2. AgendaAgenda
Brief introduction of participantsBrief introduction of participants
Understanding ERPUnderstanding ERP
Overview of SAPOverview of SAP
SAP introduction sessionSAP introduction session
SAP PP sessionSAP PP session
5. ERP DefinitionERP Definition
An ERP system is
• A unified environment
• Comprising of key business and management
processes, information blocks and functional areas
• to deliver consistent, reliable and detailed
information
• to facilitate timely and quality business decisions
But, beyond that it is…
6. Why ERPWhy ERP
Before ERPs became
popular, the typical
company had many
specialized
computer systems.
Each system was
specified designed
to serve the needs
of an individual
department
7. Why ERPWhy ERP
One system might
manage accounting.
Another might control
production planning. A
third might serve the
Human Resources
department.
Some large companies
had hundreds of
different systems, and
many companies built
custom systems from
scratch to meet their
business needs.
8. Why ERPWhy ERP
Sometimes different
computer systems
didn't communicate
with each other.
Duplicate information
had to be entered by
hand in each system.
This was slow,
inefficient and subject
to errors.
10. SAP OverviewSAP Overview
SAP – What, How & WhySAP – What, How & Why
--------------------------------------------------------------
SAP R/3 is an Enterprise Resource Planning
application, or ERP.
An ERP is an integrated information system
that usually serves many departments within
a company.
You may hear SAP R/3 called simply SAP or
R/3
11. SAP – What, How & WhySAP – What, How & Why
SAP was founded in 1972 in Mannheim,
Germany.
The name SAP is derived from the
German phrase meaning “Systems,
Applications, and Products in Data
Processing.”
It is pronounced as separate letters, and
not as the word “sap.”
12. SAP – What, How & WhySAP – What, How & Why
As the software is
integrated, information no
longer had to be entered
more than once. Changes
made in one part of the
business were immediately
visible to users working in
other parts of the business,
because the different parts
of SAP's software were in
constant communication.
Users could have better,
more accurate information
with less effort.
16. TRANSACTION CODETRANSACTION CODE
Most transactions within
SAP are associated with
a four-character code
called a transaction code.
This transaction code can
be used in the command
field to jump directly to a
transaction without
having to follow the
navigation path. You will
learn how to do this in a
later lesson.
17. MASTER DATAMASTER DATA
Master data is
important, long-term
data stored within the
SAP system.
Vendors, customers,
plant IDs, the chart of
accounts, and product
numbers are all
examples of
information that is
stored as master data
records
18. DOCUMENTDOCUMENT
A document is data created in
association with a particular
business event or transaction.
Sales orders, purchase orders,
material requisitions, and
general ledger postings are all
examples of documents stored
within SAP.
Every document created in
SAP is assigned a document
number that uniquely
identifies it.
19. SAP Overview - Integration with other Modules
Finance / Asset ManagementFinance / Asset Management
ProcurementProcurement
QualityQuality
Sales LogisticsSales Logistics
ProductionProduction
Project systemsProject systems
21. - Master Data- Master Data
- Material Master- Material Master
- Bill Of Material- Bill Of Material
- Work Centers- Work Centers
- Routings- Routings
- Sales and Operation Planning- Sales and Operation Planning
- Demand Management- Demand Management
- Materials Requirements Planning- Materials Requirements Planning
- Capacity Planning- Capacity Planning
- Production Control- Production Control
ContentsContents
23. Master Data in PPMaster Data in PP
Material MasterMaterial Master
Bills of MaterialBills of Material
Work CentersWork Centers
RoutingsRoutings
24. Master Data in PPMaster Data in PP
Work
Center
Routing
BOM
Process
Order
Material
Master
26. Concept of Material Master inConcept of Material Master in
SAP.SAP.
The material master contains information onThe material master contains information on
all the materials that a company procures,all the materials that a company procures,
produces, stores, and sells.produces, stores, and sells.
The material master is used by all modules inThe material master is used by all modules in
the SAP.the SAP.
Different departments in a company work withDifferent departments in a company work with
the same material, so data in a materialthe same material, so data in a material
master record is subdivided in the form ofmaster record is subdivided in the form of
user departments.user departments.
Material description and base unit of measureMaterial description and base unit of measure
appear in all user departments.appear in all user departments.
28. ViewsViews
Basic dataBasic data
MRP1MRP1
MRP2MRP2
MRP3MRP3
MRP4MRP4
ForecastingForecasting
Work scheduling,Work scheduling,
29. Basic dataBasic data
On this data screen, data that is alsoOn this data screen, data that is also
used by other user departments isused by other user departments is
entered.entered.
Data like description of theData like description of the materialmaterial, base, base
unit of measure, Division, Itemunit of measure, Division, Item
Category, material group,, Weight of theCategory, material group,, Weight of the
item, Document or Drawing No etc areitem, Document or Drawing No etc are
maintained.maintained.
The above data is maintained across twoThe above data is maintained across two
views Basic Data 1&2 views.views Basic Data 1&2 views.
30. Material Requirements Planning (MRP).Material Requirements Planning (MRP).
The following Data relating to MRP isThe following Data relating to MRP is
maintained:maintained:
• PlanningPlanning
• Lot size (Fixed, Variable)Lot size (Fixed, Variable)
• ProcurementProcurement
• Scheduling time(lead times : Planned In-Scheduling time(lead times : Planned In-
house Production Times, Planned Deliveryhouse Production Times, Planned Delivery
times etc.).times etc.).
• Stock levels (Ex Safety Stock)Stock levels (Ex Safety Stock)
• Planning StrategyPlanning Strategy
The above data is maintained in Four screensThe above data is maintained in Four screens
MRP1,MRP2,MRP3,MRP4.MRP1,MRP2,MRP3,MRP4.
31. ForecastingForecasting
Data related to forecasting of material is maintained here.
Consumption values and forecast values as a basis for
calculations are maintained on this screen.
Individual forecast models for a material can be maintained.
32. Work SchedulingWork Scheduling
The following data is maintained onThe following data is maintained on
this screenthis screen ::
• Production scheduler,production schedulerProduction scheduler,production scheduler
profile Serial No Profile.profile Serial No Profile.
• Batch Management (If required).Batch Management (If required).
• The base quantity to which the processingThe base quantity to which the processing
time relates, under Lot size dependent in-time relates, under Lot size dependent in-
house production time.house production time.
33. Production Planning-Bill Of MaterialProduction Planning-Bill Of Material 3333
Production PlanningProduction Planning
Bill Of MaterialBill Of Material
34. Concept of Bill of materials in SAPConcept of Bill of materials in SAP
A bill of material is a complete, formallyA bill of material is a complete, formally
structured list of the components requiredstructured list of the components required
to produce the product or assembly.to produce the product or assembly.
The BOM contains the object number ofThe BOM contains the object number of
each component, together with the quantityeach component, together with the quantity
, unit of measure and item category of, unit of measure and item category of
component.component.
Bills of material (BOMs) contain essentialBills of material (BOMs) contain essential
master data for integrated materialsmaster data for integrated materials
management and control.management and control.
35. BOM UsageBOM Usage
The data stored in bills of material serves as a basisThe data stored in bills of material serves as a basis
for activities such as:for activities such as:
• A design department (working with CAD) can baseA design department (working with CAD) can base
its work on bills of material. You can also create aits work on bills of material. You can also create a
BOM in the R/3 System from your CAD program, viaBOM in the R/3 System from your CAD program, via
the SAP-CAD interface.the SAP-CAD interface.
• A material requirements planning (MRP) departmentA material requirements planning (MRP) department
explodes bills of material on a certain date toexplodes bills of material on a certain date to
calculate order quantities and dates for materials.calculate order quantities and dates for materials.
• A work scheduling department uses bills of materialA work scheduling department uses bills of material
as a basis for operation planning and productionas a basis for operation planning and production
control.control.
• Sales orders, As an aid to data entry. You can alsoSales orders, As an aid to data entry. You can also
create and maintain a BOM specifically for a salescreate and maintain a BOM specifically for a sales
order.order.
• Reservation and goods issueReservation and goods issue
• Product costing, To calculate the costs of materialsProduct costing, To calculate the costs of materials
required for a specific production order.required for a specific production order.
36. Scrap DataScrap Data
R/3 allows you to define different scrap factors forR/3 allows you to define different scrap factors for
BOM components. Three different scrap factorsBOM components. Three different scrap factors
accumulate in MRP:accumulate in MRP:
• Component scrap :Component scrap :
Is defined in the BOM item. It shows the % ofIs defined in the BOM item. It shows the % of
the component that is lost as scrap.the component that is lost as scrap.
• Assembly scrap :Assembly scrap :
Is defined in the BOM header or in the materialIs defined in the BOM header or in the material
master record of the component. It shows themaster record of the component. It shows the
percentage of the finished or semi-finishedpercentage of the finished or semi-finished
product that is lost as scrap due toproduct that is lost as scrap due to
manufacturing problems across all operations.manufacturing problems across all operations.
• Operation scrap :Operation scrap :
Is defined in the BOM item. It shows theIs defined in the BOM item. It shows the
percentage of the component that is lost aspercentage of the component that is lost as
scrap in a specific operation. Operation scrapscrap in a specific operation. Operation scrap
overrides assembly scrap. This option is usefuloverrides assembly scrap. This option is useful
for materials of high value.for materials of high value.
37. Overview of BOM Reporting FunctionsOverview of BOM Reporting Functions
The R/3 System supports the following reportingThe R/3 System supports the following reporting
functions:functions:
Mass Changes : You can use the mass changeMass Changes : You can use the mass change
function to change items in several BOMs atfunction to change items in several BOMs at
once.once.
BOM Explosion: The system determines all theBOM Explosion: The system determines all the
components which are contained in an assembly.components which are contained in an assembly.
BOM level by levelBOM level by level
Multi-level BOMMulti-level BOM
Where-Used List :To determine which BOMs anWhere-Used List :To determine which BOMs an
object is used in.object is used in.
BOM Comparison: Two BOMs can be comparedBOM Comparison: Two BOMs can be compared
for single or multilevel.for single or multilevel.
Displaying Change DocumentsDisplaying Change Documents
39. Work centersWork centers
A work center is a place whereA work center is a place where
production operations areproduction operations are
performedperformed..
• Machines, machine groupsMachines, machine groups
• Employees, groups of employeesEmployees, groups of employees
Together with bills of material and routings,Together with bills of material and routings,
work centers belong to the most importantwork centers belong to the most important
master data in the R/3 and control system.master data in the R/3 and control system.
40. Work center data in R/3Work center data in R/3
The data is grouped together inThe data is grouped together in
screens and screen groups :screens and screen groups :
• Basic DataBasic Data
• Assignments (To cost centers)Assignments (To cost centers)
• CapacitiesCapacities
• SchedulingScheduling
• Default valuesDefault values
• Technical dataTechnical data
41. Basic dataBasic data
In the Basic data screen the following data isIn the Basic data screen the following data is
maintained.maintained.
• Short and long texts for description of work center.Short and long texts for description of work center.
• Various administrative data, such as the personVarious administrative data, such as the person
responsible and the location of the work centerresponsible and the location of the work center
• Usage type: This specifies which type of task lists theUsage type: This specifies which type of task lists the
work center can be used in. (for Production, Maintenance)work center can be used in. (for Production, Maintenance)
• Standard value key:Standard values are planned valuesStandard value key:Standard values are planned values
for the execution of an operation and are maintained infor the execution of an operation and are maintained in
the operation.the operation.
E.g.:set-up and processingE.g.:set-up and processing
The execution time, costs and capacities are calculatedThe execution time, costs and capacities are calculated
in operations using formulae from the work centersin operations using formulae from the work centers
and standard values from the operations.and standard values from the operations.
• Performance Efficiency Rate Key :The performancePerformance Efficiency Rate Key :The performance
efficiency rate key is the ratio between an individual'sefficiency rate key is the ratio between an individual's
actual output and the planned average output .actual output and the planned average output .
42. Standard available capacityStandard available capacity
Standard available capacity isStandard available capacity is
used, among other things, forused, among other things, for
calculating execution time in acalculating execution time in a
routing without reference to anrouting without reference to an
orderorder
• It is valid indefinitely.It is valid indefinitely.
• It has a fixed working timeIt has a fixed working time
• It is valid on all working days in theIt is valid on all working days in the
factory calendarfactory calendar
43. Units of Measurement for AvailableUnits of Measurement for Available
CapacityCapacity
The base unit of measure for theThe base unit of measure for the
available capacity must be a unit withavailable capacity must be a unit with
dimension "time".dimension "time".
the available capacity can bethe available capacity can be
expressed in any unit for instance inexpressed in any unit for instance in
“numbers".“numbers".
A conversion factor must be specified ,A conversion factor must be specified ,
that is how many units of the newthat is how many units of the new
dimension correspond to a particulardimension correspond to a particular
period of time, for instance 1 number =period of time, for instance 1 number =
30 minutes.30 minutes.
44. Scheduling DataScheduling Data
FormulasFormulas
• Formulas are used to calculate theFormulas are used to calculate the
execution times of operations inexecution times of operations in
production orders using standard valuesproduction orders using standard values
Formulas are used in the work center toFormulas are used in the work center to
calculate the following data in costing,calculate the following data in costing,
scheduling and capacity planning:scheduling and capacity planning:
• CostsCosts
• Execution times for production ordersExecution times for production orders
• Internal processing times for networks andInternal processing times for networks and
maintenance ordersmaintenance orders
• Capacity requirements.Capacity requirements.
46. Cost center dataCost center data
Work center is assigned to activityWork center is assigned to activity
typestypes..
Activity types are used to describeActivity types are used to describe
the various forms of activity thatthe various forms of activity that
are performed at a cost center.are performed at a cost center.
The activity types are used toThe activity types are used to
calculate the costs for thesecalculate the costs for these
activities.activities.
49. ROUTINGS in SAP R/3 SYSTEM.ROUTINGS in SAP R/3 SYSTEM.
A routing is a description ofA routing is a description of
• Which operations (process steps) have to be carried outWhich operations (process steps) have to be carried out
• The order in which they are carried out,The order in which they are carried out,
• Information about the operations .Information about the operations .
• Details about the work centers at which they are carried outDetails about the work centers at which they are carried out
• About the required production resources and tools (includesAbout the required production resources and tools (includes
jigs and fixtures).jigs and fixtures).
• Standard values for the execution of individual operationsStandard values for the execution of individual operations..
• Quality Inspection to be carried out for each operationQuality Inspection to be carried out for each operation
A routing is used as a source for creating aA routing is used as a source for creating a productionproduction
order.order.
51. External Processing DataExternal Processing Data
Operations or sub-operations,Operations or sub-operations,
carried out outside of your companycarried out outside of your company
by a vendor is External processing .by a vendor is External processing .
When a production order is createdWhen a production order is created
the system automatically creates athe system automatically creates a
purchase requisition for thepurchase requisition for the
operation or sub-operation foroperation or sub-operation for
External OperationExternal Operation
An operation or sub-operation isAn operation or sub-operation is
processed externally is decided byprocessed externally is decided by
itsits control keycontrol key..
52. Maintaining Material ComponentsMaintaining Material Components
Materials are to be made availableMaterials are to be made available
in a production process.in a production process.
The following data already exists inThe following data already exists in
the system:the system:
• The operations in the routingThe operations in the routing
• The master record for the material to beThe master record for the material to be
producedproduced
• The bill of material (BOM) for the materialThe bill of material (BOM) for the material
to be producedto be produced
53. Production Resources/ToolsProduction Resources/Tools
Production Resource/Tool(PRT) is aProduction Resource/Tool(PRT) is a
moveable operating resource used inmoveable operating resource used in
production or plant maintenance.production or plant maintenance.
Production resources/tools can beProduction resources/tools can be
assigned to operation, activities orassigned to operation, activities or
phases in task lists.phases in task lists.
Production resources/tools that are usedProduction resources/tools that are used
for testing during production, can befor testing during production, can be
assigned to the corresponding inspectionassigned to the corresponding inspection
characteristic in the inspection plan.characteristic in the inspection plan.
57. CONCEPTS of SOP.CONCEPTS of SOP.
Sales & Operations Planning (SOP) is a flexibleSales & Operations Planning (SOP) is a flexible
forecasting and planning toolforecasting and planning tool
SOP constitutes the planning functionality in SAP.SOP constitutes the planning functionality in SAP.
SOP is used to perform company’s sales andSOP is used to perform company’s sales and
production operations Sales, production targetsproduction operations Sales, production targets
can be set on the basis of historical, existing, andcan be set on the basis of historical, existing, and
estimated future data.estimated future data.
Rough-cut planning can be carried out toRough-cut planning can be carried out to
determine the amounts of the capacities and otherdetermine the amounts of the capacities and other
resources required to meet these targets.resources required to meet these targets.
SOP plans are passed on to Demand ManagementSOP plans are passed on to Demand Management
(PP-MP-DEM) in the form of independent(PP-MP-DEM) in the form of independent
requirements.requirements.
This data is fed to Material Requirements PlanningThis data is fed to Material Requirements Planning
(PP-MRP).(PP-MRP).
58. Transfer to Demand Management.Transfer to Demand Management.
Demand Management determinesDemand Management determines
the requirement dates andthe requirement dates and
requirement quantities forrequirement quantities for
important assemblies and specifiesimportant assemblies and specifies
the strategies for planning andthe strategies for planning and
producing / procuring finishedproducing / procuring finished
products in the form of plannedproducts in the form of planned
independent requirements.independent requirements.
This ends the phase of SOP.This ends the phase of SOP.
59. Demand ManagementDemand Management
The function of Demand Management is to determineThe function of Demand Management is to determine
requirement quantities and delivery dates for atyerials /requirement quantities and delivery dates for atyerials /
Components and important assemblies.Components and important assemblies.
• The result of Demand Management is the demand program.The result of Demand Management is the demand program.
The demand program is created in the form of plannedThe demand program is created in the form of planned
independent requirements.independent requirements.
Demand Management uses planned independentDemand Management uses planned independent
requirements and customer requirements. Customerrequirements and customer requirements. Customer
requirements are created in sales order management.requirements are created in sales order management.
To create the demand program for a material , planningTo create the demand program for a material , planning
strategy must be defined for it.strategy must be defined for it.
Planning strategies represent the methods of productionPlanning strategies represent the methods of production
for planning and manufacturing or procuring a product.for planning and manufacturing or procuring a product.
61. Material Requirements Planning in R/3Material Requirements Planning in R/3
Functions of material requirements planning isFunctions of material requirements planning is
• To guarantee material availability.To guarantee material availability.
• It is used to procure or produce the requirementIt is used to procure or produce the requirement
quantities on time both for internal purposes and forquantities on time both for internal purposes and for
sales and distribution.sales and distribution.
• Monitoring of stocks, creation of order proposals forMonitoring of stocks, creation of order proposals for
purchasing and production.purchasing and production.
• Determines any shortages and create the appropriateDetermines any shortages and create the appropriate
procurement elements.procurement elements.
• Create messages that inform the MRP controller ofCreate messages that inform the MRP controller of
critical parts and exceptional situations so that thecritical parts and exceptional situations so that the
MRP controller can quickly reprocess the results of theMRP controller can quickly reprocess the results of the
automatic planning run in the specific area withautomatic planning run in the specific area with
problems.problems.
62. MASTER DATA FOR MRPMASTER DATA FOR MRP
• Material MasterMaterial Master
• BOMsBOMs
• Work CentersWork Centers
• RoutingsRoutings
• Demand ManagementDemand Management
• Sales and Distribution, if necessarySales and Distribution, if necessary
63. Concepts of MRPConcepts of MRP
Single-Item or Total PlanningSingle-Item or Total Planning. For an individual material,. For an individual material,
planning is referred to asplanning is referred to as single-item planningsingle-item planning. For a. For a
certain plant, where all materials to be planned arecertain plant, where all materials to be planned are
included, it is referred to asincluded, it is referred to as total planningtotal planning..
Scope of the Planning RunScope of the Planning Run
• Regenerative planning: All materials are planned for a plant.Regenerative planning: All materials are planned for a plant.
Usually, the regenerative planning run is only carried out inUsually, the regenerative planning run is only carried out in
the implementation stages.the implementation stages.
• Net change planning: only materials which are included inNet change planning: only materials which are included in
the planning run are those which have undergone a changethe planning run are those which have undergone a change
relevant to MRP since the last planning run.relevant to MRP since the last planning run.
64. Lot-Sizing ProceduresLot-Sizing Procedures
• Static lot-sizing procedures:Using quantity specificationsStatic lot-sizing procedures:Using quantity specifications
entered in the material master record.entered in the material master record.
Lot for lot order quantityLot for lot order quantity
Fixed lot sizeFixed lot size
Replenish up to maximum stock levelReplenish up to maximum stock level
Planning Time FencePlanning Time Fence
• To protect the master plan from any automatic changes toTo protect the master plan from any automatic changes to
master schedule items in the near future by using a planningmaster schedule items in the near future by using a planning
time fence.time fence.
Manual Reorder Point PlanningManual Reorder Point Planning
• Specify both the reorder level and the safety stock levelSpecify both the reorder level and the safety stock level
manually in the material master record.manually in the material master record.
Automatic Reorder Point PlanningAutomatic Reorder Point Planning
• Both the reorder level and the safety stock level are determinedBoth the reorder level and the safety stock level are determined
by the integrated forecasting program , using past pastby the integrated forecasting program , using past past
consumption data (historical data) to forecast futureconsumption data (historical data) to forecast future
requirements.requirements.
Concepts of MRPConcepts of MRP
65. Role of MRP controllerRole of MRP controller
The MRP controller is responsible for all activities forThe MRP controller is responsible for all activities for
specifying the type, quantity and time of the requirementsspecifying the type, quantity and time of the requirements
He must also confirm when and for what quantity an orderHe must also confirm when and for what quantity an order
proposal has to be created to cover these requirements.proposal has to be created to cover these requirements.
He is provided with the information on stocks, stockHe is provided with the information on stocks, stock
reservation and stock on order to calculate quantities and hereservation and stock on order to calculate quantities and he
needs all the information on lead times and procurementneeds all the information on lead times and procurement
times to calculate dates.times to calculate dates.
The MRP controller determines a suitable MRP and lot-sizingThe MRP controller determines a suitable MRP and lot-sizing
procedure for material to determine procurement proposals.procedure for material to determine procurement proposals.
The planning run in MRP determines any shortages andThe planning run in MRP determines any shortages and
creates the appropriate procurement elements.creates the appropriate procurement elements.
The system creates messages that inform the MRP controllerThe system creates messages that inform the MRP controller
of critical parts and exceptional situations so that the MRPof critical parts and exceptional situations so that the MRP
controller can quickly reprocess the results of the planningcontroller can quickly reprocess the results of the planning
run in the specific area with problems.run in the specific area with problems.
66. Role of MRP controller (cont..)Role of MRP controller (cont..)
The most important exception messages areThe most important exception messages are
rescheduling and reversal proposals. These messagesrescheduling and reversal proposals. These messages
refer to receipt components that cannot automaticallyrefer to receipt components that cannot automatically
be changed by the system (for example, productionbe changed by the system (for example, production
orders or purchase orders).orders or purchase orders).
In the SAP system, new dates are also proposed forIn the SAP system, new dates are also proposed for
firmed order proposals if the requirements situationfirmed order proposals if the requirements situation
has changed since the order proposal was firmed.has changed since the order proposal was firmed.
In case of capacity planing the MRP controller receivesIn case of capacity planing the MRP controller receives
the information on possible bottlenecks and overloadsthe information on possible bottlenecks and overloads
from the comparison of the available capacity with thefrom the comparison of the available capacity with the
capacity requirements. As a result, planned orders cancapacity requirements. As a result, planned orders can
be re-planned in the planning run before the masterbe re-planned in the planning run before the master
plan is passed on to production.plan is passed on to production.
Exception messages provide information that refer to aException messages provide information that refer to a
situation that may require attention, for example, startsituation that may require attention, for example, start
date of the planned order in past, stock level fallendate of the planned order in past, stock level fallen
below the safety stock level, and so on.below the safety stock level, and so on.
67. During availability check In the planning results and inDuring availability check In the planning results and in
the evaluations of the planning run, the MRPthe evaluations of the planning run, the MRP
controller can use the ATP quantity to determinecontroller can use the ATP quantity to determine
whether all issues are covered by the master plan andwhether all issues are covered by the master plan and
how many of the receipts are still open for new issueshow many of the receipts are still open for new issues
(such as sales orders) that may arise.(such as sales orders) that may arise.
This provides the MRP controller with all theThis provides the MRP controller with all the
information he requires for deciding whether theinformation he requires for deciding whether the
master plan has to be changed.master plan has to be changed.
After the planning run, the MRP controller can checkAfter the planning run, the MRP controller can check
and edit the order proposals created using the variousand edit the order proposals created using the various
evaluation functions available.evaluation functions available.
The MRP controller can also firm order proposals soThe MRP controller can also firm order proposals so
that the system makes no changes to them in thethat the system makes no changes to them in the
next planning run.next planning run.
Role of MRP controller (cont..)Role of MRP controller (cont..)
69. Capacity PlanningCapacity Planning
Capacity planning enables use of resourcesCapacity planning enables use of resources
andand
• Comparing available capacity and capacity requirements,Comparing available capacity and capacity requirements,
displayed in lists or graphics.displayed in lists or graphics.
• Allotting available capacities to requirements.Allotting available capacities to requirements.
• Selection of appropriate resources.Selection of appropriate resources.
Capacity Requirements:Capacity Requirements:
• Calculating the capacity requirements of an operation forCalculating the capacity requirements of an operation for
manufacturing a material takes place in scheduling usingmanufacturing a material takes place in scheduling using
formulas in the work centerformulas in the work center
• Orders generate capacity requirements and thus a load onOrders generate capacity requirements and thus a load on
the resources(work centers) that are to process them.the resources(work centers) that are to process them.
The following types of orders are relevant:The following types of orders are relevant:
• Production orders in Shop Floor Control (SFC).Production orders in Shop Floor Control (SFC).
• Planned orders .Planned orders .
71. Scope of functions in capacity evaluationScope of functions in capacity evaluation
• Gives an overview of the load situation of selected workGives an overview of the load situation of selected work
centers .centers .
• This is a list predefined by SAP showing data onThis is a list predefined by SAP showing data on
the capacity situation at work centersthe capacity situation at work centers
• Columns displayed:Columns displayed:
• PeriodPeriod
• Capacity requirements in the periodCapacity requirements in the period
• Available capacity in the periodAvailable capacity in the period
• Capacity load (capacityCapacity load (capacity
requirements/available capacity inrequirements/available capacity in
percentage terms) in the periodpercentage terms) in the period
• The various evaluations can be displayed both inThe various evaluations can be displayed both in
tabular and graphical form.tabular and graphical form.
• The SAP-Gantt diagram gives you an overview ofThe SAP-Gantt diagram gives you an overview of
72. Capacity LevelingCapacity Leveling
Capacity leveling is used in a company withCapacity leveling is used in a company with
the following objectives:the following objectives:
• Leveling overloads and underloads at workLeveling overloads and underloads at work
centerscenters
• Achieving commitment of machines andAchieving commitment of machines and
production linesproduction lines
• Selecting appropriate resourcesSelecting appropriate resources
Operations are dispatched to the time when thereOperations are dispatched to the time when there
is sufficient capacity for them to be executedis sufficient capacity for them to be executed
In the dialog box Dispatch manually you can enterIn the dialog box Dispatch manually you can enter
the date and the time when the operation is tothe date and the time when the operation is to
start or finish as well as the work center.start or finish as well as the work center.
An operation can be dispatch to a different workAn operation can be dispatch to a different work
center from the one to which it is planned.center from the one to which it is planned.
74. Production OrdersProduction Orders
Production orders are used to controlProduction orders are used to control
production within a company.production within a company.
A production order definesA production order defines
• Which material is to be processed orWhich material is to be processed or
produced,produced,
• At which location I.e work center,At which location I.e work center,
• At what time (When to produce ?),At what time (When to produce ?),
• How much work (quantity) is required,How much work (quantity) is required,
• Which materials are required,Which materials are required,
• Which resources are to be used andWhich resources are to be used and
• How the order costs are to be settled.How the order costs are to be settled.
76. Creation and release of Production OrderCreation and release of Production Order
An order can be generated in the following ways:An order can be generated in the following ways:
• By converting a planned order to a production orderBy converting a planned order to a production order
• Without any previous requirement, that is by creating itWithout any previous requirement, that is by creating it
manuallymanually
When a production order is created the followingWhen a production order is created the following
actions are carried out:actions are carried out:
• A routing is selected, its operations and sequences areA routing is selected, its operations and sequences are
transferred to the order.transferred to the order.
• The bill of materials is exploded and the items in the billThe bill of materials is exploded and the items in the bill
of material are transferred to the order.of material are transferred to the order.
• Reservations are generated for bill of material items heldReservations are generated for bill of material items held
in Stock.in Stock.
• The planned costs for the order are generated.The planned costs for the order are generated.
• The capacity requirements are generated for the workThe capacity requirements are generated for the work
centers.centers.
• Purchase requisitions are generated for non-stock itemsPurchase requisitions are generated for non-stock items
and externally-processed operations.and externally-processed operations.
77. Other data of Production orderOther data of Production order
• Production resources/toolsProduction resources/tools
Production resources/tools (PRTs) are, inProduction resources/tools (PRTs) are, in
contrast to machines and fixed assets, moveablecontrast to machines and fixed assets, moveable
resources that are not tied to a particularresources that are not tied to a particular
location and can be used several times. In thelocation and can be used several times. In the
production order production resources/toolsproduction order production resources/tools
must always be allocated to a specific operation.must always be allocated to a specific operation.
However, the allocation can already take place inHowever, the allocation can already take place in
the routing.the routing.
78. Checking the Availability of MaterialChecking the Availability of Material
Before you start with production, checkBefore you start with production, check
can be done whether all the materialcan be done whether all the material
components allocated to the productioncomponents allocated to the production
order are available on the calculatedorder are available on the calculated
requirements dates.requirements dates.
In a production order, the system canIn a production order, the system can
only check a material component, if it isonly check a material component, if it is
• kept in stockkept in stock
• not a phantom itemnot a phantom item
• not a bulk materialnot a bulk material
79. Release of production orderRelease of production order
The following restrictions apply to a production order with theThe following restrictions apply to a production order with the
status "created” and which is not released.status "created” and which is not released.
• Completion confirmations cannot yet be carried outCompletion confirmations cannot yet be carried out
for the order.for the order.
• Shop papers cannot be printed.Shop papers cannot be printed.
• Stock movements I.e goods issues, receipts cannotStock movements I.e goods issues, receipts cannot
be carried out for the order.be carried out for the order.
The release of the order cancels these restrictions.The release of the order cancels these restrictions.
Printing orders is possible once the order is released.Printing orders is possible once the order is released.
Shopfloor papers include:Shopfloor papers include:
• operation control ticketoperation control ticket
• job ticketjob ticket
• pick listpick list
• time tickettime ticket
• confirmation slipconfirmation slip
80. ConfirmationsConfirmations
Part of order monitoring, this documents thePart of order monitoring, this documents the
processing status of operations or sub-processing status of operations or sub-
operations. In the SAP System, a distinctionoperations. In the SAP System, a distinction
is made between partial and finalis made between partial and final
confirmations.confirmations.
With confirmation you specifyWith confirmation you specify
• The quantity in an operation that was produced as yield,The quantity in an operation that was produced as yield,
scrap and the quantity to be reworkedscrap and the quantity to be reworked
• DatesDates
• How much work was actually doneHow much work was actually done
• Which work center was used for the operationWhich work center was used for the operation
• Reason for varianceReason for variance
Usually confirmations are made forUsually confirmations are made for
• An orderAn order
• An operationAn operation
81. Order SettlementOrder Settlement
When a production order is settled, the actualWhen a production order is settled, the actual
costs incurred for the order are settled to one orcosts incurred for the order are settled to one or
more receiver cost-objects (for example, to themore receiver cost-objects (for example, to the
account for the material produced or to a salesaccount for the material produced or to a sales
order).order).
If the costs for the production order are settled toIf the costs for the production order are settled to
a material account, the order is credited eacha material account, the order is credited each
time material is delivered to stock. The materialtime material is delivered to stock. The material
stock account is debited accordingly.stock account is debited accordingly.
If the costs for the production order are settled toIf the costs for the production order are settled to
another receiver (for example to a sales order),another receiver (for example to a sales order),
the order is credited automatically at the time ofthe order is credited automatically at the time of
settlement.settlement.
83. Increase awareness about:
the cross-functional implications, system checks and
the results of the transactions
ObjectiveObjective
84. Production Order CreationProduction Order Creation
A production orderdefinesA production orderdefines
Which material is to be processed or producedWhich material is to be processed or produced
At which location I.e work center.At which location I.e work center.
At what time( when to produce ? )At what time( when to produce ? )
How much work(quantity) is required.How much work(quantity) is required.
Which resources/work centers are to be used andWhich resources/work centers are to be used and
How the order costs are to be settled.How the order costs are to be settled.
86. Production Order CreationProduction Order Creation
When a production orderis created the following actionsWhen a production orderis created the following actions
are carried out:are carried out:
A routing is selected, its operations and sequences areA routing is selected, its operations and sequences are
Transferred to the order.Transferred to the order.
The bill of materials is exploded and the items in the billThe bill of materials is exploded and the items in the bill
of material are transferred to the order.of material are transferred to the order.
87. Production Order CreationProduction Order Creation
When a production orderis created the following actionsWhen a production orderis created the following actions
are carried out:are carried out:
The planned costs for the order are generated.The planned costs for the order are generated.
The capacity requirements are generated for the workThe capacity requirements are generated for the work
centers.centers.
Purchase requisitions are generated for non-stock itemsPurchase requisitions are generated for non-stock items
and externally-processed operations.and externally-processed operations.
88. Process Order CreationProcess Order Creation
DataData
• HeaderHeader: Quantities, dates and scheduling data.: Quantities, dates and scheduling data.
• AllocationAllocation: Inspection Lot, Created/changed: Inspection Lot, Created/changed
by, responsibility, plants, other assignmentsby, responsibility, plants, other assignments
• Goods receipt:Goods receipt: Tolerances, receipt and deliveryTolerances, receipt and delivery
• Master data:Master data: Recipe, production version,Recipe, production version,
costing datacosting data
89. Production Order CreationProduction Order Creation
The following information is listed for everyThe following information is listed for every
operation:operation:
TheThe operation numberoperation number (this number specifies the(this number specifies the
sequence in which operations are processed).sequence in which operations are processed).
The work centerThe work center where the operation is to bewhere the operation is to be
executedexecuted
TheThe control keycontrol key that determines how the operationthat determines how the operation
is to be used (for example, whether it must beis to be used (for example, whether it must be
confirmed, whether it can be scheduled, whether itconfirmed, whether it can be scheduled, whether it
can be printed, and so on)can be printed, and so on)
The currentThe current statusstatus of the operation (for example,of the operation (for example,
whether it has already been created or released)whether it has already been created or released)
AA short descriptionshort description of the operationof the operation
90. Production Order CreationProduction Order Creation
If a bill of material exists for the material to beIf a bill of material exists for the material to be
produced, the BOM items contained in the bill ofproduced, the BOM items contained in the bill of
material are automatically taken over into thematerial are automatically taken over into the
production order as components.production order as components.
91. Production Order ConfirmationProduction Order Confirmation
A confirmation documents the stateA confirmation documents the state
processing of orders, operations, sub-processing of orders, operations, sub-
operations and individual capacities. It is anoperations and individual capacities. It is an
instrument for controlling orders.instrument for controlling orders.
With confirmation you specifyWith confirmation you specify
• The quantity in an operation that wasThe quantity in an operation that was
produced as yieldproduced as yield
• datesdates
• How much duration was requiredHow much duration was required
• Which work center was used for theWhich work center was used for the
operationoperation
• reworkrework
• reasons for deviationreasons for deviation
92. Production Order ConfirmationProduction Order Confirmation
Usually confirmations are made forUsually confirmations are made for
• An orderAn order
• An operationAn operation
93. Production Order ConfirmationProduction Order Confirmation
Confirmations Result inConfirmations Result in
a reduction in the capacity load on the resourcea reduction in the capacity load on the resource
an update of the costs, based on the confirmedan update of the costs, based on the confirmed
datadata
an update of the order data, such as times oran update of the order data, such as times or
order statusorder status
withdrawal postings for backflushed componentswithdrawal postings for backflushed components
an automatic goods receiptan automatic goods receipt
94. Goods MovementGoods Movement
Before you can start producing a material, all the necessary
material components have to be issued from stock via goods
issues. The delivery to stock of the manufactured material is
documented in the system via a goods receipt. :
A material document is created to record the goods
movement.
The stock quantities of the material are updated.
The stock values are updated in the material master record and
the stock/consumption accounts are updated.
Enter objectives that you can measure. Examples are: “demonstrate, list, describe, perform, create.” Do not use terms that you cannot measure, such as “understand, know, comprehend.”
