The planned time
for each operation is stored in the routing asa standard value.

These standard values are the basis for:

a) Lead time scheduling
b) Product costing
c) Capacity planning
Steps Involved in Complete cycle:

1) Requirement is flowing in any of the two ways or both, one from sales order (VA01),
another from planned independent requirement (MD61) or customer requirement (MD81).

2) Check whether the requirement is flowing correctly in Stock requirement list (MD04).

3) Run a MRP in Single material multilevel (MD02) if there is any Reorder point planning
material run MRP in Plant level (MD01).

4) Check whether planned order is created for a header material and all dependent material in
Stock requirement list (MD04).
 5) i) If you are using MRP Run to Convert the planned order into purchase requisition for
external procurement material (MD14 or MD15 or MD04), if it is in house production
convert the planned order in to production order in stock requirement list (MD04, CO40 for
individual conversion, CO41 for collective conversion, CO48 for partial conversion).

ii) If you are manually converting planned order to production order (for Collective
conversion).

6) Once production order is created, release the order (CO05n), allocate the capacity to work
center, availability check and check the cost and save it.

7) Once the order is created, components are set to reservation on BOM.

8) Issue the dependent material to the order using MB1A, goods movement type 261 (Goods
issue for an order).

9) Confirm the order using CO15, if you want to confirm operation wise, then confirm in
CO11N (Time Tickets).

10) Once the confirmation is made, then goods receipt (MB31) for the order is carried out with
Movement type 101 (Goods receipt for Purchase order or order, for non-valuated goods GR
is posted to warehouse).

11) Set TECO in CO02 (change of production order)

12) Month end activity(Calculate the WIP in KKAX)

13) Calculate the Overhead in KKS2, variance calculation and settlement of order.

14) For all production orders are sent to Status change to close. (CLSD)

Auto GI:
Set the back flush indicator in any of the following things
a) In Material Master in MRP 2 views.
b) In Work center in basic data view you have to tick the back flush indicator. It will affect only
material used in particular work center.
c) In Routing, Component allocation Screen you can set back flush indicator. It will affect only
in that routing.

Auto GR:
In the final operation of the routing, enter Control key with Auto GR tick
REWORK:
Generally in the Shop floor, rework happen frequently. Rework is done by different ways
a) Automatic triggering of rework order when we enter rework qty in confirmation screen.
b) If rework has to be done immediately after entering in to rework qty in the confirmation
screen before proceeding next operation, by done by control key with rework option and
enter the time in operational detail and operation quantity.
c) Create a reference operation set and create a rework order with rework order type and
settle the rework order into main production order.