Production Order Creation

PRODUCTION CYCLE LIFE

 Creation of production order
 Material availability
Material Forecastcheck Sales & Distribution
 Release the production order
 Good Issue
 PLANNING
Confirmation Demand Program Sales Reqmt
 Goods receipt
 TECO
Inventory Requirement
 Settlement (FICO)

Planned Order

Production Order Creation

Production Order Purchase Requistion

Order Processing Purchase Order

A production order defines :-

a) What material is to be processed;

Goods Receipt b) At which location; Goods Receipt
c) At what time;
d) How much work is required;
e) Which capacity is to process the order;
Order Settlement Invoice Receipt
f) How much production costs.

It also defines which resources are to be used and how the order costs are to be settled.
Goods Issue

Production orders are used to control production within a company and also to control cost
accounting.
Structure of a Production Order

a) Material a) Production
b) Quantity Dates
Production
Order
a) Operation
a) Costs
b) Capacities

Production Order Creation Methods :-

a) Creation of order from Stock/req MD04
b) Manually CO01/CO02/CO03
c) Collective Conversion COHV

Planned Independent Requirement MD61

Reservation(Display) MB23

Effects of creation of Production Order

When a production order is created the following actions are carried out :

 Routing is selected, its operations and sequences are transferred to the order;
 BOM are transferred to the order;
 Reservations are generated for BOM items held in stock;
 Planned costs for the order are generated;
 Capacity requirements are generated for the work centers;
 Purchase requisitions are generated for non-stock items and externally-processed
operations.

GENERAL
 Add quantity
  Scrap portion % if any
 Add end and start date

ASSIGNMENT

 MRP controller thru MRP 1

 Prodn. Supervisor is pulled from Order type
 Planned order no. is generated automatically as the prod order is converted thru planned
order.
 Reservation no. is created for every production order as per the BOM so that WM can block
the components against the reservation no. Reservation no. is required to collect goods
from the Warehouse by the SHOP FLOOR CONTROL people. Display Reservation MB23.

GOODS RECEIPT - A goods receipt in the Warehouse Management system (WMS)

is the physical inbound movement of goods or materials into the warehouse. It
is a goods movement that is used to post goods received from external vendors or
from in-plant production. All goods receipts result in an increase of stock in the
warehouse. Goods Receipt is accepting the fert/halb from production line
towards the storage location. MOVEMENT TYPE 101
 Stock type – Unrestricted,Quality inspection, block stock
 GR processing time – How much time is taken to move the product to the Warehouse.
 Tolerances -> Underdelivery, Overdelivery %.
 Receipt -> S.loc – Where to store the products, Batch – Specific location.

CONTROL

This is taken care by controlling department.

DATES/QUANTITIES

 Dates
 Quantities – How much delivered, planned order.

MASTER DATA

 Routing
 BOM

COLLECTIVE CONVERSION COHV – Mass Processing Production orders

 Tick Planned Order
 Material code
 Production Plant
 Mass Processing – Function - > e.g. confirmation, convert planned order,etc.
 Function Parameter - > Order type
  Execute

MATERIAL AVAILABILITY CHECK

 Prior to releasing a production order, you must ensure that all required materials are
available or not.
PRODUCTION ORDER RELEASE
After confirming all the required resources available for production, production orders can and must
be released.

Order release is the basis for further processing of the production order(material withdrwal and so
on). It can be released manually or automatically. We can release an individual operation, a whole
order, or several orders together. STATUS – REL.

Method of releasing the production order

 Manually(Order header/operation level) – Prod. Order can be released from Production
order header, click on release flag after checking material availability.
Go to operation overview, select individual material and release by clicking on bottom
release flag.
 Automatically(Production scheduling profile) – We need to go to SPRO Production->Shop
floor control-> Master data-> Define production scheduling profile. Check for plant for which
we are working, now select a profile for automatic release and activate. Now, go to material
master and open work scheduling view and add Prod. Scheduling profile (General Data tab)
code e.g. 000002.
 Collective Release -COHV- We can release production order from COHV. Go to COHV-> Add
material no. or production order no. in selection tab, go to mass processing tab and select
function, also select system status to exclude orders and execute. Select the required order
and click on mass processing and execute.

Order Creation

Machine Usage

Availability Check

Order Release

Print Material Goods

Processing Confirmation Settlement
documents Withdrawal Receipt
How to unrelease prod. order?
- Make change in routing or master data and save it.

- Go to prod. order header CO02, function -> Read pp master data.

- System will revert status from released(REL) to create(CRTD) as we can making changes to the data.

GOODS ISSUE
 Material staging is also called as Goods Issue.
 Material components must be staged for production in specific quantities and dates.
To do so, we have to go to the proposed warehouse with the material withdrawal
slip and withdraw the material.
 GI can be planned or unplanned. Planned – whatever compotent is reversed against
the prod. order. Unplanned – whenever we require extra compotents against a prod.
order.
 Material withdrawals can be posted automatically at the time of a
confirmation(backflushing).

SEQUENCE OF MATERIAL STAGGING

Determine Storage Material

Organise
material
Pos
stagging
t
Go
ods
Issu
e

Determination of Storage Location for reservation Item

Work Centre- Production Supply Area

Storage Location

BOM - Item

Material Master

Production Version

Batch Determination

No default Storage Location

 Backflush(Confirmation)
 Stock Determination(Goods
Issue Posting)
  In work center, we can maintain default storage location(production supply area), when it is
related to the Warehouse management or KANBAN process. CR02-> Basic data tab -> Supply
area.
 In BOM, select component, Status/Lng text tab -> Prod.storage loc.
 In Material master, MM02 (give component name)-> MRP2 view -> Procurement tab ->prod.
storage location.
 In production version, process industry.
 In batch determination
 In production order header, component overview we can add S.loc.

METHODS TO ISSUE GOODS

 MIGO – Select Goods issue, Order, Order no. Select OK and check. If its OK then, post
document.

 Auto(backflush) – Backflush can be done from

Routing (Comp Aloc) and select backflush;
material master (go to component, MRP2-> backflush, select any);
work center (basic data -> backflush check box)

 Picking CO27 – Input profile and prod. order no. and execute, then select all and go to mass
processing and execute or click on picking(add S.loc), save it and refresh.

Note :
 Goods issue will happen once confirmation is done.(backflush)
 We can issue goods individually through CO11N, provide order no. and then select operation
and save it to confirm.
 PRODUCTION ORDER CONFIRMATION CO11N/CO15

 Order header level CO15

 Order operation level CO11N
 Milestone confirmation

A confirmation documents the processing status of orders, operations, sub-operations and

individual capacities. It is an instrument for controlling orders.

With a confirmation you specify

 The quantity in an operation that was produced as yield, scrap and the quantity to be
reworked;
 How much was actually done;
 Which work center was used for the operation;
 Who carried out the operation.

Exact confirmation shortly after completion of an operation is essential for realistic

production planning and control.

Production order can be confirmed at header level as well as operation level.

CONFIRMATION OF PRODUCTION ORDER

 Order header level CO15

 Order operation level CO11N – provide order no., select operation and confirmation
individually. We can also confirm order, by only providing the order
 Milestone confirmation - The milestone confirmation is a special form of
confirmation, in which the confirmation of one operation causes (previous
operations) other operations or suboperations to be automatically confirmed at the
same time. Milestones are operations that have the corresponding indicator in the
control key (PP99).

GO TO CA02 -> Operation Overview -> Select work center and assign control key as
PP99(maintained milestone).

Order confirmation – CO11N -> order no., operation (select the operation which has
milestone control key assigned). It will automatically confirm the previous operations.

Note

We can also confirm the operation by using confirmation code which can be found in prod.
order operation overview. Select an individual operation, go to details and check
confirmation no. Use the no. in CO11N to confirm prod. order partially.
REQUIREMENT FOR PRODUCTION ORDER CONFIRMATION
PRODUCTION ORDER

Op.10 Op.20 Op.30

OPERATION

CONFIRMATION NUMBER OPERATION CONTROL KEY

OPERATION CONTROL KEY

CTRL CONFIRMATION

PP01 1 MILESTONE
NORMAL
NO CONFIRMATION
 GOODS RECEIPT
 When material has been produced, a goods receipt should be posted in the production
order. It makes no difference whether the material is a finished or semi-finished.
 Goods receipt from production can be posted either manually or automatically.
 Automatic goods receipt can be controlled specific to either operation(operation control
key) or material(production scheduling profile).
 If we choose control specific to material, the goods receipt is posted upon confirmation of
the last operation requiring confirmation.
 Order status – DLV(delivered)

Methods of Goods Receipt

 Manually MIGO/MB1C
 Automatic(Control key/PSP)

Control Key - Use milestone confirmation to automatically do goods receipt;

PSP - Go to spro -> production -> master data -> define psp -> select plant and psp then,
check for settings -> update psp in work scheduling(master data) -> confirm prod. order ->
go to goods movement and check storage, movement type-> save.

Effects of Goods Receipt Posting

 Stock quantity will increase.
 Account determination
 G/L accounts : Stock account, Plant activity
 Material, Accounting, Controlling Document – Go to Documented goods movement
 Transfer requirement WMS
 Goods receipt slip
 Messages

If Backflush is active in the MRP 2 tab, then, we don’t need to issue goods through MIGO
(261). Only confirmation is required through CO11N. And then, goods receipt is required for
the movement of finished product to the stock(101).