Assignment 3.1 Production Planning - Case Study

Mariano, Raquel C.
ACTCY41S2
Assignment 3.1 Production Planning - Case Study
Step 1: Change Material Master Record
DXTR3128
DXTR2128
DXTR1128
“I affirm that I have not given or received any unauthorized help on this assignment, and that this work
is my own.”
In this case study, the first step that we must do is to prepare a material master record for
demand planning by changing the MRP 3 and Forecast view. In order to do so, we used the Change
Material app.
Step 2: Change Routing
DXTR3128
DXTR2128
is my own.”
DXTR1128
In this step, I have learned how to change a routing for a finished good. I used the Change
Routing app to change the routing for DXTR3128, DXTR2128, and DXTR1128.
is my own.”
Step 3: Display Product Group
In this step, I used the Display Product Group app to show the product family of all the Deluxe
Touring Bikes.
Step 4: Create Sales and Operations Plan
is my own.”
In this step, I learned how to create a sales and operations plan for a product group. We based
the SOP on historical consumption values taken from a fixed period. In order to create a sales and
operations plan, I used the Create Sales and Operations Plan app.
Step 5: Transfer SOP to Demand Management
DXTR3128
is my own.”
DXTR2128
DXTR1128
is my own.”
Question: Note DXTR1### makes up 40%, DXTR2### makes up 30% and DXTR3### another 30% of the
production plan created in your Sales and Operations Plan. How is this derived?
Answer: This was derived from the data we provided in step 1, when we set out the production plan's
details.
In this step, I have learned on how to transfer the sales and operations plan that I have created
from the previous step to demand management. To break down the planning for the Deluxe Touring
Product Group into individual components, I utilized the Transfer SOP to Demand Management -
Transfer the Sales and Operations Plan to Demand Management app.
is my own.”
Step 6: Review Demand Management
DXTR3128
DXTR2128
is my own.”
DXTR1128
is my own.”
In this step, I used the Display PIRs app to check the requirements for the product group
(DXTR3128, DXTR2128, DXTR1128) to make sure that there are production requirements for the
individual production items.
Step 7: Run MPS with MRP
DXTR3128
is my own.”
DXTR2128
DXTR1128
is my own.”
In this step, I used the Schedule MRP Run - Run MPS with MRP app to create a sequence of
planned orders that meet the SOP and demand management standards.
Step 8: Review Stock/Requirements List
is my own.”
is my own.”
In this step, I learned how to review the stock/requirements list for deluxe touring bike (red)
DXTR3128. In able to do so, I used the SAP Fiori App Monitor Stock / Requirements List.
Step 9: Convert Planned Order into Production Order
DXTR3128
is my own.”
DXTR2128
is my own.”
DXTR1128
is my own.”
Question: Determine the status of your order by clicking on . What does this mean?
Answer: By clicking the change status icon, the user can see the status management information of a
product. It shows the status of the orders that have been made such as released, material committed,
and settlement rule created.
In this step, I have learned how to convert the production order from a planned order which is
created from the MPS/MRP operation by using the SAP Fiori App Monitor Stock / Requirements List. The
MPS run's specified scheduled orders are shown in the stock requirements list. When we transformed
the planned order to a production order, an availability check was automatically performed, and a
reserve was placed on the materials indicated in the bill of materials.
is my own.”
Step 10: Receive Goods in Inventory
For this step, I used the Post Goods Movement app to gather enough goods in Dallas storage
locations to begin the production process.
Step 11: Issue Goods to Production Order
is my own.”
In this step, I used the Post Goods Movement app to issue the required components in an exact
quantity to the production order.
Step 12: Review Production Order Status
is my own.”
In this step, I learned how to review the current production order in light of its present state. I
used the Display Production Order app to display the production order.
Step 13: Confirm Production Completion
In this step, I used the Enter Production order Confirmation app to confirm the
completion of the production order.
is my own.”
Step 14: Receive Goods from Production Order
In this step, I have learned that I must check the quantity proposed against the quantity
specified in the production order and the quantity specified during confirmation to check if there are
any discrepancies. If there are no discrepancies, we can post a goods receipt from production order by
using the Post Goods Movement app.
Step 15: Review Costs Assigned to Production Order
is my own.”
Question: Now that the finished products have been received in the Inventory, the Manufacturing
Output Settlement Variance has been added. How is this figure calculated by the system?
Answer: The system calculated the variance by calculating the difference between the Target and Actual
Costs.
For this step, I used the Display Production Order app to review the costs associated with the
production order.
Step 16: Settle Costs of Production Order
is my own.”
is my own.”
Question: The manufacturing output settlement is higher than the consumption expenses for raw
materials and semi-finished goods? Review and explain the expenses and the settlements of your
production order in detail. How is the balance derived?
Answer: Finished goods costs are higher than materials and semi-finished goods because they contain
all costs spent during the manufacturing process. The raw materials and labor costs, as depicted in the
pictures, are clearly included in the finished goods.
For the last step, I used the Actual Settlement app to settle the costs of the production order..
is my own.”
Reflection:
I learned a lot about the integrated production planning and execution process in this case
study, which helped me gain a better grasp of each process step and the underlying SAP functionality. It
taught us to plan and process a complete manufacturing cycle by creating consumption values for a
finished product. Changes in the material master record of the bikes must be maintained before you can
start forecasting demand for your touring bike product group. I started this case study by creating a
material master record for demand planning. For me to be able to plan Global Bike's Deluxe Touring
Bikes, I updated the MRP 3 and Forecasting views of this record. Sir taught us to use November 2020 to
October 2021 as our historical data for the three deluxe touring bikes having random corrected values
ranging from 349 to 850. I also changed the red Deluxe Touring Bike routing to assign the components in
their respective individual operations. Then, I prepared a 12-month sales and operations strategy for the
Deluxe Touring Bikes. An SOP, I've learned, is a planning tool for consolidating data to estimate future
sales and production levels, as well as the procedures required to satisfy those objectives. Following
every step in the manual, I was able to complete the production planning process, in which the
production was confirmed to be complete, the finished goods were received into the warehouse, and
the costs assigned to the production order were assessed.
In comparison to the two prior case studies, I consider this one is far more complicated. The
case study needs us to complete some of the steps for the three deluxe touring bikes, the DXTR3128,
DXTR2128, and DXTR1128. Having to complete one step for three products is considerably more
difficult, and we must be cautious because if we make a mistake, we must correct it three times.
Furthermore, since some of the data from the case study that we must input has been changed by our
instructor, we must always be aware of and double-check the data we are inputting. Finally, I was
grateful that Sir demonstrated how to accomplish the first step and gave us what we needed to know
about the complex steps. As a result, I was able to complete everything perfectly and without making
any errors.
Overall, despite the fact that this case study is more complex than the others, I enjoyed doing it
and gained a lot from it.
is my own.”

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Mariano, Raquel C.

Assignment 3.1 Production Planning - Case Study

Step 1: Change Material Master Record

Step 2: Change Routing

Step 4: Create Sales and Operations Plan

Step 5: Transfer SOP to Demand Management

Step 7: Run MPS with MRP

Step 8: Review Stock/Requirements List

Step 9: Convert Planned Order into Production Order

Step 11: Issue Goods to Production Order

Step 12: Review Production Order Status

Step 13: Confirm Production Completion

Step 15: Review Costs Assigned to Production Order

Step 16: Settle Costs of Production Order

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