Production Planning Business Blueprint

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DOCUMENT INFORMATION
Project Name Lakshya Document Name PP Business Blueprint Document Location Document Server

DOCUMENT HISTORY
Version Document Date Name 1.1 PP Business 08.10.2008 Blueprint 1.0 PP Business 11.08.2008 Blueprint Author Shoyeb Ahamad Shoyeb Ahamad Reviewed By Change Control Version 1.0 Version 1.0

DOCUMENT CONTRIBUTION
Name Organization Change control

TABLE OF CONTENTS 1 EXECUTIVE SUMMARY..................................................5

1.1 Background.......................................................................................5 1.2 Business Blueprint Overview................................................................7 1.3 Implementation Scope........................................................................9

1.3.1 Geographical Coverage...............................................................................9 1.3.2 Functional Scope........................................................................................9 1.3.2.1 Demand Management..............................................................................9 1.3.2.2 Material Requirement Planning................................................................10 1.3.2.3 Master Planning for Repetitive Manufacturing............................................10 1.3.2.4 Production Control.................................................................................11 1.3.2.5 Production Control - Repetitive Manufacturing...........................................11 1.3.2.6 Batch Management................................................................................11

2 ORGANISATION STRUCTURE......................................13 3 MASTER DATA............................................................15

2.1 Plant ..............................................................................................13 2.2 Storage Locations ...........................................................................13 3.1 Material Master ..............................................................................15
3.1.1 Purpose...................................................................................................15 3.1.2 Structure, Key Data & Proposals for USWL...................................................15

3.2 Bill of Materials................................................................................22 3.3 Work Center....................................................................................25 3.4 Routing...........................................................................................29 3.5 Repetitive Manufacturing Profile ........................................................32 3.6 Production Versions .........................................................................33 3.7 Product Cost Collector ......................................................................35

3.2.1 Purpose...................................................................................................22 3.2.2 Structure, Key Data & Proposals for USWL...................................................23 3.3.1 Purpose...................................................................................................25 3.3.2 Structure, Key Data & Proposals for USWL...................................................26 3.4.1 Purpose...................................................................................................29 3.4.2 Structure, Key Data & Proposals for USWL...................................................30 3.5.1 Purpose...................................................................................................32 3.5.2 Structure, Key Data & Proposals for USWL...................................................32 3.6.1 Purpose...................................................................................................33 3.6.2 Structure, Key Data & Proposals for USWL...................................................34 3.7.1 Purpose...................................................................................................35 3.7.2 Structure, Key Data & Proposals for USWL...................................................35

4 BUSINESS PROCESSES...............................................37
4.1 Demand Management.......................................................................37
4.1.1 Purpose...................................................................................................38 4.1.2 Master Data.............................................................................................38 4.1.3 Features w.r.t. USWL................................................................................40 4.2.1 Purpose...................................................................................................41 4.2.2 Master Data.............................................................................................42 4.2.3 Features w.r.t. USWL................................................................................42

4.2 Materials Requirements Planning........................................................41

4.3 Master Planning in Repetitive Manufacturing.........................................43

4.4 Repetitive Manufacturing Execution & Booking...................................45

4.3.1 Purpose...................................................................................................43 4.3.2 Master Data..............................................................................................43 4.3.3 Features w.r.t. USWL.................................................................................44 4.4.1 Purpose...................................................................................................45 4.4.2 Master Data.............................................................................................45 4.4.3 Features w.r.t. USWL................................................................................45 4.5.1 Purpose...................................................................................................47 4.5.2 Master Data.............................................................................................47 4.5.3 Features w.r.t USWL:................................................................................47

4.5 Post processing Backflush Errors........................................................47

4.6 Discrete Manufacturing Production Orders.........................................48 4.6.1 Purpose........................................................................................48 4.7 Discrete Manufacturing - Goods Issue for Production.............................49 4.7.1 Purpose........................................................................................49 4.7.2 Master Data..................................................................................49 4.7.3 Features w.r.t. USWL.....................................................................49 4.8 Discrete Manufacturing - Order Confirmation........................................49 4.8.1 Purpose........................................................................................50 4.8.2 Master Data..................................................................................50 4.8.3 Features w.r.t. USWL.....................................................................50 4.9 Goods Receipt from Production...........................................................50

4.6.2 Master Data.............................................................................................48 4.6.3 Features w.r.t. USWL................................................................................48

4.10 Discrete Manufacturing - Order Settlement.........................................51

4.9.1 Purpose...................................................................................................50 4.9.2 Master Data.............................................................................................51 4.9.3 Features w.r.t. USWL................................................................................51 4.10.1 Purpose.................................................................................................51 4.10.2Master Data............................................................................................52 4.10.3 Features w.r.t. BFW................................................................................52 4.11.1 Purpose.................................................................................................52 4.11.2 Master Data...........................................................................................53 4.11.3 Features w.r.t. USWL..............................................................................53

4.11 Batch Management.........................................................................52

5 MODULE INTEGRATION..............................................55
5.1 5.2 5.3 5.4

Materials Management (MM).........................................................................55 Sales & Distribution (SD)..............................................................................55 Finance / Controlling (FI & CO).....................................................................55 Quality Management (QM)............................................................................56

6 STANDARD INFORMATION SYSTEM............................57 7 GAPS......................................................................... 58

1 EXECUTIVE SUMMARY
1.1 Background
Before 1940s Ugarkhurd was a small Hamlet in Erstwhile princely state of Sangli. It was blessed with two great advantages, on its South flowed perennial river Krishna and on the North was situated Railway Station of Ugarkhurd. These two conditions were ideal to harness the advantages and exploit the fertility of the loamy soil on the Bank of river Krishna. Sugar & By-products: In the year 1939 Maharaja of Sangli invited Shirgaokars to start the sugar plant with a capacity of 500 TCD and first crushing season was started on 21st April, 1942. The capacity of the plant is increased from time to time and at present plant is crushing at the capacity of 10,000 TCD. The Ugar Sugar Works Ltd passed remarkable mile stone in securing the highest recovery of 13.46% in the year 1947 and in view of the good Agro Climatic Condition the recovery is always above 11%. Along with the sugar production, distillation of molasses to produce industrial alcohol was started in the year 1962 and the liquor division was started in the year 1965. The present distillery capacity is 75 KLPD of industrial alcohol. Similarly we are producing about 1,00,000 Cases Per Month of potable liquor with a prestigious brands like Old Castle Premium, U.S. Whisky, Milan Whisky etc. Ethanol: In view of oil prices going up and considering the global need of Petroleum Products Company decided to set-up a Ethanol Plant and at present supplying ethanol to Oil Companies for last about three years. Presently the mixing of ethanol in petrol is at 5% but it will be increased to 10% in the October, 2008. Co-generation: In order to make maximum utilization of By-products Company had decided to go for generation of electricity in the Year 1998. The present capacity of the power generation plant is 44 MW, out of which 15 MW is internally consumed while the remaining 29 MW is exported to the grid. Since we use non conventional fuel bagasse for this purpose we are eligible to get CDM credit.

Expansion: To continue to remain largest manufacturer of Sugar in South India, the company decided to expand its present capacity by setting up new sugar plant with a capacity of 3500 TCD with 15 MW of Co-generation at Malli Village, Jewargi Taluka, Dist- Gulbarga in Karnataka. Company has already taken trials during this season and from sugar season 2008-09 the unit will run with its full capacity. 100% EOU: The company has set-up 100% EOU for manufacture of Sugar Cube in the form of Sugar Ships which will be exported to Germany. The entire plant and machinery for this project is imported from Germany and with this machinery trial runs have been conducted. The commercial production has started during February, 2008. The manufacture of Sugar Ships will serve towards forward integration for the Company. This will open the door for export market for the company. A technical collaboration coupled with buy back guarantee will augur good results for the company. Joint Venture: Joint venture with Patil Group, we have set-up Sadashiva Sugars Ltd., with a capacity of 3500 TCD sugar plant with 15 MW Co-generation in Karnataka. Similarly in order to cater to the needs of packaging especially for EOU Unit and IML Division, the company has set up a packaging unit in joint venture with Mr. Jitendra Joshi in the name Ugar Quality Packaging Pvt. Ltd. at Ratnagiri.

Achievement and Milestones:

The Company has been awarded with ISO 9001 and 14001 certification from Rina. Company has backed National Safety Award for longest accident free period. S.V. Parthsarthy Award for the outstanding performance in the Sugar Industry for the Season 1984. S.V. Parthsarthy Memorial Award for excellence in R & D work from Indian Sugar Technology Association. The Company has achieved a turnover of Rs.5000 Million in 2007-08 and has target to reach 10,000 Million within a couple of year.
Best 2nd Safe Power Boiler in Karnataka State from Dept. of Factories & Boilers, Govt. of Karnataka.

1.2 Business Blueprint Overview

This document summarizes the findings of the Infosys consulting team and USWL LAKSHYA Team, with respects to SAP processes to be implemented in The Ugar Sugar Works Limited. Following activities were carried out during different phases of the project. CSBP-Current State Business Process Mapping USWL Sites Visit FSBP-Future State Business Process Mapping GAP Analysis

The information was gathered through above activities carried out during different phases of projects i.e. reviews of business processes, business procedures, documentation and relevant reports The purpose of Business Blueprint document is to prepare to move forward with the implementation of USWL`s SAP R/3 system. At the conclusion of the blueprint, the Infosys consultants will determine the SAP functionality required to run the USWL business.

The Blueprint and its associated appendices present a summarized perspective of all functional business processes that will be implemented. As such, the Blueprint document will serve - from this point forward the dual role of both official project scope as well as system acceptance criteria. The body of this document describes the Organizational Structure, Master Data, and R/3 functional process flows to be implemented at USWL. Generally, requirements that can be met using standard R/3 functionality through routine configuration tasks are not explicitly documented. However, certain key requirements are explicitly identified and summarized to highlight their importance to USWL and to document the approach proposed to meet the requirement. One section of the document summarizes identified gaps. The project team has discussed this list with agreement on the approach going forward. Acceptable approaches may require:

Additional programming or technical effort Recognition and acceptance of procedural changes ("Workarounds") using standard R/3 Additional resource commitment Deferral of a feature to a later phase Recognition and acceptance of a limitation.

Other section of the document summarizes Value SAP Q&A on Organization Structure, Master Data and Business Processes. These were used as per Value SAP Methodology to discuss the USWL requirements in detail. The Blueprint reiterates the R/3 organizational structures that have been identified and will serve as the basis for the initial configuration activities. No significant configuration and customization choices have been identified that will prevent the future implementation of additional capabilities within the R/3 environment. The information gathered and documented in the Blueprint is sufficient for the team to go forward into the Realization phase. However, it is critical that both the Infosys and USWL LAKSHYA team agree on the scope of the project as presented in this document.

1.3 Implementa tion Scope 1.3.1 Geographical Coverage

The following units are within the scope of SAP Implementation at THE UGAR SUGAR WORKS LTD: Plant Ugar Sugar Distillery Ugar Co-Gen IML FSS Jewargi Sugar Jewargi Co-Gen Regional Offices Sangli Mumbai Bangalore Belgaum

1.3.2 Functional Scope

Current Implementation Scope for Production Planning module is as follows: Demand Management (PIR) Material Requirement Planning Repetitive Manufacturing Batch Management

1.3.2.1 Demand Management

The function of Demand Management is to determine requirement quantities and delivery dates for finished products. Customer requirements are created in sales order management. To create a demand program, Demand Management uses Planned Independent Requirements and customer requirements. In current Scenario Demand Management data will be maintained manually by Planner.

1.3.2.2 Material Requirement Planning

The main function of material requirements planning (MRP) is to guarantee material availability, that is, it is used to procure or produce the requirement quantities on time both for internal purposes and for sales and distribution. This process involves the monitoring of stocks and, in particular, the automatic creation of procurement proposals for purchasing and production. In doing so, MRP tries to strike the best balance possible between optimizing the service level by ensuring material availability, and Minimizing costs and capital lockup by reducing inventory. MRP assists materials responsibility. planners (MRP controllers) in their area of

In the proposed scenario for USWL, MRP will be executed periodically for all direct materials for all units in the plant (total planning). For some raw materials/ consumables manual re-order point planning is proposed.

1.3.2.3 Master Planning for Repetitive Manufacturing

Master Plan in repetitive manufacturing is a material / production line / production version-wise production plan for in-house produced items, using the repetitive manufacturing (REM) Planning Table. The REM planning table is a tool for operative planning and is used to plan the production quantities. The requirement created after MRP run will be planned as per the capacity availability of production lines. In a repetitive manufacturing environment, planning and control is usually carried out in a period and quantity basis. The layout of the planning table has been designed to support this requirement and is also based on periods to provide a very clear, easy-to-interpret overview of materials and production lines.

The planning table is the planners/MRP controllers most important tool for planning the production quantities in Repetitive Manufacturing. At a glance the planner can check production quantities, monitor the available capacity of the production lines and check up on the availability situation of the products produced on each line.

1.3.2.4 Production Control

In the implementation for USWL, both Discrete Manufacturing (SFC) & Repetitive Manufacturing (REM) are proposed to be used. For Regular Products like different Sugar Ship products and Denatured Spirits (all types), Anhydrous Alcohol, Discrete Manufacturing will be used.

1.3.2.5 Production Control - Repetitive Manufacturing

This component can be used for production planning and control in a repetitive manufacturing environment. The goals of repetitive manufacturing are the following: Creation and revision of production quantities on a period and quantity basis Reduction in the production control effort using simpler back flushing tools In the implementation for USWL, repetitive manufacturing with make-tostock and make to order strategy is proposed. Backflush will be use for booking production activities, outputs and material consumption at each stage of production.

1.3.2.6 Batch Management

The structure of the material master record allows you to manage stocks of a material by value at plant level or company-code level and by quantity down to storage-location level. Under certain conditions, you may need to make further subdivisions for a material and manage batches. This is used for traceability from Saleable to Respective Child part.

In current implementation, in the case of blended liquor mass and packed cases of different brands, Batch Management can be used to identify the Master Batches.

2 ORGANISATION STRUCTURE
In the R/3 System the user can use several structures to represent the organizational structure of the entity from the point of view of financial Accounting, Controlling, materials management, and sales and distribution. The organizational structures form a framework in which all business transactions can be processed. An organizational structure consists of several organizational levels, which are used by different functional groups within an organization. The organizational levels relevant to Production Planning (PP) are given below.

2.1 Plant
This Organizational unit serves to subdivide an enterprise according to production, procurement, maintenance, and materials planning aspects. It is a place where either material is produced or goods and services provided. The Manufacturing Plants in Ugar Sugar Works Ltd. (USWL) are: Plants Ugar Sugar SS Distillery IML Cogen Petrol Pump Jewargi Sugar Cogen Location Ugar Ugar Ugar Ugar Ugar Ugar Jewargi Jewargi Plant Code 1001 1002 1003 1004 1005 1006 2001 2002

2.2 Storage Locations

Storage location is an organizational unit allowing the differentiation of material stocks within a plant. All data referring to a particular storage location is stored at storage location level. This applies mainly to storage location stocks.

The existing / already identified storage locations in USWL and their proposed codes in SAP are listed in the Materials Management Business Blueprint. In addition to the above-mentioned list, there will be additional Production Storage Locations before and after every Production line in every Unit for each Plant. Identification of these will be done during the Realization Phase, when manufacturing processes (i.e. Bill of Materials & Routings) will be mapped in detail. The coding methodology for these additional Production Storage Locations will be the same as that for the existing storage locations.

3MASTER DATA
3.1 Material Master
DEFINITION The material master contains information on all the materials that a company procures or produces, stores, and sells.

3.1.1 Purpose
It is the company's central source for retrieving material-specific data. This information is stored in individual material master records. For every material that your company uses, you must create a material master record in the material master. A material number uniquely identifies this record.

3.1.2 Structure, Key Data & Proposals for USWL

The material master has a hierarchical structure corresponding to the organizational structure of a company. Out of the various views available in Material Master Record, Basic Data and Classification contains all the general information that will be applicable at Client level (i.e. for all organizational units like Plant, Storage Locations etc., of USWL). Other information is organization unit specific. Thus, master data for materials that are required at several Plants will be extended to (i.e. specified for) each of these Plants. Besides the Basic Data and Classification views, Production Planning will use master data in MRP (MRP 1 / 2 / 3 / 4) and Work Scheduling views for those materials relevant for Production at USWL. Since materials are planned at plant level, you must specify a plant in the organizational Levels dialog box to access the MRP views. For data specific to a storage location, you must also specify the storage location concerned.

The key Material Master Data fields relevant for Production & Planning in USWL are listed below: Material Requirements Planning Data MRP 1 View MRP Procedure: MRP Type: A key that determines whether the material will be planned, and if so, how it will be planned. Planning options include MRP or reorder point. Reorder Point: If the stock falls below this quantity, the system flags the material for requirements planning by creating a planning file entry. The reorder point is important only for reorder point planning. MRP Controller: A unique three-character key that identifies the Materials Planner (i.e. MRP controller) or a group of planners responsible for planning material requirements. Several MRP Controllers keys can be defined for a Plant. A particular material in a plant can be assigned only one MRP Controller key. The same MRP Controller key may be assigned to several materials. The proposed MRP Controller key values are: Materials Planner Role * Key Remarks

Ugar Sugar Plant- MRP Controller USP Sugar Ship- MRP Controller SS Distillery- MRP Controller DIS IML- MRP Controller IML Ugar Cogen- MRP Controller UCO Jewargi Sugar Plant- MRP Controller JSP Jewargi Cogen- MRP Controller JCO NOTE: One MRP Controller Key may correspond to an individual or group of planners. Also a particular planner may be assigned several MRP Controller keys. Assignment of the keys to planners will be based on workload and responsibilities. If you want you could differentiate Purchasing and Production controllers by defining different MRP controllers.

Lot-size Data: Lot Size: A key that specifies the lot-sizing procedure the system uses during MRP to calculate the quantity to be produced or procured. For USWL the following static and period lot-sizing procedures will be used: Lot-for-lot order quantity (EX) - the proposed lot size will be exactly the same as the net requirement quantity Proposed values (options) for Material Type and Lot Size keys for all Plants for the purpose of Production & Planning are:

Material Type

MRP Type Description

Finished Material PD Semi finished PD Raw Materials (Direct) PD, ND or VB Indirect Materials e.g. VB Manual Reorder PointFX Consumables, Spares Planning (Consumption etc. Based Planning)

Lot keys FX, EX FX, EX FX, EX

Size

NOTE: For a complete list of Material Types proposed for USWL, please refer to Materials Management modules Business Blueprint. The other fields that may be specified based on the selection of MRP Type & Lot-size keys are: Minimum lot size: Minimum procurement quantity Maximum lot size: Quantity that is not allowed to be exceeded during procurement. Fixed lot size: If the amount of the shortage is less than the fixed lot size, it is the fixed lot size that is ordered or produced (and not the lesser quantity that is actually required). If the amount of the shortage is greater than the fixed lot size, a multiple of the fixed lot size is procured. The system creates several purchase order proposals for this purpose. Maximum stock level: Quantity of the material in a plant that may not be exceeded.

Assembly scrap (%): Percentage scrap that occurs during production of the material if the material is an assembly (finished/ semi finished product). The assembly scrap is used in materials planning to calculate the lot size of the assembly. The system increases the quantity to be produced by the scrap quantity calculated. MRP 2 View Procurement Data: Procurement Type: An alphanumeric key that signifies how the material is procured either in-house (E), externally (F), or both in-house and externally (X). Default procurement types keys proposed per material type are: Finished Materials E Semi-finished E or X Raw Materials F Special Procurement Type: Allows you to define the procurement type more exactly. The following special procurement types are proposed to be defined for the purpose of Production Planning: Spl. Proc. Description Type 40 Stock Transfer Alternate plant 41 Stock Transfer Alternate plant Remarks from Material transfer between the plants in Ugar & Jewargi (same premises). from Material transfer between the plants in Ugar & Jewargi (same premises).

Production Storage Location: Issue Storage Location - If the material is a component, it is the issuing storage location to which a backflush is posted. If the material is produced, it is the receiving storage location to which the receipt of the material is posted.

Scheduling Data: In-house Production Time: Number of days required to produce the material in-house, independent of lot size. Planned Delivery Time: Number of calendar days needed to obtain the material or service if it is procured externally. Scheduling Margin Key: A numeric key that determines the floats and opening period required for scheduling an order. Net Requirements Calculation Data: Safety Stock: The quantity of stock to satisfy unexpectedly high requirements in the stocking-up period. The purpose of the safety stock is to prevent material shortage. Safety stock is not used in production. MRP 3 View Planning Data: Strategy Group: The strategy group groups all the planning strategies that can be used for a particular material. The planning strategy represents the procedure used for planning a material and is (technically speaking) controlled by the MRP types. Consumption Mode: The consumption mode controls the direction on the time axis in which the system consumes requirements. In backward consumption, sales orders, dependent requirements or material reservations consume planned independent requirements that lie before the requirements date. In forward consumption, sales orders, dependent requirements, or material reservations consume planned independent requirements that lie after the requirements date. Backward Consumption Period: Determines the consumption period (in workdays) for backward consumption. Forward Consumption Period: Determines the consumption period (in workdays) for forward consumption.

Availability Check:

Availability Check: A key that specifies if and how the system checks availability and generates requirements for MRP. Material Type Finished/Semi-finished Material (Make-to-Stock) Finished/Semi-finished Material (Make-to-Order) Raw Material Consumables/Spares MRP 4 View BOM Explosion / Dependent Requirements Processing Data: Component scrap (%): Percentage of scrap that occurs during production of the material if the material is a component. Component scrap is used in material requirements planning (MRP) to determine the quantities of components required. When exploding the Bill of material (BOM), the system increases the required quantities of the components by the calculated scrap quantity. Individual/coll.: Indicator determining whether the following requirements are allowed for the dependent requirements of the material: Individual requirements - Requirement quantities of the dependent material are stated and planned individually Collective requirements - Requirement quantities of the dependent material are grouped together If no value is specified, the system follows the following defaults: Individual in case of make-to-order scenario for parent Collective in case of make-to-stock scenario for parent Strategy Group 40 Consumption Mode Backward Forward, Strategy used. Availability Check & 02 if is 02 NA NA 02 02

40

20 NA NA

Repetitive Manufacturing Data: Repetitive mfg.: (indicator) authorizes manufacturing. REM Profile: (four character key) Repetitive via order type, whether you are working manufacturing, based on sales orders, or manufacturing, based on no specific orders. Work Scheduling Data General Data: Production scheduler: Scheduler responsible for a material in production activity control. Batch management: (requirement indicator) specifies whether the material is managed in batches. FSBP Link:
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the

material

for

repetitive

manufacturing profile controls, with make-to-order repetitive with make-to-stock repetitive

3.2 Bill of Materials

DEFINITION A Formally structured list of the components that make up a product or semi finished product. The list contains the object number of each component, together with the quantity and unit of measure.

3.2.1 Purpose
Materials BOM are used in their different forms in various situations where a finished product is manufactured/ produced from several component parts or materials. Depending on the industry sector, they may also be called recipes, charge-mix or lists of ingredients. They contain important basic data for numerous areas of a company, for example: MRP Material provisions for production Product costing The data stored in Bills of material serves as a basis for production planning activities such as: A material requirements planning function (e.g. unit / location purchase and manufacturing) explodes Bills of material on a certain date to calculate cost-effective order quantities for materials. A production function (e.g. manufacturing module in a unit, department in charge) uses Bills of material o As a basis for operation planning and production control. o To plan or withdraw the provision of materials on the shopfloor based on the days production. The data stored in Bills of material can also be used in other activities in a company such as: Reservation and goods issue - as an aid to data entry Product costing - to calculate the costs of materials required for a specific product Sales orders - as an aid to data entry.

3.2.2 Structure, Key Data & Proposals for USWL

BOM data is structured as follows in the SAP R/3 System: The BOM header contains data that applies to the entire BOM (e.g. BOM usage, Technical Type, Plant, BOM group no., Validity period, base quantity, BOM status active / inactive) The BOM Items Overview contains a list of all the BOM items (single level). BOM item details screen contains data that only applies to a specific component of the BOM Some of the key data contained in a BOM is: At the BOM header level, BOM effectivity: In standard SAP, validity areas and periods are used to define the precise conditions under which a Bill of material is valid in different usage areas (like Production, Engineering) of a company. Validity Area: refers to the organizational level at which a BOM is applicable. The area of validity can be: Plant specific BOM for MRP, production scheduling etc. Validity Period: is the time during which the BOM header or BOM item is valid.

Technical Type: This is used to classify BOM in case more than one BOM exist for a material or if there are several almost identical BOM for different products (variants). The R/3 System supports two technical types of BOM to represent similar product variants and production alternatives: Multiple BOM a multiple BOM groups together several BOM that describe one object (for example, a product) with different combinations of materials for different processing methods. Variant BOM a variant BOM groups together several BOM that describe different objects (for example, products) with a high proportion of identical parts. A variant BOM describes the specific product variant for each product, with all its components and assemblies. In USWL, Multiple BOM will be used to represent production alternatives. BOM Usage: The BOM usage allows you to maintain BOM for specific sections of your company. In the case of USWL the following usage is proposed: 1 (Production): BOM for Production Planning, Costing etc. The BOM Items Overview contains the data that has to be specified for all item categories e.g. Item no. Item category Material no. and other related data (e.g. material description, unit of measure that are picked up by the system from the material master) Quantity BOM item details screen include, Relevance for costing Alternative items group MRP data (e.g. lead time offsets, special procurement type) Provision indicator (e.g. customer provided / to be provided to subcontractor) Variable-size item data Document assignments (DMS is activated) FSBP Link:
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3.3 Work Center

DEFINITION Operations are carried out at a work center. In the SAP R/3 System work centers are business objects that can represent the following real work centers, for example: Machines, machine groups Production / Assembly lines Work stations on a production line Employees, groups of employees

3.3.1 Purpose
Together with Bills of material and routings (discussed in next section), work centers belong to the most important master data in the SAP R/3 production planning and control system. Work centers are used in task list operations and work orders. Task lists are for example routings, maintenance task lists and inspection plans. Work orders are created for production, quality assurance, and plant maintenance. Data in work centers is used for the following functions in Production & Planning:

Capacity planning the available capacity and formulas for calculating capacity requirements are entered in the work center. Scheduling formulas for calculating lead times for setup, processing, teardown (dismantling setup) are entered in the work center, so that the duration of an operation can be calculated. Costing formulas are entered in the work center, so that the costs of an operation can be calculated. A work center is also assigned to a cost center. Data in work center is also used for simplifying operation maintenance Various default values (default Unit of measures for parameters) for operations can be entered in the work center. These values can be copied into routings while creating / changing them.

3.3.2 Structure, Key Data & Proposals for USWL

A work center is created for a plant and is identified by a key (unique code). The work center category, determines which data can be maintained in the work center. The following work center category is proposed for USWL: Work Center Description Work center in Production Line Work Center Category 0007

The data is grouped thematically together in screens and screen groups. Examples of such screen or screen groups are: Basic Data Default values Capacities Scheduling Costing In the Basic data screen you enter various data, such as, the Work Center Description Person responsible Task-list usage: a key to specify the task-lists (e.g. routings, rate routings, inspection plans etc.) for which the work center may be used. Standard Value Key: a four-character key used to specify the standard value parameters (like processing time, setup time) used to depict the operation for capacity requirements and lead time calculations.

In the Default Values tab page, default values are specified which are then copied when you assign the work center to the operation in a routing. In case of USWL the relevant default values parameters are: Control Key: a four-character key used to specify the standard value parameters used to depict the operation for capacity requirements and lead time calculations Default Units of Measure: for the standard value parameters In the Capacities tab page the capacity data for up to two different capacities associated with the work center are specified. This data includes: Capacity Category: a three number key that specifies the nature of capacity e.g. a machine or labor capacity Formula keys for formulae for computing the planned capacity requirements. For each capacity category, the available capacity can be specified in a capacity details screen. Besides available capacity, for each capacity category the following additional planning data may be specified:

Whether capacity is relevant for finite scheduling? Overload %: Entry you use to control the percentage by which the load may exceed available capacity, during finite scheduling? Whether it can be used for several operations? Whether the capacity may be used in Long Term Planning?

In the Scheduling tab page you can enter the following scheduling data in work centers: Scheduling basis: The scheduling basis is a capacity (machine / labor) whose operating time is to be used for scheduling orders. Formula: You use formulae to calculate the execution times of operations in production orders using standard values Dimension and units of measure for internal processing operations

In the Costing tab page, you have to enter data for costing, if you want to cost the activities performed at the work center. You enter the following data: The cost center and the validity period For every standard value a formula key and an activity type. The system calculates the activity quantities from the formulae and the standard values. CO Controlling can then evaluate these using the activity prices. Processing costs for a product produced at the work center can be settled to the product. FSBP Link:
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3.4 Routing
DEFINITION A routing is a description of which operations (process steps) have to be carried out and in which order to produce a material (product). In a routing you specify, The operations (work steps) to be carried out during production Standard values for the execution of individual operations i.e. the activities to be performed in the operations as a basis for scheduling, capacity requirements and costs The work centers used (optional) The component materials required at an operation (optional) In the SAP R/3 System, routings have the same basic structure as Inspection plans, Maintenance plans etc. Therefore, routings are cumulated with such objects under the super ordinate term Task list.

3.4.1 Purpose
A routing is used as a source for creating in-house procurement proposal (by copying) as well as a basis for product costing. The types of Routings that may be defined in SAP R/3 are: Routing (a.k.a. standard routing): Routings are used in production orders for a material. Besides a standard sequence, a routing can also have parallel and alternative sequences. Rate routing: A routing for whose operations the production quantity and a fixed duration has been defined. Thus the production rate is also defined. Rate routings are used when you plan on a quantity basis, for example in repetitive manufacturing. A rate routing can have only parallel sequences. Reference operation set: A type of routing that comprises of a series of operations that recur frequently. It is used to create a routing. You cannot assign a material to be produced to a reference operation set. It can have neither parallel nor alternative sequences. It cannot be used directly in production.

Reference rate routing: Similar to a reference operation set. It is used to create a rate routing.

3.4.2 Structure, Key Data & Proposals for USWL

A routing is composed of a header and one or more sequences. A routing group comprises of one or more routings. A particular routing is identified by its group and group counter. Routing data is organized in a header and several overview and detail screens. The header contains data that is valid for the whole routing. For instance, information about The status and use of the routing General parameters for quality checks during production The validity period You can call up the following information from the header: Details about assignments of material component to the routing. That is, about the materials those are produced by the routing. A long text for a more detailed description of the routing The sequence overview contains, for instance, The sequences, which are a group of process steps in a routing. The sequence category, whether the sequence is a standard sequence, a parallel sequence or an alternative sequence. The operation overview is the central screen for routing maintenance. From here you can branch to the header, the detail screens for operations as well as other overviews for routings. The operation overview contains, for instance, Operations which describe the process steps in the routing The work center where they are carried out A short description of the process step

On the detail screens for operations you can find data that is relevant to individual operations such as, Details about external processing or personnel qualifications Standard values and other information for scheduling Parameters for quality checks during production Further overview screens exist for the assignments and assignments to each operation. An overview is presented of the following objects that are relevant for a process step: Material components Work centers Production Resources/Tools Inspection characteristics The additional information for each assignment or assignment is contained on the relevant detail screen. This could be scheduling data for work centers or control indicators for inspection characteristics. In the implementation for USWL, Repetitive Manufacturing & Discrete Manufacturing is recommended for USWL. Rate Routings will be used for Repetitive Manufacturing scenarios including Sugar, Cogen, Distillery, IML, SSP, and Routing will be used for Discrete Manufacturing MTO scenario including Sugar ship & Distillerys products handled through MTO scenario. Alternate Rate Routings or Routings wherever needed can be maintained.
FSBP Link:
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3.5 Repetitive Manufacturi ng Profile

DEFINITION A collection of data that specifies the repetitive manufacturing functions applicable to a particular material in a plant.

3.5.1 Purpose
It determines the variant of repetitive manufacturing for a certain material, as also planning and backflushing functions during repetitive manufacturing. The repetitive manufacturing profile is a mandatory prerequisite for repetitive manufacturing.

3.5.2 Structure, Key Data & Proposals for USWL

The repetitive manufacturing profile is defined in Customizing for Repetitive Manufacturing and assigned a material in the MRP data of the material master record. Using the control parameters for profile, you define the following, for example: Whether you want to backflush activities. Whether you want to work with reporting points in make-to-stock or make- to- order REM. How you want to process (i.e. correct) errors which occur when back flushing. In the implementation for USWL, the following backflush are proposed: Assembly (finish/ semi finished product), component (raw materials/ semi finished product) and Activity backflush Individual & Collective processing of backflush errors
FSBP Link:
FS P0 _PP_M B 05 aster D M ten c ata ain an e

3.6 Production Versions

DEFINITION The production version determines the different production techniques that can be used to manufacture a material.

3.6.1 Purpose
A material may have several Bills of material (BOM) that determine the components used in its production. The production process can also be described in various routings (rate routings). Data on the different methods or techniques used to produce the material is recorded in production versions that are assigned to the material. Production versions allow you to cater for different situations: Production using different resources (for example two different production lines). Production using different processes or procedures (for example, different rate routings). Production of the same product using different BOM Individual production quantities can be assigned to the different production versions, in order, for example, to achieve a balanced utilization of the various alternative production lines. This can be done by the user on an interactive basis, or automatically within the framework of the planning run.

3.6.2 Structure, Key Data & Proposals for USWL

A production version defines the following data, for example: Alternative BOM and BOM usage for BOM explosion. Task list type, group, and group counter for allocation to routings. Lot-size restrictions and period of validity. Production line on which production is carried out. Receiving storage location - this is the storage location to which the manufactured product is posted at goods receipt (to location). Proposal issue storage location - this is the storage location from which the components required are withdrawn and which is proposed when backflushing. A material can have one or more production versions. Data relating to individual production versions is located at plant level. You are free to define production version numbers as you see fit; however, each number must be uniquely identifiable. In the implementation for USWL, production versions will be defined for each combination of a BOM and routing/rate routing for a material, in the repetitive manufacturing scenario. This will also enable line-wise reporting and computation of planned and actual costs of production for a product produced through more than one line. FSBP Link:
FS P0 _PP_M B 05 aster D M ten c ata ain an e

3.7 Product Cost Collector

DEFINITION A Product Cost Collector is a cost object in the Product Cost by Period component that collects the actual costs incurred in each period for the production of a material. When you use a product cost collector, the product becomes the main cost object.

3.7.1 Purpose
Products cost collectors can be used to collect actual costs in several production environments.

3.7.2 Structure, Key Data & Proposals for USWL

Information on the product cost collector is located under the following tabs: Data: The Data tab shows the control parameters for the selected product cost collectors, such as the costing variants, results analysis keys, and variance keys. Head: The Header tab contains information on the product cost collector such as material, company code, order type, and status Production process: The Production process tab shows the name and number of the production process, the costing lot size, and other information. Products cost collectors are independent of the production type. In the implementation for USWL, they will be used in the Repetitive Manufacturing scenario. You can create a product cost collector for a material, plant and production process. The production process is defined in accordance with a Controlling level. When you create a product cost collector, you specify which Controlling level you want to assign to a material. In the repetitive manufacturing scenario of USWL, the controlling level Production Version will be used.

The proposals for the control parameters in the case of USWL will be addressed in the Controlling (CO) module. (NOTE: In Product Cost Controlling, the Controlling level enables you to determine the level at which you perform the following functions for a material: Calculate planned values Collect actual values Determine target values Analyze costs A material has a separate Controlling level for each plant and process category. Through various characteristics, the Controlling level determines the level of detail of the procurement alternatives. The standard setting of the Controlling level is determined by the characteristics Material and Plant. For example, if the Controlling level is Production Version, the Controlling level can be represented in more detail by means of the additional characteristic Production Version.) FSBP Link:
FS P0 _PP_M B 05 aster D M ten c ata ain an e

4 BUSINESS PROCESSES
4.1 Demand Managemen t
DEFINITIONS Demand Management Planning of requirement quantities and requirement dates for finished products or semi finished products, and definition of the strategy for planning and producing or procuring a particular finished product. Planned Independent Requirement (PIR) Planned Independent Requirements are the planned requirement quantities for a (generally saleable) finished product or semi finished products over a given period of time. They are derived from an estimate or forecast of market demand and are not based on actual sales orders. Customer Requirements (CR) Customer Requirements represent firm customer schedules. They are created in sales order management. Planning Strategy Planning strategies represent the business procedures for the planning of production quantities and dates. A planning strategy defines how planned independent requirements (if any) are adjusted against customer requirements / goods receipts into plant stocks from production / goods issue for deliveries to customers, to determine the total requirements.

4.1.1 Purpose
The function of Demand Management is to determine a demand program i.e. requirement quantities and delivery dates for (generally saleable) finished products or important assemblies, based on a planning strategy. Demand Management uses planned independent requirements and customer requirements to calculate the total requirement quantities and dates.

4.1.2 Master Data

Master data needed for demand management is maintained in the Material Master: Planning Strategy Group Consumption Mode Forward and / or Backward consumption period Availability Checking Group (requirement depends upon strategy) The following master data relevant to demand management that should be maintained in MRP views of options are proposed for demand management at USWL: Material Type Finished Material (Make-to-Stock) Strategy Group 40 Consumption Mode If Strate gy 40 is used, Forwa rd & Back ward. NA Availability Check 02

Finished Material (Make-to-Order) Semi-finished (saleable only)

20 40

02

If 02 Strate gy 40 is used, Forwa rd &

Back ward. Raw Material Consumables/Spares etc. NA NA NA NA 02 02

4.1.3 Features w.r.t. USWL

In USWL, the Make-to-Stock strategy Planning with Final Assembly (40) is recommended based on the following considerations: Production is generally planned against monthly Plan for the saleable finished and semi finished products, provided by the marketing department especially in case of IML brands. Plan is regularly updated based on actual customer orders / schedules and manufacturing facilities are agile enough to adjust production levels based on changes in demand. Production costs are settled to the saleable product account and not to specific customer orders. Product is sold from a common stock of the product i.e. a customer order specific stock is not created. The above scenario and planning strategy is applicable to saleable finished standard products. Demand Program Maintenance In the USWL business, planned independent requirements are proposed to be entered by Planner. This will be later consumed by incoming sale orders if you maintain planning strategy as 40 for the planning material. Production will take place only after firm schedules / orders are received from customers i.e. there are only customer requirements and no planned independent requirements. In such cases a Make-to-Order strategy (20) is envisaged. This is mainly to be proposed for Sugar Ship production. FSBP Link:
FS P0 _PP_D an B 01 em dM anag ent em

4.2 Materials Requiremen ts Planning

DEFINITION Materials Requirement Planning (MRP) is a generic term for procedures in requirements planning that take into account and plan every future requirement during the creation of order proposals (independent requirements, dependent requirements, and so on).

4.2.1 Purpose
The main function of material requirements planning (MRP) is to guarantee material availability, that is, it is used to procure or produce the requirement quantities on time both for internal purposes and for sales and distribution. This process involves the monitoring of stocks and, in particular, the automatic creation of procurement proposals for purchasing and production. In doing so, MRP tries to strike the best balance possible between optimizing the service level by ensuring material availability, and minimizing costs and capital lockup by reducing inventory MRP assists materials responsibility. planners (MRP controllers) in their area of

MRP takes into account all the information on stocks, stock reservations, and stocks on order to calculate quantities, and also needs information on lead times and procurement times to calculate dates. The MRP controller defines a suitable MRP and lot-sizing procedure for each material to determine procurement proposals.

4.2.2 Master Data

Further master data, which can only be maintained in Customizing for MRP and is specified through keys in the Material Master / BOM, includes: MRP type lot-sizing procedure MRP controller key The master data requirements for MRP are further elaborated in the section on Material Master.

4.2.3 Features w.r.t. USWL

At USWL, all direct and indirect materials will be planned using deterministic or consumption-based MRP procedures. In Sugar (white/raw) plant, Cogen, Distillery, SSP MRP will only be executed for Re-ordered materials as per delivery re-order point set for all that materials in their material master record. For details refer to MM Blue print. For each cost center one work center in Sugar plant has to be created and to make confirmation separate material code with Semi finished material type have to be created. All that semi finished products including packed sugar with various grades, in different packing will not be considered for planning. For IML plant brands separate material codes have to be created. Based on the monthly forecasted requirement from Marketing Planned Independent Requirements have to be created that will be considered for Production using Repetitive Manufacturing. For Sugar Ship plant make-to-order strategy will be followed. In the proposed scenario for USWL, MRP will be executed periodically for all direct materials in the plant (total planning). FSBP Link:
FS P0 2 B 0 _PP_M ateria l Req irem t Plan in u en n g

4.3 Master Planning in Repetitive Manufacturi ng

DEFINITION Master Plan in repetitive manufacturing is a material / production line / production version-wise production plan for in-house produced items, using the repetitive manufacturing (REM) Planning Table.

4.3.1 Purpose
You use this component to create the master plan for Repetitive Manufacturing. The planning table provides you with the support you require for planning in the form of, access to the planning table through the line / material overview material stock / requirements situation at a glance, and Line-wise capacity availability & requirements situation at a glance.

4.3.2

Master Data

Most of the master data for Master Planning is the same as that MRP. The following additional master data is specified: The repetitive manufacturing profile is set in Customizing for repetitive manufacturing and is entered in the material master record. You must also authorize the material for repetitive manufacturing in the material master record. You create the production version in the material master record. If you want to use a production line for planning purposes, you must create one and enter it in the material master record. If you want to plan capacity, you must create a routing and enter it in the production version. You create a product cost collector for creating production costs.

4.3.3

Features w.r.t. USWL

Planning table with the capacity planning table is proposed for USWL if you work with lead-time scheduling and you want to plan capacities, you use the planning table with the capacity-planning table. To do this, you must create a production line and a rate routing. All planners (MRP controllers) responsible for day-to-day planning will use the REM Planning Table as their primary interface for Production Scheduling. In sugar, cogen, distillery, SSP plants there is no capacity planning because, in routing there is no production planning; only production execution is there. FSBP Link:

FS P0 3 B 0 _PP_Repetit ive M aster Plan in n g

4.4 Repetitive Manufacturi ng Execution & Booking 4.4.1 Purpose

The goals of repetitive manufacturing are as follows: Creation and revision of production quantities on a period and quantity basis as in a mass production scenario. Reduction in the production control effort with simpler backflushing tools.

4.4.2 Master Data

The master data required for repetitive manufacturing execution are the same as in the case of Master Planning for repetitive manufacturing.

4.4.3 Features w.r.t. USWL

In all plants of USWL Repetitive Manufacturing will be executed. The Backflush will be done every stage wise. At each stage there will be material code with respective Product Cost collector. FSBP Link:
FS P0 4 B 0 _PP_Repetit ive O er Exec tion rd u

4.5 Post processing Backflush Errors 4.5.1 Purpose

Errors may occur when the system is saving the data in the backflushing transaction. It is possible that the logical stock level is insufficient at the time of the withdrawal posting. Or, errors occurred in the master data if, for example, the system could not determine a storage location. Such errors can be processed using Post processing transaction.

4.5.2 Master Data

In the repetitive manufacturing profile, you must specify how the system is to proceed when errors occur for withdrawal postings in backflushing. You must set the repetitive manufacturing profile so that error logs are created.

4.5.3 Features w.r.t USWL:

In all plants of USWL, errors that have occurred after Back Flush have to be cleared daily. For Example:

Error may be occur if correct Storage Location is not maintained or entered due to which Good Issue cannot take Place. Error may occur due to Material shortage in respective storage location.

FSBP Link:
FS P0 4 B 0 _PP_Repetit ive O er Exec tion rd u

4.6 Discrete Manufacturi ng Production Orders 4.6.1 Purpose

Production orders are a fundamental part of Production Planning and Control. PP is fully integrated in the Logistics component and has, among others, interfaces to Sales and Distribution (SD) Materials Management (MM) Controlling (CO)

Production order consists details like: What is to be produced? When production is to take place? Which capacity is to process the order? How much does production costs?

4.6.2 Master Data

Maintain Material Master with work Scheduling View. Order Types are to be defined. Production Schedulers has to be maintained. Maintaining of BOM, Routing.

4.6.3 Features w.r.t. USWL

Production orders are applicable in USWLs Sugar Ship (1002) & Distillary (1003) plant for Discrete Manufacturing only for MTO scenario. In the case of Customer specific requirement (MTO scenario) for Product, Production Order has to be created with respect to Sales Order followed by Single Item-Multi Level (MRP) run.

4.7 Discrete Manufacturi ng - Goods Issue for Production 4.7.1 Purpose

When you create a production order, the system automatically generates a reservation for the required material components. Each material component of the order receives a separate item number within the reservation. You can only withdraw the reserved materials from the warehouse if the operation to which the materials are assigned in the order has already been released.

4.7.2 Master Data

Respective BOM has to be Created Respective Routing has to be maintained.

4.7.3 Features w.r.t. USWL

Goods issue will be done prior to confirmation of the Production order.

4.8 Discrete Manufacturi ng - Order Confirmatio n

4.8.1 Purpose
A confirmation documents the processing status of orders, operations. It is an instrument for controlling orders. With a confirmation you specify, The quantity in an operation that was produced as yield, scrap and the quantity to be reworked? How much work was actually done? Which work center was used for the operation? Who carried out the operation? Exact confirmation soon after completion of an operation is essential for realistic production planning and control. You can enter confirmations for An order An operation

4.8.2 Master Data

Confirmation Parameter are to be defined

4.8.3 Features w.r.t. USWL

In USWL, Confirmation can be done at Header Level of Production Order or Confirmation Operation wise has to be done.

4.9 Goods Receipt from Production 4.9.1 Purpose

The Goods Receipt for a Production order is done because this is declaring the Production of finished goods or semi-finished goods. By this the Inventory is get updated. Goods movements can be created with a confirmation:

Backflush If you confirm an order / operation with components that have the Backflushing indicator set, the system automatically posts a goods issue for these components. For more information about the Backflushing indicator, refer to the end of this section. Automatic Goods Receipt If the control key of the operation being confirmed specifies automatic goods receipt, the system automatically posts the produced material to stock. Automatic goods receipt can also be activated by the production scheduling profile. For more information refer to Automatic Goods Receipt. Manual good Receipt: By this, control can be kept on declaring the Production.

4.9.2 Master Data

Maintain Control Key for Auto GR For manual GR Storage location has to be maintained For Backflush in routing activation has to be done

4.9.3 Features w.r.t. USWL

In USWL, for Discrete Manufacturing Automatic GR and Backflush is activated through customization.

4.10 Discrete Manufacturi ng - Order Settlement 4.10.1 Purpose

When a production order is settled, the actual costs incurred for the order are settled to one or more receiver cost-objects (for example, to the account for the material produced or to a sales order). Offsetting entries are generated automatically to credit the production order: If the costs for the production order are settled to a material account, the order is credited each time material is delivered to stock. The material stock account is debited accordingly.

If the costs for the production order are settled to another receiver (for example to a sales order), the order is credited automatically at the time of settlement. The cost-objects are debited accordingly.

The debit posting remains in the order and can be displayed even after the costs have been settled. The settled costs are updated in the corresponding receiver cost-object and can be displayed in reporting.

4.10.2Master Data
Pre-requisite: All Production Orders are to be technically closed.

4.10.3 Features w.r.t. BFW

In USWL SS Plant (1002) & Distillary Plant (1003), Production orders are to be technically closed after Sales order completion. And after that Settlement of the Orders will be carried out.

Important Note: In case of Discrete Manufacturing, Settlement rule is automatically created by system and cost is settled on Material only.

4.11 Batch Managemen t 4.11.1 Purpose

The structure of the material master record allows you to manage stocks of a material by value at plant level or company-code level and by quantity down to storage-location level. Under certain conditions, you may need to make further subdivisions for a material and manage batches. Certain materials features cannot always be guaranteed to be exactly alike in production. For example, you cannot guarantee that a certain color will always have the same shade. Minor differences between production lots

cannot be avoided. You need to be able to uniquely identify the individual production lots of the same material and manage them separately in inventory. Materials that require such precise identification, for example pharmaceutical products, are identified and managed in stock not only according to material number, but also according to batch number. With batch handling, you can manage not only production lots from in-house production, but also production lots from vendors as separate entities. It is possible to supplement standard batch management.

4.11.2 Master Data

Below are the ways to define Batch

Material handled in Batches

Before you can manage batches of a material in stock, you must first specify in the material master record that the material is to be managed in batches for the specified plant. To do this, you must set the batch management requirement indicator in the material master record You can define number assignment for batches at various levels: Uniquely at client level for a material Uniquely at material level Uniquely at plant level

4.11.3 Features w.r.t. USWL

Batch management is recommended for IML brands. As the same batch no. for blended vat/ mass (semi finished product) must be maintained for packed cases of IML brands. The external no. batch assignment is recommended. Note: Activate the Batch management in SAP, wherever it is possible to maintain the stock batch wise. In Sugar ship plant the raw materials like Refined Sugar and Glucose are kept in stock with batch no.

5 MODULE INTEGRATION
The Production Planning and Control module is fully integrated with other modules of SAP R/3. The continuous exchange of information with other application areas in the R/3 System ensures a real time database. Fully integrated processing helps us to optimize Production Planning and Execution within the company.

5.1 Materials Management (MM)

The broad level integration with MM module is, Material Master Inventory Management Procurement of materials Manual Re-order point planning For example, during PP business processes integration with MM module will be during Good Issues or say Good Withdrawal of raw materials for production from a particular storage location. At that time the inventory for the raw material at the respective storage location will be reduced in terms of Stock as well as Value.

5.2 Sales & Distribution (SD)

The broad level integration with SD module is for, Transfer of requirements through MRP Entry of PIR (Saleable Material Requirement)

5.3 Finance / Controlling (FI & CO)

The broad level integration with FI & CO module is Order costing Order settlement For example, On every Goods issue and Goods receipt an accounting document is generated which book the cost of any type of element to respective Production order, Product Cost Collector or Purchase Order.

During Production Booking the Activities (Overheads or indirect cost) are settle to respective Product Cost Collector.

5.4 Quality Management (QM)

The broad level integration with QM module is for, An inspection lot (for in-process inspection) can be automatically created when a Repetitive Manufacturing backflush will be done.

Thus, in-process inspection can be done during Repetitive Manufacturing Execution or finished good from production can be directly posted into quality inspection stocks. SAP-PP Process Flow with Integration across Modules:

Pur reqs for External Procurement In-House Production Execution

Procurement proposal

QM Quality

Storage

Loc

Demand Management

MRP

MM LE Stock Control)

MM LE (Stock Control)

FI CO (Cost Control)

QM (Quality Control)

6STANDARD INFORMATION SYSTEM

Standard Information Systems for Repetitive Manufacturing is as below: Common Standard Information Systems:

Current Stock / Requirement List MD04 / MD07 This gives you the current situation information mostly used after MRP Run.

MRP List- MD05 This gives information for the last MRP Run.

Stock Overview MMBE This gives you the current available stock in Unrestricted Use (Saleable Stock), Quality Stock, Blocked Stock.

Material Document List-MB51 This gives details about material movements with respect to any application like Production, Purchase order, Sales etc

GR Stastics-MCP6 This report gives the details for daily production.

Material Consumption-MCRE This report gives the information regarding Material Consumption during Production.

Shop Floor Information System- COOIS This report is dynamic report and material consumption, production, capacity utilization etc. can be sorted using various selection profiles and selection criteria. This is useful for those materials handled through Discrete manufacturing (MTO scenario in USWL case).

7GAPS
Refer the attached Gaps document for details.

Gap Tracker