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Materials Management
Production Planning
Financial Accounting
Controlling
Human Capital Management
Warehouse Management
Project System
SAP ERP Functionality
PP Organizational Structure
PP Master Data
PP Processes
- Material Planning
- Production Planning
- Manufacturing Execution Process
Pag 6-4
SAP ERP PP Organizational Structure
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 (in SAP system master data)
- 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 machines, people, production lines or groups of craftsmen
Page 6-5
SAP ERP Global Bike Structure for Production Planning
Company
Global Bike Inc. Global Bike Germany GmbH Code
Miscellaneous Miscellaneous
Assembly Assembly
Inspection Inspection
Page 6-6
SAP ERP GBI Enterprise Structure in SAP ERP (Logistics)
Client GBI
Page 6-7
SAP ERP PP Master Data
Material
Bill of Materials (BOM)
Routing
Work Center
Product Group
Data Model PP
Page 6-8
SAP ERP Material Master Record
Business Vocabulary PP
Page 6-10
SAP ERP Bill of Materials (BOM)
Single-Level Single-
Level
Finished Bike
Frame Chain
Derailleur Gear
Brake Kit
Assembly
Seat Kit Warranty Doc.
Page 6-11
SAP ERP Bill of Materials (BOM)
Finished Bike
Single-Level
Wheel Frame Derailleur Seat Handle Bar Pedal Chain Brake Doc. Pack.
Tire
Tube
Wheel
Hex nut
Lock
Bolt
Multi-Level
Page 6-12
SAP ERP Bill of Materials (BOM)
Page 6-13
SAP ERP BOM Item Categories
Item Categories
- Stock Item
- Non-stock Item
- Variable Material Sheet of steel
- Intra Item Phantom material process industry
- Class Item place holder
- Document Item
- Text Item
Business Vocabulary PP
Page 6-14
SAP ERP Routing
Page 6-15
SAP ERP Routing
Routing Operation 20
- Attach seat to frame
Work Center ASSY1000
- Assembly Work Center
Time
- 1 minute
Page 6-16
SAP ERP Routing
Page 6-17
SAP ERP Work Center
Page 6-18
SAP ERP Work Center
Work centers capture and use the following Resource Related data
- Basic Data
Person Responsible, Location of Work Center
- Scheduling Information
Queues and Move Times (interoperation), Formula Keys
- Costing Data
Cost Center, Activity Types
- Personnel Data
People, Positions, Qualifications
- Capacity Planning
Available Capacity, Formulas, Operating Time
- Default Data
Control Key, Standard Text Key
Page 6-19
SAP ERP Product Group
Business Vocabulary PP
Page 6-20
SAP ERP Material Planning
4,000,000
3,500,000
3,000,000
Unit
2,500,000 Sales
2,000,000 Production
1,500,000 Inventory
1,000,000
500,000
0
Page 6-21
SAP ERP PP Processes
Page 6-22
SAP ERP Production Planning & Execution
SI Forecasting CO/PA
S
Demand
Management
Detailed Planning
MPS
MRP
Manufacturin Procurement
g Process
Execution
Order
Settlement Data Model PP
Manufacturing Execution
Page 6-23
SAP ERP Production Planning & Execution
Manufacturing Procurement
Execution Process
Order Manufacturing
Organization Chart GBI US Settlement Execution
Page 6-24
SAP ERP Forecasting
Page 6-25
SAP ERP Forecasting
Forecasting Models
- Trend
- Seasonal
- Trend and Seasonal
- Constant
Selecting a Model
- Automatically
- Manually
Business Vocabulary PP
Page 6-26
SAP ERP Sales and Operations Planning (SOP)
Information Origination
- Sales
- Marketing
- Manufacturing
- Accounting
- Human Resources
- Purchasing
Intra-firm Collaboration
- Institutional Common
Sense
Page 6-27
SAP ERP Sales and Operations Planning (SOP)
Data Model PP
Page 6-28
SAP ERP Demand Management
Business Vocabulary PP
Data Model PP
Page 6-29
SAP ERP Demand Management
Forecast Sales
Planned Customer
Independent Independent
Requirements Requirements
Demand
Program
MPS / MRP
Page 6-30
SAP ERP Planning Strategies
Page 6-31
SAP ERP Planning Strategy for Make-to-Stock
Page 6-32
SAP ERP Planning Strategy for Make-to-Order
Page 6-33
SAP ERP Master Production Scheduling (MPS)
Page 6-34
SAP ERP Material Requirement Planning (MRP)
Business Vocabulary PP
Page 6-35
SAP ERP Demand-Independent vs. Dependent
Business Vocabulary PP
Page 6-36
SAP ERP Material Requirement Planning (MRP)
Data Model PP
Page 6-37
SAP ERP Net Requirements
Procurement
Shortage
Proposal
Stock
Safety Stock
Business Vocabulary PP
Page 6-38
SAP ERP Lot sizing
Static
- Based on fixed values in the Material Master
Periodic
- Groups net requirements together from multiple periods
Optimum
- Calculates the optimum lot size for a several periods of net
requirements
Business Vocabulary PP
Page 6-39
SAP ERP Procurement Type
External Procurement
- Purchase Requisition
- Purchase Order
- Schedule Line
Internal Procurement
- Planned Order
- Production Order
- Process Order
Business Vocabulary PP
Page 6-40
SAP ERP Multi-Level Scheduling
Requirements
Planned Order Date
Purchase Requisition
Finished Product
Assembly 1
Semi-Finished Good
Raw Material
Component
Business Vocabulary PP
Time
Page 6-41
SAP ERP MRP vs. Consumption-Based
PD MRP VB Reorder-Point
VSD Seasonal MRP VV Forecast Based
RP Replenishment
Business Vocabulary PP
Page 6-42
SAP ERP Consumption-Based
Lot
Size
Reorder
Point
Safety Stock
Replenishment
Lead Time
Page 6-43
SAP ERP Output of MRP
MRP
In-House External
Planned Order
Production Procurement
Convert to
Production Purchase
Orders Requisitions
Data Model PP
Page 6-44
SAP ERP Orders, orders, orders
Page 6-45
SAP ERP Manufacturing Execution Process
Capacit
Production y Schedule
Proposal Plannin and Release
(Planning/Other) g
Shop Floor
Documents
Order
Settlement
Goods
Issue
Goods
Receip Completion
t Confirmation
Page 6-46
SAP ERP Production Order
Page 6-47
SAP ERP Production Order
How
Components
What
How many
Time Line
Page 6-48
SAP ERP Schedule
Page 6-49
SAP ERP Release
Page 6-50
SAP ERP Availability Check
Page 6-51
SAP ERP Schedule & Release
Page 6-52
SAP ERP Shop Floor Documents
Page 6-53
SAP ERP Material Withdrawal
Page 6-54
SAP ERP Confirmations
Page 6-55
SAP ERP Goods Receipt
Document Flow
Page 6-56
SAP ERP Order Settlement
Settlement Rule
- Automatically assigned on creation of order, the parameters are used
to define this rule
Has one or more distribution rules assigned to it
Distribution rules defines: cost receiver, settlement share, settlement type
Page 6-57
SAP ERP Order Settlement
80 100 20
Posting Diagram MM
* Material Price is determined by the quantity produced
times the Standard Price in the Material Master.
Page 6-58
SAP ERP Order Settlement
Costs analyzed
- Primary
Materials
External Processing
- Secondary
Production, Material, and Administrative Overhead
Labor
Page 6-59
SAP ERP Overview of ARIS models (PP)
[slide number] [slide title] [model name assigned] [level of abstraction (1-4)]
Page 6-60
SAP ERP Information Models Covering 4 Levels of IT Integration
All SAP ERP master & transaction data Entity Relationship Diagram : LA 3
Kundenauftrag
All SAP ERP organizational units Org. Chart : Level of Abstraction 1- 3
Page 6-61