LO050 PP Discrete & Process 2001

LO050 Planning and Execution for Discrete and Repetitive Manufacturing

Date Training Center Instructors Education Website

Participant Handbook Date: December 2001 Course Duration: 5 Day(s) Material Number: 50053190

An SAP course - use it to learn, reference it for work

Copyright Copyright © 2002 SAP AG. All rights reserved. No part of this publication may be reproduced or transmitted in any form or for any purpose without the express permission of SAP AG. The information contained herein may be changed without prior notice. Some software products marketed by SAP AG and its distributors contain proprietary software components of other software vendors.

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About this Handbook This handbook is intended to complement the instructor-led presentation of this course, and serve as a source of reference. It is not suitable for self-study.

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Words or characters that appear on the screen. These include field names, screen titles, pushbuttons as well as menu names, paths, and options. Also used for cross-references to other documentation both internal (in this documentation) and external (in other locations, such as SAPNet).

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December 2001

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© 2002 SAP AG. All rights reserved.

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Icons in Body Text The following icons are used in this handbook. Icon

Meaning For more information, tips, or background Note or further explanation of previous point Exception or caution Procedures

Indicates that the item is displayed in the instructor’s presentation.

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Contents Course Overview ......................................................... vii Course Goals ...........................................................vii Course Objectives .....................................................vii

Unit 1: Navigation.......................................................... 1 Navigation................................................................2

Unit 2: Master Data ...................................................... 31 Organizational Levels ................................................ 32 Material Master........................................................ 37 BOM .................................................................... 49 Work Center ........................................................... 63 Routing ................................................................. 71

Unit 3: Planning and Execution with Final Assembly ........... 91 Planning with Final Assembly ....................................... 92 Sales and Operations Planning (SOP) ............................. 97 Demand Management...............................................112 MRP ...................................................................122 Consumption by Sales Orders .....................................142 Production Orders ...................................................152

Unit 4: Make-to-Stock Production................................... 185 Make-to-Stock Production ..........................................187 Master Production Scheduling (MPS) .............................191 Additional MRP Topics ..............................................209 Scheduling ............................................................226 Material Availability ..................................................238 Capacity Planning....................................................244

Unit 5: Make-to-Order Production................................... 269 Make-to-Order Production Strategy ...............................270 Assembly Processing with Production Order.....................276 Introduction to Variant Configuration ..............................289

Unit 6: Repetitive Manufacturing/KANBAN ....................... 297 Planning Without Final Assembly ..................................298 Repetitive Manufacturing............................................313 KANBAN ..............................................................348

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Unit 7: Special Topics.................................................. 375 Long-Term Planning .................................................376 Simulative MRP ......................................................389 Advanced Planner and Optimizer (APO) .........................394

Unit 8: ASAP Overview ................................................ 401 mySAP Implementation .............................................402

Glossary................................................................... 425 Index ....................................................................... 445

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Course Overview This course is meant to give you a broad overview of the R/3 System from both planning and execution perspectives, without going into too much detail in either area. At the end of this course, you will be sensitized to the production planning (PP) system in general. To give you a feel for the PP module we create various scenarios and take you through many steps that simulate a business process as it would occur in a live scenario.

Target Audience This course is intended for the following audiences: •

Project team leaders and members responsible for the manufacturing process

Course Prerequisites Required Knowledge • • •

SAP20 — SAP R/3 Overview Basic knowledge and experience in manufacturing, planning and execution Good working knowledge of the Windows operating system environment

Course Goals This course will prepare you to: • • • • •

Explain the manufacturing organizational structures used by R/3 Describe the basic PP master data Perform MRP using various repetitive and make-to-order production strategies Execute the plans using production orders, repetitive manufacturing and KANBAN production techniques Interpret the results of the discrete manufacturing planning and execution processes

Course Objectives After completing this course, you will be able to:

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Course Overview

• • • •

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Explain the manufacturing organization structures used by R/3 Describe the basic PP master data Perform MRP using various repetitive and make-to-order production strategies Interpret the result of the discrete manufacturing planning and execution processes


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Unit 1 Navigation Unit Overview With the introduction of SAP R/3 version 4.0, SAP defined new standards of how all SAP application components look and feel. With the user and user roles in mind, all SAP application component’s navigation is similar. With easy-to-use screens, the employee can work quickly while having the freedom to customize their workspace.

Unit Objectives After completing this unit, you will be able to: • • •

Log on to any SAP system Navigate a basic path and personalize an SAP system Search for information and obtain help using the different help methods in the SAP system

Unit Contents Navigation...........................................................................2 Exercise 1: Logging on to SAP Systems ..................................... 13 Exercise 2: Navigating Menus.................................................. 17 Exercise 3: Creating Favorites Using the Menu Bar......................... 21 Exercise 4: Creating Web Site Links in the Favorites List .................. 23

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Lesson: Navigation Lesson Overview In this lesson, we explain and demonstrate how to log on to the SAP system and familiarize participants with the layout and navigation of the system. We also discuss some of the options available for personalizing the system based on the users’ requirements and/or preferences. Lastly, we introduce the various types of online help available in SAP and develop an understanding of how to search for information.

Lesson Objectives After completing this lesson, you will be able to: • • •

Log on to any SAP system Navigate a basic path and personalize an SAP system Search for information and obtain help using the different help methods in the SAP system

Business Example In order to efficiently use the SAP system, new users need to familiarize themselves with the screens and navigation in the SAP system and define personal settings based on their individual business requirements.

Logon Process Before you log on the first time, your system administrator will give you an initial password. During the logon process, you should create a new password, one that you alone will know. Use your own password whenever you log on. These procedures may differ somewhat at your company. For more information, contact your system administrator.

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Lesson: Navigation

Figure 1: Logging on to an SAP System The SAP logon icon now appears in both the task bar (together with the SAP Release number) and the system tray (that is, the bottom right-hand corner of your desktop). When you select the Tab key after you have entered data in a field, the cursor moves to the beginning of the next field. However, if you enter the maximum number of characters possible in a field, you do not have to select Tab. For example, the maximum number of characters you can enter in the Client field is three. If you enter 001 in the Client field, the cursor automatically moves to the beginning of the next field. If there are system-wide messages, the System Messages dialog box appears. After you have read the messages, choose Continue (or Enter) to close the dialog box.

Layout, Navigation, and Personalization Menus allow you to find a specific transaction when you do not know the transaction code. The menu is organized according to the task you are performing in the SAP system. The menus are drop down; therefore, when you choose a menu item, further options appear. Sometimes not all of the available menus fit on one line in the menu bar. In this case, they wrap to the next line. The dropdown principle stays the same.

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Figure 2: General Screen Layout

Navigation Tree In SAP Easy Access, you can create a Favorites list containing: • • •

4

Transactions Files Web addresses


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Lesson: Navigation

Figure 3: Navigation Tree

Role-Based Menus Roles or user menus are collections of activities used in business scenarios. Users access the transactions, reports, or Web-based applications through user menus. Users can change aspects of assigned roles, for example, by creating their own favorites list. When assigned a role, users are assigned not only the menu, but also the authorizations they require to access the information, ensuring that the business data is always secure. Authorization profiles are generated according to the activities contained in the role, thus restricting the authorizations of each user in the SAP system to only those activities. In the mySAP.com Workplace, the user uses a Web browser to view and execute the required tasks and activities. Roles can be assigned here as well. The system administrator can tailor the user menu to the personal requirements of each user by adding or deleting menu entries.

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Figure 4: Role-Based Menus

Multiple Sessions You can create a session at any time, and you will not lose any data in sessions that are already open. You can create up to six sessions. Each session is independent of the others. For example, closing the first session does not cause the other sessions to close. Too many open sessions can result in slower system performance. For this reason, your system administrator may limit the number of sessions you can create to fewer than six. You can move between sessions without losing any data, as long as you remain logged on to the SAP system. Moving to a different session is like putting a telephone call on hold; you can resume the call whenever you are ready.

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Lesson: Navigation

Figure 5: Multiple Sessions To move between sessions, click any part of the window that contains the session you want to use (or use Alt + Tab). The window you choose becomes the active window by moving in front of all the other windows on your screen. If you have several sessions open, you can minimize the sessions you are not using. When you need to use one of these sessions later, you can restore it by selecting the appropriate symbol in the status bar. By minimizing the sessions you are not using, you can significantly reduce the system load. After you are done using a session, it is a good idea to end it. Each session uses system resources that can affect how fast the SAP system responds to your requests. Before you end a session, save any data you want to keep. When you end a session, the system does NOT prompt you to save your data.

Status Bar The status bar provides general information on the SAP system and the transaction or task on which you are working. At the left of the status bar, system messages are displayed. The right end of the status bar contains three fields; one has server information, and the other two contain status information.

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Figure 6: Status Bar •

At the far left of the status bar: – –

• •

Identifies error messages Identifies other system messages

To hide (or display) the status fields, choose the icon to the left (or right). To display the following system information, choose in the first status field: – – – – – –

System Client User Program Transaction Response time

The second status field displays the server to which you are connected. The third status field specifies your data entry mode. By choosing this field, you can toggle between the Insert (INS) and Overwrite (OVR) modes.

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Lesson: Navigation

Help Features The R/3 System provides comprehensive online help. You can display the help from any screen in the system. You can always request help using the Help menu or using the relevant icon. The Help menu contains the following options: Application help Displays comprehensive help for the current application. Selecting this menu option in the initial screen displays help on getting started with R/3. SAP Library All online documentation can be found here. Glossary Allows a search for definitions of terms. Release notes Displays notes that describe functional changes that occur between R/3 releases. SAPNet Enables you to log on to SAPNet. Feedback Enables you to send a message to the SAPNet R/3 front end, SAP’s service system. Settings Allows you to select settings for help.

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Figure 7: Getting Help Use F1 for help on fields, menus, functions and messages. F1 help also provides technical information on the relevant field, including, for example, the parameter ID, which you can use to assign values to the field. Use F4 for information on what values you can enter. You can also access F4 help for a selected field using the button immediately to the right of that field. If input fields are marked with a small icon with a checkmark, then you can only continue in that application by entering a permitted value. You can flag many fields in an application to make them either required entry fields or optional entry fields. You can also hide fields using transaction or screen variants, or customizing.

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Lesson: Navigation

Figure 8: Field Help: Using F1 and F4

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Lesson: Navigation

Exercise 1: Logging on to SAP Systems Exercise Objectives After completing this exercise, you will be able to: • Understand the basics of creating a logon entry • Log on to an SAP system

Business Example As an employee of a company that manages their business with SAP, you need to gain access to an SAP system to do your daily business transactions.

Task In this exercise, you will first create a logon entry to identify which system you would like to gain access to. You will then access that system with the appropriate client, user ID and password. 1.

Create an entry in the SAP GUI logon screen, based on the information provided by the instructor. Field

Information

Description

Class

Client Application Server SAP Router String System Number 2.

You have now created a logon entry. You will use this entry to gain access to the SAP system you have identified with the information provided. Field

Information

User

##

Password

Client Language

EN

New Password

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Solution 1: Logging on to SAP Systems Task In this exercise, you will first create a logon entry to identify which system you would like to gain access to. You will then access that system with the appropriate client, user ID and password. 1.

Create an entry in the SAP GUI logon screen, based on the information provided by the instructor. Field

Information

Description

Class

Client Application Server SAP Router String System Number a)

b) c) d) e) f) g) h) 2.

Locate the SAP Logon program from your desktop. There are a variety of ways to find it and a variety of places it could reside on your desktop; these variables depend on how the GUI software was installed. Consult technical support if you cannot find the application. Choose New. Enter Description: Class Enter Application Server: Enter SAP Router String: Choose R/3 as the SAP system. Enter System Number: Choose OK.

You have now created a logon entry. You will use this entry to gain access to the SAP system you have identified with the information provided.

Continued on next page

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Lesson: Navigation

Field

Information

User

##

Password

Client Language

EN

New Password a) b) c) d) e) f)

Choose the entry you created in the above exercise step. Choose Log on. Enter Client: Enter Password: Enter Language: Select Enter. Note: You might be asked to change your password; if so, continue with the following steps. If you are not asked, skip to solution step J.

g) h) i) j)

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Enter New Password: Enter Repeat Password: Select Enter. Enter as many times as needed, reading any system messages that might be displayed, until you get to the SAP Easy Access screen.


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Lesson: Navigation

Exercise 2: Navigating Menus Exercise Objectives After completing this exercise, you will be able to: • Locate specific folders in the SAP Easy Access Menu • Navigate the SAP Easy Access Menu to locate specific transaction

Business Example As a new user working on a SAP system, you need to locate specific transactions in the SAP system.

Task In this exercise, you will locate a variety of transactions by navigating the SAP Easy Access Menu 1.

What are the names of the transactions that are located in the folder Order in Sales and Distribution? Field

Transaction Name

Transaction Transaction Transaction 2.

What are the names of the transactions that are located in the folder Document Entry in General Ledger? Field

Transaction Name

Transaction Transaction Transaction Transaction Transaction Transaction Transaction

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Solution 2: Navigating Menus Task In this exercise, you will locate a variety of transactions by navigating the SAP Easy Access Menu 1.

What are the names of the transactions that are located in the folder Order in Sales and Distribution? Field

Transaction Name

Transaction Transaction Transaction a)

d)

Choose SAP Standard Menu – The triangle to the left of the SAP Menu folder. Logistics – The triangle to the left of the logistics Choose folder. Choose Sales and Distribution – The triangle to the left of the Sales and Distribution folder. Choose Sales – The triangle to the left of the Sales folder.

e) f)

Order – The triangle to the left of the Order folder. Choose Record your results:

b) c)

2.

Field

Transaction Name

Transaction

Create

Transaction

Change

Transaction

Display

What are the names of the transactions that are located in the folder Document Entry in General Ledger? Field

Transaction Name

Transaction Transaction Transaction Transaction Transaction Continued on next page

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Lesson: Navigation

Field

Transaction Name

Transaction Transaction a) b) c)

General Ledger – The triangle to the left of the General Choose Ledger folder.

d)

Document Entry – The triangle to the left of the Choose Document Entry folder. Record your results.

e)

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Choose Accounting – The triangle to the left of the Accounting folder. Financial Accounting – The triangle to the left of the Choose Financial Accounting folder.

Field

Transaction Name

Transaction

Enter G/L Account Posting

Transaction

Cash Journal Positing

Transaction

Edit or Park G/L Document

Transaction

Post with Clearing

Transaction

Incoming Payments

Transaction

Outgoing Payments

Transaction

Valuate Foreign Currency

Transaction

General Posting


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Exercise 3: Creating Favorites Using the Menu Bar Exercise Objectives After completing this exercise, you will be able to: • Navigate to transactions you would like to save as favorites • Use the Menu bar to create and store a favorite transaction

Business Example Each SAP user will have specific transactions, files, or Web sites that they access frequently.

Task In this exercise, you will create a variety of transactions as favorites that will appear as favorites on your SAP Easy Access Navigation area.

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1.

Create a favorite for the transaction Post Incoming Payment in Accounts Receivable. This is transaction code F-28.

2.

Create a favorite for the transaction Display Customer (Centrally) in Sales and Distribution. This is transaction code XD03.

3.

Create a favorite for the transaction Maintain HR Master Data in Human Resources. This is transaction code PA30.


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Solution 3: Creating Favorites Using the Menu Bar Task In this exercise, you will create a variety of transactions as favorites that will appear as favorites on your SAP Easy Access Navigation area. 1.

Create a favorite for the transaction Post Incoming Payment in Accounts Receivable. This is transaction code F-28. a)

Choose Accounting → Financial Accounting → Accounts Receivable → Document Entry.

b) c)

Incoming Payment. Choose Choose Favorites → Add. Note: This menu path is at the top of your window.

2.

Create a favorite for the transaction Display Customer (Centrally) in Sales and Distribution. This is transaction code XD03. a)

Choose Logistics → Sales and Distribution → Master Data → Business Partners → Customer → Display.

b) c)

Complete. Choose Choose Favorites → Add. Note: This menu path is at the top of your window.

3.

Create a favorite for the transaction Maintain HR Master Data in Human Resources. This is transaction code PA30. a) b) c)

Choose Human Resources → Personnel Management → Administration → HR Master Data. Cho ose Maintain. Choose Favorites → Add. Note: This menu path is at the top of your window.

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Lesson: Navigation

Exercise 4: Creating Web Site Links in the Favorites List Exercise Objectives After completing this exercise, you will be able to: • Understand how to create Web sites as favorites • Create and store three favorite Web sites in your favorites list

Business Example Periodically you need to access the Web as part of your job function. You would like to be able to store the Web sites as favorites for quick access right from your SAP system.

Task You will create and save three Web sites as favorites in the navigation area of your SAP system.

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1.

Create a favorite link to the Web site www.sap.com.

2.

Create a favorite link to the Web site www.yahoo.com.

3.

Create as a favorite a link to the Web site www.maps.com.


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Solution 4: Creating Web Site Links in the Favorites List Task You will create and save three Web sites as favorites in the navigation area of your SAP system. 1.

2.

3.

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Create a favorite link to the Web site www.sap.com. a) b)

Choose Favorites → add other objects. Select Web address or file.

c) d) e)

Choose Enter. Enter Text: sap Enter Web address or file: http://www.sap.com

f)

Choose

Enter.

Create a favorite link to the Web site www.yahoo.com. a) b)


c) d) e)

Enter. Choose Enter Text: yahoo. Enter Web address or file: http://www.yahoo.com

f)

Choose

Enter.

Create as a favorite a link to the Web site www.maps.com. a) b)


c) d) e)

Enter. Choose Enter Text: maps. Enter Web address or file: http://www.maps.com

f)

Choose

Enter.


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Lesson: Navigation

Lesson Summary You should now be able to: • Log on to any SAP system • Navigate a basic path and personalize an SAP system • Search for information and obtain help using the different help methods in the SAP system

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Unit Summary

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Unit Summary You should now be able to: • Log on to any SAP system • Navigate a basic path and personalize an SAP system • Search for information and obtain help using the different help methods in the SAP system

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Test Your Knowledge

Test Your Knowledge 1.

You can only have one SAP R/3 session open at a time. Determine whether this statement is true or false.

True False 2.

Which of the following is not part of the information required to log on to the SAP system? Choose the correct answer(s).

A B C D 3.

Enter a specific client number Enter your user ID Enter your password Customize your settings

What menus are standard on all SAP screens? Choose the correct answer(s).

A B C D 4.

System Help Both A and B None of the above

Which of the following provides general information on the SAP system and transaction or task you are working on? Choose the correct answer(s).

A B C D 5.

Status Bar Menu Path Role Bar None of the above

In the SAP Easy Access menu, you can create a favorites list containing: Choose the correct answer(s).

A B C D

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Web addresses Transactions Files All of the above


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Test Your Knowledge

6.

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List three types of online help that are available in the SAP system.


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Test Your Knowledge

Answers 1.

You can only have one SAP R/3 session open at a time. Answer: False You can create up to six sessions. Each session is independent of the others.

2.

Which of the following is not part of the information required to log on to the SAP system? Answer: D You do not customize your settings until you are already logged on to the SAP system.

3.

What menus are standard on all SAP screens? Answer: C The System menu contains functions that affect the system as a whole, such as Create session, User profile, and Log off. The Help menu provides various forms of online help.

4.

Which of the following provides general information on the SAP system and transaction or task you are working on? Answer: A The Status Bar contains information on system messages, as well as system information such as client, user, transaction codes and response time.

5.

In the SAP Easy Access menu, you can create a favorites list containing: Answer: D Favorites can consist of Web links, standard and customer transaction codes, and links to other files, such as Word documents or PowerPoint files.

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Test Your Knowledge

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List three types of online help that are available in the SAP system. Answer: Application Help, SAP Library, Glossary, Release Notes, SAPNet, Feedback, Settings, F1, and F4 Application Help Displays comprehensive help on the current application; selecting this menu option in the initial screen displays help on getting started with R/3. SAP Library This is where all online documentation can be found. Glossary Enables you to search for definitions of terms. Release Notes Displays notes that describe functional changes that occur between R/3 releases. SAPNet Enables you to log on to SAPNet. Feedback Enables you to send a message to the SAPNet R/3 front end, SAP’s service system. Settings Enables you to select settings for help. F1 Field level help that provides information about the field. F4 Field level help that provides a list of field values or, in the case of an extensive list, an option to search for the information.

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Unit 2 Master Data Unit Overview Before we begin manufacturing planning and execution process, we need a basic understanding of the Master Data. Master Data is the single most important part of an SAP implementation. Mess it up, and the implementation is guaranteed to be painful. Keep accurate Master Data, and there is a high probability that the implementation will go smoothly.

Unit Objectives After completing this unit, you will be able to: • • • • •

Explain the organizational levels used by the R/3 manufacturing business process Describe the basic structure of the material master Display the major PP master data objects: BOMs, Work centers, Routings, Cost data Describe a Work Center Describe what Routings are within R/3

Unit Contents Organizational Levels............................................................ 32 Material Master ................................................................... 37 Exercise 5: Material Master .................................................... 43 BOM ............................................................................... 49 Exercise 6: BOM ................................................................. 57 Work Center ...................................................................... 63 Exercise 7: Work Centers....................................................... 67 Routing ............................................................................ 71 Exercise 8: Routings ............................................................ 79 Exercise 9: Routings/Cost Data................................................ 83

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Lesson: Organizational Levels Lesson Overview Sales and distribution, financial, controlling and materials management are examples of R/3 functions with their own organizational elements. We will explore the structures that pertain to manufacturing.

Lesson Objectives After completing this lesson, you will be able to: •

Explain the organizational levels used by the R/3 manufacturing business process

Business Example Organizational Levels are used through out all companies, including Precision Pumps.

Organizational Levels: Production

Figure 9: Organizational Levels: Production • • •

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In the SAP R/3 System, organizational levels are structures that represent the legal and/or organizational views of a company. The organizational levels form a framework that supports all business activities. For manufacturing, the critical organizational levels are company code, plant and storage location.


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Lesson: Organizational Levels

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•

You can design your company structures based on your business processes.

Organizational Levels: Company Code • • • •

A company code represents an independent accounting unit, for example, a company within a corporate group. Balance sheets and profit & loss statements, required by law, are created at the company code level. A company code is an independent accounting unit, and each company code contains a balanced set of books. A company code does not extend over national boundaries.

Organizational Levels: Plant

Figure 10: Organizational Levels: Plant A plant is an organizational unit that subdivides an enterprise according to production, procurement, maintenance or materials planning. It is a place where materials are produced or goods and services are provided. A plant has the following in R/3: • • • •

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An address A language A country assignment A workday calendar


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Organizational Levels: Storage Location

Figure 11: Organizational Levels: Storage Location A storage location identifies where material is stored. One or more storage locations can be assigned to a plant.

Organizational Levels: Unit Summary

Figure 12: Organizational Levels: Unit Summary • • • •

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A client is a self-contained unit in an R/3 system with separate master records and its own set of tables. One or more company codes are linked to a client. One or more plants are linked to a company code. One or more storage locations are linked to a plant.


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Lesson: Organizational Levels

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•

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Although plants belonging to different company codes cannot have the same identifier, storage locations can be repeated as long as they are in different plants.


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Lesson Summary You should now be able to: • Explain the organizational levels used by the R/3 manufacturing business process

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Lesson: Material Master

Lesson: Material Master Lesson Overview This lesson will introduce the participants to the Material Master record and the structure of the record. Also discussed during the lesson is the different view associated with the Material Master record.


Describe the basic structure of the material master

Business Example Precision Pump’s product line includes standard and make-to-order pumps. They have defined material masters for many of their final assemblies, sub-assemblies and purchased parts.

Manufacturing Master Data

Figure 13: Manufacturing Master Data During implementation, the organizational structures are defined first. After that, the master data is defined. Master data is a term for main reference files of information, such as the material master file or the routing file. Master data records remain in the database for an extended period of time. Master data is shared across application modules in R/3. Master data that is obsolete can be archived.

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Material Master Data

Figure 14: Material Master Data The material master contains all the information on all the material that a company procures, produces, stores and sells. The material master data is used by various business areas, including: • • • •

Purchasing Inventory management Production planning Production order execution and control

During integration, the data is stored without redundancies.

Material Type

Figure 15: Material Type

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Materials with similar basic attributes are grouped together by material type. This means you can manage your materials according to their business requirements. The material type has important control functions. It determines, for example: • • • • •

The screens that appear in the material master record The department-specific data that can be maintained How the material number assignment is carried out The procurement types that are allowed (in-house production or external procurement) The general ledger accounts that are updated

You must assign the material type when you create a new material. You can create additional company-specific material types in customizing.

Material Master Record: Views

Figure 16: Material Master Record: Views Each user department has its own view of a material master record. For example, data that relates to the accounting department is stored in the accounting view, and data that relates to material planning is stored in the MRP view. A view can extend to one or more screens. For example, the MRP view has several screens.

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Material Master Record: Data Structure

Figure 17: Material Master Record: Data Structure Basic data in the material master is applicable to the entire company and is stored at the client level. Basic data includes the material number, the material group, the unit of measure, and conversion factors for alternative units of measure. Views that support production and MRP are specific to the plant.

Material Master: Basic Data View

Figure 18: Material Master: Basic Data View •

•

•

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The base unit of measure is the unit of measure in which stocks of the material are managed. The system converts all quantities entered in other units of measure (alternative units of measure) to the base unit of measure. The material description (short text) can be entered in more than one language. Users will see the material description in their logon language. Net weight, gross weight and unit of weight are optional fields.


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•

The document number could be used, for example, as a cross-reference to the material’s blueprint.

Material Master: MRP View

Figure 19: Material Master: MRP View • • •

•

•

•

The procurement type defines whether the material is produced in-house, is procured externally, or both. The MRP controller is a person or group responsible for planning material requirements. The in-house production time is independent of the order quantity. It is used to determine dates for planned orders in materials planning, if order quantity-dependent times do not exist. The MRP type determines whether and how the material is planned. For example, the material could be planned using traditional MRP, or it could be planned using reorder point planning. The lot size key determines the lot-sizing procedure the system uses to calculate the quantity to be produced or procured. Examples include fixed order quantity, lot-for-lot and period lot sizes. The MRP view of the material master is plant-dependent.

Material Master: Work Scheduling View

Figure 20: Material Master: Work Scheduling View

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The work scheduling view of the material master is plant-dependant. The production scheduler is the person or group in production activity control that is responsible for the material. The lot-size dependent in-house production time is made up of several fields: • • • •

Setup time, which is independent of lot size Processing time, which depends on lot size Interoperation time, which is independent of lot size Base quantity, which relates to processing time

These fields can be updated directly from the routing. The work scheduling view of the material master is plant-dependent.

Material Master: Accounting View

Figure 21: Material Master: Accounting View The price control indicator determines whether the stock of a material is valued at standard price or moving average price. Prices are expressed in the currency assigned to the company code. The moving average price and the standard price are often referred to as the moving average cost and the standard cost. For each customizing setting, the accounting view of the material master can be plant or company-code specific.

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Exercise 5: Material Master Exercise Objectives After completing this exercise, you will be able to: • Describe the organizational levels and views of the material master • Display the material master

Business Example Task 1 You will display several views of the material master of a pump, and will answer questions about each view. 1.

Display the basic data view of material T-F1##.

2.

Select Basic Data 1 in the pop-up window after you enter the material. Fill in the table with the values you see on the screen. Description Base unit of measure Net weight Unit of weight

3.

What is the material type?

Task 2 1.

Next, display other views of T-F1##. Choose Select view(s) then select MRP 2, Work scheduling, and Accounting 1 in the pop-up window. The system asks you to enter Organizational levels. This screen did not appear in 1-1 when you only wanted to see Basic Data. Why does it appear now? Enter Plant 1000.

2.

In the MRP 2 view, which value is entered in the Procurement type field?

3.

Call up the R/3 Help function for the Procurement type field. What does the procurement type mean?

4.

Call up the technical information for R/3 Help. What is the field name in the database called?

5.

What are the possible entries in the Procurement type field? Continued on next page

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6.

In the Work scheduling view, what value is assigned to the Production scheduler field?

7.

What is the lot-size dependent in-house processing time?

8.

In the Accounting 1 view. what value is assigned to the Price control field?

9.

What is the moving average price?

10. What is the standard price? 11. What is the currency of these prices?

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Solution 5: Material Master Task 1 You will display several views of the material master of a pump, and will answer questions about each view. 1.

Display the basic data view of material T-F1##. a)

2.

Logistics → Production → Master Data → Material Master → Material → Display → Display current.

Select Basic Data 1 in the pop-up window after you enter the material. Fill in the table with the values you see on the screen. Description Base unit of measure Net weight Unit of weight a)

3.

Description

Pump

Base unit of measure

Pc

Net weight

250

Unit of weight

Kg

What is the material type? a)

Finished Product Hint: Look at the top of the screen

b)

Select the green arrow to go back to the initial screen.

Task 2 1.

Next, display other views of T-F1##. Choose Select view(s) then select MRP 2, Work scheduling, and Accounting 1 in the pop-up window. The system asks you to enter Organizational levels. This screen did not appear in 1-1 when you only wanted to see Basic Data. Why does it appear now?


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Enter Plant 1000. a) 2.

In the MRP 2 view, which value is entered in the Procurement type field? a)

3.

E, F, blank or X.

In the Work scheduling view, what value is assigned to the Production scheduler field? a)

7.

BESKZ (in the table MARC). Close the R/3 Help window.

What are the possible entries in the Procurement type field? a)

6.

Place the cursor on the relevant field and select F1. The indictor that determines how a material is procured.

Call up the technical information for R/3 Help. What is the field name in the database called? a) b)

5.

E (in-house production).

Call up the R/3 Help function for the Procurement type field. What does the procurement type mean? a) b)

4.

These views are plant specific. The basic data view is independent of the plant.

0##.

What is the lot-size dependent in-house processing time? a)

Answers may vary (for example, 12.65 [days] per 100 [Pc]). Note: From time to time, the value can be changed by a Live System.

8.

In the Accounting 1 view. what value is assigned to the Price control field? a)

9.

S (Standard price).

What is the moving average price? a)

1235,41. Note: From time to time, the value can be changed by a Live System.


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10. What is the standard price? a)

1292,70. Note: From time to time, the value can be changed by a Live System.

11. What is the currency of these prices? a)

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UNI.


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Lesson Summary You should now be able to: • Describe the basic structure of the material master

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Lesson: BOM

Lesson: BOM Lesson Overview This lesson will explain what a Bill of Material (BOM) is, the different view associated with the BOM, and how the BOM is used within Production Planning. Also, this lesson will cover the different types of BOMs — Single-Level and Multi-Level.


Display the major PP master data objects: BOMs, Work centers, Routings, Cost data

Business Example A Multi level Bill of Material has been defined for a Pump Assembly and the sub-assemblies that make up the structure of the pump.

Bill of Material (BOM)

Figure 22: BOM Definition Bills of material (BOMs) contain essential master data for integrated materials management, production control and product costing.

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Figure 23: BOMs in Production Planning The result of the design phase is an engineering drawing and a list of the parts required to produce the product. The product and its component list is the bill of material. The data stored in a bill of material serves as a basis for activities such as: • • • •

MRP Work scheduling Procurement Product costing

Figure 24: Single-Level Bill of Material BOMs are stored in the SAP System as single-level BOMs, which consist of a BOM header and the BOM items. Data that refers to the complete bill of material is maintained in the header, and data that refers to a component is maintained in the item.

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Lesson: BOM

You can specify which material types are permitted in the BOM header and which material types are permitted as components.

Figure 25: Multi-Level Bill of Material Structure • • • • •

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A group of parts that is assembled, and that forms either a finished product or a component of a finished product, is an assembly. A single-level bill of material describes an assembly by means of components and their quantities. An assembly with components that are themselves assemblies is a multi-level bill of material. In R/3 all bills of material are created and maintained as single-level bills. A multi-level BOM structure is expanded automatically in the R/3 System in MRP and Product Cost Planning. It can also be expanded as a master data evaluation.


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Figure 26: BOM Category The bill of material category determines whether the bill is created for a material, a piece of equipment, a sales order and so on. To process a bill for a particular category, you must select the appropriate transaction. Then you choose whether you will create, change or display the bill. The equipment BOM category allows you to define the components that make up a piece of equipment. This is used in plant maintenance. If you use the document management functions in R/3, you can define a document BOM.

Figure 27: BOM Usage

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Lesson: BOM

• •

• •

The bill of material usage specifies the departments or functions within a company where the bill of material is used. A bill of material for an assembly with a usage of production is a separate bill than one for the same assembly with a usage of engineering. You can use the copy from function to create, for example, a bill with usage of production from a bill with usage of engineering. The sales order BOM category allows you to define components that must be picked for a sales order line item. This BOM is sometimes called a kit.

Figure 28: BOM Structure Data that refers to the complete bill of material is maintained in the header. • •

The BOM status governs whether the bill is active or inactive. The base quantity is the quantity to which all component quantities in the bill relate. For example, suppose the component usage is .0001 kilograms per one kilogram of the assembly. By using a base quantity of 10000 in the BOM header, we would express this relationship as 1 kilogram of the component per 10000 kilograms of the assembly.

Data that refers to a component is maintained in the item. Item data also includes, for example, whether the component is relevant for costing. If a component is placed in several locations on the assembly, it can be described as a sub-item.

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Figure 29: BOM Item Categories • • • •

You must assign an item category to every component when you add or change components in a bill of material. The item category influences the processing of the component. For example, the item category controls whether a material number is required, optional or not allowed for the component. A stock item must have a material master. A non-stock item, on the other hand, does not require that a material master record exist. It can also be stored in a material group.

Figure 30: BOM Effectivity

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Effectivity Period • • •

The effectivity period defines the time when a bill of material is valid. You can define a effectivity period for the bill as a whole, or for individual components of the bill. You can view the bill of material components that are valid on a single date, or on a range of dates.

Area of Effectivity •

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The area of effectivity defines which plants can use a bill of material.


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Lesson: BOM

Exercise 6: BOM Exercise Objectives After completing this exercise, you will be able to: • Display a single-level BOM structure • Display a multi-level BOM structure

Business Example —A bill of material (BOM) has been defined for a pump assembly as well as for the subassemblies and detail parts that are used to manufacture it.

Task Some of the components that make up the pump also have additional components. 1.

Call up the bill of material.

2.

You should see the bill of material categories that the system allows. What are they?

3.

Display the Material BOM for pump T—F1## in plant 1000. The BOM usage is 1(Production).

4.

What is the component number of item 0010?

5.

What are the component quantity and unit of measure?

6.

Is this component a stock item?

7.

Is this component in the BOM valid on January 1, 2000?

8.

Does a BOM exist for this component?

9.

Display the material BOM for component T-B3##.

10. What is the valid-to date of this bill of material? 11. What are the base quantity and unit of measure of this bill of material? 12. Now go to the Evaluations menu from the BOM pull-down menu and display a multi-level BOM explosion for pump structure T—F1## in plant 1000 for BOM Application Production General. 13. Write the material numbers, quantities and units of measure for the components of the multi-level pump structure in the boxes below. You can use this data in future exercises.


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Figure 31: Structure 1 14. How many single level BOMs are in this structure?

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Lesson: BOM

Solution 6: BOM Task Some of the components that make up the pump also have additional components. 1.

Call up the bill of material. a)

2.

Logistics → Production → Master Data → Bills of Material → Bill of Material.

You should see the bill of material categories that the system allows. What are they? a) Material BOM Document BOM Equipment BOM Functional location BOM Order BOM WBS BOM

3.

Display the Material BOM for pump T—F1## in plant 1000. The BOM usage is 1(Production). a)

4.

What is the component number of item 0010? a)

5.

Yes (item category = L).

Is this component in the BOM valid on January 1, 2000? a)

8.

1 PC.

Is this component a stock item? a)

7.

T-B1##.

What are the component quantity and unit of measure? a)

6.

Logistics → Production → Master Data → Bills of Material → Bill of Material → Material BOM → Display.

Yes (effective until 31.12.9999).

Does a BOM exist for this component? a)

Yes (assembly indicator is set).


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9.

LO050

Display the material BOM for component T-B3##. a)

You can display it in the same way as the previous task or, in the Item overview screen for material T-F1##, double click on the assembly indicator or the A column for T-B3#and select Continue.

10. What is the valid-to date of this bill of material? a) b)

Select header (hat icon) then Adm. Data tab. 31.12.9999.

11. What are the base quantity and unit of measure of this bill of material? a) b)

Select the Quants/Long txt tab. 1 Pc.

12. Now go to the Evaluations menu from the BOM pull-down menu and display a multi-level BOM explosion for pump structure T—F1## in plant 1000 for BOM Application Production General. a) b) c)

Logistics → Production → Master data → Bills of Material → Evaluation → BOM Explosion → Material BOM → Structure (Multi-level). Enter PP01 for BOM application and then click on the Execute button Material T-F1##, Plant 1000 and BOM Application PP01

13. Write the material numbers, quantities and units of measure for the components of the multi-level pump structure in the boxes below. You can use this data in future exercises.


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Lesson: BOM

Figure 32: Structure 1 a)

Figure 33: Structure 2 14. How many single level BOMs are in this structure? a)

Five Note: T-F1##, as a BOM item, is a document, not a material.

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Lesson Summary You should now be able to: • Display the major PP master data objects: BOMs, Work centers, Routings, Cost data

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Lesson: Work Center

Lesson: Work Center Lesson Overview Work Centers are critical data objects in manufacturing. They are the source of many capacity, scheduling and costing calculations, and are used by the routings.


Describe a Work Center

Business Example The Precision Pump Company has defined work centers to be used for discrete manufacturing. The Master data has been detailed to include capacity and scheduling information and the work centers have been assigned to a cost center.

Work Center

Figure 34: Work Center A work center can represent something as general as a geographic location, or as specific as a particular machine within a department in a plant. A work center is assigned to a plant.

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Figure 35: Work Center Data • •

• • •

•

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The data in a work center is organized by function. The Basic data screen, for example, is where the standard value key is specified. The standard value key contains one or more standard value parameters, including setup and labor. The Default screen contains data defaulted to the operation in the routing. The Capacity screens control how the available capacity at the work center is calculated. More than one capacity can be entered. The Scheduling screen controls which capacity is used for scheduling, and how it is calculated. Only one capacity from the capacity screen can be the basis for scheduling – this is the bottleneck capacity. The Links screen is where the work center is linked to a cost center, and where it is linked to human resource data such as people and qualifications.


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Lesson: Work Center

Figure 36: Work Center Hierarchy • • • • •

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Work centers can be structured hierarchically. Production work centers are used in routings. Work center 101, for example, is a production work center. Statistical work centers are used exclusively for summarizing data. Work center group 102, for example, is a statistical work center. A work center can exist in several work center hierarchies. Work centers from multiple plants can exist in a work center hierarchy.


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Lesson: Work Center

Exercise 7: Work Centers Exercise Objectives After completing this exercise, you will be able to: • Display the work center • Specify the work center views

Business Example The production steps to manufacture the pump take place in many work centers. You will examine master data of one of those work centers.

Task 1.

Display the basic data view of the work center T-M## in plant 1000.

2.

What are the other four work center views that can be displayed?

3.

Look at the basic data view. What is the standard value key for this work center?

4.

What are the standard value parameters associated with the standard value key?

5.

Display the Costing View. To which cost center is this work center assigned?

6.

Display the capacities view. Which capacity category and description are assigned to this work center? Note: More than one capacity category can be assigned to a work center.

7.

Select the capacity category 002 (Labor) and select Capacity header. What factory calendar ID is assigned to this work center (for this capacity category)?

8.

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What time does this work center start work each workday, and what time does it finish work (for this capacity category)?


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Solution 7: Work Centers Task 1.

Display the basic data view of the work center T-M## in plant 1000. a)

2.

Logistics → Production → Master Data → Work Centers → Work Center → Display.

What are the other four work center views that can be displayed? a)

Basic data Default values Capacities Scheduling Costing

3.

Look at the basic data view. What is the standard value key for this work center? a)

4.

SAP2

What are the standard value parameters associated with the standard value key? a)

Setup Machine Labor Standard value 1 Standard value 2 Standard value 3

5.

Display the Costing View. To which cost center is this work center assigned? a)

6.

4230 (Assembly pumps)

Display the capacities view. Which capacity category and description are assigned to this work center? Note: More than one capacity category can be assigned to a work center. a)

002 Labor Continued on next page

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Lesson: Work Center

7.

Select the capacity category 002 (Labor) and select Capacity header. What factory calendar ID is assigned to this work center (for this capacity category)? a)

8.

What time does this work center start work each workday, and what time does it finish work (for this capacity category)? a)

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01 (Factory calendar German Standard)

Start 07:00:00, Finish 17:00:00


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Lesson Summary You should now be able to: • Describe a Work Center

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Lesson: Routing

Lesson: Routing Lesson Overview This lesson will explain the concept of Routings, which is the operations to be performed, the order of work and which work centers are required. This lesson will also cover Routing groups and how a router fits into the production process. This lesson will also teach you about the link between the Cost Data, the Work Center and the Routing.


Describe what Routings are within R/3

Business Example The Precision Pump Company has defined a set of work instructions, a router, describing the assembly process to assemble a finished pump product.

Routings

Figure 37: Routings: Overview A routing contains the operations to be performed, their sequence and the various work centers involved to manufacture an item. A routing can include: •

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The standard values (times) for activities such as setup and processing


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• • • • •

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Work centers where the operations are performed The material components assigned to the operations Any production resources or tools necessary to perform the operation Inspection characteristics for operations where inspections are carried out Instructions of what to do at each operation

Figure 38: Routings: Groups For each material you can create a routing for a different: • • •

Lot size range Usage (production, rework, prototype, etc.) Status (in creation, released, etc.)

For example, the routings contained in the routing group could be for: • • • •

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Pump T-1 for a lot size of 101 -100 Pump T-F101 for a lot size of 101 - 99,999,999 Pump T-F101 for a prototype version Pump T-F202, a similar pump


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Lesson: Routing

Figure 39: Routings: Sequences Each routing (group counter) has a standard sequence of operations. When you create a new routing and its operations, you automatically create a standard sequence. The standard sequence is the default method of manufacture. Each routing can have one or more alternative sequences and one or more parallel sequences. An alternative sequence gives you the option to choose other operations in place of operations in the standard sequence. You can choose an alternative sequence, for example, when a machine is unavailable. A parallel sequence allows different operations to be performed at the same time.

Figure 40: Work Center Relationship to Operation When you create an operation in a routing, you enter the work center where the operation is performed. Data in the work center affects the operation as follows:

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•

• •

•

LO050

Default values, such as the operation control key, are copied to the operation from the work center. The control key determines the operations to be carried out. The default values can be changed in the operation if necessary. The activity types affect how the operation is costed. The standard value key assigned to the work center consists of standard value parameters that you have defined. For example, standard value parameters are setup and labor. The work center, where the operation is performed, can perform setup and labor activities. With the standard value check, performed at the work center level, you can control whether the standard value in the operation can be, should, or must be entered for the task list.

Figure 41: Component Assignments By default, all components of a bill of material are assigned to the first operation in the routing. You can assign a component to another operation in the routing.

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Lesson: Routing

Production Resources/Tools (PRT)

Figure 42: Production Resources/Tools (PRT) Production Resources/Tools (PRTs) are tools that do not belong to a specific location and that are necessary in production. A measuring device or a fixture is an example of a production resource/tool. A PRT gets used by the process, and may be consumed (i.e., “worn out,” as in a tool bit), but does not become part of the product being manufactured. A PRT is required to perform the operation to which it is assigned. Different categories of master records can be used for managing PRTs. •

•

•

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If you create a PRT with a material master record, you can use the materials management functions of procurement, Sales and Distribution (SD), inventory management, classification, document assignment, configuration, scheduling, quantity calculation, usage, and consumption counters. If you create a PRT with an equipment master record, you can use the materials management functions of procurement, SD, inventory management, classification, document assignment, configuration, scheduling, quantity calculation, usage, consumption counters, and the functions for plant maintenance, for example, maintenance planning. If you create a PRT with a PRT-specific master record, you can only use the materials management functions of document assignment, configuration, scheduling, quantity calculation, usage, and consumption counters. The functions of procurement, SD and


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inventory management are not possible. Data maintenance is, however, less expensive. The availability check is restricted by the query of the status in the PRT master. If you create a PRT with a document info master record, the functions of procurement, SD and inventory management are not possible; you can only use the functions of document assignment, configuration, scheduling, usage, consumption counters, and the functions of the document management system.

Production Planning (PP) Costing

Figure 43: PP Costing • • • •

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A work center is assigned to only one cost center. Several work centers can be assigned to the same cost center. The activity types used in a work center must be defined in the cost center to which the work center is assigned. The price (cost) assigned to the activity type is defined in the cost center.


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Lesson: Routing

Figure 44: PP Costing Data • •

• •

• •

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Cost centers are defined as controlling master data in R/3. Activity types are also defined in the controlling area. When an activity type is assigned to a cost center, it is given a value, for example, in dollars per hour. The work center is assigned to a cost center. For example, work center Lathe01 is assigned to cost center 4420. The standard value parameters (which are associated with a standard value key) are assigned activity types in the work center. The activity types used in the work centers, have to be defined in the work center cost center. Standard values are assigned in the routing. For example, the standard value for setup in operation 20 is one hour. Using typical formulas and efficiency rates, the system computes the planned setup cost for operation 20 as 70.00 dollars.


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Lesson: Routing

Exercise 8: Routings Exercise Objectives After completing this exercise, you will be able to: • Display a routing • Modify material component assignments in the operations

Business Example Now we will look at the routing for the pump. Notice that the operations are performed in various work centers. We will see that the components of the BOM are assigned to the operations, and we will change the assignment of one component from one operation to another operation.

Task 1.

Go to the Change routing screen. Enter material T-F1## and plant 1000. Go to the Header detail screen (click on the "hat"or header icon). What is the status of this routing? What are the group and the group counter? For what lot size range is this routing valid?

2.

Call up the Sequence overview screen by selcting the Sequence overview icon. Does this routing have a standard sequence? Does this routing have an alternative sequence? Does this routing have a parallel sequence?

3.

Select the standard sequence line then call up the Operation overview screen by selecting the Operation overview icon. Fill in the table below with the values you see on the screen. You can use this data in future exercises. Operation

Work Center

Description


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Select the first operation and choose Details → Operation. What are the base quantity and operation unit of measure of this operation? What are the standard value and unit of measure for the amount of labor required to make the base quantity? Note the work center where this operation is performed. Is the list of Standard value parameters displayed on this screen the same as those you wrote down in the previous exercise?

5.

Go to the CompAlloc screen. Components are assumed to be assigned to the first operation. However, we can assign them to another operation. What is the first component in the item overview? Select the component, then select New assignment and assign the component to operation 20 (of sequence 0). Why might we want to assign a component to an operation other than the first operation?

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Lesson: Routing

Solution 8: Routings Task 1.

Go to the Change routing screen. Enter material T-F1## and plant 1000. Go to the Header detail screen (click on the "hat"or header icon). What is the status of this routing? What are the group and the group counter? For what lot size range is this routing valid? a) b) c) d)

2.

Logistics → Production → Master Data → Routings → Std Routing → Change 4 (Released general) Various…for example, 50000318 / 1 1 to 99,999,999 PC

Call up the Sequence overview screen by selcting the Sequence overview icon. Does this routing have a standard sequence? Does this routing have an alternative sequence? Does this routing have a parallel sequence? a) b) c)

3.

Yes No No

Select the standard sequence line then call up the Operation overview screen by selecting the Operation overview icon. Fill in the table below with the values you see on the screen. You can use this data in future exercises. Operation

Work Center

Description


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a)

4.

Operation

Work Center

Description

0010

T-M##

Material staging

0020

T-V##

Cut raw material

0030

T-L##

Cover and paint

0040

T-E##

Preassembly of pump

0050

T-F##

Final assembly of pump

0060

T-P##

Inspection and delivery

Select the first operation and choose Details → Operation. What are the base quantity and operation unit of measure of this operation? What are the standard value and unit of measure for the amount of labor required to make the base quantity? Note the work center where this operation is performed. Is the list of Standard value parameters displayed on this screen the same as those you wrote down in the previous exercise? a) b) c) d)

5.

Detail → Operation detail 1 PC 10 MIN (per 1 PC) Yes

Go to the CompAlloc screen. Components are assumed to be assigned to the first operation. However, we can assign them to another operation. What is the first component in the item overview? Select the component, then select New assignment and assign the component to operation 20 (of sequence 0). Why might we want to assign a component to an operation other than the first operation? a) b)

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T-B1##. The component may be needed in an operation other than the first.


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Lesson: Routing

Exercise 9: Routings/Cost Data Exercise Objectives After completing this exercise, you will be able to: • Display a Cost center • Display an activity type

Business Example The activity types are defined and assigned to a cost center in the controlling area. When you create a work center, you assign it to a cost center and specify activity types for the standard value parameters. You will see how the controlling data of cost center and activity types connect to the production planning data of work centers and routings.

Task 1.

Display information about the cost center 4230, which is the cost center to which work center T-M## is assigned. One way to do this is from a routing where this work center is used. Go to the Routing display screen for material T-F1##, plant 1000. Select Operation overview. Select the operation carried out in work center T-M##.

2.

What is the cost center?

3.

What is the effectivity period of this cost center?

4.

Display the activity types assigned to this work center.

5.

Is 1421 one of the activity types assigned to this cost center?

6.

In Exercise 7 step 5 we saw the cost center to which work center T-M## was assigned. Go back to that screen. To which standard value parameter is activity type 1421 assigned?

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Unit 2: Master Data

LO050

Solution 9: Routings/Cost Data Task 1.

Display information about the cost center 4230, which is the cost center to which work center T-M## is assigned. One way to do this is from a routing where this work center is used. Go to the Routing display screen for material T-F1##, plant 1000. Select Operation overview. Select the operation carried out in work center T-M##. a) b) c) d)

2.

What is the cost center? a)

3.

From the Cost center basic data: Basic screen, select Environment → Where-used list → Activity types.

Is 1421 one of the activity types assigned to this cost center? a)

6.

January 1, 1994 to December 31, 9999

Display the activity types assigned to this work center. a)

5.

4230 (Assembly pumps)

What is the effectivity period of this cost center? a)

4.

Logistics → Production → Master data → Routings → Routings → Standard Routings → Display. Material T-F1## Plant 1000 go to operations overview. Select the operation carried out in work center T-M## (op. 10). Environment → Operation → Cost Center

Yes

In Exercise 7 step 5 we saw the cost center to which work center T-M## was assigned. Go back to that screen. To which standard value parameter is activity type 1421 assigned? a) b) c)

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Logistics → Master Data → Work Center → Change Enter Work Center T-M## Go to the Costing tab.


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Lesson: Routing

Lesson Summary You should now be able to: • Describe what Routings are within R/3

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Unit Summary

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Unit Summary You should now be able to: • Explain the organizational levels used by the R/3 manufacturing business process • Describe the basic structure of the material master • Display the major PP master data objects: BOMs, Work centers, Routings, Cost data • Describe a Work Center • Describe what Routings are within R/3

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Test Your Knowledge


List the critical organizational levels for the SAP R\3 manufacturing business process.

2.

Material master data can be stored in the material master record in which of the following forms: Choose the correct answer(s).

A B C D E 3.

Descriptive data (name, size, and dimension) Data that controls system functions (e.g. MRP type) Data that shows shipping destination Personnel data All of the above

Basic data in the material master is applicable to the entire company and is stored at the plant level. Determine whether this statement is true or false.

True False 4.

BOMs contain essential master data for which of the following? Choose the correct answer(s).

A B C D E 5.

Integrated materials management Production control Product costing Procurement All of the Above

Data in a work center is organized by function and structured hierarchically. Determine whether this statement is true or false.

True False

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Test Your Knowledge

6.

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The structure of a routing contains which of the following? Choose the correct answer(s).

A B C D E

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Operations to be performed Sequence Work centers involved to manufacture an item Materials required to manufacture an item All of the above


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Test Your Knowledge

Answers 1.

List the critical organizational levels for the SAP R\3 manufacturing business process. Answer: Company code, Plant, and Storage Location Company code An independent accounting unit that contains a balanced set of books and does not extend over national boundaries Plant Subdivides an enterprise according to production, procurement, or materials planning Storage location Identifies where material is stored

2.

Material master data can be stored in the material master record in which of the following forms: Answer: E Material master data can be stored as descriptive data, data that controls system functions, data that shows shipping destination, and personnel data.

3.

Basic data in the material master is applicable to the entire company and is stored at the plant level. Answer: False Basic data in the material master is applicable to the entire company, but is stored at the client level. Basic data includes the material number, the material group, the unit of measure, and conversion factors for alternative units of measure.

4.

BOMs contain essential master data for which of the following? Answer: A, B, C BOMs contain integrated materials management, production control and product costing data.

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5.

LO050

Data in a work center is organized by function and structured hierarchically. Answer: True Data is organized by function and structured hierarchically.

6.

The structure of a routing contains which of the following? Answer: A, B, C Operations to be performed, sequence, and work centers are contained in a routing structure.

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Unit 3 Planning and Execution with Final Assembly Unit Overview Here we will perform a complete planning and execution process for manufacturing. The emphasis will be on breadth, not depth. This lesson will explain strategy 40 in detail so that the participant may understand the system better. Not all strategies that are discussed here will fit at all companies.

Unit Objectives After completing this unit, you will be able to: • • • • • •

Describe the principles of the Planning with Final Assembly planning strategy Create a product group, a sales plan and a production plan Explain the disaggregation process Carry out an MRP run Describe the consumption process Create and process a production order

Unit Contents Planning with Final Assembly .................................................. 92 Sales and Operations Planning (SOP) ........................................ 97 Exercise 10: Sales & Operations Planning ..................................107 Demand Management..........................................................112 Exercise 11: Demand Management ..........................................117 MRP ..............................................................................122 Exercise 12: MRP...............................................................137 Consumption by Sales Orders ................................................142 Exercise 13: Consumption by Sales Orders.................................145 Production Orders...............................................................152 Exercise 14: Production Orders...............................................167

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Unit 3: Planning and Execution with Final Assembly

LO050

Lesson: Planning with Final Assembly Lesson Overview This lesson will introduce the concept of planning strategies in R/3, then discuss the specific strategy of Planning with Final Assembly.


Describe the principles of the Planning with Final Assembly planning strategy

Business Example Precision Pump makes several pump models that are popular with their industrial customers. You will need to decide which planning strategy to use when the customer places their order.

Planning Strategies

Figure 45: Planning Strategies A requirement is a quantity of material that is needed on a certain date in a plant. Independent requirements are unrelated to the demand for other materials. Planned independent requirements and sales orders are independent requirements.

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Lesson: Planning with Final Assembly

LO050

A planning strategy specifies any of several possible material planning procedures. Some planning strategies support a make-to-stock environment. For example, we could plan production/procurement based on a forecast, then fill customer orders from existing stock. Some planning strategies support a make-to-order environment. For example, we could wait for a customer order before we start production/procurement. Some planning strategies support a combination of make-to-stock and make-to-order. For example, we could build the subassemblies based on a forecast. Then we would wait for a customer order before assembling them into a finished product.

Make-to-Stock Production

Figure 46: Make-to-Stock Production •

• •

•

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Make-to-stock production means we build stock in anticipation of customer demand. We ship the customer order from our stock of finished goods. SAP has several planning strategies that support make-to-stock production. As we will see in this unit, sales orders will consume the planned independent requirements with the Planning with Final Assembly strategy. As we will see in the next unit, sales orders will not consume the planned independent requirements with the make-to-stock production strategy.


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•

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The planning strategies are sometimes referenced by their two-character identifier. Thus, Planning with Final Assembly is also called strategy 40.

Planning with Final Assembly

Figure 47: Planning with Final Assembly •

•

• •

The required quantities and dates of the planned independent requirements are contained in the demand program. The demand program is one of the main inputs to the material planning process. For the planning with final assembly strategy, we enter the planned independent requirements (forecasts) at the finished product level. Sales orders for the finished products are entered in the Sales and Distribution (SD) module. Up until the finished product, the production/purchasing process is initiated after running MRP. Sales orders are filled from stock.

Figure 48: Planning with Final Assembly

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Lesson: Planning with Final Assembly

The demand program for the Planning with Final Assembly planning strategy takes sales orders into account. Sales orders offset the planned independent requirements within a time period. This process is called consumption. If sales orders for the finished product exceed the plan, the system will plan additional production and/or procurement to satisfy this demand. If sales orders are less than the plan, warehouse inventory is increased. For example, if the sales order quantity during a period is 110 and the planned independent requirement quantity (forecast quantity) is 100, the system will plan to build 110. If the sales order quantity during a period is 80 and the planned independent requirement quantity (forecast quantity) is 100, the system will plan a quantity of 100. If no more sales orders come in during the period for that item, 20 pieces will be available for the next period.

Figure 49: Planning with Final Assembly Planned independent requirements drive the manufacturing and purchasing processes for items planned with the Planning with Final Assembly planning strategy. A finished product could also include a lower-level bill of material item, such as a spare part. A sales order reduces the forecast quantity when it is confirmed. This process is called consumption. However, if the sales order is rescheduled or canceled before shipment, the forecast quantity is recalculated. The forecast quantity is deleted in the demand program when the sales order quantity is shipped. Any unused forecast can be deleted with reorganization programs.

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Lesson Summary You should now be able to: • Describe the principles of the Planning with Final Assembly planning strategy

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Lesson: Sales and Operations Planning (SOP)

LO050

Lesson: Sales and Operations Planning (SOP) Lesson Overview This lesson will show the basic functions of Sales and Operations Planning (SOP) to create a product group, create a sales plan, create a production plan and disaggregate the plan.


Create a product group, a sales plan and a production plan

Business Example During the course of the year, companies will forecast their sales of pumps for the entire year. The forecasted sales can be used to forecast the production of the pumps.

Sales and Operations Planning (SOP)

Figure 50: Sales and Operations Planning

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Figure 51: Sales and Operations Planning • • •

• • •

98

Sales and operations planning (SOP) is a planning and forecasting module within the logistics area of R/3. We can use SOP to help us forecast future sales, develop production plans and perform feasibility studies. A sales plan could be developed, for example, from information in the sales module of R/3. We could use built-in forecasting tools to project future sales. A production plan could be developed based on the sales plan. The feasibility of the production plan could be checked at a rough-cut level against key resources. If necessary, we can change the plan. We use a planning table in SOP, which resembles a spreadsheet, to helps us perform these functions.


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Product Groups

Figure 52: Product Groups Standard SOP uses product groups to help in the planning process. A product group can be thought of as a product family. It groups together products with similar planning characteristics, and may have other product groups as its members. For example, product group 1 has product group A and product group B as its members. The lowest product group in the hierarchy must have materials as its members. Product groups require a proportion factor. This is used when a sales plan or a production plan at a higher level is disaggregated to a lower level. The sum of the proportion factors at one planning level is usually 100 percent. A proportion factor could be zero percent.

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SOP Process Flow

Figure 53: SOP Process Flow The sales plan specifies how many units of each finished product or product group the company predicts it will sell. The production plan usually is derived from the sales plan. We can check the feasibility of the production plan using rough-cut capacity estimates on key resources. When we disaggregate a plan, we transfer it to a lower level of the product group hierarchy using the proportion factors. Ultimately, a material plan is transferred to demand management. After the transfer, planned independent requirements exist for the materials on the lowest level of the product group.

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SOP Planning Table

Figure 54: SOP Planning Table The SOP planning table is where we develop our sales and production plans. A planning table exists for all members of the product group hierarchy. The standard SOP planning table has rows for the sales plan, the production plan, the stock level (system calculated), the target stock level, the days’ supply (system calculated), and the target days’ supply. The time periods in the planning table could be days, weeks or months, or a combination. We also may define other time periods that correspond, for example, to accounting periods or sales periods.

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Creating a Sales Plan

Figure 55: Creating a Sales Plan After we develop our product groups we can develop our sales plans. We can create a sales plan in several ways: • • • • •

Transferring data from the sales information system (SIS) Transferring data from the controlling/profitability analysis module (CO/PA) Using history to forecast future sales Transferring data from another product group Manual entry

The distribution function allows us to create or manipulate values in the cells. For example, we could increase the values in a range of cells by 5 percent.

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Creating a Production Plan

Figure 56: Creating a Production Plan Once we have developed a sales plan, we can create a production plan based on our sales plan. We could, of course, manually create a production plan, but another method is to use the synchronous-to-sales function in SOP. This creates a production plan that is equal to the sales plan in all periods. Because the production is equal to sales, the calculated values for stock level and days’ supply are zero.

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Figure 57: Creating a Production Plan We can also create a production plan by using the target stock level function in SOP. We must first determine what stock level we wish to maintain. We then enter the values on the target stock level row. Next we create the production plan using the target stock level function. This takes into account our sales during the period and also the stock quantities we wish to hold. In addition to the production quantities, the system also calculates the stock level and days’ supply. For example, the stock level depends on the calendar. In June, the calendar has 21 available days. We anticipate selling 1200 pieces in 21 days, or 57.143 units per day. A stock level of 200 means a days’ supply of 3.50. Note: The places after point function in SOP allows us to see decimals.

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Figure 58: Creating a Production Plan We can also create a production plan based on a days’ supply of stock rather than on absolute quantities. We must first determine the stock level (in days) that we wish to maintain, and enter the values on the target days’ supply row. Next we create the production plan using the target days’ supply function. This takes into account our sales during the period and the stock quantities we wish to hold. In addition to production quantities, the system also calculates the stock level and days’ supply. The stock level depends on the calendar. In June, for example, the calendar has 21 available days. We anticipate selling 1200 pieces in 21 days, or 57.143 units per day. We wish to maintain four days’ supply of stock, or 229 pieces.

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Exercise 10: Sales & Operations Planning Exercise Objectives After completing this exercise, you will be able to: • Create a product group • Create a sales plan • Create a production plan

Business Example Marketing has supplied us with their six-month sales forecast for the pump product group. We will use the Sales and Operations Planning module to enter the forecast. Then we will create a production plan for T-F1##, which is one of the pumps in the pump product group. Our aim is to preconfigure a user-defined general SAP menu in the R/3 System. The transaction options are then specified and restricted according to the role (activity group) of the user.

Task Using a preconfigured SAP menu tree, we will create a product group for some of our common pumps, generate a sales plan, and from that plan generate a production plan with the intent of creating a three-day cushion of inventory for one of the months. 1.

First, call up the preconfigured part of the SAP menu tree and use the specified role (activity group) of this unit, which is LO0501 (LO050 activity Group I).

2.

We will be using the Planning with Final Assembly strategy to plan our pump in this unit, so we want to be sure the correct values are set in the system. For material T-F1## in plant 1000, examine the MRP 3 view of plant 1000. Locate the Strategy group field and change its value to 40 (Planning with final assembly).

3.

Create product group PG-##, description Pump Product Group ## in plant 1000 in sales and operations planning. The base unit of measure is PC. The product group members are Materials. Use the following data.


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4.

108

LO050

Member Number

Plant

Aggregation Factor

Proportion(%)

T-F1##

1000

1

60

T-F2##

1000

1

40

Enter the marketing department’s six-month sales plan. After that, create our production plan. Enter the sales plan for your product group PG-## in plant 1000. When the Define Version pop-up window appears, do not use the system-generated number. Instead, enter 7## as your version number and Version 7## as your version description. Use the following data for the Sales line of the planning table, where Month is equal to this month. For example, if this month is April, then month+2 is June. Month+2 Month+3 Month+4 Month+5

Month+6 Month+7

200

200

200

300

300

200

5.

Due to uncertainty of market demand, management has decided to maintain three days’ inventory supply in month+3 only. Add this to your plan.

6.

Create a production plan based on target days’ supply of inventory.

7.

Fill out the table below with the production plan the system has calculated.


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Solution 10: Sales & Operations Planning Task Using a preconfigured SAP menu tree, we will create a product group for some of our common pumps, generate a sales plan, and from that plan generate a production plan with the intent of creating a three-day cushion of inventory for one of the months. 1.

First, call up the preconfigured part of the SAP menu tree and use the specified role (activity group) of this unit, which is LO0501 (LO050 activity Group I). a) b) c)

Choose Menu → Display menu of an activity group or select Other menu. In the window that follows, select the activity group LO050I using Find. You can return to the standard afterwards by choosing Menu → SAP Menu or

2.

We will be using the Planning with Final Assembly strategy to plan our pump in this unit, so we want to be sure the correct values are set in the system. For material T-F1## in plant 1000, examine the MRP 3 view of plant 1000. Locate the Strategy group field and change its value to 40 (Planning with final assembly). a) b)

3.

Logistics → Production → Master Data → Material Master → Material → Change → Immediately(MM02).

Create product group PG-##, description Pump Product Group ## in plant 1000 in sales and operations planning. The base unit of measure is PC. The product group members are Materials. Use the following data. Member Number

Plant

Aggregation Factor

Proportion(%)

T-F1##

1000

1

60

T-F2##

1000

1

40

a) 4.

SAP Standard Menu .

Logistics → Production → SOP → Product Group → Create.

Enter the marketing department’s six-month sales plan. After that, create our production plan. Enter the sales plan for your product group PG-## in plant 1000. When the Define Version pop-up window appears, do not use the system-generated number. Instead, enter 7## as your version number and Version 7## as your version Continued on next page

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description. Use the following data for the Sales line of the planning table, where Month is equal to this month. For example, if this month is April, then month+2 is June. Month+2 Month+3 Month+4 Month+5

Month+6 Month+7

200

200

a) 5.

300

200

Logistics → Production → SOP → Planning → For Product Group → Create.

In the target days’ supply field for month+3, enter 3 days’ supply.

Create a production plan based on target days’ supply of inventory. a)

7.

300

Due to uncertainty of market demand, management has decided to maintain three days’ inventory supply in month+3 only. Add this to your plan. a)

6.

200

Edit → Create Production Plan → Target Days Supply.

Fill out the table below with the production plan the system has calculated. a) Month+2 Month+3 Month+4 Month+5 Month+6 Month+7 200 b)

110

Varies

Varies

300

200

200

Select Save.


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Lesson Summary You should now be able to: • Create a product group, a sales plan and a production plan

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Lesson: Demand Management Lesson Overview This lesson will explain how Demand Management funnels requirements from different sources to a standard format that MRP and MPS can use to plan. It will also introduce the concept of the stock/requirements list to show the current planning situation.


Explain the disaggregation process

Business Example Management will decide on a forecast that you will need to implement into a production plan.

Product Groups

Figure 59: Product Groups Standard sales and operations planning (SOP) uses product groups to help in the planning process. A product group can be thought of as a product family. It groups together products with similar planning characteristics, and may have other product groups as its members. For example, product group 1 has product group A and product group B as its members. The lowest product group in the hierarchy must have materials as its members.

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Lesson: Demand Management

Product groups require a proportion factor. This is used when a sales plan or a production plan at a higher level is "disaggregated" to a lower level. The sum of the proportion factors at one planning level is usually 100 percent. A proportion factor could be zero percent.

Demand Management

Figure 60: Transfer to Demand Management We can transfer planning data of all members of a single level product group (such as product group A) to demand management. We could also transfer planning data for one material (such as T-F101) to demand management. After this, planned independent requirements exist in demand management. We can have different planning scenarios for each product group structure, because each plan is saved with a version number and a description. Only one version is considered active, which is the default version: A00. We may transfer the active version or an inactive version to demand management. The plan that is sent to demand management is used in planning the material requirements.

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Figure 61: Demand Management

Figure 62: Demand Management Demand management is the link between top-level requirements planning (SOP) and materials planning (MPS and/or MRP). Input for the demand program can come from several sources: • • • •

114

The sales plan or the production plan from SOP A material forecast Manual entry Another program plan


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The result is a planned independent requirements version in demand management. Using the version management functions of demand management, we can create and compare various planned independent requirements versions for one material. Customer requirements can also be input to demand management in place of sales orders. Normally this is done only when the Sales and Distribution (SD) module is not used. Demand management determines the requirement dates and quantities of the materials we are planning. The planning strategies are determined using the settings for the strategy group in the material master. Which strategy is used for the planned independent requirement can be changed manually by entering a permitted requirements type in the planned independent requirement.

Figure 63: Demand Management • •

• •

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The planning horizon is unlimited. We can split periods into finer detail. For example, if the SOP plan we transferred to demand management was in monthly periods, we could split the requirements into weeks and/or days, or into user-defined lengths. We can do this for a material or a group of materials. We can create a change history of our plan, as well as descriptive texts. Planning data (sales or production quantities) can be transferred to demand management from an individual material (single transfer), or from all materials in a product group (multiple transfer).


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Stock/Requirements List

Figure 64: Stock/Requirements List • • • •

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The stock/requirements list is an important inquiry that shows the real-time view of stocks, receipts and requirements for a material. Each time the stock/requirements list is called up, the system reads the database for the appropriate information. This list is accessed by material, by plant or by MRP area. You can branch into various related transactions from the stock/requirements list. The structure and content can be configured to individual requirements using various filters and profiles.


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Exercise 11: Demand Management Exercise Objectives After completing this exercise, you will be able to: • Transfer the production plan for both material members of our product group, PG-##, to demand management

Business Example We will transfer the production plan created in the previous lesson to demand management. Because this will drive the materials planning process, we will confirm that the plan was correctly transferred.

Task We will track the transfer of requirements from SOP to demand management by monitoring the stock/requirements list for pump T-F1##. 1.

Create a second session and display the stock requirements list for Material T-F1## in plant 1000.

2.

Do any receipts or requirements exist for the pump?

3.

Transfer the production plan of product group PG-## in plant 1000 to demand management. Use the following data: Version: 7## Transfer strategy and period: Prod. plan for Mat. or PG members as a proportion of PG. From: Today (default) Invisible transfer: Check or Select. Active: Select

4.

What should be the independent requirement quantity for pump T—F1## in month+2?

5.

Examine the stock/requirements list for Pump T-F1##.

6.

What is the independent requirement for Pump T-F1## in month+2?

7.

Display the planned independent requirements in demand management for material T-F1##, plant 1000.

8.

Do these requirements match those on the stock/requirements list? Continued on next page

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9.

LO050

Is the Strategy Group the same as the one from the previous lesson (40)?

10. Will Customer Independent Requirements (Sales Orders) consume the Planned Independent Requirements? 11. Close the second session of R/3.

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Solution 11: Demand Management Task We will track the transfer of requirements from SOP to demand management by monitoring the stock/requirements list for pump T-F1##. 1.

Create a second session and display the stock requirements list for Material T-F1## in plant 1000. a)

2.

Do any receipts or requirements exist for the pump? a)

3.

System → Create Session. No receipts or requirements exist.

Transfer the production plan of product group PG-## in plant 1000 to demand management. Use the following data: Version: 7## Transfer strategy and period: Prod. plan for Mat. or PG members as a proportion of PG. From: Today (default) Invisible transfer: Check or Select. Active: Select a) b)

4.

What should be the independent requirement quantity for pump T—F1## in month+2? a)

5.

The proportion of T-F1## of product group PG-## is 60 percent. The product group requirement for month+2 = 200 pcs. Therefore, 200 pcs X .60 = 120 pcs.

Examine the stock/requirements list for Pump T-F1##. a)

6.

Logistics → Production → SOP → Disaggregation → Transfer Product Group to Planning. Execute Transfer now and confirm the warning message about the non-active version, by selecting Enter and Save the result.

Return to the session with the Stock requirements List and Select List → Refresh.

What is the independent requirement for Pump T-F1## in month+2? a)

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7.

Display the planned independent requirements in demand management for material T-F1##, plant 1000. a)

8.

Logistics → Production → Production planning → Demand management → Planned indep. reqmts → Display (MD63) .

Do these requirements match those on the stock/requirements list? a)

9.

LO050

Yes.

Is the Strategy Group the same as the one from the previous lesson (40)? a) b)

Select the Items tab. Yes.

10. Will Customer Independent Requirements (Sales Orders) consume the Planned Independent Requirements? a) b)

Goto → Additional data. Yes.

11. Close the second session of R/3. a)

System → Delete session .

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Lesson Summary You should now be able to: • Explain the disaggregation process

Related Information The stock/requirements list is taught in more detail in LO210: Production Planning.

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Lesson: MRP Lesson Overview This lesson will introduce the basic concepts of Material Requirements Planning (MRP) and show several ways R/3 can run MRP.


Carry out an MRP run

Business Example Your company has created independent requirements for the pump and must now create a production and procurement plan for the pump and its components.

Planning Procedures

Figure 65: MRP

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Lesson: MRP

Figure 66: Planning Procedures •

•

•

•

•

•

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Planning procedures automatically generate order proposals to purchasing and to production. R/3 planning procedures can be divided into Material Requirements Planning (MRP) and Consumption-based planning. In MRP, the system compares available stock plus planned receipts with demand. If the available quantity is less than the required quantity, an order proposal is created. Consumption-based planning procedures use past consumption data (history) to calculate future requirements. These procedures are sometimes used for externally procured materials or for low-value/low-demand items. Consumption-based planning can be divided into forecast-based and reorder point planning. Forecast-based planning uses the SAP forecasting module to calculate future requirements from historical data. Reorder point planning can be divided into automatic and manual reorder point planning. Automatic reorder point planning uses the forecasting module to determine the reorder point quantity. A reorder proposal is generated when the stock falls below the reorder point. In manual reorder point planning, you must specify the reorder point quantity in the material master record.


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Figure 67: MRP Overview •

•

•

•

•

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MRP analyzes the demand from sales orders and forecasts. If stock is needed then a planned order is created. A planned order consists of a suggested order quantity, a start date and a finish date. The bill of material of the planned order is expanded, creating dependent requirements. These are later processed by MRP to determine if planned orders are needed for the components. In order to replenish stock, we must convert the planned order to a production order (if it is for a manufactured item), or to a purchase requisition (if it is for a purchased item). MRP can create purchase requisitions directly, for purchased materials, depending on runtime settings. If the purchased material is part of a scheduling agreement with a vendor, MRP can create schedule lines. When the planned order is converted to a production order, the dependent requirements for its components become reservations.


December 2001

LO050

Lesson: MRP

MRP BOM Expansion

Figure 68: MRP BOM Expansion We’ll look at the MRP overview from the point of view of a bill of material (BOM). MRP begins by calculating demand for the finished product. This consists of sales orders and planned independent requirements. If we don’t have enough supply to cover this demand, MRP will create a planned order. The BOM of the planned order for the finished product is expanded. This creates dependent requirements for the assemblies. A dependent requirement is demand that is derived from the bill of material structure. At the next level of the bill, MRP calculates the requirement for each assembly. If we don’t have enough supply, MRP will create a planned order. The BOM of the planned order for each assembly is exploded. This creates dependent requirements for the raw materials. At the lowest level of the bill, MRP again calculates demand. If we don’t have enough supply, MRP will create a planned order (or a purchase requisition).

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Planning Without MRP Areas

Figure 69: Planning Without MRP Areas Without MRP areas, planning is at plant level. This means that all requirements for a material (dependent requirements, planned independent requirements, customer requirements, etc.) flow into MRP together for all storage locations, which are not planned separately or are not excluded from the planning. In-house production or external procurement are initiated to satisfy the requirements depending on the procurement type of the material. The MRP settings in the material master for the material are valid for the whole plant.

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Lesson: MRP

Planning with MRP Areas

Figure 70: Planning with MRP Areas Planning with MRP areas allows a greater differentiation in MRP. Planning is executed separately for each MRP area. For example, it is possible to plan the requirements for different production lines separately. In storage location MRP areas, one or several storage locations are grouped together to form an organizational unit. This unit is planned separately from the other plant and MRP areas in the MRP run. A receipt (procurement) or issue (requirement) element is assigned to a storage location MRP area over the storage location. A storage location may only be assigned to one MRP area. A material is assigned to an MRP area by creating an MRP area segment in the material master (in MRP 1 view). No actual change is made in MRP until the materials have been assigned to MRP areas. If no MRP area segment has been created, the system continues to plan the material in the plant MRP area only. A material can be assigned to several MRP areas. In addition, the material is assigned to the plant MRP area. For every MRP area, different MRP parameters can be assigned to a material so that MRP can be geared to the requirements in the individual MRP areas.

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Net Requirements Calculation

Figure 71: MRP: Net Requirements Calculation MRP determines how much supply is needed to satisfy demand in the net requirements calculation. The difference between the demand and the supply of an item is the shortage. This shortage quantity must be covered by one or more planned orders. The system calculates the quantity of the planned order according to the lot sizing procedure specified in the material master. For example, the shortage quantity may be 100 pieces, but the lot size defined in the material master MRP view is a minimum quantity of 250; therefore the planned order quantity will be 250 pieces.

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Lesson: MRP

Scheduling

Figure 72: MRP Scheduling After MRP calculates the planned order lot size, it must calculate the planned order finish date and the planned order start date. These dates are known as the basic dates of the planned order. The order finish date of the finished product’s planned order is based on the requirement date of the customer order or the planned independent requirement. To calculate the order start date, MRP backward schedules using lead-time information from either the material master or the routing. The order finish date of planned orders of the assemblies is based on the order start date of the finished product’s planned order. MRP backward schedules to determine the order start date of each. This process continues for purchase requisitions. This is done using the planned delivery time from the material master to determine the order start date.

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MRP Total Planning

Figure 73: MRP Total Planning Before the MRP planning run may be carried out: • •

MRP must be active for the plant (setting in customizing). MRP views must exist for materials to be planned in the plant.

In a total planning run, MRP plans all materials for a specific plant. This is called regenerative planning. You may also limit the planning run only to materials that have undergone a change relevant to planning since the last planning run. This is called net change planning, and requires fewer system resources. Changes relevant to planning include: • • • •

Goods issue Stock levels falling below the reorder point Certain changes to material master data, such as a lot size change A bill of material change

When planning within the planning horizon, the system only plans materials that have undergone a change relevant to planning. The planning horizon may be defined by plant, or by MRP group within a plant.

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Lesson: MRP

MRP Single-Item Planning

Figure 74: MRP: Single-Item Planning In single-item, multi-level planning, MRP plans all levels of the BOM. The planner has the option to display and/or change the planning results of each material during the planning process. In single-item, single-level planning, MRP plans only one material. If a planned order is created, its BOM is exploded to create dependent requirements for the next-level items. No further processing takes place.

Planned Orders

Figure 75: Planned Orders

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A planned order is created automatically by MRP when it encounters a material shortage. A planned order also may be created manually by the planner. If the planned order is for a manufactured part, it will contain the bill of material components, quantities and dates needed for manufacture. These are the source of the dependent requirements used in further MRP calculations. The planned order header contains the material number, the plant, the MRP area, the planned order quantity, master data and administrative information.

MRP List and Stock/Requirements List

Figure 76: MRP List and Stock/Requirements List The MRP list displays the results of the last planning run for a material. It remains unchanged until the next MRP run. The structure of the MRP list is similar to the structure of the stock/requirements list. The MRP list contains exception messages that can assist the planner. Exception messages indicate, for example, that an order should be postponed or that the safety stock quantity has been exceeded. The MRP list is created if we request it at the time of the MRP run.

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Lesson: MRP

Figure 77: MRP List and Stock/Requirements List You can evaluate the planning situation or the result of a planning run using the stock/requirements list or MRP list. You can use individual or collective access for this. The stock/requirements list is a dynamic list: it shows the current status of stock, requirements and receipts. Changes are immediately visible as soon as the stock / requirements list is called up or the elements are read from the database using the refresh function. The MRP list represents the result of the last planning run and therefore has a statistical nature. Changes that were made after the planning run are not visible. You can control whether an MRP list is to be created during the planning run. An MRP list and a stock/requirements list have the same basic structure: • • •

Links are in the form of a tree in the MRP controller’s worklist (optional). Above the list, there is a header with the material number. In addition, you can display further information using the header details. The list itself contains the individual MRP elements and the corresponding available quantities.

User-specific settings enable you to adapt the lists to your own personal needs - this applies to both lists (Customizing, Evaluation for MRP → Configure MRP list / stock/requirements list). You can use a customer exit to show additional data, which can then be called up using a function key (Customizing → Customer exit: Program additional columns).

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Sales and Distribution (SD)

Figure 78: Sales and Distribution

Figure 79: Sales and Distribution Basic information on a sales order is: • • • •

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Customer number (who) Requested delivery date (when) Material (what) Quantity (how much)


December 2001

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Lesson: MRP

When we take a sales order, the system can perform an availability check to determine when we can promise delivery of the requested item. When we take a sales order for an item planned with the Planning with Final Assembly planning strategy, the system also carries out consumption processing.

Availability Check

Figure 80: Availability Check In this example we have two planned orders for our material, A and B. Planned order A is for 120 pieces and due on May 1. Planned order B is for 90 pieces and due on June 1. The planned orders are available because the planning run has been executed. Assume we have no stock on hand. Now we enter two sales orders. Sales order 1 for 100 pieces has a desired delivery date of May 10. The system can confirm all 100 pieces for this date. Planned order A still has 20 pieces available for another sales order. Sales order 2, also for 100 pieces, has a desired delivery date of May 20. The system can confirm 20 pieces for delivery on this date. The remaining 80 pieces cannot be delivered until June 1. Planned order B still has 10 pieces available for another sales order. In releases 4.0 and newer, all availability checking can be carried out on a dedicated machine, known as the ATP Server. The ATP Server gives you access to enterprise-wide availability information in a single, central R/3 System or chain of R/3 Systems.

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Lesson: MRP

Exercise 12: MRP Exercise Objectives After completing this exercise, you will be able to: • Perform a single-item, multi-level MRP run for the pump T-F1## • Review the results of the planning run

Business Example We have created independent requirements for the pump, and must now create a production and procurement plan for the pump and its components. We will create this plan by running multi-level MRP.

Task 1.

Run MRP for the complete bill of material for pump T—F1## in plant 1000. Use the following data. Field

Entry

Processing key

NETCH

Create Purchase Req.

2

Schedule lines

3

Create MRP list

1

Planning Mode

1

Scheduling

1

Also plan unchanged components

Select

Display results before they are saved.

Deselect

Display material list

Deselect

Simulation Mode

Deselect

2.

How many materials were planned?

3.

How many planned orders and purchase requisitions were created?

4.

How many dependent requirements were created?

5.

Display the MRP list for pump T—F1## in plant 1000. Hint: Select Expand Header Details to see further planning information for this material. Continued on next page

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6.

Are all the independent requirements covered by planned orders?

7.

What is the number of the first planned order?

8.

Compare the stock/requirements list to the MRP list. Do differences exist between the two lists? Why?

9.

Display the stock/requirements list for pump T—B1## in plant 1000. Hint: Select the first dependent requirement, then select Additional data for element.

10. What planned order created the first dependent requirement in the list?

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Solution 12: MRP Task 1.

Run MRP for the complete bill of material for pump T—F1## in plant 1000. Use the following data. Field

Entry

Processing key

NETCH

Create Purchase Req.

2

Schedule lines

3

Create MRP list

1

Planning Mode

1

Scheduling

1

Also plan unchanged components

Select

Display results before they are saved.

Deselect

Display material list

Deselect

Simulation Mode

Deselect

a) b) 2.

How many materials were planned? a)

3.

30

How many dependent requirements were created? a)

5.

10

How many planned orders and purchase requisitions were created? a)

4.

Select Enter and check your input parameters. Then select Enter again to start requirements planning. When MRP is finished, a results screen should appear. Logistics → Production → MRP → Planning → Single item, multi-level.

66

Display the MRP list for pump T—F1## in plant 1000. Hint: Select Expand Header Details to see further planning information for this material. a)

Logistics → Production → MRP → Evaluations → MRP list . Continued on next page

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6.

Are all the independent requirements covered by planned orders? a)

7.

Yes.

What is the number of the first planned order? a)

8.

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Varies (for example, 25920).

Compare the stock/requirements list to the MRP list. Do differences exist between the two lists? Why? a) b)

9.

Goto → Compare stock/reqmts. No. With this material, no planning activity or controlling activity has taken place since the planning run.

Display the stock/requirements list for pump T—B1## in plant 1000. Hint: Select the first dependent requirement, then select Additional data for element. a) b)

Logistics → Production → MRP → Evaluations → Stock/requirements list. Select Enter.

10. What planned order created the first dependent requirement in the list? a)

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Double click on the compoment dependent requirement and find the planned order number of the higher level assembly. The same planned order was recorded previously in this exercise.


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Lesson: MRP

Lesson Summary You should now be able to: • Carry out an MRP run

Related Information The stock/requirements list is taught in more detail in LO210: Production Planning.

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Lesson: Consumption by Sales Orders Lesson Overview This lesson will use the Sales and Distribution module to create customer demand, which is another kind of independent requirement. This topic should enable the student to see how the forecast requirements of the Planning with Final Assembly strategy are reduced by a customer order.


Describe the consumption process

Business Example When a sales order is received by a company, the material should be in stock and ready to ship to the customer.

Consumption Logic

Figure 81: Consumption Logic When a customer order is entered in the system, it consumes (reduces) the planned independent requirements of planning strategy 40 (Planning with Final Assembly). We must establish how the consumption is carried out. This is done using the consumption mode, which defines how the customer order is assigned to the planned independent requirement. Four consumption modes exist: • •

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Backward consumption only Forward consumption only


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Lesson: Consumption by Sales Orders

LO050

• •

Backward/forward consumption Forward/backward consumption

We must also establish the consumption period. This is the number of workdays before (or after) the customer requirement date for the system to find the planned independent requirement(s) to consume. Demand management configuration is where we establish the default consumption modes and periods for materials. The settings are by plant and MRP group. We also can establish the consumption mode and period for an individual material in the MRP view. The settings in the material master override the settings in customizing.

Figure 82: Consumption Logic In backward consumption, the customer requirement consumes the planned independent requirement that lies closest to it in the past. If the quantity cannot be completely covered by the planned independent requirement, then the remainder is assigned to the next one back. This continues until the entire quantity is consumed, or the backward consumption period is reached. In forward consumption, the customer requirement consumes the planned independent requirement that lies closest to it in the future. If the quantity cannot be completely covered by the planned independent requirement, then the remainder is assigned to the next one forward. This continues until the entire quantity is consumed, or the forward consumption period is reached.

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In backward/forward consumption, backward consumption logic is used first. If the quantity cannot be consumed, then forward consumption logic is used. In forward/backward consumption, forward consumption logic is used first. If the quantity cannot be consumed, then backward consumption logic is used. If the customer requirement is greater than the consumed quantity, R/3 will increase the routing. This results in a greater procurement quantity in the MRP run.

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Exercise 13: Consumption by Sales Orders Exercise Objectives After completing this exercise, you will be able to: • Enter a sales order for the pump • Confirm that the consumption process takes place

Business Example We have a production plan and a procurement plan for our pump, based on independent requirements as the source of demand for MRP. We will enter a customer order for the pump and see how this affects our plan. We will re-run MRP to see if any adjustments to the plan are suggested

Task 1.

Enter a sales order for pump T-F1##. Use the following information for the sales order. Field

Data

Order type

OR (standard order)

Sales organization

1000

Distribution Channel

10

Division

00

Hint: Select Enter to confirm your entries and branch to the next screen. On the next screen, enter the order information. Field

Data

Sold-to party

1000

Ship-to party

1000

PO number

PO-##

Req.deliv.date

Day 15 of month+2

Material

T-F1##

Order quantity

50 Continued on next page

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Select Save and Enter through any warnings. What is the sales order number? Hint: The order number is at the bottom of the screen. 2.

Display MRP view 3 of the material master for pump T-F1## in plant 1000.

3.

To which consumption mode is this material assigned?

4.

What is the backward consumption period?

5.

What is the forward consumption period?

6.

Display the stock/requirements list for pump T—F1## in plant 1000. Transfer the values of the first five MRP elements in the list (after the stock line) into the table. Date

MRP element

Rec./Reqd.Qty

Availably Qty

Did consumption take place correctly? Hint: Check the MRP list for T-F1##, or check the answer you recorded for the planned independent requirement for month+2 in the Demand Management exercise. 7.

Run MRP again, for the complete bill of material for pump T—F1## in plant 1000. Use the same parameters as you did above.

8.

How many materials were planned?

9.

How many planned orders and purchase requisitions were created?

10. How many dependent requirements were created? 11. Compare the stock/requirements list of T-F1## in plant 1000 to the values you recorded in the previous exercise. Has the plan changed? How?

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Solution 13: Consumption by Sales Orders Task 1.

Enter a sales order for pump T-F1##. Use the following information for the sales order. Field

Data

Order type

OR (standard order)

Sales organization

1000


10

Division

00

Hint: Select Enter to confirm your entries and branch to the next screen. On the next screen, enter the order information. Field

Data

Sold-to party

1000

Ship-to party

1000

PO number

PO-##

Req.deliv.date

Day 15 of month+2

Material

T-F1##

Order quantity

50

Select Save and Enter through any warnings. What is the sales order number? Hint: The order number is at the bottom of the screen. a) b) 2.

Logistics → Sales and distribution → Sales Order → Create. Varies (for example, 6329).

Display MRP view 3 of the material master for pump T-F1## in plant 1000. a)

Logistics → Production → Master data → Material Master → Material → Display → Display current. Continued on next page

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3.

To which consumption mode is this material assigned? a)

4.

30 (working days).

What is the forward consumption period? a)

6.

2 (backward/forward consumption).

What is the backward consumption period? a)

5.

LO050

30 (working days).

Display the stock/requirements list for pump T—F1## in plant 1000. Transfer the values of the first five MRP elements in the list (after the stock line) into the table. Date

MRP element

Rec./Reqd.Qty

Availably Qty


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Did consumption take place correctly? Hint: Check the MRP list for T-F1##, or check the answer you recorded for the planned independent requirement for month+2 in the Demand Management exercise. a) b)

c) 7.

MRP element

Rec./Reqd.Qty

Availably Qty

1st day month+2

PlORD.

120

120

1st day month+2

IndReq

70–

50

Sales order date

Order

50–

0

1st day month+3

PLORD.

136

136

1stDay month+3

IndReq.

136–

0

Yes (50 pieces were consumed of the independent requirement).

Logistics → Production → MRP → Planning → Single item, multi-level.

How many materials were planned? a)

9.

Date

Run MRP again, for the complete bill of material for pump T—F1## in plant 1000. Use the same parameters as you did above. a)

8.

Logistics → Production → MRP Evaluations → Stock/reqmts list.

Answer may vary for each statement

How many planned orders and purchase requisitions were created? a)

Answer may vary for each statement

10. How many dependent requirements were created? a)

Answer may vary for each statement Continued on next page

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11. Compare the stock/requirements list of T-F1## in plant 1000 to the values you recorded in the previous exercise. Has the plan changed? How? a)

150

Yes. The quantity of the first planned order was reduced to 70, and a new planned order was created with a quantity of 50 pieces. In this way, the stock is adjusted to the new requirements situation.


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Lesson Summary You should now be able to: • Describe the consumption process

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Lesson: Production Orders Lesson Overview This lesson will show how to execute a production plan by creating a production order, releasing it, issuing components, performing a confirmation and receiving goods (automatically).


Create and process a production order

Business Example Precision Pumps will move from planning to execution and create a production order from a planned order for one of the pump’s assemblies. You need to release the order, perform basic material movements, perform a confirmation and check costs.

Production Orders

Figure 83: Production Orders Elements of shop floor control: • •

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Preparation Execution


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Lesson: Production Orders

LO050

•

Supervision and control

Figure 84: Production Orders •

•

• •

• •

December 2001

The production order is a complex data structure that contains planning, warehousing, production, scheduling and accounting information. A production order conveys authority to manufacture the specified material or activity in the specified quantity. Planning data includes what and how much of the finished product will be produced, what and how many components are needed, and what capacities are required for production. Warehousing data includes storage locations and storage bins for component withdrawals. Production data includes the operations and production/resource tools (PRTs) required and any confirmed quantities and dates from actual production. Scheduling data includes the order start and finish dates, as well as operation dates and times. Accounting data includes production cost information such as material and labor costs.


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Figure 85: Elements of a Production Order • • • • • • •

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The order structure represented can be enhanced by certain elements. At least one operation is required. If necessary, the system creates this automatically. You have the choice of whether to assign material components, production resources/tools (PRTs) and trigger points to the operation. You can create several (parallel) operation sequences. You can make a selection from several alternative sequences. Sub-operations are permitted within an operation. Costs are determined at operation level and submitted at order header level only in the case of order-related cost object controlling.


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Production Orders: Processes

Figure 86: Production Orders: Processes •

• •

• • • • •

•

• •

December 2001

There is an order proposal in the form of a planned order from material requirements planning. This can also come from an external source. For example, it could be a request from the engineering/design department. Once created, the production order authorizes manufacture of the material in the specified quantity. You have the option of checking whether all the material components assigned to the production order are available on the requirement dates. You may check that capacity is available at the work centers. Order release enables stock movements, printing of shop paperwork, and confirmations. Order printing is carried out using lists, which are configurable. Material withdrawal is the transfer of the required components from stock via goods issues. Confirmations record the quantity produced in an operation, how much activity this operation entailed, who performed the operation, and at which work center the operation was performed. Warehouse receipt is the delivery and recording of the manufactured material to the storage location or warehouse. The cost object – for example, the material account – is posted, and the production order is credited by the offsetting entry. Order settlement occurs when the actual costs incurred for the order are settled to one or more accounts. Orders can be archived and deleted from the database.


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Figure 87: Production Orders: Creation The system determines whether a planned order should be converted to a production order or to a purchase, based on the procurement type and other control elements. You may convert a planned order to a production order individually, using the stock/requirements list or the MRP list, or collectively, based on MRP controller, MRP list or sales order. Planned orders contain three dates: planned start date, planned finish date and planned opening date. The planned opening date is the date on which a planned order should be converted to a production order or to a purchase requisition. This date is based on the opening period that is defined in the scheduling margin key. The scheduling margin key is assigned to the material. When a planned order is converted to a production order, the dependent requirements of the components are converted to reservations.

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Figure 88: Production Orders: Creation •

•

•

•

•

•

• •

December 2001

You may create a production order manually or by converting a planned order. The system can create a production order automatically from a sales order. Various control parameters are associated with the order type, including the number range the order will use and how the order costs are to be calculated. Configuration settings determine how a routing is selected. The selected routing then is copied to the order. Therefore, subsequent changes to the routing master do not affect existing production orders. The system automatically carries out lead-time scheduling. Here, the production order start date or finish date is calculated, as well as the detailed dates and times of all operations. The BOM data from the planned order is copied to the production order. As with the routing, subsequent changes to the BOM master do not affect existing production orders. A configuration setting determines whether the component and/or capacity availability check is automatically carried out. You may manually check availability at any time. You may add, change or delete order information as required. When you save the order, the system is able to calculate the planned costs.


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Figure 89: Production Orders: Release •

• • •

158

Order release is necessary before subsequent processes, such as printing the shop floor documents and component withdrawal, may occur. The component availability checks may be carried out prior to order release. Production orders are managed using statuses. System statuses include Created, Released, Material shortage and Partially confirmed. You can release an individual operation, the entire order, or several orders at the same time.


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Production Orders: Goods Movements

Figure 90: Production Orders: Goods Movements Component reservations are created when the production order is created. The reserved materials cannot be issued from stock until the operation to which they have been assigned has been released. Goods receipts for the order can be created in the form of partial deliveries, or as the complete quantity. Goods receipts update the Put in stock field in the order. The goods issue and/or the goods receipt processes can be automated. Using backflushing, for example, you can automatically post goods issues based on a confirmation. You can automatically post a goods receipt transaction based on a confirmation. Each goods movement (for example, finished goods to warehouse) is assigned a movement type in the system. Movement types enable the system to find predefined posting rules that determine: • • •

December 2001

How the stock and consumption accounts are to be posted How the stock fields in the material master record are to be updated What input (for example, production order number) is required


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Production Orders: Goods Issue

Figure 91: Production Orders: Goods Issue • • • •

•

•

160

Stock and consumption fields are updated at the storage location level. The component reservation is reduced. The actual costs are determined and updated in the order. If the material withdrawn does not have a reservation, then it is an unplanned issue; for example, material withdrawn as a replacement material. Goods issues can be posted only if movement for the reservation is allowed. For example, an order status of created but not released, blocked or technically complete disallows such movement. If the final indicator is set, then the reservation is considered completed.


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Order Confirmation

Figure 92: Order Confirmation: Process Chain • • •

Order confirmation is used for entering activities carried out within your company for an order. Order confirmations enable you to monitor the progress of work carried out for a production order. Confirmations from plant data collection (PDC) systems are possible via communication channels (interface programs).

Figure 93: Production Orders: Goods Receipt

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•

• • • •

•

LO050

When you post a goods receipt from a production order, you can specify the quantity, the plant, the storage location, the batch number (if batch management is active), the stock type (for example unrestricted or blocked) and whether delivery is completed. Messages that inform users of stock availability may be created through workflow as a result of a goods receipt. Goods receipt slips may be printed. Materials management functions such as account determination and document creation take place. The system issues a warning or error message if the delivered quantity is not within the under- or over-delivery tolerances specified in the goods receipt/valuation screen of the order header. A transfer requirement is created if warehouse management is active.

Production Orders: Costs

Figure 94: Production Orders: Costs •

• •

162

The costs of the internal activities are a function of the activity types, formulas, standard values, quantities, and so on. An example of an internal activity is the labor cost for setup. Material cost for the components is another element of the production order cost. Overhead is calculated periodically.


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Figure 95: Production Orders: Order-Related Cost Object Controlling •

•

•

• •

December 2001

In discrete make-to-stock production, cost object controlling provides information about the production order, whose costs are settled to stock. The order quantity is of central importance for cost object controlling because it is used to calculate the planned costs for the corresponding order. Actual costs cannot be calculated before this final quantity is delivered to the warehouse. Actual costs of activities and materials are collected individually for each production order and can then each be compared with the planned costs of the orders and the results of costing. After each goods receipt, the quantity and value of the stock is evaluated and the order is credited. Cost object controlling is carried out per order. This means that variances and scrap cannot be calculated or settled before final delivery.


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Figure 96: Production Orders: Product-Related Cost Object Controlling During actual data entry, material costs and production activities are collected in the product cost collector. Overhead cost rates can be posted to the product cost collector using a separate transaction. In addition, you can examine the costs incurred in the product cost collector by means of a costs report. The product cost collector is settled periodically according to posting periods. Posting periods must not coincide with the planning periods. When goods receipt occurs, the material costs of the components during backflush – as well as the production activities – are automatically posted to the product cost collector. When this occurs, the amounts of the material costs and the production activities are debited from the product cost collector. In addition, the product cost collector is credited to the amount of the valuation price of the assembly (for example, according to the valuation strategy in customizing). Overheads are not determined with reference to an operation (that is, not for each goods movement or activity confirmation). Instead they are determined periodically during period-end closing in controlling by way of an overhead structure, and are posted to the cost collector. It is possible that components different to those planned are used in production or that the overhead cost rates change. This results in variances in the product cost collector and settlement must be executed. The aim of settlement is to completely credit the product cost collector. During settlement, the costs not yet credited to the product cost collector are

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transferred to the receiving cost object (for example, stock account). For a material that is valuated using the standard price, the variant costs are posted to the price difference account.

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Exercise 14: Production Orders Exercise Objectives After completing this exercise, you will be able to: • Convert a planned order into a production order • Perform goods issues and receipts • Execute a confirmation

Business Example We will move from planning to execution and create a production order from a planned order for one of the pump assemblies. We will release the order, perform basic material movements, perform a confirmation and check costs.

Task 1 Convert a planned order to a production order. 1.

Display the stock/requirements list for pump T—B1## in plant 1000. Select the first planned order in the list and begin the conversion process.

Task 2 Check the order 1.

View the production order for T—B1##. First, refresh the stock/requirements list display. The planned order has become a production order.

2.

What is the production order number?

3.

What is the production order total quantity?

4.

What is the first system status displayed?

5.

View the components of the production order.

6.

What is the reservation number of this component?

7.

What movement type is allowed?

8.

Can we issue this component to this production order now?

9.

View the operations of the order. Select Operation overview. How much labor time is required to complete operation 10? Continued on next page

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Task 3 Modify the order 1.

Release the production order.

2.

What is the first system status displayed?

3.

Can we issue the component to this production order now?

4.

Issue components to the production order.

5.

Is the movement type the same as the one in question 5-3?

6.

Is the reservation number the same as the one in question 5-3?

7.

Perform an order confirmation. Enter the production order number. Note: This is a final confirmation for the full order quantity. Fill out the screen appropriately, then select Save. Note the message at the bottom of the screen; a goods movement transaction occurred. This was the movement of the finished assembly into stock, and took place because this action was specified in the routing.

Task 4 View the order details. 1.

Display the production order. After finding the correct transaction, enter the production order number, select Enter, then answer the following questions. What is the put in stock delivered quantity?

2.

What is the confirmed finish date?

3.

Was component T—T1## completely issued?

4.

Was operation 10 confirmed for all pieces?

5.

View the order costs. Do the planned raw materials quantities match the actual raw materials quantities?

Task 5 Material and accounting documents are created when material movement transactions are performed. 1.

In the following, the documents that were created during the automatic goods receipt posting of T—B1## in step 5-7 are displayed. Continued on next page

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What user was responsible for making this goods movement? 2.

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Next, display the accounting document. What is the date when the account postings were made?


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Solution 14: Production Orders Task 1 Convert a planned order to a production order. 1.

Display the stock/requirements list for pump T—B1## in plant 1000. Select the first planned order in the list and begin the conversion process. a) b) c)

Logistics → Production → MRP → Evaluations → Stock/requirements lists. Select Add. data for element for the planned order in question and then choose Convert planned order to production order. The system displays the production order. Select Save.

Task 2 Check the order 1.

View the production order for T—B1##. First, refresh the stock/requirements list display. The planned order has become a production order. a)

2.

What is the production order number? a)

3.

Select Component overview. Choose the first component, then select Component detail.

What is the reservation number of this component? a)

7.

CRTD (created).

View the components of the production order. a)

6.

60 pieces.

What is the first system status displayed? a)

5.

Varies (for example 60002045).

What is the production order total quantity? a)

4.

Select the production order, then select Change element.

Varies, (for example 10071 1).

What movement type is allowed? a) b)

Use the pull-down arrow to see the description of this movement type. 261 (goods issue for order). Continued on next page

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8.

Can we issue this component to this production order now? a) b)

9.

No. The Mvt allowed field is not selected. Look for the Move. allowed box.

View the operations of the order. Select Operation overview. How much labor time is required to complete operation 10? a) b) c)

Select operation 10, then Operation → Operation detail. Select Qty/activities. 30 hours (60 pieces at 30 minutes per piece).

Task 3 Modify the order 1.

Release the production order. a) b)

2.

What is the first system status displayed? a)

3.

b) c)

Logistics → Materials management → Inventory management → Goods movement → Goods issue. In the Enter goods issue screen, select To order. Enter the production order number in the dialog box and then select Enter. Select Save.

Is the movement type the same as the one in question 5-3? a)

6.

Yes.

Issue components to the production order. a)

5.

REL (released).

Can we issue the component to this production order now? a)

4.

Go back to the Production order Change: Header screen. Select Release order. Select Save.

Yes.

Is the reservation number the same as the one in question 5-3? a)

Yes. The first item is -1, the second is -2, and so on.


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Perform an order confirmation. Enter the production order number. Note: This is a final confirmation for the full order quantity. Fill out the screen appropriately, then select Save. Note the message at the bottom of the screen; a goods movement transaction occurred. This was the movement of the finished assembly into stock, and took place because this action was specified in the routing. a) b) c)

Logistics → Production → Production control → Confirmation → Enter → For order. We will confirm the total order quantity to ensure that the Confd yield field contains the value: 60 pieces. Select Final conf.

Task 4 View the order details. 1.

Display the production order. After finding the correct transaction, enter the production order number, select Enter, then answer the following questions. What is the put in stock delivered quantity? a) b)

2.

What is the confirmed finish date? a)

3.

b)

From the Component overview screen, select the component, then select Component detail. Yes (withdrawal quantity = 60 pieces).

Was operation 10 confirmed for all pieces? a) b)

5.

Today’s date.

Was component T—T1## completely issued? a)

4.

Logistics → Production → Production control → Order → Display. 60 pieces.

From the Operation overview screen, select the operation, then choose Operation detailand Qty/activities. Yes (confirmed quantity = 60 pieces).

View the order costs.


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Do the planned raw materials quantities match the actual raw materials quantities? a) b)

From the Display production order: Header screen, choose Goto → Costs → Analysis. Yes.

Task 5 Material and accounting documents are created when material movement transactions are performed. 1.

In the following, the documents that were created during the automatic goods receipt posting of T—B1## in step 5-7 are displayed. What user was responsible for making this goods movement? a) b) c)

2.

Next, display the accounting document. What is the date when the account postings were made? a)

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Logistic → Materials management → Inventory management → Material document → Display. Select Enter. Your logon user ID.

Today’s date.


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Lesson Summary You should now be able to: • Create and process a production order

Related Information More details are handled in: • •

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AC510: Cost Object Controlling for Products AC515: Cost Object Controlling for Sales Orders


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Unit Summary

Unit Summary You should now be able to: • Describe the principles of the Planning with Final Assembly planning strategy • Create a product group, a sales plan and a production plan • Explain the disaggregation process • Carry out an MRP run • Describe the consumption process • Create and process a production order

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Unit Summary

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Test Your Knowledge


Planning with Final Assembly is done at the finished product level and takes into account demand program and sales order. Determine whether this statement is true or false.

True False 2.

A product group helps in the planning process by grouping products with similar characteristics similar characteristics. Fill in the blanks to complete the sentence.

3.

A production plan can be created based on which of the following? Choose the correct answer(s).

A B C D 4.

The sales plan The target stock level function in SOP The days’ supply of stock BOM explosion

A production plan can be created from a sales plan. Determine whether this statement is true or false.

True False 5.

The sum of the proportion factors when a sales plan or a production plan is “disaggregated” from a higher level to a lower level usually equals: Choose the correct answer(s).

A B C D E

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0 25 percent 50 percent 100 percent None of the above


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MRP analyzes the demand from sales orders and forecasts, creates a planned order if needed, creates the dependent requirements, converts the planned order to a production order or a purchase order if the stock needs to be replenished, directly creates purchase requisitions and schedule lines, and makes the dependent requirements for its components into reservations. Determine whether this statement is true or false.

True False 7.

Consumption based planning be broken into which types of planning? Choose the correct answer(s).

A B C D

Forcast-based planning Manual-based planning Reorder point planning Customer planning

8.

The consumption mode defines how the customer order is assigned to the planned independent requirement. List the four modes in which consumption can be carried out.

9.

Describe the function of a production order.

10. The elements of a production order define which of the following? Choose the correct answer(s).

A B C D

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What is produced When and how much is produced On which work center production occurs The cost involved in production


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Test Your Knowledge

11. List the required element(s) for a production order.

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Answers 1.

Planning with Final Assembly is done at the finished product level and takes into account demand program and sales order. Answer: True The required quantities and dates of the planned independent requirements are contained in the demand program and take sales orders into account.

2.

A product group helps in the planning process by grouping products with similar characteristics. Answer: similar characteristics A product group groups together products with similar characteristics.

3.

A production plan can be created based on which of the following? Answer: A, B, C A production plan can be created based on a sales plan, the target stock level function in SOP, or the days’ supply of stock.

4.

A production plan can be created from a sales plan. Answer: True A production plan could be developed based on the sales plan.

5.

The sum of the proportion factors when a sales plan or a production plan is “disaggregated” from a higher level to a lower level usually equals: Answer: D The sum of the proportion factors must equal 100 percent.

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Test Your Knowledge

6.

MRP analyzes the demand from sales orders and forecasts, creates a planned order if needed, creates the dependent requirements, converts the planned order to a production order or a purchase order if the stock needs to be replenished, directly creates purchase requisitions and schedule lines, and makes the dependent requirements for its components into reservations. Answer: True MRP analyzes the demand from sales orders and forecasts, creates a planned order if needed, creates the dependent requirements, converts the planned order to a production order or a purchase order if the stock needs to be replenished, directly creates purchase requisitions and schedule lines, and makes the dependent requirements for its components into reservations.

7.

Consumption based planning be broken into which types of planning? Answer: A, C Consumption-based planning can be divided into forecast-based and reorder point planning.

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The consumption mode defines how the customer order is assigned to the planned independent requirement. List the four modes in which consumption can be carried out. Answer: Backward consumption, Forward consumption, Backward/Forward consumption, and Forward/Backward consumption Backward consumption The customer requirement consumes the planned independent requirement that lies closest to it in the past. If the quantity cannot be completely covered by the planned independent requirement, then the remainder is assigned to the next one further in the past. This continues until the entire quantity is consumed, or the backward consumption period Forward consumption The customer requirement consumes the planned independent requirement that lies closest to it in the future. If the quantity cannot be completely covered by the planned independent requirement, then the remainder is assigned to the next one further in the future. This continues until the entire quantity is consumed, or the forward consumption period is reached. Backward/forward consumption Backward consumption logic is used first. If the quantity cannot be consumed, then forward consumption logic is used. Forward/backward consumption Forward consumption logic is used first. If the quantity cannot be consumed, then backward consumption logic is used.

9.

Describe the function of a production order. Answer: A production order conveys authority to manufacture the specified material or activity in the specified quantity.

10. The elements of a production order define which of the following? Answer: A, B, C, D The elements of a production order define what, when, and how much is produced; on which work center production occurs; and the cost involved in production.

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Test Your Knowledge

11. List the required element(s) for a production order. Answer: At least one element is required for a production order. Elements include work center, control key, and standard values.

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Unit 4 Make-to-Stock Production Unit Overview In this unit we will study another make-to-stock strategy, strategy 10. We will introduce Master Production Scheduling (including interactive MPS) and we will add to our knowledge of MRP by introducing some new concepts. Further, we will see how plant-wide MRP works, and we will discuss new concepts of production orders, including date calculations and capacity planning.


Describe the principles of the make-to-stock planning strategy Carry out a master production scheduling run Describe the process of running MRP for a plant Explain the scheduling techniques used in planned orders and in production orders Check material availability from within a production order Explain the concept of capacity planning

Unit Contents Make-to-Stock Production .....................................................187 Master Production Scheduling (MPS) ........................................191 Exercise 15: Unit: Make to Stock Production Topic: Independent Requirements....................................................................197 Exercise 16: Master Production Scheduling (MPS) ........................203 Additional MRP Topics .........................................................209 Exercise 17: Additional MRP Topics..........................................217 Exercise 18: Make-to-Stock Production — Independent Requirements and Production Orders...............................................................221 Scheduling .......................................................................226 Exercise 19: Unit: Make to Stock Production Topic: Production Orders 233 Material Availability .............................................................238

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Unit 4: Make-to-Stock Production

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Exercise 20: Material Availability..............................................241 Capacity Planning...............................................................244 Exercise 21: Collective Release/Capacity Planning........................255

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Lesson: Make-to-Stock Production Lesson Overview In this unit, we will: • • • • • •

Describe the principles of the Make-to-Stock planning strategy Carry out a Master Production Scheduling (MPS) run Describe the process of running MRP for a plant Process an MRP List Perform basic capacity leveling Explain the scheduling techniques used in planned and production orders


Describe the principles of the make-to-stock planning strategy

Business Example Precision Pump supplies the consumer market with pumps and they wish to build their product to stock. They do not want fluctuations in sales to disrupt their manufacturing plan.

Figure 97: Make-to-Stock Production: Strategies

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Like Planning with Final Assembly, Make-to-Stock production also plans production/purchasing based on a forecast, then fills customer orders from existing stock. However, sales orders will not consume the planned independent requirements. Thus, you can create a production plan that is not adjusted by sales orders. The Make-to-Stock production strategy is often used in industries where demand is seasonal and/or where production needs to be smooth.

Figure 98: Make-to-Stock Production: Process Strategy 10: net requirements planning • •

•

•

188

The demand program (of planned independent requirements) is created. Material planning is carried out to determine what must be produced. In order to determine the planned order quantity, the system considers any planned orders, production orders, purchase orders, etc., as planned supply. Individual sales orders are not taken into account in MRP. They are displayed for information purposes, but are not considered requirements in the MRP run. Only the planned independent requirements from the demand program have an effect. The finished product is shipped to customers and the deliveries are posted to the sales orders. The demand program is hereby reduced; that is, the corresponding planned independent requirement quantities are reduced. The oldest planned independent requirement is reduced first.


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Lesson: Make-to-Stock Production

Figure 99: Make-to-Stock Production: Summary In Make-to-Stock production, production quantities and dates are provided by the material forecast (planned independent requirements). Sales orders are displayed for information purposes, but they do not affect production. If net requirements planning is used, the demand program is reduced upon goods issue to shipment. This is because stock levels are considered in planning, and a production order (or purchase order) may not be necessary.

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Lesson Summary You should now be able to: • Describe the principles of the make-to-stock planning strategy

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Lesson: Master Production Scheduling (MPS) Lesson Overview In this lesson we learn about single item, single level and interactive Master Production Scheduling (MPS).


Carry out a master production scheduling run

Business Example MPS is optional and is typically used in environments where the requirements change frequently, both in quantity and in terms of time. MPS allows you to plan critical items without planning lower-level components.

Figure 100: Master Production Scheduling

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Figure 101: MPS - MRP Comparison Master production scheduling is used to plan parts that greatly influence company profits or take up critical resources. These parts therefore must be planned with extra attention. Running MPS allows the scheduler/planner to check the planning result and change it, if necessary, before other materials are planned using MRP. In MPS, planned orders are created as necessary for the planned independent requirements in the demand program. Dependent requirements are created based on the BOM of the planned orders. Levels below this are not planned. MPS may be carried out as a total planning run or a single-item planning run, and MRP is normally carried out after MPS planning is finished. Master schedule items are not included in the MRP run. A material is a master schedule item based on the value in the MRP type field in the MRP view of the material master.

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Figure 102: Planning Time Fence A planning time fence is a point in time that marks a boundary inside of which changes to the schedule may adversely affect component schedules, capacity plans, customer deliveries or costs. You can protect the master plan from any automatic schedule changes by using a planning time fence. Each master schedule item can have its own value for the planning time fence (for example, 15 days). Planned orders that are rescheduled by the MRP controller are considered "firm" and will not be changed by the system. Planned orders that lie within the firming period are also considered firm. Firm planned orders are denoted by an asterisk (*) in the stock requirements and MRP lists. We can also define the firming period by entering the manual firming date in the stock/requirements list . We always maintain the firming period – planning time fence or manual firming date – for each material. A firming period may be defined as a specific date (for example, May 1). Planned orders created by the system that lie outside the firming period can be changed by system planning logic. Changes inside the firming period must be manually made by the MRP controller. In the example, if a new requirement falls within the firming period, the system will create a planned order and place it at the end of the firming period. This ensures that the existing schedule will not be disturbed.

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Figure 103: Planning Time Fence In the example above, the planned order for E1 is within the planning time fence; therefore, it is treated as a firm planned order and is not automatically rescheduled. This has the effect of keeping the plans for the components stable. If necessary, the system will suggest changes to the schedule in the form of exception messages in the item’s MRP list. The MRP controller may review these messages and determine whether or not to follow them.

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Figure 104: Interactive MPS With interactive MPS, you can process the results of the MPS planning run. For example, you could change the dates and/or quantities of the planned orders, then check the results of these changes. You may also check the effect your changes have on capacity requirements. The system does not save the revised planning data until you save the interactive planning. Interactive planning is especially useful for adjusting dates that lie within the planning time fence.

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Exercise 15: Unit: Make to Stock Production Topic: Independent Requirements Exercise Objectives After completing this exercise, you will be able to: • At the conclusion of these exercises you will be able to: • Initialize data • Enter independent demand through demand management • confirm and check planning parameters entered

Business Example Every business needs to be able to input its Planned Independent Requirements (Forecasts) so that MRP or MPS can plan against this demand. In this Unit we teach you how to input Planned Independent Requirements (Forecasts) in Demand Management and use strategy Make To Stock (10) to plan against these requirements. We will initialize the data we created in the last Unit to test the Make To Stock (10) planning strategy used in this Unit. We will enter Independent Demand for a 4 month period and verify the planning parameters.

Task [Enter a high level description of the task the learner will perform in this exercise.] 1. First we will delete the Planned Independent Requirements (Forecasts) for the pump T-F1## in Plant 1000. Display the Stock Requirements List for pump T-F1## in Plant 1000. Select the first Planned Independent Requirements (Forecasts) and then the Change Element icon. This takes us to Demand Management. Select the square to the left of the line containing T-F1## and then select the Delete line item icon or the trash can icon. Click on the Save button. Refresh the Stock Requirements List and the Planned Independent Requirements (Forecasts) should be gone.


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Next, delete the Sales Order. You do have authorization to do this. Select the Sales Order line item in the Stock Requirements List, then select the Change Element icon. This takes us to Sales Order Maintenance. Select Sales Document → Delete. Return to the Stock Requirements List, refresh the screen and the Sales Order line will no longer appear.

3.

Finally, delete the Planned Orders. You could delete the Planned Orders individually but a faster way to do this is to run MRP. Run MRP for the complete bill of material structure for pump T-F1## in plant 1000. Use the menu path and run time parameters from question 3–1 in Unit "Planning and Execution with Final Assembly"."" Return to the Stock Requirements List for your pump T-F1## in plant 1000. The Planned Orders should now be deleted. Why did MRP delete the Planned Orders?

4.

Set the planning strategy for pump T-F1## in plant 1000 to Make To Stock or Strategy 10 (net requirements). Select the MRP 3 View and change the value of the "Strategy Group" field to 10. Click on the Save button.""

5.

This time we will enter Planned Independent Requierments (forecasts) for pump T-F1## in plant 1000 directly into Demand Management instead of using Sales and Operation Planning (SOP). Logistics → Production → Production Planning → Demand Management → Planned Independent Requirements → Create. Enter the material and plant and the Version 00. The planning horizon will default and the planning period should be set to M (month). Month + 1 40

Month + 2

Month + 3

45

50

Month + 4 55

Enter the data in the above on the next screen and Save when you are finished: 6.

198

Display the Stock Requirements List for the pump T-F1## in plant 1000. Confirm that the Planned Independent requirements (Forecasts) that you have just entered in Demand Management are correct. Select the first Planned Independent Requirements (Forecasts), then select the Display Element icon. In the next screen select the Additional Data icon.

7.

Does the Strategy Group equal the one we entered in Question 4?

8.

Are the Planned Independent Requirements (Forecasts) consumed by the Sales Orders?


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Solution 15: Unit: Make to Stock Production Topic: Independent Requirements Task [Enter a high level description of the task the learner will perform in this exercise.] 1. First we will delete the Planned Independent Requirements (Forecasts) for the pump T-F1## in Plant 1000. Display the Stock Requirements List for pump T-F1## in Plant 1000. Select the first Planned Independent Requirements (Forecasts) and then the Change Element icon. This takes us to Demand Management. Select the square to the left of the line containing T-F1## and then select the Delete line item icon or the trash can icon. Click on the Save button. Refresh the Stock Requirements List and the Planned Independent Requirements (Forecasts) should be gone. a)

Logistics → Production → MRP → Evaluations → Stock Requirements List. Select the first Planned Independent Requirements (Forecasts) and then the Change Element icon. This takes us to Demand Management. Select the square to the left of the line containing T-F1## and then select the Delete line item icon or the trash can icon. Click on the Save button. Refresh the Stock Requirements List and the Planned Independent Requirements (Forecasts) is deleted.

2.

Next, delete the Sales Order. You do have authorization to do this. Select the Sales Order line item in the Stock Requirements List, then select the Change Element icon. This takes us to Sales Order Maintenance. Select Sales Document → Delete. Return to the Stock Requirements List, refresh the screen and the Sales Order line will no longer appear. a)

Explained in the exercise.


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Finally, delete the Planned Orders. You could delete the Planned Orders individually but a faster way to do this is to run MRP. Run MRP for the complete bill of material structure for pump T-F1## in plant 1000. Use the menu path and run time parameters from question 3–1 in Unit "Planning and Execution with Final Assembly"."" Return to the Stock Requirements List for your pump T-F1## in plant 1000. The Planned Orders should now be deleted. Why did MRP delete the Planned Orders? a)

4.

Set the planning strategy for pump T-F1## in plant 1000 to Make To Stock or Strategy 10 (net requirements). Select the MRP 3 View and change the value of the "Strategy Group" field to 10. Click on the Save button."" a)

5.

We have deleted all Demand (Independent Requirements and Sales Orders) and hence there is nothing to plan against.

Logistics → Production → Master Data → Material Master → Material → Change → Immediately.

This time we will enter Planned Independent Requierments (forecasts) for pump T-F1## in plant 1000 directly into Demand Management instead of using Sales and Operation Planning (SOP). Logistics → Production → Production Planning → Demand Management → Planned Independent Requirements → Create. Enter the material and plant and the Version 00. The planning horizon will default and the planning period should be set to M (month). Month + 1

Month + 2

40

Month + 3

45

Month + 4

50

55

Enter the data in the above on the next screen and Save when you are finished: a)

Logistics → Production → Production Planning → Demand Management → Planned Independent Requirements → Create. Month + 1 40

Month + 2 45

Month + 3 50

Month + 4 55

Caution: You may see warning messages when you try to Save. Hit enter to acknowledge all warnings.


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6.

Display the Stock Requirements List for the pump T-F1## in plant 1000. Confirm that the Planned Independent requirements (Forecasts) that you have just entered in Demand Management are correct. Select the first Planned Independent Requirements (Forecasts), then select the Display Element icon. In the next screen select the Additional Data icon. a)

7.

Does the Strategy Group equal the one we entered in Question 4? a)

8.

Logistics → Production → MRP → Evaluations → Stock Requirements List Yes

Are the Planned Independent Requirements (Forecasts) consumed by the Sales Orders? a)

No We will test later whether or not consumption takes place.

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Exercise 16: Master Production Scheduling (MPS) Exercise Objectives After completing this exercise, you will be able to: • Run MPS to create a basic plan • Evaluate the plan and • Use interactive MPS to adjust the plan

Business Example Before we run MRP for our pump, we must be sure that the plan is realistic. We use MPS to accomplish this. We will plan and evaluate the first level schedule, then modify the plan to better meet the requirements of our make—to—stock planning strategy.

Task We will make some Material Master settings, run single item, single—level MPS, then run Interactive MPS. Once we like the plan we will run MRP for the entire plant. 1.

Establish pump T-F1## as a Master Schedule Item and change the Planning Time Fence to 30 days.

2.

Is this 30 days in calendar or work days?

3.

Run single item, single—level MPS for pump T-F1## in plant 1000. Use the data in the Solutions .

4.

Display the MRP list for pump T-F1## in plant 1000.

5.

What is the date of the end of the planning time fence?

6.

What is the date of the first planned order?

7.

Write down the number of this planned order.

8.

Is the Planned Order firm?

9.

What planned independent requirement is the source of this Planned Order?

10. Select this Planned Order. The system suggests that it should be rescheduled. To what date?


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11. Run Interactive MPS for pump T-F1## and reschedule the above Planned Order to align with the planned independent requirement that created it. The control parameters are the same as those in Question 3. Select Enter to confirm your entry parameters, then select Enter to start Interactive MPS. Select Reschedule proc. Proposalicon at the bottom of the page fo rthe Planned Order in 6 above. Enter the date of the planned independent requirement in the dialog box 12. Was the Planned Order rescheduled? 13. Is the planned order firmed? 14. Display the MRP List for pump T-F1##. Find the Planned Order that you just rescheduled. What is the exception message for this Planned Order?

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Solution 16: Master Production Scheduling (MPS) Task We will make some Material Master settings, run single item, single—level MPS, then run Interactive MPS. Once we like the plan we will run MRP for the entire plant. 1.

Establish pump T-F1## as a Master Schedule Item and change the Planning Time Fence to 30 days. a) b)

2.

Is this 30 days in calendar or work days? a)

3.

Find the answer by placing the cursor on the field for the planning time fence and selecting F1.

Run single item, single—level MPS for pump T-F1## in plant 1000. Use the data in the Solutions . a) b)

c) 4.

Logistics → Production → Master Data → Material Master → Material → Change → Immediately. Select the MRP1 view and change the MRP Type to M1and the Planning Time Fence to 30days.

Logistics → Production → Production Planning → MPS → MPS → Single Item, Single level. Processing Key

NETCH

Create Purchase Req

2

Schedule Lines

3

Create MRP List

1

Planning Mode

1

Scheduling

1

Planning Date

Today

Display Result

Deselect

Select Enter to validate the data on the Planning Run screen and then select Enter to run MPS.

Display the MRP list for pump T-F1## in plant 1000. a)

Logistics → Production → MRP → Evaluations → MRP List or Logistics → Production Planning → MPS → Evaluation → MRP List material. Continued on next page

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5.

What is the date of the end of the planning time fence? a)

6.

Answer varies from student to student (For example, 25696).

Is the Planned Order firm? a)

9.

The same date as in question 5: the end of the planning time fence.

Write down the number of this planned order. a)

8.

The answer varies from student to student; there is no right answer.

What is the date of the first planned order? a)

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No.

What planned independent requirement is the source of this Planned Order? a)

The first planned independent requirement in the stock/requirements list. You can also select the Planned Order and choose Pegged Up at the bottom of the stock/requirements list.

10. Select this Planned Order. The system suggests that it should be rescheduled. To what date? a)

The answer varies from student to student. The date should be the same as that of the first planned independent requirement.

11. Run Interactive MPS for pump T-F1## and reschedule the above Planned Order to align with the planned independent requirement that created it. The control parameters are the same as those in Question 3. Select Enter to confirm your entry parameters, then select Enter to start Interactive MPS. Select Reschedule proc. Proposalicon at the bottom of the page fo rthe Planned Order in 6 above. Enter the date of the planned independent requirement in the dialog box a)

Logistics → Production → Production Planning → MPS → MPS → Single Item Interactive.

12. Was the Planned Order rescheduled? a)

Yes.


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13. Is the planned order firmed? a)

Yes. The asterisk denotes that the planned order is firmed. The changes made above take effect when the Interactive MPS run is saved.

14. Display the MRP List for pump T-F1##. Find the Planned Order that you just rescheduled. What is the exception message for this Planned Order? a)

Logistics → Production → MRP → Evaluation → MRP List material. Most often you will see "Exception Message 46: Order proposal has been manually changed". Sometimes your message may be different.

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Lesson Summary You should now be able to: • Carry out a master production scheduling run

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Lesson: Additional MRP Topics Lesson Overview This lesson teaches you about various lot sizing procedures in the R/3 System, how to run MRP for the plant and how to process Materials Requirement (MRP) lists — something an MRP controller should do routinely. It also talks about all the enhanced functionality available in the stock/requirements and MRP lists.


Describe the process of running MRP for a plant

Business Example In every production environment, MRP controllers are required to take action based on exception messages that are generated during the MRP run. They should start with the most serious problems and work through this list to keep it manageable.

Lot-Sizing Procedures

Figure 105: Lot-Sizing Procedures

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MRP (or MPS) determines how much stock is needed to satisfy demand in the net requirements calculation. This shortage quantity must be covered by one or more receipts. The system calculates the receipt quantity in the lot size calculation. You specify how the system is to determine the lot size by selecting one of the lot-sizing procedures in the MRP view of the item’s material master record. You also may specify additional restrictions on the lot size in the MRP view. The minimum lot size, for example, is applied after the lot size has been calculated and insures the order quantity is at least that amount. The maximum lot size ensures that the order quantity does not exceed that amount. The rounding value modifies the order quantity so it is in multiples of the specified amount.

Functions of the Stock/Requirements List

Figure 106: Functions of the Stock/Requirements List There are various display options for the stock/requirements list. You can display various dates (the availability date or the goods receipt date); you can work with display filters and selection rules; you can work in the period totals display; and much more. You can define the display and save this in your personal settings. When you use period totals as the display form in the evaluations for the stock requirements list and MRP list, the planning results are grouped periodically. In the customizing activity Define Period Display for Period

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Totals, you determine which period is used for displaying period totals. The periods, which are selected here, are displayed in the period totals display on various tab pages. You can process individual MRP elements from the list. Along with the standard functions, you also have user-specific functions under the navigation profile and personal favorites. You can also process the list on a material level with various functions, which can be user-specific. The capacity situation can be analyzed from the stock/requirements list. The system periodically displays the available capacity, the material-independent total capacity requirement and the capacity requirement of the material for each work center and capacity category. Overload situations are highlighted in color. Note that planned orders, which have not gone through lead-time scheduling do not generate capacity requirements.

Functions of the MRP List

Figure 107: Functions of the MRP List The functions in the MRP list are often identical to those in the stock/requirements list, for example, with regards to the processing of MRP elements or the display options. Selection rules, however, can only be used for stock/requirements lists. Also, the MRP list is a static list — updated as of the last planning run. The stock/requirements list is a dynamic list and incorporates changes as they occur.

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In contrast to the stock/requirements list, the MRP list can be set with a processing indicator, which serves to mark lists that have already been processed. The header details display an overview of master data and movement data for the respective material. This data is grouped into individual screens.

Collective Display of Stock/Requirements List

Figure 108: Collective Display of Stock Requirements List Collective display of the stock/requirements list is possible with various selection criteria. For example, you can display all the lists for which you are responsible as MRP controller. The system then displays a material overview with all the materials selected. If you set the Set up lists in background indicator, the following is available as orientation help: traffic lights (you can determine the display criteria); various search functions in the overview and in the individual lists; and sort function (also for individual customer segments by date or number). Using the search function, it is possible to select materials with particular exception messages. From the overview, you access the individual lists and can process the materials there. If, for example, you have selected several lists for processing using the search function, you can jump directly from one list to the next.

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Collective Display of MRP Lists

Figure 109: Collective Display of MRP Lists The selection criteria for the collective display of MRP lists are different from those for the stock/requirements lists. For example, you can use the MRP date, the processing date or even the processing indicator for the selection. The orientation help in the material overview is the same as in the stock/requirements list. There are additional options of searching by processing indicator or new exceptions.

Overview Tree

Figure 110: Overview Tree

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Displaying the overview tree is optional, and you can specify a default setting for each user by selecting Show overview tree. You can switch between hiding and showing the tree. You can display: • • •

Worklist tree: The system displays all the materials in the current session (particularly when using the collective display). Order tree: The system displays all components or assemblies for a selected MRP element corresponding to the order report. Product group tree: The system displays all materials in a product group (only when using collective display by product group).

You display the corresponding material by selecting the material in the tree. You can set which fields are to be displayed in which order for the worklist tree and product group tree (by using the Settings menu). You can also set user-defined groupings.

Creating a Production Order: Methods

Figure 111: Creating a Production Order: Methods You may create a production order from a planned order. The system will carry over all the data contained in the planned order, such as the material number, the order quantity, order dates and components. The system then selects a valid routing. You may create several production orders from several planned orders, provided that the planned orders exist in the same plant and belong to the same MRP controller. This is called collective order conversion.

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You may create a production order with reference to a material. In this case, you must provide the material number, plant, order type, order quantity and start or finish date. The system expands the BOM and selects a valid routing. You may create a production order without reference to a material. Here you must provide information such as the order quantity, a short text and order dates. Routing information comes from either a reference operation that you select, or from a system-generated routing which contains a single default operation. You may add components to the production order manually.

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Exercise 17: Additional MRP Topics Exercise Objectives After completing this exercise, you will be able to: • Execute MRP for an entire plant online and evaluate the results

Business Example Now that we have refined our MPS plan, the usual procedure is to run MRP for the entire plant. This is often done as a batch job at night, however, we will do it online. MRP will plan all components that are not MPS items. Afterward, we will examine the MRP list of materials for which we are responsible as MRP controllers.

Task The instructor will run MRP for the entire plant and we will analyze the results. 1.

The instructor will run MRP (online) for the plant. Please note the control parameters for the MRP Planning Run in the table in the Solutions. The instructor will also use the NETPL processing key, which limits the Planning Horizon and uses Net Change planning logic.

2.

Check the MRP Lists that are your responsibility as MRP controller by using the Collective MRP List processing function. Choose the MRP List for Plant 1000 and MRP Controller 0## (where ## is the two-digit code assigned to you in this class).

3.

Sort the list on the next page by days’ supply. Use the help function (F1) and read the definition of days’ supply.

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Solution 17: Additional MRP Topics Task The instructor will run MRP for the entire plant and we will analyze the results. 1.

The instructor will run MRP (online) for the plant. Please note the control parameters for the MRP Planning Run in the table in the Solutions. The instructor will also use the NETPL processing key, which limits the Planning Horizon and uses Net Change planning logic. a)

2.

Plant

1000

Processing Key

NETPL

Create Pur Req

2

Schedule Lines

3

Create MRP List

1

Planning Mode

1

Scheduling

1

Planning Date

Today

Parallel processing

Deselect

Display List

Deselect

User exit information

N/A

Check the MRP Lists that are your responsibility as MRP controller by using the Collective MRP List processing function. Choose the MRP List for Plant 1000 and MRP Controller 0## (where ## is the two-digit code assigned to you in this class). a) b) c)

3.

Logistics → Production → MRP → Total Planning → Online.

Logistics → Production → MRP → Evaluations → MRP List Collective Display. Select the first four or five materials on the newly sorted list, then select Display Selected MRP Lists. Examine the MRP Lists. Use Next Material to move to the next list. Notice the Process indicator: On/Off button, which can be selected after you process each MRP list. This processing indicator can be used as a selection criteria to view future lists.

Sort the list on the next page by days’ supply. Continued on next page

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Use the help function (F1) and read the definition of days’ supply. a) b) c)

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Place your cursor in the days’ supply column and select Sort (binoculars). The list is sorted by Processed MRP List (1st) and Traffic Light (2nd). Change the sort selection so that Planning Plant is first and Days’ Supply is second. Select Execute Sort.


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Exercise 18: Make-to-Stock Production — Independent Requirements and Production Orders Exercise Objectives After completing this exercise, you will be able to: • At the conclusion of these exercises you will be able to: • Enter a customer order for our pump • Check the consumption process

Business Example We will check to see if the Make-to-Stock strategy allows consumption of Independent Requirements by a Sales Order.

Task We will see if in this strategy, the Sales Order consumes or replaces the forecast or Planned Independent Requirements. 1.

2.

Display the Stock Requirements List for pump T-F1## in plant 1000.Transfer the values of the first 5 MRP elements in the list (after the "stock"line) into the table below. Ignore the Planning Time Fence Date

MRP Element Recpt/req’d qty

Available qty

Today

Stock

0

Enter a Sales Order for your pump T-F1##. Use the following data: Order Type

OR (Standard Order)

Sales Organization

1000


10

Division

00

Hit the Enter button. On the next screen, enter the order information: Continued on next page

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Sold-to party

1000

Ship-to party

1000

PO number

po-##

Req. deliv date

Day 15 of Current month + 1

Material

T-F1##

Order Quantity

20

Caution: Save. 3.

What is the Sales Order number?

4.

Display the Stock requirements List for pump T-F1## in plant 1000. Compare the values in the list with the values that you noted down in question 2. Did consumption take place?__________

5.

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If you ran MPS on T-F1## in plant 1000, would the plan change?________


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Solution 18: Make-to-Stock Production — Independent Requirements and Production Orders Task We will see if in this strategy, the Sales Order consumes or replaces the forecast or Planned Independent Requirements. 1.

Display the Stock Requirements List for pump T-F1## in plant 1000.Transfer the values of the first 5 MRP elements in the list (after the "stock"line) into the table below. Ignore the Planning Time Fence Date

MRP Element Recpt/req’d qty

Available qty

Today

Stock

0

a)

Logistics → Production → MRP → Evaluations → Stock requirements List The data below is an example only. Your results will be different. Date

MRP Element

Recpt/req’d qty

Available qty

Today

Stock

June 2

Pln Ord 25956

40

40

June 2

Ind Req

40–

0

July 15

Pln Ord 25957

45

45

July 15

Ind Req

45–

0

Aug 3

Pln Ord 25958

50

50

0

Caution: The order of the elements will vary depending on the Planning Time Fence 2.

Enter a Sales Order for your pump T-F1##. Use the following data: Continued on next page

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Order Type

OR (Standard Order)

Sales Organization

1000


10

Division

00

Hit the Enter button. On the next screen, enter the order information: Sold-to party

1000

Ship-to party

1000

PO number

po-##

Req. deliv date

Day 15 of Current month + 1

Material

T-F1##

Order Quantity

20

Caution: Save. a) 3.

What is the Sales Order number? a)

4.

Logistics → Sales and Distribution → Sales → Order → Create Answer varies from student to student e.g 6343

Display the Stock requirements List for pump T-F1## in plant 1000. Compare the values in the list with the values that you noted down in question 2. Did consumption take place?__________ a)

Logistics → Production → MRP → Evaluations → Stock Requirements List No, independent requirements were not consumed.

5.

If you ran MPS on T-F1## in plant 1000, would the plan change?________ a)

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Lesson Summary You should now be able to: • Describe the process of running MRP for a plant

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Lesson: Scheduling Lesson Overview This lesson aims to teach you about basic-date and lead-time scheduling. As well, it highlights some of the time elements in the R/3 System.


Explain the scheduling techniques used in planned orders and in production orders

Business Example Jobs need to be scheduled on the factory floor using backward scheduling, forward scheduling, or other techniques. It is important to understand the source of various time elements.

Scheduling

Figure 112: Scheduling When MRP performs its scheduling calculations, it determines the procurement dates for materials that are procured externally, and it determines the production dates for materials that are produced in house. The calculations for externally procured materials take into account internal purchasing time, vendor lead time and goods receipt processing time.

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Lesson: Scheduling

For materials produced in-house, two scheduling methods exist: basic-date scheduling and lead-time scheduling.

Figure 113: Basic Dates: Backward Scheduling •

•

•

•

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Basic dates in a planned order for in-house production are the order finish date, the order start date and the planned opening date. The date on which the material must be available is used as the basis for backward scheduling. The system calculates the other dates by moving backwards in time starting from the material-available date. The goods receipt processing time, which is specified in the material master, is the number of work days required to put the material into stock after it has been produced. The in-house production time is also specified in the material master and is in workdays. You may specify a lot size independent value or a lot size dependent value. The latter is comprised of setup, process and interoperation times (queue, move and wait). These fields may be updated directly from the routing. The opening period is the number of work days required for the MRP controller to process the planned order. It is one of the parameters in the schedule margin key, which is specified in the material master.


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Figure 114: Basic Dates: Forward Scheduling For an in-house production planned order, if the order start date calculated by backward scheduling lies in the past, the system automatically switches to forward scheduling. In forward scheduling, the current date is the order start date.

Figure 115: Lead-Time Scheduling In lead-time scheduling, the precise production dates are calculated using routing. Lead-time scheduling takes place when a planned order is converted to a production order or when a production order is created manually. It also takes place during the MRP run when specified in the MRP control parameters. Capacity requirements are created during lead-time scheduling.

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Lesson: Scheduling

To calculate dates, the system backward schedules using the floats that are allocated to the material in the schedule margin key. The float after production is used as a buffer for production disturbances. The float before production accounts for possible date shifts due to capacity constraints at the work center. The operation segments in the routing of queue, setup, process, tear down, wait and move are used to calculate the scheduled start date. Configuration settings govern whether the order start date will be recalculated. If the scheduled dates are calculated to lie outside of the basic dates, the system will use reduction strategies to reduce float times, queue times and/or move times. These strategies are set in configuration. If a date is in the past, the system will forward schedule from today’s date.

Operation Lead Time

Figure 116: Operation Lead Time • •

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The queue time is the time the order normally waits at the work center before it is processed. The system calculates the setup, process and tear-down times based on formulas in the work center record and standard values in the operation record. The wait time is part of the process and it is the time the order waits at the work center after the operation is completed (e.g., parts drying after painting) until it is moved to the next operation.


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The transport or move time is the time the order spends in transit from one operation to the next. It is assigned at the first of the two respective operaions, or is defined in the move time matrix. During lead-time scheduling, earliest and latest start dates (and times) are calculated for all operation segments. The difference between the earliest and latest start dates of the operation is the queue time. The earliest start dates do not include queue time, whereas the latest start dates do. Materials assigned to the operation are scheduled for the earliest start date.

Time Elements: Summary

Figure 117: Time Elements: Summary Order lead time float before production, all operation lead times, float after production, goods receipt processing time Operation lead time queue, setup, process, tear down, wait Float times float before production, float after production Execution time operation setup, process, tear down Interoperation time queue, wait, transport or move

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Sales and Distribution processing time pick/pack time, load time, transit time

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Exercise 19: Unit: Make to Stock Production Topic: Production Orders Exercise Objectives After completing this exercise, you will be able to: • At the conclusion of these exercises you will be able to: Perform Collective Planned Order conversion, Perform Collective Production Order release and do some simple capacity leveling.

Business Example You will create and release production orders for the pump. You will do this using the Collective processing functions in the system. In addition, you will check the material availability and capacity situation at a Work Center. Next, we will execute capacity leveling using the graphical planning table. These are functions that you would perform daily in your production environments

Task We will collectively create and release production orders, check material and capacity availability and then use the graphical planning table to do some capacity leveling without saving the result. 1.

In the previous Unit, you created a Production Order by converting a Planned Order that you selected from the Stock Requirements List. In this Unit, you will create Production Orders using the collective conversion of Planned Orders. Select Planned Orders for material T-F1## only. Use the following data. Plant

1000

MRP Controller

0##

Material

T-F1##

Order Type

PP01

Select Execute. On the following screen select the first 2 Planned Orders, then select the Convert button. 2.

What is the number of the first Production Order that was just created?___________ Continued on next page

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Check the line at the bottom of the screen or look at the refreshed Stock Requirements List. 3.

Navigate to the Production Order Change screen and enter the Production Order that you recorded.

4.

What is the Order start date?________

5.

How many days is the float before production?________

6.

What is the scheduled Order start date?_________

7.

Did reduction take place?_________ Check the reduction indicator — a value in that field implies that reduction did take place.

8.

What is the scheduled Order Finish date?________

9.

How many days is the float after production?________

10. What is the Order finish date?_________

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Solution 19: Unit: Make to Stock Production Topic: Production Orders Task We will collectively create and release production orders, check material and capacity availability and then use the graphical planning table to do some capacity leveling without saving the result. 1.

In the previous Unit, you created a Production Order by converting a Planned Order that you selected from the Stock Requirements List. In this Unit, you will create Production Orders using the collective conversion of Planned Orders. Select Planned Orders for material T-F1## only. Use the following data. Plant

1000

MRP Controller

0##

Material

T-F1##

Order Type

PP01

Select Execute. On the following screen select the first 2 Planned Orders, then select the Convert button. a) b) 2.

Logistics → Production → Production Control → Order → Create → Collective conversion of Planned Orders

What is the number of the first Production Order that was just created?___________ Check the line at the bottom of the screen or look at the refreshed Stock Requirements List. a)

3.

Navigate to the Production Order Change screen and enter the Production Order that you recorded. a)

4.

Varies from student to student e.g. 60002046

Logistics → Production → Production Control → Order → Change

What is the Order start date?________ a)

Varies from student to student


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5.

How many days is the float before production?________ a)

6.

2 working days

What is the scheduled Order start date?_________ a)

7.

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Varies from student to student

Did reduction take place?_________ Check the reduction indicator — a value in that field implies that reduction did take place. a)

8.

What is the scheduled Order Finish date?________ a)

9.

Yes in most cases. Do not worry if there is no reduction. Varies from student to student

How many days is the float after production?________ a)

1 working day

10. What is the Order finish date?_________ a)

Varies from student to student Use the pull down arrow by any of the date fields if you want to display the factory calender.

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Lesson Summary You should now be able to: • Explain the scheduling techniques used in planned orders and in production orders

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Lesson: Material Availability Lesson Overview In this lesson you will learn how to do a manual material availability check and post materials into stock.


Check material availability from within a production order

Business Example In all businesses, material shortages occur at the production floor even when inventory checks are done prior to the order being released. This lesson teaches you how to check a production order for material availability.

Material Availability Check

Figure 118: Material Availability Check •

•

•

238

You may check whether the production order’s material components are available on their requirement date(s). You may customize the system so it will automatically check at order creation and/or release. You may manually check component availability at any time. This includes all components of the order, all components of an operation, or an individual component. System configuration settings determine whether and how the availability check is carried out for each component. This is called the scope of the check. For example, stock in quality inspection may be included in the availability determination, but blocked stock may not.


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Lesson: Material Availability

• •

The availability check compares component requirements with available quantities. The result is the committed quantity. If a production order has missing parts, it is assigned the system status of material shortage.

Material Availability: Missing Parts List

Figure 119: Material Availability: Missing Parts List •

• • •

•

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If the production order material availability check determines that one or more parts are missing, then you may branch to the missing parts list screen. For each component, you can see when the requirement quantity is available. The total commitment date comes from the date of the latest available component. You may change the column sequence in the missing parts list. You also may display other fields, for example, the material description or the storage location. A similar function exists in the missing parts information system. Here, you may display the missing parts lists for one or more materials, one or more orders, one or more requirement dates, etc.


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Exercise 20: Material Availability Exercise Objectives After completing this exercise, you will be able to:

Business Example We will manually check the material availability of our production order. This is done to make sure that production orders can be completed without disrupting the work schedule.

Task You will learn how to check material availability from within a production order. 1.

From within Production Order change mode, select Check Material Availability. The Availability check screen tells us we have a material shortage. Select Missing Parts List to see how much of each component we are missing. We are fortunate, because in the warehouse we have found stock already written off of the various assemblies. We will induct this stock back into the system by using a physical inventory transaction. Note: This is not the best way to solve this shortage, but for the purpose of this exercise it is sufficient. Use today’s date for the count and the document date. The plant is 1000 and the Storage location is 0001. Select Enter. Use the following data.

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Material

Quantity

Stock Type (Sty)

T-B1##

100

1

T-B2##

100

1

T-B3##

100

1

T-B4##

100

1


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Solution 20: Material Availability Task You will learn how to check material availability from within a production order. 1.

From within Production Order change mode, select Check Material Availability. The Availability check screen tells us we have a material shortage. Select Missing Parts List to see how much of each component we are missing. We are fortunate, because in the warehouse we have found stock already written off of the various assemblies. We will induct this stock back into the system by using a physical inventory transaction. Note: This is not the best way to solve this shortage, but for the purpose of this exercise it is sufficient. Use today’s date for the count and the document date. The plant is 1000 and the Storage location is 0001. Select Enter. Use the following data. Material

Quantity

Stock Type (Sty)

T-B1##

100

1

T-B2##

100

1

T-B3##

100

1

T-B4##

100

1

a) b) c) d)

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Logistics → Production → Production Control → Order → Change. Select Check Material Availability and then choose Missing Parts List. Logistics → Materials Management → Physical Inventory → Difference → Enter w/o document reference. Select Save.


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Lesson Summary You should now be able to: • Check material availability from within a production order

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Lesson: Capacity Planning Lesson Overview The objective of this lesson is to show you how capacity planning is done in the R/3 System. You will see how to evaluate capacity – to see what is required versus what is available – and then you will learn level capacity, where you dispatch operations to various work centers depending on where the load is lighter.


Explain the concept of capacity planning

Business Example In all businesses, capacity shortages occur in production. Production orders and lead-time scheduled planned orders, among other orders, put capacity loads on the system.

Figure 120: Capacity Planning: Environment Capacity planning is used in the following areas of R/3: • • • •

244

Production planning and control (PP) Process manufacturing (PI) Plant maintenance (PM) Project systems (PS)


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Lesson: Capacity Planning

• •

Quality management (QM) Personnel planning and development (PD)

Using master data such as material masters, routings and work centers, as well as planned orders and production orders, data is created that represents the available capacity and the capacity requirements.

Figure 121: Capacity Planning Available capacity is the capability of a resource to produce a quantity of output in a particular time period. You define the available capacity at a work center per capacity category. Capacity requirements are calculated when we perform lead-time scheduling. Capacity requirements are the resources needed to produce the projected level of work over a time horizon. Planned orders (with lead-time scheduling) and production orders generate capacity requirements and therefore a load for the resources where they are processed. In capacity evaluation, the system determines the available capacity and the capacity requirements. Capacity leveling is the process of adjusting capacity overloads and underloads at work centers. Capacity reduction occurs as a result of confirmations.

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Figure 122: Available Capacity You may assign one or more capacity categories to a work center. Capacity categories are defined in customizing. Examples are labor, machine, energy and so on. You must maintain data to enable the system to calculate available capacity at that work center for that category. Examples include calendar assignment, start time, stop time, length of breaks, utilization, number of individual capacities. This is maintained in the capacity header screen of the capacity category for the work center. If you indicate that a capacity is pooled, then it may be used by several work centers. An example is a setup team. They can perform setups at several work centers but can only work at one work center at a time.

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Figure 123: Available Capacity • • •

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The duration of the start and finish times for a capacity category in a work center is called the work time. The work time minus the length of breaks is stored in the work center as the operating time. Technical and organizational disruptions are reflected in the capacity utilization factor. For example, if you set the capacity utilization factor to 90 percent, then an eight-hour operating time is reduced to 7.2 hours. This is called the productive operating time. If a work center has four resources that perform a similar function, then we say it has four individual capacities. This has the effect of multiplying the productive operating time in the work center by four. Thus, in this example, the available capacity at this work center for this capacity category is 28.8 hours (the operating time * capacity utilization in percent * the number of available capacities). This definition in the work center is the standard available capacity. We also may define intervals of available capacity at a work center. These are sometimes referred to as shift calendars. For example, a work center may work two 10-hour shifts from July 1 through July 31 although at other times it works a single 9.5-hour shift. By specifying this condition at a work center, we automatically increase its available capacity during that time period.


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Figure 124: Capacity Requirements Capacity requirements come from planned orders (if lead time scheduled), production orders and so on. The routings of these objects contain operations that are performed at work centers. These operations contain standard values that you have established. A one-hour setup time and a three-minute per piece process time are examples of standard values. You must enter formulas on the capacity overview screen of a work center so the system can calculate capacity requirements. An example formula for calculating processing time is the time per piece (a standard value) times the operation quantity (from the order) divided by the base quantity (from the routing). Capacity requirements are updated with completion confirmations. When the operation being confirmed is marked as a final confirmation, any remaining capacity requirements are set to zero.

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Figure 125: Capacity Planning: Subsections We can see the results of the capacity evaluation in various displays as well as in a tabular and graphical planning table. We can perform capacity leveling using either the tabular or graphical planning table.

Figure 126: Tabular Planning Table The tabular form of the planning table may be displayed in several ways: • •

Work center/capacity and several periods Several work centers/capacities and several periods

The table is subdivided into a resources section and a requirements section.

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The resources section shows: • • • •

The name of the work center or capacity and capacity category The periods in which you can dispatch operations The capacity requirements from operations already dispatched in a period The capacity requirements from operations not yet dispatched in a period

The requirements section shows: • •

The requirements that have been dispatched The requirements that have not yet been dispatched

Figure 127: Graphical Planning Table The graphical planning table enables you to carry out detailed planning of capacity requirements continuously over time. This table consists of charts that are arranged one below the other and in which the available capacity and the capacity requirements can be grouped according to various criteria and displayed on the same scale. For example, all the capacity requirements for one order, or all the capacity requirements dispatched to one capacity can be grouped together. Every chart consists of a table section and a diagram section. The table section contains information for identifying and describing the objects displayed in the diagram section.

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The diagram section is a window in which the available capacity and the capacity requirements are displayed with their start and finish dates. This window displays the same segment for all the charts. You can change this segment as you like by adjusting the scale.

Figure 128: Operation Dispatching Dispatching operations is the main function of capacity leveling. Operations are dispatched to the time when sufficient capacity exists for them to be performed. To dispatch an operation you must first select it. If you want to dispatch several operations you can select them using the Shift key, by drawing a frame around them, or by selecting all the operations in a chart. In manual dispatching you can specify the dispatching date by overwriting the default date determined by scheduling. Operations are dispatched according to their scheduled dates. However, if operations have the same scheduled dates the system determines the dispatching sequence. The system can dispatch operations in sequences that minimize the overall setup time. With finite scheduling operations, are dispatched at times when remaining available capacity exists. You can define a planning strategy to ensure that the scheduled dates of the operation are adhered to.

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When dispatching is saved, midpoint scheduling is always carried out. In midpoint scheduling the system starts from the operation dispatched and schedules backwards for the preceding operations in the order and forwards for the following operations in the order.

Figure 129: Confirmation: Types and Functions You may confirm data for an individual operation. You may confirm data for several operations from one or more production orders at the same time. Milestone and progress confirmations cause the reported operation as well as previous operations in the sequence to be updated. An order confirmation confirms all operations in the order. You may only use this type of confirmation if no confirmations have been created for individual operations. You may use the data from a previous confirmation as a reference for your current operation. You may cancel a confirmation.

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Figure 130: Confirmation: Backflushing Backflushing is the deduction from inventory of component parts based on the production count of assemblies produced. If you confirm an order or operation with components that have the backflushing indicator set, the system automatically posts a goods issue for those components. You can specify whether a material is backflushed in three places in the master data: • • •

Routing Material Master Work center

The backflush indicator may also be maintained in the production order.

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Figure 131: Final Delivery and Technical Completion In order settlement, the costs collected in an order are allocated to one or more receivers. When final delivery has been made for a production order, it can be settled. If no final delivery can be made, then the order status must be set to technically completed before the order can be settled. The status of technically completed may be assigned to a single order or to several orders.

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Exercise 21: Collective Release/Capacity Planning Exercise Objectives After completing this exercise, you will be able to: • Collectively release production orders • Level capacity

Business Example Task 1.

In the previous lesson, you released a production order by performing the order release function within the Production order change screen. In this exercise you will release a production order, using the collective order release function, for our newly created production order. Use the data provided. List

Order Headers

Profile

000001 Standard Profile

Function

Release

Release control order (under Function parameters)

Order Release

2.

Display your production order, select Operation overview and write down the work center where operation 0050 is performed.

3.

Display the work center load report for this work center. Enter the work center and the plant and select Standard overview.

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4.

What is the Capacity category of the capacity requirements?

5.

What are the total requirements (in hours) for this capacity category for this work center?

6.

Carry out capacity leveling for this work center using the planning table.

7.

What are the system statuses of operation 0050?

8.

What date and time is operation 0050 scheduled to start?


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Solution 21: Collective Release/Capacity Planning Task 1.

In the previous lesson, you released a production order by performing the order release function within the Production order change screen. In this exercise you will release a production order, using the collective order release function, for our newly created production order. Use the data provided. List

Order Headers

Profile


Function

Release


Order Release

a) b)

c) d)

e) f)

2.

List

Order Headers

Profile


Function

Release


Order Release

Select Execute. In the following screen, Order Information System: Overview Order Headers, select the first order by checking the box to the left of the Production Order number and selecting Execute mass processing. This releases the production order. Display the log for this order by selecting the box to the left of this order and then selectingOrder Log. Afterward, return to the order header by selecting the order in the Order Information screen and choosing Change Header. Check the changed status REL.

Display your production order, select Operation overview and write down the work center where operation 0050 is performed. a)

3.

Use the menu tree to go to the Mass processing screen: Logistics → Production → Production Control → Control → Mass Processing. Enter the Material T-F1## and the Production plant 1000, then select Mass Processing and make the following settings.

Logistics → Production → Production Control → Order → Display.

Display the work center load report for this work center. Continued on next page

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Enter the work center and the plant and select Standard overview. a) 4.

What is the Capacity category of the capacity requirements? a)

5.

b) c) d) e)

DSPT (dispatched) and REL (released).

What date and time is operation 0050 scheduled to start? a)

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Logistics → Production → Capacity Planning → Leveling → Work Center View → Graphical Planning Table. Enter the work center and plant and then select Continue. Use the Zoom in icon as required to better view the display. Change the time scale on the graph by selecting Settings → Scale → Daily period split. Select the operation either on the left or right side and select Dispatch. The operation is dispatched to the work center. Select the dispatched operation, choose Change order, and go to the operation overview.

What are the system statuses of operation 0050? a)

8.

6.67 hours. Do not worry if your answer is different.

Carry out capacity leveling for this work center using the planning table. a)

7.

002 Labor.

What are the total requirements (in hours) for this capacity category for this work center? a)

6.

Logistics → Production → Capacity Planning → Evaluation → Work Center View → Load.

The answer will vary from student to student (for example, June 8 at 07:00:00).


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Lesson Summary You should now be able to: • Explain the concept of capacity planning

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Unit Summary

Unit Summary You should now be able to: • Describe the principles of the make-to-stock planning strategy • Carry out a master production scheduling run • Describe the process of running MRP for a plant • Explain the scheduling techniques used in planned orders and in production orders • Check material availability from within a production order • Explain the concept of capacity planning

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Unit Summary

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Test Your Knowledge


Process net requirements planning allows adjustments to the production plan based on future inventory. Determine whether this statement is true or false.

True False 2.

In make-to-stock production, production quantities and dates are provided by the material forecast material forecast. Fill in the blanks to complete the sentence.

3.

MPS is used to smooth productions to accommodate fluctuations in which of the following? Choose the correct answer(s).

A B C D 4.

Sales Volumes Forecasts Production Schedule MRP

MRP is normally carried out after MPS planning is finished. Determine whether this statement is true or false.

True False 5.

Describe the function of a planning time fence

6.

Setting a lot-sizing restriction can be used to restrict the amount of stock needed to satisfy the demand in the net requirements calculation. Determine whether this statement is true or false.

True False

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7.

List the enhanced functions of the stock/requirements list:

8.

The MRP list can be set with a process indicator process indicator. Fill in the blanks to complete the sentence.

9.

The basis for backward scheduling depends on which of the following? Choose the correct answer(s).

A B C D

Date on which the order must be filled Date on which the material must be ordered Date on which the material must be available Date on which the schedule was entered

10. Lead-time scheduling only takes place when a planned order is converted to a production order. Determine whether this statement is true or false.

True False 11. Lead time in backwards scheduling uses floats in order to account for what?

12. The availability check compares component requirements with available quantities. Determine whether this statement is true or false.

True False

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Test Your Knowledge

13. List the components of capacity planning.

14. Different confirmation types and their functions include: Choose the correct answer(s).

A B C D E

Confirmation of data for an individual level Confirmation of data for several operations from one or more production orders at the same time Order confirmations Data from a previous confirmation All of the above

15. Backflushing is the deduction from inventory of component parts based on the production count of assemblies produced. Determine whether this statement is true or false.

True False 16. It can be determined whether material has been backflushed in what places in the master data? Choose the correct answer(s).

A B C D

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Routing Material Master Work Center All of the above


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Answers 1.

Process net requirements planning allows adjustments to the production plan based on future inventory. Answer: False Process net requirements planning allows adjustments to the planning plan based on on-hand inventories.

2.

In make-to-stock production, production quantities and dates are provided by the material forecast. Answer: material forecast With make-to-stock production, material forecast provides the quantities and dates

3.

MPS is used to smooth productions to accommodate fluctuations in which of the following? Answer: A, B, C MPS is used to smooth production to accommodate fluctuations in sales volumes, forecasts or production output.

4.

MRP is normally carried out after MPS planning is finished. Answer: True MPS is carried out first.

5.

Describe the function of a planning time fence Answer: A planning time fence is a point in time that marks a boundary, inside of which changes to the schedule may adversely affect component schedules, capacity plans, customer deliveries, or costs.

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Test Your Knowledge

6.

Setting a lot-sizing restriction can be used to restrict the amount of stock needed to satisfy the demand in the net requirements calculation. Answer: True By setting a lot-sizing restriction, the user can restrict the amount of stock needed to satisfy the demand in the net requirements calculation.

7.

List the enhanced functions of the stock/requirements list: Answer: There are various display options for the stock/requirements list: You can display various dates (the availability date or the goods receipt date); you can work with display filters and selection rules; and you can work in the period totals display. You can define the display and save this in your personal settings.

8.

The MRP list can be set with a process indicator. Answer: process indicator In contrast to the stock/requirements list, the MRP list can be set with a processing indicator, which serves to mark lists that have already been processed.

9.

The basis for backward scheduling depends on which of the following? Answer: C The date on when the material must be available is the basis for backward scheduling.

10. Lead-time scheduling only takes place when a planned order is converted to a production order. Answer: False Lead-time scheduling takes place when a planned order is converted to a production order or when a production order is created manually.

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11. Lead time in backwards scheduling uses floats in order to account for what? Answer: Lead time in backwards scheduling uses floats before production to account for possible date shifts to capacity constraints at the work center, and uses floats after production to provide a buffer for production disturbances. 12. The availability check compares component requirements with available quantities. Answer: True The availability check compares component requirements with available quantities. The result is the committed quantity. 13. List the components of capacity planning. Answer: Availability capacity, scheduling, capacity requirements, capacity evaluation and leveling, and capacity reduction. 14. Different confirmation types and their functions include: Answer: E Different confirmation types and their functions include: Confirmation of data for an individual level, several operations from one or more production orders at the same time, order confirmations, and data from a previous confirmation. 15. Backflushing is the deduction from inventory of component parts based on the production count of assemblies produced. Answer: True Backflushing is the deduction from inventory of component parts based on the production count of assemblies produced. If you confirm an order or operation with components that have the backflushing indicator set, the system automatically posts a good issue for those components.

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Test Your Knowledge

16. It can be determined whether material has been backflushed in what places in the master data? Answer: D You can specify whether a material is backflushed in three places in the master data: routing, material master, and work center.

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Unit 5 Make-to-Order Production Unit Overview This unit is where we leave the make-to-stock strategies behind and begin learning about make-to-order. We introduce two make-to-order planning strategies (20 and 82), discuss the meaning of segments on the stock/requirements and MRP lists, and show the control functions of the individual/collective indicator. Next we discuss strategy 82: assembly processing with production order.

Unit Objectives After completing this unit, you will be able to: • • • •

Explain the Make-to-Order production strategy Interpret the individual customer segment in the planning reports State the main difference between Make-to-Order production and assembly processing Define variant configuration

Unit Contents Make-to-Order Production Strategy ..........................................270 Assembly Processing with Production Order................................276 Exercise 22: Assembly Processing ...........................................281 Introduction to Variant Configuration .........................................289

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Unit 5: Make-to-Order Production

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Lesson: Make-to-Order Production Strategy Lesson Overview This lesson will teach you about the concept of sales orders driving demand and the fact that in a Make-to-Order environment, the system segregates each order as a planning segment in the stock/requirements list.

Lesson Objectives After completing this lesson, you will be able to: • •

Explain the Make-to-Order production strategy Interpret the individual customer segment in the planning reports

Business Example Precision Pumps manufactures certain heavy-duty pumps only when a customer orders one.

Make-to-Order Planning

Figure 132: Make-to-Order Planning •

•

270

Make-to-Order (MTO) planning means warehouse stock is built up to satisfy the requirements of each sales order. Each product is produced when an appropriate sales order is received. SAP has several planning strategies that support make-to-order planning.


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Lesson: Make-to-Order Production Strategy

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• •

•

One of the strategies that will be discussed in this unit is make-to-order production, also called strategy 20. Assembly processing is a part of make-to-order planning. The strategies used here are similar to the other make-to-order strategies, with the exception that they automatically create a procurement element (for example, a production order) when a sales order is received. The other strategy that will be discussed in this unit is assembly processing with a production order, also called strategy 82.

Make-to-Order Production

Figure 133: Make-to-Order Production You do not enter planned independent requirements in demand management for materials that are planned with Make-to-Order strategies. Instead, a sales order item initiates the Make-to-Order process. The example contains two sales orders from different customers for the same finished product, material X.

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Figure 134: Make-to-Order Production The lot-for-lot lot-sizing procedure is normally used in MRP for Make-to-Order production parts, independent of the lot-sizing procedure set in the material master. MRP, therefore, creates a planned order for each sales order item. The planned order quantity corresponds to the sales order item. Each sales order item of the corresponding planned order is displayed in an individual segment in the MRP list (and the stock/requirements list). In the previous exercises, the MRP list had only one segment, called the net segment. The net requirements calculation would consider issue and receipt elements in the entire MRP list. If the MRP list, however, has several segments, the issue and receipt elements only apply to one particular segment. Therefore, the planned order created by MRP only applies to the sales order item in question.

Figure 135: Make-to-Order Production

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After it is produced, the finished product is forwarded to the sales order stock of one specific sales order item. You must manage the finished product stock individually for each sales order item. In this example, each individual customer segment contains the same finished product.

Figure 136: Make-to-Order Production The sales order stock is reduced when goods are issued to a sales order. The customer requirements are reduced in planning when goods are issued to a sales order. The stock/requirements list will no longer show the requirement for the quantity issued, and the MRP list generated in the next MRP run will not include the quantity issued. If the sales order delivery is considered to be complete and no sales order stock is left, any remaining customer requirements are removed from planning. They will not be contained in the stock/requirements list, or in the MRP list when next generated by MRP.

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Individual/Collective Requirements Indicator

Figure 137: Individual/Collective Requirements Indicator A Make-to-Order production strategy is used for material X; two sales orders have been entered and the planning run has taken place. The stock/requirements list shows two customer segments: one for each sales order item. Suppose you want one or more components from the bill of material (BOM) to be produced or procured for the same sales order as the higher-level assembly. To accomplish this, you will use the individual/collective requirements indicator, which is in the MRP view of the material master. A setting of 1 designates individual requirements. This means the component is produced or procured for the same requirement as the higher-level assembly. A separate segment is created for each requirement. In the example, two customer stock segments are maintained for material Y. A setting of 2 designates collective requirements. This means the component is being produced or procured for several requirements (that is, not for any specific requirement). In the example, material Z is planned using a lot-for-lot lot-sizing procedure and the five pieces of the material in the make-to-stock inventory are offset against requirements. A blank setting designates the component is planned the same way as its higher-level assembly. If you need BOM control for this indicator, use the Expansion field in the BOM item. This overwrites the material master setting.

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Lesson Summary You should now be able to: • Explain the Make-to-Order production strategy • Interpret the individual customer segment in the planning reports

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Lesson: Assembly Processing with Production Order Lesson Overview We will show you strategy 82, or Assembly Processing with Production Order, where a sales order created for the material that has this strategy automatically creates a production order for the same amount without the need to run MRP. This is useful in industries where lead time is an issue.


State the main difference between Make-to-Order production and assembly processing

Business Example There are cases when a business needs to react quickly to a customer order. This is typically true in the personal computer industry, which we will use for our example in this lesson. In Assembly Processing with Production Order, the customer service representative taking a sales order also does an availability check of components to ensure that delivery dates can be met. The representative can price the sales order and save it. The order is then created and scheduled in production without running MRP; this ensures that time is not lost waiting for MRP to run. There is tight integration between the sales order and the corresponding production order in strategy 82.

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Lesson: Assembly Processing with Production Order

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Assembly Processing

Figure 138: Assembly Processing •

• •

Assembly processing is a form of Make-to-Order production. In Assembly Processing, procurement elements are generated at the same time as sales order items. In general, the components of the finished product are already produced in Assembly Processing. A component availability check, delivery date determination, and preliminary costing are carried out during sales order processing.

Figure 139: Assembly Processing: Process Flow

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•

•

•

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When the assembly processing with production order strategy is used, a production order is created when the sales order is entered. No planning run takes place. Production order processing through goods receipt posting is carried out for each individual sales order using the functions of the PP module. The delivery is created in the sales and distribution (SD) module.

Figure 140: Assembly Processing: Availability Check •

• • •

278

One advantage of assembly processing is that you can check component availability when creating the sales order. Because the finished product is not usually kept in stock, checking component availability is more appropriate. The confirmation date depends on the date of the last component available. The quantity confirmed depends on the available quantity of the component with the smallest committed quantity. You can change the sequence of columns and/or fields in the missing parts list dynamically. If you do not require the availability check, or if you do not want to view the component list or the missing parts list, you can switch this function off in the system configuration.


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Figure 141: Assembly Processing: Changes Changes to dates and quantities made in the sales order take effect in the production order until: • • • •

An operation is partially confirmed (system status = PCNF). An operation is fully confirmed (system status = CNF). The order header system status is set to deleted, locked or technically completed. A component is withdrawn for the production order.

Changes made to quantities or dates in the production order will only affect the schedule lines in the sales order.

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Exercise 22: Assembly Processing Exercise Objectives After completing this exercise, you will be able to: • Create a new material, BOM, and routing for a make-to-order pump • Enter a sales order and create a production order automatically • Check how sales and production orders are integrated

Business Example You need to create a new pump using components from an existing pump. You will use make-to-order assembly processing, for which a production order is created on the basis of the sales order. You will then check the integration using a predefined role (activity group).

Task 1 To select the correct activity group or predefined role, follow the instructions provided in the unit Planning and Execution with Final Assembly. Choose either Menu → Display menu of an activity group or select Other menu. In the following screen, you can select activity group LO050II using the Find (binoculars) icon. You can then return to the standard menu by choosing Menu → SAP standard menu or by selecting SAP standard menu.

Task 2 You will now create a new pump as a finished product by copying the material, BOM, and routing of pump T-F1##. 1.

First, create a new material master for the new pump T-G1##. Material: T-G1## Industry sector: Mechanical engineering Copy from material: T-F1## Select all basic data views, sales views Sales Org. Data 1 and Sales Org. Data 2, all MRP views, the work scheduling view, and all accounting views. Make sure you fill out ALL the information below. If you do not, your copy will be unsuccessful. Copy to

Copy from

Plant 1000

Plant 1000 Continued on next page

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2.

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Storage Location 0001


Sales Org 1000

Sales Org 1000

Distribution Channel 10


Next, create a BOM for T-G1## by copying the BOM from T-F1##. Material: T-G1## Plant: 1000 BOM usage: 1 This new pump will have two fly wheels. Change the quantity of the appropriate component from 1 to 2.

3.

Finally, create a routing for T-G1## by copying the routing from T-F1##. Material: T-G1## Plant: 1000

Task 3 Set the planning strategy for pump T-G1## in plant 1000 to assembly processing with production order, or strategy 82. Change the material so that it is handled as traditional MRP. 1.

Change the Strategy group field in the MRP 3 view of the material master to the appropriate value. Change the MRP type field in the MRP 1 view of the material master to the value PD.

Task 4 One of the components of the pump T-B3## has its individual/collective indicator set to blank. A sales order for higher-level component will, therefore, cause this component to be produced as a make-to-order part. This component is to be produced for all requirements, not just for the sales order requirement. 1.

Change the individual/collective indicator in the MRP 4 view of the material master for T-B3## to the appropriate value.

Task 5 1.

Enter a sales order for your pump T-G1##. Use the following data:


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Order type

(OR) Standard order

Sales organization

1000

Distribution channel

10

Division

00

Task 6 1.

Display the stock/requirements list for pump T-G1## in plant 1000. Note the individual customer segment, which contains the production order and the sales order. Change the sales order quantity to 1 piece. Hint: Select the sales order, then choose Change element. Caution: Save the sales order. Refresh the stock/requirements list and note the change to the production order.

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Solution 22: Assembly Processing Task 1 To select the correct activity group or predefined role, follow the instructions provided in the unit Planning and Execution with Final Assembly. Choose either Menu → Display menu of an activity group or select Other menu. In the following screen, you can select activity group LO050II using the Find (binoculars) icon. You can then return to the standard menu by choosing Menu → SAP standard menu or by selecting SAP standard menu.

Task 2 You will now create a new pump as a finished product by copying the material, BOM, and routing of pump T-F1##. 1.

First, create a new material master for the new pump T-G1##. Material: T-G1## Industry sector: Mechanical engineering Copy from material: T-F1## Select all basic data views, sales views Sales Org. Data 1 and Sales Org. Data 2, all MRP views, the work scheduling view, and all accounting views. Make sure you fill out ALL the information below. If you do not, your copy will be unsuccessful. Copy to

Copy from

Plant 1000

Plant 1000



Sales Org 1000

Sales Org 1000



a) b) 2.

Logistics → Production → Master Data →Material Master → Material → Create (Special) → Finished Product. Select Save.

Next, create a BOM for T-G1## by copying the BOM from T-F1##. Material: T-G1## Plant: 1000 BOM usage: 1


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This new pump will have two fly wheels. Change the quantity of the appropriate component from 1 to 2. a) b) c) 3.

Select Copy from and copy the BOM from T-F1## to plant 1000 for BOM usage 1. Select all components then choose Copy. Save your new BOM. Logistics → Production → Master Data → Bills of Material → Bill of Material → Material BOM → Create.

Finally, create a routing for T-G1## by copying the routing from T-F1##. Material: T-G1## Plant: 1000 a) b) c)

Logistics → Production → Master Data → Routings → Routings → Standard Routings → Create. Select Copy from, select task list type Routing and choose Enter. The status should be 4 Released (general) and the Usage should be 1 or Production. Save your new routing.

Task 3 Set the planning strategy for pump T-G1## in plant 1000 to assembly processing with production order, or strategy 82. Change the material so that it is handled as traditional MRP. 1.

Change the Strategy group field in the MRP 3 view of the material master to the appropriate value. Change the MRP type field in the MRP 1 view of the material master to the value PD. a) b) c)

Logistics → Production → Master Data → Material Master → Material → Change → Immediately. Select Copy from, select Routing and choose Enter. The status of the new Routing should be 4 (released General) and Usage should be 1 (Production). Select Save.

Task 4 One of the components of the pump T-B3## has its individual/collective indicator set to blank. A sales order for higher-level component will, therefore, cause this component to be produced as a make-to-order part. This component is to be produced for all requirements, not just for the sales order requirement.


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1.

LO050

Change the individual/collective indicator in the MRP 4 view of the material master for T-B3## to the appropriate value. a) b)

Logistics → Production → Master Data → Material Master → Material → Change → Immediately. Answer: 2 = Collective requirements only

Task 5 1.

Enter a sales order for your pump T-G1##. Use the following data: Order type

(OR) Standard order

Sales organization

1000

Distribution channel

10

Division

00

a)

Hit Enter. On the next screen, enter the order information:

b) c)

Sold-to party

1000

Ship-to party

1000

PO number

PO-##

Req. deliv. date

Day 15 of month+1

Material

T-G1##

Order quantity

2

Select Save. Note the messages at the bottom of the screen as the production order is created. What is the sales order and item number? __________ ________ (If you missed it, look at the refreshed stock/requirements list.)

d) e) f)

Logistics → Sales and Distribution → Sales → Order → Create. Answer: Varies, for example 5433 10

Task 6 1.

Display the stock/requirements list for pump T-G1## in plant 1000. Note the individual customer segment, which contains the production order and the sales order.


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Change the sales order quantity to 1 piece. Hint: Select the sales order, then choose Change element. Caution: Save the sales order. Refresh the stock/requirements list and note the change to the production order. a)

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Logistics → Production → MRP → Evaluations → Stock/Reqmts List.


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Lesson Summary You should now be able to: • State the main difference between Make-to-Order production and assembly processing

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Lesson: Introduction to Variant Configuration

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Lesson: Introduction to Variant Configuration Lesson Overview This lesson will explain the meaning of Variant Configuration in the R/3 System and show that it can be a powerful tool in cases where the end product is highly configurable.


Define variant configuration

Business Example Variant Configuration

Figure 142: Variant Configuration Customers could request a product with many options that suit their exact needs. If the number of options is large, no two products are likely to be exactly the same. A pump, for example, may have different drive options, circuits, or directions of rotation. This pump, therefore, has a large number of variants.

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Products with variants often have dependencies between the individual characteristics. Not all combinations of characteristics are allowed. In the case of the pump, for example, a rotary pump with manual and electric drive may be available, but a piston pump may only be available with an electric drive. The term configurable product is used to denote a product that can be manufactured in several variants. It comprises all the possible characteristics of the product, and is therefore not representative of any single product.

Figure 143: Variant Configuration Overview Many steps are necessary to build up the master data for a configurable material. First, you must use the R/3 classification system to describe the product characteristics. You allocate the characteristics to a class used for variant configuration. You maintain object dependencies for characteristics and characteristic values so that only allowed values can be chosen. You must also maintain the necessary settings for the configurable material in the material master. You create a configuration profile by specifying the configuration parameters and allocating the material to the class with the characteristics that describe it. The components and operations for a material are specified in a super BOM and a super task list. You maintain object dependencies for the BOM components and task list operations that can only be selected for particular variants.

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Lesson: Introduction to Variant Configuration

Before you use variant configuration productively, you should simulate the configuration. This allows you to check whether all the data has been correctly maintained.

Figure 144: Configuration of a Pump In the case of products that exist in many variants, the Super BOM contains all the parts that might be required to manufacture the configurable material. The parts actually required can be determined from the object dependencies. Likewise, the Super Routing contains all the operations that could be needed to manufacture the configurable material. The operations and production tools and resources that are actually needed for manufacture can be determined from the object dependencies. A special product structure is dynamically generated for a configurable material during sales order processing.

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Lesson Summary You should now be able to: • Define variant configuration

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Unit Summary

Unit Summary You should now be able to: • Explain the Make-to-Order production strategy • Interpret the individual customer segment in the planning reports • State the main difference between Make-to-Order production and assembly processing • Define variant configuration

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Test Your Knowledge


Planned independent requirements must be entered in demand management for materials that are planned with make-to-order strategies in order to initiate the process. Determine whether this statement is true or false.

True False 2.

Assembly processing is a form of make-to-order production which acknowledges that procurement elements are generated at the same time as the order items, because components of the finished product are already produced in assembly production. List the functions that are carried out during sales order processing.

3.

A variant configuration must contain all of the possible characteristics of the product and all of the operations that can be used to manufacture the product; therefore, it is not representative of any single product. Determine whether this statement is true or false.

True False

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Answers 1.

Planned independent requirements must be entered in demand management for materials that are planned with make-to-order strategies in order to initiate the process. Answer: False A sales order item initiates the make-to-order process.

2.

Assembly processing is a form of make-to-order production which acknowledges that procurement elements are generated at the same time as the order items, because components of the finished product are already produced in assembly production. List the functions that are carried out during sales order processing. Answer: Availability check, delivery date determination, and preliminary costing

3.

A variant configuration must contain all of the possible characteristics of the product and all of the operations that can be used to manufacture the product; therefore, it is not representative of any single product. Answer: True The term configured product is used to denote a product that can be manufactured in several variants. It comprises all the possible characteristics of the product, and is therefore not representative of any single product.

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Unit 6 Repetitive Manufacturing/KANBAN Unit Overview We change from Precision Pump and production orders to Maxitec Computer and Repetitive Manufacturing and KANBAN techniques. Both Repetitive Manufacturing and KANBAN are simplified approaches to manufacturing planning and execution. With Repetitive Manufacturing and KANBAN, it is doubly important to ensure that data is accurate.


Identify the processes required for the planning strategy Planning Without Final Assembly Carry out the processes required for Repetitive Manufacturing Execute a standard KANBAN process

Unit Contents Planning Without Final Assembly .............................................298 Exercise 23: Planning Without Final Assembly .............................303 Repetitive Manufacturing.......................................................313 Exercise 24: Repetitive Manufacturing – Master Data .....................329 Exercise 25: Repetitive Manufacturing – Planning .........................333 Exercise 26: Repetitive Manufacturing – Material Flow....................339 Exercise 27: Repetitive Manufacturing – Backflushing ....................343 KANBAN .........................................................................348 Exercise 28: KANBAN – Master Data........................................361 Exercise 29: KANBAN – General Procedure................................365

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Lesson: Planning Without Final Assembly Lesson Overview This lesson introduces you to the planning strategy Planning Without Final Assembly.


Identify the processes required for the planning strategy Planning Without Final Assembly

Business Example Maxitec Computers manufactures PCs specifically for a sales order in their plant 1200 in Dresden. To keep delivery times as short as possible for the customer, they use repetitive manufacturing techniques to produce the assemblies before receipt of the sales order.

Figure 145: Planning Without Final Assembly

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Lesson: Planning Without Final Assembly

Figure 146: Planning Without Final Assembly: Planned Independent Requirements As make-to-order production, Planning Without Final Assembly (strategy 50) is a strategy in which a product is produced for a specific customer. You use this strategy when the main value added process is the final assembly. The lower-level assemblies are produced or procured before the sales order is received. Receipt of the sales order triggers final assembly. This means you can reduce delivery times without having to produce the complete product in advance. You create the planned independent requirements independently of the sales orders. In this planning strategy, you create the planned independent requirements for the finished product primarily to drive materials. In the MRP run, the system creates planned orders for the finished product according to the planned independent requirements. However, these planned orders cannot be converted into production orders (order type VP). The planned orders for the assemblies and components can trigger production and procurement. (These planned orders are created with the planned order type LA – stock order). These materials are placed into stock. At this point in the business process, no final assembly takes place.

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Figure 147: Planning Without Final Assembly: Sales Order Final assembly is triggered on receipt of the sales order. The sales order appears in an individual customer planning segment in the current stock requirements list. In the next MRP run, the system creates a planned order for this new sales order in the individual customer planning segment. This planned order can be converted to a production order. The planned order quantity is the same as the sales order quantity. Final assembly is carried out after the planned order is converted into a production order. The stock appears in the individual customer segment and is delivered to the customer.

Figure 148: Planning Without Final Assembly: Master Data

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If you want to use the Planning Without Final Assembly strategy, you must make the following settings in the material master record (MRP view): • •

Strategy group = 50 (planning without final assembly) for the finished product Individual/collective indicator = 2 (only collective requirements) for the assemblies to be procured and stocked before receiving the sales order

The Planning Without Final Assembly strategy can be used for non-configurable materials. Other planning strategies are used for configurable materials.

Figure 149: Stocking Level You usually use the Planning Without Final Assembly strategy if the final assembly of the product constitutes a major part of the value-added process. The BOM level up to which you produce before receiving the sales order is called the stocking level.

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Figure 150: Flexible Determination of Stocking Level If, within the product structure, the stocking level is not generally to lie below the finished product level, you can change this using the individual/collective indicator. For example, if you define the individual/collective indicator 1 (only individual requirements) in the material master record (MRP view) for the material motherboard, this material will not be manufactured until receipt of a sales order. Then it is manufactured specifically for this sales order. It is not previously assembled and placed in stock. Only the components of the material motherboard are procured and stored before receipt of the sales order. In this case, the dependent requirements for the motherboard would receive the value of the higher level (PC), for which final assembly is triggered by the sales order as a result of the strategy group 50. The indicator must be set to 2 (only collective requirements) for the components of the motherboard and for the hard disk assembly. You only have to enter the strategy group for the PC itself.

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Exercise 23: Planning Without Final Assembly Exercise Objectives After completing this exercise, you will be able to: • Create planned independent requirements for the end product so that you can use the Planning Without Final Assembly strategy to trigger production of an assembly • Create customer requirements to trigger final assembly of the pre-produced assemblies

Business Example In your plant 1200 in Dresden, you assemble personal computers specifically for a sales order. In order to keep delivery times as short as possible for the customer, you produce assemblies before receipt of sales order. However, since final assembly constitutes a major part of the value added, this final step in production only takes place on receipt of sales order.

Task 1 Plan the production of a personal computer. Use the Planning Without Final Assembly strategy so that assemblies for the end product are ready before sales orders are received. 1.

In the MRP 3 view for Plant 1200, confirm that the Strategy Group is set to 50.

2.

In plant 1200, enter a planned independent requirement for the end product T-F7##.

Task 2 Now that you have created the planned independent requirements for the end product, the complete BOM structure for the PC must be planned in MRP. 1.

Execute an MRP run for the end product T—F7## in plant 1200.

2.

Check the results of the MRP run in the MRP list for the end product T-F7##. With what order type have the planned orders for this material been created? Continued on next page

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3.

Is it possible to trigger final assembly for material T-F7## at this point?

4.

Check the result of the MRP run for assembly T-B5##. Do the planned orders for the assembly have the same order type as the planned orders for the end product (VP)? Is it, therefore, possible to produce the assembly at this point?

Task 3 For the purpose of the exercise, we assume that we have produced the PC assembly T-B5## and have it in stock. Assume that a sales order for the end product T-F7## (PC) has just been received by Sales and Distribution. The end product is to be assembled in make-to-order production. In this example, however, the sales-order-oriented final assembly is to be carried out using discrete manufacturing. 1.

Change the material master for the end product T-F7## by deleting the repetitive manufacturing indicator.

2.

Since the Sales and Distribution module in your plant 1200 will only become active in a few weeks’ time, you work in your PP module, where you can create the sales order that you have received in a leaner form, known as customer requirements. Create customer requirements with a desired delivery date in four weeks’ time. From now on we will use the term sales order instead of customer requirements.

Task 4 Now that you have created the sales order, check how the planned independent requirements have been consumed by the sales order. 1.

Look at the result of consumption for the end product T-F7## in the stock/requirements list.

2.

Have planned independent requirements been consumed by the sales order?

Task 5 After consumption, MRP has to adjust the planned orders to the new requirements situation, since a sales order has been received. 1.

Adjust the planned orders to the new requirements situation. Continued on next page

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2.

Check the results of the planning run for the end product T-F7## in the MRP list.

3.

How has the situation changed?

4.

Has the creation of a sales order and the subsequent MRP run enabled final assembly?

5.

Does receipt of the sales order cause an additional 400 pieces to be produced, or does the sales order for 400 pieces reduce the planned independent requirements from 1000 to 600 pieces?

6.

Will the final assembly of the 400 pieces be carried out using make-to-order production or make-to-stock production?


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Solution 23: Planning Without Final Assembly Task 1 Plan the production of a personal computer. Use the Planning Without Final Assembly strategy so that assemblies for the end product are ready before sales orders are received. 1.

In the MRP 3 view for Plant 1200, confirm that the Strategy Group is set to 50. a) b)

2.

Logistics → Production → Master Data → Material Master → Material → Change → Immediately. Enter Material T-F7##. In the MRP 3 view for Plant 1200, confirm that the Strategy Group is set to 50, Planning Without Final Assembly.

In plant 1200, enter a planned independent requirement for the end product T-F7##. a) b) c) d)

e)

Logistics → Production → Production planning → Demand management → Planned indep.reqmts → Create. Enter the material T-F7## and Plant 1200, then choose Enter. In the next screen, select the line with your material and choose Sched. Lines. Select the period indicator W (week format) and enter a planned independent requirement with a requirements date that lies three weeks in the future. The planned quantity should be 1000 pieces. The planned quantity with period indicator W is to be distributed over the days. You therefore set the indicator D (day format) in the column Splt, and confirm with Enter. Select Save.

Task 2 Now that you have created the planned independent requirements for the end product, the complete BOM structure for the PC must be planned in MRP. 1.

Execute an MRP run for the end product T—F7## in plant 1200. a) b)

2.

Logistics → Production → MRP – Planning → Sng.-item, multi-lvl. Enter the data detailed above and start the MRP run by selecting Enter twice.

Check the results of the MRP run in the MRP list for the end product T-F7##. Continued on next page

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With what order type have the planned orders for this material been created? a) b)

Choose Exit to leave the statistics overview and return to the initial screen for MRP. Evaluations → MRP list → material. Material: T-F7## Plant: 1200

c) d) 3.

Choose Enter. The planned orders have order type VP.

Is it possible to trigger final assembly for material T-F7## at this point? a)

No. Planned orders with order type VP are only relevant for planning. They cannot be used to trigger production at this point. In discrete manufacturing, a planned order with order type VP cannot be converted into a production order at this point (the conversion indicator is not set in the planned order). In repetitive manufacturing, planned orders with order type VP are not printed in the list of run schedule quantities. Production is authorized to start repetitive manufacturing of all planned orders that are included in this list. Production is therefore not triggered for planned orders with order type VP, as these are not included in this list.

4.

Check the result of the MRP run for assembly T-B5##.


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Do the planned orders for the assembly have the same order type as the planned orders for the end product (VP)? Is it, therefore, possible to produce the assembly at this point? a) b) c)

Overwrite the material number in the Material field of the MRP list with the number T-B5## and choose Enter. No. The planned orders for the assembly have order type LA (stock order). In planned orders with order type LA, you can trigger production. Yes, it is possible to build this assembly at this point. In discrete manufacturing, a planned order with order type LA can be converted into a production order (the conversion indicator is set in the planned order). In repetitive manufacturing, a planned order with order type LA can be printed in the list of run schedule quantities and passed on to production. Production is authorized to start repetitive manufacturing of all planned orders that are included in this list. In repetitive manufacturing, you do not convert planned orders into production orders (the conversion indicator in the planned order is therefore not set for repetitive materials).

Task 3 For the purpose of the exercise, we assume that we have produced the PC assembly T-B5## and have it in stock. Assume that a sales order for the end product T-F7## (PC) has just been received by Sales and Distribution. The end product is to be assembled in make-to-order production. In this example, however, the sales-order-oriented final assembly is to be carried out using discrete manufacturing.


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1.

Change the material master for the end product T-F7## by deleting the repetitive manufacturing indicator. a)

Logistics → Production → Master data → Material master Material → Change → Immediately. Material: T-F7##

b) c) d)

Choose Enter and select the MRP 4 view. Choose Enter and select plant 1200. Choose Enter again to enter the MRP 4 view. Here, you can go to the Versions button, select Version 0001 and selectDetails.

e) f)

2.

Next, deselect the REM allowed field, select Continue, and chooseContinue again to get to the MRP 4 view. In the MRP 4 view, deselect the Repetitive manufacturing indicator on the MRP 4 screen and save the modified material master. Note: It would also have been possible to use repetitive manufacturing to trigger the sales-order-oriented final assembly, in which case you would not have had to delete the repetitive manufacturing indicator.

Since the Sales and Distribution module in your plant 1200 will only become active in a few weeks’ time, you work in your PP module, where you can create the sales order that you have received in a leaner form, known as customer requirements. Create customer requirements with a desired delivery date in four weeks’ time. From now on we will use the term sales order instead of customer requirements. a)

Logistics → Production → Production planning → Demand management → Customer Requirements → Create. Delivering Plant: 1200

b)

Choose Enter. Desired delivery date: four weeks from today

c) d) e)

In the Material field, enter T-F7##with an order quantity of 400 pieces. Confirm by selecting Enter. Select Save.


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Task 4 Now that you have created the sales order, check how the planned independent requirements have been consumed by the sales order. 1.

Look at the result of consumption for the end product T-F7## in the stock/requirements list. a)

Logistics → Production → MRP → Evaluations → Stock Requirements List. Material: T-F7## Plant: 1200

b) 2.

Choose Enter.

Have planned independent requirements been consumed by the sales order? a)

Yes. The system has consumed the planned independent requirements that were closest in time to the sales order.

Task 5 After consumption, MRP has to adjust the planned orders to the new requirements situation, since a sales order has been received. 1.

Adjust the planned orders to the new requirements situation. a) b)

2.

Check the results of the planning run for the end product T-F7## in the MRP list. a)

3.

Execute another planning run for the end product T-F7##. Leave the stock requirements list by choosing Exit. MRP → Planning - Sng.-item, multi-lvl or Logistics → Production → MRP → Planning → Sng.-item, multi-lvl.

Starting from the initial screen for MRP: Evaluations → MRP list - material.

How has the situation changed? a)

The system has created a new planned order of 400 pieces for the sales order. This is displayed in the individual planning segment for the sales order. Correspondingly, in the net planning segment, two planned orders for a total of 400 pieces have been deleted.


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4.

Has the creation of a sales order and the subsequent MRP run enabled final assembly? a)

5.

Does receipt of the sales order cause an additional 400 pieces to be produced, or does the sales order for 400 pieces reduce the planned independent requirements from 1000 to 600 pieces? a)

6.

When using the Planning Without Final Assembly strategy, the creation of the sales order reduces the planned independent requirements from 1000 to 600 pieces.

Will the final assembly of the 400 pieces be carried out using make-to-order production or make-to-stock production? a)

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Yes. The newly created planned order for 400 pieces has order type KD (individual customer order). With planned orders with order type KD, as with those with order type LA, you can trigger production.

When using the Planning Without Final Assembly strategy, final assembly is carried out using make-to-order production.


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Lesson Summary You should now be able to: • Identify the processes required for the planning strategy Planning Without Final Assembly

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Lesson: Repetitive Manufacturing

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Lesson: Repetitive Manufacturing Lesson Overview This lesson well help you understand how Repetitive Manufacturing works relative to discrete. At a high level, it shows how processes in Repetitive Manufacturing have been simplified to accommodate a high volume or frequent manufacturing of materials.


Carry out the processes required for Repetitive Manufacturing

Business Example Sometimes, it is more cost efficient to produce the same material over and over again without reference to a production order. When this is the case, you can use Repetitive Manufacturing.

Repetitive Manufacturing

Figure 151: Repetitive Manufacturing

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Figure 152: Repetitive Manufacturing: Overview In Repetitive Manufacturing, a product is typically manufactured over a longer period of time. The production quantities need not be particularly high, nor must a product be produced every day. Typically, the products flow through production. Several products can be produced on one production line. Components are staged at the production line anonymously and periodically. This means they are not staged with reference to any particular order, but all components required in a certain period (for example, for the following day) are staged together. The quantities produced are not usually backflushed per order but per period (for example, the complete quantity produced in one shift). In this topic, we produce the assembly motherboard using Repetitive Manufacturing. To produce the motherboard on the production line, we need the components BIOS, memory and processor.

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Figure 153: Period-Based Planning Repetitive manufacturing simplifies the production control processes. For example, no production orders are needed; only repetitive quantities (planned orders with the order type PE) are used. Repetitive quantities represent the quantities to be manufactured in a certain period (production quantities). Repetitive quantities are created as planned orders; however, they are not converted to production orders. Work centers in repetitive manufacturing are referred to as production lines.

Figure 154: Discrete Manufacturing Versus Repetitive Manufacturing Frequent switching from one product to another is typical of order-based production. Each product is manufactured in individually defined lots, and costs are calculated per order.

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In repetitive manufacturing, the same product is produced on a certain production line over a longer period of time. In production, a total quantity is produced according to a certain production rate over a certain period of time. Costs are collected periodically at a product cost collector. In order-based production, you usually have a changing sequence of work centers where the products are processed. The order of work centers is determined in routings, which can often be very complex. Semi-finished products are frequently placed in interim storage prior to further processing. Repetitive manufacturing usually involves a relatively constant flow through production lines. The routings of the individual products are very similar to those in order-based production. With production orders, component materials are staged with specific reference to the individual production orders. Confirmations for the various steps and orders document the work progress and can be used for fine control. In repetitive manufacturing, components are often staged at the production lines without reference to a particular order. The confirmations (backflushes) are usually executed periodically with no reference to an order (for example, all the quantities produced in one shift).

Figure 155: Discrete Manufacturing Versus Repetitive Manufacturing

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Repetitive Manufacturing: Master Data

Figure 156: Repetitive Manufacturing: Master Data

Figure 157: Master Data: Material Master To allow a material for repetitive manufacturing, you set the indicator Repetitive Manufacturing in the material’s material master record (in the MRP 4 view). This permits various backflushing functions. The Repetitive Manufacturing Profile is also defined in the material master record in the MRP 4 view. It defines, for example, the type of backflushing to be used. The profile is the key field that controls virtually everything taking place in a repetitive environment.

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Production versions contain information on the BOM, routing and production line, as well as any other information required for the production of a particular material. At least one production version must exist for each material to be produced using repetitive manufacturing.

Figure 158: Material Master: Production Versions In repetitive manufacturing, at least one production version must exist for a material to be produced using this method of production. The production version contains data relevant to repetitive manufacturing, and this data is subdivided into three segments. In the basic data section, the fields Valid from and Valid to define the period of validity of the production version. The indicator Repetitive mfg allowed must also be selected. The To location is the proposed receiving storage location. The fields BOM alternative and BOM usage define which BOM is to be used in repetitive manufacturing. In the planning data section, you can determine task lists. You can define task lists for detailed, rate-based and rough-cut planning. Usually, you enter a group and a group counter in the rate-based planning fields. The routing you enter is used for capacity planning. In the basic data section, in the fields From lot size and To lot size, you can define the area of validity for this version. The production line field defines the work center (production line) for assigning production quantities in the planning table. In repetitive manufacturing (in the planning table), the system only displays the capacity requirements for this work center. To be able to carry out capacity planning, this production line must exist in the routing.

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Figure 159: Master Data: Bill of Material (BOM) As in other manufacturing planning and control systems, repetitive manufacturing uses bills of material to determine the necessary components. The simplified processes in repetitive manufacturing allows component backflushing. The system uses the bill of material (BOM) to determine which materials are to be backflushed and the quantity of material to be backflushed. For each BOM item, you can specify a proposed storage location to be used for backflushing. This storage location is usually an issue storage location at or near the production line.

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Figure 160: Master Data: Production Line If you have a simple production line with only one work center, you create the production line as a work center with the work center category 007 in the R/3 System. If you have a complex production line with several line segments (several work centers on one production line), you can create a line hierarchy in Line Design. A line hierarchy is made up of individual line segments, which are created in the system as work centers and grouped under hierarchies. You work with the line segments on the lowest hierarchy level; the segments on the higher level are used for grouping. The name of the line hierarchy corresponds to the name of the highest work center in the line hierarchy. Production lines determine the available capacity. You can maintain different available capacities for different periods. For example, you could define the following: A production line is available for eight hours per day of production for January through April, 16 hours from May through July, shut down for the first two weeks of August, and then back to eight hours of availability from the middle of August until the end of the year. In repetitive manufacturing, capacity planning is only carried out for the work center maintained in the production line field of the production version. The production line is assigned to a cost center.

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Figure 161: Master Data: Rate Routing • •

•

•

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Rate routings are generally used in repetitive manufacturing. A rate routing defines the production rate on the basis of units produced per time period (for example, 1500 units per hour of production). Since the complete production line is planned using the same production rate, rate routings often have only one operation. If necessary, however, you can create several operations. We use rate routings to define standard times and to calculate planned/standard costs.


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Repetitive Manufacturing: Planning

Figure 162: Repetitive Manufacturing: Line Loading

Figure 163: Repetitive Manufacturing: Planning In repetitive manufacturing, the production plan (planned orders) is the basis for all planning activities. You can create planned orders for the planned independent requirements from demand management or for the sales orders from Sales and Distribution (SD). Depending on the planning strategy, the SD sales

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orders can consume the planned independent requirements from demand management. It is also possible to create planned orders for other requirements. The production plan can be created automatically by the MRP run (or MPS). Here, the system uses the information from quota arrangements or the alternative selection indicator (MRP 4) to decide which production version (and therefore which production line) is to be used for production (automatic assignment of the planned orders to the production version). You can also assign the planned orders to the production lines manually in the REM planning table. You also have the option of creating new planned orders in the REM planning table, where you can assign them to a particular production line.

Figure 164: Planning Table: Period-Based Planning If you selected Capacity planning in the initial screen, the system displays the capacity data of all the selected lines in the upper section of the planning table. Capacity overloads are highlighted. Capacity loads on production lines can be caused by several materials. For example, the capacity load on production line two is caused by material A, as well as other materials. Unassigned quantities can be assigned to a production line manually or automatically over a period of time. You can reassign quantities from one production line to another. To do this, you delete the assigned quantity from the production line and reassign it to the appropriate production line. You can also automatically change the assignment over a certain period of time.

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If you have made the appropriate settings in the material master, or if you use quota arrangements, the production quantities created by MRP or MPS can automatically be assigned to a certain production line. Quantities can be changed directly in the planning table by overwriting existing quantities or creating new ones. Changes made in this way are simulative and are not actually saved on the database until you save the planning table.

Figure 165: Processing the Planning Result You can use the planning table to carry out period-based planning. In the planning table, as well as planned orders, you can display and process production orders for discrete production and process orders for process manufacturing.

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Figure 166: Dispatch List The dispatch list contains information on the planned orders to be produced on a production line in a selected period of time. You can print this list of production quantities (dispatch list), which can then be used on the shop floor. You can print this list depending on various selection parameters per line and shift.

Repetitive Manufacturing: Material Staging

Figure 167: Repetitive Manufacturing: Material Staging

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Figure 168: Pull List with Direct Transfer Posting In the pull list, the system displays the material components required for the production line, as well as the quantities required within a certain period of time. If a material shortage exists, you can create a stock transfer for the production line from this list. Here, the system creates a direct stock transfer in the inventory management system. You can also carry out an availability check for the material components.

Repetitive Manufacturing: Backflushing

Figure 169: Repetitive Manufacturing: Backflushing

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Figure 170: Backflushing in Repetitive Manufacturing When you backflush in repetitive manufacturing, the system carries out the following activities: • • • • • •

Posts the goods receipt for the assembly Posts the goods issues for the components Reduces the planned orders Reduces the capacity requirements Posts the actual costs to the product cost collector Updates the statistics (Logistics Information System)

When backflushing, the system expands the BOM valid for the material on the posting date, or the fixed BOM from the planned order. When saving the data, the system posts the goods receipt for the assembly. Using the information from the BOM expansion, the system posts the goods issues for the components. At the same time, material documents and accounting documents are created. In repetitive manufacturing, you can create various reports for analyzing production costs. When backflushing in repetitive manufacturing, various data can be updated in the Logistics Information System (LIS). You can execute the analysis of the data in the LIS from the main menu of repetitive manufacturing.

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Exercise 24: Repetitive Manufacturing – Master Data Exercise Objectives After completing this exercise, you will be able to: • Know which master data to maintain for repetitive manufacturing

Business Example Task 1 In plant 1200, PC-assembly T-B5## is to be repetitively manufactured on production line T-L3##. The master data has already been maintained but needs to be verified. 1.

Is the material authorized for repetitive manufacturing?

2.

Check which production version can be used to produce the material in repetitive manufacturing.

3.

Which production lines can be used to repetitively manufacture the assembly?

Task 2 Look at the routing for material T-B5## in plant 1200. 1.

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How high is the production rate, that is, how many materials are produced per hour? To find out, look at the columns Base quantity, Production time and Unit.


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Solution 24: Repetitive Manufacturing – Master Data Task 1 In plant 1200, PC-assembly T-B5## is to be repetitively manufactured on production line T-L3##. The master data has already been maintained but needs to be verified. 1.

Is the material authorized for repetitive manufacturing? a)

Logistics → Production → Master data → Material master Material → Display → Display current. Material: T-B5##

b) c)

Choose Enter. In the dialog box, select MRP 4. Choose Enter. Plant: 1200

d)

Choose Enter. The material is authorized for repetitive manufacturing with the indicator Repetitive manufacturing in the material master.

2.

Check which production version can be used to produce the material in repetitive manufacturing. a)

3.

Choose Versions and go through the different versions, selecting each one and choosing Details.

Which production lines can be used to repetitively manufacture the assembly? a)

According to the production version, the assembly T-B5## can be produced on production lines T-L3## and T-L4##.

Task 2 Look at the routing for material T-B5## in plant 1200.


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1.

How high is the production rate, that is, how many materials are produced per hour? To find out, look at the columns Base quantity, Production time and Unit. a)

Logistics → Production → Master data → Routings → Rate routings → Display. Material: T-B5## Plant: 1200

b) c)

Choose Enter and select group counter 1. Look at the columns Base quantity, Production time and Unit. Thirty pieces are produced per hour.

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Exercise 25: Repetitive Manufacturing – Planning Exercise Objectives After completing this exercise, you will be able to: • Assign planned orders to your production lines

Business Example In plant 1200, the PC assembly T-B5## can be repetitively manufactured on production lines T-L3## and T-L4##. Since the available capacity of your main production line T-L3## is restricted, capacity must be taken into account when assigning planned orders for the assembly to production lines.

Task 1 You have already created planned orders for the PC assembly T-B5## in a previous exercise. Now we will look at the effect this exercise has on planning for the PC assembly. 1.

Check the planning situation for assembly T-B5## in the stock/requirements list. Which quantities are to be produced?

Task 2 Now use the planning table to assign planned orders to production lines, taking capacity into account: 1.

Access the planning table using Logistics → Production → Repetitive manufacturingPlanning → Planning table → Change mode. Plant: 1200

2.

Start by activating assignment mode for your assembly.

3.

Now you can assign the planned quantities in the not yet assigned row to production lines. Assign some quantities to line T-L3##. When making the assignments, make sure that the capacity load utilization for line T-L3## does not exceed 100 percent. You can assign any remaining quantities to the alternative production line T-L4##. Copy the assigned values of the Planning Table to the table below.


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Material

Period

Assigned quantity

What order type do the planned orders have now that they have been assigned to production lines? To find out, select an assigned planned order and look at the Order type field.

Task 3 Now that you have assigned production quantities to the lines, you can print the list of run schedule quantities for production line T-L3## and pass it on to production. 1.

Starting from the initial screen for Repetitive Manufacturing, display the list of run schedule quantities for production line T-L3##.

Task 4 1.

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In this exercise, have you triggered production by converting planned orders into production orders?


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Solution 25: Repetitive Manufacturing – Planning Task 1 You have already created planned orders for the PC assembly T-B5## in a previous exercise. Now we will look at the effect this exercise has on planning for the PC assembly. 1.

Check the planning situation for assembly T-B5## in the stock/requirements list. Which quantities are to be produced? a)

Logistics → Production → MRP → Evaluations → Stock/reqmts list. Material: T-B5## Plant: 1200

b)

The quantities of four planned orders are to be produced for 200, 200, 200 and 400.

Task 2 Now use the planning table to assign planned orders to production lines, taking capacity into account: 1.

Access the planning table using Logistics → Production → Repetitive manufacturingPlanning → Planning table → Change mode. Plant: 1200 a) b)

c)

d) e) f) g)

Under the Selection by production version area, input T-L3## for the production line. Next go to the Additional selections area and select Control. Set the indicator Line overview. This instructs the planning table to also display other production lines, if the materials produced on line T-L3## can also be produced on other production lines. Next, in the Additional selections area, select Scheduling and set the indicators Capacity planning and Rate-based plng (the planning table will now display the capacity requirements created by your rate routings). Check that the Prod./basic dates field is set to Production dates. Settings → Save. Select Execute Planning table. The system displays a dialog box. Select all of the proposed production lines and choose Enter. You have now entered the planning table. You can scroll to your planned orders using Page right. Continued on next page

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2.

Start by activating assignment mode for your assembly. a) b)

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Select the not yet assigned row for material T-B5## in the Material data table by selecting the button at the start of the row. Choose Switch on/off assign mode. An truck symbol appears at the start of the row, signifying that you are in assignment mode for this row.

Now you can assign the planned quantities in the not yet assigned row to production lines. Assign some quantities to line T-L3##. When making the assignments, make sure that the capacity load utilization for line T-L3## does not exceed 100 percent. You can assign any remaining quantities to the alternative production line T-L4##. Copy the assigned values of the Planning Table to the table below. Production Line

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Material

Period

Assigned quantity

What order type do the planned orders have now that they have been assigned to production lines? To find out, select an assigned planned order and look at the Order type field. a) b)

Leave the planning table by choosing Save. Now that they have been assigned to production lines, the planned orders have type PE (run schedule quantity) .

Task 3 Now that you have assigned production quantities to the lines, you can print the list of run schedule quantities for production line T-L3## and pass it on to production.


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1.

Starting from the initial screen for Repetitive Manufacturing, display the list of run schedule quantities for production line T-L3##. a)

Logistics → Production → Repetitive Mfg → Planning → Production list. Plant: 1200 Production line: T-L3##

b)

Choose Execute. The system displays the list of run-schedule quantities, which lists the quantities to be produced.

Task 4 1.

In this exercise, have you triggered production by converting planned orders into production orders? a)

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No. In repetitive manufacturing, you do not convert planned orders into production orders. The conversion indicator in the planned order is not set for repetitively manufactured materials; therefore, you have not converted any planned orders into production orders in this exercise.


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Exercise 26: Repetitive Manufacturing – Material Flow Exercise Objectives After completing this exercise, you will be able to: • Use the pull list to stage components at your production line

Business Example In plant 1200, the PC assembly T-B5## is produced on production line T-L3##. In order to produce the assembly, the necessary components must be staged at the production line.

Task Before production of the PC assembly can commence, the components must be staged at the production line. Here, you use the pull list to execute stock transfer from the central warehouse to the production line.

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Access the pull list for production line T-L3##. Make sure Staging type under Stor.loc.level is checked.

2.

For which materials have planned requirements caused missing parts over the next two weeks?

3.

Which of these components are to be replenished via KANBAN?

4.

Next, execute replenishment of component T-T6##.

5.

Carry out stock determination for component T-T6##. You do this to find out from which storage location you can obtain your components.

6.

At which storage location has the system found an available quantity for component T-T6##?

7.

Copy the stock selection by choosing Copy.

8.

Carry out the actual transfer posting of component T-T6## from central warehouse 0001 to production storage location PL03 at the production line.


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Solution 26: Repetitive Manufacturing – Material Flow Task Before production of the PC assembly can commence, the components must be staged at the production line. Here, you use the pull list to execute stock transfer from the central warehouse to the production line. 1.

Access the pull list for production line T-L3##. Make sure Staging type under Stor.loc.level is checked. a) b)

Logistics → Production → Repetitive manufacturing → Material Staging → Pull list → trigger replenishment. Check Stor.loc.level. Plant: 1200 Selection period for requirements: end of the current week + 3

c)

Make sure that the Planned Order tab is selected. Production line: T-L3##

d) 2.

For which materials have planned requirements caused missing parts over the next two weeks? a)

3.

None. Scroll to the right of the table, and look under the column K.

Next, execute replenishment of component T-T6##. a) b)

c) 5.

Missing parts are displayed for material T-T6##.

Which of these components are to be replenished via KANBAN? a)

4.

Choose Execute.

Choose T-T6##and select Replenishment elements. Enter the quantity of component T-T6## that you want to stage at the production line. If you want to stage exactly the same quantity as is shown for missing parts, choose the component T-T6## by selecting the button at the start of the row. Choose Replenishment prop..

Carry out stock determination for component T-T6##. You do this to find out from which storage location you can obtain your components. a)

Select material T-T6## in the lower table and choose Batch/stock determ.. Continued on next page

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6.

At which storage location has the system found an available quantity for component T-T6##? a)

The system has found an available quantity for component T-T6## at storage location 0001.

7.

Copy the stock selection by choosing Copy.

8.

Carry out the actual transfer posting of component T-T6## from central warehouse 0001 to production storage location PL03 at the production line. a) b)

Select the row for material T-T6## on the lower table and choose the Stage. Select Save. As soon as you save, the system makes the transfer posting for the material. The components must then be physically transported from the central warehouse to the production storage location.

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Exercise 27: Repetitive Manufacturing – Backflushing Exercise Objectives After completing this exercise, you will be able to: • Execute the repetitive manufacturing final backflush for the assemblies you have produced

Business Example In plant 1200, you have produced PC assembly T-B5## on production line T-L3##. Now you have to backflush the quantity produced in the R/3 System.

Task You have produced 100 T-B5## PC assemblies. 1.

Execute the repetitive manufacturing final backflush.

2.

To which storage location does the backflush take place? How has the system determined this "to location"?

3.

Choose Post with correction. Which components are backflushed in the final backflush?

4.

Choose Save to post the repetitive manufacturing final backflush. The final backflush backflushes the components and reduces the planned quantities (planned orders). Check the system to see how the planned quantities (planned orders) have been reduced by the final backflush.

5.

Copy the assigned values of the Planning Table to the table below. Production Line

Material

Period

Assigned quantity


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Compare the entries with the table in the Planning exercise. How have the planned quantities (planned orders) changed?

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Solution 27: Repetitive Manufacturing – Backflushing Task You have produced 100 T-B5## PC assemblies. 1.

Execute the repetitive manufacturing final backflush. a) b)

Logistics → Production → Repetitive manufacturing. Backflush → REM backflush. Plant: 1200 Material: T-B5## Prod. version: 0001(this contains production on production line T-L3##) Backflush quantity: 100 pieces

c) 2.

To which storage location does the backflush take place? How has the system determined this "to location"? a) b)

3.

The backflush takes place to storage location PL01. The system takes this storage location from the production version.

Choose Post with correction. Which components are backflushed in the final backflush? a)

4.

Choose Enter.

Components T-TE##, T-T6##, T-T7## and T-B7## are backflushed in the final backflush.

Choose Save to post the repetitive manufacturing final backflush. The final backflush backflushes the components and reduces the planned quantities (planned orders). Check the system to see how the planned quantities (planned orders) have been reduced by the final backflush. a) b) c) d) e)

5.

Logistics → Production → Repetitive manufacturing. Planning → Planning Table → Change mode. In plant 1200, select Production lineand enter production line T-L3##. Choose Planning Table and select all of the production lines the system has proposed. Entertakes you to the planning table. Choose Page right.

Copy the assigned values of the Planning Table to the table below. Continued on next page

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Compare the entries with the table in the Planning exercise. How have the planned quantities (planned orders) changed? a)

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The planned orders have been reduced by the receipt quantities (100 pieces).


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Lesson Summary You should now be able to: • Carry out the processes required for Repetitive Manufacturing

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Lesson: KANBAN Lesson Overview This lesson will teach you the basics of KANBAN and how you can use it as an effective tool to plan some of your components.


Execute a standard KANBAN process

Business Example The company procures components using KANBAN to simplify inventory management and to push decision making down to the factory worker.

Figure 171: KANBAN

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Figure 172: KANBAN In KANBAN, material flow is organized using containers, which are kept at the appropriate work centers in production. Each contains the quantity of material that work center personnel need for a certain period of time. As soon as a container is emptied at the demand source, replenishment is initiated. The supply source for the required material can be another place in production, an external supplier, or a warehouse. The demand source can use material from buffer containers until the actual container returns to full. The aim is for the production process to be controlled by production itself, and to reduce the manual tasks required of personnel. This self-management process, and the fact that replenishment elements are created close to the time they are actually consumed, means that stocks are reduced (replenishment is only triggered when a material is actually required and not before) and lead times are shortened. Another advantage of KANBAN is that replenishment data is transmitted, to a great extent, automatically. That is, scanning the bar code on a KANBAN card suffices to transmit the data needed for procurement and to post the goods receipt upon receipt of the material. KANBAN in summary: Material is staged where it is used. It remains there, in small material buffers, ready for use. Thus, material staging does not need to be planned. Instead, material that is consumed is replenished immediately using KANBAN.

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Figure 173: The KANBAN Card In KANBAN production control, the KANBAN signal for delivery of a material can be triggered by a demand source sending a card to a supply source. The card describes which material is to be delivered where and the quantity to be delivered. These cards are called KANBANs as a result of the KANBAN method of production. It is also common practice to refer to a container as a KANBAN. You can print the KANBAN cards from the R/3 System. Forms are used to define the content and layout of the cards. The form PSFC_KANBAN, which contains a bar code, is shipped with the standard system. Scanning the bar code with a standard bar code scanner suffices to transmit the data needed for procurement and to post the goods receipt upon receipt of the material. R/3 has a special transaction for scanning KANBAN bar codes, so additional driver software or interfaces are not necessary.

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Lesson: KANBAN

Figure 174: Push Principle/Pull Principal Comparison In traditional production and material requirements planning, production quantities and dates are calculated at product level, dependent on current customer or planned independent requirements. The required quantities and materials staging dates are determined in the BOM expansion. In this procedure, the system calculates lot sizes by referring to the lot-sizing procedure. Lots are generally completed at each manufacturing level before being available for the next manufacturing level. The component staging dates determined by MRP are the basis for detailed scheduling of production or, for purchased parts, the order dates (although the exact point in time at which the material will be needed for the next manufacturing level is often not known at the time of scheduling). The material is pushed through production on the basis of the times calculated (push principle). This procedure can result in queue times before the start of production. These queue times are generally dealt with by increasing lead times or using float after production (order buffer). This often leads to the use of increased safety stocks to achieve constant service levels. With KANBAN, instead of being pushed through production by higher-level planning, materials are requested from the supply source by production at the manufacturing level where they are needed (pull principle). When a container is empty, the KANBAN signal is created; that is, the demand source requests the required material from the supply source using, for example, a card.

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Figure 175: MRP/KANBAN: Comparison Advantages of KANBAN: • • • • •

KANBAN is a simplified form of production control: As far as possible, replenishment is controlled by production. Manual posting effort is kept to a minimum. The material is available directly on the shop floor; this saves the organizational effort required to stage the material. The production quantities correspond to actual requirements; this reduces stock levels. Lead times are shortened.

Business Management Environment for KANBAN •

• • • •

The supply source must deliver the material quickly. – Short setup times – Availability of capacity and components Material should have steady requirements. It should not be produced in advance (Production quantity = KANBAN quantity). Responsibility is shifted from central planning to the production floor. The quality of the material placed in the KANBAN has to be close to 100 percent.

The problem some organizations have with implementing KANBAN is not the production method, but meeting the necessary prerequisites. Sometimes the necessary conditions can only be created for certain areas of production. To use KANBAN effectively, a number of conditions must be met:

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•

•

•

The supply source must be able to deliver the material quickly and in small lots. Setup times at the supply source should be short and availability of capacity and components ensured. Parts controlled using KANBAN should be relatively uniformly consumed over the replenishment time. If a material is sometimes used in large quantities, and in smaller quantities at other times, a large number of containers are necessary to ensure material availability. There will then be relatively high levels of stock during periods when the material is used less. The material should not be produced in advance, as this would lead to unnecessary materials being procured and stored.

Figure 176: KANBAN: Master Data

Figure 177: Supply Area

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Structure and organization of production are important when introducing KANBAN. With KANBAN, material is staged directly in production in specific areas, known as supply areas. A supply area can be used by one or more work centers. The supply areas act as a buffer for the necessary materials (for example on shelves or in marked out areas on the floor). The supply areas established for the shop floor are defined in the R/3 System in customizing for KANBAN. The supply area is a data object used to organize material flow for KANBAN, but is not an inventory management object. Supply areas therefore have to be assigned to storage locations in customizing for KANBAN. Inventory management (which is relevant, for example, for posting goods receipts) takes place at the storage location to which the supply area is assigned. Another significant organizational prerequisite is that you create a responsible person for each supply area. The person responsible monitors the stocks in his/her supply areas. The responsible person(s) are defined as MRP controllers in customizing for MRP and are assigned to the supply area in customizing for KANBAN.

Figure 178: KANBAN Control Cycle To control the relationship between supply and demand source, you define what is known as a control cycle. The control cycle defines: • •

• •

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The demand source and the supply source The form of replenishment, for example, replenishment via purchase order for external procurement or via repetitive quantities for in-house production or via stock transfer reservations for stock transfer The number of containers circulating between the supply source and the demand source, as well as the quantity per container The data on replenishment and delivery


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Lesson: KANBAN

•

Printing parameters

Figure 179: Supply Sources in the KANBAN Procedure KANBAN replenishment is regulated using replenishment strategies. The replenishment strategy defines what methods are used to produce or procure the container quantity, that is, which replenishment element the system creates. Within the area of in-house production, you can organize replenishment using planned orders (repetitive manufacturing), production orders (discrete manufacturing), manual KANBAN (you can print cards, but not create replenishment elements) or using container control/MRP (mix of KANBAN and MRP). With replenishment using container control/MRP, replenishment elements are not created in KANBAN but in MRP. Setting the container status to full and empty then simply controls the material flow. In in-house production, the person responsible for production is given as the supply source. This individual is responsible for the area of production that delivers materials to other production areas. In external procurement, you can organize replenishment using purchase orders, delivery schedules, stock transport orders, stock transport scheduling agreements, supply source, or container control/MRP. In external procurement, the supply source is a vendor. If deliveries refer to a specific contract, this is also entered in the supply source data. With plant-to-plant relationships, a delivering plant is entered instead of a vendor.

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In the area of stock transfer, you can organize replenishment using stock transfer reservations, direct transfer posting, or container control/MRP. With stock transfer, the supply source is a delivering storage location.

Figure 180: Excluding Materials from MRP If you want to use KANBAN in R/3, you must have excluded the material from MRP at the storage location at which you wish to use KANBAN. This has the effect that no replenishment elements (such as planned orders) are created by the planning run for this material in this storage location. A replenishment element is only created when a container is set to empty. You therefore set a material as KANBAN not at plant level in the material master, but for each storage location (using the MRP indicator in the MRP 4 view). This makes it possible to set replenishment by MRP at one storage location, and replenishment by KANBAN for the same material at another storage location in the same plant. If you have excluded a material from MRP at a storage location, the system opens a new individual planning segment (material excluded from MRP at storage location) in the stock/requirements list. The system determines the storage location in the BOM expansion. In the BOM expansion, MRP sees the storage location for each dependent requirement and, where appropriate, creates no procurement elements for the dependent requirements (since they are to be generated using KANBAN at these storage locations). If a component is withdrawn from several storage locations, the issue storage location is defined as a production storage location in the BOM item for the component. If a component is only withdrawn from one storage location, you can define this issue storage location as a production storage location in the material master for the component.

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Lesson: KANBAN

If all the components of an assembly are withdrawn from one storage location, you can define the issue storage location for all the components as issue storage location in the production version for the assembly.

Figure 181: General KANBAN Procedure

Figure 182: Setting the KANBAN to Empty The progress of production in KANBAN is controlled by setting the KANBAN to the appropriate status. Usually, only the two statuses, empty and full, are used. If the status is set to empty, the system creates a replenishment element, instructing the supply source to deliver.

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You can set the status to empty by scanning a bar code on the KANBAN card. To do this, scan the bar code using a standard bar code scanner in the transaction KANBAN signal —> Bar code. You can also set the status to EMPTY using transaction manual KANBAN signal or in the KANBAN board.

Figure 183: Setting KANBAN to Full When you set the status to full, the system posts the goods receipt automatically for the material with reference to the procurement element. You can set the status to empty by scanning a bar code on the KANBAN card. To do this, scan the bar code using a standard bar code scanner in the transaction KANBAN signal → Bar code. You can also set the status to emptyusing transaction Manual KANBAN signal or in the KANBAN board. If additional information is required for a special case, it is possible to set other statuses: •

•

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Wait indicates that the material has been consumed but the supply source should not yet deliver more material. In Transit indicates that the material is currently on its way to the demand source. The first four statuses only make sense if you use the KANBAN board. These statuses are actually set in the KANBAN board and inform you of exactly how far production has progressed.


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Lesson: KANBAN

Figure 184: KANBAN Board The KANBAN board displays an overview of container rotation and also allows you to trigger the KANBAN signal (for example, setting to full or empty). You can choose between various displays: • •

• •

•

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In the demand source view, you can display the control cycles by supply area (various selection criteria are available). For each control cycle, you see all the KANBANs in rotation and their current status. From here, the demand source can set KANBANs to empty and full without the use of bar codes. The supply source view gives the supply source an overview of its worklist (various selection criteria are available). Here, the supply source can see which containers are still full and which must be replenished. It is not the responsibility of the supply source to set KANBANs to emptyand full, so this function is not allowed in the supply source view. The plant overview gives you an overview of work progress in each control cycle, either for one plant or per plant (various selection criteria are available).


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Lesson: KANBAN

Exercise 28: KANBAN – Master Data Exercise Objectives After completing this exercise, you will be able to: • Exclude a material from MRP for a specific storage location • Create supply areas in Customizing for KANBAN • Define the link between supply and demand source using a control cycle, thereby defining replenishment strategy

Business Example In plant 1200, you use repetitive manufacturing to produce the assembly T-B5##. In order to produce the assembly, the component T-T7## (BIOS) must be staged directly at the production line. Stocks of this component are replenished via external procurement from vendor 2 (Electronic Components Distributor) using KANBAN. The components are delivered directly to a supply area, which is directly at the production line.

Task 1 Component T-T7## (BIOS) is procured using KANBAN. Check to see if the Master Data is set up correctly for KANBAN. 1.

Check whether material T-T7## in plant 1200 at storage location PL03 is excluded from MRP, so that its replenishment elements are not generated via MRP but via KANBAN.

2.

Is this material excluded from MRP at storage location PL03?

3.

Is the same material T-T7## also excluded from MRP at storage location 0001 in plant 1200?

4.

Which MRP indicator is set for this material at storage location 0001?

5.

Look at the stock/requirements list for material T-T7## in plant 1200.

6.

How does the system display materials that are excluded from MRP at a storage location in the stock/requirements list?

7.

Supply area T-P3## has been set up to stage materials at the production line. Display the supply area T-P3## in plant 1200 by going to the Control Cycle.

8.

To which storage location and person responsible is the supply area assigned?


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Task 2 In plant 1200, component T-T7## (BIOS) in supply area T-P3## is to be staged directly at the production line. 1.

Check the control cycle to see which replenishment strategy is used to stage material at the production line.

2.

Since we are dealing with a control cycle for external procurement, the supply source in this case is a vendor. Which supply source has been entered in the control cycle for replenishment of component T-T7##?

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Solution 28: KANBAN – Master Data Task 1 Component T-T7## (BIOS) is procured using KANBAN. Check to see if the Master Data is set up correctly for KANBAN. 1.

Check whether material T-T7## in plant 1200 at storage location PL03 is excluded from MRP, so that its replenishment elements are not generated via MRP but via KANBAN. a)

Logistics → Production → Master data → Material master → Material → Display → Display current. Material: T-T7##

b) c)

Choose Enter and select the MRP 4 view. Choose Enter. Plant: 1200 Storage location: PL03

d) 2.

Is this material excluded from MRP at storage location PL03? a)

3.

Logistics → Production → MRP → Evaluations → Stock/reqmts list.

How does the system display materials that are excluded from MRP at a storage location in the stock/requirements list? a)

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The MRP indicator for material T-T7## at storage location 0001 is set to blank, which means that at storage location 0001, the material is planned using MRP.

Look at the stock/requirements list for material T-T7## in plant 1200. a)

6.

Choose Organizational Levels. Enter 0001 in the Storage Location field and choose Enter. No. Material T-T7## is not excluded from MRP at storage location 0001.

Which MRP indicator is set for this material at storage location 0001? a)

5.

Yes. Material T-T7## is excluded from MRP at storage location PL03.

Is the same material T-T7## also excluded from MRP at storage location 0001 in plant 1200? a) b) c)

4.

Choose Enter.

Materials that are excluded from MRP at a storage location are displayed in an individual planning segment in the stock/requirements list. Continued on next page


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Supply area T-P3## has been set up to stage materials at the production line. Display the supply area T-P3## in plant 1200 by going to the Control Cycle. a)

Logistics → Production → KANBAN → Control cycle → Display. Material: T-T7## Plant: 1200 Supply area: T-P3##

b) c) 8.

Choose Enter. Select Display Supply Area.

To which storage location and person responsible is the supply area assigned? a)

The supply area is assigned to storage location PL03 and the person responsible is L3.

Task 2 In plant 1200, component T-T7## (BIOS) in supply area T-P3## is to be staged directly at the production line. 1.

Check the control cycle to see which replenishment strategy is used to stage material at the production line. a)

Logistics → Production → KANBAN → Control cycle → Display. Material: T-T7## Plant: 1200 Supply area: T-P3##

b) 2.

Choose Enter.

Since we are dealing with a control cycle for external procurement, the supply source in this case is a vendor. Which supply source has been entered in the control cycle for replenishment of component T-T7##? a)

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The supply source is vendor 2 (Electronic Components Distributor).


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Exercise 29: KANBAN – General Procedure Exercise Objectives After completing this exercise, you will be able to: • Use the KANBAN board to set a KANBAN to empty • Use the KANBAN board to set a KANBAN to full

Business Example In plant 200, you use purchase orders to procure component T-T7## from vendor 2 (Electronic Components Distributor), and to bring it directly to the supply area at the production line. In other words, for each container you require, a purchase order is created.

Task 1 Determine the current KANBAN situation in the system. 1.

Access the demand source view of the KANBAN board for supply area T-P3## in plant 1200.

2.

How many containers are there in the R/3 System for replenishment of material T-T7##?

Task 2 Let us assume that you, as the demand source, have just taken the last component out of a KANBAN container. 1.

From the KANBAN board, select one of the KANBAN bins and choose To Empty, thereby setting one KANBAN bin for material T-T7## to empty. In order to check the result of your action, go directly from the KANBAN board into the stock/requirements list.

2.

For what quantity has the purchase order been created?

3.

What is the current available quantity of material T-T7## at storage location PL03?

4.

Why is the available quantity at storage location PL03 displayed separately in the stock/requirements list?


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Task 3 Let us assume that you have just received a full container from the supply source.

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1.

In the KANBAN board, set the KANBAN for material T-T7## to full.

2.

What is the result in the stock/requirements list?


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Solution 29: KANBAN – General Procedure Task 1 Determine the current KANBAN situation in the system. 1.

Access the demand source view of the KANBAN board for supply area T-P3## in plant 1200. a) b) c)

Logistics → Production → KANBAN . Control → KANBAN board → Demand Source View. As area selection, select Supply area. Supply area: T-P3##

d) 2.

Choose Enter. The system displays the KANBAN board.

How many containers are there in the R/3 System for replenishment of material T-T7##? a)

Five containers are available for replenishment of material T-T7##.

Task 2 Let us assume that you, as the demand source, have just taken the last component out of a KANBAN container. 1.

From the KANBAN board, select one of the KANBAN bins and choose To Empty, thereby setting one KANBAN bin for material T-T7## to empty. In order to check the result of your action, go directly from the KANBAN board into the stock/requirements list. a)

2.

For what quantity has the purchase order been created? a)

3.

Position the cursor on the row in the KANBAN board for material T-T7## and choose Goto → Stock/reqmts list. A purchase order has been created for a quantity equal to the KANBAN container quantity (20 pieces).

What is the current available quantity of material T-T7## at storage location PL03? a)

The current available quantity of material T-T7## at storage location PL03 is 0 pieces.


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Why is the available quantity at storage location PL03 displayed separately in the stock/requirements list? a) b)

Go back to the KANBAN board by choosing Back. All data for material T-T7## at storage location PL03 is displayed separately, because the material is excluded from MRP at this storage location and, hence, has its own planning segment.

Task 3 Let us assume that you have just received a full container from the supply source. 1.

In the KANBAN board, set the KANBAN for material T-T7## to full. a)

2.

What is the result in the stock/requirements list? a)

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Select the empty KANBAN bin and choose To Full. Because a goods receipt has been posted for the KANBAN container quantity (20 pieces), the available quantity for material T-T7## at storage location PL03 has increased by 20 pieces. The purchase order is no longer displayed.


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Lesson: KANBAN

Lesson Summary You should now be able to: • Execute a standard KANBAN process

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Unit Summary You should now be able to: • Identify the processes required for the planning strategy Planning Without Final Assembly • Carry out the processes required for Repetitive Manufacturing • Execute a standard KANBAN process

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Test Your Knowledge


Which production method is used when the Planning Without Final Assembly strategy is carried out?

2.

The Planning Without Final Assembly strategy is usually used if the assembly of a product constitutes a major part of the value-added process. Determine whether this statement is true or false.

True False 3.

In repetitive manufacturing, the same product is produced on a certain production line over a longer period of time. It involves a relatively constant flow of the product through production lines, and components are often staged at the production lines without reference to a particular order. Determine whether this statement is true or false.

True False 4.

List the master data elements that are needed in repetitive manufacturing.

5.

In repetitive manufacturing, the production plan can be created from which of the following? Choose the correct answer(s).

A B C D E

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demand management SD MRP run Repetitive manufacturing planning table All of the above


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6.

When backflushing in repetitive manufacturing, what are the activities carried out by the system?

7.

An advantage of the KANBAN procedure is that material staging does not need to be planned because material consumed is immediately immediately replenished. Fill in the blanks to complete the sentence.

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8.

List the master data required for KANBAN.

9.

What is required to set the KANBAN bin to empty or full?


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Test Your Knowledge

Answers 1.

Which production method is used when the Planning Without Final Assembly strategy is carried out? Answer: Make-to-order production

2.

The Planning Without Final Assembly strategy is usually used if the assembly of a product constitutes a major part of the value-added process. Answer: True You usually use the Planning Without Final Assembly strategy if the final assembly of the product constitutes a major part of the value-added process.

3.

In repetitive manufacturing, the same product is produced on a certain production line over a longer period of time. It involves a relatively constant flow of the product through production lines, and components are often staged at the production lines without reference to a particular order. Answer: True Components are staged at the production line anonymously; that is, they are not staged with reference to any particular order. The components are usually staged periodically.

4.

List the master data elements that are needed in repetitive manufacturing. Answer: Material master, product versions, BOM, production line, and rate routing

5.

In repetitive manufacturing, the production plan can be created from which of the following? Answer: E The production plan is created from demand management, SD, MRP run, and repetitive manufacturing planning tables.

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When backflushing in repetitive manufacturing, what are the activities carried out by the system? Answer: Posting of goods receipt for the assembly; posting of the goods issues for the components; reduction of the planned orders; reduction of the capacity requirements; posting of the actual costs to the product cost collector; and updating of the statistics (LIS)

7.

An advantage of the KANBAN procedure is that material staging does not need to be planned because material consumed is immediately replenished. Answer: immediately The aim is for the production process to be controlled by production itself, and to reduce the manual tasks required of personnel.

8.

List the master data required for KANBAN. Answer: Supply area

9.

What is required to set the KANBAN bin to empty or full? Answer: The bar code on the KANBAN card is necessary to set the bin to empty or full.

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Unit 7 Special Topics Unit Overview In simulative planning or delay analysis, we run MRP in simulation mode and review the delays to planned orders by lower level components. We can drill down to these components and potentially solve or improve the situation, and if we do not save our changes there is no change to the database. If we like the changes and save them, only then ill MRP be carried out. In long-term planning, we explain how long-term planning it is carried out, what data is needed and what the outputs are. We usually compare the long-term plan to the operative plan or other long-term plans and, if and when we like the long-term plan, we can make this the active or the operative plan. Advanced Planner and Optimizer (APO) is a constraint-based planning tool, unlike R/3 and MRP, but it uses the same Master Data as R/3 to speed up the process. APO uses LiveCache to respond faster and there is a close link with the Business Warehouse. APO can be a stand-alone product that interfaces with any ERP system, though, quite frankly, we think ours is the best.


Describe the principles of long-term planning Explain the concepts of simulative MRP Describe the fundamental idea behind Advanced Planner and Optimizer (APO)

Unit Contents Long-Term Planning ............................................................376 Simulative MRP .................................................................389 Advanced Planner and Optimizer (APO).....................................394

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Lesson: Long-Term Planning Lesson Overview You will learn how long-term planning can be carried out in the R/3 System.


Describe the principles of long-term planning

Business Example Management at Precision Pump wants to know the effect of a possible change in long-term demand.

Figure 185: Long-Term Planning

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Lesson: Long-Term Planning

Figure 186: Aims of Long-Term Planning The principle of long-term planning is to simulate various versions of the demand program using the operative planning master data. You can perform the simulation in terms of material requirements planning, capacity planning, order volumes, purchasing budget, cost center planning and inventory controlling.

Figure 187: Position of Long-Term Planning In long-term planning, you can create independent planning areas that are integrated in operative planning. These planning areas vary because the simulative data is separate for each area. Each scenario has its own simulative planning area in the system. The planning areas are independent of one another and of the operative area.

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There are no restrictions for periods in long-term planning. You can use long-term planning on a long-term, mid-term or short-term basis, depending on the periods for which the data is to be simulated and evaluated.

Figure 188: Position of the Functional Environment Long-term planning uses the same algorithms for the scenarios as operative planning. The foundation of long-term planning is the operative master data: material master records, BOMs, routings and work centers. You can use long-term planning BOMs and routings, which differ from the operative BOMs and routings, in the scenario for simulative purposes. You can compare the simulation results of the simulative planning areas (scenarios) with one another and with the operative planning situation. In this way, you can determine the demand program that is best suited for MRP, capacity planning, order volumes, the purchasing budget, cost center planning and inventory controlling. Several tools available in long-term planning are used in same way as those in operative planning.

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Figure 189: Long-Term Planning: Process Flow The Long-term planning process can be carried out by using the steps below: • • • • • • • • •

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Create a planning scenario 0## by selecting the appropriate control parameters. Select the Planned Independent Reqmts (PIR) version ## to simulate in. Select the Plants to include in the scenario. Copy the Active Version 00 of the PIR to the PIR version created above ##. Change the PIR version ## to reflect the long-term plan. Run Long Term Planning for scenario 0##. Evaluate the stock/requirements list for this scenario and compare with the active list or other scenarios. Do the Capacity, Purchasing, Costing and Inventory Reporting. When satisfied with the results, make scenario 0## active.


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Figure 190: Planning Scenario You define a simulative planning area in the system by using a planning scenario. You set the parameters in the planning scenario for simulation in this period. To define a planning scenario you can make the following selections: • •

• •

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Plants for which the simulation is to be carried out Which planned independent requirements versions are to be simulated (you can use existing operative versions or versions specially created for long-term planning) Whether to carry out make-to-order production and individual project planning for the materials assigned Whether sales orders are to be included in long-term planning (you cannot change sales orders)


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Figure 191: Planning Scenario Additional selections to define the planning scenario are: • • • • •

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On which plant stock is the simulation based (zero stock, safety stock, plant stock at time of planning, or average plant stock) The period for which long-term planning should be carried out (you have the option to choose short-, mid- or long-term) Whether to include purchase orders, production orders, or material reservations Whether dependent requirements are to be created for consumption-based planning, KANBAN materials and bulk goods Which version of available capacity to use


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Figure 192: Planning Scenario More selections to define the planning scenario include: •

• •

•

382

Whether fixed receipts of the operative area (purchase orders, production orders, or material reservations) are to be included in long-term planning. If so, fixed receipts are included in the net requirements calculation but cannot be changed. Production orders can also be included in capacity planning. Whether the planning time fence is to be used. Whether firm planned orders from operative planning are to be included in long-term planning. You can make changes to firm planned orders and they are included in the net requirements calculation. If capacity requirements were created in the planning run, they are also included in capacity planning. Whether firm purchase requisitions in the operative area are to be included in long-term planning. If so, firm purchase requisitions already scheduled for the short term are included in the net requirements calculation, but cannot be changed.


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Figure 193: Simulative Requirements You can create planned independent requirements versions for a material using: • • • • • •

Sales & Operations Planning Forecasting Planned independent requirements from another material Planned independent requirements versions of the same material The original plan for the material Manual creation

You can set a planned independent requirements version to active or inactive. Operative planning only takes active versions into account; the operative demand program results from the sum of all active planned independent requirements versions. Inactive versions are created for simulation. If, in addition to planned independent requirements, customer requirements exist in a simulation planning area, the system uses the same logic to calculate requirements as in operative planning.

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Figure 194: Carrying Out Long-Term Planning You must release the planning scenario for a simulative planning area before you can carry out long-term planning. The simulative planning run uses the same logic as the operative planning run. The system only creates planned orders in long-term planning. After the simulation, you can activate the planned independent requirements version in the planning scenario. After activation, the new planned independent requirements version applies to operative planning.

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Figure 195: Capacity Check with Overload Display Capacity requirements by simulated planned orders are created when you carry out lead-time scheduling in the long-term planning run. If the system creates simulative capacity requirements in the simulative planning run, you can carry out a capacity check and capacity leveling. If settings have been made in the planning scenario such that production orders or firm planned orders from operative planning are to be included in the simulative planning area, then the system includes these capacity requirements in the capacity display.

Figure 196: Evaluations

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You can compare the results of simulative and operative planning for a material. If you have multiple scenarios, you can compare the results of one simulative plan for a material with another plan. Data for external procurement can be transferred to the Purchasing Information System by a special report and then evaluated. You can also create and evaluate standard analyses for materials, vendors and material groups directly from long-term planning. Future stocks are based on the requirements entered and the future receipts. The data from long-term planning on the stock/requirements situation could be transferred to inventory controlling and evaluated there with the standard analysis. The data determined in long-term planning for activity requirements is transferred to cost center accounting as planning data. This enables product costing for each cost center and material. The activity requirement calculated in long-term planning can be transferred to cost center accounting by using a report after long-term planning is complete. The planning data for the cost centers is updated by the activity requirement being determined for the routing data. Cost center planning determines how much activity was used by production.

Figure 197: Planned Independent Requirements The operative demand program is the sum of all active planned independent requirements versions. You can activate the planned independent requirements version by maintaining the Active indicator or by activating the planning scenario. You do this by transferring the source planned independent requirements version to the target planned independent requirements version.

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Activating an inactive planned independent requirements version is usually done to create independent requirements for the operative demand program. If you choose an already active version as the target version for the transfer when activating a version and the periods for the source and target planned independent requirements version overlap, the system overwrites the target version with the source version.

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Lesson Summary You should now be able to: • Describe the principles of long-term planning

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Lesson: Simulative MRP Lesson Overview This lesson talks about Simulative MRP in the R/3 System.


Explain the concepts of simulative MRP

Business Example

Figure 198: Simulative MRP: Business Situation In the example, we see a bill of material structure with a total replenishment lead time of 20 days. This is greater than the time from today to the finished product’s required date, which is only 12 days. Some lower-level components should have already had procurement or production started in order to meet the required date of the finished item. This situation causes an expedite condition for some of the components, as well as for the finished item.

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Figure 199: Scheduling Problems After Simulating the MRP Run Simulative MRP is a tool that can analyze this situation and assist the planner in taking appropriate action. When you run simulative MRP, it expands an item’s bill of material and performs scheduling calculations in the same way as MRP. To calculate the start date of the planned order for the finished product, MRP backward schedules from the required date using lead-time information from either the material master or the routing. The order finish date of the planned orders for the assemblies is based on the start date of the finished product’s planned order. This backward scheduling process continues for the raw materials. Whenever an order start date is calculated to be in the past, MRP starts from today’s date and schedules forward. However, simulative MRP keeps all order proposals (planned orders, purchase orders, schedule lines, etc.) in main memory. You can check the planning results while in simulative mode. The system displays any scheduling problems that occur in the lower levels of the BOM in the form of an exception message. Evaluation functions, such as the order structure report and the pegged requirements report, enable you to quickly find a specific scheduling problem.

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Figure 200: Simulative MRP: Possible Solution In our example, one possible action is to displace the availability date of the finished product’s planned order eight days into the future of the required date, and then firm it. Next, trigger another planning run of the planned order in delay for the material and the lower-level BOM nodes. You can carry out these steps without leaving the transaction.

Figure 201: Simulative MRP: Main Memory and Database The planning results of the BOM structure are kept in main memory. During this time, you can process the planning results of every material in the structure. You can change the planned orders, purchase requisitions or schedule lines manually, and you can plan a BOM node separately.

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If you accept all of the planning results, the system saves the simulative results of the entire BOM structure in the database. Otherwise, discard the results by not saving.

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Lesson Summary You should now be able to: • Explain the concepts of simulative MRP

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Lesson: Advanced Planner and Optimizer (APO) Lesson Overview This lesson gives you an introduction to Advanced Planner and Optimizer (APO) and its relationship to R/3 and Business Information Warehouse (BIW).


Describe the fundamental idea behind Advanced Planner and Optimizer (APO)

Business Example The production planners want the ability to see the effect on their plan when processing of a lower-level assembly or component should have taken place before today.

Figure 202: APO as a Planning Tool You can use the new SAP product Advanced Planner and Optimizer (APO) instead of the R/3 Material Requirements Planning (MRP). This product is part of the New Dimensions product series from SAP. APO enables integrated, global representation, planning, and monitoring of all processes in the logistical chain in detail.

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Lesson: Advanced Planner and Optimizer (APO)

Open, standard interfaces enable a smooth integration of SAP systems, and a highly-integrated solution for R/3, old systems, and systems from other suppliers. APO is highly efficient with LiveCache, an SAP technology for memory resident data processing. APO is a pure planning machine. Inventory management, sales order entry, and order execution and control (Manufacturing Execution) take place outside APO, in the R/3 System, for example. Orders (planned, production, or process orders), as the result of a planning run, can be generated and changed with APO. The APO Core Interface (CIF) links APO with R/3. The data is stored on both sides (APO and R/3).

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Lesson Summary You should now be able to: • Describe the fundamental idea behind Advanced Planner and Optimizer (APO)

Related Information Planning with APO is dealt with in more detail in courses AP010 through AP230.

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Unit Summary

Unit Summary You should now be able to: • Describe the principles of long-term planning • Explain the concepts of simulative MRP • Describe the fundamental idea behind Advanced Planner and Optimizer (APO)

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Unit Summary

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Test Your Knowledge


Describe the principle of long-term planning.

2.

List the parameters used for long-term planning.

3.

Data is written automatically when entered in MRP. Determine whether this statement is true or false.

True False 4.

Simulative MRP is a tool that can analyze delays by expansion of BOM and performance of scheduling calculations, just like in MRP. Determine whether this statement is true or false.

True False 5.

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List the dimensions that APO adds to the logistics chain.


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Answers 1.

Describe the principle of long-term planning. Answer: Long-term planning simulates various versions of the demand program using the operative planning master data.

2.

List the parameters used for long-term planning. Answer: • • • • • • • •

3.

The plants for which the simulation is to be carried out The planned independent requirements that are to be carried out Whether to carry out make-to-production and individual project planning for the materials assigned accordingly Whether sales orders are to be included in long-term planning The use of a fixed or operative area Whether a time fence is to be used Whether there are firm planned orders from operative planning to be used in long-term planning Whether there are firm purchase requisitions to be include in long-term planning

Data is written automatically when entered in MRP. Answer: False Data is not written in MRP unless it is saved.

4.

Simulative MRP is a tool that can analyze delays by expansion of BOM and performance of scheduling calculations, just like in MRP. Answer: True Simulative MRP is a tool that can analyze this situation and assist the planner in taking appropriate action. When you run simulative MRP, it expands an item’s bill of material and performs scheduling calculations, just like MRP.

5.

List the dimensions that APO adds to the logistics chain. Answer: APO enables integrated, global representation, planning, and monitoring of all processes in the in the logistics chain

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Unit 8 ASAP Overview Unit Overview mySAP Services provide everything a company needs to transition from conventional business processes to collaborative e-business in the networked economy. Critical decisions are made during your implementation process that require advanced tools and accelerators to implement your mySAP Solution quickly and on target.


List the four key components of the ValueSAP framework, which supports the customer life cycle Describe how business maps form a blueprint for an organization’s processes Describe how ASAP can be used to manage an SAP project implementation Create a plant and assign it to a company in the Implementation Guide Differentiate between ASAP and Global ASAP methodologies Explain how the Continuous Business Improvement tool assists in the execution of the actual operation of the implementation

Unit Contents mySAP Implementation ........................................................402 Exercise 30: Creating a New Plant ...........................................413 Exercise 31: Assigning a Plant to a Company Code .......................417

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Lesson: mySAP Implementation Lesson Overview This lesson introduces the ValueSAP framework, which outlines how SAP focuses its support to its customers as they proceed through their SAP product life cycle. The ValueSAP framework is broken into three phases: Discovery and Evaluation, Implementation and Continuous Business Improvement. The goal of SAP’s life cycle approach is a cyclical review and adaptation of company strategy, business processes, and supporting technology that reflects an ever-changing business environment.

Lesson Objectives After completing this lesson, you will be able to: • • • • • •

List the four key components of the ValueSAP framework, which supports the customer life cycle Describe how business maps form a blueprint for an organization’s processes Describe how ASAP can be used to manage an SAP project implementation Create a plant and assign it to a company in the Implementation Guide Differentiate between ASAP and Global ASAP methodologies Explain how the Continuous Business Improvement tool assists in the execution of the actual operation of the implementation

Business Example As the newly assigned SAP Project Manager for your company, you have been directed to complete an implementation as efficiently and cost effectively as possible, while ensuring the incorporation of best business practices into your organization’s processes.

ValueSAP While working with SAP, you discover the best mySAP.com solution for your business, a solution that is specific to your industry, tuned to best-in-class business practices, and delivers real value to your business now and in the future.

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Lesson: mySAP Implementation

Once you have discovered what you need, SAP can help you evaluate and map out the mix of mySAP.com software, technology, and services required for your business enterprise solution. The goal is to achieve a clear return on investment, lowest cost of ownership, and real value from your mySAP.com solution throughout its life.

Figure 203: ValueSAP Framework The ValueSAP framework contains a consistent set of tools, methodologies, content and programs that all work together in each phase of the life cycle to provide SAP’s current and future customers with the keys to unlock the potential of mySAP.com. Used to its full potential, the ValueSAP framework helps organizations use SAP enterprise applications to identify and adopt agile business practices and achieve the highest business value from their SAP solution. The ValueSAP framework supports the execution of the life cycle concept. Used correctly, the ValueSAP framework helps organizations establish an environment for performance measurement and continuous improvement of business processes.

Discovery and Evaluation SAP Solution Maps map out the business processes within an organization. They present a complete business solution for an industry in a process-oriented way. •

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Coverage information shows, for example, whether SAP or partners support the processes.


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Link-to-product lists give further information about particular products Links to relevant Collaborative Business Scenarios (CBS) are available.

Figure 204: Discovery and Evaluation The following SAP Solution Maps Edition 2001 are now available: • • • • • • • • • • • • • • • •

404

SAP Aerospace & Defense SAP Apparel & Footwear SAP Automotive SAP Banking SAP Chemicals SAP Consumer Products SAP Engineering & Construction SAP Healthcare SAP High Tech SAP Higher Education & Research SAP Insurance SAP Media SAP Mill Products SAP Mining SAP Oil & Gas SAP Pharmaceuticals


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• • • • • • • • • •

SAP Public Sector SAP Retail SAP Service Provider SAP Telecommunications SAP Utilities mySAPTechnology mySAP Corporate Functions mySAPMarketplaces mySAP Real Estate mySAP Services

Implementation SAP’s tried and tested methodologies, tools, and road maps can help you experience the benefits of a successful implementation quickly. How to start: •

•

•

•

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Define an implementation plan using the industry-specific metrics and KPIs to scope your implementation project and evaluate progress as the project proceeds. Employ total cost ownership modeling covering the evaluation of mySAP.com solutions through acquisition, operation, ongoing management and expansion. Roll key performance indicator (KPI) data into the implementation project, linking them to business processes to prioritize the implementation. KPIs also form the basis for solution review and ongoing evaluation of the implementation project. Tried and tested implementation methodologies and tools such as AcceleratedSAP, help deliver results on time and to budget.


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Figure 205: Implementation with ASAP

ASAP AcceleratedSAP (ASAP) is SAP’s rapid implementation solution specifically designed to streamline and standardize the implementation process to achieve mission critical business functionality as soon as possible. ASAP optimizes time, quality, and efficient use of resources for your implementation. While allowing you to exploit the value of SAP as quickly as possible, ASAP also lays the foundation for continuous improvement, and supports not only the entire life cycle but also the initial implementation. Even if you did not use ASAP for implementation, ASAP can still help you implement additional business processes in SAP or optimize existing ones. Also, the special ASAP Roadmap for Upgrades tells you exactly what to do and what to test, ensuring that you update your SAP system in the most efficient way. ASAP was released over three years ago, and has since been used in more than 1000 projects worldwide. More than 18,000 SAP or partner consultants have been trained in ASAP. In the spirit of TeamSAP, many of SAP’s implementation partners have either adopted ASAP as their standard methodology (AcceleratedSAP Partners) or have incorporated it into their own methodology (Powered by AcceleratedSAP Partners). Due to strong positive feedback from experienced consultants, and great success, AcceleratedSAP has been established as SAP standard implementation approach. AcceleratedSAP has reached such a high level of maturity and functional richness that it should be considered by every

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SAP customer. Whether you follow the entire roadmap or just use certain accelerators, you will save considerable time and improve quality and repeatability of your implementation activities. Most important, ASAP supports the entire team, both internal (customer) and external (consultants), as well as all aspects of a project implementation: project management, business process definition, organization change management, training, and technical areas.

Figure 206: ASAP Tools Elements of AcceleratedSAP AcceleratedSAP (ASAP), the process component of the TeamSAP initiative, is SAP’s implementation solution for efficient SAP projects. ASAP combines a proven methodology with powerful tools, services and quality reviews to optimize SAP implementations. The ASAP Roadmap is a methodology and project plan with detailed descriptions about what, why, and how certain activities are performed, and who performs them. The roadmap ensures that nothing is left out and that project management plans well in advance for the execution of activities like end-user training. On the technical side, the roadmap addresses areas like interfaces and data conversion and, of course, the usage of Ready-to-Run R/3, SAP’s preconfigured Basis system, to jump start your technical implementation. Wherever possible, ASAP provides examples, checklists or templates; ASAP calls these documents Accelerators. They are used in any type of implementation, even when you do not use all ASAP elements. The roadmap consists of five phases:

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Phase 1: Phase 2: Phase 3: Phase 4: Phase 5:

Project Preparation Business Blueprint Realization Final Preparation Go Live and Continuous Change

Tools include ASAP-specific tools to support project management, questionnaires to help define business process requirements, checklists, and many other tools to simplify your implementation (Report Navigator, technical guidebooks, etc.). Many accelerator files are provided in Microsoft Project or other MS Office products. ASAP provides the files, all you need is the software to use them. As of release 4.6, you can also access all configuration tools, such as the Implementation Guide, directly from the ASAP tool. Moreover, you can visualize the processes of the Reference Model using specific viewers that are free of charge within ASAP software.

Figure 207: Customizing Implementation Guidelines (IMG) Service and Training includes all consulting, education, and support activities. EarlyWatch, remote upgrade, quality reviews or Go Live checks are just part of the service palette that ensures total quality and allows you to actively tune your SAP System. These services help to standardize certain consulting tasks, which allows them to perform them as quickly as possible. Knowledge Management is also supported by ASAP. For instance, you can attach your own documents at every level within the roadmap and the Question & Answer Database. Moreover, ASAP provides you

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with many predefined documentation templates (e.g., Business Process Procedures) and supports role orientation throughout the life cycle, including role-oriented training and user authorizations.

Global ASAP Global AcceleratedSAP delivers a process-oriented, clear and concise program plan, project plan, and methodology – the Global AcceleratedSAP Roadmap – to provide step- by-step direction throughout your global, multi-site SAP implementation. The GlobalSAP Roadmap consists of four phases: • • • •

Phase 1: Phase 2: Phase 3: Phase 4:

Global Program Setup Global Business Blueprint Global Realization Global Maintenance and Support.

Within these four Phases, Phase 1: Global Program Setup is the most important and crucial phase. Here, you lay the foundation for your enterprise-wide implementation program.

Figure 208: Implementation Strategy Tools and accelerators leverage the powerful configuration capabilities of the SAP system, providing a seemingly limitless toolbox with tools for modeling, implementation, continuous improvement and documentation.

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Proven models and industry templates efficiently speed implementation with a specially designed Global Question & Answer Database and Template Process Master List. SAP Project Team Training: A three-level approach integrates training into the implementation process and lets you build an efficient, comprehensive training program for faster learning and better retention throughout your organization. SAP Support and Services Network can answer questions that arise and support major project activities, both during your implementation and once you’ve gone live. It is your in-flight assistance program, so you always have the security of an expert in the cockpit. Continuous Improvement with Global AcceleratedSAP Implementing and using your SAP System on a global basis gives you ongoing knowledge and expertise. This experience is a valuable asset that can be used to enhance your global business processes and implementation strategy. As you see what works best, you can update the Global Template System that is configured through Global AcceleratedSAP. You can also reevaluate your business processes at any time to continually optimize your enterprise and existing SAP systems, adding SAP components and New Dimension products. Better yet, the Global AcceleratedSAP methodology can be used on an ongoing basis to keep your system and business process optimized and always flying at peak performance. Companies continually reap extraordinary benefits using this continuous improvement approach.

Continuous Business Improvement (CBI) To help you operate all the stages of implementation through to the ongoing performance of your enterprise solution, mySAP.com and SAP partners present a powerful network of resources. Performance measurement and review, end-user training and knowledge management, together with a broad range of customer service and support all help to deliver a stable, high-value mySAP.com solution.

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Figure 209: Continuous Business Improvement Continuous Business Improvement works by: •

• •

•

Monitoring progress before, during, and after GoLive, using the solution review techniques built into mySAP.com Implementation Roadmaps. Maintaining productivity with mySAP.com services like Project Review, EarlyWatch, Remote Consulting. Building and maintaining skilled usage of your system with mySAP.com role-based training and knowledge management curriculum. The focus for this is provided by the key performance indicators (KPI) used to build the original business case. Using mySAP.com Business Warehouse and Strategic Enterprise Management products to build and support knowledge management at every level in your organization. Ensure ongoing monitoring of the performance of your mySAP.com solution against benchmarks & KPIs using techniques such as the managed SCOR card technique.

How can I continuously improve my business? Because business never stands still, ValueSAP can help you continue to adopt the best business practice and improve your enterprise system. A framework for performance tuning and business improvement helps you optimize your investment in mySAP.com ValueSAP Continuous Business Improvement services help you evaluate your current position, revisit your original business objectives, and define and exploit new business opportunities.

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What is the continuous business improvement process? A four-phased continuous business improvement assessment that:

412

1.

Identifies key areas for development and improvement

2.

Uses industry-specific benchmarks and KPIs, to identify and define best practices in key business processes

3.

Determines recommendations based on a thorough analysis of organization, people, business processes, information technology and business strategy

4.

Uses training, education, system design improvements, system optimization and recommendations for new functionality to drive business agility, competitiveness, and profitability


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Exercise 30: Creating a New Plant Exercise Objectives After completing this exercise, you will be able to: • Create a new plant in the SAP Implimentation Guide

Business Example Your North American division is growing and is planning on building a new plant. In order to account for all interaction from Financials, Sales and Production, you will need to create this new plant in your system.

Task You will create a new plant using the SAP Implementation guide, and create the associated address for the new plant. 1.

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Create the enterprise element Plant in the SAP Implementation Guide using the information provided. Field

Data

Plant

99##

Name

Group ## Plant

Street

East Main Steet

House Number

90210

Postal Code

12306

City

Albany

Country

US

Region

NY


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Solution 30: Creating a New Plant Task You will create a new plant using the SAP Implementation guide, and create the associated address for the new plant. 1.

Create the enterprise element Plant in the SAP Implementation Guide using the information provided. Field

Data

Plant

99##

Name

Group ## Plant

Street

East Main Steet

House Number

90210

Postal Code

12306

City

Albany


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Field

Data

Country

US

Region

NY

a)

Choose Tools → AcceleratedSAP → Customizing.

b)

Choose

c) d) e)

Choose SAP Reference IMG. Choose Enterprise Structure → Definition → Logistics General → Define, copy, delete, check plant. Choose Define plant.

f)

Choose

Choose.

g) h)

Choose Enter Plant:

New Entries.

i)

Choose

Edit Project .

99## Save.

Hint: A window will appear where you will maintain the address for the plant.

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j) k) l) m) n) o)

Enter Name: Group ## Enter Street/House number: East Main Street/90210 Enter Postal Code: 12306 Enter City: Albany Enter Country: US Enter Region: NY

p)

Choose

Copy Enter.

q)

Choose

Back.

r)

Choose

Back.

s)

Choose

Cancel.


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Exercise 31: Assigning a Plant to a Company Code Exercise Objectives After completing this exercise, you will be able to: • You will assign a plant to a company code in customizing.

Business Example Once a plant has been created in the system, you will not be able to use the plant in your day-to-day transactions until you associate this new plant to the corresponding company that is responsible for the plant from an accounting point of view.

Task You need to assign the new plant to a corresponding company code in customizing. 1.

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Assign the plant you created in Exercise 1 (99##) to Company Code: 3000


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Solution 31: Assigning a Plant to a Company Code Task You need to assign the new plant to a corresponding company code in customizing. 1.

418

Assign the plant you created in Exercise 1 (99##) to Company Code: 3000 a)

Choose Tools → AcceleratedSAP → Customizing.

b)

Choose

c) d)

Choose SAP Reference IMG. Chose Enterprise Structure → Assignment → Logistics General → Assign plant to company code.

e) f)

Choose Execute. Choose Company Code: 3000 IDES US INC

g) h)

Choose Choose Plant:

i)

Choose

Adopt.

j)

Choose

Save.

k)

Choose

Exit.

Edit Project .

Assign. 99## from the list of plants


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Lesson Summary You should now be able to: • List the four key components of the ValueSAP framework, which supports the customer life cycle • Describe how business maps form a blueprint for an organization’s processes • Describe how ASAP can be used to manage an SAP project implementation • Create a plant and assign it to a company in the Implementation Guide • Differentiate between ASAP and Global ASAP methodologies • Explain how the Continuous Business Improvement tool assists in the execution of the actual operation of the implementation

Related Information •

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For additional information, please visit our Web site at www.sap.com/asap.


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Unit Summary

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Unit Summary You should now be able to: • List the four key components of the ValueSAP framework, which supports the customer life cycle • Describe how business maps form a blueprint for an organization’s processes • Describe how ASAP can be used to manage an SAP project implementation • Create a plant and assign it to a company in the Implementation Guide • Differentiate between ASAP and Global ASAP methodologies • Explain how the Continuous Business Improvement tool assists in the execution of the actual operation of the implementation

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Test Your Knowledge


Which element is not part of ValueSAP? Choose the correct answer(s).

A B C D 2.

Operations and Continuous Business Improvement Implementation Re-Engineering Discovery and Evaluation

SAP Solution Maps are used to map out the business processes within an organization. Determine whether this statement is true or false.

True False 3.

ASAP is a methodology to implement an SAP product. Determine whether this statement is true or false.

True False 4.

Which of the following are tools of the ASAP methodology? Choose the correct answer(s).

A B C D E F

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Customer Message Wizard Implementation Assistant Question and Answer Database Online Service System B and C A and D


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Test Your Knowledge

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Answers 1.

Which element is not part of ValueSAP? Answer: C Re-engineering might be something you do during the implementation of an SAP product, but it is not a ValueSAP element.

2.

SAP Solution Maps are used to map out the business processes within an organization. Answer: True Solution maps allow a company to customize how business processes will be implemented within a company. The Solution Map Composer allows the business to create their own solution map for their business.

3.

ASAP is a methodology to implement an SAP product. Answer: True ASAP and Global ASAP are used as a roadmap to guide a business through an implementation.

4.

Which of the following are tools of the ASAP methodology? Answer: E Although the Online Service and Support system and the Customer Message Wizard are tools to help support a customer, they are not part of the ASAP tool set.

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Course Summary

Course Summary You should now be able to: • • • •

December 2001

Explain the manufacturing organization structures used by R/3 Describe the basic PP master data Perform MRP using various repetitive and make-to-order production strategies Interpret the result of the discrete manufacturing planning and execution processes


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Course Summary

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Glossary AcceleratedSAP (ASAP) Standard methodology for efficiently implementing and continually optimizing your SAP software. ASAP supports the implementation of the R/3 System and of mySAP.com Components and can also be used for upgrade projects. It provides a wide range of tools that helps you in all stages of your implementation project - from project planning to the continual improvement of your SAP System. The two key tools in ASAP are:The Implementation Assistant, which contains the ASAP Roadmap, and provides a structured framework for your implementation, optimization or upgrade project. The Question & Answer database (Q & A), which allows you to set your project scope and generate your Business Blueprint using the SAP Reference Structure as a basis. Accounting Data Accounting data includes production cost information SUCH as material and labor costs. APO Advanced Planner and Optimizer(APO): APO is a software solution that enables dynamic supply chain management. This solution provides applications for detailed planning, optimization, and scheduling, thus allowing the accurate and global monitoring and control of the supply chain even beyond enterprise boundaries. APO comprises the following modules: "Supply Chain Cockpit," "Demand Planning," "Supply Network Planning and Deployment," "Production Planning and Detailed Scheduling," and "Global Available-to-Promise", see also: Availability to promise. If SAP customers use APO in conjunction with the Business Information Warehouse, BW, they can optimize performance and costs throughout the entire supply chain. Advanced Planner and Optimizer(APO): APO is a software solution that enables dynamic supply chain management. This solution provides applications for detailed planning, optimization, and scheduling, thus allowing the accurate and global monitoring and control of the supply chain even beyond enterprise boundaries. APO comprises the following modules: "Supply Chain Cockpit," "Demand Planning," "Supply Network Planning and Deployment," "Production Planning and Detailed Scheduling," and "Global Available-to-Promise",see also: Availability to promise. If SAP

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Glossary

LO050

customers use APO in conjunction with the Business Information Warehouse, BW, they can optimize performance and costs throughout the entire supply chain. APO Core Interface APO Core Interface (APO-CIF) is an interface between the SAP Advanced Planner & Optimizer (APO) and a standard R/3 System. APO Core Interface supplies SAP APO with master and transaction data in real time. Only the object data that is relevant for the individual planning and optimization processes of SAP APO is transferred from the complex data records of the R/3 System. As of Release SAP APO 2.0A, the APO Core Interface is part of the R/3 Plug-in. Availability Check This procedure makes sure that there are enough components available for the planned/production orders in production planning and production control. Available Capacity Output or ability to execute of a capacity within a specified period. The available capacity is specified by the following values: work start and finish times, duration of breaks, and rate of capacity utilization in percent number of individual capacities within one defined capacity. Backflushing Backflushing is the deduction from inventory of component parts based on the production count of assemblies produced. Method for issuing (reducing on hand quantities) materials to a manufacturing order. In backflushing the material is issued automatically when production is posted against an operation, the backflushing program will use the quantity completed to calculate through the bill of material the quantities of the components used and reduce on hand balances by this amount. There are usually options during the backflush process to report scrap. In operations using backflushing it is advisable to set up specific machine locations and have materials transferred from storage locations to machine locations when they are physically picked for production, the backflush operation will then issue the material from the machine locations. Backward Consumption In backward consumption, the customer requirement consumes the planned independent requirement that lies closest to it in the past. If the quantity cannot be completely covered by the planned independent requirement, then the remainder is assigned to the next one back. This continues until the entire quantity is consumed, or the backward consumption period is reached. Backward\Forward Consumption In backward/forward consumption, backward consumption logic is used first. If the quantity cannot be consumed, then forward consumption logic is used.

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LO050

Glossary

Basic Data Description and specification of activities and measurement units, default values for operations, assignments to cost centers or labor resources, standard values. BOM Bill of Material(BOM): A complete, formally structured list of the components that make up a product or assembly. The list contains the object number of each component, together with the quantity and unit of measure. The components are known as BOM items. You can create the following BOM categories in the R/3 System: Material BOM, Document structure, Equipment BOM, Functional location BOM, and Sales order BOM. Bills of Management(BOM): A component used to store material lists or product structures using material numbers and document numbers as a reference to the object that they describe. BOM Category Classification of bills of material enabling you to represent different objects (such as materials or documents). Specific data is: Specific elements maintained for the bills of material for the various objects, for example: material bill of material (linked to a material master), materials, documents, and texts. BOM Effectivity Area in which a BOM is valid, or effective. An area of validity and an effectivity period are defined. When a BOM is created, the area of validity is defined using the plant. The area of validity can be extended by allocating the same BOM to an object in different plants. The effectivity period comprises a time period for which the BOM is valid, or effective. This period is limited by the valid-from date and the valid-to date. BOM Explosion Function for determining all the components of a bill of material and listing them. You can explode a BOM to show the structure of the product or to show the total quantity of each component. For multiple BOMs, you can define a procedure for automatically determining the correct alternative BOM for a given area of the company (BOM application). BOM Header The part of a BOM containing data which is valid for the whole BOM. Examples: object number/plant/usage, texts, quantity data, effectivity data, general data, and administrative data.

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Glossary

LO050

BOM Item Part of a bill of material, for which information about the quantity and unit of measure are stored. BOM items are separated into various types and special item data is managed, according to the object reference (for instance, material or document) and other criteria (for instance, inventory management). BOM Usage The BOM usage allows you to maintain BOMs (for example, for material LAMP) for specific sections of your company. You can maintain a separate BOM for each section in your company (for example, production), so that each section only processes the items relevant to that section. In customizing functions, you can define which item statuses can be used in which BOM usage. For example, all items in BOMs with a certain usage are relevant to production. The usage is an important selection criterion in the BOM application, which controls automatic explosion of BOMs. Capacity Check Automatic check carried out during stock placements to determine whether the specified destination bin can hold the incoming material. In the Warehouse Management system, there are six types of capacity checks. These checks are based on: weight, palletization, definition of maximum quantity per storage bin in the material master, capacity usage check based on material, capacity usage check based on storage unit type (SUT), capacity usage check based on the sum of the material and the storage unit (SU). Capacity Data Available capacities, number of machines and workers, length of shift(s), daily working time, labor or machine time efficiency, calculation formula for capacity, etc. You can assign different capacities to one work center, including different machine capacities and labor capacities with different skills. Capacity Leveling Leveling of over- and underloads at work centers. Capacity Planning Capacity planning is an instrument for calculating available capacities, capacity available and required as well as in capacity leveling. Capacity planning supports: long-term rough-cut planning, medium-term planning, and short-term detailed planning. Capacity Planning Table Layout of the run schedule quantities in repetitive manufacturing and the production plan in sales and operations planning.

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December 2001

LO050

Glossary

Capacity Requirements Specifies how much capacity output is required for individual orders at a specific time. Output is subdivided into capacity categories. Capacity categories are assigned to work centers. Capacity requirements can be caused by: Work orders (for example, production or maintenance orders) and Planned orders. Client In commercial, organizational and technical terms, a self-contained unit in an R/3 System with separate master records and its own set of tables. Company Code Legal, independent accounting unit; the central organizational element of Financial Accounting. Consumption Quantity normally updated by the system when a material is withdrawn from the warehouse/stores and indicates how much of that material has been used or consumed in a given past period. Consumption Based Planning Type of planning that is based on current stock levels and past sales quantities. Control Cycle Master data used to control replenishment for a certain material. The control cycle determines the methods and quantities required for replenishment from the supply source to the demand source. The following are determined in the control cycle: the replenishment strategy with which the material is to be procured, the supply source, from which the material is to be delivered, the supply area, i.e. the demand source at which the material is required. Cost Center Organizational unit within a controlling area that represents a defined location of cost incurrence. The definition can be based on: functional requirements, allocation criteria, physical location, and responsibility for costs. Cost Object Controlling Area within cost accounting that assigns costs incurred in a company to the activity units of the company. This information is used as a basis for: comparing actual costs against planned costs, target/actual comparisons, and valuating inventories of semi-finished products and finished products. Cost Object Controlling also supplies data to other components in the R/3 System, such as: Actual Costing/Material, Ledger, Financial Accounting, Profit Center Accounting, and Profitability Analysis.

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Glossary

LO050

Costing Data Cost center number, activity types, formula for cost calculation, validity period, etc. Customer Master Data Collective term for all customer master records. The customer master contains the basic data for all customers with which a company conducts business. Demand Management Planning of requirement quantities and requirement dates for finished products and important assemblies, and definition of the strategy for planning and producing or procuring a particular finished product. The result of demand management is the demand program. Demand management can either be done manually or based on previous planning results (sales planning, SOP, and forecast). Demand Planning (DP): Application component in the Advanced Planner and Optimizer (APO) that allows you to forecast market demand for your company’s products and produce a demand plan. APO Demand Planning has a data mart in which you store and maintain the information necessary for the demand planning process in your company. Using this information along with user-defined planning layouts and interactive planning books, you can integrate people from different departments into the forecasting process. The APO DP library of statistical forecasting and advanced macro techniques allows you to create forecasts based on demand history as well as any number of causal factors, and use a consensus-based approach to consolidate the results. Marketing intelligence and management adjustments can be added by using forecast overrides and promotions. The seamless integration with APO Supply Network Planning supports an efficient S&OP process. Division An organizational unit based on responsibility for sales or profits from saleable materials or services. ERP Enterprise Resource Planning(ERP): An Enterprise Resource Planning system is a packaged business software system that allows a company to automate and integrate the majority of its business processes, to share common data and practices across the entire enterprise, and to produce and access information in a real-time environment. External Procurement Procurement of raw materials, operating supplies (MRO items), trading goods/merchandise or services from an external supplier for the organizational units within a firm that need such items.

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December 2001

LO050

Glossary

Forecast Estimation of the future values in a time series. In the SAP System, the forecast can be carried out using a number of different procedures, such as first-order and second-order exponential smoothing or simple average models. Forward Consumption In forward consumption, the customer requirement consumes the planned independent requirement that lies closest to it in the future. If the quantity cannot be completely covered by the planned independent requirement, then the remainder is assigned to the next one forward. This continues until the entire quantity is consumed, or the forward consumption period is reached. Forward\Backward Consumption In forward/backward consumption, forward consumption logic is used first. If the quantity cannot be consumed, then backward consumption logic is used. Goods Receipt Term from the field of inventory management denoting a physical inward movement of goods or materials. The SAP System differentiates between the following kinds of goods receipt: goods receipt with reference to a purchase order, goods receipt with reference to a production order, and other goods receipts (without reference). Gross Requirement Planning Special deterministic procedure within material requirements planning. In gross requirements planning, no comparison is made between the warehouse stock and the (gross) requirements. This means that these requirements will always be covered by order proposals. GUI Graphical User Interface(GUI): refers to the display of software on a screen using graphics, symbols and icons rather than text alone. An example of a GUI is Microsof´ts "windows" format. Within the EnjoySAP initiative SAP has developed a holistic approach to designing user interfaces that are visual, interactive and personal. This initiative includes a user friendly GUI. Web browsers have now emerged as the standard GUI throughout the Internet. Browsers are a key enabler of mySAP.com, and SAP will make all SAP business functionality available in browser applications. Graphical User Interface(GUI): refers to the display of software on a screen using graphics, symbols and icons rather than text alone. An example of a GUI is Microsofts "windows" format. Within the EnjoySAP initiative SAP has developed a holistic approach to designing user interfaces that are visual, interactive and personal. This initiative includes a user friendly GUI. Web browsers have now

December 2001


431

Glossary

LO050

emerged as the standard GUI throughout the Internet. Browsers are a key enabler of mySAP.com, and SAP will make all SAP business functionality available in browser applications. IMG Tool for configuring the SAP System to meet customer requirements. The Implementation Guide (IMG) explains all the steps in the implementation process, tells you the SAP standard (factory) Customizing settings and describes the system configuration activities. The hierarchical structure of the IMG is based on the application component hierarchy and lists all the documentation which is relevant for implementing the SAP System. The main component of the Implementation Guide is the IMG activities which go to Customizing, where the relevant system settings are made. You can also document projects in the IMG. The SAP Reference IMG contains all IMG activities, sorted by application component and into General settings and Enterprise structure. The Enterprise IMG is a subset of the SAP Reference IMG containing only the IMG activities required for the application component to be implemented. (Note: The Enterprise IMG no longer exists after R/3 Release 4.6A.) The Project IMG is a subset of the Enterprise IMG (until Release 4.5B) or the SAP Reference IMG (from Release 4.6A) containing the IMG activities required for the application component to be implemented in a specified Customizing project. Project views can be based on a Project IMG and specified attributes, for use in Release Customizing (Delta Customizing or Upgrade Customizing). KANBAN Procedure for controlling production and material flow based on a chain of operations in production and procurement. The replenishment or the production of a material is not triggered until a certain production level actually requires the material. The signal for replenishment is issued by a card (KANBAN) that is sent by a consumer to the supplier. KANBAN Card Card used for message transmission in a KANBAN control cycle. The KANBAN card is used to transfer consumption information and the delivery of a material in the KANBAN control cycle. KANBAN Control Cycle Master data used to control replenishment via KANBAN for a certain material. The control cycle determines the methods and quantities required for replenishment from the supply source to the demand source. The following are determined in the control cycle: the number of KANBANs and the quantity of each KANBAN, the replenishment strategy with which the material is to be procured, the supply source from which the material is to be delivered, the supply area, i.e. the demand source at which the material is required.

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LO050

Glossary

Knowledge Management Area in which an enterprise consciously and comprehensively gathers, organizes, shares, and analyzes its knowledge to further its aims. Some aspects of knowledge management such as data mining and pushing information to users are relatively new. With its SAP Business Information Warehouse and SAP Knowledge Warehouse (former Info DB), SAP is delivering solutions for this increasingly important business process. Lead Time Scheduling Lead time scheduling calculates the exact production dates and creates capacity requirements. Lead time scheduling using the routing and Lead time scheduling is normally carried out using the routing. In this case, it calculates the start and finish dates and times of the individual operations. Lead time scheduling using the material master within MRP, lead time scheduling can be carried out using the times specified in, the material master. In this case, it calculates the production start and finish dates, but does not calculate any capacity requirements. LiveCache Tool for processing large volumes of data in main memory, enabling data sharing among several applications. LiveCache: has very large main memory, behaves like a relation and object database, stores data in optimized structures, allows concurrent data access, and leverages multi-processor and multi-computer technology (i.e. parallel and distributed). Long-Term Planning Simulation of the future stock and requirements situation. Lot-Sizing Procedure Procedure in material requirements planning that is used to calculate the order and production quantities (lot sizes). The lot-sizing procedures are divided into three groups: static lot-sizing procedures, period lot-sizing procedures, and optimum lot-sizing procedures. Make-to-Order Production Type of production in which a product is manufactured specially for a particular customer. Includes both sales-order-related production and engineer-to-order. Make-to-Stock The assembly of a product for which distributor/resellers use manufacturer/supplier’s stock as components of the assembled product. Assembly is not triggered by a sales order, but rather begins in anticipation of orders for the assembled product. Master Data Created centrally and available to all applications and all authorized users. Master data also has an organizational aspect as its information is organized into views that are assigned to organizational elements.

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Glossary

LO050

Data that remains the same over a long period of time, master data contains information that is needed often and in the same form. Examples: the master data of a cost center contains the name of the cost center, the person responsible for the cost center, the corresponding hierarchy area, and so on. The master data of a vendor contains the name, address, and bank information for the vendor. The master data of a user in the SAP System contains the user’s authorizations in the system, the name of their default printer, their start transaction, and other information. Master Data Area The area where Master Data on the System is held. Master Production Scheduling (MPS) (MPS): In master production scheduling, those parts or products which greatly influence company profits or which take up critical resources are planned with special attention. Master schedule items are marked with the MRP procedure for master production scheduling. Material Availability Check Automatic check that is carried out to find out whether there are enough materials to cover a proposed withdrawal from stock. Material Cost Consist of direct material costs and material overhead costs. They are part of production costs. Material Master Total of all material master records. A company manages the data on all its materials in the material master. Material Master Record Data record containing all the basic information required to manage a material. This data is sorted according to various criteria. A material master record contains data of a descriptive nature (such as size, dimension and weight) and data with a control function (such as material type and industry sector). In addition to this data, which can be directly maintained by the user, it also contains data that is automatically updated by the system (such as stock levels). Material Staging In general, material staging refers to the temporary storage of materials between warehouse operations while awaiting further processing. When referring to the WM system interface to PP, material staging applies to the replenishment or supply of raw or semi-finished materials to a production supply area to be used in the manufacture of a finished or semi-finished product.

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Glossary

Material Tree Overview tree in the MRP list and the stock/requirements list. It consists of a number of materials. You can switch the tree between the: Worklist tree (all the materials that you have processed in the respective transaction call, or all the materials that you selected in the collective display), Order tree (all the assemblies or components for a selected MRP element as defined in the order report), Product group tree (all the materials and sub-product groups for a product group; only when you access the list using the product group). In the material tree, the user can double-click a material to go directly to the corresponding MRP or stock/requirements list. Material Type Groups together materials with the same basic attributes, for example, raw materials, semi-finished products, or finished products. When creating a material master record, you must assign the material to a material type. The material type you choose determines: whether the material is intended for a specific purpose, for example, as a configurable material or process material, whether the material number can be assigned internally or externally, the number range from which the material number is drawn, which screens appear and in what sequence, which user department data you may enter, what procurement type the material has; that is, whether it is manufactured in-house or procured externally, or both together with the plant, the material type determines the material’s inventory management requirement, that is: whether changes in quantity are updated in the material master record, whether changes in value are also updated in the stock accounts in financial accounting. Missing Parts Quantity by which a requirement exceeds the available quantity. MPS In master production scheduling(MPS), those parts or products which greatly influence company profits or which take up critical resources are planned with special attention. Master schedule items are marked with the MRP procedure for master production scheduling. MRP Material Requirements Planning (MRP): Generic term for procedures in materials planning that take into account and plan every future requirement during the creation of procurement proposals (independent requirements, dependent requirements, and so on). Material Requirements Planning(MRP): Generic term for procedures in requirements planning which take into account and plan every future requirement during the creation of order proposals (independent requirements, dependent requirements, and so on).

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Glossary

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MRP List Document providing an overview of the results of the material requirements planning (MRP) run. Multi-Level BOM BOM reporting function which lists all assemblies and other components in a product. Assemblies within the BOM are immediately followed by the items they contain. These items are set in from the left margin and are given an ascending level number to show where they occur in the structure. mySAP New SAP solution to integrate all relevant business processes on the Internet. mySAP.com integrates business processes in SAP and non-SAP systems seamlessly, and provides a complete business environment for electronic commerce. mySAP.com comprises four areas: mySAP.com Marketplace, mySAP.com Workplace, mySAP.com Business Scenarios, and Application Hosting. mySAP.com Marketplace An Internet community run by SAP at www.mySAP.com. This site provides a medium where enterprises of all sizes and from all sectors of industry can do business. The site is accessed from a Web browser. mySAP.com Marketplace is also available as a separate product for customers who wish to set up their own marketplace. Net Requirements Calculation Check carried out by the system to determine whether the requirements are covered by available warehouse stock and planned receipts from the purchasing department or from production. If the forecast requirements are not covered, then the system will generate a procurement proposal. OEM Original Equipment Manufacturer(OEM): A manufacturer that sells equipment to a reseller for re-branding or repackaging. However, the term has evolved to refer to the reseller itself. Thus, an OEM either adds value to the product before reselling it, private labels the merchandise under its own name or bundles it with its own products. OEM generally refers to most everything that does not have to do with direct sales to the end user via normal wholesale/retail distribution. Operation Lead Time The lead time of an operation is made up of its queue time, setup time, processing time, tear down time and wait time. Organizational Elements A company’s enterprise structure is mapped to the SAP applications using organizational elements.

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Glossary

Organizational Level Hierarchical level at which certain data in a material master record is created. Examples of organizational levels are client, plant, and storage location. Personnel planning and development (PD) Personnel planning and development (PD): is about anticipating future personnel events. Such planning must consider short-, medium- and long-term goals, company policy, and the costs involved. It must ensure that the company has the right number of employees with the required skills in the right place at the right time. Planned Independent Requirements Planned requirement quantity for a finished product over a given period of time. It is not based on sales orders. Planned Order Request for a plant to trigger the procurement of a product for a certain quantity for a specific date. Planning Material A planning material is required in the planning strategy planning with planning material. Non-variable parts for similar finished products can be planned using this strategy. The planning material is then assigned to the material master record of the finished products to be planned. Planned independent requirements are created for the planning material. Incoming sales orders consume the planned independent requirements of the planning material. Planning Table The planning table in repetitive manufacturing assists the planner to plan production quantities by lines. The planning table makes it possible to check production quantities at a glance and to determine the actual capacity load utilization of production lines and check the availability situation of materials. Planning Time Fence Defined period where no automatic changes are carried out to the master plan during material requirements planning. Within the planning time fence no new planned orders are created automatically and already existing planned orders are not changed automatically by the system. Plant A Plant can manufacture product, distribute product, or provide a service; the central organizational unit of Production Planning. Plant Maintenance (PM) Measures taken to maintain operational systems in working order (for example machines, production installations). According to DIN 31051, maintenance comprises the following activities; Inspection: All measures that determine the actual condition of an operational

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Glossary

LO050

system, Maintenance: All measures that maintain the target condition of an operational system, and Repair: All measures that restore the target condition of an operational system. Process Chain Graphical representation of a business process in the R/3 Reference Model. The interdependence of R/3 System functions in time and logic is described in process chains with reference to events (an event in the R/3 System is a status that has business relevance). Process chains help to make the R/3 System transparent. Process Manufacturing Process manufacturing refers to the processing of gases, granular materials, or liquids. The manufacturing processes involved can be continuous or discontinuous. Product Costing Tool for planning costs and establishing prices. Product costing calculates the cost of goods manufactured and the cost of goods sold per product unit. Products are costed automatically using the BOMs and routings in Production Planning. Product Group A product group groups together products (materials). The criteria by which this grouping takes place can be defined individually by each user. For example, the products may be similar to each other in some way, or they may be finished products that were produced on the same machine. A product group can be multi-level or single-level. A product group is multi-level if its members are other product groups. However, the lowest product group in the hierarchy must contain materials. Production Data Production data includes the operationals and PRTs required and any confirmed quantities and dates from actual production. Production Order Production order used for discrete manufacturing. Production orders can only be processed and confirmed in the R/3 system. Planned orders that were created in APO are converted to production orders in the R/3 system. The current production order data relevant for planning is transferred from the R/3 system to APO. Production Plan (PP) Production plans are created in the planning table of Sales & Operations Planning (SOP). Production targets can be set for materials, product groups, and/or characteristic values from an information structure, and derived from sales targets or using self-defined or standard macros. It is possible to set production quotas at one level and disaggregate them to the next level down (for example, product group → material), or vice versa; that is, to set production quotas at one level and aggregate them to the next level up (for example,

438


December 2001

LO050

Glossary

material → product group). The planning horizon is divided up into a number of periods (either days, weeks, months, or posting periods); thus, planning figures are viewed and stored in the periods to which they relate. The production quantities planned in Sales & Operations Planning can be passed on to Demand Management. Production Planning (PP) - Capacity Planning functionality comes from the Production Planning module and is used by both plant maintenance and customer service. "(PP) - Capacity Planning functionality comes from the Production Planning module and is used by both plant maintenance and customer service." Production Resource/Tool (PRT) Production Resource/Tool (PRT): Moveable operating resource used in production or plant maintenance. Project Systems (PS) Project Systems (PS) Purchasing Organization Organizational unit within Logistics, subdividing an enterprise according to the requirements of Purchasing. A purchasing organization procures materials and services, negotiates conditions of purchase with vendors, and bears responsibility for such transactions. The form of procurement is specified through the assignment of purchasing organizations to company codes and plants. Possible forms are as follows: Enterprise-wide: One purchasing organization procures for all the company codes of a certain client (that is, for all the individual companies of a certain corporate group), Company-specific: One purchasing organization procures for just one company code, Plant-specific: One purchasing organization procures for one plant. Mixed forms are possible, which are replicated in the system with the aid of reference purchasing organizations. A purchasing organization may access and use the more favorable conditions and centrally agreed contracts of the reference purchasing organization assigned to it. Quality Management (QM) Quality Management (QM): Overall term for quality-related activities and objectives. Activities for quality planning, quality inspection, quality control and QM representation. Real-Time Refers to the immediate access to a given piece of data by multiple users throughout the different departments or divisions of a company.

December 2001


439

Glossary

LO050

Repetitive Manufacturing A component in the SAP System for the planning and control of repetitive manufacturing and flow manufacturing. It enables the period-dependent and quantity-dependent planning of production lines and reduces the work involved in production control and simplifies backflushing (confirmation, goods receipt posting). Replenishment Element All elements in the system that trigger material replenishment for production. Planned orders, purchase orders, run schedule quantities, reservations, among others, can be replenishment elements. Routing Description of the production process used to manufacture plant materials or provide services in the production industry. Routing type that defines one or more sequences of operations for the production of a material. To reduce the effort of entering data in a routing, you can reference or copy reference operation sets as many times as required and in any sequence. Sales & Operations Planning (SOP) A flexible forecasting and planning tool with which sales, production, and other supply chain targets can be set on the basis of historical, existing, and/or estimated future data. Resource planning can also be carried out to determine the amounts of the work center capacities and other resources required to meet these targets. SOP supports both the high-level planning of complex planning hierarchies and the detailed planning of finished products. Thus, either a top-down or a bottom-up approach to planning is possible. The system can be configured either such that target values set at one organizational level are distributed (aggregated and disaggregated) automatically and consistently to all the other organizational levels in the hierarchy (for example, to all distribution channels, materials, and plants in a particular sales organization), or such that each level is planned separately. Sales & Operations Planning is made up of two elements: standard SOP and flexible planning. Standard SOP comes largely preconfigured with the system. Flexible planning offers multiple options for customized configuration. Planning in standard SOP is based on product group hierarchies and is always carried out level by level. Flexible planning is carried out on hierarchies containing any chosen organizational levels (for example, sales organization, distribution channel, material, and plant). Moreover, in flexible planning the content and layout of planning screens can be defined by the users. The component can be run in a distributed environment with the aid of Application Link Enabling (ALE).

440


December 2001

LO050

Glossary

Sales and Operations Planning Sales quantities and the resulting production quantities for a material/plant (SKU) or product group in a specific planning horizon. The difference between the production quantity and the sales quantity in any month is the closing stock for that month. Sales Organization Organizational unit within Logistics which structures the company according to its sale’s requirements. A sales organization is responsible for selling materials and services. SAP Europe’s biggest software company from Walldorf/Germany; market leader in enterprise-software and important player in Internet applications. Europeés biggest software company from Walldorf/Germany; market leader in enterprise-software and important player in Internet applications. SAP Library Standard function in the menu Help for displaying R/3 System online documentation. SAPNet SAPNet is the intranet portal of SAP that provides a role-based and personal interface, and uses a Web browser as GUI . SAPNet is also available to SAP partners and customers who have a role-based view on SAPNet. Employees can personalize SAPNet to their individual needs and can use SAPNet as personal inbox and central access point to Employee Self Service and procurement. Scheduling Data Scheduling data includes the order start and finish dates as well as operation dates and times. Scheduling Date Interoperation times, execution time, move time matrix, formulas for lead time scheduling, for interoperation times (queue, wait, move) and execution times (setup, processing, tear down). Single-Level BOM Describes one or more assemblies by means of component quantities. SIS Sales Information System (SIS) Solution Maps Map of a complex, tailored industry solution system that gives a company an overview of its industry-specific business processes. Solution maps were drawn up in a cooperation between industry-specific user groups, partners, and SAP development teams in an effort to define the requirements of individual sectors of industry.

December 2001


441

Glossary

LO050

SOP Sales and Operations Planning (SOP): Generates sales plans and/or production plans using forecast values and requirements from the sales information system and costing/profitability analysis as inputs for determining requirements. Requirements are reflected in the system as planned quantities of a product over a given period of time and are not necessarily created on the basis of a customer requirement. Stock List List showing the total quantity and value of the stock of one or more materials at plant and storage location levels. For materials managed in batches, the stock of each batch can also be displayed. In the case of consignment materials, the stock figure per vendor can be shown. Stock Transfer The removal of materials from storage at one location and their transfer to and placement into storage at another. Stock transfers can occur either within a single plant or between two different plants. The removal of stock from storage at the first location and its placement into storage at the other can be posted in the system either in one step (one-step procedure) or in two (two-step procedure). Storage Location An organizational unit that allows the differentiation of material stocks within a plant. The storage location is hierarchically situated between the plant and the warehouse number. R/3 portrays the commercial aspect of warehousing using storage locations. Storage locations are allocated to plants. Through this allocation R/3 links stores indirectly to a specific company. In R/3, inventory is always allocated to a storage location. Warehouses represent complex storage and material handling systems. "R/3 portrays the commercial aspect of warehousing using storage locations. Storage locations are allocated to plants. Through this allocation R/3 links stores indirectly to a specific company. In R/3, inventory is always allocated to a storage location. Warehouses represent complex storage and material handling systems. " Storage Types Organizational and technical areas divided by the Warehouse Management System that differ with regard to their storage method, organization and function. Examples are high-rack areas, container areas, goods receipt areas and picking areas. They can be divided into sections. Within the organizational hierarchy of the R/3 System, warehouses can be linked to multiple plants associated with different companies. R/3 makes it possible to store in one central warehouse goods belonging to different legal entities and whose values are posted to different charts of accounts.

442


December 2001

LO050

Glossary

Supply Area Area in the shop floor where material is provided which can be directly used for production. The supply area is used in KANBAN production control and for material staging using Warehouse Management (WM), for example. Time Fence Lines drawn vertically through a given chart according to a chosen period pattern. The time fence means that time is indicated more clearly within the diagram section of the planning table. Transaction Data Transaction-specific data which is short-lived and assigned to certain master data. Individual posting documents are called transaction data. For example, transaction data relating to sales development can be assigned to a vendor’s master data. The total sales of a vendor consist of the data of the individual business transactions, the transaction data. Transactions Application programs that execute business processes in the SAP System. Examples are create sales order, change customer master or display a sales orders’ list report. Transfer Posting Generic term for stock postings covering both physical transfers of stock and book transfers only (that is, changes affecting stock that do not involve physical movement - the actual material remains where it is). Examples of transfer postings involving physical movement: Stock transfer between two storage locations within a plant, Stock transfer between two plants, and Transfer of material to customer consignment stock. Examples of transfer postings without physical movement: Release of material from stock in quality inspection, Transfer of vendor consignment stock to company’s own stock, Batch splitting, and Transfer posting material to material. URL Uniform Resource Locator (URL): Address of a resource on the Web - typically a hypertext but, in the future, also SAP business functionality. The URL includes a domain name identifying the Web site and a hierarchical description of the location of the resource on the Web server. ValueSAP Value SAP integrates methodologies, tools and knowledge (f.ex. Accelerated SAP, Team SAP) into a consistent framework to ensure that SAP solutions create value for customers at the earliest possible moment.

December 2001


443

Glossary

LO050

Variant BOM Variant Bill of Management(variant BOM): Combination of a number of bills of material that enables you to describe a product, or several products that have a large proportion of identical parts. The variant BOM describes each object (for example, the product lamp) completely. Each variant BOM contains all the components. This type of BOM is not configurable. Variant Configuration Description of complex products that are manufactured in many variants (for example, cars). All variants are defined as one variant product. The variant product has a super BOM, containing all the components that can be used the product, and a super task list, containing all the operations that can be used to manufacture the product. By assigning the variant product to a class, you assign characteristics to the variant product. You use these characteristics to describe an individual variant. Object dependencies ensure that the correct components are selected from the super BOM and the correct operations are selected from the super task list. Vendor Master Data Collective term for all vendor master records. The vendor master contains the data of all vendors that a company conducts business with. Work Center In organizational unit that defines where and when an operation should be carried out. The work center has a particular available capacity. The activities performed at or by the work center are valuated by charge rates, which are determined by cost centers and activity types. Work centers can be: machines, people, production lines, and groups of craftsmen. Work Center(PT) An organizational unit that represents a suitably equipped, physical location where work can be performed.

444


December 2001

Index A AcceleratedSAP (ASAP), 406 ASAP Roadmap, 406 Global ASAP, 409 knowledge management, 409 partners, 406 Question & Answer Database, 408 Roadmap, 407 TeamSAP, 406 tools, 408 Advanced Planner and Optimizer (APO), 394 APO Core Interface (CIF), 395 LiveCache, 395 application help, 9 ASAP Roadmap, 406–407 phases, 407 assembly processing, 271, 277 availability check, 278 changes, 279 process flow, 278

B backflushing, 253, 327 Logistics Information System (LIS), 327 backward consumption, 143 backward/forward consumption, 144 basic-date scheduling, 227 backward scheduling, 227

December 2001

forward scheduling, 228 bill of material (BOM), 49–55, 125 area of effectivity, 55 backflushing, 319, 327 category, 52 effectivity period, 55 individual/collective requirements indicator, 274 item categories, 54 long-term planning, 378 multi-level, 51 production planning, 50 repetitive manufacturing, 319 routing, 74 single-level, 50 stocking level, 301 structure, 53 super BOM, 291 usage, 53

C capacity evaluation, 245 capacity leveling, 249 operation dispatching, 251 capacity planning, 244 capacity evaluation, 245 capacity leveling, 249 capacity requirements, 245, 248 graphical planning table, 250 productive operating time, 247


445

Index

LO050

tabular planning table, 249 capacity requirements, 211, 245, 248 Collaborative Business Scenarios (CBS), 404 collective order conversion, 214 company code, 33 configurable product, 290 master data, 290 consumption, 95 consumption logic, 142 backward consumption, 143 backward/forward consumption, 144 consumption period, 143 demand management, 143 forward consumption, 143 forward/backward consumption, 144 modes, 142 consumption-based planning, 123 forecast-based planning, 123 reorder point planning, 123 continuous business improvement (CBI), 410 phases, 412 control cycle, 354 cost object controlling, 163

D demand management, 113 consumption logic, 143 discrete production, 324 dispatch list, 325

E execution time operation, 230

446


F F1 help, 10 F4 help, 10 favorites, 4 feedback, 9 firming period, 193 float time, 230 forecast quantity, 95 forecast-based planning, 123 forward consumption, 143 forward/backward consumption, 144

G Global ASAP, 409 Global Template System, 410 implementation, 409 Roadmap, 409 SAP Support and Services Network, 410 Global Template System, 410 glossary, 9 goods issue, 160 goods movement, 159 goods receipt, 159, 162 graphical planning table, 250

H help, 9 application help, 9 F1 help, 10 F4 help, 10 feedback, 9 glossary, 9 release notes, 9 SAP Library, 9 SAPNet, 9 settings, 9

I individual/collective requirements indicator, 274

December 2001

LO050

Index

settings, 274 stocking level, 302 interactive MPS, 195 interoperation time, 230

K KANBAN, 349 advantages, 352 board, 359 business management environment, 352 containers, 349 control cycle, 354 empty status, 358 excluding materials from MRP, 356 full status, 358 in transit status, 358 KANBAN card, 350 prerequisites, 352 pull principle, 351 replenishment strategy, 355 status, 357 supply area, 354 wait status, 358 KANBAN board, 359 KANBAN card, 350 knowledge management, 409

L lead-time scheduling, 227–228 backward scheduling, 229 capacity requirements, 245 forward scheduling, 229 operation lead time, 229 line hierarchy, 320 LiveCache, 395 Logistics Information System (LIS), 327 logon process, 3 long-term planning, 377

December 2001

bill of material (BOM), 378 capacity check, 385 capacity requirements, 385 independent planning area, 377 planned independent requirements, 386 planning scenario, 380 process flow, 379 Purchasing Information System, 386 routing, 378 simulative planning area, 377 work center, 378 lot sizing, 210

M make-to-order production, 270 assembly processing, 271, 277 planned order, 272 planning without final assembly, 299 make-to-stock production, 93, 188 cost object controlling, 163 net requirements planning, 188 planning with final assembly, 93 process, 188 master data, 37 backflushing, 253 inventory management, 38 planning without final assembly, 301 production order, 38 production planning, 38 purchasing, 38 master production scheduling (MPS), 192


447

Index

LO050

firming period, 193 interactive MPS, 195 lot sizing, 210 material requirements planning (MRP), 192 planning time fence, 193 material availability, 238 material availability check, 238 missing parts list, 239 material availability check, 238 material master accounting view, 42 material master (MM) data structure, 40 master data, 38 material type, 39 MRP view, 41 views, 39 work scheduling view, 42 material requirements planning (MRP), 123–124 availability check, 135 bill of material (BOM), 124–125 consumption logic, 142 excluding materials, 356 individual/collective requirements indicator, 274, 302 lead-time scheduling, 228 lot sizing, 210 master production scheduling (MPS), 192 MRP list, 132, 211 net change planning, 130 net requirements calculation, 128 planned order, 132

448


planning with MRP areas, 127 planning without MRP areas, 126 regenerative planning, 130 sales order, 135 scheduling, 129, 226 simulative MRP, 389 single-item, 131 stock/requirements list, 133 total planning, 130 material staging, 325 material type, 39 menus, 3 role-based, 5 missing parts list, 239 MRP list, 132, 211 collective display, 213 functions, 211 planned order, 272 structure, 133 multiple session, 6 mySAP.com, 403 Continuous Business Improvement (CBI), 410 ValueSAP, 403 mySAP.com Workplace, 5 roles, 5

N navigation tree, 4 net change planning, 130 net requirements calculation, 128 net requirements planning, 188

O operation dispatching, 251 operation lead time, 229–230 order confirmation, 161, 252 backflushing, 253

December 2001

LO050

Index

order lead time, 230 order tree, 214 order-based production, 315 work centers, 316 organizational levels, 32 company code, 33 plant, 33 storage location, 34 overview tree, 214 order tree, 214 product group tree, 214 worklist tree, 214

P period-based planning, 323 planned independent requirements, 386 activating, 386 creating, 383 planned order, 132, 272 planning bill of material (BOM), 125 long-term, 380 make-to-order, 93, 270 make-to-stock, 93 period-based planning, 323 planning with final assembly, 93–95 procedures, 123 production, 76 production order, 153 sales and operations planning (SOP), 98 scenario, 380 strategies, 92 table, 101, 323 time fence, 193 planning procedures, 123 planning scenario, 380 defining, 381 planning strategies, 92 planning table discrete production, 324 planning time fence, 193

December 2001

planning with final assembly, 93–94 consumption, 95 consumption logic, 142 demand program, 95 forecast quantity, 95 sales order, 135 planning without final assembly, 299 master data, 301 sales order, 300 stocking level, 301 plant, 33 storage location, 34 work center, 63 plant data collection (PDC), 161 posting periods, 164 product cost collector, 164 posting periods, 164 product cost planning bill of material (BOM), 51 product group, 99, 112 demand management, 113 planning scenarios, 113 proportion factor, 99, 113 product group tree, 214 production dispatch list, 325 KANBAN, 349 make-to-order, 270 make-to-stock, 93, 188 master production scheduling (MPS), 192 order-based, 315 planning, 50 production plan, 103 Purchasing Information System, 386 rate routing, 321 repetitive manufacturing, 315 production line, 320


449

Index

LO050

line hierarchy, 320 production order, 153 bill of material (BOM), 157 collective order conversion, 214 confirmation, 161 cost object controlling, 163 costs, 162 creating, 156, 214 data, 153 elements, 154 final delivery, 254 goods issue, 160 goods movement, 159 goods receipt, 159, 162 order confirmation, 252 process, 155 product cost collector, 164 release, 158 production plan, 103 creating, 104 production planning, 50, 76 bill of material (BOM), 50 costing, 76 pull principle, 351 push principle, 351 production resources/tools (PRT), 75 master records, 75 productive operating time, 247 pull list, 326 pull principle, 351 Purchasing Information System, 386 push principle, 351

Q Question & Answer Database, 408

R R/3 System

450


help, 9 logon process, 3 menus, 3 multiple sessions, 6 navigation tree, 4 online help, 9 organizational levels, 32 roles, 5 status bar, 7 rate routing, 321 regenerative planning, 130 release notes, 9 reorder point planning, 123 repetitive manufacturing, 314 backflushing, 317, 327 bill of material (BOM), 319 components, 316 Logistics Information System (LIS), 327 material staging, 325 period-based planning, 323 planning table, 323 production line, 315, 320 production plan, 322 production versions, 318 profile, 317 pull list, 326 roles, 5 mySAP.com Workplace, 5 routing, 71 bill of material (BOM), 74 groups, 72 material components, 72 production, 72 rate routing, 321 sequences, 73 standard values, 71 super routing, 291

December 2001

LO050

Index

work center, 72–73

S sales and operations planning (SOP), 98 demand management, 113 planning table, 98, 101 process flow, 100 product group, 99, 112 production plan, 103 sales plan, 102 stock/requirements list, 116 sales information system (SIS), 102 sales order, 135 availability check, 135 planning with final assembly, 135 planning without final assembly, 300 sales plan, 102 creating, 102 distribution, 102 SAP Easy Access favorites, 4 navigation tree, 4 SAP Library, 9 SAP Solution Maps, 403 SAP Support and Services Network, 410 SAPNet, 9 feedback, 9 scheduling, 226 basic-date scheduling, 227 execution time operation, 230 float time, 230 interoperation time, 230 lead-time scheduling, 227–228 operation lead time, 230 order lead time, 230 sales and distribution processing time, 231

December 2001

simulative MRP, 389 main memory, 391 single-item planning, 131 standard available capacity, 247 status bar, 7 stock/requirements list, 116, 133, 210 capacity requirements, 211 collective display, 212 display options, 210 functions, 211 structure, 133 stocking level, 301 storage location, 34 super BOM, 291 super routing, 291 supply area, 354

T tabular planning table, 249 TeamSAP, 406

V ValueSAP, 402 continuous business improvement (CBI), 411 framework, 403 implementation, 405 variant configuration, 289 configurable product, 290

W work center, 63 basic data, 64 capacity categories, 246 capacity screen, 64 component assignments, 74 default screen, 64 hierarchy, 65 links screen, 64 plant, 63 production, 65


451

Index

LO050

routing, 73 scheduling, 64 standard available capacity, 247

452


statistical, 65 supply area, 354 worklist tree, 214

December 2001

Feedback SAP AG has made every effort in the preparation of this course to ensure the accuracy and completeness of the materials. If you have any corrections or suggestions for improvement, please record them in the appropriate place in the course evaluation.

December 2001


453

LO050 PP Discrete & Process 2001

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