SAP Tutorial

Production Planning
• SAP = Systems, Applications & Products in
Data Processing

• Modules implemented at LOIL :

– Material management
– Sales and Distribution
– Finance and Accounting
– Production
– Quality Management
• 3-Tier Structure of SAP

Graphic User Interface

Application

Database
• SAP Server Structure

Configuration

Production Server
Development

Quality
• How Production Module fits in the Picture

Procurement PRODUCTION Sales

Finance & Accounting

Production Module covers

1. Product Costing
Cost of Raw Materials + Cost of Running Machinery +
Labour Cost + Cost of Packaging

2. Scheduling of Production
(More important in Diketene, where several products
manufactured on same equipment)

3. Capacity Planning

4. Material availability check

Master Data for Production
1. Resource : Equipment used in Production
Used in : Scheduling
Used in : Costing of Product

2. Master Recipe : Contains –

i. Bill of Materials (BOM):
Stores RM Quantity required to produce 1MT of Product
Used in : Material availability check
Used in : Costing of Product

ii. Routing : Flow of material through Equipment

Used in : Scheduling

iii. Standard Values for Activities : Utilities required to run the Resource to
produce a base quantity of material (EA-II : 24 hrs : 125MT EA)
Used in : Costing of Product
 Resources for Ethyl acetate
• EA – Ia, EA - Ib &
• EA – IIa, EA - IIb

 Resources for Acetic acid

• AA – Ia, AA - Ib &
• AA – IIa, AA - IIb

 Resources for Acetaldehyde

• AcH – Ia, AcH - Ib
• AcH – IIa, AcH - IIb

 Resources for Absolute alcohol

• Abs – Ia, Abs - IIb
 Resources for Diketene
• DKT

 Resource for MMAAA

• Reactor for MMAAA-1
• Reactor for MMAAA-2
• Intermediate Reciever for MMAAA

 Resource for Methyl Ester

• Reactor for MAA
• Distillation Unit : Reciever for MAA
• Distillation Unit : for MAA
• Product reciever for MAA
• First Fraction reciever of MAA
Planning Production
Planning done for month beginning based on
quantity decided in MRM

Planning done at :
• At Product Groups level -
• At Material level – MD61

Run MRP
Further Processing of Planning:

• Automatic generation of Planned Order &

Purchase Requisitions for RM after MRP run
(MD04)
• Create Process Orders (done by Prodn) &
Purchase Orders (done by MM) from the
requirements (MB1A)
• Issue RM to Process Order (from Day tank)
• GRN of FG from Process Order (to Day tank)
(MB31)
• Confirmation of activities (ie enter utility
quantities) (CORR)
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