SAP Production Planning Overview for New SAP Consultants

SAP Production Planning and Execution for SAP PP MM SD Beginners Material Availability check •

Material availability check for all BOM Components.

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You can carry out an availability check either for the entire order, or for an individual material component in the order.

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The system carries out an availability check. If material components are not available on their requirements date, the system activates the status "material shortage" in the production order.

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If you make changes in an order, which could affect the availability of its components (for example date or quantity changes), this does not automatically trigger a new availability check. For up-to-date information on any missing parts in an order, you should restart the availability check manually after you have made the changes.

Production order Releasae

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Once you released production order following activities can be performed : –

Shop floor papers can be printed.

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Goods movements for the order can be executed

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Confirmations for the order can be executed.

Manual production order creation- Manual

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SAP Production Planning and Execution for SAP PP MM SD Beginners

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Path : Logistics->Production

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T-Code : CO01

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->Shop Floor Control -> Order -> Create

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Check capacity

Enter Order Quantity & Start or Finish Date manually.

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Check material

Release order

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Goods Movements In Discrete Manufacturing Contents •

Goods issue to production order (GI)

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Goods receipts to production order (GR)

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SAP Production Planning and Execution for SAP PP MM SD Beginners GI

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Goods Issue for production can done in one of the following way : –

Automatic (Backflush) – confirmation automatically post goods issue for components

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Manual – Operator will post Goods Issue for production order

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Stock and consumption fields are updated at the storage location level.

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The component reservation is reduced.

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The actual costs are determined and updated in the order.

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If the material withdrawn does not have a reservation, then it is an unplanned issue. Example: Material withdrawn as a replacement material.

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Goods issues can be posted only if movement for the reservation is allowed. For example, an order status of created but not released, blocked or technically complete disallows such movement.

Production order confirmation G.V.SHIVAKKUMAR

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SAP Production Planning and Execution for SAP PP MM SD Beginners • Production Order confirmation is used for entering activities carried out within your company for an order. •

Production order confirmations enable you to monitor the progress of work carried out for a production order.

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With a confirmation you specify

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The quantity in an operation that was produced as yield, scrap and the quantity to be reworked

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How much work was actually done

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Which work center was used for the operation

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Who carried out the operation

The following business transactions can be executed via confirmations: –

Updating order data (for example, quantities, activities, dates, status)

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Backflushing of components

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Automatic goods receipt (for one operation per order max.)

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Capacity reduction in the work center

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Updating costs based on confirmed data

Production order confirmation types •

Most widely used confirmation are :

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For an Operation –

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You have the following options: •

To confirm quantities, durations, activities or personnel data, enter a time ticket confirmation or a progress confirmation.

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To make a confirmation at a particular point in time (for example, at the start of setup or the finish of processing) enter a confirmation for a time event.

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When you confirm time events, the system calculates the required duration. For example, the setup duration is the time between setup start and setup finish.

For an Order –

If you enter a confirmation at order header level, the system confirms all the operations that have a control key in which confirmation is optional or necessary. The quantities confirmed in the operations are proportional to the quantities confirmed in the order header.

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Goods Movement

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Goods receipt from production can be posted either manually or automatically.

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Automatic goods receipt can be controlled specific to either operation (operation control key) or material (production scheduling profile).

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SAP Production Planning and Execution for SAP PP MM SD Beginners • When we do goods receipt manually againt production order, we need to specify: –

Plant

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storage location

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stock type

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final delivery indicator

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Material and accounting documents are assigned according to their numbers.

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The delivered quantity can be updated in the order.

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The inward movement of material is valuated.

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The order is credited.

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The plant activity account is updated

GR from Production order

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Production Execution In Repetitive Process Repetitive Manufacturing (REM) •

In Repetitive Manufacturing, products remain unchanged over a longer period and are not manufactured in individually defined lots. Instead, a total quantity is produced over a certain period at a certain rate.

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Repetitive Manufacturing, normally involves a relatively constant flow on production lines. Semi-finished products are usually processed further immediately without being put in interim storage. Routings tend to be relatively simple.

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In Repetitive Manufacturing, components are often staged at the production line without reference to a particular order. Completion confirmations are less detailed, and the recording of actual data is simplified.

Goals of Repetitive Process •

Creation and revision of production quantities on a period and quantity basis (reduction in individual lot and order-specific processing).

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Reduction in the production control effort and simpler backflushing tools (with the option of using the full scope of the PP functionality).

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You can implement Repetitive Manufacturing if the following is true of your production process: –

You produce the same or similar products over a lengthy period of time.

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You do not manufacture in individually defined lots. Instead, a total quantity is produced over a certain period at a certain rate per part-period.

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SAP Production Planning and Execution for SAP PP MM SD Beginners – Your products always follow the same sequence through the machines and work centers in production. –

Routings tend to be simple and do not vary much.

Integration •

Within logistics, Demand Management precedes Repetitive Manufacturing: –

SD Sales Operations (receipt of sales orders)

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PP Demand Management (creation of planned independent requirements)

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PP MRP

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The following Logistics components are also relevant:

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PP Work Centers

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PP Routings

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PP Bills of Materials

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If required, Line Design for mapping complex production lines. Master Data

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Following master data is required to work with Repetitive Manufacturing :

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Repetitive manufacturing profile : The repetitive manufacturing profile is a mandatory prerequisite for repetitive manufacturing. Using the control parameters, you define the following, for example: –

Whether you want to back-flush activities.

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Whether you want to work with reporting points n make-to-stock REM.

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How you want to process errors which occur when back-flushing

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Production Version : The production version determines the different production techniques that can be used to manufacture a material.

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Production Line : A production line is used as a work center in planning in flow and repetitive manufacturing. It can either be a grouping of several processing stations or an individual processing station. In the simplest case, you only need to create two work centers for the whole production line.

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Product Cost Collector : Cost object in Product Cost by Period that collects the periodic actual costs incurred in the production of a material. When you use a product cost collector, the product is the main cost object.

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Repetitive manufacturing Process overview •

Create standard cost estimate for material

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Marking and releasing material price

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Demand management generates primary planning requirements, which are a prerequisite for the later MRP run. This is short-term planning, with a maximum time frame of four weeks. In material requirements planning, the BOM for the material is exploded and planning takes place right down to component level.

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As a result, planned orders are generated for the material that is to be produced. If insufficient warehouse stock is available, purchase requisitions for the raw materials required are created.

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Before production starts a product cost collector is created. It is a pure CO object to which all costs will be posted. Other than in lot-based production, in REM. quantities and their corresponding cost amounts are not stored on the same order. Perform repetitive manufacturing backflush.

 Repetitive Manufacturing can be used in :  Make to stock production REM –

Repetitive Manufacturing Make to stock production : In this processes , manufacturing is carried out without reference to any sales order, production is based on run schedule headers. This means that production is controlled without a direct reference to the sales order. Run schedule quantities determine the dates and quantities. Requirements are created in Demand Management.

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Run Schedule Header : run schedule quantities represent the quantities that are to be manufactured in a certain period. Technically, RS Header quantities are created as planned orders. As opposed to

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SAP Production Planning and Execution for SAP PP MM SD Beginners other planned orders, RS Header quantities must not be released and converted into production orders.  Make to stock production REM-Material requirement Planning –

The daily MRP run generates planned orders for the material that is to be produced. The system automatically generates purchase requisitions for purchased parts within the opening period for the planned order. Product cost collector

How product cost collector works •

Collecting costs in a production cost collector

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Costs are collected and settled via a production cost collector.

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Goods issue of the components used to manufacture the product is debited to the product cost collector.

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The goods receipt of the product is credited to the production cost collector.

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Crediting the product cost collector at goods receipt is linked to the crediting of the stock (valuated stock).

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The difference between debits and credit in the production cost collector is posted to a price difference account at period-end. No variance calculation (lot size variance, price variance, ...) takes place.

Backflushing •

You use this component in Repetitive Manufacturing to record work process in the system. Back-flushing is a very lean process, corresponding to the requirements of repetitive, mass or flow manufacturing .

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Types of Backflushing •

Final back-flush : You use this function to carry out the final backflush at the end of the production process.

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In the final back-flush, you can link the following processes: –

Posting goods receipts for finished products

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Posting goods issues for the components

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Reducing planned orders or run schedule quantities

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Posting production costs to product cost collector

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Updating statistics in the Logistics Information System (LIS), such as goods receipt statistics or material consumption statistics.

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Reporting point back-flush : You use this function for make-to-stock REM for back-flushing unfinished materials (work in process) at predefined operations.

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Separation of back-flushing processes : If you want to back-flush high volumes of data, you can significantly cut system response times by posting the goods receipt immediately and then posting all other data later.

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Back-flushing several materials collectively (Collective back-flush) : You use the collective entry to back-flush several materials together.

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Back flushing Process

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When back-flushing in make-to-stock REM, the following functions are carried out:

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The system posts the goods receipt of the stock material in the receiving storage location. You can enter the receiving storage location at various stages:

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Back-flush screen

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Production version

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The system determines the components by exploding the current BOM, the revision level BOM, or the planned order BOM.

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The system then posts the goods issue of these components from the production storage location.

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The system reduces the planned orders or the run schedule quantities according to the logic set in Customizing for Repetitive Manufacturing.

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If the actual production times differ from the times defined in the routing, you have the option of posting the actual times. See also Back-flushing Actual Times (Actual Activities.

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The system posts the material and the production costs to the product cost collector.

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The system updates the statistics for the Logistics Information System (LIS).

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The system creates individual documents for each posting as well as a full document.

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PP - PI Processes Here I am giving an overview of process Industry related Process. •

The component Production Planning for Process Industries (PP-PI) provides an integrated planning & execution tool for batch-oriented process manufacturing.

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It is primarily designed for the chemical, pharmaceutical, food and beverage industries as well as the batchoriented electronics industry.

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PP-PI supports: •

The integrated planning of production, waste disposal, and transport activities within a plant

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The integration of plants within the company:

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Vertically by means of an information flow, ranging from central business applications down to process control

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Horizontally by the coordination of planning between production plants, recycling and waste disposal facilities, and production laboratories.

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PP-PI Functions

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Module Overview Manufacturing Process (PP PI)

Process order Life cycle overview

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process order is the vehicle for providing instructions to the factory floor about what to make, how much, when, using which materials and which resources. It is also used to collect information about transactions that occur during the manufacture of the product. Factory Related Data

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Process Orders come from Demand and Supply Planning (DSP)

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Process Orders are released by manufacturing personnel in order to start Production Execution.

Process order overview

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Creating Process Order

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Path : Logistics->Production -Process

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T-Code : COR1

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->Process Order -> Create

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Capacity check

Enter Manually

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Check Material

Release Process Order G.V.SHIVAKKUMAR

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Please note the status change in Process order from CRTD to REL

Process order confirmation G.V.SHIVAKKUMAR

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GI to Process order

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GR from Process order

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Release PO to production Execution •

Pre-op checks and verifications –

Covers manual steps taken prior to Executing Production

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Help to guarantee the success of Production Execution and safe work practices

Production execution components •

Consumption of Components

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Declaration of Production of Materials

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Resource Confirmations

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Variance Reporting, Managing Process Messages and Exception Handling

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SAP Production Planning and Execution for SAP PP MM SD Beginners Process order- Technical Completion  Purpose of Process Order Technical Completion:  It indicates that no further processing is anticipated  Releases unused materials so that they can be used by other PO's  Flag for identifying PO's to be completed for period end financial reporting  status is set to 'TECO'  Prerequisites for Process Order Completion:  All production related steps must be completed  All transactions must be recorded in SAP (consumption, production, confirmations,...) 

PI sheet (if used) must be completed. Measure and Analyze Production Performance

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If performance is to be improved, it must first be measured

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Input for measuring and analyzing Production Performance –

Target data maintained in the master data

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actual data from Production Execution activities recording

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Timely and accurate feedback must be provided to enable factory people to better manage their operations and improve performance

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Output of measuring and analyzing Production Performance –

Continuous Improvement activities

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Review of production process failures

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 Efficiency describes how well the line operates when the crew is present on the production line  Performance describes how effectively the line is used during the time which it is occupied with some type of activity or is incapable of production (down time) Performance and efficiency  Manufacturing Reports  Monitor Line Efficiency and Performance  Downtime  Line Efficiency and Line Performance  Process Order Confirmation Errors  Monitor Labour Efficiency  Labour efficiency  Monitor Labour Variance  Labour Variance  Monitor Capacity

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 Monitor Capacity [email protected]

SAP Production Planning and Execution for SAP PP MM SD Beginners  Monitor Asset Productivity  Monitor Asset Productivity Index  Material Usage Variance  Material Usage Variance reflects usage deviations comparing actual to target and zero loss figures  To provide a financial value, the Material Usage Variance is multiplied by the standard Material cost  Factory Output  Provides quantity of units produced for Finished Goods and Semi finished Goods in chosen unit of measure  Units of Measure (cases, kilograms or liters) determined from the Material Master data  Material Yield  Material Yield reflects the amount of the material used compared to the actual output at a material level and a component level  Yield information is used to measure the output of a given process compared to the input quantity.  Rework Report  Rework Report provides the amount of rework consumed versus standard, the amount of rework generated versus standard, and the amount of components that were utilized in the Process Order compared to the planned utilization of the rework.

I am not having any good idea in COPA. So Omitting it. Hope PP & FICO Experts can explain more on this.

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Hope i have satisfied our friend’s requirement to some extent and I know that this document is not covering the entire information and concepts in PP. But i am getting my internal satisfaction that this document will suffice to some fresh consultant’s requirement to know about the basic process of Production Planning and Execution. Requesting involvement of expertise consultants... so that we can make the document meaningful. Thanks to all. G.V.Shivakkumar [email protected]

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SAP Production Planning Overview for New SAP Consultants

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