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Material Management
Material Management
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Introduction Why Material Management ??? Process Flow Material Management Integration Material Management Component Benefits of Material Management Implementation Challenges Q&A Thank you !!! Appendix A - MM Definition Appendix B Material Type Appendix C MM Terms & Definition Appendix D Important MM Tables
Introduction
SAP MM Module is one of the most important SAP Modules where MM stands for Materials Management - underpins the supply chain, including Requisitions Purchase orders Goods receipts Accounts payable Inventory management BOMs Master raw materials, finished goods etc
Process Flow
orders S U P P I E R S Purchasing Finish Goods Storage
R E C I V I N G
In Process Storage
D I S T R I B T N
C U S T O M E R
MM Integration
SD PP QM MM FI AM Material Management CO PS Controls Project System PM Sales & Distribution Production Planning Quality Management
Purchasing
Purchasing is a component of Material Management. Task of Purchasing as following : External procurement of material & services Determination of possible source of supply Monitoring deliveries from and payment to vendors. Integration with :SD, FI & CO
Inventory Management
Task of SAP-IM as following : Management of material stocks on a
quantity and value basis Planning, entry and documentation of all goods movement Carrying out the physical inventory
Logistic Invoice Verification :It is a component of MM. It is in the logistic invoice verification that incoming invoice are verified in terms of content, price and arithmetic.
which start with purchase requisition & result in goods receipts. It allows invoices, that do not generate in material procurement like expenses to be processed. It allows credit memo to be processed.
Vendor Evaluation :The Vendor Evaluation component supports you in optimizing your procurement processes in the case of both materials and services
Task of SAP-IV-LIV as following : Helps you to select source of supply & monitoring of existing supply relationships Vendor reliability
Benefits of MM
Material cost can be lowered down Controlling of indirect cost Risk of Inventory loss minimized Reduction in loss of time of direct labor Control of manufacturing cycle Material congestion in storage places avoided Improvement in delivery of the product
Implementation Challenges
Optimizing time and quality for product Selection of appropriate vendors Difficulty in forecast accurate demand
Management of information
Q&A
I hate it.
Appendix I MM Definition
Material management is the grouping of management functions supporting the complete cycle of material flow, from the purchase and the internal control of production material to the planning and control of work in process to the warehouse shipping and distribution of the finished product. Thomas f Wallance.
Material management is the management of the flow of materials into an organization to the point, where those material are converted into firm's end products.
http://www.sap-img.com/materials/sap-mm-configuration-tips.htm
Plant
An organization unit for dividing enterprise according to production, procurement, maintenance & material planning.
Storage Location
Warehouse Stock Location
Vendor Master
Contains details about all the vendors within a company.
Goods Receipts
Term for inventory management denoting a physical inward movement of goods or material.
Release Strategy
Plan define the release code with which a purchase requisition item, a complete purchase requisition or a complete external purchasing document must be release.
Appendix IV MM Tables
EINA EINE MAKT MARA Purchasing info record general data Purchasing info/organization record Material description General material data
MARC Plant data for material MARD Storage location data for material MAST RKPF T156 T024 Material to BOM link Document header Movement type Purchasing group MBEW Material consumption