SlideShare a Scribd company logo
1 of 100
PRODUCTION PLANNING MODULE
PP FI CO SD MM PM QM PS HR
Manufacturing Planning and Execution Organizational and Master Data Business Process for Manufacturing Planning and Execution Reporting and Analysis
Manufacturing Planning and Execution Sales Info System CO/PA Forecasting Procurement Sales & Oper. Planning Demand Mgmt MPS/MRP Material planning Manufacturing Execution Order  Settlement Planning Process Execution Process
Manufacturing Planning and Execution Requirement from sales/marketing Production Planning Check Availability Components Capacity Run Schedule Qtys Sch & Cap Levelling Mfg. Execution Backflushing Receipt of Fin Goods In Stores Shift dates /  Provide Addl. capacities Purchasing yes no no yes REM
Manufacturing Planning and Execution Requirement from sales/marketing Production Planning Check Availability Components Capacity Production Order Sch & Cap Levelling Mfg. Execution Production Confirmation Receipt of Fin Goods In Stores Shift dates /  Provide Addl. capacities Purchasing yes no no yes Discrete
Manufacturing Planning and Execution ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],COMPONENTS
Manufacturing Planning and Execution ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Manufacturing Planning and Execution ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Manufacturing Planning and Execution
[object Object],[object Object],[object Object],[object Object],Manufacturing Planning and Execution
Manufacturing Planning and Execution STANDARD PRODUCTION PLANNING REPORTS Stock/Requirements List Lists the latest stock/requirement position of a material in the plant i.e. planned orders, production orders,etc. Production Plan This report lists the monthly production plans – material and plant wise . Orders This report lists the orders pending/completed for a material material wise or work center wise..
Manufacturing Planning and Execution STANDARD PRODUCTION PLANNING REPORTS Quantity produced This report lists the quantity of the material produced during the  Period in question. Work center Loads This report lists the available capacities, required capacities, remaining available capacities and %load for the work center. Consumption Lists the consumption of a material for the period in question.
Backlogs Lists the backlog of the load at a work center for the period in question. Missing parts Lists the missing parts that are required for the production of a material. Manufacturing Planning and Execution STANDARD PRODUCTION PLANNING REPORTS
Production Planning Basic Data Routings Work Centers Materials Capacities Inspection Plans Production Facilities Bills of Material PP Basic Data Production  Resources/Tools F06010
SAP R/3 Integration Model Sales & Distribution Production Planning Materials Management Finance & Controlling Customer Sales Order Shipment Receivable Accounts / Cash Receipt Credit Limit Material Availability Check Transfer of Requirements Goods Issue to SO Goods Receipt Invoice Receipt Purchase Order Accounts Payable Invoice Accounting Document Production Cost Production Order Production Order Receipt Sales Forecast / Plan Vendor
Organizational Structures in R/3 Cost accounting Accounts Internal logistics (MRP/Production) Inventory management Group Controlling areas Sales organizations Company codes Valuation areas Plants Storage locations/batches/special stocks External logistics Purchasing organizations Levels Views
Material Master Data General Data St. Loc. Specific Data  Plant Specific Data Sales Specific Data Material Master Data applicable  throughout the client e.g. Material number Description Units of measure Weight Volume Product hierarchy Data dependent on sales organization and distribution channel e.g. Delivering plant Sales text Sales units  Shipping data Division Data relevant for planning and production e.g. MRP profile Production costs Planning data Valuation Data referring to storage and inventory management e.g. Quantities Special stock Warehouse  attributes
Material Types in the Standard SAP Material Type DIEN ERSA FERT HALB HAWA HIBE LEER NLAG ROH VERP WETT PROD Service Spare Part Finished Product Semi-finished Product Trading Good Operating Supply Empty Containers Non stock Item Raw Material Packaging Competitor Product Production Resources/ Tools Description
Product Data Engineering Design Sales  Production Stock Finance Purchasing ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Master Data Views
Engineering Design Sales  Production Stock Finance Purchasing Examples of How Data is Used   Texts copied to purchase orders Maintains stock levels by plant, storage location, and batch Data used to calculate MRP lead times Controls customer  ordering rules for material Controls which General Ledger Account is updated Material description used in reporting Product Data
Bills of Material Simple BOM Variant BOM Multiple BOM Simple BOM representing single material Similar materials represented by variants on one BOM  BOM representing a material which can be made up of multiple compositions e.g. different components and quantities
Bill of Material Validity ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
BOM Structure BOM Header Plant Assignment Validity Period Release Indicator Stock Items Non-stock Items Variable Size Items Document Items Text Items Additional component details e.g. installation points for components Item 10 Item 20 Item 30 Sub Item 10 Sub Item 20
Bill of Material Glossary ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
[object Object],[object Object],[object Object],[object Object],Bill of Material Glossary (cont.) ,[object Object],[object Object],[object Object],[object Object]
[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Bill of Material Glossary (cont.)
 
Assembly Line Machines People Production Line Capacity  Requirements  Planning Scheduling,  Execution Times Costing Work Centers Work  Centers Cost  Center
Work Centers and Routings Routing Operation 10 Operation 20 Operation 30 Work Center W1 Cost Center 100 Assembly Cost Centre 200 Work Center W2 Finishing Cost Center 200 Work Center W1 Cost Center 100 Assembly
Work Center Category ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Cost Center Assignment to Work Center for Operation Costing Cost Center Oper 0010 Oper 0020 Oper 0030 Oper 0040 Routing with standard values Set Up (SET) Machine (MACH) Labor (LAB) Work Center with Activities during production Activity Rates Set Up  $70.00 Mach  $60.00 Labor  $80.00 Overhead  $70.00
Work Center Capacity Oper 0010 Oper 0020 Oper 0030 Oper 0040 Routing with standard values Set up  Formula Machine Time Formula Teardown  Formula Work Center Formulas Set up  1.0 hrs Machine  5.5 hrs Teardown  .5 hrs Operation Std Values Work Center Schedule Use of Formulas in Work Centers
8 hrs 1 hr 7 hrs 1 hr 6 hrs Working Hours Break Time Working Hours less Breaks Planned Downtime Productive Working Hours Available Capacity at a Work Center
Routing Structure Views Routing Operation 30 Operation 20 Operation 10 Work Centre: PP-ASSEM Control Key: - Time Tkts - Costing Operation Text: Pre-assemble frame Std Values: Lab:10 mins Mach:10 mins Materials Components BOM Process Resource Tool (PRT)
BOM Groups Production Master Data Materials and PRTs Bills of  Material Routings Work Centers Routing Groups Cost Centers Components Allocated to Operations Item Category Material Type W/C Category
Operation Operation types (Main) operation Sub-operation ,[object Object],[object Object],[object Object],[object Object],The control key defines whether completion confirmations and  costing are carried out on the (main) operation level, or on the  sub-operation level. Indicator: group operation sub-operation level combined operation (main) operation
Operation / Sub-operation Operation 0010 Operation 0020 Sub Operation 0010 / 10 at Work Center A1 Sub Operation 0010 / 20 at Work Center A2 Sub Operation 0010 / 30 at Work Center A3 Schedule at Operation Level Useful when processing for operation 0010 occurs over multiple work centers Capacity Planning & Costing possible at Sub Operation Level Level
Material Allocation Op. 10 Op. 20 Op. 30 Op. 10 Op. 30 Routing Product BOM
1 1 2 2 01 02 01 02 1 1 1 2 3 1 2 3 1 1 Routing Group Routing Group Counter Material-Routing Allocations ,[object Object],[object Object],Material
Routing Default Values Routing Material Master Work Center Base Unit of Measure Planner Group Short Text Control Key Standard Values Activities Standards Text Key HR data
External Processing Oper 0010 Oper 0020 Oper 0040 Oper 0050 Purch Reqn Purch Ord Vendor Proc Goods Rec Routing data copied to order including quantities and dates Purchasing creates P.O. At goods receipt, the operation is confirmed
Operation Lead Time Float Before Float After Oper 0010 Oper 0020 Oper 0030 Queue | Setup | Process | Teardown | Wait | Move Execution Time Interoperation Time Interoperation Time Operation Lead Time
Routing  Operation Sequences Overlapped Routing defines process where one  operation is to overlap with the  following operation Standard Routing represents a standard  sequence defining production  procedure Parallel Routing includes processes which  can be performed simultaneously  to achieve time efficiencies Split Routing includes processes which  can/must be split across a number of work centers
The Planning Concept in SAP SOP MPS Planned Independent Requirements Customer Independent Requirements Requirements (Orders) from SD Module Offset Keep Balanced Order Proposals MRP Planned Orders Production Orders Purchase Requisitions Demand ie Requirements Order proposals, planned orders etc are created and adjusted by running the MRP or MPS programs. Sales Plan Production Plan
[object Object],[object Object],[object Object],[object Object],[object Object],Sales and Operations Planning Functions
[object Object],[object Object],[object Object],[object Object],[object Object],Sales and Operations Planning  – Planning Levels
[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Sales and Operations Planning – Steps
[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Sales and Operations Planning – Steps
Sales and Operations Planning – Product Groups ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
[object Object],[object Object],[object Object],[object Object],[object Object],Sales and Operations Planning – The Planning Table
Sales and Operations Planning – Creating a Sales Plan ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Sales and Operations Planning – Creating a Production Plan ,[object Object],[object Object],[object Object],[object Object],[object Object]
Sales and Operations Planning – Disaggregation ,[object Object],[object Object],[object Object],[object Object]
Sales and Operations Planning –  Transferring Data to Demand Management ,[object Object],[object Object],[object Object],[object Object],[object Object]
Master Planning ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Copy from  Sales Plan Copy from  Prodn Plan Copy from  Forecast Copy from  Orig Plan Demand Management “ Demand Program” Manual Planned  Independent Requirements Sales  Demand from Sales Orders MRP/MPS Sales and Operations Planning
[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Planning Strategy – Make-to Stock
Sale from stock Planning Production Push Warehouse Stock  Finished Product Strategy:  Make-To-Stock Production Example: Common shelf items such as a bike accessory (light)
[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Planning Strategy – Planning with Final Assembly
Sales Order Planning Production Push Warehouse Stock  Finished Product Example: Custom furniture such as a cherry table Final  Assembly to Sales Order Purchase Produce MRP without reference to sales order Planned Independent  Requirements Strategy: Planning with Final Assembly
Planning Strategy – Planning Without Final Assembly ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Sales Order Planning Warehouse Stock  Finished Product Warehouse Stock Assembly 01 Warehouse Stock Assembly 02 Example: Option oriented product such as a car Stop at level Planned Independent  Requirements Assembly when  Sales Order  Scheduled Purchase Produce Strategy:  Planning Without Final Assembly Production Push Final Assembly Pull
Planning Strategy – Planning with Planning Material ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Sales Order Planning Customer Stock Finished Product Planning Material Warehouse Stock Assembly 01 Warehouse Stock Assembly 02 Example: Bikes with the same features except for the color Purchase Produce Note:  Percentages drive lower level demands for sub assemblies Strategy:  Planning with Planning Material Planned Independent Requirements Production Push Final Assembly Pull
Sales Order Warehouse   Stock  Finished Product Example: Combine customer orders for the same item Strategy:  Production by Lot Size Production by Lot Size Pull
Planning Strategy – Make to Order Production ,[object Object],[object Object],[object Object],[object Object],[object Object]
Sales Order Warehouse Stock  Finished Product Example:  New machinery Strategy:  Make-To-Order Production Production by Lot Size Pull
MRP Features MRP Lot sizing Order scheduling and generation Internal production and external purchasing Net requirements calculation Bill of Material Explosion Forecasting
MRP Overview
Overview  Purchased Items MRP Purchasing Accounting Warehouse management system Goods receipt Inventory management Valuation Goods Transfer issue posting Invoice receipt Invoice   verification Master data Material Batches Vendors Customers :
MRP:  Reorder Point Planning Reorder Point Safety Stock Order Date Delivery Date Time Stock
Purchasing Process Time Vendor Planned Delivery Time Desired Delivery Date Release  Order Date Forward Scheduling for External Procurement Today Goods Receipt Process Time Forward scheduling used for reorder point material
Daily Accumulation: Entries from Planning  File Warehouse  Stock + Open Order Proposals Shortages Net Change Planning Coverage calculation per requirement date Sales Orders Planned Individual  Requirements Reservations Order  Proposal
MRP Prerequisites ,[object Object],PLANT LEVEL MATERIAL LEVEL ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Material Master – MRP I Key Fields ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Material Master – MRP 1Key Fields ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Material Master – MRP 2 Key Fields ,[object Object],[object Object]
Material Master MRP 3 Key Fields ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
MRP Types VB VM VV PD M0 Manual Reorder Point Planning : MRP  produces order proposals when stock falls below a “reorder point”. The reorder point and safety stock levels are entered manually Automatic Reorder Point Planning : The reorder point and safety stock level are calculated based on the forecast results Forecast Planning The latest forecast is copied as requirements which are used to create order proposals Deterministic Planning MRP  produces order proposal(s) to match the exact quantity of the requirements based on independent and dependent demands Master Production Scheduling Similar to PD but used for master schedule items
Lot Sizing Static Periodic Optimum (Cost ) Lot for Lot Fixed Lot size Replenish up to maximum stock level Daily Lot size Weekly Lot size Monthly Lot size Flexible period Lot size according to planning calen. Part period balancing Least unit cost procedure Dynamic Lot size creation Groff reorder procedure
MRP:  Static Lot Sizing Lot for Lot Order Quantity: Shortage Quantity  =   Ordered Quantity Replenishment up to Maximum Stock Level: Stock required to achieve maximum stock level set in the material master Order  Quantity = Material  Fixed Order Quantity = Shortage Quantity Order = Fixed Order Quantity If Fixed Lot Size: Shortage Quantity  > Fixed Order Quantity If Order Order Order
Carrying Out the Planning Run Total Planning  – All materials in a given plant ,[object Object],[object Object],Planning Interval  – Limiting the MRP Planning Interval Time Planned requirements and supply order receipts example: 100 days MRP Planning Horizon
Planning Run Options for Automatic  Creation of Requisitions and Delivery Schedules ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
MRP List MRP Controller Group of Materials  for which  controller  is responsible Controller’s MRP  Listing MRP Order Proposals  and Planner Messages from MRP Planning run. Planner can drill down to  review  material  movement activity Goods Receipt Goods Issues
Stock Requirements List Date   MRP Element Supply/Demand Ref EM Quantity Available 01/01 STOCK 100 01/08 ORDER Sales Order   25   75 01/15 PL ORD 1000 120   05   100   175 02/01 -----------------------------------------------------> Planning Time Fence Stock Requirements List brings together all the supply orders, independent  and dependent demands and stock balances for the material.  MRP makes order proposals to balance the supply/demand position for the material
MRP Planning Result MRP List vs Stock Requirements List ,[object Object],[object Object],MRP Planning Process Last planning run results Stock Requirements List uses current data Current Stock, Rqmts, Balances, planned Receipts, Issues
Purchasing Process Time Vendor Planned Delivery Time Desired Delivery Date Calculated Order Release  Date Backward Scheduling for External Procurement Future Requirement Date Goods Receipt Process Time ,[object Object],[object Object],MRP Planning Date -- today MRP Planning Lead Time
Order Release Process Time In-house Production Time Order  Finish  Date Order Start  Date Backward Scheduling for In-house Production Future Requirement Date Goods Receipt Process Time ,[object Object],[object Object],MRP Planning Date -- today MRP Planning Lead Time Order  Release Date
E1 Independent Requirements Customer Requirements Planned Orders Dependent Requirements B2 B1 R1 R2 R3 Planned Orders Dependent Requirements Dependent Requirements Level 0 Level 2 Level 1 Planned Orders Planned Orders Planned Orders Planned Orders Planning Structure Multi-Level = Demand = Supply
Order Proposals: Planned Orders  Procurement Type is In-house  Production MRP MRP Controller Planned Order Order Qty Order Date Capacity Reqts. Resource Reqts. Production  Order
Planning for In-house Production Planned Order Production Order Auto Change/ Delete  if situation changes Auto Creation Collective Conversion into Production Order Manual changes/ deletion Manual Creation Planning Run MRP Controller Individual Conversion into  Production Order Production Order Release
The Production Cycle Issue Materials to Order Select BOM Select Routing Schedule Times & Dates Calculate Capacity Purchase Requisitions Goods Issue Calculate Planned Costs Release Order Check  Availability Print Shop Floor Papers Create Order Create Required  Purchases Confirm Completion Receive complete goods into stock Goods Receipt Confirmation Slip Calculate Actual Costs Actual Labor Production  Order
Production Order Creation Manual Order Creation Order Proposal MRP  Conversion Determine Order Type Routing Selection Lead Time Scheduling Bill of Material Selection ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Changes are allowed before   order release OAK BROOK TECHNOLOGIES
Production Order Release Production Order Ready for Release Material Availability Check Order or Operation Release Shop Paper  Printing Possible Material Withdrawals Possible ,[object Object],[object Object],[object Object],[object Object]
Material Availability Check Stock on Hand 150 Units Reservation for 50 Units Net Available  150  100   300  100   Planned Order for 200 Units Dependent Requirement for 200 Units Requirement  for 50 Units  are Available
Goods Movement for a Production Order Material 1 Material 2 Production Goods receipt of Material 3 Goods Issue  Consumption of Material 1 and 2 Reservation Planned Goods Issue Unplanned Goods Issue Goods issues only apply to stock items
Goods Issue Results Goods Issue  Posting Update Reservations G/L Account Update Accounting Material Document Material Usage Statistics Cost Object Allocation
Completion Confirmations Production Order Operations 0010 - Assemble Board 0020 - Assemble Case  0030 - Assemble unit 0040 - Final Test C Confirm Operation 0010 Activities Confirm Operation 0020 Activities Confirm Operation 0030 Activities Confirm Operation 0040 Activities ,[object Object],[object Object],[object Object],[object Object],[object Object],Milestone
Confirmation Data Quantity Dates Labor ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

More Related Content

What's hot

Sap batch management overview
Sap batch management overviewSap batch management overview
Sap batch management overview
dhl1234
 

What's hot (20)

SAP Sales and Operational Planning -SOP
SAP Sales and Operational Planning -SOPSAP Sales and Operational Planning -SOP
SAP Sales and Operational Planning -SOP
 
MRP Live on S/4 HANA
MRP Live on S/4 HANAMRP Live on S/4 HANA
MRP Live on S/4 HANA
 
Sap Mm
Sap   MmSap   Mm
Sap Mm
 
Sap MM Presentation
Sap MM PresentationSap MM Presentation
Sap MM Presentation
 
SAP MM Configuration - Real Project Documentation
SAP MM Configuration - Real Project DocumentationSAP MM Configuration - Real Project Documentation
SAP MM Configuration - Real Project Documentation
 
SAP PP End User Document - www.sapdocs.info
SAP PP End User Document - www.sapdocs.infoSAP PP End User Document - www.sapdocs.info
SAP PP End User Document - www.sapdocs.info
 
26045438 20459510-sap-mm-functional-overview-
26045438 20459510-sap-mm-functional-overview-26045438 20459510-sap-mm-functional-overview-
26045438 20459510-sap-mm-functional-overview-
 
SAP Organization Structure
SAP Organization StructureSAP Organization Structure
SAP Organization Structure
 
SAP PP Routing
SAP PP RoutingSAP PP Routing
SAP PP Routing
 
62729459 sap-mm-master-data
62729459 sap-mm-master-data62729459 sap-mm-master-data
62729459 sap-mm-master-data
 
SAP MM Standard Business Processes
SAP MM Standard Business ProcessesSAP MM Standard Business Processes
SAP MM Standard Business Processes
 
SAP Flexible Planning
SAP Flexible PlanningSAP Flexible Planning
SAP Flexible Planning
 
Pp batch management-presentation
Pp batch management-presentationPp batch management-presentation
Pp batch management-presentation
 
Org structure SAP
Org structure SAPOrg structure SAP
Org structure SAP
 
Sap mrp-configuration-pp
Sap mrp-configuration-ppSap mrp-configuration-pp
Sap mrp-configuration-pp
 
SAP MM Business Scenarios
SAP MM  Business ScenariosSAP MM  Business Scenarios
SAP MM Business Scenarios
 
Sap batch management overview
Sap batch management overviewSap batch management overview
Sap batch management overview
 
MRP Overview
MRP OverviewMRP Overview
MRP Overview
 
Sap ewm detailed presentation
Sap ewm detailed presentationSap ewm detailed presentation
Sap ewm detailed presentation
 
Pp interview questions
Pp interview questionsPp interview questions
Pp interview questions
 

Similar to SAP Production Planning

SAP ERP1. Describe the Production Planning and Execution process.docx
SAP ERP1. Describe the Production Planning and Execution process.docxSAP ERP1. Describe the Production Planning and Execution process.docx
SAP ERP1. Describe the Production Planning and Execution process.docx
kenjordan97598
 
Operations Management Material Requirements Planning (MRP)
Operations ManagementMaterial Requirements Planning (MRP)Operations ManagementMaterial Requirements Planning (MRP)
Operations Management Material Requirements Planning (MRP)
Mostafa Ewees
 

Similar to SAP Production Planning (20)

Master Data V1.pptx
Master Data V1.pptxMaster Data V1.pptx
Master Data V1.pptx
 
PP-OVE_1.PPT
PP-OVE_1.PPTPP-OVE_1.PPT
PP-OVE_1.PPT
 
IcSoft
IcSoftIcSoft
IcSoft
 
SAP ERP1. Describe the Production Planning and Execution process.docx
SAP ERP1. Describe the Production Planning and Execution process.docxSAP ERP1. Describe the Production Planning and Execution process.docx
SAP ERP1. Describe the Production Planning and Execution process.docx
 
Production
ProductionProduction
Production
 
Production module
Production moduleProduction module
Production module
 
Enterprise resource planning in manufacturing
Enterprise resource planning in manufacturingEnterprise resource planning in manufacturing
Enterprise resource planning in manufacturing
 
Operations Management Material Requirements Planning (MRP)
Operations ManagementMaterial Requirements Planning (MRP)Operations ManagementMaterial Requirements Planning (MRP)
Operations Management Material Requirements Planning (MRP)
 
Basics of SAP for noobs (dummies)
Basics of SAP for noobs (dummies)Basics of SAP for noobs (dummies)
Basics of SAP for noobs (dummies)
 
What's New In Sage MAS 90
What's New In Sage MAS 90What's New In Sage MAS 90
What's New In Sage MAS 90
 
What's new in sage mas 90
What's new in sage mas 90What's new in sage mas 90
What's new in sage mas 90
 
Ais Romney 2006 Slides 12 The Production Cycle
Ais Romney 2006 Slides 12 The Production CycleAis Romney 2006 Slides 12 The Production Cycle
Ais Romney 2006 Slides 12 The Production Cycle
 
Ais Romney 2006 Slides 12 The Production Cycle
Ais Romney 2006 Slides 12 The Production CycleAis Romney 2006 Slides 12 The Production Cycle
Ais Romney 2006 Slides 12 The Production Cycle
 
Inventory planning & control
Inventory planning & controlInventory planning & control
Inventory planning & control
 
Material requirements planning & erp ppt @ bec doms
Material requirements planning & erp  ppt @ bec domsMaterial requirements planning & erp  ppt @ bec doms
Material requirements planning & erp ppt @ bec doms
 
WFX Cloud ERP
WFX Cloud ERPWFX Cloud ERP
WFX Cloud ERP
 
MRP
MRPMRP
MRP
 
Production planning and control - Basic concepts
Production planning and control - Basic conceptsProduction planning and control - Basic concepts
Production planning and control - Basic concepts
 
Trevor Solution Overview
Trevor Solution OverviewTrevor Solution Overview
Trevor Solution Overview
 
MRP & ERP.pdf
MRP & ERP.pdfMRP & ERP.pdf
MRP & ERP.pdf
 

Recently uploaded

Breaking Down the Flutterwave Scandal What You Need to Know.pdf
Breaking Down the Flutterwave Scandal What You Need to Know.pdfBreaking Down the Flutterwave Scandal What You Need to Know.pdf
Breaking Down the Flutterwave Scandal What You Need to Know.pdf
UK Journal
 

Recently uploaded (20)

Human Expert Website Manual WCAG 2.0 2.1 2.2 Audit - Digital Accessibility Au...
Human Expert Website Manual WCAG 2.0 2.1 2.2 Audit - Digital Accessibility Au...Human Expert Website Manual WCAG 2.0 2.1 2.2 Audit - Digital Accessibility Au...
Human Expert Website Manual WCAG 2.0 2.1 2.2 Audit - Digital Accessibility Au...
 
Event-Driven Architecture Masterclass: Challenges in Stream Processing
Event-Driven Architecture Masterclass: Challenges in Stream ProcessingEvent-Driven Architecture Masterclass: Challenges in Stream Processing
Event-Driven Architecture Masterclass: Challenges in Stream Processing
 
State of the Smart Building Startup Landscape 2024!
State of the Smart Building Startup Landscape 2024!State of the Smart Building Startup Landscape 2024!
State of the Smart Building Startup Landscape 2024!
 
The Metaverse: Are We There Yet?
The  Metaverse:    Are   We  There  Yet?The  Metaverse:    Are   We  There  Yet?
The Metaverse: Are We There Yet?
 
Intro to Passkeys and the State of Passwordless.pptx
Intro to Passkeys and the State of Passwordless.pptxIntro to Passkeys and the State of Passwordless.pptx
Intro to Passkeys and the State of Passwordless.pptx
 
Introduction to FDO and How It works Applications _ Richard at FIDO Alliance.pdf
Introduction to FDO and How It works Applications _ Richard at FIDO Alliance.pdfIntroduction to FDO and How It works Applications _ Richard at FIDO Alliance.pdf
Introduction to FDO and How It works Applications _ Richard at FIDO Alliance.pdf
 
Working together SRE & Platform Engineering
Working together SRE & Platform EngineeringWorking together SRE & Platform Engineering
Working together SRE & Platform Engineering
 
Oauth 2.0 Introduction and Flows with MuleSoft
Oauth 2.0 Introduction and Flows with MuleSoftOauth 2.0 Introduction and Flows with MuleSoft
Oauth 2.0 Introduction and Flows with MuleSoft
 
Collecting & Temporal Analysis of Behavioral Web Data - Tales From The Inside
Collecting & Temporal Analysis of Behavioral Web Data - Tales From The InsideCollecting & Temporal Analysis of Behavioral Web Data - Tales From The Inside
Collecting & Temporal Analysis of Behavioral Web Data - Tales From The Inside
 
(Explainable) Data-Centric AI: what are you explaininhg, and to whom?
(Explainable) Data-Centric AI: what are you explaininhg, and to whom?(Explainable) Data-Centric AI: what are you explaininhg, and to whom?
(Explainable) Data-Centric AI: what are you explaininhg, and to whom?
 
The Value of Certifying Products for FDO _ Paul at FIDO Alliance.pdf
The Value of Certifying Products for FDO _ Paul at FIDO Alliance.pdfThe Value of Certifying Products for FDO _ Paul at FIDO Alliance.pdf
The Value of Certifying Products for FDO _ Paul at FIDO Alliance.pdf
 
Choosing the Right FDO Deployment Model for Your Application _ Geoffrey at In...
Choosing the Right FDO Deployment Model for Your Application _ Geoffrey at In...Choosing the Right FDO Deployment Model for Your Application _ Geoffrey at In...
Choosing the Right FDO Deployment Model for Your Application _ Geoffrey at In...
 
Microsoft CSP Briefing Pre-Engagement - Questionnaire
Microsoft CSP Briefing Pre-Engagement - QuestionnaireMicrosoft CSP Briefing Pre-Engagement - Questionnaire
Microsoft CSP Briefing Pre-Engagement - Questionnaire
 
AI mind or machine power point presentation
AI mind or machine power point presentationAI mind or machine power point presentation
AI mind or machine power point presentation
 
Continuing Bonds Through AI: A Hermeneutic Reflection on Thanabots
Continuing Bonds Through AI: A Hermeneutic Reflection on ThanabotsContinuing Bonds Through AI: A Hermeneutic Reflection on Thanabots
Continuing Bonds Through AI: A Hermeneutic Reflection on Thanabots
 
Google I/O Extended 2024 Warsaw
Google I/O Extended 2024 WarsawGoogle I/O Extended 2024 Warsaw
Google I/O Extended 2024 Warsaw
 
Secure Zero Touch enabled Edge compute with Dell NativeEdge via FDO _ Brad at...
Secure Zero Touch enabled Edge compute with Dell NativeEdge via FDO _ Brad at...Secure Zero Touch enabled Edge compute with Dell NativeEdge via FDO _ Brad at...
Secure Zero Touch enabled Edge compute with Dell NativeEdge via FDO _ Brad at...
 
How Red Hat Uses FDO in Device Lifecycle _ Costin and Vitaliy at Red Hat.pdf
How Red Hat Uses FDO in Device Lifecycle _ Costin and Vitaliy at Red Hat.pdfHow Red Hat Uses FDO in Device Lifecycle _ Costin and Vitaliy at Red Hat.pdf
How Red Hat Uses FDO in Device Lifecycle _ Costin and Vitaliy at Red Hat.pdf
 
Breaking Down the Flutterwave Scandal What You Need to Know.pdf
Breaking Down the Flutterwave Scandal What You Need to Know.pdfBreaking Down the Flutterwave Scandal What You Need to Know.pdf
Breaking Down the Flutterwave Scandal What You Need to Know.pdf
 
Event-Driven Architecture Masterclass: Engineering a Robust, High-performance...
Event-Driven Architecture Masterclass: Engineering a Robust, High-performance...Event-Driven Architecture Masterclass: Engineering a Robust, High-performance...
Event-Driven Architecture Masterclass: Engineering a Robust, High-performance...
 

SAP Production Planning

  • 2. PP FI CO SD MM PM QM PS HR
  • 3. Manufacturing Planning and Execution Organizational and Master Data Business Process for Manufacturing Planning and Execution Reporting and Analysis
  • 4. Manufacturing Planning and Execution Sales Info System CO/PA Forecasting Procurement Sales & Oper. Planning Demand Mgmt MPS/MRP Material planning Manufacturing Execution Order Settlement Planning Process Execution Process
  • 5. Manufacturing Planning and Execution Requirement from sales/marketing Production Planning Check Availability Components Capacity Run Schedule Qtys Sch & Cap Levelling Mfg. Execution Backflushing Receipt of Fin Goods In Stores Shift dates / Provide Addl. capacities Purchasing yes no no yes REM
  • 6. Manufacturing Planning and Execution Requirement from sales/marketing Production Planning Check Availability Components Capacity Production Order Sch & Cap Levelling Mfg. Execution Production Confirmation Receipt of Fin Goods In Stores Shift dates / Provide Addl. capacities Purchasing yes no no yes Discrete
  • 7.
  • 8.
  • 9.
  • 10.
  • 11.
  • 12. Manufacturing Planning and Execution STANDARD PRODUCTION PLANNING REPORTS Stock/Requirements List Lists the latest stock/requirement position of a material in the plant i.e. planned orders, production orders,etc. Production Plan This report lists the monthly production plans – material and plant wise . Orders This report lists the orders pending/completed for a material material wise or work center wise..
  • 13. Manufacturing Planning and Execution STANDARD PRODUCTION PLANNING REPORTS Quantity produced This report lists the quantity of the material produced during the Period in question. Work center Loads This report lists the available capacities, required capacities, remaining available capacities and %load for the work center. Consumption Lists the consumption of a material for the period in question.
  • 14. Backlogs Lists the backlog of the load at a work center for the period in question. Missing parts Lists the missing parts that are required for the production of a material. Manufacturing Planning and Execution STANDARD PRODUCTION PLANNING REPORTS
  • 15. Production Planning Basic Data Routings Work Centers Materials Capacities Inspection Plans Production Facilities Bills of Material PP Basic Data Production Resources/Tools F06010
  • 16. SAP R/3 Integration Model Sales & Distribution Production Planning Materials Management Finance & Controlling Customer Sales Order Shipment Receivable Accounts / Cash Receipt Credit Limit Material Availability Check Transfer of Requirements Goods Issue to SO Goods Receipt Invoice Receipt Purchase Order Accounts Payable Invoice Accounting Document Production Cost Production Order Production Order Receipt Sales Forecast / Plan Vendor
  • 17. Organizational Structures in R/3 Cost accounting Accounts Internal logistics (MRP/Production) Inventory management Group Controlling areas Sales organizations Company codes Valuation areas Plants Storage locations/batches/special stocks External logistics Purchasing organizations Levels Views
  • 18. Material Master Data General Data St. Loc. Specific Data Plant Specific Data Sales Specific Data Material Master Data applicable throughout the client e.g. Material number Description Units of measure Weight Volume Product hierarchy Data dependent on sales organization and distribution channel e.g. Delivering plant Sales text Sales units Shipping data Division Data relevant for planning and production e.g. MRP profile Production costs Planning data Valuation Data referring to storage and inventory management e.g. Quantities Special stock Warehouse attributes
  • 19. Material Types in the Standard SAP Material Type DIEN ERSA FERT HALB HAWA HIBE LEER NLAG ROH VERP WETT PROD Service Spare Part Finished Product Semi-finished Product Trading Good Operating Supply Empty Containers Non stock Item Raw Material Packaging Competitor Product Production Resources/ Tools Description
  • 20.
  • 21. Engineering Design Sales Production Stock Finance Purchasing Examples of How Data is Used Texts copied to purchase orders Maintains stock levels by plant, storage location, and batch Data used to calculate MRP lead times Controls customer ordering rules for material Controls which General Ledger Account is updated Material description used in reporting Product Data
  • 22. Bills of Material Simple BOM Variant BOM Multiple BOM Simple BOM representing single material Similar materials represented by variants on one BOM BOM representing a material which can be made up of multiple compositions e.g. different components and quantities
  • 23.
  • 24. BOM Structure BOM Header Plant Assignment Validity Period Release Indicator Stock Items Non-stock Items Variable Size Items Document Items Text Items Additional component details e.g. installation points for components Item 10 Item 20 Item 30 Sub Item 10 Sub Item 20
  • 25.
  • 26.
  • 27.
  • 28.  
  • 29. Assembly Line Machines People Production Line Capacity Requirements Planning Scheduling, Execution Times Costing Work Centers Work Centers Cost Center
  • 30. Work Centers and Routings Routing Operation 10 Operation 20 Operation 30 Work Center W1 Cost Center 100 Assembly Cost Centre 200 Work Center W2 Finishing Cost Center 200 Work Center W1 Cost Center 100 Assembly
  • 31.
  • 32. Cost Center Assignment to Work Center for Operation Costing Cost Center Oper 0010 Oper 0020 Oper 0030 Oper 0040 Routing with standard values Set Up (SET) Machine (MACH) Labor (LAB) Work Center with Activities during production Activity Rates Set Up $70.00 Mach $60.00 Labor $80.00 Overhead $70.00
  • 33. Work Center Capacity Oper 0010 Oper 0020 Oper 0030 Oper 0040 Routing with standard values Set up Formula Machine Time Formula Teardown Formula Work Center Formulas Set up 1.0 hrs Machine 5.5 hrs Teardown .5 hrs Operation Std Values Work Center Schedule Use of Formulas in Work Centers
  • 34. 8 hrs 1 hr 7 hrs 1 hr 6 hrs Working Hours Break Time Working Hours less Breaks Planned Downtime Productive Working Hours Available Capacity at a Work Center
  • 35. Routing Structure Views Routing Operation 30 Operation 20 Operation 10 Work Centre: PP-ASSEM Control Key: - Time Tkts - Costing Operation Text: Pre-assemble frame Std Values: Lab:10 mins Mach:10 mins Materials Components BOM Process Resource Tool (PRT)
  • 36. BOM Groups Production Master Data Materials and PRTs Bills of Material Routings Work Centers Routing Groups Cost Centers Components Allocated to Operations Item Category Material Type W/C Category
  • 37.
  • 38. Operation / Sub-operation Operation 0010 Operation 0020 Sub Operation 0010 / 10 at Work Center A1 Sub Operation 0010 / 20 at Work Center A2 Sub Operation 0010 / 30 at Work Center A3 Schedule at Operation Level Useful when processing for operation 0010 occurs over multiple work centers Capacity Planning & Costing possible at Sub Operation Level Level
  • 39. Material Allocation Op. 10 Op. 20 Op. 30 Op. 10 Op. 30 Routing Product BOM
  • 40.
  • 41. Routing Default Values Routing Material Master Work Center Base Unit of Measure Planner Group Short Text Control Key Standard Values Activities Standards Text Key HR data
  • 42. External Processing Oper 0010 Oper 0020 Oper 0040 Oper 0050 Purch Reqn Purch Ord Vendor Proc Goods Rec Routing data copied to order including quantities and dates Purchasing creates P.O. At goods receipt, the operation is confirmed
  • 43. Operation Lead Time Float Before Float After Oper 0010 Oper 0020 Oper 0030 Queue | Setup | Process | Teardown | Wait | Move Execution Time Interoperation Time Interoperation Time Operation Lead Time
  • 44. Routing Operation Sequences Overlapped Routing defines process where one operation is to overlap with the following operation Standard Routing represents a standard sequence defining production procedure Parallel Routing includes processes which can be performed simultaneously to achieve time efficiencies Split Routing includes processes which can/must be split across a number of work centers
  • 45. The Planning Concept in SAP SOP MPS Planned Independent Requirements Customer Independent Requirements Requirements (Orders) from SD Module Offset Keep Balanced Order Proposals MRP Planned Orders Production Orders Purchase Requisitions Demand ie Requirements Order proposals, planned orders etc are created and adjusted by running the MRP or MPS programs. Sales Plan Production Plan
  • 46.
  • 47.
  • 48.
  • 49.
  • 50.
  • 51.
  • 52.
  • 53.
  • 54.
  • 55.
  • 56.
  • 57. Copy from Sales Plan Copy from Prodn Plan Copy from Forecast Copy from Orig Plan Demand Management “ Demand Program” Manual Planned Independent Requirements Sales Demand from Sales Orders MRP/MPS Sales and Operations Planning
  • 58.
  • 59. Sale from stock Planning Production Push Warehouse Stock Finished Product Strategy: Make-To-Stock Production Example: Common shelf items such as a bike accessory (light)
  • 60.
  • 61. Sales Order Planning Production Push Warehouse Stock Finished Product Example: Custom furniture such as a cherry table Final Assembly to Sales Order Purchase Produce MRP without reference to sales order Planned Independent Requirements Strategy: Planning with Final Assembly
  • 62.
  • 63. Sales Order Planning Warehouse Stock Finished Product Warehouse Stock Assembly 01 Warehouse Stock Assembly 02 Example: Option oriented product such as a car Stop at level Planned Independent Requirements Assembly when Sales Order Scheduled Purchase Produce Strategy: Planning Without Final Assembly Production Push Final Assembly Pull
  • 64.
  • 65. Sales Order Planning Customer Stock Finished Product Planning Material Warehouse Stock Assembly 01 Warehouse Stock Assembly 02 Example: Bikes with the same features except for the color Purchase Produce Note: Percentages drive lower level demands for sub assemblies Strategy: Planning with Planning Material Planned Independent Requirements Production Push Final Assembly Pull
  • 66. Sales Order Warehouse Stock Finished Product Example: Combine customer orders for the same item Strategy: Production by Lot Size Production by Lot Size Pull
  • 67.
  • 68. Sales Order Warehouse Stock Finished Product Example: New machinery Strategy: Make-To-Order Production Production by Lot Size Pull
  • 69. MRP Features MRP Lot sizing Order scheduling and generation Internal production and external purchasing Net requirements calculation Bill of Material Explosion Forecasting
  • 71. Overview Purchased Items MRP Purchasing Accounting Warehouse management system Goods receipt Inventory management Valuation Goods Transfer issue posting Invoice receipt Invoice verification Master data Material Batches Vendors Customers :
  • 72. MRP: Reorder Point Planning Reorder Point Safety Stock Order Date Delivery Date Time Stock
  • 73. Purchasing Process Time Vendor Planned Delivery Time Desired Delivery Date Release Order Date Forward Scheduling for External Procurement Today Goods Receipt Process Time Forward scheduling used for reorder point material
  • 74. Daily Accumulation: Entries from Planning File Warehouse Stock + Open Order Proposals Shortages Net Change Planning Coverage calculation per requirement date Sales Orders Planned Individual Requirements Reservations Order Proposal
  • 75.
  • 76.
  • 77.
  • 78.
  • 79.
  • 80. MRP Types VB VM VV PD M0 Manual Reorder Point Planning : MRP produces order proposals when stock falls below a “reorder point”. The reorder point and safety stock levels are entered manually Automatic Reorder Point Planning : The reorder point and safety stock level are calculated based on the forecast results Forecast Planning The latest forecast is copied as requirements which are used to create order proposals Deterministic Planning MRP produces order proposal(s) to match the exact quantity of the requirements based on independent and dependent demands Master Production Scheduling Similar to PD but used for master schedule items
  • 81. Lot Sizing Static Periodic Optimum (Cost ) Lot for Lot Fixed Lot size Replenish up to maximum stock level Daily Lot size Weekly Lot size Monthly Lot size Flexible period Lot size according to planning calen. Part period balancing Least unit cost procedure Dynamic Lot size creation Groff reorder procedure
  • 82. MRP: Static Lot Sizing Lot for Lot Order Quantity: Shortage Quantity = Ordered Quantity Replenishment up to Maximum Stock Level: Stock required to achieve maximum stock level set in the material master Order Quantity = Material Fixed Order Quantity = Shortage Quantity Order = Fixed Order Quantity If Fixed Lot Size: Shortage Quantity > Fixed Order Quantity If Order Order Order
  • 83.
  • 84.
  • 85. MRP List MRP Controller Group of Materials for which controller is responsible Controller’s MRP Listing MRP Order Proposals and Planner Messages from MRP Planning run. Planner can drill down to review material movement activity Goods Receipt Goods Issues
  • 86. Stock Requirements List Date MRP Element Supply/Demand Ref EM Quantity Available 01/01 STOCK 100 01/08 ORDER Sales Order 25 75 01/15 PL ORD 1000 120 05 100 175 02/01 -----------------------------------------------------> Planning Time Fence Stock Requirements List brings together all the supply orders, independent and dependent demands and stock balances for the material. MRP makes order proposals to balance the supply/demand position for the material
  • 87.
  • 88.
  • 89.
  • 90. E1 Independent Requirements Customer Requirements Planned Orders Dependent Requirements B2 B1 R1 R2 R3 Planned Orders Dependent Requirements Dependent Requirements Level 0 Level 2 Level 1 Planned Orders Planned Orders Planned Orders Planned Orders Planning Structure Multi-Level = Demand = Supply
  • 91. Order Proposals: Planned Orders Procurement Type is In-house Production MRP MRP Controller Planned Order Order Qty Order Date Capacity Reqts. Resource Reqts. Production Order
  • 92. Planning for In-house Production Planned Order Production Order Auto Change/ Delete if situation changes Auto Creation Collective Conversion into Production Order Manual changes/ deletion Manual Creation Planning Run MRP Controller Individual Conversion into Production Order Production Order Release
  • 93. The Production Cycle Issue Materials to Order Select BOM Select Routing Schedule Times & Dates Calculate Capacity Purchase Requisitions Goods Issue Calculate Planned Costs Release Order Check Availability Print Shop Floor Papers Create Order Create Required Purchases Confirm Completion Receive complete goods into stock Goods Receipt Confirmation Slip Calculate Actual Costs Actual Labor Production Order
  • 94.
  • 95.
  • 96. Material Availability Check Stock on Hand 150 Units Reservation for 50 Units Net Available 150 100 300 100 Planned Order for 200 Units Dependent Requirement for 200 Units Requirement for 50 Units are Available
  • 97. Goods Movement for a Production Order Material 1 Material 2 Production Goods receipt of Material 3 Goods Issue Consumption of Material 1 and 2 Reservation Planned Goods Issue Unplanned Goods Issue Goods issues only apply to stock items
  • 98. Goods Issue Results Goods Issue Posting Update Reservations G/L Account Update Accounting Material Document Material Usage Statistics Cost Object Allocation
  • 99.
  • 100.