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Typical Production cycle in Process Industry

By R.Balaji, Infosys Technologies

The below production cycle explainsthe basic business flow in ProcessIndustry. The flow is generallyfocusing only on Production andQuality Management

Simple Production Cycle:

Consider all Raw materials areavailable in plant and productionprocess yet to start, the followingstages are to be followed

1. Create Process Order

Here we are creating aprocess order based on thecapacity of the equipmentsand resource availability

2. Release the Process order

Once Process order created, it has to be released for production, means system willcheck the scheduling, material availability, capacity planning, etc., and then releaseprocess takes place

3. Goods issue from the Stores

Once PO got released, goods issue against the process order will takes place

4. Start processing

Product process against the PO will start

5. Confirmation Process

After production, the final out put confirmation from the process will be entered

6. Goods Receipt Process

Goods receipt process plays a major role in any business here we have to do 101movement type and do the postings. In goods issue process they will issue the goodsagainst PO in 261 movement type.

7. Quality Approval and Release

Once GR from the production was made, the material will come to Quality control forapproval. Here QC person will check the material and they will do the result recordingand usage decision

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8. Stock will appear in Unrestricted use for SALE / Further Process

Once usage decision was made the material will automatically moved into unrestricteduse. The FG is ready for sale

By keeping above all points in mind, the following masters and transactions are required toproceed

S.No

Master Trans-action

T-code Description Where has to be used

1 MM01 Create Material Used for creating Recipeand further tracking

2 CRC1 Create Resource Machine / set of Machinesused for making theproduct

3 C201 Create Recipe Here we are callingresource and materialsrequired to make thefinished product

4 QS21 Create MIC List of specifications to bechecked for thatconcerned finished goods

5 QP01 Create QualityPlan

Creating Quality Plan

6 COR1 Create ProcessOrder

Initiating ProductionProcess by creatingProcess Order

7 MIGO with261movement

Goods IssueProcess

Goods issue toManufacturing unit

8 CORK ConfirmationProcess

Production Outputconfirmation Process

9 QA32 Quality Approvaland UsageDecision

QC will approve andrelease for further process

Step by Step Execution Process:

Scenario Explanation:

REQUIREMENTS:

For a leading Process Manufacturing Company ABC, they are selling the product FG 1, the rawmaterials and resource requirements are listed below

Raw Materials required for making 50kg of Finished Product, FG 1 are

S.No Material Code / MaterialType

Material Description Quantityrequired

Unit of Measurement

1 RM l 1 / ROH Raw Material 1 80 Kg

2 RM 2 /ROH Raw Material 2 20 Kg


3 BP 1 / FERT Byproduct 60 L

Resources required for making 50kg of Finished Product FG1

S.No Resource Code Resource Description Capacity

1 CRC-001 Reactor 2KL

2 CRC-002 Vessel 4KL

List of MASTERS required for addressing the above scenario

1. Create Materials using MM01 transactions in the following way:

In this screen select select views button and extend the following fields

We have selected basic information entries field. Fill the information and finally select the Generalplant / storage data and give plant as 1100 and storage as 0001 in case of Raw material.


The same procedure has to be repeated for finished goods and Co-Products, in plant storage data wehave to give Plant 1100 and storage 0004.

2. Create Resource master using CRC 1 Transactio

Click here to continue...

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