TABLE OF CONTENTS

1. MASTER DATA.....................................................................................................................................3
1.1 PRODUCT STRUCTURE – TWIN SIZE BED....................................................3
1.2 DETAILS OF PRODUCT STRUCTURE – TWIN SIZE BED.............................4

2. STOCK LEVELS...................................................................................................................................5
2.1 STOCK LEVELS – TWIN SIZE BED..................................................................5
2.2 TRANSACTION CODE AND MENU PATH......................................................6

3. BILL OF MATERIALS........................................................................................................................7
3.1 GRAPHICAL HARDCOPY..................................................................................7
3.2 BOM - EXPLODED VIEW – LEVEL BY LEVEL...............................................8
3.3 BOM – FUNCTION APPLIED TO TWIN SIZE BED..........................................8

4. MATERIAL REQUIREMENT PLANNING......................................................................................8

4.1 DEFINITION OF FIELDS IN MRP VIEWS.........................................................8
4.2 FINAL MRP RUN – Twin Size Bed......................................................................8

5. WORK CENTRE...................................................................................................................................8
5.1 WORK CENTRE GRAPHICAL VIEW................................................................8
5.2 WORK CENTRE INFORMATION SYSTEM AND TRANSACTION CODE....8
5.3 FUNCTION OF WORK CENTER IN SAP PP.....................................................8

6. WORK CENTRE...................................................................................................................................8
6.1 ROUTING REPORT.............................................................................................8
6.2 ROUTING FUNCTION........................................................................................8
6.3 PRODUCTION ORDER DISPLAY......................................................................8

7. References................................................................................................................................................8
 1. MASTER DATA

1.1 PRODUCT STRUCTURE – TWIN SIZE BED

Twin Size Bed

(Finished
Product)

Headboard Footboard Side Rail Middle

Assembly Assembly Assembly Support
(Semi- (Semi- (Semi- Slats
Finished Finished Finished (Semi
Product) Product) Product) Finished
Product)

Wheel Set Metal Wheel Metal Wheel Metal

(Semi- Screws Set Screws Set Screws
Finished (Raw (Semi- (Raw (Semi- (Raw
Product) Material) Finished Material) Finished Material)
Product) Product)
1.2 DETAILS OF PRODUCT STRUCTURE – TWIN SIZE BED

Table 1: Details of Twin Size Bed

Item Description Type Unit of Gross Unit of Size
Code Measure Weight Weight
Semi Finished Kg 25
M-639-S Metal Head Frame PC 10.0 inches
Assembly x 28
inches
Metal Screws (1/2" Raw Material PC 1.0 G 5mm
M-639-I x 1/16")
Wheel Set for PC 1.0 Kg
M-639-N Head Frame, Foot Semi Finished
Frame, and Middle
Foot
PC 9 Kg 20
M-639-R Metal Foot Frame Semi Finished inches
Assembly x 28
inches
Side Frames with PC 10 Kg 79
M-639-T middle leg Semi Finished inches
Semi Finished PC 10 Kg 38 x
M-639-U Middle Support Product 27
(Slats) inches
Finished PC 50 Kg
M-639-Z Twin Size Bed Product

2. STOCK LEVELS
2.1 STOCK LEVELS – TWIN SIZE BED

Item Code Storage UNe Plant Stock on

Location Hand

MW-639-A 0001 P 30 500

C 00
MW-639-B 0001 P 30 6,000
MW-639-C 0001 C
P 00
30 3,000
MW-639-D 0001 C
P 00
30 500
MW-639-E 0001 C
P 00
30 1000
MW-639-F 0001 C
P 00
30 1000
MW-639-Z 0001 C
P 00
30 500
C 00
2.2 TRANSACTION CODE AND MENU PATH

TRANSACTION CODE: MB52

MENU PATH: Logistics > Material Management > Inventory Management > Environment > Stock > Warehouse Stock

3. BILL OF MATERIALS
3.1 GRAPHICAL HARDCOPY

3.2 BOM - EXPLODED VIEW – LEVEL BY LEVEL

3.3 BOM – FUNCTION APPLIED TO TWIN SIZE BED

Bill of Materials function defines multilevel bill of materials - one level at a time. The structure of BOM has an hierarchical arrangement of
components. All the sub-assemblies and raw materials that are required to assemble and produce the finished product are shown under the
BOM.
The product chosen here is Twin-Size Bed. The sub-assemblies in this can be divided into two levels – first and second. First level
assemblies are the head board assembly, footboard assembly and side rail assembly. These semi-finished products further moves down to
second level where in wheel sets (Semi-finished Product) are fixed to it using the metal screws (Raw Material).

4. MATERIAL REQUIREMENT PLANNING

4.1 DEFINITION OF FIELDS IN MRP VIEWS

 Safety Stock and service level: Safety Stock and Service Level: Safety stock as the name suggests is the stock level till which the
dead stock or stock out situation will not arise (probable figure based on past data maintained in master). As such this figure is not
stock, it is cut-off figure maintained in master which is used for Planning and once the stock level dips below this value, we can
configure system to generate PR, orders automatically. It has its relevance in MRP. Safety Stock is the quantity of stock held to
satisfy unexpectedly high requirements in the stocking-up period. The purpose of the safety stock is to prevent a material shortage
from occurring. In order to determine the safety stock level, we must first specify the risk of a material shortage and also the desired
service level.

The purpose of the safety stock is to prevent a material shortage from occurring.

In order to determine the safety stock level, we must first specify the risk of a material shortage and also the desired service level.

The safety stock depends on the service level that we specify in the MRP 2 view of the material master record and on the accuracy of
the forecast.  The more accurate the forecast, the smaller our safety stock can be.

Lead Time: A lead time is the period of time between the initiation of any process of production and the completion of that process.
For example, the lead time for ordering a new car from a manufacturer may be anywhere from 2 weeks to 6 months depending on the
internal processes involved in processing the end product. It needs calculate all the upstream product movement and upstream and
downstream information movement and the time consumption in each step.

Minimum Lot Size: We define the minimum lot size on the Lot Size tab page in location product master data in conjunction with the
Fixed Lot Size or Lot-for-Lot lot-sizing procedure. The SNP optimizer takes these settings into account for integration purposes (with
PP/DS, for example). The minimum lot size defined in the product master applies to all the PPMs that use this product as the header
material. If the minimum lot size in the product master is larger than the minimum lot size in the PPM, the optimizer takes into account
the value from the product master. The maximum lot size defined in the product master has no relevance for the SNP optimizer.

Planned Delivery Time: A finished component is made of several sub components. Once the order is received by the system, it
has several process to be followed. Once we create our material by giving the subcomponents- each component and subcomponent
has a procurement cycle which includes the planned delivery time. The material requirements are calculated using the following
formula:

Forecast value for the interval (cycle + purchasing department processing time + planned delivery time + goods receipt processing
time) + safety stock. The planned delivery time is included in the calculation in the calendar days and the purchasing department
processing time and goods receipt processing time in workdays.

4.2 FINAL MRP RUN – Twin Size Bed

 5. WORK CENTRE

5.1 WORK CENTRE GRAPHICAL VIEW

5.2 WORK CENTRE INFORMATION SYSTEM AND TRANSACTION CODE

Transaction Code : CR60

5.3 FUNCTION OF WORK CENTER IN SAP PP
The work center includes the details on capacity requirement planning, costing (resources), scheduling, and execution times.

6. ROUTING
6.1 ROUTING REPORT

Transaction Code – CA51

6.2 ROUTING FUNCTION

As the diagram above shows, routings show the flow of the production process. It is a template which we use in the production process.
The above diagram shows the structure of routing which gives a detailed description of the products used, the capacity, time etc.

6.3 PRODUCTION ORDER DISPLAY

 7. References
1. SAP 2010,SAP,Viewed 5th September 2010,
< http://www.sap.com>
2. Vollmann TE et.al 2005, Manufacturing Planning and Control Systems for Supply Chain Management, NewYork.