SAP for Mill Prod roduct ucts s
Varia ri ant Config Conf igur ura ation ti on and MTS MTS Produ ro duct ctio ion n A w i s h o r r eali eal i t y ?
Stefan Soeller, SAP Solution Manageme Management nt - IBU Mill Produ Produ cts & Mining
Configuration basics
Configuri ng a sales order line item results in -
Production: Make-to-Order
-
Inventory: Customer specific stock
Configuring a production order alw ays requires a relation to sales order stock / copy c haracteristi cs
Further Solution Discussion is part of DIMP Industry Extension DIMP
SAP ECC 6.0
Mill Products
Industry & Enterprise Extensions
EE EE EE IE
IE
IE
Aut om ot ive Aeros pac e & Defens e
SAP ECC Core
Mill Products
Aut omot ive
Engineering & Construction High Tech
Former
add-on has become Industry Extension
Functionality
stil l available
Shipped
as part of the ERP Core Compo nent
Only
one IE can be active
Industr y
Extension DIMP used across s everal industries
Processes
Functionality
Processes
originally created with background of o nly o ne of the DIMP industries
runnin g in on e industry segment supported across different DIMP indust ries not allowed
Indivi dual
check b y SAP Custom Developm ent possible
Configuration in MTS – possible in three different sc enarios
Sales Order
Production Order
Different behavior i n
Possible with external planning too l e.g. APO
ERP
ERP & external planning tool
Configuration in MTS
Sales Order
Material Variant (MTS variant)
Production Order
Any variant configuration material
Different behavior i n
ERP
ERP & external planning tool
Pre-requisite:
Material is batch managed
Customizing requirement class
Only possi ble with external planni ng to ol e.g. APO
Pre-requisite:
Material is batch managed Active integration model / MRP type external planning
Changing Characteristic Values of con fig ured MTS Material Variants Change in sales ord er – ERP only Business Background Direct sales (e.g. metal serv ice c enter, lumber, ….) uti lizes MTS material Customer request is diff erent from what is available in stoc k : Avail able material / inv ento ry: Customer request:
10 feet tu be 9 feet tube
Sales rep needs to change material master data in s ales order fro m 10’ to 9’ No MTO segment / NO indiv idual c usto mer requirement sho uld be created No production ord er should / can be involved in cutting tu be to length
Executi on based e.g. on delivery doc uments (no captur ing o f cutt ing c ost). See transaction MILL_CUT
Changing Characteristic Values of con fig ured MTS Material Variants Change in sales ord er – ERP only
Restrictions
Changed values are only considered during batch determination, pricing, quantity conversion, and in sales documents
ERP MRP does not consider changed characteristic values. In case of insufficient material in stock, MRP will create replenishment order for 10 feet length
Changing Characterist ic Values of con fig ured MTS Material Variants Example
Sales Order Material Master Tube 123 Grade
1b
Co re Di am.
150
Width
200
Length
8 – 10 feet
Specified in Sales Order
Tube 123 Batch 1
Tube 123 Batch 2
Length
8 feet
Length
9.5 feet
Weight
...
Weight
...
Batch Determin ation also used for: Pricing Print Sales Doc Quantity conversion Only production relevant with external planning system
Changing Characterist ic Values of con figur ed MTS Material Variants (ERP&APO) -1Change in sales o rder – ERP & APO Business Background Same as befor e
Behavior of external planning tool e.g. APO
APO planning run is able to plan on characteristic level (while ERP can only plan on material level), and thus transfers changed sales order characteristics to APO planned order
APO pegging connects sales order with planned order based on characteristics
APO orders transferred to ERP as a MTS production order with configuration of sales order
Changing Characterist ic Values of con figur ed MTS Material Variants (ERP&APO) -2Change in Sales ord er – ERP & APO Motivation Classic al Make-to-Order has limi tations in pl anning
Planning run cannot access stock from other sales orders
Inability to increase quantity of planned orders to e.g. utilize its quantity size optimization not possible
Sales order stock could only be moved into make-to-stock segment with material master price (not considering sales order configuration)
Use Make-to-Stock pr odu ctio n with c onfi gur able materials
Provide additional flexibility for supply chain planner in APO by modeling sales order driven make-to-stock (Best Practice Primary Steel concept)
lot
Make-to-stock produ ctio n w ith c onfi gurable materials (APO)
Support configuration for MTS item in sales order and production
Planned Order Configure MTS-item APO Sales Order
MTS-item w ith own configuration
Customizing of requirement class; batch managed
APO ensures that characteristic values are passed to planned order
Productio n Order ERP
Goods Receipt
MTS-item with own configuration
of MTS item (batch)
Characteristic values are passed on to production order in ERP without sales order reference
APO pegging connects sales order with planned order based on characteristics
Configuration in MTS
Sales Order
Fully Configured Material Variant (MTS variant)
Different b ehavior in
ERP
ERP & external planning tool
Production Order
Any variant configuration material
Possible with external planning too l e.g. APO
Pre-requisite: Pre-requisite:
Material is batch managed
Customizing requirement class
Material is batch managed Active integration model / MRP Type external planning
Configuration in MTS Prod uction Orders Enable the production planner to generate a MTS production order with the header material configured to his needs Use Cases
The production planner has knowledge of future incoming demand and needs to be prepared with e.g. semi-finished or finished goods in inventory to quickly satisfy the demand
Material produced is a trial version for internal or external usage
Excess inventory (e.g. cancelled SO) / damaged / doesn’t meet original quality requirements / … needs to be processed to be sold at a later time
…
Create Production Order – DIMP specific
1 1 Characteristi c v alues can be edited 2 No sales order assignment required
2
Thank You! Contact information:
Stefan Soeller, SAP Canada Solution Management – IBU Mill Produc ts & Mining Email:
[email protected]
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