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Production Planning

Master Data

EGN 5620 Enterprise Systems Configuration


Fall, 2012
Production and Planning
Master Data

SAP Implementation

EGN 5620 Enterprise Systems Configuration


Fall, 2012
Business Process Integration

FI MM PP SD

Master
Org Data

D
Rules

ata
FI FI
FI
MM MM
MM
PP PP
PP
SD SD
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Business Process Integration

PP
Org Data

Master Data

Rules
PP PP
PP

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Production Process (Make-to-Stock)
Capacity Schedule
Planning and Release

Shop Floor
Production Documents
Proposal
(Planning/Other)
Production
Process Goods
Issue

Completion
Order
Confirmation
Settlement
Goods
Receipt
Organization Data
Client
Company code
Plant
Storage location
Shipping point
Work Center

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Work
Organization Structure Centers

Credit Control Client (600) Fiscal Year


Area Variant

Chart of Company Controlling


Accounts Code (C _ _ _) Area

Purchasing
Organization
Plant Sales
Purchasing Organization
WC 10 WC 20
Group
SL10 SL20
Distribution Division
Shipping Channel
Point
Sales Area
Organization Data - Work Center
It is a unique production or assembly area
It may include
Equipment
Groups of equipment
Production lines
Employees
Groups of employees
Operations are carried out at work center

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Organization Data
Plant-specific organizational units
MRP controller
Production controller
Production scheduler
Planner group
Person responsible (financially)
Non-plant specific organizational units
Capacity planner

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BPI PP master data

PP

Master Data

PP PP
PP

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Master Data for Production Planning
Billof Material Master Data
Work Center Master Data
Work Center Control Key
Product Routing
Material Types Allowed in Production
Controlling Activities For Production
Activity Prices
Materials

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Bill of Materials
BOM 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.

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Bill of Material Master Data

Billof Materials (BOM) are created as single-


level or multi-level relationships between
one parent material and the sub-component
material

EPEN

Barrel Cap Crown Cartridge Band Clip

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Bill of Material Master Data
Variant Bill of Materials (BOM)
Several products with a large proportion of
identical parts.

EPEN - Red EPEN - Black

Red Black
Band Etc. Band Etc.
Cartridge Cartridge

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Bill of Material Master Data
Multiple versions of Bill Of Materials (BOM)
One product produced from alternative
components or processes, where the differences
are small (usually the quantity of a component).
BOM 1 = lot size 1 - 100
BOM 2 = lot size 101 999

EPEN - Black EPEN - Black

Black Black
Cartridge Band Etc. Etc. Band
Cartridge
(Buy) (Make)
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Bill of Material Master Data

Finished Good

Semi-finished Raw Semi-finished


goods Material good

Raw Raw Raw Raw


Material Material Material Material

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Bill of Material Master Data

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Bill of Material Master Data
BOM in SAP consists of a header section and an
item section.

Headersection includes data that apply to entire


BOM, such as finished material number, plant,
usage, validity, status, and base quantity.

Usageidentifies the purpose for which the BOM


can be used. For example, 1 is for production.

TheBOM is valid from the date specified in the


header.
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Bill of Materials Master Data
Items section identifies all materials needed to
make finished goods or semi-finished goods
identified in the header.

Item category determines how material is used


in the BOM.

Data for each item are:


material number,
description, quantity, and
item category.

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BOM MM Item Category
L: Stock item
N: Non-stock item
R: Variable size item
T: 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.

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BOM MM Item Category
K: 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.

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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

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Work Center
Workcenter is a location where value-added
work needed to produce a material 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.

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Work Center
Work center used to define capacities
Labor
Machine
Output
Emissions
Capacities used in
Capacity requirements planning (CRP)
Detailed scheduling
Costing

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Work Center
Work Center is used:
To be assigned as cost center
To be allocated with Human Resources (HR)
Qualifications
Positions
People

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Work Center
Work Centers have multiple views of:
Basic data
Default values
Capacity overview
Scheduling
Cost center assignment
Technical data

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Work Center
Basic data section:
Name, and description of the work center
Person or group of people who are responsible for
completing operations
Task 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.

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Work Center

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Work Center
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.

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Work Center

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Work Center
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.

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Work Center

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Work Center

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Work Center
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.

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Work Center

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Work Center Control Key
Scheduling
Determine capacity requirements
Inspection characteristics required
Confirmation required
Rework
Cost
Schedule external operations std values

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Product 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.

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Routing
Routing are used to determine:
Operations
Work centers
Material components
Production resources and tools
Quality Checks

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Routing

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Routing

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Routing

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Routing Use
Routings will be used in
Scheduling (dates, times)
Costing
Capacity planning
Production orders

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Routing
Standard Alternate Parallel
Sequence Sequence Sequence
Operation 10 Operation 10 Operation 10

Operation 20
Operation 20 Operation 20 Operation 25

Operation 25
Operation 30 Operation 30
Operation 30

Operation 40 Operation 40 Operation 40

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Material Types Allowed in Production
Multiple material types may be used in a
routing/BOM
Raw materials
Semi-finished product
Trading goods are allowed but not standard
Text or Reference materials common

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Display Routing List
A collective report displaying the available
routings and the material allocations to
operations
Four General Types
Operations Related
Component Related
Production Resource/Tool (PRT ) Related
General List (Operation Control Ticket)

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Controlling Activities for Production
Used to perform internal cost allocation,
where activities by a cost center are
measured
Labor time
Machine hours
Output activities are valued
Allocation of an activity type is always
made with the allocation cost element
created in activity type planning

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Activity Prices
Prices (costs) for planned activities
Fixed or Variable
Labor = $$/hour
Machine = $/hour
Overhead = %

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Product 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 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

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BPI PP Rules

PP

Rules
PP PP
PP

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MRP Control Parameters
Environment
Number range
Master Data
Materials Requirements Planning controllers
Float times
Planned Orders
Conversion order type
Dependant requirement availability

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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

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General Planning Parameters
Order Type Control Parameters
Types of routings,
BOMs per order type:
manually or automatically
Availability checking
Create Confirmation Parameters
Reservations
Status Updates
Define Valuation of Goods Received
Moving Average Price Control evaluation

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MM Planning Parameters
Materials Requirements Planning views
for materials
Work Scheduling views
for manufactured products

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Production and Planning
Master Data
PEN, Inc.

EGN 5620 Enterprise Systems Configuration

Fall, 2011
Pen Inc. Business Module II for
Selling Finished Goods by Production

Pre-Sales Sales Accounts


Delivery Billing
Activity Order Receivable

Availability Goods Issued


Check to Delivery
YES General
In Inventory
Plant or Ledger
Inventory Postings
Warehouse Accounts
Issue Goods
to Production Goods from
NO
Order Production Order

NO
Purchase Purchase Goods Invoice Accounts
Requisition Order Receipt Receipt Payable

Or

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Order Order Confirmation
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Activity Type/Price Planning

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Production Group

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PPP 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 time
Purchase Order (execution)
A request or instruction to a vendor for a
material or service at a specific time
Exercises:
212. Create primary cost elements
213. Create secondary cost elements
214. Create cost element groups
215. Create statistical key figure
216. Create controlling document number ranges
217. Define controlling settlement document number ranges
258. Create vender master records centrally
265. Create bill of materials
266. Create person responsible for work center
267. Create work center location
269. Create capacity
270. Create activity type labor
271. Set activity prices
272. Create work center for production
Exercises:
273. Create finished products routing
274. Display routing list
275A. Create material master for production group
275B. Assign numbers for product group