EGN_5620_Enterprise_Production Planning Master Data

EGN_5620_Enterprise_Production Planning Master Data -...

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: Enterprise Systems Enterprise Systems Configuration Production Planning Master Data EGN 5620 Enterprise Systems Configuration Fall, 2011 Enterprise Operations Planning Process Execution High Level Planning Procurement Process CO/PA Detailed Planning Forecasting Sales and Operations Demand Planning Management MPS Sales Information MRP Manufacturing System Execution Order Settlement Execution January 2008 January © SAP AG - University Alliances and SAP The Rushmore Group, LLC 2007. All rights reserved. rights 2 Purchase Order Purchase Requisition BPI – II Final Roadmap Schedule and Release Convert Production Proposal Goods Issue Run MPS w/MRP Check Availability Sales Order Entry Sales Process Receipt of Payment Invoice Customer Pick Materials Procurement Process Invoice Receipt Production Process Completion Confirmation Quality Inspection Goods Receipt Payment to Vendor Goods Receipt Order Settlement Post Goods Issue January 2008 © SAP AG - University Alliances and SAP The Rushmore Group, LLC 2007. All rights reserved. rights 3 Production and Planning Master Data Concept & Theories EGN 5620 Enterprise Systems Configuration Fall, 2011 Production and Planning Production and Planning Production planning is a business process which creates and maintains production plans for manufacturing of semi­finished goods or assembly of finished goods Common manufacturing processes: Discrete, and Continuous January 2008 © SAP AG - University Alliances and SAP The Rushmore Group, LLC 2007. All rights reserved. rights 5 Production Planning & Execution Production Planning & Execution Sales & Operations Planning (SOP) Demand Management MPS Strategic Planning Detailed Planning MRP Manufacturing Execution Order Settlement Procurement Process Manufacturing Execution Production and Planning Production and Planning Players in the Planning ◦ Strategic Planning CEO, COO, CIO, CFO, Controller, Marketing Director ◦ Detailed Planning Line Managers, Production Scheduler, MRP Controller, Capacity Planners ◦ Execution Line Workers, Shop Floor Supervisors January 2008 © SAP AG - University Alliances and SAP The Rushmore Group, LLC 2007. All rights reserved. rights 7 Sales and Operations Planning (SOP) Sales and Operations Planning (SOP) Flexible forecasting and planning tool Usually consists of three steps: ◦ Sales Plan ◦ Production Plan ◦ Rough Cut Capacity Plan Planned at an aggregate level in time buckets Demand Management Demand Management Link between Strategic Planning (SOP) & Detailed Planning (MPS/MRP) The results of Demand Mgmt is called the Demand Program, it is generated from our independent requirements ­ PIR and CIR Demand Management Demand Management Forecast Sales Planned Independent Requirements Customer Independent Requirements Demand Program MPS / MRP Planning Strategies Planning Strategies Planning strategies represent the business procedures for ◦ The planning of production quantities ◦ Dates Wide range of strategies Multiple types of planning strategies based upon environment ◦ Make­To­Stock (MTS) ◦ Make­To­order (MTO) Driven by sales orders ◦ Configurable materials Mass customization of one ◦ Assembly orders Planning Strategy for Make­to­Stock Planning Strategy for Make­to­Stock Planning takes place using Independent Requirements Sales are covered by make­to­stock inventory Strategies ◦ Net Requirements Planning ◦ Gross Requirements Planning ◦ Production by Lot Size ◦ Planning with Final Assembly Planning Strategy for Make­to­Order Planning Strategy for Make­to­Order Planning takes place using Customer Orders Sales are covered by make­to­order production Strategies ◦ Make to Order Production ◦ Planning without Final Assembly ◦ Planning with Planning Material Master Production Scheduling (MPS) Master Production Scheduling (MPS) MPS allows a company to distinguish planning methods between materials that have a strong influence on profit or use critical resources and those that do not Material Requirement Planning (MRP) Material Requirement Planning (MRP) In MRP, the system calculates the net requirements while considering available warehouse stock and scheduled receipts from purchasing and production During MRP, all levels of the bill of material are planned The output of MRP is a detailed production and/or purchasing plan Detailed planning level ◦ Primary Functions ◦ Monitor inventory stocks ◦ Determine material needs Quantity Timing ◦ Generate purchase or production orders Demand­Independent vs. Dependent Demand­Independent vs. Dependent Independent Demand – Original source of the demand. Dependent Demand – Source of demand resides at another level. Net Requirements Net Requirements Procurement Proposal Firmed Receipts Firmed Orders or Purchase Requisitions Stock Shortage Requirements – Planned Ind. Req., Reservations Sales Orders, Etc. Safety Stock Lot sizing Lot sizing Static ◦ Based on fixed values in the Material Master Periodic ◦ Groups net requirements together from multiple periods Optimum ◦ Calculates the optimum lot size for a several periods of net requirements Procurement Type Procurement Type External Procurement ◦ Purchase Requisition ◦ Purchase Order ◦ Schedule Line Internal Procurement ◦ Planned Order ◦ Production Order ◦ Process Order Multi­Level Scheduling Multi­Level Scheduling Requirements Date Planned Order Purchase Requisition Finished Product Assembly 1 Semi-Finished Good Raw Material Component Time MRP vs. Consumption­Based MRP vs. Consumption­Based Whether or not a material is planned using MRP or Consumption Based is determined by the MRP Type on the MRP1 screen of the Material Master MRP Consumption Based PD – MRP VB – Reorder-Point VSD – Seasonal MRP VV – Forecast Based RP – Replenishment Consumption­Based Consumption­Based Lot Size Reorder Point Safety Stock Replenishment Lead Time Output of MRP Output of MRP MRP In-House Production Planned Order External Procurement Convert to Production Orders Purchase Requisitions Process Orders Purchase Orders Schedule Lines Production and Planning Master Data SAP Implementation EGN 5620 Enterprise Systems Configuration Fall, 2011 Business Process Integration Business Process Integration P S D ata M D Master F I Rules Org Data FI MM PP SD IF FI M M MM P P PP S D SD January 2008 © SAP AG - University Alliances and SAP The Rushmore Group, LLC 2008. All rights reserved. 25 25 Business Process Integration Business Process Integration Rules Master Data Org Data PP P P P PP January 2008 © SAP AG - University Alliances and SAP The Rushmore Group, LLC 2007. All rights reserved. rights 26 Production Process (Make-to-Stock) Capacity Planning Production Proposal (Planning/Other) Order Settlement Schedule and Release Shop Floor Documents Production Process Goods Issue Completion Confirmation Goods Receipt PP: Master Production Schedule (MPS) PP: Master Production Schedule (MPS) MPS allows a company to distinguish planning methods between materials that have a strong influence on profit or use critical resources and those that do not MPS run MPS Items ESET Giftbox Crown Non-MPS Items EPEN Barrel Stand Cartridge Cap Elements of A Production Order Elements of A Production Order Work Center Raw Materials & Sub-Components Bill of Material Production Order Operations Components (Production Parts Production Routing © SAP AG - University Alliances and SAP List) January 2008 The Rushmore Group, LLC 2007. All rights reserved. rights 29 Business Process Integration Business Process Integration Org Data PP P P P PP January 2008 © SAP AG - University Alliances and SAP The Rushmore Group, LLC 2007. All rights reserved. rights 30 Organization Data Organization Data Client Company code Plant Storage location Shipping point Work Center January 2008 © SAP AG - University Alliances and SAP The Rushmore Group, LLC 2007. All rights reserved. rights 31 Work Work Centers Centers Enterprise Structure Enterprise Structure Credit Control Area Client Fiscal Year Variant Chart of Chart Accounts Accounts Company Code Controlling Controlling Area Area Purchasing Organization Plant Purchasing Purchasing Group Group WC 10 WC 20 SL10 SL20 Shipping Shipping Point Point Sales Organization Distribution Distribution Channel Channel Division Sales Area Organization Data ­ Work Center Organization Data ­ Work Center Unique production or assembly area May include ◦ Equipment ◦ Groups of equipment ◦ Production lines ◦ Employees ◦ Groups of employees Operations carried out at work center January 2008 © SAP AG - University Alliances and SAP The Rushmore Group, LLC 2007. All rights reserved. rights 33 Organization Data Organization Data Plant specific organizational units ◦ MRP controller ◦ Production controller/production scheduler/planner group ◦ Person responsible (financially) Non­plant specific organizational units ◦ Capacity planner January 2008 © SAP AG - University Alliances and SAP The Rushmore Group, LLC 2007. All rights reserved. rights 34 Business Process Integration Business Process Integration PP Master Data P P P PP January 2008 © SAP AG - University Alliances and SAP The Rushmore Group, LLC 2007. All rights reserved. rights 35 Master Data for Production Planning Master Data for Production Planning Bill of Material Master Data Work Center Master Data Work Center Control Key Product Routing Material Types Allowed in Production Controlling Activities For Production Activity Prices Materials January 2008 © SAP AG - University Alliances and SAP The Rushmore Group, LLC 2007. All rights reserved. rights 36 Bill of Materials Bill of Materials BOM is a hierarchical structure of the materials needed to produce a finished goods or semi­ finished goods. BOMs in SAP are defined as single­level, but can be constructed multi­level by nesting several single­level BOMs. Nesting refers to a hierarchy in which a bill of materials contains its own bills of materials. January 2008 © SAP AG - University Alliances and SAP The Rushmore Group, LLC 2007. All rights reserved. rights 37 Bill of Material Master Data Bill of Material Master Data Bill of Materials (BOM) are created as single­level or multi­level relationships between one parent material and the sub­component material EPEN Barrel Cap January 2008 Crown Cartridge Band © SAP AG - University Alliances and The Rushmore Group, LLC SAP 2007. All rights reserved. 2007. Clip 38 Bill of Material Master Data Bill of Material Master Data Variant Bill of Materials (BOM) ◦ Several products with a large proportion of identical parts. EPEN - Red Red Cartridge Band January 2008 EPEN - Black Etc. Black Cartridge Band © SAP AG - University Alliances and The Rushmore Group, LLC SAP 2007. All rights reserved. 2007. Etc. 39 Bill of Material Master Data Bill of Material Master Data Multiple versions of Bill Of Materials (BOM) ◦ One product produced from alternative components or processes, where the differences are small (usually the quantity of a component). ◦ BOM 1 = lot size 1 ­ 100 ◦ BOM 2 = lot size 101 – 999 EPEN - Black Black Cartridge (Buy) Band January 2008 EPEN - Black Etc. Etc. © SAP AG - University Alliances and The Rushmore Group, LLC SAP 2007. All rights reserved. 2007. Band Black Cartridge (Make) 40 Bill of Material Master Data Bill of Material Master Data Finished Good Semi-finished goods Raw Material January 2008 Raw Material Raw Material Semi-finished good Raw Material © SAP AG - University Alliances and The Rushmore Group, LLC SAP 2007. All rights reserved. 2007. Raw Material 41 Bill of Material Master Data Bill of Material Master Data January 2008 © SAP AG - University Alliances and SAP The Rushmore Group, LLC 2007. All rights reserved. rights 42 Bill of Material Master Data Bill of Material Master Data January 2008 © SAP AG - University Alliances and SAP The Rushmore Group, LLC 2007. All rights reserved. rights 43 Bill of Material Master Data Bill of Material Master Data BOM in SAP consists of a header section and an item section. Header section includes data that apply to entire BOM, such as finished material number, plant, usage, validity, status, and base quantity. The BOM is valid from the date specified in the header. Usage identifies the purpose for which the BOM can be used. For example, 1 is for production. January 2008 © SAP AG - University Alliances and SAP The Rushmore Group, LLC 2007. All rights reserved. rights 44 Bill of Materials Master Data Bill of Materials Master Data Items section identifies all materials needed to make finished goods or semi­finished goods identified in the header. Item category determines how material is used in the BOM. Data for each item are: ◦ material number, ◦ description, quantity, and ◦ item category. January 2008 © SAP AG - University Alliances and SAP The Rushmore Group, LLC 2007. All rights reserved. rights 45 Bill of Material Master Data Bill of Material Master Data L: Stock item N: Non­stock item R: Variable –size item T: Text item used to include notes and comments within the BOM. Notes may explain how to use the material or identify any unusual assembly requirement. D: Document item used to include document such as engineering drawings, assembly instructions, and photographs. January 2008 © SAP AG - University Alliances and SAP The Rushmore Group, LLC 2007. All rights reserved. rights 46 Bill of Material Master Data Bill of Material Master Data K: Class item used in variant BOMs to identify a class or group of items. A variant BOM is used to create multiple versions. M: Intra material, or phantom items used as a logical grouped set of materials that could collectively be considered as a single material. Phantom material is not an actual material and is mostly temporarily used during production planning. January 2008 © SAP AG - University Alliances and SAP The Rushmore Group, LLC 2007. All rights reserved. rights 47 Bill of Material Master Data Bill of Material Master Data Where is the Bill Of Materials (BOM) used? 1. MRP uses BOM to determine dependent requirements 2. Controlling uses BOM to calculate product costs 3. Production uses BOM to issue the proper quantities of components and raw materials to the shop floor January 2008 © SAP AG - University Alliances and SAP The Rushmore Group, LLC 2007. All rights reserved. rights 48 Work Center Work Center Work center is a location where value­added work needed to produce a material is carried out. A work center can be a machine, a group of machines, an entire production line, a work area, ora person or group of people who are responsible for completing operations. A work center is a resource that can be used for a variety of purposes and for multiple processes. January 2008 © SAP AG - University Alliances and SAP The Rushmore Group, LLC 2007. All rights reserved. rights 49 Work Center Work Center Work center used to define capacities ◦ Labor ◦ Machine ◦ Output ◦ Emissions Capacities used in ◦ Capacity requirements planning (CRP) Detailed scheduling Costing January 2008 © SAP AG - University Alliances and SAP The Rushmore Group, LLC 2007. All rights reserved. rights 50 Work Center Work Center Assigned ◦ Cost center ◦ Human Resources (HR) Qualifications Positions People January 2008 © SAP AG - University Alliances and SAP The Rushmore Group, LLC 2007. All rights reserved. rights 51 Work Center Work Center Work Centers have multiple views of: ◦ Basic data ◦ Default values ◦ Capacity overview ◦ Scheduling ◦ Cost center assignment ◦ Technical data January 2008 © SAP AG - University Alliances and SAP The Rushmore Group, LLC 2007. All rights reserved. rights 52 Work Center Work Center Basic data section: ◦ Name, and description of the work center ◦ Person or group of people who are responsible for completing operations ◦ Task list: a list of operations that are required to accomplish a task. Operations are the specific tasks that must be completed, such as drilling, cutting, assembling. In production, a task list takes the form of a product routing or a master recipe. ◦ Standard value key: used to assign standard or planned values for operations, such as setup and execution time. Companies use these values to calculate costs, execution times, and capacity requirements. January 2008 © SAP AG - University Alliances and SAP The Rushmore Group, LLC 2007. All rights reserved. rights 53 Work Center Work Center January 2008 © SAP AG - University Alliances and SAP The Rushmore Group, LLC 2007. All rights reserved. rights 54 Work Center Work Center Default Values: for operations performed at the work center. Control Keys: specify how an operation or a sub­ operation is scheduling, how costs will be calculated, and how operations will confirmed once they are completed in the work center. Wage data: used by processes in human capital management, such as payroll. Standard value keys: identify the normal time elements – the activities that consume time associated with the work center. Typical time elements are setup time, machine time, labor time, and teardown time. January 2008 © SAP AG - University Alliances and SAP The Rushmore Group, LLC 2007. All rights reserved. rights 55 Work Center Work Center January 2008 © SAP AG - University Alliances and SAP The Rushmore Group, LLC 2007. All rights reserved. rights 56 Work Center Work Center Available capacity defines how much work can be performed at the work center. A work center can include more than one resource or capacity, such as labor and machine. Scheduling basis determines the specific capacity to be utilized for production. January 2008 © SAP AG - University Alliances and SAP The Rushmore Group, LLC 2007. All rights reserved. rights 57 Work Center Work Center January 2008 © SAP AG - University Alliances and SAP The Rushmore Group, LLC 2007. All rights reserved. rights 58 Work Center Work Center January 2008 © SAP AG - University Alliances and SAP The Rushmore Group, LLC 2007. All rights reserved. rights 59 Work Center Work Center A work center is associated with a cost center which is a container for accumulation of costs. Costs associated with operations completed in a work center are calculated using formulas that utilize the costs and standard values associated with each activity type, for example, setup, labor, and machine. January 2008 © SAP AG - University Alliances and SAP The Rushmore Group, LLC 2007. All rights reserved. rights 60 Work Center Work Center January 2008 © SAP AG - University Alliances and SAP The Rushmore Group, LLC 2007. All rights reserved. rights 61 Work Center Control Key Work Center Control Key Scheduling Determine capacity requirements Inspection characteristics required Confirmation required Rework Cost Schedule external operations – std values January 2008 © SAP AG - University Alliances and SAP The Rushmore Group, LLC 2007. All rights reserved. rights 62 Product Routing Product Routing A list of tasks or operations that must be performed to convert a material to a part, component, or product. Routing is a sequence of operations which detail the manufacture of a product Routings are used as a template for production orders and run schedules as well as a basis for product costing. January 2008 © SAP AG - University Alliances and SAP The Rushmore Group, LLC 2007. All rights reserved. rights 63 Routing Routing Routing are used to determine: ◦ Operations ◦ Work centers ◦ Material components ◦ Production resources and tools ◦ Quality Checks January 2008 © SAP AG - University Alliances and SAP The Rushmore Group, LLC 2007. All rights reserved. rights 64 Routing Routing January 2008 © SAP AG - University Alliances and SAP The Rushmore Group, LLC 2007. All rights reserved. rights 65 Routing Routing January 2008 © SAP AG - University Alliances and SAP The Rushmore Group, LLC 2007. All rights reserved. rights 66 Routing Routing January 2008 © SAP AG - University Alliances and SAP The Rushmore Group, LLC 2007. All rights reserved. rights 67 Routing Use Routing Use Routings will be used in ◦ Scheduling (dates, times) ◦ Costing ◦ Capacity planning ◦ Production orders January 2008 © SAP AG - University Alliances and SAP The Rushmore Group, LLC 2007. All rights reserved. rights 68 Routing Routing Standard Sequence Operation 10 Operation 20 Alternate Sequence Operation 10 Operation 20 Parallel Sequence Operation 10 Operation 20 Operation 25 Operation 25 Operation 30 Operation 30 Operation 30 Operation 40 January 2008 Operation 40 Operation 40 © SAP AG - University Alliances and The Rushmore Group, LLC SAP 2007. All rights reserved. 2007. 69 Material Types Allowed In Production Material Types Allowed In Production Multiple material types may be used in a routing/BOM ◦ Raw materials ◦ Semi­finished product ◦ Trading goods are allowed but not standard ◦ Text or Reference materials common January 2008 © SAP AG - University Alliances and SAP The Rushmore Group, LLC 2007. All rights reserved. rights 70 Display Routing List Display Routing List A collective report displaying the available routings and the material allocations to operations Four General Types ◦ Operations Related ◦ Component Related ◦ PRT Related ◦ General List (Operation Control Ticket January 2008 © SAP AG - University Alliances and SAP The Rushmore Group, LLC 2007. All rights reserved. rights 71 Controlling Activities for Production Controlling Activities for Production Used to perform internal cost allocation, where activities by a cost center are measured ◦ Labor time ◦ Machine hours Output activities are valued Allocation of an activity type is always made with the allocation cost element created in activity type planning January 2008 © SAP AG - University Alliances and SAP The Rushmore Group, LLC 2007. All rights reserved. rights 72 Activity Prices Activity Prices Prices (costs) for planned activities ◦ Fixed or Variable Labor = $$/hour Machine = $/hour Overhead = % January 2008 © SAP AG - University Alliances and SAP The Rushmore Group, LLC 2007. All rights reserved. rights 73 Product Group Product Group Aggregate planning that group together materials or other product groups (Product Families) ◦ Manufacturing procedure ◦ Product design ◦ Market niche, etc. Proportional Factors (Percentages for components) Product Groups Product Groups • Multi­level or single­level – A product group is multi­level if it contains other product groups – Lowest level in a product group hierarchy always consists of materials. – A product group is single­level if its members are materials only – A material or product group can be a member of more than one owner product group January 2008 © SAP AG - University Alliances and SAP The Rushmore Group, LLC 2007. All rights reserved. rights 75 Business Process Integration Business Process Integration PP Rules P P P PP January 2008 © SAP AG - University Alliances and SAP The Rushmore Group, LLC 2007. All rights reserved. rights 76 MRP Control Parameters MRP Control Parameters Environment ◦ Number range Master Data ◦ Materials Requirements Planning controllers ◦ Float times Planned Orders ◦ Conversion order type ◦ Dependant requirement availability January 2008 © SAP AG - University Alliances and SAP The Rushmore Group, LLC 2007. All rights reserved. rights 77 MRP Control Parameters (continued) MRP Control Parameters (continued) Planning run ◦ Bill of Material (BOM) selection ◦ External procurement ◦ Planning horizon Availability Check ◦ Material ◦ Production Resource/Tool (PRT ) ◦ Capacity Scheduling Control Parameters January 2008 © SAP AG - University Alliances and SAP The Rushmore Group, LLC 2007. All rights reserved. rights 78 General Planning Parameters General Planning Parameters Order Type Control Parameters ◦ Types of routings, BOM’s per order type: manually or automatically ◦ Availability checking Create Confirmation Parameters ◦ Reservations ◦ Status Updates Define Valuation of Goods Received ◦ Moving Average Price Control evaluation January 2008 © SAP AG - University Alliances and SAP The Rushmore Group, LLC 2007. All rights reserved. rights 79 Material Master Planning Parameters Material Master Planning Parameters Materials Requirements Planning views for materials Work Scheduling views for manufactured products January 2008 © SAP AG - University Alliances and SAP The Rushmore Group, LLC 2007. All rights reserved. rights 80 Planning Production and Master Data PEN, Inc. EGN 5620 Enterprise Systems Configuration Fall, 2011 Pen Inc. Business Module II for Pen Inc. Business Module II for Selling Finished Goods by Production Pre-Sales Activity Sales Order Delivery Availability Check In Inventory NO NO Purchase Requisition Billing Accounts Receivable Goods Issued to Delivery YES Issue Goods to Production Order Inventory Postings Plant or Warehouse Purchase Order General Ledger Accounts Goods from Production Order Goods Receipt Invoice Receipt Accounts Payable Or Planned Order Production Order SAP Completion © SAP AG - University Alliances and The Rushmore Group, LLC 2008. All CJanuary 2008 rights reserved. onfirmation 82 82 Activity Type/Price Planning Activity Type/Price Planning January 2008 © SAP AG - University Alliances and SAP The Rushmore Group, LLC 2007. All rights reserved. rights 83 Production Group Production Group January 2008 © SAP AG - University Alliances and SAP The Rushmore Group, LLC 2007. All rights reserved. rights 84 Orders, orders, orders Orders, orders, orders Planned Order (planning) ◦ A request created in the planning run for a material in the future (converts to either a production or purchase order) Production Order (execution) ◦ A request or instruction internally to produce a specific product at a specific time Purchase Order (execution) ◦ A request or instruction to a vendor for a material or service at a specific time Exercises: Exercises: 212. Create primary cost elements 213. Create secondary cost elements 214. Create cost element groups 215. Create statistical key figure 216. Create controlling document number ranges 217. Define controlling settlement document number ranges 246. Maintain plant parameters for production planning 258. Create vender master records centrally 265. Create bill of materials 266. Create person responsible for work center 267. Create work center location 269. Create capacity 270. Create activity type labor 271. Set activity prices 272. Create work center for production Exercises: Exercises: 273. Create finished products routing 274. Display routing list 275A. Create material master for production group 275B. Assign numbers for product group ...
View Full Document

Ask a homework question - tutors are online