6 SAP PP Level I Training

Honda-Goa, 06th May 2009 1
SAP PP MODULE
Presented By :
Srinivas U.B
LEVEL 1 TRAINING AGENDA
SAP Overview (Structure and Modules)
SAP Implementation Methodology
PP Module overview
Honda-Goa, 06th May 2009

LEVEL 1 TRAINING
SAP
Systems Application and Products
In Data Processing

Before SAP Implementation
Manufacturing
Sales Purchasing
Reconciliation
Human Finance
Reconciliation Controlling
Resources
After SAP Implementation
SAP SAP
Production Planning Human

Resources
SAP SAP
SAP
Materials Sales &

Management Distribution
SAP
server
SAP
SAP SAP
Honda-Goa, 06th May 2009 Finance Controlling

The project implementation stages will be described as followed
During Realization,
During Project business and process
Preparation, project requirements based on the During Final Preparation, final
Business Blueprint are acceptance sign-off would have been
guidelines and teams are
configured and implemented. gained from stakeholders and cutover
established, project scope
The SAP R/3 system in this readiness and cutover readiness
and strategies are refined.
phase would have gone check is completed. The SAP R/3
Our project team will be
through thorough unit and system and the organization is ready
briefed and mobilized with
a kick-off meeting
integration testing and is for ‘Go-Live’
ready for the Final
Preparation
0
3A
Parallel Test Run
During Business Blueprint, During Parallel Test, the user During Go-Live & Support,
the as-is and to-be business will enter transactions in legacy and the SAP R/3 system is ‘live’. The
requirements are documented as the SAP systems. At the end of the project team along with DC
baseline of how the key business month, the results will be compared consultants will support the end
processes will be configured and run to check the SAP system design users to ensure familiarity to operate
within the SAP R/3 system accuracy. the new system as per the business
processes
SAP R/3 PP Module overview
Sales and Operations Planning

Org. Structure
SAP R/3 Integration
Long Term Planning
Demand Management
PP Master Data : MRP
Material Master Planned order

Bill of Material
Work Center Production Order
Routing Back flushing
Production Order
Confirmation &
Settlement
© Copyright 2009 Tata Technologies. All rights reserved. All other trademarks are trademarks of their respective owners.
Organizational Structure
Organizational Levels
Client
Controlling Area
Company Code 1 Company Code 2

SALES AREA
P Org 1
SALES ORG
Plant 1 Plant 2
DISTR.
CHANNEL
SLOC 1 SLOC 2 SLOC 1 SLOC 2

DIVISION
Process Flow Integration
Sales Order Material Availability Check

Customer Shipment Sales & Transfer of Requirements
Credit Limit Distribution Goods Issue to SO
Sales Order / Forecast / Plan Invoice
Material Requirements
Production Material Procurement Materials
Planning Management
Production Cost Accounting Document
Purchase Order
Invoice Receipt
Goods Receipt
Finance & Vendor
Receivable Accounts / Cash Receipt Controlling Accounts Payable
Master Data
PP Master Data
Views of the Material Master
Purchasing
 Basic Data The material master is a Sales

central data object for all
MRP material types:
 Work
• raw materials scheduling 
Stocks in plant/
storage location • semi-finished products Quality
management
• finished products
Accounting
• P.R.T. Forecasting 
Storage
Classification
Costing Each user function has its own view of the material master which
permits easy access and maintenance of data.
Basic Data view
MRP View
Work Scheduling View
Shop Floor
Engineering
Production
 Which departments use this view?
? 

Engineering
Shop Floor Production
Materials  Materials Management
Management
 Why is this view used?

 To record data related to
? production such as:

 Units of issue
 Issue Storage Location
 In-house production
time
Plant Data / Storage Views
Shop Floor  Which departments use this view?

Production
 Shop Floor
?  Materials Management
Materials
Management
View is used to record following

data
? 

Shelf life data
Stock Determination
 Profit Center
Bill of Material
Bill of Material
BOM
A bill of material is a complete, formally structured

list of the components of a product or assembly.
A bill of material contains the description and
object number of each component, the quantity
and unit of measure.
Multi Level - Bill of Material
Machine
Assembly 1 Assembly 2
Motor Gear Exhaust Fly wheel Chain Frame Shaft
Combining single-level BOMs

creates a complete multi-level
structure.
Bill of Material Usage
Engineering Production Different types of BOM usage;

Data Data
 Engineering
 Production
 Costing
BOM  Sales
Costing BOM Item Status
Data
• Released
• Blocked
Sales Data
Bill of Material Structure
• BOM header maintained with structure of assembly components & sub assembly items with respective
base quantity and unit of measure.

• BOM status governs, whether the BOM is active or inactive.
Work Center
Work center
Definition A work center is an organizational unit where

a work step (operation) is performed.
Usage Work centers are used in routings. They can also be used
as capacity collectors for statistical evaluations.
Examples
Type of work center Example
 Individual work center Automatic lathe 17
 Work center group Machine shop
 Assembly line Line 9
 Individual person John Doe

 Group of people Group 12
Work center Data
General data Basic data Name and description

Standard value key
Standard values Default values Control key

for routing
Standard text key
Capacity data Capacity

Available capacity
Formula key
Scheduling data Scheduling Scheduling basis

Queue and move times
Formula key
Costing data Cost center
and Assignment
HR data Activity types
Routing
Routings
A routing contains the operations to be performed, their sequence and the

various work centers involved to manufacture an item.
ROUTING STRUCTURE
Routings
 Each individual routing is referred to as a group counter within the group
Routing Group
Group Group Group

Counter 01 Counter 03 Counter 04
Routings
Routings contain:
 Manufacturing In-house components & finished goods.

 The work centres where the operations are to be performed
Material allocation
 The manufacturing material is allocated to the group counter.
 Component are allocated to operations and standard values for
• Setup time,
• Processing time
• Tear-down time
Demand Management
Demand Management
Sales Plan Prodn Plan Forecast Plan
Manual Planned Sales

Independent Demand Management Demand from
Requirements “Demand Program” Sales Orders
MRP/MPS
Demand mgmt will have product, qty & Rqd. Date
Demand Management Process
Demand Management
 Customer or sales requirements ( Export or Domestic).
 Planned independent requirements.
Planning strategies
 Methods of production for planning & manufacturing or procuring a
product.
Different planning strategies used are;
 Make to stock
 Make to order
 Planning with final assembly
MRP
MRP Overview
Complete MRP Overview
MRP
Sales orders
Planned ind reqmts
Dep. reqmts
Reservations Planned Only for

materials procured
order
externally
Convert
Purchase Schedule
Production requisitions lines
order
Purchase
order
Stores
Warehouse Stock
Stores Stock
 SAP AG 1999
Honda-Goa , 06th May 2009 35

MRP- Stock Requirement List
Honda-Goa , 06th May 2009 36

Production Control
Production Methods
Production Methods
Discrete manufacturing:
 Frequently changing products
 MFG restricted production lots
 Varying sequence of work centers over which a product can run
Repetitive Manufacturing:
 Same product is produced over a longer period of time in one
production line
 Total quantity of the product is manufactured over a specific period of
time with a specific production rate per partial period
Production Orders
Production Order Overview
7 - Print Shop
Confirmation Slip
1 - Select 2 - Select 3 – Schedule Dates Floor Papers
BOM Routing (Fwd / Backward)
Release
Order 6 - Calculate
Planned Costs
Actual
Create Labor Confirm
Order 4 - Check Completion
Availability 8 - Issue
Cost Release Materials to
5 - Calculate Order 10 - Calculate
Capacity Actual Costs
9 - Receive complete
Goods
Issue goods into stock
Goods
Receipt
Production Order Settlement
 A Production Order collects all costs associated with making an inventorial item and
the order “picks up” the cost from Material master.
 Production cost analysis carried out after Final Confirmation & Order Settlement.
Production Order STATUS:

Created, Released,
Bill Order: 73 Confirmed, Delivered,
of Type: PP01 Settled
Material Plant: LR001
Sys Status:
CRT REL CNF DLV SETC
Quantities:
Total Produced: 100 Tons
Scrap: .001
Routing Confirmed: 100 Tons
Dates:
Schedule 09/15/95
Confirmed 09/16/95
Backflushing
Backflushing Process
 GR/GI will happen simultaneously at the time of Posting.
THANK YOU
Hinjawadi , 06th May 2009 45

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Honda-Goa, 06th May 2009 1

SAP Overview (Structure and Modules)

SAP Implementation Methodology

PP Module overview

Honda-Goa, 06th May 2009

Honda-Goa, 06th May 2009

Production Planning Human

Materials Sales &

Honda-Goa, 06th May 2009 Finance Controlling

Sales and Operations Planning

PP Master Data : MRP

Material Master Planned order

Routing Back flushing

Company Code 1 Company Code 2

SLOC 1 SLOC 2 SLOC 1 SLOC 2

Sales Order Material Availability Check

Sales Order / Forecast / Plan Invoice

 Basic Data The material master is a Sales

 Why is this view used?

? production such as:

Shop Floor  Which departments use this view?

View is used to record following

A bill of material is a complete, formally structured

Motor Gear Exhaust Fly wheel Chain Frame Shaft

Combining single-level BOMs

Engineering Production Different types of BOM usage;

base quantity and unit of measure.

Definition A work center is an organizational unit where

 Work center group Machine shop

 Assembly line Line 9

 Individual person John Doe

General data Basic data Name and description

Standard values Default values Control key

Capacity data Capacity

Scheduling data Scheduling Scheduling basis

A routing contains the operations to be performed, their sequence and the

 Each individual routing is referred to as a group counter within the group

Group Group Group

 Manufacturing In-house components & finished goods.

Sales Plan Prodn Plan Forecast Plan

Manual Planned Sales

Demand mgmt will have product, qty & Rqd. Date

Complete MRP Overview

Reservations Planned Only for

Honda-Goa , 06th May 2009 35

Honda-Goa , 06th May 2009 36

Production Order STATUS:

 GR/GI will happen simultaneously at the time of Posting.

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