PP Master Data:

● PP View’s of Material Master (MRP1, MRP2, MRP3, MRP4, and Work Scheduling View)
● Work Center
● Routing
● BOM
● Production Version
● Product cost collector (For Repetitive Only)

Structure of Material Master:

▪ The material master is a central data object in the SAP R/3 System.
▪ All the information required to manage products and equipment is stored in the material master
record.
▪ Each user department has its own view of the material master which permits easy access to and
maintenance of the data.

In Material Master data is defined @ Client, Plant, Storage location level.

Important tables MARA, MARC, MARD
Units of Measure:
Base Unit of measure will be assigned to every material master. This is referred to as stock keeping
unit or smallest unit of measure used by material. This field is used across all clients and impacts all
plants of any company code. This is defined @ table MARA

Alternative unit of measure: In addition to base unit of measure that system uses for stock keeping all
other concerned departments can use their own units of measure.

❑ Base unit of measure (Basic data 1)

❑ Order Unit (Purchasing)
❑ Sales Unit (Sales: Sales Org. Data1)
❑ Production Unit( Work Scheduling)

All other units of measure are converted to the base unit of measure. If there is no standard formula
to convert an alternative unit of measure, you must enter the conversion factor for units of measure in
material master conversion.

Create Material Master record for production planning material Sample Scenario:
Show how to set default:
❑ Industry sector
❑ Material Master Views
❑ Organizational levels

Default Views:
❑ Basic Data 1
❑ MRP1
❑ MRP2
❑ MRP3
❑ MRP4
❑ Work Scheduling
❑ Accounting 1
❑ Costing 1
Material master records are grouped together according to Industry sector and material type. Industry
sector defines which Industry specific data should appear in material master record. Material type will
define which process will be allowed for material like production, sales, purchasing and which further
will decide which functions allowed for material like BOM creation

MRP Groups and MRP Profiles will make data entry easy for Material Master

MRP Groups will be created in SPRO – Production – MRP – Master data – create MRP groups
(Assigned in MRP1).

Difference: MRP Groups and MRP profile: MRP Groups data will not appear in material master

MRP Profile: Production – Master data – Profile – MRP Profile (TCODE – MMD1)

Create Material Master Record for production planning material Sample Scenario:
View Field Data

Entry Screen T-F##

Material Type Finish Product
Basic Data 1 Material description Rotary Pump GR##
Base Unit of Measure PC
MRP1 MRP Type PD
MRP Controller 000
Lot Size EX
MRP2 In house production 1
Schedule margin key 001
MRP3 Strategy group 10
Accounting 1 Valuation class 7920 Finish Product
Price control S
Standard Price 10
Bill of Material:

Simple BOM, Multilevel BOM, Super BOM, BOM Material 2203, Plant 1000

BOM Categories:

Types of BOM:

● Single Level BOM

● Multi Level BOM
● Super BOM
● Alternative BOM
● Group BOM
BOM Material 2203, Plant 1000
Create a Bill of Material:

BOM Material 2203, Plant 1000

BOM Header:
Item Details:
Item Category in BOM:

Item Category: Each BOM item have an item category assigned to it. The item category defines the
features and functions of an item. Item category defines

❑ Whether it is required to enter material against item category in item

❑ Does item category supports qty based inventory management
❑ Are both plus, minus signs supported for item

Item Category Description

N Non-Stock Items

R Variable size item (Cutting Bar to size)

K Class Item (Variant configuration)

D Document Item (DMS)

L Stock Items

BOM Low Level Code:

When you create BOM, system automatically assigns a low level code to each material that MRP and
costing use. This low level code will be displayed in material master record.
The low level codes have the following key figures and uses:
● They are used in MRP to determine the sequence in which materials are planned.
● They are used by product costing

Concept of Group BOM:

Group BOM is a BOM which is without reference to any one plant. This is useful for example, when
engineer or designer is maintaining a BOM in the engineering or designing phase. To make group
BOM effective for individual plants, we use plant assignment function. TCODE CS07 will be used for
plant assignment.

ECM to change BOM:

Component replacements are common in your business. Therefore you need to use ECM to plan the
replacement of components well ahead of time. BOM reflects or triggers these changes @
appropriate date.
Benefits of ECM:
1. Monitoring and documenting changes
2. Planning and executing changes @ specific point in time (one can plan changes in advance)
3. Fulfill legal requirement
Steps to Use ECM:
● Create ECM no using TCODE CC01
● Use this no in TCODE CS02 to change BOM

Work Centers:

Work center is a place where operations take in manufacturing industry.

In SAP work center supports
● Scheduling,
● Capacity planning
● Costing.
Work centers are created plant specific and used in routings. It is necessary to assign cost center and
activity types in work center to use work center in production order.

Work Centers:

Work Centers Data:

PK05: Tcode to create production supply area
KANBAN: A Japanese manufacturing system in which the supply of components is regulated
through the use of an instruction card sent along the production line
Back flush: CO27 or MB1A MVT 261
Transition
Matrix: Normally used in process industry for calculating cleaning time

Standard Value Key: Standard Values represent the times to be measured when work center is used
in a task list for example machine time, labor time and setup time. These times are grouped together
using standard value key. This key determines which values are displayed for work center at the time
of operation confirmation.

Processing formula: operation time * operation qty / base qty / no of splits

Capacity Categories and Capacity Header:

A Major function of Work centers is to support capacity planning and scheduling. To plan these
functions, available capacity categories needs to be maintained in the work center. We can plan as
many as capacity categories under capacity tab of work center. But only first capacity category will be
considered while scheduling operation.
To plan individual capacities in more details, you can define capacity category header.

Capacity refers to the ability of Work Center to perform a specific task. One can distinguish between
different capacities using capacity category for example Labour capacity, machine capacity ETC. To
plan capacities in more detail one can assign individual capacities to each capacity. For example
capacity category is labour then assign 3 labours in capacity header. So if single labour is available
for 8 hours then total capacity is 8*3 = 24 hours,
Three types of capacities:

1. Work Center Capacity

2. Pooled capacity
3. Reference capacity

Pooled capacity: Cellular layout (Group layout) product layout, fixed layout, process layout
Capacity Header:

As of SAP R/3, Capacity data is a standalone item of master data known as capacity header. Each
work center can have one or more capacity headers to describe its work limits with regard to time.
For capacity headers to function, you need to assign them to a work center. In SAP ERP, capacities
are created without reference to work center, when a reference capacity or a pooled capacity is
modeled.
Pooled Capacity: You use pooled capacity to model manufacturing resources that will be shared by
many work centers. Pool capacity makes sense only when capacity is actually constraint.

Example: You have 5 production lines, each of which requires an operator for entire duration for
which machine runs. However you only have 4 operators in your resource pool. Therefore only 4
machines can run at any given time.

Here we can plan for pooled capacity.

Reference Capacity: Reference capacity will reduce our data entry efforts. For example Our work
Center is group of technicians and every one in group is assigned with pneumatic gun. Now we can
create capacity header (category machine: pneumatic gun) as reference capacity. This will reduce our
data entry efforts.
Create Work Center:

Formulae in Work Center SAP006 = SAP_02*SAP_09 / SAP_08

SAP_02 Machine time
SAP_09 Operation qty
SAP_08 Base qty
Very very important note: formula in work center calculates timing to be confirmed against operation
and not the timing which is entered by user @ confirmation of operation

PP Work Centre & Costing:

PP Master Data Task Lists:

Product Routing:

Task list: Routing (N), Reference operation set (S), Rate routing (R), Reference rate routing (M),
Master Recipe (2), Inspection plan (Q)

PP Routing Structure:
1. Operation details-about various timings for setup time, Machine time, Labor time
2. Trigger points – individual operation release will depend upon status of previous operation.
Example status of operation 10 CNF (Confirm) then only operation 20 will be released.
3. Material component allocation @ various operation + split allocation of components is possible.
4. All above data from routing will be referred in production order which will be basis for scheduling,
costing, capacity planning.

PP Routing Material Assignment and Component Assignment:

Material Allocation:
Create Routing for Specific material
Use Material assignment function in routing header
Use of Production Version

Create Simple Routing: Initial screen:

Operation Overview:

Components Allocation:

Sub operations: scheduling will happen only @ main operation. Scheduling not possible @ sub
operation level
While costing and capacity planning will happen @ sub operation level
So if costing and capacity planning is planned @ sub operation level, one should not have duplication
@ main operation level. Which should be avoided using proper control key
5> Also one cannot assign material components or PRT’s and Inspection characteristics @ sub
operation level.
Explain control key in routing.

Parallel and Alternative Sequence in Routing:

Parallel Sequence: example: In a chemical industry for analytical processes that occur parallel to the
main production process. Or any inspection process that occur parallel to production process.

Alternative Sequence: Example: we have similar kind of machines and to tackle with capacity
concerns we will have alternative sequences. Alternate sequences are linked to the standard
sequence which is the main sequence. The place where alternate sequence starts from the standard
sequence is called branch operation and again the place where it joins the standard sequence is
called the return operation.

Create simple Routing:

Create a simple routing for the production of material T-B** in plant 1000 that consists of the four
steps in the table below. Routing status should be creation phase, valid from today’s date with
production usage and for lot size from 1 to 100,000 pc. Use following primary operation data

Operation # Work Center Control Key Description

10 T-A** PP01 Lathe casing according to

drawing
20 T-B** PP01 Drill holes

30 T-C** PP01 Insert gasket

40 T-C** PP01 Inspect & deliver to stock

Use the following standard processing times
Activity OP 10 OP 20 OP 30 OP 40

Setup 10 Min 3 Min 0 Min 0 Min

Machine 30 Min 10 Min 0 Min 0 Min

Labor 30 Min 10 Min 5 Min 10 Min