Production Planning Master Data EGN 5620 Enterprise Systems

Production Planning Master Data EGN 5620 Enterprise Systems Configuration Fall, 2015

Business Module for Selling Finished Goods by Production Pre-Sales Activity Sales Order Availability Check YES NO Accounts Receivable Inventory Postings General Ledger Accounts Goods Issued to Delivery In Inventory Issue Goods to Production NO Order Purchase Requisition Billing Delivery Plant or Warehouse Purchase Order Goods from Production Order Goods Receipt Invoice Receipt Accounts Payable Request for raw materials Or Planned Order Production Order Completion © SAP AG - University Alliances and The Rushmore Group, LLC Confirmation January 2008. All rights reserved. 2

Production and Planning Master Data SAP Implementation

Business Process Integration PP SD Data MM Master FI Rules Org Data FI MM PP SD FI FI MM MM PP PP SD SD January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC 2008. All rights reserved. 4

GBI PP Org. Data Org Data PP PP January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC 2007. All rights reserved. 5

PP Organizational Data 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 Run MRP/MPS Storage Location ◦ An organizational unit allowing differentiation between the various stocks of a material in a plant Work Center ◦ An organizational unit that defines where 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 machine, groups of machines, people, production lines or groups of craftsmen

GBI Structure for PP Global Bike Inc. Dallas Client Global Bike Germany Gmb. H Heidelberg Raw Materials Semi-fin. Goods Finished Goods Miscellaneous Assembly Packaging Inspection Company Code Plant Storage Location (Work Center)

Organization Data Plant-specific organizational units ◦ MRP controller ◦ Production scheduler ◦ Planner group ◦ Person responsible (financially) January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC 2007. All rights reserved. 8

GBI PP master data PP Master Data PP PP PP January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC 2007. All rights reserved. 9

Master Data for Production Planning Material Bill of Materials (BOM) Work Center Routing Product Group January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC 2007. All rights reserved. 10

Material Data (Review) Definition ◦ Physical objects to buy, transform into, sell, maintain other resources, or use in support for business activities. Generic classification(material types) : ◦ Trading goods ◦ Raw materials ◦ Semi-finished products (WIPs) ◦ Finished products ◦ Consumables (e. g. , stationery, production tools) ◦ Spare parts (for maintenance)

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. January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC 2007. All rights reserved. 12

Bill of Materials: T-code CS 03 Asm – Assembly Indicator: the component in this item has its own BOM. Ict – Item category L - item category January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC 2007. All rights reserved. 13

BOM: Product Structure (CSMB) January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC 2007. All rights reserved. 14

Bill of Material Master Data 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. Base quantity: Quantity to which all component quantities in a BOM relate. The BOM is valid from the date specified in the © SAP AG - University Alliances header. and The Rushmore Group, LLC January 2008 2007. All rights reserved. 15

Bill of Materials Master Data Items section identifies all materials needed to make finished goods or semi-finished goods identified in the header. Data for each item are: ◦ item category, ◦ material number, ◦ description, & ◦ Quantity Item category ◦ Tell how material is used in the BOM. January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC 2007. All rights reserved. 16

Where to use BOM? 1. MRP uses BOM to determine dependent requirements 2. Routing uses BOM to determine material allocation for each operation 3. Controlling uses BOM to calculate product costs 4. Production uses BOM to issue the proper quantities of components and raw materials to the shop floor January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC 2007. All rights reserved. 17

Variant Bill of Materials ◦ Several products with a large proportion of identical parts. Single-Level Deluxe Bike (red) Single-Level Professional Bike (black) Aluminum Wheel Frame red Derailleur Gear Assembly Seat Kit Handle Bar Pedal Assembly Carbon Wheel Chain Frame black Brake Kit Derailleur Gear Assembly Warranty Doc. Seat Kit Packaging Handle Bar Pedal Assembly Chain Brake Kit Warranty Doc. Packaging

Work Center Work center is a location where value-added work for producing a finished or semi-finished product is carried out. A work center is a resource that can be used for a variety of purposes and for multiple processes. 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. January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC 2007. All rights reserved. 19

Work Center - Capacities Work center ◦ Labor ◦ Machine ◦ Output ◦ Emissions used to define capacities Capacities used in ◦ Capacity requirements planning (CRP) ◦ Detailed scheduling ◦ Costing January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC 2007. All rights reserved. 20

Work Center – Where used Work Center is used: ◦ To be assigned in routing for each operation ◦ To be linked to cost center ◦ To be allocated with Human Resources (HR) Positions with requirements People with qualifications January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC 2007. All rights reserved. 21

Work Center Views Work Centers have multiple ◦ Basic data ◦ Default values ◦ Capacity overview ◦ Scheduling ◦ Cost center assignment ◦ Technical data January 2008 views of: © SAP AG - University Alliances and The Rushmore Group, LLC 2007. All rights reserved. 22

Work Center – Basic data January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC 2007. All rights reserved. 23

Work Center – Default Values January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC 2007. All rights reserved. 24

Work Center - Capacities/Scheduling January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC 2007. All rights reserved. 25

Work Center - Costing January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC 2007. All rights reserved. 26

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. January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC 2007. All rights reserved. 27

Routing are used to determine: v. Operations v. Work centers v. Material components v. Production resources and tools v. Quality Checks January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC 2007. All rights reserved. 28

Routing – an Example Routing Operation Work Center for Finished Bike Plant Description Control Key Activity Type Time and Unit of Measure

Routing Use Routings will be used in ◦ Scheduling (dates, times) ◦ Costing ◦ Capacity planning ◦ Production orders January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC 2007. All rights reserved. 30

Routing Standard Sequence Operation 10 Operation 20 Alternate Sequence Operation 10 Operation 20 Parallel Sequence Operation 10 Operation 25 Operation 30 Operation 40 January 2008 Operation 40 © SAP AG - University Alliances and The Rushmore Group, LLC 2007. All rights reserved. 31

Material Types Allowed in Production Multiple material types may be used in a routing/BOM v. Raw materials v. Semi-finished product v. Trading goods are allowed but not standard v. Text or Reference materials common January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC 2007. All rights reserved. 32

Controlling Activities for Production Used to perform internal cost allocation, where activities by a cost center are measured ◦ Labor time ◦ Machine hours Prices (costs) for planned ◦ Fixed or Variable Labor = $$/hour Machine = $/hour Overhead = % activities January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC 2007. All rights reserved. 33

Activity Type/Price Planning January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC 2007. All rights reserved. 34

Product Group Product group is defined for aggregating plan that group together materials or other product groups (Product Families) ◦ Manufacturing procedure ◦ Product design 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 January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC 2007. All rights reserved. 36

Production Group January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC 2007. All rights reserved. 37

PP Rules PP PP PP January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC 2007. All rights reserved. 38

MRP Control Parameters MRP 1 view ◦ MRP type ◦ Planning time fence ◦ MRP Controller ◦ Lot size MRP 2 view ◦ Procurement type ◦ In-house production ◦ Sched. Margin key: Key that the system uses to determine the floats required for scheduling an order. MRP 3 view ◦ Period indicator ◦ Availability check January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC 2007. All rights reserved. 39

MRP 1 View January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC 2007. All rights reserved. 40

MRP 2 View January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC 2007. All rights reserved. 41

MRP 3 View January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC 2007. All rights reserved. 42

MM Planning Parameters Materials Requirements ◦ for materials Planning views Work Scheduling views for finished and semi-product ◦ for manufactured products January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC 2007. All rights reserved. 43

Production and Planning Master Data GBI, Inc.

GBI. Organizational Structures Credit Control Area (GL##) Client (330) Fiscal Year Variant (K 1) Chart of Company Accounts (GL##) Code (US##) Controlling Area (NA##) Purchasing Organization (US##) Plant (DL## /MI##/SD## _) RM## FG## Purchasing Group (N##) SF## TG## MI## Work center (ASSY/INSP/PAC K/MANT/SERV) Shipping Point (DL##/MI##/SD##) Work Center ASSM 10## INSP 10## PACK 10##

Routing January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC 2007. All rights reserved. 46

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: (Due Date – 9/19/2015) 1. Determine work center location 2. Create activity type 3. Change activity output/prices 4. Determine person responsible 5. Create capacity 6. Create work centers 7. Create MRP views for raw materials 8. Create semi-finished goods 9. Create finished goods 10. Create bill of materials 11. Create product routings 12. Create product groups