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Sample Sap PP Business Blueprint
Sample Sap PP Business Blueprint
System
Doc Id: Business_Blueprint_PP_1.0
BUSINESS BLUEPRINT
PP MODULE
MODULES TO BE IMPLEMENTED
CONTENTS
MODULE
NO. Page numbers
No. Topic
Start
1. PURPOSE 1 PP MODULE 04
2 2
PRE REQUISITIES QM MODULE 04
3 3
ORGANIZATIONAL STRUCTURE 04
SD MODULE
4 MATERIAL MASTER
4 FI MODULE 07
9 PRODUCTION PLANNING 25
10 PRODUCTION PROCESS EXECUTION 28
12 PP STANDARD REPORT 32
13 ANNEXTURE 1 33
BUSINESS PROCESS OWNER’S ACCEPTANCE SIGN
14 35
OFF (BBP)
1) PURPOSE:-
This document describes the proposed blue print for SAP Implementation at Kay Bouvet
Engineering Pvt. Ltd. (KBEPL). It outlines all the business processes associated within
the scope of implementation. The intent of the document is to define the TO-BE model
for the process for which an AS-IS study was conducted during the knowledge gathering
phase.
The production planning within SAP (PP) would encompass all activities relating to
Material Requirement Planning (MRP) and processing through production. It would
include master data maintenance and the controlling transactions needed for the same.
2) PRE- REQUISITIES:-
We are required to have essential master and organizational data to perform the activity,
such as the data reflects the organization structure of K.B.E.P.L. and master data that
suits its operational focus.
Following are the lists of data required.
Organizational Structure
Material Master
BOM
Work center.*9369*-3
Routing
3) ORGANIZATIONAL STRUCTURE:-
KAY GROUP
CLIENT
PRODUCTION PLANT
B0 KB01 KB02 KB03
STORAGE LOCATION SL 01 SL 02 SL 03
EQUIPMENT EQ EQ EQ
COMPANY
For Production Planning Module, Plant and Storage Locations are the one’s which are
relevant. Detailed Organization Structure would be covered in more detail in FI (Finance)
Module, MM (Material Management) Module and SD (Sales and Distribution) Module.
COMPANY CODE
PLANT
An Address
A Language
A Country Assignment
A Work Day Calendar
A plant is assigned to company.
Purchasing
Organization and sales organizations are assigned to plants.
STORAGE LOCATION
4) MATERIAL MASTER:-
The material maser contains all the information of the material that a company
procures produces, stores and sells.
The entire production process outlined for KBEPL can be described as follows:
III)Production Execution.
IV) Dispatching.
NO YES
ME21N
PP
CO01
SD Issue to Production
Production
MM Dept.
MM
QM QA11
Quality Check
MB1C
Goods Ready
for Dispatch
VL01N
Delivery to
Sales Order
4 A) BILL OF MATERIAL
AS-IS AT KBEPL
Every component either a finish good or semi-finish goods will have complex BOM.
The Scope of the document is restricted to Creation, Change and Display of Bill of
materials for Finished Materials, Semi finished Materials.
BOM’s are used in their different forms in various situations where a finished
product is produced from several components parts or materials. The data stored
in the Bill of materials serves as basis for production planning activities such as
In material requirements planning (MRP) Bills of Material are used to
calculate procurement or in-house production quantities for materials.
Date of issue : Issue 1, Template Version : 1.0 Page 8 of 35
Reviewed by: Kishor Joshi Approved by : Atul Joshi
Confidentiality Clause: Adroit InfoTech reserves the copyright on all material and ideas in this document. No material should be
reproduced in any form (electronic or written), in part or whole without the express consent of Adroit InfoTech. The contents of this
document are strictly confidential and should not be shared with any other company without the prior permission of Adroit InfoTech.
Quality Management
System
Doc Id: Business_Blueprint_PP_1.0
In Production orders Bills of material are used for planning the issue of
materials.
During Production order confirmation, the BOM is used to update finished
goods stock of the parent material and back flush actual consumption of
component material.
Stores personnel use the BOM goods issue of components for in-house or
sub-contracting applications.
Product costing uses the BOM to calculate the costs of materials required for
a specific product.
ASSEMBLY
Single-Level BOM
Single-Level BOM
Child Part
In KBEPL, BOM is having only one usage, i.e. it would be production BOM.
Every component either a Finished Good or a Semi Finished Good will have a
BOM.
BOM will have each component that goes into product and for which production
and planning dept. wants to plan.
MRP will consider stock of raw material while net requirement calculation and MRP
controller decide whether the raw material can procure from outside or to crate
purchase order for the same.
REPORTING CONSIDERATIONS
B) WORK CENTER:-
AS-IS AT KBEPL
Labor and Machines are work centers. Capacity utilization of all machines is 100%
In all Plant shift is for 8.00 Hrs.
The creation, Change and Display of Work Centers will be done plant wise.
All machines and labors will be created in SAP as work centers masters.
These masters will have the capacity availability details in terms of number of
shifts, shift sequences, work breaks, and the cost center data.
Following types of Work Centers would be created:
Scheduling: - Operation times and formulas entered in the work center, so that
the duration of an operation con be calculated.
Costing: - Required costing formulas are entered in the work center, so that the
costs of an operation can be calculated. A work center is also assigned to a cost
center.
The available capacity will be taken from the work centre in which is maintained
shift schedule and shift sequence.
UNIT I
MCMC
A OA O
C C
H H
I I
N N
E E
N N
A A
M M
E E
( (
M F
A A
C B
H R
I I
N C
E A
T
S I
H O
O N
P
) S
H
O
P
)
H 1 W1
o He W
r l
i d
z i
o n
n g
t
UNIT II
Machine,Imported02
3. Stand Drill,01 2SDRIL01 3. Welding Rectifier,02 2WRECT02
UNIT III
DIVISION I
DIVISION II
REPORTING CONSIDERATIONS
C) ROUTING:-
AS-IS AT KBEPL
For manufacturing one component, various machines are used; multiple work center
assignments are there.
While creating the production order user can select the routing by selecting the
production version which contains that routing number.
For work scheduling which uses routing as a basis for operation planning and production
control. The routing thus answers the questions like:
Where the production is done?
How long it will take?
What are the materials and tooling required?
REPORTING CONSIDERATIONS
CA51 – List of Routings for product/plant
CA60 – Display Changes
CA80 – Work Center Where Used List
DEFINITION
A cost center is part of an organization that does not produce direct profit and adds to
the cost of running a company.
Cost Center
Costs
Formula
Formula
ss
EXAMPLE
Costs
SET= 1 Hr.* 100 Rs./Hr.=100 Rs.
LAB= 2 pcs.*2 Hr.* 50 Rs./Hr.=200 Rs.
MAC=2 Pcs.*3 Hr.*25 Rs./Hr.=150 Rs.
ACTIVITY TYPE
A unit in a controlling area that classifies the activities performed in a cost center.
Activity types in production cost centers are machine hours or finished units.
Work centers only have an available capacity on working days. In order to
calculate the available capacity, a factory calendar has to be maintained, in which
the working days are defined.
You define the work start, work finish and break times for all work centers in a
shift definition.
In shift sequences, you maintain the sequence of individual shift definitions for all
shift sequences.
The cost center that you want to assign the work center must exist and belong to
the same controlling area as the work center plant.
At KBEPL we would be defining 3 Activity Types: 1) Machine, 2) Setup, 3) Labour
Schedule from the customer is on the basis of planning for the Production.
At times they also receive Customer Order instead of the Schedule; hence they
are using that Customer Order as a reference for production planning.
Production schedules will be created by the system based on the base of PIR
input in the demand management.
Requirements would be entered in Demand Management. The demand
management is the process of entering the requirements of a material that needs
to be produced for future sales.
Customer orders received will be entered in the Sales Module and the data
transfer to Production Planning module is done by the system.
The requirements will be entered for a finished Product. The system considers the
requirements entered in the demand management as the requirement quantities.
Based on the strategy selected for a material, the system considers other
elements like Sales order, stock etc before arriving at the net quantity that needs
to be produced.
Parameters like Plant, Requirements type (which will be based on the strategy),
For Net requirement planning (LSF), planning period etc. will be made as default
for each user who creates the demand.
REPORTING CONSIDERATIONS
They will collect the norms from Quality Management and the same will be
circulated to Material management with order quantity and having time to time
follow up with stores people as per planning.\
In specific cases where the dependent material schedule finish date falls later
than the start date of its higher level material, the system will show exception
messages at the MRP list of the dependent material The user shall manually
reschedule the higher-level material production to suit the schedule of the
dependent material. All materials will be grouped as per the department (as per
MRP controller) using the specific material so as to enable each group to view
stock situations of materials relevant to their department. However, MRP shall be
run at the material level or Plant level only.
The systems shall assign number ranges for planned orders at each plant. If
Minimum and Maximum lot size specifies for material in the material master and
the system will create planned order quantities within the above range. In case
where the net requirement exceeds the maximum lot size, the system will create
multiple planned orders.
The possible values which are envisaged to be used in MRP run are:
Processing key-NETCH
Create purchase requisition-1,2,3
Delivery schedules-Schedule lines
Create MRP list-MRP list
Planning mode-Normal mode
Scheduling-Lead time scheduling.
The net requirements calculation is carried out in MRP in the planning run after the
planning file check and at plant level. The system checks whether it is possible to cover
requirements with the plant stock and fixed receipts already planned. In the case of a
shortage the system creates a procurement proposal.
7) MRP CONTROLLER:-
8) CAPACITY PLANNING:-
AS-IS AT KBEPL
The scope of this document is to check the capacity load on each work center and
according to the Production planning.
CAPACITY EVALUATION
In the capacity evaluation, available capacity and capacity requirements are
determined and compared with each other in lists or graphics.
CAPACITY LEVELING
Requirements given in
Date of issue :
demandIssue 1, Template Version : 1.0
management Page 23 of 35
Reviewed by: Kishor Joshi for finished materials
Approved by : Atul Joshi
Confidentiality Clause: Adroit InfoTech reserves the copyright on all material and ideas in this document. No material should be
reproduced in any form (electronic or written), in part or whole without the express consent of Adroit InfoTech. The contents of this
document are strictly confidential and should not be shared with any other company without the prior permission of Adroit InfoTech.
Quality Management
System
Doc Id: Business_Blueprint_PP_1.0
MRP PLANNING
RUN (PLANT LEVEL)
REPORTING CONSIDERATIONS
9) PRODUCTION PLANNING:-
AS-IS AT KBEPL
For the machining/fabrication after receiving the material will be reserved for the
processing (as per schedule) through the manual created production order (Work
Order).After that user will book the actual production of that material against that
production order.
Order from on the basis of detailed planning and shop floor execution. All the
intermediates and final product manufacturing will have an order to control its execution.
The document covers details about following for orders all leve
Order creation(Conversion from planned Order or manual creation)
Lot Size (Production Planned Quantity)
Selection of Order type (Separate Order Types for each Plant)
Selection of production version (Different Production version for different Routing)
Order Release (Approval for Production Order Execution)
Inspections lot generation
Material availability check
Using the order it is expected to control the above said process in shop floor. The Major
expectations from having an order would be
Scheduling
Capacity requirements analysis
Material Reservation
Controlling goods movements
Booking quantities produced and activities used
Tracking the cost
The Scope of the document is to create the production orders for Semi finished and
finished products
ORDER TYPES
Production order with specific order type will be created for each business
process, as per requirement. For each Production Plant, separate Order types will
be created. Each Order Types will have the different number range.
Production Order of forming Material will be created manually. For rework this
also separate order type will be created to differentiate it with other orders.
Planned
Planned order
order
Production
Production order
order w.r.t.material/Production
w.r.t.material/Production
from
from R/3
R/3 MRP
MRP Scheduler/Plant
Scheduler/Plant
Maintain
production
B.O.M. If
If no
no production
production
version
version (Valid
(Valid BOM,
BOM,
Routing
Routing
automatically
automatically copied
copied
to
to production
production order)
order)
Maintain Routing
Master Data i.e.
Operation time in
each operation,
components.
Yes
REPORTING CONSIDERATIONS
Execution of each production stage is controlled by its orders. The Step involved in
Production order execution are listed below
Goods issue
Production Execution start
Item consumption entry
Confirmation
Order settlement
Technically Completion (TECO)
PROCESS FLOW
GENERAL EXPLANATION
GOODS ISSUE
Before you can start producing a material, all the necessary material components have
to be issued from stock via goods issues. The delivery to stock of the manufactured
material is documented in the system via a goods receipt. Both types of goods
movement trigger the following transactions in the system:
A material document is created to record the goods movement.
The stock quantities of the material are updated.
The stock values are updated in the material master record and the
stock/consumption accounts are updated.
ORDER CONFIRMATION
The quantity in an operation that was produced as yield, scrap and the quantity
to be reworked
How much work was actually done
ORDER SETTLEMENT
When a production order is settled, the actual costs incurred for the order are settled to
one or more receiver cost-objects (for example, to the account for the material
produced).
Logistics General
Production Planning
Master Data
Material
Create Material
Change Material
Display Material
Bill of Material
Date of issue : Issue 1, Template Version : 1.0 Page 30 of 35
Reviewed by: Kishor Joshi Approved by : Atul Joshi
Confidentiality Clause: Adroit InfoTech reserves the copyright on all material and ideas in this document. No material should be
reproduced in any form (electronic or written), in part or whole without the express consent of Adroit InfoTech. The contents of this
document are strictly confidential and should not be shared with any other company without the prior permission of Adroit InfoTech.
Quality Management
System
Doc Id: Business_Blueprint_PP_1.0
Create BOM
Change BOM
Display BOM
Work Center
Create Work Center
Change Work Center
Display Work Center
Routing
Create Routing
Change Routing
Display Routing
MRP
MRP Run
Total MRP
Single item Multiple Level
MRP List
Stock Requirement List.
Planned Order
Individual conversion to
production order
Collective conversion
production order.
Production
Order
Production Order
Create
Change
Release
Order
Confirmation
Production
Confirmation
Partial Confirmation
Final Confirmation
TECO-Completed
Manage
ment
Productio Require Production MD61 D/C MRP Controller SAP
n customer Schedules will
Planning order be created
including
drawing.
MRP Run Material MD02 D/C MRP Controller SAP
Availability
(either
procured or
produced)
Capacity Check the Weekly CM01 D/C MRP Controller SAP
Planning capacity preparation of
load on plan on the
each basis of
machine. monthly plan
for each
machine
Productio Sales order Actual CO01 D/C MRP Controller SAP
n/Work production of
order that material
creation against that
production
order.
The Business Blue print (BBP) proposed by Business Process Consultant based on the
information given by KBEPL representative in the ‘As Is’ workshops conducted. The
proposed solution covers all the existing business requirement of KBEPL developed based
on best practice functionalities supported by SAP. This document will be the base for
configuring SAP for Production system.
INFORMATION APPROVED BY