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Introduction to the production planning process with sap

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  • 1. Introduction to theProduction Planning Process with SAP Jean Marc Prigent Consultant LO-PP-MM-WM July 2011
  • 2. Table of ContentsTable of Contents 2Introduction Error! Bookmark not defined.Objectives of the Production Planning process Error! Bookmark not defined.Definition of a few concepts Error! Bookmark not defined. The planning horizon Error! Bookmark not defined. The planning bucket Error! Bookmark not defined. The bottleneck Error! Bookmark not defined. The Materials Requirements Planning (MRP) Error! Bookmark not defined. Planned order versus Production orders Error! Bookmark not defined.Steps to implement the Production Planning process in an Information System Error! Bookmark notdefined. Definition of the structure of the Products, Routings and Bill Of Materials data 3 Customizing of the materials Error! Bookmark not defined. Prerequisites for the Production Planning Error! Bookmark not defined. The Production Planning Process in SAP Error! Bookmark not defined. The Procurement Process Error! Bookmark not defined.
  • 3. Definition of the structure of the Products, Routings and Bill Of Materials dataIt is a sensitive and important step. It is sensitive as the same data can sometimes be used for severaldifferent objectives (Calculation of the Cost Of Goods Sold, declaration of production, valuation of thework in process). It is important because the definition of these data will impact how easy it will be toplan the production.For instance you can define or not a safety stock, define some operations in parallel or not, divide anoperation between work centers, have simultaneously the control on the work centers before or after inthe process,…As a consequence of this step, there will be Bill Of Materials with more or less levels, and the resultingroutings.1st case: metal, chemical, pharmaceutical processesThe phase or operation linked to the process is the strategic one which requires some planning attention(cast, lamination, tank to produce the active principles or tank for liquids in the food industry). It can bea phase among others, or a level of the Bill Of Materials.Once the planning is done on these strategic operations, it has to be transmitted to the upper and lowerlevels of production. For the lower levels, it can be done via a MRP. For the upper level the case isdetailed later on.An interesting technique to simplify the problem of synchronization of the different levels of the Bill OfMaterials consists in having a safety stock corresponding to the imprecision in the synchronization of thesemi finished products.2nd case: production by manufacturing unit with final assemblyIn this case there is not a level of the Bill Of Materials or a work center more strategic than the others.
  • 4. Preview Original paying document published on :http://expertplug.com/materials/training/introduction-to-the-production-planning-process-with-sapYou can find many more full SAP training material and SAP jobs on http://expertplug.com/.ExpertPlug is an SAP marketplace for training materials and an online community of experts. Weoffer a simple way for the global SAP workforce, consulting companies and industry to market theirskills and find quality information.As an SAP Expert, you can also market your SAP skills and make extra revenue by publishing SAPdocuments on http://expertplug.com/.