This document provides an overview of key production processes and master data in SAP, including: 1) It describes the main SAP production modules for planning (PP), materials management (MM), and financials (FI). 2) It explains the organizational hierarchy in SAP from the client level down to individual plants, storage locations, and purchasing organizations. 3) It provides details on key master data like materials, bills of materials, work centers, and routings that underpin production planning and management in SAP.

1. Production
General Overview

2. SAP Overview

3. SAP Business Processes - Production
 PP – Production Planning
 Sales and Operations Planning
 Demand Management
 Master Production Schedule
 Material Requirements Planning
 Planned Orders
 Production Orders and Purchase Requisitions
 MM – Materials Management
 Purchasing
 Goods Receipt
 Invoice Verification
 FI – Financial
 Payment Processing
 Inventory Valuation

4. Business Processes

5. Organizational Levels
Client - Unit with its own data, master records and own
set of tables
Company – Independent accounting unit within a client
Plant – Organizational logistics unit
Storage Location – Separates material stocks within
a plant
Purchasing Organization – A legal procurement
entity
Purchasing Group – A buyer or group of buyers

6. SAP IDES Organizational Structure
1 3 0 0
F r a n k f u rt
0 0 0 1
M a t e r ia l
0 0 0 2
F in is h e d G o o d s
0 0 0 3
G o o d s R e c e ip t
1 0 0 0
H a m b u rg
1 0 0 0
G e r m a n y
2 0 0 0
G r e a t B r it ia n
3 0 0 0
U n it e d S t a t e s
C lie n t
8 0 1

7. SAP Stored Data
 Data Dictionary
 Meta Data
 Data on the structure of User Tables
 User Data
 Master Data
 Data that does not change much
 Examples include Vendors, Customers, Material
 Transaction Data
 Data that pertains to events and actions
 Examples include Purchase Orders, Invoices, Production
Orders

8. Manufacturing Master Data
 Material Master
 Contains data on every item bought, sold, built, used in the business.
 Heart of the SAP system
 Bill of Material (BOM)
 Hierarchical structure of components to build a product
 Work Center
 A physical place or group were work activity takes place
 Routing
 The path taken through various work centers in the assembly of a
component or product
 Cost Center
 A logical area of cost behavior for labor, setup and machine time
associated with activity that can be assigned to work centers.

9. Material Master Data
 The material master is the heart of the SAP system.
 Any item maintained (bought, sold, produced, stored)
must be in the material master.
 Material Master Consists of data such as:
 Material ID, Material Description, Unit of Measure,
 Weight, Standard Cost, Average Cost, Production Time,
 Lead Time, Material Type, Inventory Level, Planning Type
 Material Master has many views that can be updated by
various areas depending on their use of the data.
 Production
 Purchasing
 Accounting

10. Material Master Views
 Purchasing
 Sales
 Work Scheduling
 Quality Management
 Forecasting
 Classification
 Basic Data
 Material Resource Planning
 Stocks in Inventory
 Accounting
 Storage
 Warehouse Management

11. Material Master Data
 Purchasing data for ordering
 Inventory management data for posting goods
movement and managing inventory
 Accounting data for material valuation
 MRP data for Material Requirements Planning
 Data is used by many areas of the business

12. Material Master Basic 1 Data View

13. Material Master Purchasing View

14. Material Master Accounting View

15. Material Master Storage Location View

16. Material Master Plant Stock View

17. Material Master Plant Data Store View

18. Material Master MRP 1 View

19. Material Master MRP 2 View

20. Material Master Org Levels
 Data valid for the entire company
 Material No, Desc, units of measure
 Data valid for a plant
 Purchasing, MRP, forecasting, work scheduling
 Data valid for a storage Location
 Storage Bin configuration and types

21. Some Different Material Types in SAP
 Raw Materials
 Operating Supplies
 Semi-finished Goods
 Finished Goods

22. The Material Type controls the following:
 Whether the material is intended for a specific purpose, for example,
as a configurable material or process material
 Whether the material number can be assigned internally or
externally
 The number range from which the material number is taken
 Which screens appear and in what sequence
 Which departmental data you may enter
 What procurement type the material has; that is, whether it is
manufactured in-house or procured externally, or both
 Which accounts are posted when posted to stock or leaves
inventory

23. The Industry Sector controls the following:
 Mechanical Engineering
 Plant Engineering
 Chemical Industry
 Controls which screens and in which order
 Controls display of industry-specific fields

24. Bill of Material
 Structured list of components that make up a product or assembly
 Single Level
 A BOM in SAP can consist of multiple Single Level BOMs
Header
ItemItem

25. The BOM is used in:
 MRP
 Explodes the product demand to its lower level assemblies and
purchased components
 Work Scheduling
 Exploded demand is used to determine production schedules
 Procurement
 Exploded demand can drive purchase requisitions and lines
items for blanket purchase orders.
 Product Costing
 Exploded relationships can be used to roll up costs of lower
level assemblies and components

26. Sample of BOM using Wagon Parts

27. SAP Create BOM Level I - Wagon

28. SAP Create BOM Level II – Axle Assembly

29. BOM – Graphical View