SAP PP Training Material

CONFIDENTIAL

Version 2009
Production Planning
Production Execution In Discrete
Manufacturing

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Introduction

Contents

• Production Order Overview

• Production Order – Concept
• Elements of Production Order
• Different Ways of Creating Production Orders
• Order Creation with Planned Orders
• Data Flow in Order Creation
• Capacity Calculation
• Production Order Release Process

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Production Order Overview

• Production order management is a

central component of a complex
process chain that starts with
independent requirements (planned
or customer requirements) and ends
in the issue of a finished product.

• Production order management only

controls the whole process of in-
house production.

• Production order processing includes

Goods Issue & Order Confirmation

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Production Order Concept

• Production activities in Shop floor are executed with reference to

Production order

• SAP production order consists of

– Material to be produced
– Production Location (work center)
– Time (Start, Finish times, etc)
– Operation instructions, Components, PRT’s assigned to operations
– Planned production costs

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Production Order Overview

• Orders are one category of business transaction.

• Orders are divided up according to order category, as it is possible to have different

orders within the different applications.Like PP production order , PP process order , PS
network & CO internal orders

• The system predefines fixed order categories for each application.

• An order type is used to control different processes

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Production Order Overview – Master Data
• Master Data In Production Order

Procurement Type E – The material is produced in-house.

Procurement Type X – The material can be both produced in-house and procured externally

.
Procurement Type F – The material is procured externally Document Name
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Production Order Status
• Status Management

• Following are the status types which are being used in production order

– System Status –

• Internal system status

• Can not be influenced by the user
• Fixed quantity of predefined statuses
• Fixed sequences for the assignment of status

– User Status –

• Freely definable , with no limit to amount

• Set by user
• Linked via status profile

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Production Order Cycle

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Different Ways Of Creating Production Orders

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Capacity Calculations

• Production Order calculates required capacity.

• Daily available capacity is calculated with reference to work center capacity

view

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Material Reservation
• When production order is created, the components assigned to the production order are
reserved.
• The purpose of a reservation is to ensure that a material will be available when it is needed.
It also serves to simplify and accelerate the goods issue process and prepare the tasks at
the point of goods issue.
• A reservation for goods issue can be requested by various departments for various account
assignment objects (such as cost center, order, asset, etc.).
• In a reservation, information is stored that is relevant for the goods issue and for materials
planning, for example:
– What? (which material?)
– How much? (in which quantity?)
– When? (for which requirement date?)
– From where? (from which plant or warehouse?)
– To where? (to which recipient or customer?)
• When a reservation is entered, the following events occur in the system:
– The system creates a reservation document, which serves as proof of the request.
– In the material master record, total stock and unrestricted-use stock of the material
remain unchanged. Reserved stock is increased by the reserved quantity.
– In MRP, available stock is reduced by the reserved quantity. This is visible in the
current stock/requirements list. The reservation causes an entry to be made in the
requirements planning file.
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Production Planned Cost

• Calculates cost before manufacturing

• Planned production cost is get calculated based activity cost and
production overheads.
• Planned Material cost get calculated from BOM and material
overhead.
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Material Availability Check

• Material availability check for all BOM Components.

• You can carry out an availability check either for the entire order, or for an
individual material component in the order.

• The system carries out an availability check. If material components are not
available on their requirements date, the system activates the status "material
shortage" in the production order.

• If you make changes in an order, which could affect the availability of its
components (for example date or quantity changes), this does not
automatically trigger a new availability check. For up-to-date information on
any missing parts in an order, you should restart the availability check
manually after you have made the changes.

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Production Order Release

• Once you released

production order following
activities can be performed :
– Shop floor papers can
be printed.
– Goods movements for
the order can be
executed
– Confirmations for the
order can be
executed.

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Manual Creation of Production Order - With Material

• Path : Logistics->Production
->Shop Floor Control -> Order ->
Create

• T-Code : CO01

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 Create Production Order – Check Capacity

Enter Manually

Enter Order Quantity & Start or Finish Date manually.

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Create Production Order – Check Capacity

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Create Production Order – Check Material

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Create Production Order – Release Order

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Create Production Order – Release Order

Once you released the order status get changed to REL.

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Goods Movements In Discrete
Manufacturing

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Introduction

Contents

• Goods issue to production order (GI)

• Goods receipts to production order (GR)

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Production Order Goods Issue (GI)

• SAP Slide

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Production Order Goods Issue (GI)

• Goods Issue for production can done in one of the following way :
– Automatic (Backflush) – confirmation automatically post goods issue for
components
– Manual – Operator will post Goods Issue for production order

• Stock and consumption fields are updated at the storage location level.

• The component reservation is reduced.

• The actual costs are determined and updated in the order.

• If the material withdrawn does not have a reservation, then it is an unplanned issue.
Example: Material withdrawn as a replacement material.

• Goods issues can be posted only if movement for the reservation is allowed. For
example, an order status of created but not released, blocked or technically
complete disallows such movement.

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Production Order Confirmation
• Production Order confirmation is used for entering activities carried out within your company for
an order.

• Production order confirmations enable you to monitor the progress of work carried out for a
production order.

• With a confirmation you specify

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

• The following business transactions can be executed via confirmations:

– Updating order data (for example, quantities, activities, dates, status)
– Backflushing of components
– Automatic goods receipt (for one operation per order max.)
– Capacity reduction in the work center
– Updating costs based on confirmed data

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Production Order Confirmation Types
• Most widely used confirmation are :

• For an Operation

– You have the following options:

• To confirm quantities, durations, activities or personnel data, enter a time ticket
confirmation or a progress confirmation.
• To make a confirmation at a particular point in time (for example, at the start of setup
or the finish of processing) enter a confirmation for a time event.
• When you confirm time events, the system calculates the required duration. For
example, the setup duration is the time between setup start and setup finish.

• For an Order

– If you enter a confirmation at order header level, the system confirms all the operations
that have a control key in which confirmation is optional or necessary. The quantities
confirmed in the operations are proportional to the quantities confirmed in the order
header.

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Production Order Confirmation

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Goods Movement

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Goods Receipt From Production Order
• 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).

• When we do goods receipt manually againt production order, we need to specify:

– Plant
– storage location
– stock type
– final delivery indicator

• Material and accounting documents are assigned according to their numbers.

• The delivered quantity can be updated in the order.

• The inward movement of material is valuated.

• The order is credited.

• The plant activity account is updated

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Goods Receipt From Production Order

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Goods Receipt From Production Order

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