sap pp- exzatech

SAP Module Specific Overview

Production Planning for Process Industries (PP-PI)

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We will be starting each session ON TIME, both at the start of the

session and after the break

All mobile phones are to be turned off

Please refrain from side talk or interruptions

Specific or special-case questions will be answered after the session

Taking notes is encouraged

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SAP System

Business Supply Chain

High Level Process Overview

Master Data

Material Master

Bill of Material

Resource

Master Recipe)

Planning Process

Material Requirement Planning

Production Execution

Reports

Agenda

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PP Integration with the R/3 System

MM

SD

FI

CO

AMPS

WF

QM

HR

PM

PP

SAP

R/3Client /Server

PP

PP - PI

PP SOP

PP MRP

PP - EXE

BW

The SAP PP-PI module integrates with:

Sales and Distribution (SD)

Materials Management (MM)

Controlling (CO)

Project System (PS)

Human Resources (HR)

Finance (FI)

Plant Maintenance (PM)

Quality Management(QM)

Business Warehouse (BW)

SAP System

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Interactions with other SAP modules throughout the supply chain are shown below.

The initial trigger for the process is a demand, from a sales order, or a sales forecast.

The supply chain process satisfies our production requirements by generating

planned orders, purchase requisitions, process orders, purchase orders etc. As the

process orders and purchase orders are completed, finished goods are received into

inventory, ready for sales to customers.

Business Supply Chain

p17

bSalesOrder

MRP

PlannedOrder

PurchaseRequisition

ProductionOrder

PurchaseOrder

Complete &Confirm

GoodsReceipt

Goods ReceiptTo Inventory

DeliveryCustomer

InvoiceCustomerPayment

MaterialsManagement

Finance

Sales Manufacturing Sales/Distribution

FinancePlan/Sched

Yield &

cost report

Accounting

SAP Supply Chain

Invoice

Verification

Vendor

Payment

Rqmt

Pln

SAP Supply Chain

Process

Order

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Production of finished products or semi-finished products will be based on a production plan

created by Optimizer using along with SOP (Sales and Operations Planning)/Demand Management

(DM) transactions in SAP. Based on the production requirements in demand management, planned

orders for products are created automatically or manually during the MRP (Material Requirements

Planning) run.

Process orders will be created manually in the SAP system, either directly or by converting planned

orders created in the MRP. Production of all products will be documented by process orders. Process

orders will be periodically settled with respect to SAP FI/CO module cost elements.

High Level Process Overview

Reports

MRP (Material

Requirements Planning)SOP / Demand

Management

Planned Orders

Process Order

Processing

Optimizer

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Material Master Views

The material master contains all the information on all the materials that a company

produces, procures, stores and sells.

The data is stored in the material master based on who uses the data. For instance, in

the material master, all quality data is stored in the quality management view and all

work scheduling data is stored in the work scheduling view. Each user department has

its own view of a material master record.

Logistics Production Process Master Data Material Master

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Material Master Data

Basic Data: This level contains material data that commonly apply to entities in a client. Basic data can be, for example, a description, weight, or volume of a material. This data is accessed using the material number.

Plant data: This level contains material data that apply to a particular plant. To access the

Plant data a plant number must be specified

along with the material number. To create abill of material and a master recipe the specificplant level view must exist for the material master.

Storage location: This level contains material data specific to a storage location. To access the storage location data, you need to specify the plant number and the storage location number along with the material number.

Some material data can be used at all organizational levels, while other material data is specific to certain levels. The material master is designed in a way that it reflects the hierarchical structure of the company. It will be maintained centrally without data redundancy. The material master record information is organized in a hierarchical fashion, according to organizational levels.

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Bill of Material

Bills of material (BOMs) contain important basic data used in many different

organizational areas.

BOM data is, for instance, important for:

Material requirements planning

Material staging during production

Product costing

Logistics > Production > Master Data > Bills of Material > Bill of Material >

Material BOM

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3DICOEML50OB

9DICO050

2CTN452921

2IDXSOIN

2TDXC050OS

2200 TUBES

2200 TUBES

2200 TUBES

Example: Bill of Material

The above figure shows the structure of a bill of material (BOM) for a material.

The product is assigned to the BOM header. A base quantity is defined in the BOM

header and the quantities of the material components entered in the BOM items refer to

this base quantity.

Multiple BOMs can be maintained for the same product. This defines the different sets

of input materials or input material quantities that can be used to produce the same end

product. The different versions of BOMs are stored as alternative BOM.

2BDCOEML50OB

2LALOUT

2200 BOXES

220 CAR

220 LBL

2200 INS

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Resource

In the R/3 System, the terms work center and resource areapplied in different contexts, depending on the type of

production you are carrying out.

A work center is commonly found in discrete manufacturing,

whereas the term resource is generic and refers to workcenters as well as production lines, processing units and

other means of production such as tanks, vessels, storage

basins, transport facilities, etc.

Logistics Production-Process Master Data Resources

Resources represent means of production in the production process.

Resources are pieces of equipment used in production planning.

For example, the data you maintain for a resource are used for:

Scheduling process orders

Capacity requirements planning

Product Costing and order costing

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DispatchExtraction

of Raw Material

MaterialPreparation

Filling Packaging

TRIFED SYRUP

Mixer Filler PackingResources

Resource

Resources are defined for each plant and are associated to a cost center.

Associating a resource to a cost center enables product costing and order costing.

Resources also have information concerning capacities and scheduling.

Examples of Resource Category are: processing unit, personnel resources, and

storage resources.

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Master Recipe

A master recipe describe an enterprise-specific process in process industries without

relating to a specific order.

Master recipes are used as a reference for process orders, for product costing and for

production planning. The recipe links the planning of operations with resources and

standard times , materials and inspection characteristics.

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Master Recipe

The master recipe is the basis for the creation of process orders. A process order

initiates the actual production process. It contains all information specified during

process planning, such as production date and quantities to be produced.

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SAP AG 1999

Planning Process: Overview (I)

Sales information system Forecast

Sales quantities

Sales plan: Sales quantities

Production plan: Production quantities

Demand program: Independent requirements

SOP

Sales and operations

planning

Demand Management

??? products

Type I Type II .

Type I Type II .

...

...

...

Optimizer

Planning Process: Overview

The planning of the sales and production quantities are carried out in different levels

of detail. The graphic below and the next graphic provide an overview of the planning

levels preceding production in the R/3 System.

The purpose of Sales and Operations Planning is to specify sales quantities and

inventory plans for the long and medium term and to roughly plan the production

activities necessary to achieve these objectives.

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SAP AG 1999

Planning Process: Overview (I)

Sales information system Forecast

Sales quantities

Sales plan: Sales quantities

Production plan: Production quantities

Demand program: Independent requirements

SOP

Sales and operations

planning

Demand Management

????? products

Type I Type II .

Type I Type II .

...

...

...

Optimizer

Planning Process: Overview (Sale and Operations Planning - SOP)

Sales and Operations Planning can either be carried out at material level or via product

groups. These product groups are used for planning large numbers of finished products

within a plant.

The starting point is to determine the

sales quantities of future periods using

forecasting and Optimizer.

On the basis of your projected sales

quantities, a production plan for long- and

mid-term production quantities is

generated.

The sales and operations planning

quantities are broken down by

individual product group members and

passed on to demand management.

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Planned orders

MRP

Material Requirement

Planning

PP-PI

Process

Manufacturing

Tablets

Prod-1 Prod-2 ...

...

Process orders

Demand Management Tablets Capsules . ... Demand program: Independent requirements

...

Planning Process: Overview (Demand Management-DM)

In demand management, requirement quantities and dates are determined for finished

products.

The demand program exists in the form of independent requirements, which means the

materials are not related to a specific process order.

The Material Requirements Planning (MRP) controller can either create it directly or use

the planning results.

In addition, demand management is also

used to specify the strategy to be used for

planning a product.

Examples of planning strategies are:

make-to-stock production and

make-to-order production

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Material Requirements Planning MRP

The main task of material requirements planning is to determine which material is

required in which quantity at what time and then to create the necessary planned

orders. For a planned order, the material BOM is exploded and dependent

requirements are created for the material components on the material staging date.

Planned orders are also created to cover these dependent requirements in a multi-level

MRP run.

In the case of in-house production, planned orders are created and converted to process

orders.

In the case of external procurement, purchase requisitions are created and converted to

procurement elements.

In some instances planned order will use both in-house production and external

procurement.

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Material Requirements Planning-MRP (02)

.

Logistics Production - Process MRP Planning Single-Item, Multi-

Level

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MRP -Bill of Materials (BOM) Explosion

Look at the MRP overview from the point of view of a bill of material.

MRP begins by calculating demand for the finished product. This consists of sales

orders and requirements. If we do not have enough available stock to cover this demand

MRP will create a planned order.

The bill of material of the planned order for the finished product is exploded.

This creates dependent requirements for the semi-finished materials.

At the next level of the bill, MRP calculates demand for each semi-finished material.

If we do not have enough available stock, MRP will create a planned order.

At the lowest level of the bill, MRP again calculates demand. If we do not have enough

available stock, MRP will create a planned order (or a purchase requisition).

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Capacity Planning

Capacity Planning in the Process Industry:

In production planning for process industries, capacity leveling functions are

used to commit resources. The objective is to achieve optimal utilization of

resources and carry out detailed sequencing.

FeaturesCapacity planning comprises the following components:

Capacity Evaluation : In the capacity evaluation, available capacity and capacity

requirements are determined and compared with each other in lists or graphics.

Capacity leveling : The objectives of capacity leveling are:

Optimal capacity commitment Selection of appropriate resources

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The graphic shows the main steps that are carried out during process order management

to control process manufacturing in the R/3 System.

The procedure involved in process order management can be divided into the following

steps:

Process planning

Process order execution

/ process management

Order completion

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The graphic shows the functions that

are automatically carried out when you

create a process order.

All these functions are carried out in the

background. The production scheduler

does not have to do anything unless a

problem occurs (for example, a master

recipe does not exist).

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Production confirmation is used to

record

The quantity processed in a phase

How much activity is used to carry out a

phase

The actual dates of a phase

The resource at which the phase is

carried out

Who carried out the phase.

Confirmation Goods Receipt

.

Storage location

Goods Issue

Batch

Determination

(FEFO/FIFO)

Updates

Plant Stock

Precise completion confirmations are important in realistic

and exact production planning and Capacity planning

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Reports

BOM Level by Level

Resource List

Where used list - Resource

Stock & Requirement list

MRP List

Process Order Status Report

Capacity load report

Product Cost Planned vs Actual

Production Plan and Actual

Ware house Stocks of material on hand

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