06: Chapter Production Exercise 06-02: Basic Production Multi Company Code Rev: 01/17/2011
Introduction
GeneralNotesandInformation
It is strongly recommended that you read through the entire exercise prior to starting. Not all instructions can be provided in a linear manner. The following symbols are used to indicate important information, as described below. An arrow highlights an important instruction that must not be overlooked. A pencil prompts you to write down an important piece of information. Each student or group will be assigned a unique two-digit identifier. This identifier is used in all exercises to uniquely identify your data. Whenever you see ## in these exercises, replace it with your identifier. Always work with your data.
BusinessProcessOverview
GBI uses the production process to manufacture goods the company needs to fill orders, or increase inventory after it has filled an order. In this exercise you will go through the production process to produce 10 Deluxe Touring Bikes and place them in inventory for later use.
ExercisePrerequisites
Exercise 6-1 GBI Review Production Master Data MCC Review the bill of materials at the end of this document
Chapter 06, Exercise 06-02, Revised: 01/17/2011
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ExerciseWorkflow
ExerciseDeliverables
Deliverables are consolidated into one worksheet at the end of this exercise. For this exercise you will need the following deliverables.
In the System
Create initial inventory balances Create planned orders Convert planned orders Issue materials Confirm production Receive the goods Review accounting info
On Paper
Completed exercise worksheet (attachment 1) to turn in to your professor. Answers to the Questions You may be assigned additional deliverables. Make certain to check with your instructor.
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Step 1: Check Inventory Balances
In this step we will determine if we have the required raw materials to produce ten of your Deluxe Touring Bikes (red), and then create what we need with inventory from heaven.
Step 1.1: The table below shows the Bill of Material required for one Deluxe Touring Bike (red). Be sure to get the correct amount of materials. Review Exercise 6-1 to review inventory balances Item
Touring Frame-Red Derailleur Gear Assembly Touring Seat Kit Touring Handle Bar Pedal Assembly Chain Brake Kit Touring Tire Touring Tube Touring Aluminum Wheel Hex Nut 5 MM Lock Washer 5 MM Socket Head Bolt 5X20 MM Packaging Warranty Document Touring Aluminum Wheel Assembly
Material TRFR30## DGAM10## TRSK10## TRHB10## PEDL10## CHAN10## BRKT10## TRTR10## TRTB10## TRWH10## HXNT10## LWSH10## BOLT10## PCKG10## WDOC10## TRWA10##
Quantity for 1 bike 1 1 1 1 1 1 1 2 2 2 2 4 2 1 1 2
Quantity for 10 bikes
Step 1.2: Refer to Exercise 6-1 for instructions on how to review the inventory balance (MMBE). Fill out the following table with (1) the current quantity of material you have, and (2) the quantity you still need in order to produce 10 Deluxe Touring Bikes (red).
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Item
Touring Frame-Red Derailleur Gear Assembly Touring Seat Kit Touring Handle Bar Pedal Assembly Chain Brake Kit Touring Tire Touring Tube Touring Aluminum Wheel Hex Nut 5 MM Lock Washer 5 MM Socket Head Bolt 5X20 MM Packaging Warranty Document Touring Aluminum Wheel Assembly
Material TRFR30## DGAM10## TRSK10## TRHB10## PEDL10## CHAN10## BRKT10## TRTR10## TRTB10## TRWH10## HXNT10## LWSH10## BOLT10## PCKG10## WDOC10## TRWA10##
Current Quantity
Quantity Needed to Create
Step 1.3: Refer to Exercise 6-1 for instructions on how to review inventory from heaven. You will create the remaining raw materials required to produce 10 Deluxe Touring Bikes (red) as displayed in the Quantity to Create column above. Do NOT use inventory from heaven for your Semi finished good and Finished Good. 1. Why do we not want to have the initial inventory balance of TRWA10## and DXTR30##:
ExerciseDeliverables
In the System
Created initial inventory balances
Step 2: Create Planned Order
On Paper:
Answers to the Questions Normally, the material planning process would determine the need to produce bicycles. However, for the purpose of this exercise, you have manually determined that you need 10 red Deluxe Touring Bikes (DXTR30##). To manufacture the bikes you need 20 Touring Aluminum Wheel Assemblies (TRWA10##). Therefore you must produce the wheel assemblies before you produce the bikes.
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You will go through the steps in this exercise twice; once for the wheel assemblies and once for the bikes. The instructions below include the data for the wheel assemblies. When you repeat these steps for the bikes, be sure to modify these data as needed. STEP 2.1: First, create a planned order for the 20 wheel assemblies. Navigate to the transaction to create a planned order:
Navigation
Logistics Materials Management Material Requirements Planning (MRP) MRP Planned Order Create
2. What is the transaction code to create a planned order: STEP 2.2: In the Create Planned information: Field Name
Order: Initial Screen enter the following
Planned Order Profile
(ENTER)
Data Entry Code for Stock Order
STEP 2.3: In the Create Planned information: Field Name
Order: Stock Order screen, enter the following
Material Planning Plant Order Quantity Order Finish Producing Plant Storage Location
Data Entry Code for your Touring Aluminum Wheel Assembly Code for your Plant Dallas 20 One week from today Code for your Plant Dallas Code for your Semi-Finished Goods
Note: Each bike requires two Touring Aluminum Wheel Assemblies. (SAVE) 3. Write down your planned order numbers:
OutcomeandAnalysis
You have now created a planned order for production
Refer to a previous exercise for instructions on how to review your material inventory balance. After you review
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this inventory, answer the following questions.
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Make certain you check the location for semi-finished materials rather than the raw materials storage location. 4. How many Aluminum Wheel Assemblies are unrestricted:
Refer to a previous exercise for instructions on how to review your material inventory account. After you review these accounts, answer the following questions. 5. What is the dollar value of the Aluminum Wheel Assembly in inventory:
ExerciseDeliverables
In the System
Step 3: Convert Planned Order
Created Planned order
On Paper:
Answers to the Questions In this step, you will convert the planned order into a production order. That is, you will authorize the production of the Touring Aluminum Wheel Assembly.
Step 3.1:
Navigate to the transaction to convert your planned order:
Navigation
Logistics Production MRP Evaluations Stock/requirements list
6. What is the transaction code to view the Stock/Requirements list: Step 3.2:
In the Stock/Requirements List: Initial screen, be sure you have the Individual Access tab. Enter the following: Data Entry Code for your Touring Aluminum Wheel Assembly Code for your Plant Dallas
Field Name
Material Plant
(ENTER)
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Click on the button in the first column, for the row with the first planned order (PldOrd). This screen display the details of the planned order. Next, click on the button. You will see a screen called Production Order Create Header and a message that reads Release carried out. (SAVE) 7. Write down the order number displayed in the resulting message:
You are back in the Stock/Requirements list screen. Refresh the data by clicking the button. You will notice that the MRP element column has changed from PldOrd to PrdOrd. Remember that you will authorize the production of DXTR30## the second time you complete this exercise. 8. 9. Why does the order matter of creating production order of TRWA10## first, THEN DXTR30##: Write down the order number displayed in the resulting message:
OutcomeandAnalysis
Refer to a previous exercise for instructions on how to review your material inventory balance. Review the inventory of your materials, and then answer the following questions. Make certain you check the location for the semi-finished materials rather than the raw materials. 10. How many Aluminum Wheel Assemblies are unrestricted: 11. How many Aluminum Wheel Assemblies have a blocked status: Refer to a previous exercise for instructions on how to review your material inventory account. . Review this inventory, and then answer the following questions. 12. What is the dollar value of the Aluminum Wheel Assembly in inventory:
Deliverables
In the System
Converted planned orders to production orders
Step 4: Issue Materials to Production Order
On Paper:
Answers to the Questions In the previous step, you authorized production of the wheel assemblies. In this step you will release (issue) the materials needed to produce the wheel assemblies.
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Step 4.1:
Navigate to the transaction to issue materials to the production order:
Navigation
Logistics Production Shop Floor Control Goods movement Goods Issue
13. What is the transaction code to issue materials to the production order: Step 4.2: In the Enter information: Field Name
Goods Issue: Initial Screen enter the following
Movement Type Plant Storage Location*
Data Entry 261 Code for your plant Dallas Code for your raw materials
*When going through this step the 2nd time for your Finished Good, leave the Storage Location here blank. Click on the reference button. Enter your order number. (If you did not write it down, then you can search for it) Click on the button. Click on the Adopt button (or Enter) to accept the details for each item. You will go through screens for each material. Make sure that the plant and storage locations are correct. going When through this step the 2nd time, you will need to enter your correct storage locations for each material (Hint: you will enter both raw materials and semi finished good). (POST/SAVE) 14. Record the document numbers:
OutcomeandAnalysis
You have now issued your materials and authorized production. Refer to a previous exercise for instructions on how to review your material inventory balance. After you have reviews this inventory, answer the following questions. Make certain you check the location for semi-finished materials rather than for raw materials. 15. How many Aluminum Wheel Assemblies are unrestricted: 16. How many Aluminum Wheel Assemblies have a blocked status:
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Refer to a previous exercise for instructions on how to review your material inventory account. . After you have reviewed inventory, answer the following questions. 17. What is the dollar value of the Aluminum Wheel Assembly in inventory:
ExerciseDeliverables
In the System
Issued materials to production
Step 5: Confirm Production
On Paper:
Answers to the Questions After the materials have been released to the production order (previous step), the actual production takes place. When the production has been completed,it is necessary to inform the system of this fact. In this step you will confirm the production of wheel assemblies.
Step 5.1:
Navigate to the transaction to confirm your production order:
Navigation
Logistics Production Shop Floor Control Confirmation Enter For Order
18. What is the transaction code to confirm production: Step 5.2: In the Create Production order number.
Order Confirmation: Initial Screen enter your production
(ENTER)
Step 5.3: In the Confirmation Field Name
of Production Order Create: Actual Data screen enter:
Data Entry Final Confirmation Enter the quantity authorized to produce in the previous step
Confirmation Type Yield to confirm
(SAVE)
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You should receive a message indicating that the confirmation for your order number was saved. At this point, the material is on the production floor and must be recorded (received) into inventory. You will perform this task in the next step.
OutcomeandAnalysis
Refer to a previous exercise for instructions on how to review your material inventory balance. After you have reviewed this inventory, answer the following questions. Make certain you check the storage location for semi-finished materials rather than for raw materials. 19. How many Aluminum Wheel Assemblies are unrestricted: 20. How many Aluminum Wheel Assemblies have a blocked status: Refer to a previous exercise for instructions on how to review your material inventory account. Review this inventory, and then answer the following questions. 21. What is the dollar value of the Aluminum Wheel Assembly in inventory:
ExerciseDeliverables
In the System
Production confirmed
On Paper:
Answers to the Questions
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Step 6: Receive Goods into Inventory
In this step you will receive (record) the material produced into inventory.
Step 6.1.
Navigate to the transaction to receive goods into inventory:
Navigation
Logistics Production Shop Floor Control Goods Movement Goods receipt
22. What is the transaction code to receive goods into inventory: Step 6.2. In the Goods information: Field Name
Receipt for Order: Initial Screen enter the following
Document Date Posting Date Movement Type Order Plant Storage Location
Click on the button. Check the box next to Deliv. Compl.
Data Entry Todays Date Todays Date 101 Your Order Number Code for your Plant Dallas Code for your Semi finished goods
Make sure that the storage location is correct SF## for semi-finished goods FG## for finished goods Click on the Adopt button (or Enter) to accept the details. (SAVE). 23. Record the document numbers
OutcomeandAnalysis
You have now received the material to be produced into inventory. Refer to a previous exercise for instructions on how to review your material inventory balance. After you have reviewed the inventory, answer the following questions. Make certain you check the storage location for semi-finished materials rather than for raw
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materials. 24. How many Aluminum Wheel Assemblies are unrestricted: 25. How many Aluminum Wheel Assemblies have a blocked status:
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Refer to a previous exercise for instructions on how to review your material inventory account. After you have reviewed this inventory, answer the following questions. 26. What is the dollar value of the Aluminum Wheel Assembly in inventory:
ExerciseDeliverables
In the System
Good received in inventory
Step 7: View Production Order Costs
On Paper:
Answers to the Questions In this step, you will review the production costs associated with the production you completed in a prior step.
Step 7.1.
Navigate to the transaction to review production order costs:
Navigation
Accounting Controlling Product Cost Controlling Cost Object Controlling Product Cost by Order Information System Reports for Product Cost by Order Detailed Reports For Orders
27. What is the transaction code to view production order costs: Step 7.2.
If asked, enter NA## for the controlling area. In the Analyze Order: Target/Actual - Comparison screen enter the number of your Production Order from Step 5.
(EXECUTE) Review the information by double clicking on each of the listed documents.
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28. What is the actual cost of production for just the materials consumed as Aluminum Wheel Assemblies (Hint: Look at the cost element Manufacturing Output Settlement): 29. (When doing this step for the 2nd time only) What is the actual cost of production for DXTR30##: 30. In the same screen, you can find your Order number towards the top of the screen. What was your standard production order number for DXTR30##:
ExerciseDeliverables In the System
Production Order Costs reviewed
On Paper:
Step 8: Create Finished Goods
Answers to the Questions In this step, you will produce your Red Deluxe Touring by using your raw materials you have created in previous steps and your Touring Aluminum Wheel Assembly you produced earlier.
At this point you have completed the production of the semi-finished good Touring Aluminum Wheel Assembly. You now have to produce the Red Deluxe Touring Bike. You do this by repeating sSeps 2 through 7 for the Red Deluxe Touring Bike instead of for the Touring Aluminum Wheel Assembly. Be careful to select the correct information for storage locations. The components needed to produce the bike (chain, etc) are located in Raw Materials. The Touring Aluminum Wheel Assembly that you just produced is located in Semi-Finished Goods. When you complete the production of the Red Deluxe Touring Bikes, you will receive them into the Finished Goods storage location. o When you are producing your Deluxe Touring Bikes (red) finished good, you will receive an error message in Step 4.1 if you do not change the storage location for the Touring Aluminum Wheel Assembly from raw materials to semi-finished goods.
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In the System
Planned order, production order, and materials goods movement documents are created
Attachment 1: Exercise Worksheet
Production for DXTR30## is confirmed
Name(s):_________________________________ Course & Selection: ______________________ Identifier: ______________________________ Client: _________________________________
31. 32. 33. 34. 35. 36. 37. 38. 39. 40. 41. 42. 43. 44. 45. 46. 47. 48. 49. 50. 51. 52. 53. 54. 55. 56. 57. 58. Why do we not want to have the initial inventory balance of TRWA10## and DXTR30##: What is the transaction code to create a planned order: Write down your planned order numbers: How many Aluminum Wheel Assemblies are unrestricted: What is the dollar value of the Aluminum Wheel Assembly in inventory: What is the transaction code to view the Stock/Requirements list: Write down the order number displayed in the resulting message: Why does the order matter of creating production order of TRWA10## first, THEN DXTR30##: Write down the order number displayed in the resulting message: How many Aluminum Wheel Assemblies are unrestricted: How many Aluminum Wheel Assemblies have a blocked status: What is the dollar value of the Aluminum Wheel Assembly in inventory: What is the transaction code to issue materials to production order: Record the document numbers: How many Aluminum Wheel Assemblies are unrestricted: How many Aluminum Wheel Assemblies have a blocked status: What is the dollar value of the Aluminum Wheel Assembly in inventory: What is the transaction code to confirm production: How many Aluminum Wheel Assemblies are unrestricted: How many Aluminum Wheel Assemblies have a blocked status: What is the dollar value of the Aluminum Wheel Assembly in inventory: What is the transaction code to receive goods into inventory: Record the document numbers How many Aluminum Wheel Assemblies are unrestricted: How many Aluminum Wheel Assemblies have a blocked status: What is the dollar value of the Aluminum Wheel Assembly in inventory: What is the transaction code to view production order costs: What is the actual cost of production for just the materials consumed as Aluminum Wheel Assemblies (Hint: Look at the cost element Manufacturing Output Settlement): 59. (When doing this step for the 2nd time only)What is the actual cost of production for DXTR30## (Hint: Look at the cost element Manufacturing Output Settlement): 60. In the same screen, you can find your Order number towards the top of the screen. What was your standard production order number for DXTR30##:
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