Sap Mm

Material Management Present by :- Ravi Jain

Content
Introduction
Why Material Management ???
Process Flow
Material Management Integration
Material Management Component
Benefits of Material Management
Implementation Challenges
Q&A
Thank you !!!
Appendix A - MM Definition
Appendix B – Material Type
Appendix C – MM Terms & Definition
Appendix D – Important MM Tables

Introduction
SAP MM Module is one of the most important SAP Modules where MM stands for Materials Management - underpins the supply chain, including
Requisitions
Purchase orders
Goods receipts
Accounts payable
Inventory management
BOM’s
Master raw materials, finished goods etc

Why Need MM ???
amount spend on material is higher than other inputs
material offer considerable scope for reducing cost and improving profit
material add value to the product
quality of end product depend on material
efficiency of any organization depend upon the availability of right material, in right quantity at right time and at right place.

S U P P I E R S C U S T O M E R R E C I V I N G D I S T R I B T N Purchasing Raw Material Storage Transformation Processes In Process Storage Finish Goods Storage orders Process Flow

MM Integration SD PP QM PM FI AM CO PS MM Material Management Sales & Distribution Production Planning Quality Management Production Management Financial Accounting Asset Management Controls Project System

Material Management Component
Consumption based planning (MM-CBP)
Purchasing (MM-PUR)
External Service Management (MM- SRV)
Inventory Management (MM-IM)
Logistic Invoice Verification (MM - IV)
Vendor Evaluation Management

Consumption based planning
CBP is based on the past consumption values and uses the forecast or other statistical procedure to determine future requirements. It gets trigger when stock level falls below pre-defined reorder points.
Procedure available for MRP :-
Reorder point procedure
Forecast based planning
Time-phased materials planning

Purchasing
Purchasing is a component of Material Management.
Task of Purchasing as following :-
External procurement of material & services
Determination of possible source of supply
Monitoring deliveries from and payment to vendors.
Integration with :- SD, FI & CO

External Service Management
SRV is a MM component. It supports the complete cycle of bid invitation, award / order placement & acceptance of services.
Task of Purchasing as following :-
External procurement of material & services
Determination of possible source of supply
Monitoring deliveries from and payment to vendors.
Integration with :- PM & PS

Inventory Management
Task of SAP-IM as following :-
Management of material stocks on a quantity and value basis
Planning, entry and documentation of all goods movement
Carrying out the physical inventory
Integration with :- SD, PP, QM & PM

Logistic Invoice Verification :-
It is a component of MM. It is in the logistic invoice verification that incoming invoice are verified in terms of content, price and arithmetic.
Task of SAP-IV-LIV as following :-
It completes material procurement process, which start with purchase requisition & result in goods receipts.
It allows invoices, that do not generate in material procurement like expenses to be processed.
It allows credit memo to be processed.
Integration with :- FI & CO

Vendor Evaluation :-
The Vendor Evaluation component supports you in optimizing your procurement processes in the case of both materials and services .
Task of SAP-IV-LIV as following :-
Helps you to select source of supply & monitoring of existing supply relationships
Vendor reliability
Criteria :- Price / Quantity / Delivery / General Service Support
Integration with :- QM & MM

Benefits of MM
Material cost can be lowered down
Controlling of indirect cost
Risk of Inventory loss minimized
Reduction in loss of time of direct labor
Control of manufacturing cycle
Material congestion in storage places avoided
Improvement in delivery of the product

Implementation Challenges Selection of appropriate vendors Management of information Optimizing time and quality for product Difficulty in forecast accurate demand

Q&A I hate it.

Thank you !!!

Appendix I – MM Definition
“ Material management is the grouping of management functions supporting the complete cycle of material flow, from the purchase and the internal control of production material to the planning and control of work in process to the warehouse shipping and distribution of the finished product”. – Thomas f Wallance.
“ Material management is the management of the flow of materials into an organization to the point, where those material are converted into firm's end products”.

Appendix II Material Type
DIEN ---- Services
FERT ---- Finished Product
FHMI ---- Production Resources / tools
HALB ---- Semi finished Products
HAWA ---- Trading Tools
HIBE ---- Operating Supplies
NLAG ---- Non-stock material
ROH ---- Row Material
UNBH ---- Non Valuated Material
VERP ---- Packaging material
WETT ---- Competitive product
http://www.sap-img.com/materials/sap-mm-configuration-tips.htm

Material Master Record
Data record contain all the basic information required to manage a material.
Material Requirement Planning
Term for requirement planning that take into account and plan every future requirement during the creation of order proposal.
Plant
An organization unit for dividing enterprise according to production, procurement, maintenance & material planning.
Storage Location
Warehouse Stock Location
Vendor Master
Contains details about all the vendors within a company.
Goods Receipts
Term for inventory management denoting a physical inward movement of goods or material.
Appendix III – MM Terms Definition

Appendix III – MM Terms Definition
Material Group
Grouping of material and services according to their characteristics.
Material Master Record
Data contains all the basic information required to manage a material.
Release Strategy
Plan define the release code with which a purchase requisition item, a complete purchase requisition or a complete external purchasing document must be release.

Appendix IV – MM Tables Purchasing group T024 Movement type T156 Document header RKPF Material consumption MBEW Material to BOM link MAST Storage location data for material MARD Plant data for material MARC General material data MARA Material description MAKT Purchasing info/organization record EINE Purchasing info record – general data EINA

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Sap Mm

by Ravi Jain on Aug 04, 2009

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