Organizational and Master Data

Business Process for Manufacturing Planning and Execution

Reporting and Analysis

Sales Info System



Sales & Oper. Planning

Demand Mgmt Order Settlement

MPS/MRP Material planning Manufacturing Execution


Planning Process

Execution Process

Requirement from sales/marketing
Production Planning Check Availability Components Capacity no no Purchasing yes yes Run Schedule Qtys Sch & Cap Levelling


Shift dates / Provide Addl. capacities

Receipt of Fin Goods In Stores Backflushing

Mfg. Execution

Requirement from sales/marketing
Production Planning Check Availability Components Capacity no no Purchasing yes yes Production Order Sch & Cap Levelling


Shift dates / Provide Addl. capacities

Receipt of Fin Goods In Stores Production Confirmation

Mfg. Execution

COMPONENTS Sales Info System Information contains total sales orders already obtained, incoming sales orders, pending sales orders – product wise, customer wise, region wise.
Forecasting Based on the past history of consumption, a forecast of the sales figures for a product can be made. Future projections are made using one of the Statistical forecasting methods.

CO/PA Projections will be based on the company’s future projection of costing and profitability analysis. Sales & Operations Planning Higher level planning i.e.overall planning at company level Yearly/Half yearly/Quarterly Planning Demand Management Management of Requirements Requirements can be from sales forecasts, sales orders,etc.

MPS Planning of items that greatly influence the company’s profits or consume critical resources/dominate production processes. After the production plan of these critical items are firmed up, the planning of other components are taken up.
MRP This is the total planning of all the components taking into consideration the existing requirements and stocks. Creation of purchase requisitions, production orders,etc. Final step in the planning process.

MANUFACTURING EXECUTION Discrete Manufacturing Production orders are released Materials are issued Completion confirmations are performed Goods are received into stock Repetitive Manufacturing Run Schedule quantities are viewed Quantities are confirmed by Backflushing Goods are received into stock

ORDER SETTLEMENT Costs accrued to an order are debited to one or several allocation receivers belonging to financial or managerial accounting.

STANDARD PRODUCTION PLANNING REPORTS Stock/Requirements List Lists the latest stock/requirement position of a material in the plant i.e. planned orders, production orders,etc. Production Plan This report lists the monthly production plans – material and plant wise. Orders This report lists the orders pending/completed for a material material wise or work center wise..

Consumption Lists the consumption of a material for the period in question. Quantity produced This report lists the quantity of the material produced during the Period in question. Work center Loads This report lists the available capacities, required capacities, remaining available capacities and %load for the work center.

Missing parts Lists the missing parts that are required for the production of a material. Backlogs Lists the backlog of the load at a work center for the period in question.

Production Planning Basic Data
Routings Materials Work Centers

Production Facilities

PP Basic Data

Production Resources/Tools

Inspection Plans Bills of Material


SAP R/3 Integration Model
Sales Order Shipment Credit Limit Material Availability Check

Sales & Distribution

Transfer of Requirements Goods Issue to SO

Sales Forecast / Plan

Production Planning
Production Cost

Production Order Production Order Receipt

Materials Management
Purchase Order Invoice Receipt Goods Receipt

Accounting Document

Receivable Accounts / Cash Receipt

Finance & Controlling

Accounts Payable


Organizational Structures in R/3
Cost accounting External logistics Accounts Internal logistics (MRP/Production) Inventory management Storage locations/batches/special stocks

Group Controlling areas Sales organizations Company codes Valuation areas Plants

Purchasing organizations

Material Master Data
Material Master

General Data
Data applicable throughout the client e.g. Material number Description Units of measure Weight Volume Product hierarchy

Sales Specific Data
Data dependent on sales organization and distribution channel e.g. Delivering plant Sales text Sales units Shipping data

Plant Specific Data
Data relevant for planning and production e.g. MRP profile Production costs Planning data Valuation

St. Loc. Specific Data
Data referring to storage and inventory management e.g. Quantities Special stock Warehouse attributes


Material Types in the Standard SAP
Material Type

Service Spare Part Finished Product Semi-finished Product Trading Good Operating Supply Empty Containers Non stock Item Raw Material Packaging Competitor Product Production Resources/ Tools

Master Data Views

Master data is a key piece of information in the system Master data can be seen from a number of views Each view can correspond to an SAP module Each view has a number of information screens Each view belongs to an org unit within the business One product may have multiple plant and sales views, one for each plant or sales area


Engineering Design


Product Data
Production Stock


Examples of How Data is Used
Controls which General Ledger Account is updated
Finance Engineering Design

Material description used in reporting Texts copied to purchase orders

Controls customer ordering rules for material


Product Data
Production Stock


Data used to calculate MRP lead times

Maintains stock levels by plant, storage location, and batch

Bills of Material
Simple BOM Variant BOM Multiple BOM

Simple BOM representing single material

Similar materials represented by variants on one BOM

BOM representing a material which can be made up of multiple compositions e.g. different components and quantities

Bill of Material Validity
 Area of Validity – The same Bill of Material can be allocated to several plants. Before you can allocate the BOM to a different plant, the material must exist at the new plant, the unit of issue on the BOM item must be the same.  Validity Period (Valid from/to dates)  Becomes effective with the valid from date  The validity date is determined by the system automatically to be either the next effective from date, or 12/31/1999. A A

B C B D X----------------------------------------------------------->>>> from 1/1/95 from 12/31/95 to 12/30/95 to 12/31/99

BOM Structure
BOM Header
Plant Assignment Validity Period Release Indicator

Item 10 Item 20 Item 30

Stock Items Non-stock Items Variable Size Items Document Items Text Items

Sub Item 10 Sub Item 20

Additional component details
e.g. installation points for components

Bill of Material Glossary
BOM Category – categorizes BOM’s to represent different objects; for example: • Material BOM -- structure of products manufactured • Equipment BOM -- structure of equipment for plant maintenance • Document BOM -- structure of documents such as drawings (3.0) •

• BOM Group – is a collective number for all BOM’s in a group which allows for one
or several similar products to be described under one number. All Alternatives of a multiple Bill of Material • All variants of a variant Bill of Material • • BOM Usage – special view of the BOM which represents a specific area of the company in which the BOM is used; for example, Engineering, Production, Costing, Sales, Plant Maintenance

The BOM Usage allows different views to exist without
separate BOM’s for each usage.

Bill of Material Glossary (cont.)
Technical Type – the system distinguishes BOM’s according to whether they • represent product variants or production alternatives. If you create a variant

for the BOM,the system marks it as a Variant Bill . If there is more than one
alternative for a material, the system marks the BOM as a Multiple Bill.

Validity – Bills of Material are valid over an area and effectivity period.  Area of Validity -- identifies which plants the BOM has been allocated to  Validity Period -- identifies the from and to effectivity dates.  The default to date is 12/31/9999

Bill of Material Glossary (cont.)
 Item

Category – When you enter a new Bill of Material item, an item category must be assigned. It has important control functions such as: •
    

Screen selection Specific processing, such as material number required, negative values supported. The Item Category cannot be changed once set. It must be deleted and re-added. Sizes are maintained for variable-size items Item categories include: •tock Items -- material in stock as a component S Non-stock Items -- material not stocked - with or without a material number • Variable-size -- system calculates the quantity required using formulas • PM Structure Item -- used with plant maintenance equipment • Document Item -- used with Document BOM’s •

•ub-Items – are typically used to represent different installation points for partial S quantities of an item. • In assembling resistors on a printed circuit board, the installation points are described. • There is no logic related to sub-items

Work Centers
Cost Center

Capacity Requirements Planning

Assembly Line

Work Centers



Production Line

Scheduling, Execution Times

Work Centers and Routings
Operation 10

Work Center W1

Cost Center 100

Work Center W1

Operation 20

Cost Center 100

Work Center W2

Operation 30

Cost Center Centre 200

Work Center Category
 

Work centers are allocated to different work center categories The work center category is used to control the field and screen selection for work centers during work center maintenance. Work Center Category Statistical Work center Production Work Center Screen View Basic Data Basic Data Default Values Capacity Values Scheduling Cost Center Assignment

Cost Center Assignment to Work Center for Operation Costing
Cost Center
Set Up $70.00 Mach $60.00 Labor $80.00 Overhead $70.00

Activity Rates
Set Up (SET) Machine (MACH) Labor (LAB)

Work Center with Activities during production

Routing with standard values
Oper 0010 Oper 0020 Oper 0030 Oper 0040

Use of Formulas in Work Centers
Work Center Schedule Work Center Capacity

Work Center Formulas

Set up Formula Machine Time Formula Teardown Formula

Operation Std Values
Set up 1.0 hrs Machine 5.5 hrs Teardown .5 hrs

Routing with standard values
Oper 0010 Oper 0020 Oper 0030

Oper 0040

Available Capacity at a Work Center
1 hr Break Time 1 hr 8 hrs 7 hrs 6 hrs Planned Downtime

Working Hours

Working Hours less Breaks

Productive Working Hours

Routing Structure Views

Operation 10

Operation 20

Operation 30

Process Resource Tool (PRT)

Materials Components BOM

Work Centre: PP-ASSEM

Control Key: - Time Tkts - Costing

Operation Text: Pre-assemble frame

Std Values: Lab:10 mins Mach:10 mins

Production Master Data
Material Type

BOM Groups

Materials and PRTs
Routing Groups Cost Centers
W/C Category

Item Category

Bills of Material

Components Allocated to Operations


Work Centers

Operation types
(Main) operation
Sub-operation  HierarchyCosting  Completion confirmations  Scheduling always takes place on the (main) operation level


The control key defines whether completion confirmations and costing are carried out on the (main) operation level, or on the sub-operation level. Indicator: group operation combined operation sub-operation level (main) operation

Operation / Sub-operation
Schedule at Operation Level

Operation 0010

Capacity Planning & Costing possible at Sub Operation Level Level Sub Operation 0010 / 10 at Work Center A1 Sub Operation 0010 / 20 at Work Center A2 Sub Operation 0010 / 30 at Work Center A3

Operation 0020

Useful when processing for operation 0010 occurs over multiple work centers

Material Allocation
BOM Routing

Op. 10 Op. 20 Op. 30

Op. 10 Op. 30

Material-Routing Allocations
Material 1 01

Routing Group

Routing Group Counter

2 2

01 02

1 2 3

3 1 1

 

A routing alterative can be allocated to several materials. A material in a plant can be allocated to several alternatives.

Routing Default Values
Material Master Routing Work Center

Base Unit of Measure Planner Group Short Text

Control Key Standard Values Activities Standards Text Key HR data

Oper 0010 Oper 0020

External Processing
Purch Reqn Purch Ord Vendor Proc Goods Rec
At goods receipt, the operation is confirmed
Routing data copied to order including quantities and dates

Purchasing creates P.O.

Oper 0040 Oper 0050

Operation Lead Time
Float Before Oper 0010 Oper 0020 Oper 0030 Float After

Operation Lead Time Queue | Setup | Process | Teardown | Wait | Move Interoperation Time Execution Time Interoperation Time

Routing Operation Sequences
Routing represents a standard sequence defining production procedure Routing includes processes which can be performed simultaneously to achieve time efficiencies



Routing includes processes which can/must be split across a number of work centers


Routing defines process where one operation is to overlap with the following operation

The Planning Concept in SAP
Planned Independent Requirements Offset

Customer Independent Requirements

Demand ie Requirements

Sales Plan

Requirements (Orders) from SD Module

Keep Balanced
Production Plan Order Proposals Planned Orders Production Orders Purchase Requisitions

Order proposals, planned orders etc are created and adjusted by running the MRP or MPS programs.

Sales and Operations Planning Functions
 SOP specifies sales quantities for the long and intermediate term to roughly assess the feasibility of sales and operation plans  Sales and Operations Planning at the Product Group or F/G level  Materials may be planned together in Product Groups

 Sales quantities are determined for future periods
 Production quantities are then determined on the basis of sales

Sales and Operations Planning – Planning Levels
 MRP II is concerned with integrating individual plans within a supply chain  Profitability Analysis – Revenue and Sales Plans  Sales and Operations Planning – Sales and Production Plans  Master Planning – Demand Program and Master Schedule  Material Requirements Planning – Dependent Requirements and Procurement Plan

Sales and Operations Planning – Steps
 Step 1 – Sales Planning of Future Sales Quantities  Copy in from Sales Information System or Profitability Analysis  Automatic forecast based on historical factors  Manual entry of sales quantities  Step 2 – Production Planning  Synchronize production plan with sales plan  Stock level equal to zero

 Specify a target days supply by period
 Specify a target stock level by period  Enter planning data manually

Sales and Operations Planning – Steps

 Step 3 – Disaggregation of Planning Values  Determine the sales and production quantities of product group members  Modify the disaggregated sales planning data and create a production plan for each member  Step 4 – Transfer of Planning Values to MRP  Pass the planned sales and production quantities as independent requirements to demand management  If product group data is transferred, the system automatically disaggregates the planning data to the finished product level

Sales and Operations Planning – Product Groups
 A Product Group brings together materials according to some criteria such as similar type or manufacturing process.  Link material master data with product groups  Materials and product groups can be members of more than one group for different planning scenarios  Assignment of members from different plants to the same product group for cross-plant planning  A product group may have a different unit of measure from its members e.g. aggregate in cartons vs pieces  Proportional factors for disaggregation - how the product group quantitiy is distributed to its members

 Supports production versions for a material or group
 Supports multi-level product group hierarchy  Graphical support of one or more levels

Sales and Operations Planning – The Planning Table

 Sales and Production Planning is carried out using a Planning Table which

shows the stock level that results from the sales and operations planning for
both materials and product groups  The Planning Table is divided into:  Sales Quantities  Production Quantities  Target Day’s Supply and Target Stock Levels

Sales and Operations Planning – Creating a Sales Plan
 Manual Data Entry and Distribution Functions  Entered directly into the Planning Table as a % or qty  Copying Data from Sales Information System  Planned order, invoiced or delivery quantities  The planning data is aggregated across all materials in the group  Copying from Profitability Analysis  Quantity and performance measures  Copying the Forecast  Aggregates the consumption values for all the materials in the product group

Sales and Operations Planning – Creating a Production Plan

 Determine the quantities to produce to meet the sales plan  Synchronize to the Sales Plan – the system copies the sales quantities into the

production quantities
 Zero Stock Level – Use existing stock to cover sales quantities. When used up, production quantities will synchronize with the sales quantities  Target Stock Level – The system determines production quantities based on sales and target stock levels  Target Days Supply – Coverage is expressed in days

Sales and Operations Planning – Disaggregation
 Functionality is based on proportionality factors of product group members  The result of disaggregation is the sales plan of its members

 Strategy parameters are used to create the production plan from the sales plan
on to a product group member  Disaggregation can be carried out for the product group or for selected members only

Sales and Operations Planning – Transferring Data to Demand Management

 Transfer a single-level product group (multiple) or individual material (single)  Independent Requirements Parameters  Specify Requirements Type  Version Number  Limit scope of the time period

Master Planning

 Demand Management  Planning and Consumption Strategies

 Specification of Requirement Quantities and Delivery Dates
 Master Production Scheduling  Planning for Master Schedule Items  Planning Time Fence  Interactive MPS

Sales and Operations Planning
Copy from Sales Plan Copy from Prodn Plan Copy from Forecast Copy from Orig Plan

Manual Planned Independent Requirements

Demand Management “Demand Program”

Sales Demand from Sales Orders


Planning Strategy – Make-to Stock
 Make product for stock in expectation of customer sales  Plan using planned independent requirements for “anonymous” make-to-stock production.  Use Net or Gross Requirements Planning  Net Requirements -- includes warehouse stock, planned issues and receipts  Gross Requirements -- excludes warehouse stock. Just includes planned and open orders  Example is a shelf stock item such as a bike accessory light  Planning Requirement Type is LSF - make to stock which is used in the planned independent requirements transaction  Sales Order Requirement is KSL - which is sale from stock

Strategy: Make-To-Stock Production
Example: Common shelf items such as a bike accessory (light)
Sale from stock
Warehouse Stock Finished Product


Production Push

Planning Strategy – Planning with Final Assembly
 Make product in expectation of customer sales  Plan using planned independent requirements at finished goods level to drive demand to long lead time components  Typically there is a longer lead time to produce than the customer is willing to wait for  Sales orders consume the planned independent requirement quantities

 Planned quantities that are not consumed by sales orders result in excess stock
 Example is a long lead time custom product  Planning Requirement Type is VSF – planning with final assembly  Sales Order Requirement is KSV – which is sales order with consumption

Strategy: Planning with Final Assembly
Example: Custom furniture such as a cherry table

Final Assembly to Sales Order

Sales Order

Warehouse Stock Finished Product



Planned Independent Requirements

MRP without reference to sales order

Production Push

Planning Strategy – Planning Without Final Assembly

 Final assembly is initiated by the customer sales order  Stop production at sub-assembly level

 Final assembly pull
 Example is automobile assembled with unique combination of features (subassemblies)

 Planning Requirement Type is VSE -- planning without final assembly
 Sales Order Requirement is KEV -- independent customer order with consumption

Strategy: Planning Without Final Assembly
Example: Option oriented product such as a car
Planning Sales Order Assembly when Sales Order Scheduled
Warehouse Stock Finished Product

Planned Independent Requirements

Warehouse Stock Assembly 01

Warehouse Stock Assembly 02

Stop at level Production Push

Final Assembly Pull

Planning Strategy – Planning with Planning Material
 Planned independent requirements of Planning Material initiate procurement of the planning bill components  Sales orders for the final assembly create planned orders of the finished product and reduce planning quantities for the planning material  Possible to plan a family of products from forecast placed on the planning bill.

The planning bill details, through percentages, the quantity required for common
parts  Example is a bike with common sub-assemblies used in many finished items  Planning Requirement Type is VSEF -- planning with planning material  Sales Order Requirement is KEVV -- independent customer order with planning material

Strategy: Planning with Planning Material
Example: Bikes with the same features except for the color

Sales Order

Customer Stock Finished Product

Planning Material



Planned Independent Requirements Note: Percentages drive lower level demands for sub assemblies

Warehouse Stock Assembly 01

Warehouse Stock Assembly 02

Final Assembly Pull

Production Push

Strategy: Production by Lot Size
Example: Combine customer orders for the same item

Sales Order

Warehouse Stock Finished Product

Production by Lot Size Pull

Planning Strategy – Make to Order Production

 Sales orders are planned according to sales order number  Produced quantities for each sales order are managed individually

 Production and procurement costs are managed in either a settlement order or
a project  Example is a custom product with a unique structure such that it only applies to a particular customers order  Sales Requirement Type is KE -- independent customer order without consumption

Strategy: Make-To-Order Production
Example: New machinery
Sales Order
Warehouse Stock Finished Product

Production by Lot Size Pull

MRP Features
Net requirements calculation

Lot sizing

Internal production and external purchasing


Order scheduling and generation

Bill of Material Explosion

MRP Overview

Overview Purchased Items



Master data Material Batches Vendors Customers :

Goods receipt Warehouse management system
Inventory management Valuation Goods issue Transfer posting

Invoice receipt
Invoice verification


MRP: Reorder Point Planning

Reorder Point

Safety Stock

Order Date Delivery Date

Forward Scheduling for External Procurement

Forward scheduling used for reorder point material

Release Order Date

Desired Delivery Date

Purchasing Process Time

Vendor Planned Delivery Time

Goods Receipt Process Time


Daily Accumulation: Planned Individual Requirements

Net Change Planning
Coverage calculation per requirement date Entries from Planning File Warehouse Stock Open Order Proposals

Sales Orders

Order Proposal Shortages


MRP Prerequisites

Activated for MRP Valid MRP Type Valid Material Status Material MRP Views Maintained  MRP Controller  Planned Lead Time  MRP Group  Lot Size Data

  

Material Master – MRP I Key Fields
Basic, General, and Lot Size Data

Procurement Type indicates if the material is externally procured, or produced internally or both. Special Procurement identifies special planning rules which may be used for in-house production or external procurement MRP Type determines how the material is planned such as MRP, MPS, or consumption based planning Material Lead Time identifies for material planning the planned delivery days or in-house production days

Lot Size determines which lot-sizing procedure the system uses to calculate order quantities

Material Master – MRP 1Key Fields
Scheduling Parameters Planning Time Fence: defines a period during which MRP/MPS will not automatically add or reschedule orders  Scheduling Margin: controls the release period, opening period for a material and scheduling floats for production  Release period is the number of working days in the release period  Opening period is the number of working days between the order creation and planned start date  Order floats allows for safety margin before and after production  Planned Delivery: lead-time for purchased material

 In-house Production: lead-time for manufactured material
 GR Processing Time: goods receipt processing time  Example: dock-to-stock time

Material Master – MRP 2 Key Fields

Availability Check indicates whether the system generates individual or summarized requirements for sales orders for this material and for planning, which MRP items the system includes in the availability check.

Mat./PPC Status is used to limit the usability of materials for certain activities such as, purchasing, bills of material

Material Master MRP 3 Key Fields
Independent Requirements

 Consumption Mode: controls consumption of planned independent requirements by customer requirements
 Selections: backward, forward, or both  Consumption Periods Backward/Forward: specifies the number of periods of forward or backward consumption  Used in conjunction with consumption mode Storage Location MRP

 MRP Indicator: determines whether or not requirements, for a specific storage location, are planned separately from the overall plan
 Reorder Level: used for storage location MRP  Replenishment Quantity: used for storage location MRP

MRP Types
VB Manual Reorder Point Planning: MRP produces order proposals when stock falls below a “reorder point”. The reorder point and safety stock levels are entered manually Automatic Reorder Point Planning: The reorder point and safety stock level are calculated based on the forecast results Forecast Planning The latest forecast is copied as requirements which are used to create order proposals Deterministic Planning MRP produces order proposal(s) to match the exact quantity of the requirements based on independent and dependent demands Master Production Scheduling Similar to PD but used for master schedule items



Lot Sizing
Lot for Lot Fixed Lot size Replenish up to maximum stock level

Daily Lot size Weekly Lot size Monthly Lot size Flexible period

Optimum (Cost )
Part period balancing Least unit cost procedure Dynamic Lot size creation Groff reorder procedure

Lot size according to planning calen.

MRP: Static Lot Sizing
Lot for Lot Order Quantity: Shortage Quantity =
Ordered Quantity

Fixed Lot Size:

Material Fixed Order Quantity


Shortage Quantity

Order = Fixed Order Quantity


Shortage Quantity > Fixed Order Quantity

Order Order

Replenishment up to Maximum Stock Level:
Order Quantity


Stock required to achieve maximum stock level set in the material master

Carrying Out the Planning Run
Total Planning – All materials in a given plant
 

All materials are reviewed by MRP regardless of activity Only the materials in a plant that have undergone a change relevant to planning since the last planning run (net change planning)

Planning Interval – Limiting the MRP Planning Interval
example: 100 days Planned requirements and supply order receipts Time MRP Planning Horizon

Planning Run Options for Automatic Creation of Requisitions and Delivery Schedules
 MRP Control Parameter: determine whether or not MRP will automatically create requisitions or delivery schedules  Options are:

 Do not automatically create. Only create planned order
 Automatically create within the opening period  Automatically create for the entire planning horizon

 Opening Period Parameter: allows the user to take advantage of MRP’s automatic creation features while retaining control over the number of open purchasing documents

MRP List
Group of Materials for which controller is responsible Controller’s MRP Listing
MRP Order Proposals and Planner Messages from MRP Planning run. Planner can drill down to review material movement activity

MRP Controller

Goods Issues

Goods Receipt

Stock Requirements List
Date MRP Element Supply/Demand Ref EM Quantity Available 100 75 175

01/01 STOCK 01/08 ORDER Sales Order 25 01/15 PL ORD 1000 120 05 100 02/01 -----------------------------------------------------> Planning Time Fence

Stock Requirements List brings together all the supply orders, independent and dependent demands and stock balances for the material. MRP makes order proposals to balance the supply/demand position for the material

MRP List vs Stock Requirements List

MRP Planning Result
Last planning run results

MRP Planning Process

Current Stock, Rqmts, Balances, planned Receipts, Issues

Stock Requirements List uses current data

 The MRP List displays the result of the last planning run  The Stock Requirements List displays the most up-to-date stock and requirements situation

Backward Scheduling for External Procurement
 

MRP determines the basic scheduling dates using backward scheduling If the release date lies in the past, the system automatically switches to forward scheduling
Desired Delivery Date

Calculated Order Release Date

MRP Planning Date -- today

Purchasing Process Time

Future Requirement Date
Vendor Planned Delivery Time
Goods Receipt Process Time

MRP Planning Lead Time

Backward Scheduling for In-house Production
 

MRP determines the basic scheduling dates using backward scheduling If the release date lies in the past, the system automatically swithches to forward scheduling Order Release Date Order Start Date Order Finish Date

Order Release Process Time

In-house Production Time

Goods Receipt Process Time

MRP Planning Date -- today

MRP Planning Lead Time

Future Requirement Date

Multi-Level Planning Structure

Independent Requirements Customer Requirements

Planned Orders

= Demand = Supply

Level 0

Dependent Requirements

Planned Orders
Dependent Requirements

Planned Orders
Dependent Requirements

Level 1

Planned Orders

Planned Orders

Level 2
Planned Orders

Order Proposals: Planned Orders

Production Order

Procurement Type is In-house Production

Planned Order


Order Qty Order Date Capacity Reqts. Resource Reqts.

MRP Controller

Planning for In-house Production
Planning Run MRP Controller
Manual Creation

Auto Creation

Manual changes/ deletion
Planned Order

Auto Change/ Delete if situation changes

Collective Conversion into Production Order Individual Conversion into Production Order

Production Order

Production Order Release

The Production Cycle
Confirmation Slip

Select Routing

Select BOM

Schedule Times & Dates Release Order

Print Shop Floor Papers Check Availability Actual Labor Issue Materials to Order Confirm Completion Calculate Actual Costs Receive complete goods into stock
Goods Receipt

Create Order
Production Order

Calculate Capacity

Calculate Planned Costs

Create Required Purchases

Purchase Requisitions

Goods Issue


Production Order Creation
Manual Order Creation Order Proposal MRP Conversion

Determine Order Type

Routing Selection

 

Alternate Sequence Assignments One operation is required Enter start or finish date depending on scheduling direction
  

Changes are allowed before order release
Lead Time Scheduling

Bill of Material Selection

Component Overrides Material Reservations Item Categories

Production Order Release
Production Order Ready for Release

Order release is carried out manually

Material Availability Check

Uses checking rules defined in configuration

Order or Operation Release

Shop Paper Printing Possible

 

On-line or in background Pick List, Confirmation Slips,...

Material Withdrawals Possible

Material Availability Check

Stock on Hand 150 Units Net Available 150 100

Reservation for 50 Units 100

Planned Order for 200 Units

Dependent Requirement for 200 Units


Requirement for 50 Units are Available

Goods Movement for a Production Order
Reservation Planned Goods Issue

Material 1
Unplanned Goods Issue


Material 2 Consumption of Material 1 and 2 Goods receipt of Material 3
Goods issues only apply to stock items

Goods Issue

Goods Issue Results
Update Reservations Material Usage Statistics

Goods Issue Posting
G/L Account Update Accounting Cost Object Allocation

Material Document

Completion Confirmations
Production Order Operations 0010 - Assemble Board 0020 - Assemble Case 0030 - Assemble unit 0040 - Final Test C
Confirm Operation 0010 Activities

Confirm Operation 0020 Activities

Confirm Operation 0030 Activities

    

Partial or Final Confirmation Single or Collective Confirmation Milestone Confirmation Reduction of Capacity Requirements Determination of Actual Costs

Confirm Operation 0040 Activities

Confirmation Data
  


Yield Scrap Quantity Scrap Reason


 

Start date Finish date Work Center Personnel Number Qualification Wage Group Wage Type


    

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