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Material Management Presented  by : HARPAL SINGH MATERIAL MANAGEMENT - HSS
Content <ul><li>Introduction </li></ul><ul><li>Why Material Management ??? </li></ul><ul><li>Process Flow </li></ul><ul><l...
Introduction <ul><li>SAP MM Module is one of the most important SAP Modules where MM stands for Materials Management , whi...
Why Need MM ??? <ul><li>Amount spend on material is higher than other inputs </li></ul><ul><li>Material offer considerable...
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...
MM Integration SD PP QM PM FI AM CO PS MM Material Management Sales & Distribution Production Planning Quality Management ...
Material Management Component <ul><li>Consumption based planning (MM-CBP) </li></ul><ul><li>Purchasing (MM-PUR)  </li></ul...
Consumption based planning   <ul><li>CBP is based on the past consumption values and uses the forecast or other statistica...
Purchasing <ul><li>Purchasing is a component of Material Management. </li></ul><ul><li>Task of Purchasing as following :- ...
External Service Management <ul><li>SRV is a MM component. It supports the complete cycle of  bid invitation, award / orde...
Inventory Management <ul><li>Task of SAP-IM as following :- </li></ul><ul><li>Management of material stocks on a quantity ...
Logistic Invoice Verification :- <ul><li>It is a component of MM. It is in the logistic invoice verification that incoming...
Vendor Evaluation :- <ul><li>The Vendor Evaluation component supports you in optimizing your procurement processes in the ...
Benefits of MM <ul><li>Material cost can be lowered down </li></ul><ul><li>Controlling of indirect cost  </li></ul><ul><li...
Implementation Challenges Selection of appropriate vendors Management of information Optimizing time and quality for produ...
Q&A MATERIAL MANAGEMENT - HSS
MATERIAL MANAGEMENT - HSS
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Sap MM Presentation

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GIVES A BRIEF DESCRIPTION OF SAP-MM

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  • Hello Harpal Singh,
    I am Avinash can I get complete MM Study Material & step by step procedures could you please send me a soft copy to my mail: avinash_tiwari@hotmail.com. I would be grateful to you if you could send me the complete SAP MM module PDF file & it's step by step procedures it will be very helpful to me has I am interest to learn MM module.
    I am working has a sap end user (Documentation) in micro labs for almost 10yrs, but no source or help.

    Email id:- Avinash_Tiwari@hotmail.com

    thks
    Avinash
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  • nice.
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  • useful one
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  • very much perfect
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  • NICE
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Transcript of "Sap MM Presentation"

  1. 1. Material Management Presented by : HARPAL SINGH MATERIAL MANAGEMENT - HSS
  2. 2. Content <ul><li>Introduction </li></ul><ul><li>Why Material Management ??? </li></ul><ul><li>Process Flow </li></ul><ul><li>Material Management Integration </li></ul><ul><li>Material Management Component </li></ul><ul><li>Benefits of Material Management </li></ul><ul><li>Implementation Challenges </li></ul><ul><li>Q&A </li></ul>MATERIAL MANAGEMENT - HSS
  3. 3. Introduction <ul><li>SAP MM Module is one of the most important SAP Modules where MM stands for Materials Management , which includes </li></ul><ul><li>Requisitions </li></ul><ul><li>Purchase orders </li></ul><ul><li>Goods receipts </li></ul><ul><li>Accounts payable </li></ul><ul><li>Inventory management </li></ul><ul><li>BOM’s </li></ul><ul><li>Master raw materials, finished goods etc </li></ul>MATERIAL MANAGEMENT - HSS
  4. 4. Why Need MM ??? <ul><li>Amount spend on material is higher than other inputs </li></ul><ul><li>Material offer considerable scope for reducing cost and improving profit </li></ul><ul><li>Material add value to the product </li></ul><ul><li>Quality of end product depend on material </li></ul><ul><li>Efficiency of any organization depend upon the availability of right material, in right quantity at right time and at right place. </li></ul>MATERIAL MANAGEMENT - HSS
  5. 5. 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 MATERIAL MANAGEMENT - HSS
  6. 6. 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 - HARPAL
  7. 7. Material Management Component <ul><li>Consumption based planning (MM-CBP) </li></ul><ul><li>Purchasing (MM-PUR) </li></ul><ul><li>External Service Management (MM- SRV) </li></ul><ul><li>Inventory Management (MM-IM) </li></ul><ul><li>Logistic Invoice Verification (MM - IV) </li></ul><ul><li>Vendor Evaluation Management </li></ul>MATERIAL MANAGEMENT - HSS
  8. 8. Consumption based planning <ul><li>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. </li></ul><ul><li>Procedure available for MRP :- </li></ul><ul><li>Reorder point procedure </li></ul><ul><li>Forecast based planning </li></ul><ul><li>Time-phased materials planning </li></ul>MATERIAL MANAGEMENT - HSS
  9. 9. Purchasing <ul><li>Purchasing is a component of Material Management. </li></ul><ul><li>Task of Purchasing as following :- </li></ul><ul><li>External procurement of material & services </li></ul><ul><li>Determination of possible source of supply </li></ul><ul><li>Monitoring deliveries from and payment to vendors. </li></ul>MATERIAL MANAGEMENT - HSS
  10. 10. External Service Management <ul><li>SRV is a MM component. It supports the complete cycle of bid invitation, award / order placement & acceptance of services. </li></ul><ul><li>Task of Purchasing as following :- </li></ul><ul><li>External procurement of material & services </li></ul><ul><li>Determination of possible source of supply </li></ul><ul><li>Monitoring deliveries from and payment to vendors. </li></ul>MATERIAL MANAGEMENT - HSS
  11. 11. Inventory Management <ul><li>Task of SAP-IM as following :- </li></ul><ul><li>Management of material stocks on a quantity and value basis </li></ul><ul><li>Planning, entry and documentation of all goods movement </li></ul><ul><li>Carrying out the physical inventory </li></ul><ul><li>Integration with :- SD, PP, QM & PM </li></ul>MATERIAL MANAGEMENT - HSS
  12. 12. Logistic Invoice Verification :- <ul><li>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. </li></ul><ul><li>Task of SAP-LIV as following :- </li></ul><ul><li>It completes material procurement process, which start with purchase requisition & result in goods receipts. </li></ul><ul><li>It allows invoices, that do not generate in material procurement like expenses to be processed. </li></ul><ul><li>It allows credit memo to be processed. </li></ul><ul><li>Integration with :- FI & CO </li></ul>MATERIAL MANAGEMENT - HSS
  13. 13. Vendor Evaluation :- <ul><li>The Vendor Evaluation component supports you in optimizing your procurement processes in the case of both materials and services. </li></ul><ul><li>Task of SAP-LIV as following :- </li></ul><ul><li>Helps you to select source of supply & monitoring of existing supply relationships </li></ul><ul><li>Vendor reliability </li></ul><ul><li>Criteria :- Price / Quantity / Delivery / General Service Support </li></ul><ul><li>Integration with :- QM & MM </li></ul>MATERIAL MANAGEMENT - HSS
  14. 14. Benefits of MM <ul><li>Material cost can be lowered down </li></ul><ul><li>Controlling of indirect cost </li></ul><ul><li>Risk of Inventory loss minimized </li></ul><ul><li>Reduction in loss of time of direct labor </li></ul><ul><li>Control of manufacturing cycle </li></ul><ul><li>Material congestion in storage places avoided </li></ul><ul><li>Improvement in delivery of the product </li></ul>MATERIAL MANAGEMENT - HSS
  15. 15. Implementation Challenges Selection of appropriate vendors Management of information Optimizing time and quality for product Difficulty in forecast accurate demand MATERIAL MANAGEMENT - HSS
  16. 16. Q&A MATERIAL MANAGEMENT - HSS
  17. 17. MATERIAL MANAGEMENT - HSS

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