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SAP Overview – Production Planning

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Contents

 Introduction to Production Planning

 Master Data
 Process Scenarios
 Critical Reports

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Introduction to Production Planning

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The Integrated Supply Chain

Product Flow

Demand

Supplier Purchasing Production Distribution Retailing Customer

Financial Human
Control Resources

Information
Flow
Supply Chain Management: The delivery of enhanced customer and economic value
through management of the flow of physical goods and
associated information.
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 Overview of Production Planning

Planning process
Execution process
Sales Info Procurement
System

Sales & Oper Demand Process Order Order

Forecasting MRP Settlement
Planning Mgmt

CO/PA

Inventory Costing

Capacity Planning

Production Master Data (e.g. BOM, Routing, Work Center)

Reporting and Analysis (e.g. Logistics Information System, Order Information System)

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Master Data in Production Planning

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PP-PI vs. Standard PP

PP-PI Standard PP

Resource Work Center

BOM
Master Recipe
Routing

Production
Process Order
Order

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Master Data
- Material Master

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Material Master

 The material master file contains the data and parameters that define each
material used in an SAP. The information relevant to a particular organisational
unit for a specific material is defined in a separate view of that material.

 Key Terms
- Batch Management
- MTO
- MTS
- Backflush
- Variant Configuration
- MRP Controller
- Valuation class

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Views in a Material Master

Basic Data Sales Storage

Classification Purchasing Purchase

Order Text

Inventory
Quality
Sales Information
Production Information Foreign MRP Accounting
Desc:---------------------
Trade
Product - Ad_bboot_fs

Work Forecasting Costing

Scheduling

Plant/Storage
Location
Stock
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Material Type / Industry Sector

Chemical
Retailing
Industry
Inventory
Purchasing
Desc:---------------------

Raw Material - Blade-sm

Inventory
Purchasing
Inventory Desc:---------------------
Quality
Sales Information
Production Information Spare Part 172
Desc:---------------------

Finished Product -
Ad_bboot_fs Inventory
Quality
Sales Information
Production Information
Desc:---------------------

Semi-Finished 423

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Material Type

Price Control
Indicator

Default Item
Field Reference Category Group
FERT

HALB
What Views are MATERIAL Account
Allowed? TYPE Assignment
HAWA
ROH

Production Orders Should Quantity/

Allowed? Value Updating be
Number Range & Done in Val. Area?
Number Assignment
• Internal
• External
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Material Master : Review

 Factors that can influence field selection for material master records are:
- Transaction
- Procurement indicator
- Material type
- Plant
- Industry sector
 The material master is the central master “record” for logistics.
 A material master is broken down into views.
 Data in the material master is defined at different organisational levels including client,
plant, storage location, etc.
 The material type controls such things as number assignment and which views are
allowed.
 The industry sector controls field selection in the material master.
 Material statuses can be defined to control processing allowed for a given material,
some examples include:
- Whether a product can be purchased
- Whether a product can be used in a production order
- Whether inventory movements can be carried out for a material

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Material Master: Review

 Some of the things a material type controls include:

- What views can be maintained
- Field selection
- Number range
- Various default data: price control, item category group

 The base unit of measure is the unit in which the stocks of the material are
managed. All quantities which are entered in other units of measure are
converted to the base unit. Other units of measure include: order unit, unit of
issue, sales unit, and delivery unit.
 Data in the material master can be changed immediately or the change can be
planned and then activated on a future date. Changes can be made with or
without reference to a change number from Engineering Change
Management.
 A material can be displayed in its current status or in its status on a key date.

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Material Master: Review

 You should be able to:

- Describe the master files used in Logistics.
- Know what a material type controls.
- Know what an industry sector controls.
- Understand the relationship between the base unit of measure and other units of
measure.
- Understand the different ways in which a material can be changed.
- Know how to create a material.

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Master Data
- Bills of Material

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 Definition of a Bill of Material

A bill of material is a complete, formally

structured list of the components which
make up a product or assembly. The list
contains the description and object
number of each component together with
the quantity and unit of measure.

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 BOM Structure

HEADER
– Status
– Texts
– Usage
...

ITEM
–Co-product
–Scrap
–MRP data
–Recursiveness
...

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Integration of BOMs in the System

Master Data Materials Management

–Purchasing
–Material –Warehouse
–Documents
–Bill of material
–Recipes Sales and Distribution
–Resources
–Sales order
–Cost centers
BOM

Plant Maintenance

–Maintenance plan
Controlling –Maintenance order
–Product costing
–Unit costing Production
–Standard costing
–Material requirements planning
–Planned orders
–Production orders

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 BOM Categories

Material BOM
Material
Master
Record
Material

Equipment BOM
Equipment
Master
Record
Equipment

Document BOM
Document
Document
Information
Record
Document

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 Validity Period

SAP AG 1997 SAP AG 1997

2
7

Valid from Valid to

Validity Period

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 Structure: Automobile

Low-

Level
Hyundai Excel Code
M5-HRH01 0

Window + Seat Wheel

Metal Frame
1
M5-20057 M5-LEATH M5-72639

Leather Padding Rim Hubcap

Glass Chrome
Fabric
Frame
2
M5-72
M5-GABEL M5-HR01
M5-L21 M5-LP21 M5-72639R 639H

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 BOM Usage

Construction/
Technical Data

Costing/Price

Plant
BOM Maintenance/
Location Data

Production/
Operations

Sales
Sales/ Order

Order Quantity

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 Item Categories

Stock Items L

Non-Stock Item N

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Master Data
- Resource

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Resource / Work Center

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Primary Functions of a Resource

Resource

Scheduling Data
Default Values Costing and Available
for Task Lists Data Capacity

Lead Time Scheduling,

Task Lists Costing Capacity Planning

2724,00
1200,00
124,00
4048,00

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 THAI RAYON PUBLIC CO., LTD.
VISCOSE PREPARATION
SLURRY PRESS

ALK. CELL SILO

CAUSTIC SODA 25% SHREDDER ROLLER

MATURING DRUM
WATER WAGNER FILTER

EXHAUST
LYE AND WATER
SCREW CONVEYER CARBON DISULFIDE
PROCESS STARTS
HERE PRESS LYE TANK COOLING CHILLED
DEVICE WATER

HOT WATER
AIR
SLURRY
MIXER
SILO BLOWER ROTARY VALVE
XANTHATOR DRUM
HOMOGINIZER

PULP FEEDER
CONVEYER

CHILLED
FLASH DEARATOR WATER
DISSOLVER TANK
VACUUM PUMP

P2 TANK P2 TANK
CHILLED WATER
DISINTEGRATOR

SPINNING VISCOSE
TANK
INTERMEDIATE
TANK

RECEIVING RECEIVING
CHILLED TANK TANK
WATER

TO SPINNING
MACHINE
PRE FILTER FINAL FILTER
(TWO STAGE)
REJECT REJECT
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Resource Usage

Only Routings
Routing

Only Networks
Network

Only Maintenance Task Lists

Maintenance Task List

Master Recipe and Process Order

Master Recipe & PO

All Task List Types

All Task List Types
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Resource Data

Basic
Basic Data Data • Name and description
• Standard value key
• Performance efficiency rate
Default Values
Default Values for • Control key
• Standard text key
Task Lists • Wage data
Assignment
Costing Data and • Cost center
• Activity types
HR System Data • Formula key
Scheduling
Scheduling Data • Capacity category
• Interoperation times
• Formula key
Capacity
Capacity Data • Available capacity
• Formula key
• Utilisation
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Relationship Between Resource and Operation

Default Values

Operation 10
Activity Types

Standard Value Key

Control Key
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Evaluations (Reports)

Resource List

Cost Center Allocation

Resource Capacity

Resource Hierarchy

Resource
Where-Used List
Capacity
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Process Industries
Chapter 2 - Resources

 PP-PI uses a resource in the same way that standard PP uses a

work center. They share the same basic structure regarding basic
data, default data, scheduling, capacity, and costing.
 Resources are allocated to resource categories according to their
functions. This category controls the field and screen selections for the
resource.
 The resource usage key determines the tasks list types in which you
can use the resource.
 Resources can be grouped in resource hierarchies for capacity
planning purposes.
 Predecessor and successor relationships of resources can be
established in resource networks.

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Master Data
- Master Recipe

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Master Recipe - Definition

A recipe describes the processing

Definition steps required to produce a
material or provide a service in the
process industries

Header

Structure Operations

Phases

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Master Recipe Structure

Resource
Recipe Header

Material List
Operations

Resource Allocations
Phases Mat
----- ------ -------

Material ----- - ----- --

------- ------- ---------

Material
Components

Relationships

Inspection Characteristics
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Elements of a Recipe

Resource
Header
Requirements

Recipe

Procedure Materials

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Recipe Header Information

Resource
Header Require- • Resource Network
ments
• Recipe Usage
Recipe • Recipe Status
Procedure Materials
• Planner Group
• Charge Qty Range
• Administrative Data

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Recipe Procedure (1)

Resource
Header Require-
ments

Op. 100
Recipe
Procedure Materials Ph. 110 Ph. 120

Ph. 210 Ph. 220

Op. 200

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Process Industries
Chapter 3 - Master Recipe Overview

 PP-PI uses a master recipe in the same sense that standard PP uses a
routing.
 The master recipe describes the production of materials with detailed
information on the process. It is the basis for the process order.
 Multiple master recipes can be combined in recipe groups to represent the
possible alternative process flows. Recipes are not material dependent.
 A master recipe contains an operation overview (routing) as well as a material
list (BOM).

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Production Version of Master Recipe

Recipe Group
50000044 / 1
Recipe

Plants,
M1 M2 ...
Material

Production
V11 V12 ... V21 V22 ...
Version

B11 B12 ... Material BOM

= Validity on a time axis

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Process Industries
Chapter 4 - Master Recipe - Material List
 The material list is a single level representation of the materials required in the
manufacturing process.
 The material list can contain multiple input materials as well as multiple output
materials (i.e. finished products, co-products, by-products)
 The material list can be product specific or
process specific.
 An intra-material is a material without a master record that only exists
temporarily between process units.
 Once a material list (BOM) is created or changed through a master
recipe, it can no longer be changed via the BOM transaction.

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Phases

Operation 10
Mat
----- ------ -------
----- - ----- --
------- ------- ---------

Material

Phase 10/10
PreBurning

Phase 10/20
Burning

Phase 10/30
Cooling
Operation 20

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Operations/Phases/Relationships

Operation 10

Phase 11 Phase 12 Phase 13

Trnsprt Grinding Storage

Phase 21 Phase 22
Extraction Preheating

Operation 20

Time

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Default Values for Recipes from Resources

Data Defined for Resource

Default Values

Activity Types
Operation 10
Standard Value
Key

Standard Value
Verification

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Pre-Planning Quality Inspections During Production

Recipe Header QM Data

Operation/Phase Inspection Characteristics

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Process Order Processing

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Objectives

At the end of this session You will understand the Process order
processing functionality in PP-PI :
 What is Process order
 Ways of creating Process Orders
 Process Order Structure
 Operations, Component & Phases

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Application-Independent Functional Data Flow

Process Order Management

Independent
Goods Issue
Requirements
Sales/Distribution
Sales Requirements
MRP Process Order
Material Forecast
Preliminary Planning Rough-Cut Detailed Planning
Capacity Planning

Planned Order Planned Order

Conversion to Conversion to
Process Order Process Order
Costing
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Process Orders and Organisational Structures

Organisational Units
Company

Controlling Areas

Sales Organisations Purchasing Organisations

Company Codes
• Demand management
Valuation Areas
• MRP

Plants • Process order

• Production control
Storage Locations/Batches/Special Stock
• Inventory management
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Ways of Creating a Process Order

Creation with Material

Master Recipe Process Order

Manually Create Without Material
OR

Creation with Planned Order

One Planned Order Process Order

Creation with Several Planned Orders

Several Planned Orders Process Orders

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Creating a Process Order/Selecting a Master Recipe

Criteria for
the Selection
of a Master
Recipe
Initial Screen Main Header  Material/recipe Operation
allocation Overview
Quantity
Material  Charge quantity
Order Start
Order Type Date  Key date
 Usage
 Status
Selection Criteria:
Criteria

 Usage
 Status of
the Master
Recipe

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Process Order Structure

PO

PO Header
Material List

Operations

Resource Allocations
Phases

Material Allocations Mat

----- ------ -------
----- - ----- --
------- ------- ---------

Material

Relationships
Costs
Inspection charact.

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Process Order Header

PO
Definition
PO Header Product or service to be
produced with the recipe

Operations Origin
Manually
Master recipe
Phases
Resource
Allocations
Mat
----- ------ -------

Material
----- - ----- --
------- ------- ---------

Components Material

Costs
Relationships

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Header Data in the Process Order

• Material and/or service • Goods receipt control

• Quantities Goods • Valuation type
Main Header • Dates Receipt/
Valuation
• Order type/number

• For BOM/Material list • Settlement rule

• For costing Account • Settlement receiver
Master Data
• For master recipe Assignment • Percentage rates

• Entered/changed by • Deadline monitoring

Date/
• Plants/business areas • Quantity monitoring
Allocations Quantity
• Assignments Overview
• MRP controller
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Material Components

PO Definition
PO Header Materials necessary to carry
out an operation (phase) or
manufacture a product

Operations BOM Item Categories

• Stock material
• Non-stock material
Phases • Raw material
Resource • Text (components)
Allocations • Intra material
• Co-products
Material
Origin
Mat

Components
----- ------ -------
----- - ----- --
------- ------- ---------

Material
Costs • Manually
• Master recipe
Relationships
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Material Component Data in the Process Order

• Material number • Reservation

• Material description • Item category
Component • Requirement quantity • Bulk material indicator
Overview General Data • Requirement quantity
Process Order • Requirements date on Components •
Available quantity
• Quantity issued
• Missing parts

• Material number
• Material description
Long Text • Text editor
Component • Requirement quantity
Overview
Operation • Requirements date
Charge • Formulas
Calculation • Quantities

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Operations and Phases

PO Definition
PO Header Individual step in the
processing of a process order

Operations Origin
Manually
Master recipe
Phases
Resource
Allocations
Mat
----- ------ -------
----- - ----- --
------- ------- ---------

Material
Material
Components
Costs
Relationships

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Operation and Phase Data in Process Orders (1)

Operation/ Standard Values

Phase Overview
• Operations • Standard values per
• Superior operation operation
(for phases) • Base quantity
• Resource • Operation quantity
• Status information (over- • Duration
view in two lines only)

Operation Dates

• Confirmed dates
• Earliest/latest dates

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Operation and Phase Data in Process Orders (2)

Material Allocation Quantities/Activities

• Quantities/units of meas. • Confirmed quantity

• Material availability Operation quantity
• Batch specification • Confirmed activities
Services to be
confirmed

Relationship Functions User Fields

s
• Type • Release • Fields depending on
• Time (absolute/in • Create control recipe key word
percent) • Change status

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Cost Objects (Account Assignments)

PO
Definition
PO Header
Receiver of the process order
costs (settlement receiver)

Operations Types
Material
Phases Cost center
Resource CO process order
Allocations Mat
----- ------ -------
----- - ----- --
------- ------- ---------

Material
Material Origin
Components
Manually
Costs
Automatically
Relationships

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Process Orders Processing

Planned Order

Process Order Creation CO

Process Order Release

Material Withdrawal

Process Order Execution FI

MM Completion Confirmation

Inward Stock Movement

Process Order Settlement

SD Archive / Delete

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Integration Between Process Order and Inspection Lot

Master

----- ------ -------

----- - ----- --
------- ------- ---------

Operation 1 Material
Create
Inspection Master

Inspection Lot
Quality
Characteristics Management

Phases

Inspection
Characteristics

Material Recipe
Component

Inspection
Characteristics Inspection
Characteristics
Unplanned
Inspection
Characteristics

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Process Industries - Process Order
 Process orders are the equivalent of production orders in standard PP.
 Process orders are created at the plant level.
 Process orders can be created manually using a material, manually without a
material, or from one or more planned orders generated in MRP.
 When a process order is created, the system typically looks for an
appropriate master recipe. In Customizing you can determine whether a
master recipe must be selected, whether the selection should be automatic or
manual, and what the search criteria should be in the case of automatic
selection.

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