SAP PP Presentations

Production Planning
Master Data
EGN 5620 Enterprise Systems Configuration

Fall, 2012
Production and Planning
Master Data
SAP Implementation

Fall, 2012
Business Process Integration
FI MM PP SD
Rules
FI
MM
PP
SD © SAP AG - University Alliances and

The Rushmore Group, LLC 2008. All
January 2008 rights reserved. 3
Business Process Integration
PP
Master Data
PP
© SAP AG - University Alliances and

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

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

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

BPI PP master data
PP
Master Data
PP

Master Data for Production Planning
 Bill of 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

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.

Bill of Material Master Data
 Bill of 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
© SAP AG - University Alliances and The Rushmore Group, LLC

January 2008 2007. All rights reserved. 13
 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

 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)

Finished Good
Semi-finished Raw Semi-finished

goods Material good
Raw Raw Raw Raw

Material Material Material Material


 BOM in SAP consists of a header section and an
item section.
 Header section includes data that apply to entire

BOM, such as finished material number, plant,
usage, validity, status, and base quantity.
 Usage identifies the purpose for which the BOM

can be used. For example, 1 is for production.
 The BOM is valid from the date specified in the

header.
Bill of Materials Master 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.
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.
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. © SAP AG - University Alliances and
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

Work Center
 Work center 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.

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

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

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

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.

Work Center

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.
Work Center

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.

Work Center

Work Center

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.

Work Center

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

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.

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

Routing

Routing

Routing

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

Routing
Standard Alternate Parallel
Sequence Sequence Sequence
Operation 10 Operation 10 Operation 10
Operation 20
Operation 25
Operation 30 Operation 30
Operation 30

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

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)

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

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

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

BPI PP Rules
PP
PP

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

MRP Control Parameters
 Planning run
◦ Bill of Material (BOM) selection
◦ External procurement
◦ Planning horizon
 Availability Check
◦ Material
◦ Production Resource/Tool (PRT )
◦ Capacity
 Scheduling Control Parameters

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

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

Production and Planning
Master Data
PEN, Inc.
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
Planned Production Completion © SAP AG - University Alliances and

Order Order Confirmation
Activity Type/Price Planning

Production Group

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

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Production Planning

EGN 5620 Enterprise Systems Configuration

EGN 5620 Enterprise Systems Configuration

SD © SAP AG - University Alliances and

© SAP AG - University Alliances and

© SAP AG - University Alliances and

Credit Control Client (600) Fiscal Year

Chart of Company Controlling

© SAP AG - University Alliances and

© SAP AG - University Alliances and

© SAP AG - University Alliances and

© SAP AG - University Alliances and

© SAP AG - University Alliances and

 Bill of Materials (BOM) are created as single-

Barrel Cap Crown Cartridge Band Clip

© SAP AG - University Alliances and The Rushmore Group, LLC

EPEN - Red EPEN - Black

© SAP AG - University Alliances and The Rushmore Group, LLC

Semi-finished Raw Semi-finished

Raw Raw Raw Raw

© SAP AG - University Alliances and The Rushmore Group, LLC

© SAP AG - University Alliances and

 Header section includes data that apply to entire

 Usage identifies the purpose for which the BOM

 The BOM is valid from the date specified in the

 Item category determines how material is used

 Data for each item are:

2. Controlling uses BOM to calculate product costs

3. Production uses BOM to issue the proper

© SAP AG - University Alliances and

 A work center can be a machine, a group of

 A work center is a resource that can be used for

© SAP AG - University Alliances and

© SAP AG - University Alliances and

© SAP AG - University Alliances and

© SAP AG - University Alliances and

© SAP AG - University Alliances and

© SAP AG - University Alliances and

© SAP AG - University Alliances and

 Scheduling basis determines the specific capacity

© SAP AG - University Alliances and

© SAP AG - University Alliances and

© SAP AG - University Alliances and

© SAP AG - University Alliances and

© SAP AG - University Alliances and

© SAP AG - University Alliances and

© SAP AG - University Alliances and

© SAP AG - University Alliances and

© SAP AG - University Alliances and

© SAP AG - University Alliances and

© SAP AG - University Alliances and

© SAP AG - University Alliances and

Operation 40 Operation 40 Operation 40

© SAP AG - University Alliances and The Rushmore Group, LLC

© SAP AG - University Alliances and

© SAP AG - University Alliances and

© SAP AG - University Alliances and

© SAP AG - University Alliances and

© SAP AG - University Alliances and

© SAP AG - University Alliances and

© SAP AG - University Alliances and

© SAP AG - University Alliances and

© SAP AG - University Alliances and