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SCM300SCM300 Production Overview

mySAP Supply Chain Management

Date

Training Center

Instructors

Education Website

Participant HandbookCourse Version: 2005 Q2Course Duration: 3 Day(s)

Material Number: 50073568

An SAP course - use it to learn, reference it for work



Copyright

Copyright © 2005 SAP AG. All rights reserved.

No part of this publication may be reproduced or transmitted in any form or for any purpose without

the express permission of SAP AG. Additionally this publication and its contents are provided

solely for your use, this publication and its contents may not be rented, transferred or sold without

the express permission of SAP AG. The information contained herein may be changed without

prior notice.

Some software products marketed by SAP AG and its distributors contain proprietary software

components of other software vendors.

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THESE MATERIALS ARE PROVIDED BY SAP ON AN "AS IS" BASIS, AND SAP EXPRESSLY

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SOFTWARE COMPONENTS.



About This Handbook

This handbook is intended to complement the instructor-led presentation of this

course, and serve as a source of reference. It is not suitable for self-study.

Typographic Conventions

American English is the standard used in this handbook. The following

typographic conventions are also used.

Type Style Description

Example text Words or characters that appear on the screen. Theseinclude field names, screen titles, pushbuttons as well

as menu names, paths, and options.

Also used for cross-references to other documentation

both internal (in this documentation) and external (in

other locations, such as SAPNet).

Example text Emphasized words or phrases in body text, titles of

graphics, and tables

EXAMPLE TEXT Names of elements in the system. These include

report names, program names, transaction codes, tablenames, and individual key words of a programming

language, when surrounded by body text, for example

SELECT and INCLUDE.

Example text Screen output. This includes file and directory names

and their paths, messages, names of variables and

parameters, and passages of the source text of a

program.

Example text Exact user entry. These are words and characters that

you enter in the system exactly as they appear in the

documentation.

<Example text> Variable user entry. Pointed brackets indicate that you

replace these words and characters with appropriate

entries.

2005/Q2 © 2005 SAP AG. All rights reserved. iii



About This Handbook SCM300

Icons in Body Text

The following icons are used in this handbook.

Icon Meaning

For more information, tips, or background

Note or further explanation of previous point

Exception or caution

Procedures

Indicates that the item is displayed in the instructor’s

presentation.

iv © 2005 SAP AG. All rights reserved. 2005/Q2



Contents

Course Overview ....... ....... ....... ....... ....... ...... ....... ....... .. vii

Course Goals ....... ........ ........ ........ ........ ....... ........ .....vii

Course Objectives .. .... ... .... .... .... .... .... .... ... .... .... .... .... viii

Unit 1: Introduction........................................................ 1

Production Types in the mySAP ERP and mySAP SCM

Solutions.............. ........ ........ ....... ........ ........ ........ .2

Unit 2: Order-Controlled Production with Production Orders..11Order-Controlled Production with Production Orders ............ 12

Elements, Functions, and Processing of a Production Order ... 22

Unit 3: Order-Controlled Production with Process Orders.. .. . 85

Order-Controlled Production with Process Orders ............... 86

Elements, Functions, and Processing of a Process Order ...... 97

Unit 4: Repetitive Manufacturing.. .. ... .. .. .. ... .. .. ... .. .. ... .. .. .. 151

Characteristics of Repetitive Manufacturing. .. .. .. .. .. .. .. .. .. .. .152

Functions and Process Steps in Repetitive Manufacturing.. . . .169

Unit 5: KANBAN ....... ....... ....... ...... ....... ....... ....... ....... .. 209

Features of the KANBAN Procedure .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 210The KANBAN Procedure...... .... .... .... .... .... ... .... .... .... ... 214

Unit 6: Project-Oriented Production (optional) .................. 227

Characteristics of Project-Oriented Production ..................228Process Flow of Project-Oriented Production .. .. .. .. .. .. .. .. .. .. 234

Appendix 1: Summary ...... ....... ....... ....... ....... ....... ..... 255

Appendix 2: References ... .... ... ... .... ... .... ... .... ... .... ... ... 261

2005/Q2 © 2005 SAP AG. All rights reserved. v



Contents SCM300

vi © 2005 SAP AG. All rights reserved. 2005/Q2



Course Overview

Manufacturing is part of the mySAP SCM (Supply Chain Management) and

mySAP ERP (Enterprise Resource Planning) solutions within the mySAP Business

Suite. You can use manufacturing to manage all the manufacturing activities

within your supply chain in one integrated system – from planning through

execution to analysis. The focus of this course is execution. The following topics

are dealt with, in particular:

• Order-Controlled Production with Production Orders

• Order-Controlled Production with Process Orders

• Repetitive Manufacturing

• KANBAN

• Project-Oriented Production (optional)

Information About the SAP Software Components

The information in this training course applies to the following SAP software

components and releases:

• ECC 5.0

• SCM 4.1

Target Audience

This course is intended for the following audiences:

• Project team members and key users (people from relevant departments)

who are responsible for implementing shop floor control within the mySAP

Business Suite solutions

Course Prerequisites

Required Knowledge

• SAPSCM: mySAP SCM Overview

Recommended Knowledge

• SCM200 Supply Chain Planning Overview (SCM)

• SCM100 Supply Chain Planning Overview (ERP)

• PLM100 Lifecycle Data Management

2005/Q2 © 2005 SAP AG. All rights reserved. vii



Course Overview SCM300

Course Goals

This course will prepare you to:

• Understand the positioning, integration, and functions of the manufacturing

area within the mySAP ERP (Enterprise Resource Planning) and mySAP

SCM (Supply Chain Management) solutions

• Obtain an overview of the supported production types

Course Objectives

After completing this course, you will be able to:

• Describe basic shop floor control procedures and functions and understand

simple scenarios in the SAP System

SAP Software Component Information

The information in this course pertains to the following SAP Software Components

and releases:

• ECC 5.0

viii © 2005 SAP AG. All rights reserved. 2005/Q2



Unit 1Introduction

Unit Overview

Production types in the mySAP ERP and mySAP SCM solutions

In this unit, you learn about the production types within the mySAP Business Suite.

Unit Objectives

After completing this unit, you will be able to:

• Name the production types supported within the mySAP Business Suite

Unit Contents

Lesson: Production Types in the mySAP ERP and mySAP SCMSolutions ..... ........ ....... ........ ........ ........ ....... ........ ........ ........ .2

2005/Q2 © 2005 SAP AG. All rights reserved. 1



Unit 1: Introduction SCM300

Lesson: Production Types in the mySAP ERP and

mySAP SCM Solutions

Lesson Overview

In this lesson, you learn about the production types that are supported within the

mySAP Business Suite.

Lesson Objectives

After completing this lesson, you will be able to:


Business Example

Your company implements the mySAP Business Suite. You are either a member

of the project team responsible for implementing the shop floor control functions

or you are in the production department. You use various scenarios to gain an

overview of the possibilities and functions of the supported production types.

Overview of SAP Solutions

Figure 1: mySAP ERP Solution Map (2005)

SAP offers a mySAP Business Suite, consisting of several solutions, as part of

its long-term product strategy.

2 © 2005 SAP AG. All rights reserved. 2005/Q2



SCM300 Lesson: Production Types in the mySAP ERP and mySAP SCM Solutions

The Enterprise Resource Planning (ERP) solution is a comprehensive solution

that allows a company to efficiently plan, manage, and check complex delivery,

procurement, and production networks.

This solution supports a synchronized and close interaction between all

departments involved (and all people involved) within a supply chain.

Customers, sales, production planning, manufacturing, warehouse management,

purchasing, and vendors are all included in this complete solution.

The mySAP ERP solution covers several areas (see above).

For more information about the individual components of the mySAP ERP

solution, see

http://www.sap.com/solutions/businessmaps/solutionmaps/

and cross-industry business maps.

Figure 2: mySAP SCM Solution Map (2004)

mySAP Supply Chain Management (SCM) is a comprehensive solution thatallows a company to efficiently plan, realize, and monitor complex delivery,

procurement, and product relationships (supply chains).

This solution supports a synchronized and close interaction between all

departments involved (and all people involved) within a supply chain.

Customers, sales, production planning, manufacturing, warehouse management,

purchasing, and vendors are all included in this complete solution.





The processing of cross-company or collaborative planning and procurement

processes, which also allow a connection to open marketplaces, is a main feature

of this solution.

The mySAP SCM solution covers several areas (see above).

For more information about the individual components of the mySAP SCM

solution, see

http://www.sap.com/solutions/businessmaps/solutionmaps/

and cross-industry business maps.

Figure 3: SAP Components

In-house production is supported above all by the SAP ECC component

(formerly R/3).

SAP SCM provides above all enhanced planning tools(Advanced Planning and

Optimization (APO)), an enhanced inventory function (Inventory Collaboration

Hub (ICH), and an Event Management (EM).

SAP BW (Business Information Warehouse) is used to separately store data for variable evaluations.

Interfaces that integrate ECC with SCM, BW, or CRM are provided by an

appropriate plug-in.

The interface between ECC and SCM (APO) is called a Core Interface (CIF).

Sales orders can be managed already with the SAP CRM component, but also

in SAP ECC.




SCM300 Lesson: Production Types in the mySAP ERP and mySAP SCM Solutions

Production Types

Depending on the manufacturing process, product complexity, stability of

production, and other criteria, a company has various requirements with regard

to shop floor control.

For this reason, the mySAP ERP and mySAP SCM solutions support a variety of

production types.

Figure 4: Production Types (1)

Figure 5: Production Types (2)





Lesson Summary

You should now be able to:• Name the production types supported within the mySAP Business Suite




SCM300 Unit Summary

Unit Summary

You should now be able to:





Unit Summary SCM300




SCM300 Test Your Knowledge

Test Your Knowledge

1. Name the production types that are supported within the mySAP Business

Suite.




Test Your Knowledge SCM300

Answers

1. Name the production types that are supported within the mySAP Business

Suite.

Answer:

• Order-related production with production order

• Order-related production with process order

• Repetitive manufacturing:

– Period and quantity-oriented production

– Not order-related

• Kanban:

– Replenishment-controlled using stock transfer, external

procurement, in-house production via self-controlled control cycle

• Project-oriented production with production lot




Unit 2 Order-Controlled Production with

Production Orders

Unit Overview

In this unit, you learn about order-controlled production with production orders.

Unit Objectives


• Explain the characteristics of order-based production with production orders

• Describe the main steps for managing production orders

• Assess the main functions for managing production orders

Unit Contents

Lesson: Order-Controlled Production with Production Orders. .. . . . .. . . . .. 12

Lesson: Elements, Functions, and Processing of a Production Order. . .. 22Exercise 1: Integration with Planning; Order Creation with Planned

Orders, Order Structure...... ... .... ... .... ... .... .... .... ... .... .... .... ... 45Exercise 2: Order Release and Order Processing...................... 65




Unit 2: Order-Controlled Production with Production Orders SCM300

Lesson: Order-Controlled Production with Production

Orders

Lesson Overview

The following topics are dealt with in this lesson:

• Application areas of production orders

• Order-controlled production: characteristics

• Cross-application functional process

• Master data for production orders

Lesson ObjectivesAfter completing this lesson, you will be able to:


Business Example

Your company manufactures some kind of order-related product. You belong to

the team that is implementing production orders in PPS. To do this, you must

implement the entire process chain for in-house production, which will allow your

company to organize, control, and execute production within a plant, based on

production planning and control solutions.




SCM300 Lesson: Order-Controlled Production with Production Orders

Application Areas of Production Orders

Figure 6: Application Areas of Production Orders

Production orders are used in a variety of industries and industry sectors.

Production orders can be used in a number of production types.

These production types are mainly dependent on the product stability, productcomplexity, and the production procedures used.





Characteristics

Figure 7: Order-Controlled Production: Characteristics (1)

Figure 8: Document Type, Order Category, Order Type

In the SAP system, you use the document type to distinguish between business

transactions.





Orders are one type of business transactions.

The order category is used to distinguish between the various orders that are used

in the different applications.

The client-specific order category definitions for each application cannot be

changed.

Within an application, users can define order types for an order category.

The order type controls various processes and functions:

• Number assignment

• Setting default values

• User-defined status management

• User-defined field control (not for production orders in Release ECC 5.0)You make all necessary settings in Customizing.







A number of functions are available for production orders, which allow for

complex support of production (see following slides).

The course SCM310 covers a selection of the most important functions in detail.







Cross-Application Functional Process

Figure 13: Cross-Application Functional Process

Production order management is a central part of a complex process chain

starting with an independent requirement (planned or customer requirement)

and ending with the goods issue of a finished product.





Production order management controls the whole process of in-house production

of products and is integrated in the functions of capacity requirements planning,

costing, and inventory management. Furthermore, there are links and interfacesto Quality Management as well as external systems.

The production order management uses the following system elements:

ALE, Workflow, Customizing, text processing, factory calendar, classification,

communication, and graphics.

Master Data for Production Orders

Figure 14: Master Data for Production Orders

The material to be produced must have the in-house production (X,E)

procurement type.

The BOMs are single-level BOMs. A special selection procedure chooses the

valid BOM.

The routings are normal routings. A special selection procedure chooses the

valid routing.

Work centers are assigned to operations in the routing.

Production resources/tools are assigned to operations in the routing.

Documents (managed in the document management system) can be linked with

and displayed in the production order.





Demo Scenario: Pump Production in Plant 1000

Figure 15: Demo Scenario: Pump Production in Plant 1000

Demonstration of production with production orders:

Pumps and their components are manufactured in plant 1000. The final and

pre-assembly as well as assembly production take place in the warehouse and partially as make-to-order production. Production is organized on the basis of the

workshop principle. The individual parts for assembly production are transferred

from the material stock to production by picking or using a pull list. When the

assembly is confirmed, the assembly stock receipt is posted directly to the storage

location that is assigned to the final assembly production line. Components

for final assembly that are not produced at the assembly production lines are

transferred from material stock via the pull list.

The most important data in the training system is:

Material numbers

R-F1## Pump (Make-to-stock and make-to-order

production)

R-B1## Casing (Make-to-stock production)





Material numbers

R-B2## Warehouse (Make-to-stock production)

R-B3## Shaft (Make-to-stock and make-to-order

production)

R-B4## Electronics (Make-to-stock production with production

version)

Work centers

R-V## Pre-assembly 1

R-M## Pre-assembly 2

R-E## Final assembly 1

R-L## Paint shop

R-F## Final assembly 2

R-P## Check





Lesson Summary

You should now be able to:• Explain the characteristics of order-based production with production orders





Lesson: Elements, Functions, and Processing of a

Production Order

Lesson Overview

In this lesson, you learn about important elements and functions of a production

order as well as the typical way it is processed.

Lesson Objectives




Business Example

Important steps for order-related production are order creation, scheduling,

release, printing papers, material withdrawal, execution, confirmation, goods

receipt, and settlement. These functions are integrated with other areas in your

company, such as controlling and warehouse management. For this reason, you

must take into account the extensive integration relationships of production orders

during implementation.




SCM300 Lesson: Elements, Functions, and Processing of a Production Order

Production Order Processing and Structure

Figure 16: Production Order Processing

The production order goes through a number of individual activities.

Many of these activities can run automatically or in the background so thatmanual processing of orders is minimized.

WIP determination, variance calculation, and settlement are generally

periodic work for Cost Object Controlling ("COC"), and are usually processed in

the background.

A number of settings available in Customizing allow you to successfully perform

each step in order processing.

(1) These functions can be automated.





Figure 17: Elements of a Production Order

The order structure represented can be enhanced by certain elements.

At least one operation is required. If necessary, the system creates one

automatically.

You can choose whether to assign material components, production

resources/tools and trigger points to the operation. You can create several(parallel) operation sequences.

You can make a selection from several alternative sequences.

Suboperations are permitted within an operation.

Costs are determined at operation level, submitted at order header level and a

settlement rule is created for the orders for order-related COC only.

You can link production orders to documents in the Document Management

System (DMS).





Order Creation Options

Figure 18: Order Creation Options

Operations, material components and PRTs are usually taken from the routing

and the BOM.

You can enter whatever data you like manually.When a planned order is converted, the BOM is not read again.

If not otherwise specified in the routing, the components of the BOM are

assigned to the first operation.





Integration with Planning (ECC or SCM (APO))

Figure 19: Integration with Planning (ECC or SCM (APO))

The ERP and SCM components offer two solutions for integrating planning

and production:

• Planning with the functions belonging to the SAP SCM (APO) component

• Planning with the functions belonging to the SAP ECC component

Production preparation, execution, and control are always performed with the

functions of the ECC component but also in line with the production type.

These functions include costing, release, material staging, confirmation, goods

movements, and settlement.

Other functions (scheduling or the availability check, for example) can be carried

out using either of the SAP components. Between the two SAP components, the

master data and transaction data (planned orders, production orders, purchase

requisitions, purchase orders, stocks, and so on) are usually exchanged (mirrored)

using the Core Interface (CIF).

Specific events lead to the transfer of data from ECC to APO (release,

confirmation, goods receipt) and vice versa.

Sales orders are usually entered in ECC and then transferred to SCM (APO).





Planned orders can be generated in material requirements planning in ECC

(MRP) or in SCM using the following components:

• Supply Network Planning in SAP APO (SNP)

This performs cross-plant planning in a long-term planning horizon across

the whole supply and procurement chain. Stock transport requisitions

(distribution), planned orders (in-house production), and purchase

requisitions (external procurement) are generated for each production plant.

• Production Planning and Detailed Scheduling in SAP APO (PP/DS)

This generates planned orders and purchase requisitions in a defined

short-term time period (production horizon) in the production plant.

The SCM210 course covers the Core Interface (CIF) in detail.

The SCM220 courses up to SCM260 and SCM360 cover the planning tools in

detail.

Order Creation with Planned Orders

Figure 20: Order Creation with Planned Orders

Planned orders are created in material requirements planning (ECC - MRP)

or in planning in SCM (APO – PP/DS or APO - SNP).

The creation of production orders using planned orders is the most important

application form in the whole PP application.

The production order data is created automatically in this way.





Inspection data is copied from the routing when an inspection lot is generated,

but is not written in the production order.

Planned orders generated during planning can be converted to production orders

(and purchase requisitions to purchase orders) by the MRP controllers (purchasers)

in both SCM (APO) and ECC.

Order Release Functions

Figure 21: Order Release Functions

The order release is the basis for the processes that follow the production order

(printing order documents, material withdrawal, and so on).

Production orders are managed using statuses.

When an order is released, a status is set accordingly.

An availability check can be executed automatically.

You can release an individual operation, a whole order or several orders together.

A corresponding function is also available for the mass release of operations or

orders (see the “Mass Processing” section ).





Detailed Scheduling (Work Center Scheduling)

Figure 22: Detailed Scheduling (Work Center Scheduling)

Detailed planning (work center processing) can be carried out both in ECC

(capacity planning) and in SCM (APO).

A prerequisite for all methods of detailed scheduling is long-term ormedium-term capacity requirements planning.

You can use the order information system to create a list of the operations for

each work center.

To do this, you must develop a special layout.

The courses SCM260 (APO) and SCM360 ECC cover capacity requirements

planning in detail.





Example: Detailed Scheduling Planning Board (APO)

Figure 23: Example: Detailed Scheduling Planning Board (APO)





Availability Checks (Material, Capacity, PRT)

Figure 24: Availability Checks (Material, Capacity, PRT)

Production orders can be manually or automatically checked individually or

with mass processing at different times.

Check instructions control the availability check.

Inspection results

• Assigning the confirmed quantity

(Partial quantities can be confirmed)

• Material shortage status

• Missing part record

Depending on how it is controlled, the check is performed in the SAP ECC

or SCM (APO) component.





Shop Floor Papers (Standard List Types)

Figure 25: Shop Floor Papers (Standard List Types)

The standard system provides various lists.

For each order, a maximum of 20 lists may be called.

You can plot originals of documents using document distribution.





Material Staging Process

Figure 26: Material Staging Process

The basis for material withdrawal for production orders are material withdrawal

slips, pull lists, pick lists and similar documents.

The ECC system uses various methods to control material staging:

• Warehouse management with the MM-IM (Inventory Management)

component

• Replenishment control with the KANBAN component

• Storage bin management and replenishment control with the LE-WM

(warehouse management system) component

The warehouse management system offers the three following options:

Pick parts are staged directly for the production order in the amount of the

requirements quantity. The staging of these parts for the production order can be

done at a physical storage location or a dynamic one (production order). This istypical for high value parts, such as shafts, casings, and so on.

Crate parts are ordered manually when a crate is almost empty. This is typical

for small parts in containers, such as screws and nails, for example.

Release order parts are ordered manually. In this case, the required quantity is

calculated from the target quantities of the components of the selected orders that

have been released. This is typical for disk material, colors, and so on.





Production Order: Goods Issue Posting

Figure 27: Production Order: Goods Issue Posting

The goods issue posting (GI) is executed for consumption of a material

component for a production order.

The following functions are executed when a goods receipt is posted:

• Storage location-related update of stock and consumption fields

• Reduction of reservations (for planned withdrawal)

• Determination of actual costs (evaluation) and update of order

• Generation of material documents, accounting documents, and cost

accounting documents

• The material document describes the goods movement from a Materials

Management (warehouse) perspective.

• The accounting document describes the goods movement from a Financial

Accounting perspective.

• The cost accounting documents are used for various cost analysis purposes.• When you display the material document, you can branch to the other

documents.

• You can print a goods issue document.

The GI posting is controlled using a movement type (261), to which each posting

refers.

This can take place manually or automatically.





Confirmation Procedures

Figure 28: Confirmation Procedures

Confirmations are an important basis for checking progess and for subsequent

capacity requirements planning.

At the same time, the confirmation is used for entering internal activities that

have been performed for an order.

For this reason, exact real-time confirmations are of particular importance.

Confirmations from PDC systems are possible using a PP-PDC interface.

There are different confirmation procedures.

Each procedure implements different requirements that a company may have.

Depending on the application, one or more procedure may be used.

For the most part, the two main types are operation-related and order-related

confirmations.





Effects of a Confirmation

Figure 29: Effects of a Confirmation

Once an order has been confirmed, follow-on functions are performed. The

confirmed quantity, the CONF status, and the actual costs are written in the

production order.

When an operation is confirmed, an automatic goods issue is posted on the basisof the quantity that has been assigned the material components (backflush). These

material components must be prepared for backflush posting and also be provided

for use at the work center.

When you confirm the last operation that must be confirmed (or for the operation

where this posting is defined in the control key), an automatic goods receipt

is posted.

Capacity reduction is carried out either in proportion to the quantity or

activity.





Interfaces: Overview

Figure 30: Interfaces: Overview

PDC interfaces (Plant Data Collection) enable data to be exchanged between the

ECC system and subsystems (usually Plant Data Collection systems).

The PP-PDC interface has been specifically developed for production control.





Production Order: Goods Receipt Posting

Figure 31: Production Order: Goods Receipt Posting

The goods receipt posting (GR) represents the stock receipt of a product

produced using a production order.

The following functions are executed when a goods receipt is posted:

• Generation of material documents, accounting documents, and cost

accounting documents

• The material document describes the goods movement from a Materials

Management (warehouse) perspective.

• The accounting document describes the goods movement from a Financial

Accounting perspective.

• The cost accounting documents are used for various cost analysis purposes.

• When you display the material document, you can branch to the other

documents.

• You can print a goods receipt document.• Update of the delivered quantity in an order

• Evaluation of the receipt

• Credit to order

• Update of plant activity

The GR posting is controlled using a movement type (101), to which each posting

refers.

This can take place manually or automatically.





Debiting and Crediting

Figure 32: Cost Debit/Credit (Order-Related COC)

The manner in which a production order is credited and debited depends on the

variant of cost object controlling (COC) selected in Controlling.

It can be performed as follows:

• order-related

• product-related

Order settlement credits the order.

Settlement is usually periodic.

It is controlled using a settlement profile.

It makes sense to use order-related COC for the following:

• Flexible production environment• Flexible product range

• Cost management of individual production lots

• If cost controlling is required for each order

• High setup costs

• Manufacture of co-products





For in-house production of materials, it is generally best to use standard price

control. For more information about cost object controlling, see the AC510 or

AC515 courses.

Figure 33: Cost Debit/Credit (Product-Related Cost Object Controlling)

Settlement takes place periodically on the basis of the costs collected by theproduct cost collector.

In this case, there is no order settlement for the individual production order.

The production order also does not have any costs or any settlement rule.

It makes sense to use product-related COC for the following:

• Make-to-stock production

• Repetitive, mass production

• Product cost by sales order only in the profitability analysis





Mass Processing (HVOM)

Figure 34: Mass Processing (HVOM)

A standard mass processing is available for production orders.

It is integrated into the order information system (COOIS) and works quickly

and without dialog.

You can start mass processing with the options execute immediately, generate

function indicator, or background processing.

If orders are only marked, these indicators must be processed later with the

COWORKDISPATCHNEW program.

A log book is kept for background processing (application log).





Order Networks

Figure 35: Order Networks

Order networks have the following advantages:

• Reduced planning, administration, and maintenance effort

Higher transparency of complex order structuresClearer overview of the relationships between orders

• Direct access to individual orders by double-clicking

• Cross-order exection of functions for the entire order network (date and

quantity changes, availability checks, releasing orders, confirmations)

Each component with the special procurement key "52" leads to an order in

the collective order.

All orders have the same order type.

The leading order can be created with an internal or external number.

Individual orders can be added or deleted.

You can choose to have automatic stock postings in the intermediate steps.





Information Systems for Order Management

Figure 36: Information Systems for Order Management

There are several information systems for production orders.

They differ in the way they use the order database (directly or indirectly) as

well as in their results.

Systems marked (1) are layout-controlled.

In the systems mentioned above, you can display capacity evaluations, batch

where-used lists, and other lists.





Exercise 1: Integration with Planning;

Order Creation with Planned Orders, Order Structure

Exercise Objectives

After completing this exercise, you will be able to:

• Perform the requirements planning

• Convert planned orders to production orders

• Use the structure and interface of the production order

Business ExampleYour company consistently uses material requirements planning based on SAP

ECC or SAP SCM (APO). As the production manager, MRP controller or

production scheduler, you therefore create a large number of production orders

based on planned orders generated by the automatic material requirements

planning run.

List of abbreviations for menu paths:

ECC System SAP ECC

SCM System SAP SCM

LO LogisticsPP Production

SFC Shop Floor Control

MM Materials Management

SD Sales and Distribution

Task 1:

1.

Continued on next page





Figure 37: Exercise Data ECC (1)







Figure 39: Exercise Data SCM (1)







Task 2:

Based on planned independent requirements, you generate planned orders, convert

them to production orders (individual and collective conversion), and familiarize

yourself with the order structure.

1. In this step, adjust the interface and functionality of the stock/requirements

list for your requirements.

Hint: The stock/requirements list (SAP ECC) and the product

view (APO) are important tools that are used daily by MRP

controllers and the production schedulers.

Call the stock/requirements list for material R-F1## in plant 1000 and assign

yourself the navigation profile for a production scheduler:

Checking rule for ATP display PP

Navigation profile SCM310_01

2. Check the stock/requirements situation for the following materials.

R-F1## Finished products

R-B3## Assembly

Write down the current non-restricted plant stock:

R-F1## ______________________

R-B3## ______________________

3. Enter a sales order in Sales and Distribution for product R-F1## with the

order quantity 1 piece.

Use the following requirements parameter:

Order type OR (standard order)

Sales organization 1000

Distribution channel 10 (End customer sales)

Division 00 (Division-wide)






Sales office 1000 (Frankfurt)

Sold-to party 1000 (Becker Company, Berlin)

Ship-to party 1000 (Becker Company, Berlin)

PO number GR##_001

Requested delivery date Current date + 1 month

Hint: If the system suggests a different delivery date, confirm this

by choosing Enter .

Save the sales order.

Write down the order number and item:Order number ________________ Item _________

4. Perform multi-level material requirements planning (single-item) for the

product R-F1xx in plant 1000.

Use the following data:

Field Entry

Processing Key NETCH (Net change for the total horizon)

Create purchase

requisition

3 (only planned orders)

Delivery schedules 1 (none)

Create MRP list 1 (always)

Planning mode 1 (normal mode)

Scheduling 2 (lead time scheduling)

Caution: Do not select any checkboxes in the Process control

parameters screen area.






5. Check the stock/requirements situation again for the materials R-F1## and

R-B3##. What do you notice?

Task 3:

You familiarize yourself with the planned order structure and then convert the

planned orders to production orders (individual and collective conversion).

1. Examine the details for a planned order of material R-F1## by displaying the

order from the stock/requirements list.Write down the number of this planned order:

____________________________

2. Choose the Header tab page and make a note of the planned dates.

Planned start date: ________________

Planned finish date: ________________

Planned opening date: ________________

Availability date: ________________

Does the planned order have a production version?

3. Choose the Assignment tab page. Who is the production scheduler

responsible?

4. Display the material components (dependent requirements) of the planned

order.

5. Convert the planned order with the total quantity to a production order of the

order type PP01. To do this, follow the menu path in Production Control.

Write down the number of the production order created:

____________________________

6. Is the converted planned order still in the stock/requirements list?

Hint: Planned orders can also be converted to production orders

from the stock/requirements list. To do so, choose or double-click to

select the planned order and then ProdOrd .






7. Check the Assignment tab page header in the production order generated.

Do you still see the reference to the planned order?

8. Convert several planned orders to production orders at the same time. Use

collective conversion to do this.

Select the planned orders to be converted with the following parameters:

Planning plant: 1000

MRP controller 0##

Material R-F1##

Order type PP01

Limit the selection date (to one month before or one month after the current

date).

Write down the numbers of the planned orders you converted:

Planned order number Production order number

____________ ____________

____________ ____________

____________ ____________

Task 4:

In one of the production orders you have generated, look at the individual data

segments, screens, and data fields in the following sequence.

Note down any questions you may have on the meaning of the data fields and

ask your instructor.

1. Order header screens

Choose the appropriate tab for the following screens:






• General

• Assignment

• Goods receipt

• Process Execution

• Dates/Quantities

• Master Data

• Long text

Also notice the settlement rule of the order.

2. Overview of operation sequences

3. Operation sequence details

4. Operation Overview

5. Screens of the Operation

Select the operation “0010”.

6. Material components - Overview

7. Screens of the material component

Select the component “0010”. Display the General Data and the Long Text .

8. Production resource/tool overview for operation “0010”






9. Screens of the PRT

Select the PRT “0010”.

10. Document overview

11. Display the document info record.

12. Display the original document.

View both originals from the order's document overview.

13. Display the costs

Itemization (costs)

Analysis (cost elements)

Cost component split (cost components)





Solution 1: Integration with Planning;

Order Creation with Planned Orders, Order Structure

Task 1:

1.








Answer:

Task 2:

Based on planned independent requirements, you generate planned orders, convert

them to production orders (individual and collective conversion), and familiarize

yourself with the order structure.

1. In this step, adjust the interface and functionality of the stock/requirements

list for your requirements.

Hint: The stock/requirements list (SAP ECC) and the product

view (APO) are important tools that are used daily by MRP

controllers and the production schedulers.

Call the stock/requirements list for material R-F1## in plant 1000 and assign

yourself the navigation profile for a production scheduler:








a) Menu path: ECC → Logistic→ Production→ Production control →

Control data→ Stock / Requirements List

b) Choose the Individual access tab and select the following objects:

Material R-F1##

Plant 1000

c) Menu path: Environment → Navigation profile→ assign

A Settings for User ......... dialog box appears with several tab pages.

d) You then immediately find yourself on the General Settings tab and

enter the following values there:



e) Save the settings.

2. Check the stock/requirements situation for the following materials.

R-F1## Finished products

R-B3## Assembly

Write down the current non-restricted plant stock:

R-F1## ______________________

R-B3## ______________________

Answer:

3. Enter a sales order in Sales and Distribution for product R-F1## with the

order quantity 1 piece.

Use the following requirements parameter:

Order type OR (standard order)

Sales organization 1000

Distribution channel 10 (End customer sales)

Division 00 (Division-wide)






Sales office 1000 (Frankfurt)

Sold-to party 1000 (Becker Company, Berlin)

Ship-to party 1000 (Becker Company, Berlin)

PO number GR##_001

Requested delivery date Current date + 1 month

Hint: If the system suggests a different delivery date, confirm this

by choosing Enter .

Save the sales order.

Write down the order number and item:Order number ________________ Item _________

a) Menu path: ECC Logistic→ Sales and Distribution→ Sales→ Order

→ Create

b) The order number appears below in the status bar, once you have saved.

4. Perform multi-level material requirements planning (single-item) for the

product R-F1xx in plant 1000.

Use the following data:

Field EntryProcessing Key NETCH (Net change for the total horizon)

Create purchase

requisition

3 (only planned orders)

Delivery schedules 1 (none)

Create MRP list 1 (always)

Planning mode 1 (normal mode)

Scheduling 2 (lead time scheduling)

Caution: Do not select any checkboxes in the Process control

parameters screen area.

a) Menu path: ECC Logistic→ Production→ MRP → Planning →

Single-item, multi-level planning

b) To run the requirements planning, select Enter and confirm the entry

parameters by selecting Enter again.






5. Check the stock/requirements situation again for the materials R-F1## and

R-B3##. What do you notice?

Answer: Planned orders have been generated.

Task 3:

You familiarize yourself with the planned order structure and then convert the

planned orders to production orders (individual and collective conversion).

1. Examine the details for a planned order of material R-F1## by displaying the

order from the stock/requirements list.

Write down the number of this planned order:

____________________________

a) Choose Details of Element or double-click the order number to call the

planned order and choose Change Element .

2. Choose the Header tab page and make a note of the planned dates.

Planned start date: ________________

Planned finish date: ________________

Planned opening date: ________________

Availability date: ________________

Does the planned order have a production version?

a) No, the planned order has no production version.

3. Choose the Assignment tab page. Who is the production scheduler

responsible?

a) Production scheduler 0##

4. Display the material components (dependent requirements) of the planned

order.

a) Choose Components (quick-info Component Overview).

5. Convert the planned order with the total quantity to a production order of the

order type PP01. To do this, follow the menu path in Production Control.

Write down the number of the production order created:






____________________________


Order → Create→ From planned order

b) Enter the planned order number and press Enter .

c) Save the production order.

6. Is the converted planned order still in the stock/requirements list?

Hint: Planned orders can also be converted to production orders

from the stock/requirements list. To do so, choose or double-click to

select the planned order and then ProdOrd .

a) No, this planned order no longer exists in the stock/requirements list.

7. Check the Assignment tab page header in the production order generated.

Do you still see the reference to the planned order?

a) Menu path: ECC Logistic→ Production→ Production control →

Order → Display

b) The planned order number is still visible.

8. Convert several planned orders to production orders at the same time. Use

collective conversion to do this.

Select the planned orders to be converted with the following parameters:

Planning plant: 1000

MRP controller 0##

Material R-F1##

Order type PP01

Limit the selection date (to one month before or one month after the current

date).

Write down the numbers of the planned orders you converted:






Planned order number Production order number

____________ ____________

____________ ____________

____________ ____________


Order → Create→ Collective conversion planned orders

b) Enter the selection parameters including the planned opening date.

c) Select Execute.

d) Select the orders to be converted in the list screen of the planned orders

and choose Convert (short info Planned Orders→

Convert ).

Hint: The Convert button is on the bottom left-hand side of

the screen.

Task 4:

In one of the production orders you have generated, look at the individual data

segments, screens, and data fields in the following sequence.

Note down any questions you may have on the meaning of the data fields and

ask your instructor.

1. Order header screens

Choose the appropriate tab for the following screens:

• General

• Assignment

• Goods receipt






• Process Execution

• Dates/Quantities

• Master Data

• Long text

Also notice the settlement rule of the order.


Order → Change

Hint: If you are on a detail screen of the production order,

choose (menu pathGoto→ Header screen).

b) To call the settlement rule, choose Header → Settlement rule.

2. Overview of operation sequences

a) Choose (Menu path:Goto→ Overview→ Sequences).

3. Operation sequence details

a) Select the sequence

b) Choose (Menu path:Sequences→ Detail ).

4. Operation Overview

a) Choose (Menu path:Goto→ Overview→ Operations).

5. Screens of the Operation

Select the operation “0010”.

a) In the operation overview, select the operation for item 0010.

b) Choose (Operation→ Operation Details).

c) Choose the appropriate tab pages for the individual screens.






6. Material components - Overview

a) Choose (Menu path:Goto→ Overview→ Components).

7. Screens of the material component

Select the component “0010”. Display the General Data and the Long Text .

a) Select the component for item 0010.

b) Choose (Menu path:Component → Component Detail ).

c) Choose the corresponding tab pages for the General Data and Long

Text screens.

8. Production resource/tool overview for operation “0010”

a) Choose Goto→ Overview→ Operations.

b) Select the operation for item 0010.

c) In the lower tool bar, select PRT (short info production resource/tool

for operation).

9. Screens of the PRT

Select the PRT “0010”.

a) Select the PRT for item 0010.

b) Choose (Menu path: Production resources/tools→ Detail production

resources/tools).

c) Choose the corresponding tab pages for the General , Quantities, and

Dates screens.

10. Document overview

a) Choose (Menu path:Goto→ Overview→ Documents).

11. Display the document info record.

a) Select the first document.

b) Choose (Menu path: Document → Display document info record ).

c) Choose the appropriate tab pages for the individual screens.

12. Display the original document.






View both originals from the order's document overview.

a) Select the first document.

b) Choose (Menu path: Document → Display Original Document ).

c) Select one of the bitmap files.

d) Select Continue.

e) Repeat steps c and d for the other bitmap file.

13. Display the costs

Itemization (costs)

Analysis (cost elements)

Cost component split (cost components)

a) From the header of the production order, chooseGoto→ Costs→

Itemization then Analyze then Cost component split .





Exercise 2: Order Release and Order

ProcessingExercise Objectives


• Perform the order release

• Print shop floor papers

• Perform the material staging

• Perform the material withdrawal

• Perform an operation confirmation

• Post the goods receipt (to stock)• Check the order progress in the order information system

Business Example

Your company uses production orders to control production. As the production

manager or production scheduler, you are responsible for shop floor control, and,

as an employee in production, you work based on production orders. In this

exercise you will perform the whole management process for a production order.

It starts with the release of production orders and ends with the goods receipt

of the material produced. You will use the order information system to control

this whole process.

Task 1:

Perform collective production order release for all orders with your production

scheduler number.

Hint: Note the default release period.

1. Choose the Selection tab page and enter the following parameters:

List Order Headers

Profile Collective Release

Production plant 1000

Order type PP01

Production scheduler 0##

System status REL Released






2. Choose the Mass Processing - Release tab page and make the following

settings:

Field Setting

Function Release

Execute function Execute functionimmediately

Release control order Order release

3. Select all production orders and start the release (mass processing).

4. Check the release log for any errors.

5. Check the status changes in one of the production orders.

What is the new status?

Task 2:

Print all the shop floor papers for all the released orders of your production

scheduler number.

Use mass processing to print the production orders.


List Order Headers

Profile Order Print


Order type PP01

Production scheduler 0##Selection profile status PP00008

2. Choose the Mass Processing - Printing of Shop Floor Papers tab page and

make the following settings:






Field Setting

Function Printing of shop floor

papers

Execute function Execute function

immediately

Print mode Original print

3. Select all production orders and start printing (mass processing).

4. Check the print log for any errors.

5. Look at the printing results.



Task 3:

Perform material staging and the goods issue posting for all the released orders of

your production scheduler number.

Create a pick list for staging the material components of the order in stock.

1. Select the orders with the following parameters:

Profiles 000002 (standard pick profile)

Plant 1000

Order type PP01







2. Use the Pick function to post the goods issues and save the result.

Hint: If there is not enough stock to withdraw a material, use

transaction MB1C, movement type '561', to perform an other goods

receipt for the material. Post a sufficient quantity.

Hint: To display any errors during picking, choose Environment

→ Errors.

3. Look at the update in an order (documented goods movements, withdrawal

quantities, actual costs).

4. Check the status change in the production order.


Task 4:

Choose one of the orders processed so far for material R-F1## to perform

confirmations.

Order number : _________________________

1. Perform a final confirmation (quantity and time) for operation '0070' . Use

the operation-related confirmation for the "progress confirmation".

Hint: This type of operation-related confirmation confirms all

operations automatically and by quantity.

2. Display the confirmations performed for the order.

3. Look at the update (actual quantities, status, costs) in the order (order header,operations).

4. Check the material stock for material 'R-F1##'.

Material stock: _____________________






5. Was the stock receipt posted automatically?

6. Is the order still in the stock/requirements list?



Task 5:

Post a goods receipt for the whole order quantity of a different production orderfor material R-F1##.

1. Go to the detail screen for the posting and check the data.

Hint: The movement type for the goods receipt from production

can be found in the menu.

2. Generate the overview for the goods receipt posting.

3. Save the goods receipt and note the material document number.

____________________






4. Check the update of the delivered quantity in the order.


Task 6:

Use the order information system to check the order progress of all the

production orders for your production scheduler number.


List Order Headers

Profile (no profile)

Layout /SCM310_001


Order type PP01


2. Are the orders that have already been delivered displayed?

3. Repeat the order information system call with the following additional lists

in the selection screen. All other selection parameters remain the same.

List Documented Goods Movements

List Operations

List Object Overview

Hint: In the object overview, the system hides the layout for

technical reasons and displays profile 000000000001. In the

list generated, you can expand individual objects (operations,

components) of an order.





Solution 2: Order Release and Order

ProcessingTask 1:

Perform collective production order release for all orders with your production

scheduler number.

Hint: Note the default release period.


List Order HeadersProfile Collective Release


Order type PP01


System status REL Released

a) Menu path: ECC → Logistic→ Production Planning → Production

control → Process Execution → Collective Release.

2. Choose the Mass Processing - Release tab page and make the followingsettings:

Field Setting

Function Release


immediately

Release control order Order release

a) No solution required.

3. Select all production orders and start the release (mass processing).

a) To start the selection, choose .

b) Select all orders in the detail list.

c) To start the release, choose (menu path: Mass Processing → Execute).






4. Check the release log for any errors.

a) Choose Order (menu path: Mass Processing → Log of Last MP ).



Answer: REL (released)

Task 2:

Print all the shop floor papers for all the released orders of your production

scheduler number.

Use mass processing to print the production orders.


List Order Headers

Profile Order Print


Order type PP01


Selection profile status PP00008

a) Menu path: ECC → Logistic→ Production Planning → Productioncontrol → Process Execution→ Print .

2. Choose the Mass Processing - Printing of Shop Floor Papers tab page and

make the following settings:

Field Setting

Function Printing of shop floor

papers


immediately

Print mode Original print

a)

Hint: The original print print function prints all the released

operations of the order that have not been printed.






3. Select all production orders and start printing (mass processing).

a) To start the selection, choose .

b) Select all orders.

c) To begin printing, choose (menu path: Mass processing → Execute ).

4. Check the print log for any errors.

a) Choose Order (Menu path: Mass processing → Log of last MP ).

5. Look at the printing results.

a) Menu path: ECC → System→ Services→ Output control or transaction

SP01.

b) Use your user name and the current date to select.

c) Choose Selection→ Execute.

d) Select a spool order.

e) Choose Display Content .



Answer: PRT (printed)

Task 3:

Perform material staging and the goods issue posting for all the released orders of

your production scheduler number.

Create a pick list for staging the material components of the order in stock.


Profiles 000002 (standard pick profile)

Plant 1000

Order type PP01



control → Goods Movements→ Material staging → Picking .

b) Enter the selection parameters.

c) Choose Execute.






2. Use the Pick function to post the goods issues and save the result.

Hint: If there is not enough stock to withdraw a material, use

transaction MB1C, movement type '561', to perform an other goods

receipt for the material. Post a sufficient quantity.

Hint: To display any errors during picking, choose Environment

→ Errors.

a) Select all components in the list.

b) Choose Pick .

c) In the pick list, choose Save.

3. Look at the update in an order (documented goods movements, withdrawal

quantities, actual costs).

a) Choose Goto→ Documented Goods Movements.

b) Choose Goto→ Costs→ Analysis.



Answer: GMPS (Goods movement posted)






Task 4:

Choose one of the orders processed so far for material R-F1## to perform

confirmations.

Order number : _________________________

1. Perform a final confirmation (quantity and time) for operation '0070' . Use

the operation-related confirmation for the "progress confirmation".

Hint: This type of operation-related confirmation confirms all

operations automatically and by quantity.


control →

Backflushing →

indep. reqmt →

For Operation→

ProgressConfirmation.

b) Enter the order number.

c) Choose Enter .

d) Select operation 0070.

e) Choose Final Confirmation on the Quantity/Activities tab.

f) Choose Save.

2. Display the confirmations performed for the order.

a) Menu path: ECC → Logistic→ Production Planning → Productioncontrol → Backflushing → Display.

b) Enter the order number.

c) Select an operation.

d) Choose Detail .

3. Look at the update (actual quantities, status, costs) in the order (order header,

operations).

a)

4. Check the material stock for material 'R-F1##'.

Material stock: _____________________


control → Info System→ Stock Overview.

5. Was the stock receipt posted automatically?

Answer: Yes.






6. Is the order still in the stock/requirements list?

Answer: No.



Answer:

CNF (confirmed)

DLV (delivered)

Task 5:

Post a goods receipt for the whole order quantity of a different production order

for material R-F1##.

1. Go to the detail screen for the posting and check the data.

Hint: The movement type for the goods receipt from production

can be found in the menu.


control → Goods Movements→ Goods receipt .

b) Enter movement type 101 and the order number.

c) Choose Enter .d) Choose Copy→ Detail screen appears.

2. Generate the overview for the goods receipt posting.

a) Choose Copy.

3. Save the goods receipt and note the material document number.

____________________

a)

4. Check the update of the delivered quantity in the order.


Answer: DLV (delivered)

Task 6:

Use the order information system to check the order progress of all the

production orders for your production scheduler number.







List Order Headers

Profile (no profile)

Layout /SCM310_001


Order type PP01



control → Infosystem→ Order information system.

b) Enter the selection parameters.

c) Choose Execute.

2. Are the orders that have already been delivered displayed?

Answer: Yes.

3. Repeat the order information system call with the following additional lists

in the selection screen. All other selection parameters remain the same.

List Documented Goods Movements

List Operations

List Object Overview

Hint: In the object overview, the system hides the layout for

technical reasons and displays profile 000000000001. In the

list generated, you can expand individual objects (operations,

components) of an order.

a) Enter the selection parameters.

b) Select Execute.

c) When you have called the object overview, expand individual objects.





Lesson Summary

You should now be able to:• Describe the main steps for managing production orders





SCM300 Unit Summary

Unit Summary








Unit Summary SCM300





Test Your Knowledge

1. Name some application areas for production orders.

2. Name some basic functions of the production order.

3. Name the master data for the production order.

4. Name the main steps in the processing of a production order.





Answers

1. Name some application areas for production orders.

Answer:

• Special production

• Make-to-order production

• Production by lot size

• Assembly processing/assemble-to-order

• Period-based production

• Mass production

2. Name some basic functions of the production order.

Answer:

• Status management

• Scheduling

• Calculating capacity requirements

• Costing

• Availability checks (material, PRT, capacity)

• Printing shop floor papers

• Material staging using reservations

• Confirmation of quantities, activities, and time events (variable

confirmation procedure)

• Goods receipt

• Period-end closing (Process Cost Allocation, Overhead Cost Rates,

WIP Determination, Deviation Determination, Order Settlement)

• Archiving and retrieval

• Mass processing





3. Name the master data for the production order.

Answer:

• Material

• BOM

• Work center

• Routing

• Production resources/tools

• Documents

4. Name the main steps in the processing of a production order.

Answer:

1. Order Request

2. Order Creation

3. Availability checks (can be automated)

4. Scheduling

5. Order release (can be automated)

6. Download to BDE system

7. Order printing (can be automated)

8. Material staging

9. Material consumption posting/withdrawal (can be automated)

10. Upload from PDC system

11. Confirmation (can be automated)

12. WIP determination

13. Goods receipt (can be automated)

14. Variance calculation

15. Order settlement

16. Archiving/Deletion




Unit 3Order-Controlled Production with

Process Orders

Unit Overview

In this unit, you learn about process-order-controlled production.

Unit Objectives


• Explain the characteristics of order-controlled production with process orders

• Describe the individual steps in process order management

• Describe the concept of process management and use a PI sheet to execute

a process order

• Explain the special functions for process order management in the

pharmaceutical area

Unit Contents

Lesson: Order-Controlled Production with Process Orders ... . . . .. . .. . . . .. 86Lesson: Elements, Functions, and Processing of a Process Order....... 97

Exercise 3: Master Data for Order-Controlled Production with ProcessOrders ....................................................................... 115

Exercise 4: Integration with Planning; Process Order Creation withPlanned Orders ........ ....... ........ ........ ....... ........ ........ ....... 121

Exercise 5: Process Order Release; Processing an Order with a PI

Sheet......................................................................... 133




Unit 3: Order-Controlled Production with Process Orders SCM300

Lesson: Order-Controlled Production with Process

Orders

Lesson Overview


• Application areas of process orders

• Process-order-controlled production: characteristics

• Cross-application functional process

• Master data for process orders

Lesson ObjectivesAfter completing this lesson, you will be able to:


Business Example

Your company is a process manufacturing company. You produce order-related

products. You are on the project team for implementing shop floor control

functions based on process orders.

Application Areas of Process Orders

Figure 45: Application Areas of Process Orders




SCM300 Lesson: Order-Controlled Production with Process Orders

Process orders are used in different areas of the process manufacturing industry.

Process orders can be used for various production procedures and identified, for

example, according to the criteria product complexity and product stability.

Process-Order-Controlled Production: Characteristics(1)

Figure 46: Process-Order-Controlled Production: Characteristics (1)

(*) Note:

In process manufacturing, there are usually increased requirements with regard to

the integration of batch management and quality management within the supply

chain.







Notes:

The creation of process orders corresponds in many ways to the creation of production orders. However, the following basic functions are used typically in

process manufacturing ((1),(2)) or are actually only available exclusively for

process orders ((3) - (6)).

(1) A production version must be selected for order creation.

(2) The materials in process manufacturing are typically managed in batches.

There are functions for batch number assignment for the product and for batch

determination of material components.

(3) The material quantity calculation function is available for mapping complex

material flows. By using the material quantity calculation in combination with

batch determination and using batch-specific material quantity units, you canimplement active ingredient management in the process order.

(4) The line structure of process manufacturing can be mapped in the form of

a resource network. The resources in the process order are checked against

the resource network. The resource selection function is also available for

system-supported assignment of appropriate resources.





(5) After an order is released, control recipes with parameters for the process

control level can be generated and sent to an external system or prepared within

ECC in the form of a process instruction (PI) sheet to be processed interactivelyon the screen.



Notes:

(1) In the current release, the functions for process management can only be used

as part of process orders/process manufacturing.

(1) Process management can also be used in relation to communication with the

process control level to map functions that have no reference to or only an indirect

reference to a process order.

(2) The functions for GMP-compliant production (GMP = Good Manufacturing

Practice) fulfill special requirements from the pharaceuticals industry (safe

production, product liability, obligation to produce supporting documents).

The functions flagged with (*) are supported exclusively as part of process orders.

The other functions, which are not flagged, can also be used as part of production

orders.







Notes:

(1) The function of process message evaluation assumes the use of process

management.

(2) In process manufacturing, there are usually increased requirements with

regard to the functions of the Batch Information Cockpit, the batch where-used

list, and batch derivation. However, these functions are also available as part

of production orders.







Process order management is a central part of a complex process chain starting

with a requirement (planned or customer requirement) and ending with the goods

issue of finished products.

Process order management controls the whole process of in-house production

of products.

Process order execution is integrated with the functions of capacity requirements

planning, costing, and inventory management. Integration is also provided with

ECC batch management and ECC quality management, interfaces to process

control systems, and laboratory information systems.





Master Data for Process Orders

Figure 51: Master Data for Process Orders

Master data is data in the SAP system that remains unchanged over a long

period of time. It contains information that is required in the same manner over

and over again.

The material is the central master record in logistics. In general, SAP defines a

material as a substance or commodity that is bought or sold on a commercial

basis, or is used, consumed, or created in production.

A batch is a uniquely identifiable partial quantity of a material. The batches

of one material are managed separately in stock. With regard to the production

process, a batch is a quantity of a specific material produced during a given

production run. This quantity, therefore, represents a non-reproducible unit with

unique specifications.

The master data for resources describes the means of production in the production

process.

A production version determines which alternative BOM in combination with

which master recipe is used for process order manufacturing.

The master data of the master recipes describes the production of one or more

materials in one production run without relating to a particular order.

Material BOMs describe the structure of products that are produced in a company.

They are usually created and maintained from the master recipe (integrated

maintenance).





Material and Batch

Figure 52: Material and Batch

In different sectors, especially in the process industry, it is necessary to work

continuously through the logistical quantity and value chain using homogeneous

partial quantities of a material.

In the SAP system, batch master records always depend on material master

records. Batches are created for a material.

In general, the data of a material master is valid for all batches assigned to it. In

contrast, a batch master record contains data that uniquely identifies the relevant

batch and characterizes it as a non-reproducible unit.

The characteristic batch specifications are assigned using characteristics from the

classification system in the material master and are inherited by the corresponding

batch master records.

If you want a material to be produced and managed in batches, the “batch

management requirement” indicator must be set in the material master record.A batch master record is usually created by the system in the background for

certain business operations (such as goods receipt). Users can also create batch

master records directly in master data maintenance.





Batch Management in Supply Chain Management

Figure 53: Batch Management in Supply Chain Management

Batch management is used in all areas of logistics. A batch can be traced across

the whole supply chain, from the receipt of the raw material to processing in

production and the creation of the final product, all the way to sales and deliveryto the customer.

A batch master record can be used to assign a batch to a material at different places

along the supply chain. For example, if the partial quantity of a material produced

in batches leaves a production process (process order) with certain specifications,

it is posted to stock with a batch number and can be uniquely identified there.

If a batch is required in the supply chain with certain specifications, the batch

determination function can be used to have the system find suitable batches in

stock. In production, for example, batch determination is used in a process order

to find and withdraw suitable material components for the product to be produced.





Demo Scenario: Ice Cream Production in Plant 1100

Figure 54: Demo Scenario: Ice Cream Production in Plant 1100





Lesson Summary

You should now be able to:• Explain the characteristics of order-controlled production with process orders




SCM300 Lesson: Elements, Functions, and Processing of a Process Order

Lesson: Elements, Functions, and Processing of a

Process Order

Lesson Overview

In this lesson, you learn about important elements and functions of a process order

as well as the typical way it is processed.

Lesson Objectives



• Describe the concept of process management and use a PI sheet to executea process order


pharmaceutical area

Business Example

Important steps in process order management are order creation, batch

determination, scheduling, availability checks, release, transfer of control recipes

to process control, material withdrawal, confirmations, material delivery, and

settlement. To link the process control level with process control systems and PI

sheets, you must set up the process management functions. For the productionof pharmaceutical products, you require the following functions: order approval,

material identification and reconciliation, in-process quality checks, batch records,

and digital signatures.





Process Order

Figure 55: Processing a Process Order

The figure shows the main steps that are performed during process order

management to control process manufacturing in the SAP system.

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

following steps:

• Process planning

• Process order execution / process management

• Order Completion

Many of these activities can run automatically or in the background so that manual

processing of orders is minimized.

WIP determination, variance calculation, and settlement are generally periodic

work for Cost Object Controlling and are usually processed in the background.

A number of settings must be made (Customizing) for each step to allow for

successful order processing.





Figure 56: Structure of the Process Order

Operations describe the different steps required during the production process.

For a more detailed description of these steps, operations are assigned phases.

Exactly one resource is assigned to an operation. At the same time, the resource

assignment applies for all phases assigned to the operation.

The processing sequence of the phases is defined in relationships.

The material list is made up of components representing the materials entering

and leaving the production process as well as temporarily existing materials

and their planned quantities. It also defines the assignment of these material

components to phases of the order according to their appearance in the process.

In material quantity calculation, you define formulas to calculate the material

quantities to be used or obtained in a production process, taking into account the

mixing ratios of the input materials, yield ratios of the products and remaining

materials as well as specific material attributes (for example, active ingredients).





Figure 57: Elements of the Process Order

Phases are used for scheduling, determining capacity requirements, and costing.

The dates and capacity requirements for operations are derived from the

corresponding phases.

Operations and phases can be assigned further resources or secondary

resources, if required. The same business transactions can be executed for secondary resources as for phases. Secondary resources can, for example, be

included in scheduling, capacity requirements planning, and costing.

A control key must be entered for both the phases and the secondary resources.

The control key is used to determine how an operation or phase is to be treated in

operative applications such as process orders, costing, or capacity requirements

planning.

A standard value is a planned value used to execute a phase or a secondary

resource such as the execution time. Standard values are used for calculations in

costing, scheduling, and capacity requirements planning.

Confirmations are entered for phases and secondary resources (however, not for operations).

Data for Process Management: Alternative 1:

Process instructions are structures used to transfer data from process orders to

process control (PI sheets or process control systems). Process instructions are

assigned to the phases of a process order. The process instructions are combined

into control recipes, which are then transferred to the control recipe destinations

defined for the phases.





Data for Process Management: Alternative 2:

The data for process management can be maintained alternatively in the form

of XSteps (Execution Steps) as of SAP R/3 ERP and SCM Extension 2.00

(EA_APPL_2.00). Using XSteps allows you to maintain process instructions in

the form of reusable and referenceable modules. A standard XStep repository is

available with version management.

Order Creation Options

Figure 58: Order Creation Options

To create a process order and a planned order, a suitable production version is

determined for the material based on the validity period and charge quantity range.

A production version determines which alternative BOM in combination with

which master recipe is used for production.

If a process order is created without a planned order, it takes the recipe and BOM

from the production version.

When a planned order is converted, the production version created for it is made

known to the process order and its recipe is transferred. The BOM is not reread,

but rather the dependent requirements of the planned order are converted to

reservations for the process order.





Integration with Planning (ECC or SCM (APO))

Figure 59: Integration with Planning (ECC or SCM (APO))

The ERP and SCM solutions offer two ways of integrating planning and

production:

• Planning with the functions belonging to the SAP SCM (APO) component

• Planning with the functions belonging to the SAP ECC component

Production preparation, execution, and control are always performed with the

functions of the SAP ECC component but also in line with the production type.

Such functions include costing, release, material staging, confirmation, goods


Other functions (scheduling or the availability check, for example) can be carried

out using either of the SAP components.

Between the two SAP components, the master data and transaction data

(planned orders, production and process orders, purchase requisitions, purchaseorders, stocks, and so on) is usually exchanged (mirrored) via the Core Interface

(CIF).

Specific events lead to the transfer of data from ECC to APO (release,

confirmation, goods receipt) and vice versa.

Sales orders are usually entered in ECC and then transferred to SCM (APO).





Planned orders can be generated in material requirements planning in ECC

(MRP) or in SCM using the following components:

• Supply Network Planning in SAP APO (SNP)

This component achieves cross-plant planning in a long-term planning

horizon across the whole supply and procurement chain. Stock transport

requisitions (distribution), planned orders (in-house production), and

purchase requisitions (external procurement) are generated for each

production plant.

• Production Planning and Detailed Scheduling in SAP APO (PP/DS)

This component generates planned orders and purchase requisitions in a

defined, short-term period of time (production horizon) in the production

plant.The SCM210 course covers the Core Interface (CIF) in detail.

The courses SCM220 up to SCM260 and SCM360 cover the planning tools in

detail.

Order Creation with Planned Orders

Figure 60: Order Creation with Planned Orders

Planned orders are created in material requirements planning (ECC - MRP)

or in planning in SCM (APO – PP/DS or APO - SNP).

The creation of process orders via planned orders is the most common method

when using the PP-PI application.





The process order data is created automatically in this way.

Inspection data is copied from the master recipe when an inspection lot is

generated, but is not written in the process order.

Planned orders generated in planning can be converted to process orders (and

purchase requisitions to purchase orders) by the MRP controllers (buyers) in

both SCM (APO) and in ECC.

Process Planning

Figure 61: Process Planning

Process planning comprises all activities that are performed during the time

between creation and release of a process order.

The aims and methods of resource scheduling for process orders are the same as

those for work center scheduling for production orders. They can be found in the

unit Order-Controlled Production with Production Orders on the pages Detailed

Scheduling (Work Center Scheduling) and Example: The Detailed Scheduling

Planning Board (APO) .

The availability checks for process orders are more or less the same as those for

production orders. They are described in the unit Order-Controlled Production

with Production Orders on the page Availability Check for Material, Capacity,

PRT . Note here that production resources/tools are not supported in the process

order.

The material quantity calculation and resource selection are functions that

are available for process orders only.





The functions for assigning batch numbers (for the product) and for batch

determination (for material components) can be used for both process orders

and production orders.

A greater requirement for integration with batch management is usually found in

process manufacturing.

Batch Determination

Figure 62: Batch Determination

You can use the batch determination function to assign batches with certain

material specifications required for production. The system looks for batches in

stock and selects them according to specific selection criteria.

Based on the selection criteria and a search strategy, the system looks for and

selects suitable batches in stock. An availability check is performed at batch level.

The batch determination function is also available for the following applications:

• Production order

• Repetitive manufacturing

• Sales (sales order and delivery)

• Inventory management (goods movements)

• Warehouse management





Material Quantity Calculation

Figure 63: Material Quantity Calculation

In material quantity calculation, you define formulas to calculate the material

quantities to be used or obtained in a production process, taking into account the

mixing ratios of the input materials, yield ratios of the products and remaining

materials, as well as specific batch attributes (for example, concentration, active

ingredient content).

You can also define formulas for calculating phase quantities in material quantity

calculation.

By using batch determination in combination with the material quantity

calculation and batch-specific alternative units of measure, you can implement

active ingredient management in the process order.





Order Release Functions

Figure 64: Order Release Functions

Process orders have a status management that controls the possible processing

sequence of the individual business operations. When an order is released, a status

is set accordingly.

The process order must have status Released so that the business transactions for

process order execution and process management can be executed.

You can release individual phases and operations, one complete order, or several

orders at once.

Various activities can be triggered automatically when an order is released:

• Batch number assignment for the product

• Batch determination for the material components

• Material availability check

• Control recipe generation• Generation of an inspection lot for an in-process quality check





Process Management

Figure 65: Process Management

Process management is the interface between PP-PI and the systems involved in

process control. Due to its flexible structure, it can be linked to fully-automated,

partially-automated, and manually-operated lines. Process management

includes the following functions:

• Communication with the process control level via the PI-PCS interface

or PI sheets:

– Receiving control recipes with process instructions from released

process orders. The process instructions define in detail the process

steps to be executed and the process data to be confirmed (using

process messages).

– Manual processing: formatting control recipes in natural language in

the form of PI sheets so that they can be displayed and maintained on

the screen by the process operator.

– Automatic processing: sending control recipes to process controlsystems. The data is transferred via the PI-PCS interface.

– Receiving, checking, and sending process messages with actual

process data from the process control system or the PI sheet. The data

is transferred from the external system via the PI-PCS interface.

• Reading and writing data points and events using the function SAP OPC

Data Access (SAP ODA) with the OPC server of the ECC system:

– Reading and writing using a PI sheet

– Reading using the function for automatically creating process messages





The Material Staging Process

Figure 66: The Material Staging Process

The basis for material withdrawal for process orders are material withdrawal

slips, pull lists, pick lists, and similar documents, as well as PI sheets and weighing

systems linked via the PI-PCS interface.

The ECC system has various methodsto control material staging. These include:

• Warehouse management with the MM-IM (Inventory Management)

component

• Replenishment control with the kanban component



The warehouse management system offers the three following options:

• Pick parts are staged directly for the process order in the amount of the

requirements quantity. The staging of these parts for the process order can be done at a physical storage bin or a dynamic one (process order).

For this type of staging, you can create transfer requirements manually or

automatically at order release.

• Crate parts are ordered manually when a container is almost empty.

• Release order parts are ordered manually. Here the required quantity is

calculated from the target quantity of the components of the selected orders

that have been released. The stock situation in production and replenishment

is taken into account.





Standard Postings for Process Orders

Figure 67: Standard Postings for Process Orders

The standard postings for process orders (goods issue, confirmation, goods

receipt) can be entered manually in the ECC system, or using process messages

from a PI sheet or a process control system.

The functions and procedures for manual entry of process orders are more or

less the same as those for production orders. They are explained in the unit

Order-Controlled Production with Production Orders ( goods issue posting, order

confirmation, confirmation procedures, goods receipt posting ).

The process instructions of the order define which process messages are requested

from a PI sheet or a process control system.

Confirmations are entered for phases and secondary resources (and not for

operations). The simplest confirmation procedure is the confirmation for the

process order.





Flexible Data Entry with Process Messages

Figure 68: Flexible Data Entry with Process Messages

Process messages are data structures with which actual data for a process is

confirmed from process control to one or more destinations.

You can define your own process messages in Customizing according to your own specific requirements.

The SAP standard system contains a number of predefined message categories

that enable you to transfer actual data from process control to the ECC system.





HTML-Based PI Sheet

Figure 69: HTML-Based PI Sheet

The SAP PI sheet favors processing on the screen, which means the process

operator is to enter, confirm, or complete data interactively.

In connection with the process instructions contained in a control recipe, the PI

sheet has the following elements and functions:

• Display of information about the process (control instructions, notes, and so

on)

• Input fields and tables for entering process data, input validation, signatures

• Batch determination and batch check

• Process data calculation

• Reading and writing data from internal or external applications

• Link to QM results recording

• Sequence definition for determining the processing sequence of phases

• Comments on documentation and messages from process events

As of Release 4.6C, you can generate PI sheets in HTML. The browser-based

PI sheet is an enhancement of the ABAP list-based PI sheet. It gives you the

advantage of a flexible, user-specific layout definition and allows you to define

frames, for example, for linking to documents, graphics, the Internet, and Intranet.





Production in Compliance with GMP

Figure 70: Production in Compliance with GMP

The guidelines on Good Manufacturing Practices (GMP) laid down by the U.S.

Food and Drug Administration (FDA) and other international institutions have

become an international standard in many areas of process industries. In particular,

they must be taken into account in processes of the pharmaceutical industry.

You can specify that a process order can only be created if an approved recipe

exists. The order data is therefore locked and cannot be changed. The approval

procedure is performed in SAP ECC Engineering Change Management.

You use the material identification function to check whether the material that

was picked for the process order is completely available at the production line and

will be used in the correct sequence.

You can exchange information about the product quality and analysis values

between the production plant and the laboratory or the quality assurance

system. To do this, you use the ECC Quality Management system. For batch

specification, the inspection results can be automatically transferred to the classcharacteristics of the batch produced.

You use the material reconciliation function to analyze and verify the ingredients

and yield at the end of the production process.

With regard to product liability, the batch record contains all planned and actual

data for the production process of a batch.

You can activate the digital signature function to execute certain business

operations in the ECC system.





Process Manufacturing: Information Systems

Figure 71: Process Manufacturing: Information Systems





Exercise 3: Master Data for

Order-Controlled Production withProcess Orders

Exercise Objectives


• Name the master data that is important for process-order-controlled

production

• Select production versions in mass maintenance

• Navigate from mass maintenance for production versions to master recipes

• Navigate from a master recipe to the relevant BOM (integrated BOMmaintenance)

Business Example

You are an employee in a company that produces food products and alcoholic

beverages. You are a member of the SAP project team and responsible for

implementing the functions of order-controlled production with process orders.

You will first get a general overview of the basic master data.

Next, you will display the master data production version, master recipe, and

BOM for the product T-FI1## Vanilla ice cream - packaged and become familiar

with the structure, basic data, and navigation in these master records.

Task 1:

1. First, get an overview of the menu structure for the functions of production

planning and control for process industries.

Which menu path takes you to these functions?

2. Name the basic master data for process-order-controlled production.

3. Which menu paths take you to the maintenance transactions for material

master records, batches, production versions, resources, and master recipes?

Task 2:

Go to mass maintenance for production versions and select the production

version(s) for the material T-FI1## Vanilla ice cream - packaged in plant 1100.

1. Display the details for production version 0001. Which task list and which

BOM are assigned to each other via the production version?






______________________________________________________

______________________________________________________

For which lot size range and which time period is the production version

valid?

______________________________________________________

______________________________________________________

2. Navigate from mass maintenance to the master recipe for production version

0001.

3. Get an overview of the master recipe structure and the data in the Recipe

Header , Operations, and Materials views.

4. Navigate from the master recipe view Materials to the BOM for materialT-FI1##.

5. Get an overview of the data in the BOM and then go back to the master

recipe.

6. Exit the master recipe and mass maintenance for production versions.





Solution 3: Master Data for

Order-Controlled Production withProcess Orders

Task 1:

1. First, get an overview of the menu structure for the functions of production

planning and control for process industries.

Which menu path takes you to these functions?

a) SAP standard menu→ Logistic→ Production process→(…)

The following menus appear:

- Master data maintenance

- Production planning (sales & operations planning (SOP);

production planning; MRP)

- Shop floor control (process order; production

campaign; process planning;

process management)

- Product cost planning

2. Name the basic master data for process-order-controlled production.

a) For more information, see the Master Data for Process Orders section

in your training material.

The basic master data is as follows:

• Material and batch

• Resource

• Production version

• Master recipe

• BOM






3. Which menu paths take you to the maintenance transactions for material

master records, batches, production versions, resources, and master recipes?

a) SAP standard menu→ Logistic→ Production process→ Master data

→ Material Master → (…)

→ Material Master ? Batch→ (…)

→ Production Versions

→ ? Resources→ (…)

→ Master Recipes→ ? (…)

Task 2:

Go to mass maintenance for production versions and select the productionversion(s) for the material T-FI1## Vanilla ice cream - packaged in plant 1100.

1. Display the details for production version 0001. Which task list and which

BOM are assigned to each other via the production version?

______________________________________________________

______________________________________________________

For which lot size range and which time period is the production version

valid?

______________________________________________________






______________________________________________________

a) SAP standard menu→ Logistic→ Production process → Master

data→ Production Versions

Plant: 1100

Material: T-FI1##

Enter

Double-click the row for production version 0001

Lot size from 2000 to 10000 kg

Task ListTask List Type: Master recipe

Group: T-ICE##

Group Counter: 1

BOM

Alternative BOM: 1

2. Navigate from mass maintenance to the master recipe for production version

0001.a) Choose→ recipe

3. Get an overview of the master recipe structure and the data in the Recipe

Header , Operations, and Materials views.

a) Choose the appropriate tabs to navigate.

4. Navigate from the master recipe view Materials to the BOM for material

T-FI1##.

a) In the Materials view

Choose BOM

5. Get an overview of the data in the BOM and then go back to the master

recipe.

a) To exit the BOM, choose Back (F3).

6. Exit the master recipe and mass maintenance for production versions.

a) To exit the recipe, choose Exit (Shift +F3).

To exit mass maintenance for production versions, choose Exit (Shift

+F3).





Exercise 4: Integration with Planning;

Process Order Creation with PlannedOrders

Exercise Objectives


• Execute an MRP planning run for your product

• Interpret the result of the planning run in the stock/requirements list

• Convert a planned order into a process order

• Interpret the result of the planned order conversion in the stock/requirements

list• Display a process order, navigate in the order, and name the structure and

basic data

Business Example

To find out how order-controlled production with process orders is integrated

in supply chain planning, you execute an MRP run in the ECC system for your

product T-FI1## Vanilla ice cream - packaged , starting with the existing planned

independent requirements.

You interpret the planning result in the stock/requirements list:

Planned orders relating to the planned independent requirements are created by

the planning run.

You will then convert a planned order into a process order and interpret the results

in the stock/requirements list.

Finally, you will display the newly created process order and become familiar with

the structure, navigation, and basic data in the order.

Task 1:

1. Display the current stock/requirements list for your material T-FI1## in plant 1100.

Describe the current situation:






Date MRP

Element

MRP Element

Data

Rec./ Reqd.

qty

Available

Qty

2. Perform multilevel single-item planning for your material T-FI1## in plant

1100.

3. After the planning run, display the current stock/requirements list.

Describe the new situation after the planning run:

Date MRP

ele-

ment

MRP element

data

Rec./

Reqd.

qty

Available

Qty

Produc-

tion ver-

sion

Task 2:

Display the planned orders from the stock/requirements list.

1. In the “Header” view, write down the planned creation dates.

Creation date for first planned order: ___________________________

Creation date for second planned order: ___________________________

Creation date for third planned order: ___________________________

Write down the production version selected: _______________






2. Write down the responsible MRP controller given on the Assignment tab

page.

MRP Controller: ________________

3. Display the material components from the BOM explosion for the planned

order.

Task 3:

1. In collective conversion, convert those planned orders within the area of

responsibility of your MRP controller I## that have a planned opening date

in the current week.

Enter the following for planned order selection:

Planning Plant: 1100

MRP Controller: I##

Creation: Time period of current week

Choose process order type PI01 for conversion.

2. After planned order conversion, display the current stock/requirements list

for material T-FI1##.

Describe the new situation after planned order conversion:

Date MRP

ele-

ment

MRP

element

data

Rec./

Reqd.

qty

Available

Qty

Produc-

tion ver-

sion






Task 4:

In change mode, call the new process order from the stock/requirements list.

1. Get an overview of the process order structure and the data in the Header ,

Operations, and Materials views.

2. Get an overview of the views in the order header.

Write down the order number: __________________________

Pay attention to status management.

3. Get an overview of the data in the following views, in particular:

Header - General Data

Pay attention to the quantity and date fields

Header - Assignment

Write down the production scheduler: ________________________

Header - Goods Receipt

Note the option to define a batch number for product T-FI1##.

Header - Master Data

Write down the production version: ________________________

You can navigate in this view to the master recipe and to the BOM.

4. Display the operation overview of the order.

Compare the entries with the corresponding data in the master recipe.

Get an overview of the detail views of a phase.

5. Display the material list for your order.


Note that the Batch field is ready for input for components that are to be

managed in batches.

Get an overview of the detailed data of a material component.





Solution 4: Integration with Planning;

Process Order Creation with PlannedOrders

Task 1:

1. Display the current stock/requirements list for your material T-FI1## in

plant 1100.

Describe the current situation:

Date MRPElement MRP ElementData Rec./ Reqd.qty AvailableQty

a) Logistic→ Production process → MRP → evaluations→ Stock /

Requirements List

Material: T-FI1##

Plant: 1100

Enter

Date MRP

element

MRP element

data

Rec./

Reqd.

qty

Available

qty

Today Stock 0

Req. Date IndReq LSF 5000 - 5000 -



The quantity available today in the plant stock is 0 kg.

There are 3 future planned independent requirements that are not yet

covered by material requirements planning.






2. Perform multilevel single-item planning for your material T-FI1## in plant

1100.

a) Logistic→ Production process→ MRP → Planning → Single item,

multi-level

Material: T-FI1##

Plant: 1100

Choose Enter . The system displays a warning prompting you to check

the input parameters. To start the planning run, choose Enter again.

3. After the planning run, display the current stock/requirements list.

Describe the new situation after the planning run:

Date MRP

ele-

ment

MRP element

data

Rec./

Reqd.

qty

Available

Qty

Produc-

tion ver-

sion






Date MRP

ele-

ment

MRP element

data

Rec./

Reqd.

qty

Available

Qty

Produc-

tion ver-

sion

a) Logistic→ Production process→ MRP → evaluations→ Stock /

Requirements List

Material: T-FI1##

Plant: 1100

Enter

Date MRP

element

MRP

element

data

Rec./

Reqd.

qty

Available

qty

Pro-

duction

version

Today Stock 0

Planned

receipt

PLOrd Num-

ber/Stck

5000 5000 0001

Req. Date IndReq LSF 5000 - 0

Planned

receipt

PLOrd Num-

ber/Stck

5000 5000 0001


Planned

receipt

PLOrd Num-

ber/Stck

5000 5000 0001


As a result of the planning run, the system created planned orders to

cover the planned independent requirements.

Task 2:

Display the planned orders from the stock/requirements list.

1. In the “Header” view, write down the planned creation dates.

Creation date for first planned order: ___________________________

Creation date for second planned order: ___________________________






Creation date for third planned order: ___________________________

Write down the production version selected: _______________

a) To display a planned order:

Double-click the MRP element PLOrd., choose the Display Element

(F7) icon

Header tab page:

Opening: Planned opening date

The opening date is used as a selection criterion for the collective

conversion of planned orders into process orders.

Production Version: 0001

2. Write down the responsible MRP controller given on the Assignment tab

page.

MRP Controller: ________________

Answer: Assignment tab page:

MRP Controller: I##

3. Display the material components from the BOM explosion for the planned

order.

a) To display the components:

Choose Components (F5)

Task 3:

1. In collective conversion, convert those planned orders within the area of

responsibility of your MRP controller I## that have a planned opening date

in the current week.

Enter the following for planned order selection:


MRP Controller: I##







Choose process order type PI01 for conversion.

a) Logistic→ Production process→ Process order → Process order →

Create→With Planned Orders


MRP Controller: I##


Process Order Type: PI01

Choose the Execute Selections (F8) icon. The Collective Conversion of Planned Orders: List screen appears.

According to the selection criteria, the system only displays the planned

order for material T-FI1## that is chronologically first.

Select the corresponding line in the list and choose Convert .

After the conversion, the system displays the number of the created

process order in the lower message bar.

To exit collective conversion, choose Back (F3).

2. After planned order conversion, display the current stock/requirements list

for material T-FI1##.

Describe the new situation after planned order conversion:

Date MRP

ele-

ment

MRP

element

data

Rec./

Reqd.

qty

Available

Qty

Produc-

tion ver-

sion






Date MRP

ele-

ment

MRP

element

data

Rec./

Reqd.

qty

Available

Qty

Produc-

tion ver-

sion

a) Logistic→ Production process → Process Order → Environment

→ Stock/reqmts list

Material: T-FI1##

Plant: 1100

Enter

Date MRP

ele-

ment

MRP

element

data

Rec./

Reqd.

qty

Available

qty

Pro-

duction

version

Today Stock 0

Planned

receipt

PR-ORD Num-

ber/Stck

5000 5000 0001


Planned

receipt

PLOrd Num-

ber/Stck

5000 5000 0001


Planned

receipt

PLOrd Num-

ber/Stck

5000 5000 0001


The planned order has been converted into a process order.






Task 4:

In change mode, call the new process order from the stock/requirements list.

1. Get an overview of the process order structure and the data in the Header ,

Operations, and Materials views.

a) To call the process order in change mode:

Double-click MRP element PR-ORD

Choose the Change Element (F8) icon

Choose the appropriate buttons to navigate.

2. Get an overview of the views in the order header.

Write down the order number: __________________________

Pay attention to status management.

a) The order number varies.

3. Get an overview of the data in the following views, in particular:

Header - General Data

Pay attention to the quantity and date fields

Header - Assignment

Write down the production scheduler: ________________________


Note the option to define a batch number for product T-FI1##.


Write down the production version: ________________________

You can navigate in this view to the master recipe and to the BOM.

a) Header - Assignment

Production Scheduler: I##


The Batch field is ready for input.


Production Version: 0001

4. Display the operation overview of the order.







Get an overview of the detail views of a phase.

a) Choose Operations.

Double-click the phase number to display the detail view of a phase.

5. Display the material list for your order.


Note that the Batch field is ready for input for components that are to be

managed in batches.

Get an overview of the detailed data of a material component.

a) Choose Materials.

The Batch field is ready for input for components that are to be

managed in batches.

Double-click the item number to display the detailed data of a material

component.





Exercise 5: Process Order Release;

Processing an Order with a PI SheetExercise Objectives


• Release a process order

• Generate a control recipe for a process order

• Edit a PI sheet

• Send process messages

• Check the results of order processing

Business Example

You release your order for material T-FI1## and generate the control recipe for the

order at the same time.

You select your control recipe in the control recipe monitor.

You maintain the PI sheet.

You select and send the process messages created while you were editing the PI

sheet in the message monitor.

After sending the messages, you check the current data in the process order, the

stock/requirements list, and in inventory management.

Task 1:

1. Release your process order for the production of the material T-FI1## in

collective processing. At the same time generate the control recipe for the

order.

Enter the following criteria for order selection:

Order Type: PI01

Plant: 1100


Do not enter any selection criteria for the release date (or set the selection

period so that your order’s scheduled release date corresponds to the

selection criteria).






2. Display your process order now that it has been released and the control

recipe has been generated.

Find out which activities were performed when the order was released.

Look at the order status. Note, in particular, the statuses REL, CRCR, BCRQ,

BASC , and MACM .


Note that a batch number was created automatically for the product T-FI1##.

Material List

Note that batch determination was automatically executed for material

components managed in batches.

3. Select your control recipe in the control recipe monitor.

Send the control recipe and update the list display.

Hint: In the production plant, control recipes are sent automatically

in a job.

4. Your control recipe destination is of the type PI sheet .

Select and edit the PI sheet created when the control recipe was sent.

Edit the PI sheet as specified in the solutions for this exercise.

5. Select the process messages created by maintaining the PI sheet in themessage monitor.

Send the process messages.

Hint: In the production plant, process messages are sent

automatically in a job.

Task 2:

Display the process order for material T-FI1##:

1. On the Header Data screen, check the data on the quantity produced and on

the confirmed dates.

Note the order statuses DLV and CNF .

2. Go to the Operation Overview and display the confirmed dates and calculated

activities for some of the phases.

3. Go to the Material List and display the quantities that have been issued

for some of the materials.






Task 3:

1. Display the current stock/requirements list for material T-FI1##.

Describe the new situation:

Date MRP

element

MRP

element

data

Rec./

Reqd.qty

Avail-

able qty

Production

version

2. Display the stock overview for material T-FI1##.





Solution 5: Process Order Release;

Processing an Order with a PI SheetTask 1:

1. Release your process order for the production of the material T-FI1## in

collective processing. At the same time generate the control recipe for the

order.

Enter the following criteria for order selection:

Order Type: PI01

Plant: 1100


Do not enter any selection criteria for the release date (or set the selection

period so that your order’s scheduled release date corresponds to the

selection criteria).

a) Logistic→ Production process → Process order → Process order

→ Release

Order Type: PI01

Plant: 1100


Delete the entries in the fields for date selection.

Choose the Execute Selections (F8) icon.

The Release Process Order: List screen appears.

According to the selection criteria, the system only displays the process

order created above for material T-FI1##.

Choose Control Recipe (Release with Control Recipe Generation).

After you have released the order and created the control recipe, choose

Back (F3) to exit the list.

2. Display your process order now that it has been released and the control

recipe has been generated.

Find out which activities were performed when the order was released.






Look at the order status. Note, in particular, the statuses REL, CRCR, BCRQ,

BASC , and MACM .


Note that a batch number was created automatically for the product T-FI1##.

Material List

Note that batch determination was automatically executed for material

components managed in batches.

a) Logistic→ Production process→ Process order → Process order

→ Display

Process Order: Order number

Enter

The following activities were performed:

Order release: See status REL Order Released .

Control recipe generation: See status CRCR Control Recipe

Created .

Creation of batch master record for product T-FI1##:

See status BASC Batch Assignment Complete.

See the automatically created batch number in the header data

screen Goods receipt

Material availability check:

See status MACM Material Committed .

Batch determination for material components subject to a batch

management requirement:

See automatically assigned batch in the material list.

3. Select your control recipe in the control recipe monitor.






Send the control recipe and update the list display.

Hint: In the production plant, control recipes are sent automatically

in a job.

a) Logistic→ Production process→ Process Management → Control

recipe→ Control Recipe Monitor

Plant: 1100

Process Order: Order Number

or

Plant: 1100

Destination Address: GRP. ## ICE

After pressing Enter , the Control Recipe Monitor: Overview screen

appears.

The control recipe status is Created .

Select your control recipe and choose Send . After sending, choose

the Refresh icon to update the list. The control recipe must now have

the status Sent .

4. Your control recipe destination is of the type PI sheet .

Select and edit the PI sheet created when the control recipe was sent.






Edit the PI sheet as specified in the solutions for this exercise.

a) Process Management → PI sheet → Find

or

Process Management → PI sheet →Worklist - maintain

Choose appropriate selection criteria, for example:

Plant: 1100

Operating Group: GRP. ## ICE

Execute (F8)

Maintain PI Sheet (F5)Enter your signature to report the start of PI sheet maintenance. Sign

with your SAP ECC user name and confirm the signature with your

SAP ECC password.

The material component to be entered for the first phase 1010 can be

found in the list of ingredients.

The quantities and batch numbers from the process order are set as the

default values. The line operator can change these values.

Enter your signature to report the end of phase 1010.

Edit the other phases of the PI sheet in the same manner.

In the last phase at the end of the PI sheet, report the number of ice

cream packages produced. Enter your signature to report the end of

the PI sheet. Save your entries.

5. Select the process messages created by maintaining the PI sheet in the

message monitor.






Send the process messages.

Hint: In the production plant, process messages are sent

automatically in a job.

a) Process Management → Message→ Message Monitor

Plant: 1100

Process Order: Order Number

After pressing Enter , the Process Message Monitor: Messages screen

appears.

Select all process messages and choose Send to send them. After

sending, choose Refresh to update the list. The messages must now

all have the status Sent .

Task 2:

Display the process order for material T-FI1##:

1. On the Header Data screen, check the data on the quantity produced and on

the confirmed dates.

Note the order statuses DLV and CNF .

a) Process order → Display

Process Order: Order number

After pressing Enter , the order header appears. The produced quantity

and confirmed order dates are displayed here in the General Data.

After the PI sheet has been completely edited, the statuses DLV

Delivered and CNF Confirmed are set.

2. Go to the Operation Overview and display the confirmed dates and calculated

activities for some of the phases.

a) Choose Operations. Select one or more phases and double-click a

phase number.

To display the confirmed dates, choose the Dates tab page.

To display the activities calculated from the dates, choose the

Qty/Activities tab page.

You can choose Previous Operation and Next Operation to go to the

dates of the individual phases.






3. Go to the Material List and display the quantities that have been issued

for some of the materials.

a) Choose Materials.

Select one or more material components (and the individual batch

records for the materials to be handled in batches) and double-click an

item number.

The General Data screen contains the component quantities withdrawn.

Task 3:

1. Display the current stock/requirements list for material T-FI1##.

Describe the new situation:

Date MRP

element

MRP

element

data

Rec./

Reqd.qty

Avail-

able qty

Production

version






Date MRP

element

MRP

element

data

Rec./

Reqd.qty

Avail-

able qty

Production

version

a) Logistic→ Production process→ Process order → Environment →

Stock/requirements list

Material: T-FI1##

Plant: 1100

Enter

Date MRP

ele-

ment

MRP

element

data

Rec./

Reqd.

qty

Avail-

able

qty

Production

version

To-

day

STOCK 5000

Req.

Date

IndReq LSF 5000 - 0

Plannedre-

ceipt

PLOrd Num-ber /Stck

5000 5000 0001

Req.

Date

IndReq LSF 5000 - 0

Planned

re-

ceipt

PLOrd Num-

ber /Stck

5000 5000 0001

Req.

Date

IndReq LSF 5000 - 0

After goods receipt, the process order no longer appears in the list. The

plant stock was raised by the delivered quantity.






2. Display the stock overview for material T-FI1##.

a) Logistic→ Materials Management → Inventory Management →

Environment → Inventory→ Stock overview.

Material: T-FI1##

Plant: 1100

Program→ Execute

The batch you produced is in storage location 0001 Delivery Warehouse

in plant 1100.

Due to a corresponding setting in the material master, the batch is first

classified as stock in quality inspection.





Lesson Summary

You should now be able to:• Describe the individual steps in process order management


a process order


pharmaceutical area




SCM300 Unit Summary

Unit Summary





a process order


pharmaceutical area




Unit Summary SCM300





Test Your Knowledge

1. Name some application areas for process orders.

2. Name some basic functions of the process order.

3. Name the master data for the process order.

4. Name the main steps in the processing of a process order.

5. Name some of the functions for mapping a GMP-compliant production.





Answers

1. Name some application areas for process orders.

Answer:

• Production by customer request

• Make-to-order production

• Batch production

• Production campaigns

• Mass production

2. Name some basic functions of the process order.

Answer:

• Status management

• Production by production versions

• Scheduling

• Calculating capacity requirements

• Costing

• Batch number assignment

• Manufacture of co-products

• Availability checks

• Material quantity calculation

• Active ingredient management

• Batch determination

• Resource network

• Resource selection

• Printing shop floor papers

3. Name the master data for the process order.

Answer:

• Material master records and batch master records (integration with

batch management)

• Resources

• Production versions with master recipes and material BOMs





4. Name the main steps in the processing of a process order.

Answer:

1. Order Request

2. Process order creation

3. Availability check

4. Resource/line scheduling

5. Resource selection

6. Batch determination

7. Material quantity calculation

8. Process order release

9. Order print10. Send control recipes

11. Edit PI sheet

12. Process messages to various destinations

13. Material staging/material withdrawals

14. Order confirmations

15. In-process quality checks

16. Material receipts


18. Process order settlement

19. Batch record

20. Archiving/deletion

5. Name some of the functions for mapping a GMP-compliant production.

Answer:

• Material reconciliation

• Digital signature

• Material identification

• Approved recipe

• Approved process order

• Batch record

• Approved inspection plan

• Quality management

• Batch management




Unit 4Repetitive Manufacturing

Unit Overview

In this unit, you learn about repetitive manufacturing.

Unit Objectives


• Explain the characteristics of period-based repetitive manufacturing

• Describe the main steps in repetitive manufacturing

• Evaluate the main functions within repetitive manufacturing

Unit Contents

Lesson: Characteristics of Repetitive Manufacturing ......................152

Exercise 6: Master Data - Optional . .. .. ... .. ... ... .. ... .. ... ... .. ... ... .159Lesson: Functions and Process Steps in Repetitive Manufacturing . . . . .169

Exercise 7: Integration with Production Planning and MRP in the ECC

System....................................................................... 183Exercise 8: Line Loading Planning in the ECC System ............... 191

Exercise 9: Material Staging and Backflush ............................ 197




Unit 4: Repetitive Manufacturing SCM300

Lesson: Characteristics of Repetitive Manufacturing

Lesson Overview


• Application areas and characteristics of repetitive manufacturing

• Functional flow

Lesson Objectives



Business Example

Your company produces products in large numbers. The production is quantity

based and period based. You belong to the team that implements repetitive

manufacturing within the SAP implementation project. For this purpose, you must

implement the entire process chain for in-house production, which allows your

company to organize, control, and execute production based on SAP functions.

Application Areas

Figure 72: Application Areas

Repetitive manufacturing is mainly used for production scenarios with high

product stability, high repetition rates, and low product complexitity.




SCM300 Lesson: Characteristics of Repetitive Manufacturing

Characteristics

Figure 73: Period-Based Repetitive Manufacturing: Characteristics (1)


Apart from the basic functions, repetitive manufacturing provides several other

functions (see next section).

Course SCM320 provides detailed information about a selection of the most

important of these functions.






An interface to Microsoft Office is provided for printing shop papers and quantity

papers (not shop floor papers): You can use Microsoft Word to print operational

method sheets, and Microsoft Excel to print dispatch lists.

In addition to make-to-stock production, sales order-based repetitive

manufacturing is also supported. This enables you to handle configurable

materials, for example.

To determine the work in process or to post component withdrawals more

promptly, you can use a reporting point procedure (only make-to-stock

production).

In terms of configurable materials, action control enables actions to be triggered

automatically (for example, printing the component list).

The modelling of takts, along with the sequence planning it involves, is

represented by a separate function: “takt-based flow manufacturing”.







The complex process chain from independent requirements to the goods issue of

the finished product is modeled in a lean version in repetitive manufacturing.

Typical features are, for example, the use of planned orders for production

(planned orders are not converted to production orders. They only obtain thenew order type of the “run schedule quantity” (RSQ) when the production

version is assigned) as well as the confirmation of the finished product with

simultaneous backflushing of the components used.





Logistical Master Data for Repetitive Manufacturing

Figure 77: Master Data for Repetitive Manufacturing

To allow the material to be used in repetitive manufacturing, you set the Repetitive

Mfg indicator in the material master (in the MRP view). This means that

you can use all the various production versions of this material for repetitive

manufacturing (that is, you can set the Repetitive Mfg allowed for version indicator in the production version).

The BOM defines the planned material consumption for the components.

When you backflush components in repetitive manufacturing, you can define the

issue storage location from which components are to be backflushed in the

status/long text of the BOM item ( Production storage location field).

Production lines are usually created as simple work centers in the ECC

system. In the work center, you define the availability of the production line.

The production line created as the work center is entered in the Production line

field in the production version. This same work center is specified in the single

operation of the routing. Production lines that have more than one work center can be represented in a line hierarchy.

In repetitive manufacturing, the routing defines the production rate (quantity per

time unit) used to produce materials on production lines. The production quantities

and their capacity requirements are scheduled and calculated respectively

according to the production rate. The routing therefore provides the basis for lead

time scheduling. In repetitive manufacturing, work centers are not normally used

to describe the actual operations to be performed. For this reason, routings in

repetitive manufacturing often have just one operation. The total production rate





of the line is specified in this operation. It defines how many materials per time

unit can be produced on this production line. In the single operation, you enter

the production line as the work center.

Two different routings are available in the ECC system: standard routings

and rate routings. Rate routings are specially designed for the needs of

repetitive manufacturers and can be used instead of standard routings for

organizational purposes. You can, however, also use standard routings for

repetitive manufacturing.

Demo Scenario: PC Production in the Dresden Plant

Figure 78: Demo Scenario: PC Production in the Dresden Plant

Demonstration example for repetitive manufacturing: PCs and PC assemblies

are produced in plant 1200.

The most important material numbers used for the demo and exercises in the

training system are:

T-F10## PC Maxitec R-375 (final assembly in make-to-order production)

T-B10## Motherboard 375 (assembly production to stock)

T-B20## Cable with grounded plug

T-B30## Keyboard

T-B40## TFT screen

T-B50## Disk drive





T-B60## Hard disk

T-B70## Casing

T-B80## CD-ROM

T-B90## Modem

T-T6## Main memory (for pull list: direct transfer posting)

T-TE## Processor M-375

Production lines:

T-L1## Production line 1 (for production of T-F10##)

T-L3## Production line 3 (for production of T-B10##)





Exercise 6: Master Data - Optional

Exercise Objectives


• Name the essential master data required for repetitive manufacturing

• Explain what is special about the master data for repetitive manufacturing

Business Example

You work for a company that uses repetitive manufacturing to produce PCs on

two production lines.

You are a member of the SAP SCM project team responsible for implementing thefunctions of Repetitive Manufacturing .

Therefore you first try to get a general overview of the basic master data for

repetitive manufacturing.

In particular, you look at the master data for the PC T-F10## (material master,

BOM, routing, and work center as well as the product cost collector from

Controlling).

Task 1:

First, get an overview of the menu structure for the repetitive manufacturing

functions.

1. Which menu path takes you to the Repetitive Manufacturing menu?

2. Which transaction takes you to Customizing for Repetitive Manufacturing?

________________________________________________________________

3. List the Logistics master data used for repetitive manufacturing.

________________________________________________________________

________________________________________________________________

________________________________________________________________

________________________________________________________________






Task 2:

In the logistics folder in the SAP ECC menu, navigate to the Material Master

of PC T-F10## (## represents your group number) and go to the MRP 4, plant

1200 view. Use the change mode (transaction MM02).

1. Name three material master settings that are specific to repetitive

manufacturing.

________________________________________________________________

________________________________________________________________

________________________________________________________________

________________________________________________________________

2. Display production version 0001. Check the consistency of the combinationof BOM and routing by choosing Check .

3. Which production line is entered in production version 0001?

________________________________________________________________

4. Write down the task list group of the rate routing entered.

________________________________________________________________

Task 3:

1. Check the material BOM for material T-F10## in the Logistics master data.

How many assemblies are on the hierarchy level directly below the finished

product?

________________________________________________________________

Task 4:

Display the rate routing for material F10##, plant 1200 in the Logistics master

data.

1. How many different routings are displayed in the overview? ________________________________________________________________






2. Select the first routing with group counter 1 and choose Operations.

What is special about the routing?

3. Name the work center involved and the production rate planned.

4. Exit the operation overview and go back to the rate routing overview.

Which work center belongs to group counter 2?

5. Write down the task list group number and compare it with task 2.4.

Hint: The task list group number is displayed in the header data

of the rate routing.

________________________________________________________________

6. Does production version 0001 enable repetitive manufacturing with the

two routings? Give reasons.

________________________________________________________________

________________________________________________________________

________________________________________________________________






Task 5:

In the Repetitive Manufacturing menu, check in the master data whether a product

cost collector already exists for material T-F10## in plant 1200.

Hint: Note: To do this, you must activate the field for the material in the

display transaction.

1. How many product cost collectors exist and how are they assigned?

________________________________________________________________





Solution 6: Master Data - Optional

Task 1:

First, get an overview of the menu structure for the repetitive manufacturing

functions.

1. Which menu path takes you to the Repetitive Manufacturing menu?

Answer: The Repetitive Manufacturing menu is in the Production folder.

SAP Menu→ Logistic→ Production→ Repetitive Manufacturing

The main master data is also available in the Production folder:

SAP Menu→ Logistic→ Production→ Master Data

2. Which transaction takes you to Customizing for Repetitive Manufacturing? ________________________________________________________________

a) SAP Menu→ Tools→ Customizing → IMG → Edit project

Transaction: SPRO

SAP Reference IMG→ Production→ Repetitive Manufacturing

You can branch directly to Customizing for Repetitive Manufacturing

using transaction OPP3.

3. List the Logistics master data used for repetitive manufacturing.

________________________________________________________________ ________________________________________________________________

________________________________________________________________

________________________________________________________________

a) Logistics master data:

• Material master

• BOM

• Routing

• Work center (line)

Task 2:

In the logistics folder in the SAP ECC menu, navigate to the Material Master

of PC T-F10## (## represents your group number) and go to the MRP 4, plant

1200 view. Use the change mode (transaction MM02).

1. Name three material master settings that are specific to repetitive

manufacturing.






________________________________________________________________

________________________________________________________________

________________________________________________________________

________________________________________________________________

a) SAP Menu→ Logistic→ Production→ Master data → Material

Master → Material → Change→ Immediately

Material T-F10##

View MRP 4

Plant 1200

The three settings are:

1. Repetitive mfg indicator

2. Repetitive manufacturing profile

3. Production version

2. Display production version 0001. Check the consistency of the combination

of BOM and routing by choosing Check .

a) On the detail view for the production version, choose “Check” in the

top right-hand corner. The consistency check has the following results:

BOM and routing exist. There are no error messages.

Exit the screen by choosing “Cancel”.

3. Which production line is entered in production version 0001?

________________________________________________________________

a) From the detail screen, you can see that production version 0001

contains production line T-L1##.

4. Write down the task list group of the rate routing entered.

________________________________________________________________

a) The number varies. On the detail screen of the production version, theTask list group is also displayed in the Rate-based planning line

under Planning data.

Task 3:

1. Check the material BOM for material T-F10## in the Logistics master data.






How many assemblies are on the hierarchy level directly below the finished

product?

________________________________________________________________

a) SAP Menu→ Logistic→ Production→ Master data→ Bills of

material → BOM → Material BOM → Display

Material T-F10##

Plant 1200

Usage 1

The Asm assembly indicator is set for 3 BOM items.

Task 4:

Display the rate routing for material F10##, plant 1200 in the Logistics master

data.

1. How many different routings are displayed in the overview?

________________________________________________________________

a) SAP Menu→ Logistic→ Production→ Master data→ Routings→

Routings→ Rate routings→ Display

Material T-F10##Plant 1200

Key date Today

→ Routings or Return

Two routings exist (two group counters).

2. Select the first routing with group counter 1 and choose Operations.

What is special about the routing?

Answer: In the rate routing overview, select the line with group counter and

choose Operations.

The special feature here is that there is only one operation.

3. Name the work center involved and the production rate planned.

Answer: The work center contains the (entire) T-L1## line and the

production rate (30 pieces per hour).






4. Exit the operation overview and go back to the rate routing overview.

Which work center belongs to group counter 2?

Answer: Choose Goto→ Header overview.

In the routing overview, select the line with group counter and choose

Operations.

The work center used in the second routing is T-L2## . (( Note: Nothing will

be produced at this work center in the following exercises.)

5. Write down the task list group number and compare it with task 2.4.

Hint: The task list group number is displayed in the header data

of the rate routing.

________________________________________________________________

a) Select a line in the routing overview and choose “Header”.

The task list group number is the same as the one in exercise 2.4.

6. Does production version 0001 enable repetitive manufacturing with the

two routings? Give reasons.

________________________________________________________________

________________________________________________________________

________________________________________________________________ a) Production version 0001 only allows production according to the

routing with group counter 1 since the group counter is taken over to

the production version for a more detailed specification of the routing.

Task 5:

In the Repetitive Manufacturing menu, check in the master data whether a product

cost collector already exists for material T-F10## in plant 1200.

Hint: Note: To do this, you must activate the field for the material in the

display transaction.

1. How many product cost collectors exist and how are they assigned?






________________________________________________________________

a) SAP Menu→ Logistic→ Production→ Repetitive manufacturing

→ Master data → Product Cost Collector → Process Product Cost

Collector

Material T-F10##

Plant 1200

Select material T-F10## in the left part of the screen.

Two product cost collectors already exist. They are assigned to the

material by means of the production version (one product cost collector

for each production version).





Lesson Summary

You should now be able to:• Explain the characteristics of period-based repetitive manufacturing




SCM300 Lesson: Functions and Process Steps in Repetitive Manufacturing

Lesson: Functions and Process Steps in Repetitive

Manufacturing

Lesson Overview

In this lesson, you will familiarize yourself with the essential functions and

standard process steps in repetitive manufacturing.

Lesson Objectives




Business Example

Important stages of repetitive manufacturing include the dispatching of quantities

on the production lines, material staging of the components, backflush of

quantities produced and settlement of the costs collector. These functions are

integrated with other areas in your company, such as controlling and warehouse

management. Therefore, you must consider the many integration relationships

when implementing repetitive manufacturing.

Repetitive Manufacturing: Process Flow

Figure 79: Repetitive Manufacturing: Process Flow





Despite a streamlined implementation of basic functions, a range of activities is

possible in repetitive manufacturing.

Important aspects are planning of line loading and (usually simultaneous)

capacity monitoring.

You can, for example, use the planning table (multi-level access) to check the

availability of assemblies for the finished product.

The worker gets the information he or she needs from the operational method

sheet (a description of the operation is possible if required) and from the

production list (materials, quantities, and dates).

Material staging is performed using stock transfers or KANBAN provision to

the line.

During production, a reporting point backflush can be used to determine thework in progress.

After production processing, the finished product is confirmed to stock . This

means both the goods receipt and the component backflush are posted.

A product cost collector looks after cost accounting.

Planning in Repetitive Manufacturing

Figure 80: Planning in Repetitive Manufacturing





The mySAP SCM solution offers two general approaches to integrating planning

and production:

• Planning with the functions belonging to the APO component (contained

in the SCM system)

• Planning with the functions belonging to the ECC component

Production preparation, execution, and control are always performed with

the functions of the ECC component but also in line with the production

type. These functions include costing, material staging, backflushing, goods


The master data and transaction data (planned orders, process orders, purchase

requisitions, purchase orders, stocks, and so on) is usually exchanged between the

two SAP components, ECC and SCM (APO), using the “Core Interface” (CIF).

Specific events (for example, backflushing or goods receipt) trigger the transfer of

data from ECC to SAP SCM-APO and vice versa.

Planned orders can be generated by material requirements planning in ECC

using MRP, or in SCM (APO), with the following applications:

• Supply Network Planning as part of planning in APO (SNP). This

performs cross-plant planning in a long-term planning horizon across

the whole supply and procurement chain. Stock transport requisitions

(distribution), planned orders (in-house production), and purchase

requisitions (external procurement) are generated for each production plant.

• Production Planning and Detailed Scheduling as part of APO planning

(PP/DS). This generates planned orders and purchase requisitions in adefined short-term time period (production horizon) in the production

plant.

A distinguishing feature of repetitive manufacturing is that planned orders

with order type “RSQ” (run schedule quantity) are used for production, which

means that planned orders are not converted. Only their status changes when

they are assigned to the production line.





Basic Planning Strategies for Repetitive Manufacturing

Figure 81: Basic Planning Strategies for Repetitive Manufacturing

Make-to-stock production: You can use repetitive/flow manufacturing for pure

make-to-stock production. This means you produce finished products with

no direct reference to sales orders. The planned independent requirements

from demand management are used as the basis for planning. Depending onyour planning strategy, the planned independent requirements from demand

management may be consumed by sales orders.

The same product is produced repeatedly over a substantial period of time. The

product is not produced in separate lots. Instead, a total quantity is produced in a

certain period at a certain rate. Products pass through production in a relatively

steady flow.

Sales orders are filled from warehouse stock.

Make-to-order production (sales order-based production): You can use

repetitive/flow manufacturing for make-to-order production. This means you

produce products with direct reference to the sales orders. The products are storedin the sales order stock . Sales orders can be processed separately. A planned

order is created with direct reference to the sales order. Production is therefore

controlled using sales orders. The quantities produced cannot be swapped between

the individual sales orders. The produced quantities are stored specifically for the

individual sales order (sales order stock) and not in the make-to-stock inventory.

If you use variant configuration, you can plan and manufacture configurable

materials using make-to-order repetitive manufacturing.

Sales orders are filled from sales order stock.





Prerequisite: You use the strategy group in the material master record to control

whether make-to-stock or make-to-order repetitive manufacturing is to be used.

Line Loading

Figure 82: Planning Line Loading: Overview

Within the two planning systems SAP ECC and SAP SCM (APO), you can useany of the following four options to plan line loading (dispatching planned orders

on the production line):

Alternative selection in ECC: If there is only one valid production version, for

example, if only one line is available, you can set the “Alternative selection”

indicator to 2 in the material master (MRP 4 view). Planned orders are then

automatically assigned to this line. If several lines are available, the system

assigns the first line it finds. Since this reduces your freedom when planning line

loading, we recommend that you only use this option if only one valid production

version or production line is available.

Quota arrangements: If several production lines are available but one is preferred (for example, it should always reach full capacity load), you can use

quota arrangements to distribute the remaining quantity to the alternative lines.

To do this, you maintain the “Quota arr. usage” field in the MRP2 view and

trigger quota maintenance under master data in the MRP menu. In SCM-APO, a

quota arrangement can be mapped using a heuristic. We generally recommend

that you only use quota arrangements for rough-cut planning and that you also

carry out postprocessing, for example, with the ECC planning table or the APO

product planning table.





ECC planning table/APO planning table (in the SCM system): In contrast

to the methods listed above, quantities are essentially dispatched manually on

the available lines when planned orders are assigned or reassigned in the ECC planning table or the APO planning table.

Using APO heuristics (in the SCM system) for repetitive manufacturing: If you

use the APO heuristics for repetitive manufacturing (REM heuristics) in the

SCM system, the three steps of quantity planning, line loading planning, and

capacity planning can be combined and executed automatically. This option is

not available in ECC.

Figure 83: Actions for Manual Planning of Line Loading (Example: ECC)

The planner uses the ECC planning table to process the master production

schedule. He or she can check the production quantities, change them if required,

and create new production quantities (planned orders). He or she can determine

the capacity utilization of the production line as well as the availability situation

of the products. In addition, he or she can display the source of the capacity

requirements (pegged capacity) by double-clicking the capacity requirements.

Since planning in repetitive manufacturing is based on quantities and periods, the

display in the planning table is quantity-based and period-based. You can chooseany planning period (shift, day, week, month, planning calendar period).

In assignment mode, the planner can assign the production quantities (planned

orders) to a production version and thus also to a production line. If this has

already been done in MRP, he or she can also change existing assignments.

Planned orders that are assigned manually to a line are assigned the PE order type

(run schedule quantity) and are usually firmed. With the repetitive manufacturing

profile, the firming behavior can be limited to the planning time fence for each

material or deactivated for all orders.





In addition, you can choose Materials Overview to go to a separate material

overview displaying the exception message and the days' supply situation.

Changes you make in the planning table are not written to the database unless

you save them.

In the SCM system, similar functions are available in the APO product planning

table. This is an enhancement of the ECC planning table with enhanced APO

planning functions and is used as a tool for manual planning in the SCM system.

The figure above shows the basic structure of the ECC planning table. To illustrate

the APO product planning table, the terms “Material” and “Line/Capacity” would

have to be replaced by the terms “Product” and “Resource” in the graphic above.

Material Staging Options

Figure 84: Material Staging Options

The ECC system uses various methods to control material staging.

• Warehouse management with the MM-IM (Inventory Management)component

• Replenishment control with the KANBAN component



The pull list enables processing using transfer postings at storage location level,

supports event-controlled KANBAN, and allows you to integrate Warehouse

Management (WM)





Since pick part processing is order-based, the Warehouse Management

system prefers to use release order parts for non order-based repetitive

manufacturing.

Release order parts are ordered manually. In this case, the required quantity is

calculated from the target quantities of the components of the selected orders

that have been released.

Both pick part processing and crate part processing can be used when the typical

repetitive manufacturing functions (for example, the planning table) are used

for production orders.

Backflush and Goods Receipt

Figure 85: Backflush and Goods Receipt

A BAPI interface can be used for backflushing from PDC systems. A separate

transaction (MFBF) is available for the entering of backflushes manually in

the SAP ECC system.





When the goods receipt for the finished products are posted during backflushing, a

number of different actions are performed by default (these are controlled using

the repetitive manufacturing profile):

• Goods issue posting of the components used (usually by backflushing)

• Statistics update in the Logistics Information System (LIS) or the Business

Information Warehouse (BW)

• Reduction of run schedule quantities/planned orders and the associated

capacity requirements on the production lines

• Posting of production costs incurred (material costs, production activities,

overhead costs) to a product cost collector

• Creation of a data entry document

• Other optional actions (see the "Details" button in the backflushing

transaction) include: Taking account of the setup costs for lotsize-independent material quantities, posting component/assembly scrap,

collective entry for different materials in a line, archiving backflush

documents, goods issue backflush only or activity backflush only

(more/less activity), reporting point backflush, decoupled backflushing

processes, aggregation, and various postprocessing and reversal options.

In addition, sales-order based production enables backflushing with

reference to sales orders.

Reporting Point Backflush

Figure 86: Reporting Point Backflush





Scenario: You have a long production line with a long lead time. However,

the goods issues for the first components at work centers 1-1 and 1-2 are to be

posted on-time and not by backflushing with final confirmation at the end of the production line.

All components used along the production line are usually backflushed during

final confirmation. If there are long lead times, the goods issues for the

components may be posted much later in the system than when they are actually

physically withdrawn.

In this case, it makes sense to use the reporting point backflush to post the

withdrawal of components (and production activities) at an earlier stage after

operations already completed. The above example contains the three reporting

points that are linked to operations 10 (work center 1-1), 20 (work center 1-2), and

40 (work center 1-4).

Prerequisite: In addition to activating the reporting point backflush in the

repetitive manufacturing profile, you must ensure that the relevant work centers

exist and that the operations are available in the routing and defined as reporting

points using the control key.

Depending on the application, you can and should use optional or required

reporting point backflush.

Cost Debit/Credit (Product-Related Cost ObjectControlling)

Figure 87: Cost Debit/Credit (Product-Related Cost Object Controlling)





Settlement in repetitive manufacturing is always period-based and based on the

costs of the product cost collector (product-related cost object controlling).

When backflushes are executed in repetitive manufacturing, the material costs

for the components and the production activities (only if a material cost estimate

with price update has been carried out in advance) are automatically posted to the

product costs collector. The product cost collector is debited with the material

costs and production activities (in the repetitive manufacturing profile, you can

define whether the backflush of the activities is to be made with reference to the

material cost estimate or the version-specific cost estimate).

Moreover, the product cost collector is credited with the valuation price (materials

controlled with standard price) or with the moving average price of the assembly

(materials controlled with the moving average price).

Overheads are not determined with reference to an operation (that is, not for each goods movement or activity confirmation). Instead they are determined

periodically during period-end closing in Controlling by way of an overhead

structure and are posted to the product cost collector. You can use a separate

transaction in the Repetitive Manufacturing menu for this.

Components that differ from those planned may be used in production or the

overhead cost rates may change. This results in variances in the product cost

collector and settlement must be executed. The goal of settlement is to credit the

product cost collector in full. During settlement, the costs not yet credited to the

product cost collector are transferred. For a material that is valuated using the

standard price, the variant costs are posted to the price difference account.





Integration with Controlling

Figure 88: Integration with Controlling

Transaction codes for the above actions:

• Create product cost collector for each material (KKF6N), also for each

production version (KKF6M)

• Material cost estimate [CK11N] with price update (marking and release)[CK24]

• Preliminary cost estimate ([MF30] and [OPP3], REM profile)





Repetitive Manufacturing: Information Systems

Figure 89: Repetitive Manufacturing: Information Systems

Repetitive manufacturing supports different evaluation methods. In addition to

analyses that use CO reports, data is updated into the Logistics Information

System LIS by default (exception: planning data must be updated manually or

in a background job). A connection to the Business Information Warehouse(BW) is also standard.

Evaluations based on orders are not supported because the processing is not

order-related.





Exercise 7: Integration with Production

Planning and MRP in the ECC SystemExercise Objectives


• Create a quantity-based and period-based master production schedule for

repetitive manufacturing

• Interpret the results of a planning run in the stock/requirements list

Business Example

You manufacture PCs in your plant 1200 in Dresden. The production of the PCs iscarried out through planning and final assembly. To do this, the PCs are planned at

the finished product level and produced according to the planning program. Using

this method, sales orders influence requirements and are charged against planning.

First, check whether the master data for materials T-F10## (PC) and T-B10##

(motherboard) is correct and then create planned independent requirements.

Task:

1. Make sure that the strategy group has been set correctly in the ECC material

master for the finished product T-F10## (plant 1200, MRP 3 view): 40 – planning without final assembly:

2. Are the materials T-F10## (the PC) and T-B10## (the motherboard)

permitted for repetitive manufacturing?

_______________________________________________________

Hint: In the material master, check the settings in the MRP 4

view and the release indicator (“REM” allowed) in the relevant

production versions.

3. Now enter planned independent requirements for the finished product.

Menu path:

Logistic→ Production→ Production Planning → Demand Management

→ Planned independent requirement → Create






Data: Values:

Material T-F10##

Plant 1200

Planning Period W

On the next screen, choose the Sched. Lines tab. Create a planned

independent requirement with a requirements date for next week (enter the

calendar week in the format week.year). The planned quantity should be

600 pieces. The quantity with period indicator W is to be distributed over

the individual working days. Therefore, set the indicator to T (day format) in

the Splt column and confirm your entry.

Confirm any warning messages that may be displayed and save your plannedindependent requirements.

4. The Sales department receives a sales order. Assume the role of a Sales

employee and create the following sales order for finished product T-F10##:

Menu path:

Logistic→ Sales and Distribution→ Sales→ Order → Create

Data: Values:

Order Type TA

Sales Organization 1000Distribution Channel 10

Division 00

Sold-to party 1171

PO Number 660##

Requested delivery date In two weeks time – on Tuesday

Material T-F10##

Quantity 100 pieces

Confirm potential information messages and accept the result of the

availability check carried out in the background with “Continue”. Save

the sales order.

5. Plan the PC's BOM structure using an MRP run.

Menu path:






Logistic→ Production→ MRP → Planning → Single-item, multi-level

planning

Use the following settings:

Material T-F10##

Plant 1200

Additional settings 2, 3, 1, 1, 1

Press “Enter” twice to start the run.

Hint: Multi-level planning ensures that dependent requirements are

also generated for lower hierarchy levels in the BOM.

6. Interpret the results using the current stock/requirements list for finished

product T-F10## in plant 1200:

Menu path:

Logistic→ Production→ MRP → evaluations→ Stock / Requirements List

Does a consumption take place?

_______________________________________________________

_______________________________________________________

7. Interpret the results using the current stock/requirements list for assemblyT-B10## in plant 1200:

Menu path:


8. Double-click a planned order to display the detail data.

Why are there no pushbuttons to convert the planned order into a production

order?

_______________________________________________________

_______________________________________________________





Solution 7: Integration with Production

Planning and MRP in the ECC SystemTask:

1. Make sure that the strategy group has been set correctly in the ECC material

master for the finished product T-F10## (plant 1200, MRP 3 view): 40

– planning without final assembly:

a) SAP standard menu→ Logistic→ Production→ Master data →

Material Master → Change→ Immediately

Material T-F10##

Plant 1200

You must enter and save strategy group 40 (for planning and final

assembly).

2. Are the materials T-F10## (the PC) and T-B10## (the motherboard)

permitted for repetitive manufacturing?

_______________________________________________________

Hint: In the material master, check the settings in the MRP 4view and the release indicator (“REM” allowed) in the relevant

production versions.

a) SAP standard menu→ Logistic→ Production→ Master data →

Material Master → Material → Display→ Display current

1. Check whether the Repetitive Manufacturing indicator is set in

the “MRP 4” view. It has been set.

2. Check the existing production versions: Is the repetitive

indicator set? Answer: Yes.

3. Now enter planned independent requirements for the finished product.

Menu path:

Logistic→ Production→ Production Planning → Demand Management

→ Planned independent requirement → Create






Data: Values:

Material T-F10##

Plant 1200

Planning Period W

On the next screen, choose the Sched. Lines tab. Create a planned

independent requirement with a requirements date for next week (enter the

calendar week in the format week.year). The planned quantity should be

600 pieces. The quantity with period indicator W is to be distributed over

the individual working days. Therefore, set the indicator to T (day format) in

the Splt column and confirm your entry.

Confirm any warning messages that may be displayed and save your plannedindependent requirements.

a)

4. The Sales department receives a sales order. Assume the role of a Sales

employee and create the following sales order for finished product T-F10##:

Menu path:

Logistic→ Sales and Distribution→ Sales→ Order → Create

Data: Values:

Order Type TASales Organization 1000

Distribution Channel 10

Division 00

Sold-to party 1171

PO Number 660##

Requested delivery date In two weeks time – on Tuesday

Material T-F10##

Quantity 100 pieces

Confirm potential information messages and accept the result of the

availability check carried out in the background with “Continue”. Save

the sales order.

a)

5. Plan the PC's BOM structure using an MRP run.






Menu path:

Logistic→ Production→ MRP → Planning → Single-item, multi-level

planning

Use the following settings:

Material T-F10##

Plant 1200

Additional settings 2, 3, 1, 1, 1

Press “Enter” twice to start the run.

Hint: Multi-level planning ensures that dependent requirements arealso generated for lower hierarchy levels in the BOM.

a)

6. Interpret the results using the current stock/requirements list for finished

product T-F10## in plant 1200:

Menu path:


Does a consumption take place?

_______________________________________________________

_______________________________________________________

a) SAP standard menu → Logistic→ Production→ MRP →

evaluations→ Stock / Requirements List

Material T-F10##

Plant 1200

Yes, the sales order consumes an IndReq.

7. Interpret the results using the current stock/requirements list for assemblyT-B10## in plant 1200:

Menu path:







a) SAP standard menu→ Logistic→ Production→ MRP →

evaluations→ Stock / Requirements List

Material T-F10##

Plant 1200

From the end products, dependent requirements are created that are

covered by multi-level planning.

8. Double-click a planned order to display the detail data.

Why are there no pushbuttons to convert the planned order into a production

order? _______________________________________________________

_______________________________________________________

a) Materials T-B10## and T-F10## are materials that are only used in

repetitive manufacturing (the Repetitive Manufacturing indicator

is set in the material master). The corresponding planned orders are

used for production and can therefore not be converted into production

orders.





Exercise 8: Line Loading Planning in the

ECC SystemExercise Objectives


• Assign production quantities to production lines, taking capacities into

account. The production quantities either originate in material requirements

planning they are created manually and assigned to the production lines

in the planning table.

Business Example

One production line is available for the final assembly of your T-F10## PC and

one is available for the assembly of the T-B10## motherboard.

The basic dates as to quantities and periods have already been determined in MRP

and production planning in the previous exercise.

As the production planner, you now assign the quantities to the relevant production

line.

Task:

1. Access the ECC planning table for repetitive manufacturing from therepetitive manufacturing planning menu and assign the planned orders to the

production lines, taking into account the available capacities.

Access the planning table, enter plant 1200 and select a production line.

First, enter the final assembly line T-L1##. Then choose Planning table.

Familiarize yourself with the period-based display of quantity and capacity

data in the planning table. Fields that are ready for input are shown in white,

while display fields are grayed-out as usual.

2. Double-click the quantity in the planning table section that is ready for input

to display the detail data for the planned order.

Which order type is assigned (F4 help)?

_______________________________________________________

3. Choose the relevant button (LKW) to activate the assignment mode for the

“unassigned quantities” in the planning table section that is ready for input.

Assign the unassigned quantity to the final assembly line.

4. Double-click the quantity you have just assigned.






_______________________________________________________

Which order type is now assigned (F4 help)?

5. Look at the capacity data. Does the production line reach full capacity

with the planned order in the relevant time interval or is some capacity still

available for other orders in the same period?

_______________________________________________________

6. Save the line loading planning for the finished product and complete exercise

1 to 3 for assembly production (use line T-L3## and plant 1200 to access

the table.

Why does the quantity that was already available at the beginning (plant

stock) reduce the oldest planned order in contrast to the corresponding

requirement quantity?

_______________________________________________________

_______________________________________________________

Save the line loading planning for the assemblies.

Hint: Since there is only one production line for final assembly and

one for assembly production, you could also use alternative selection

(material master, MRP4 view, alternative selection indicator = 2)

to plan line loading and, if required, check the results in the planning

table afterwards.

7. Optional: Create a planned order manually in the planning table. To do

so, access the planning table (line T-L3##, plant 1200) and use the function

keys at the bottom of the planning table (NOT with the scrollbar) to scroll

to the date: “Today + 1 month”. Enter a quantity of 300 pieces on line

T-L3## and press Enter to confirm.

You have manually created a planned order that can be used for production

in this form. Check this in the planned order details. Do not save the order.





Solution 8: Line Loading Planning in the

ECC SystemTask:

1. Access the ECC planning table for repetitive manufacturing from the

repetitive manufacturing planning menu and assign the planned orders to the

production lines, taking into account the available capacities.

Access the planning table, enter plant 1200 and select a production line.

First, enter the final assembly line T-L1##. Then choose Planning table.

Familiarize yourself with the period-based display of quantity and capacity

data in the planning table. Fields that are ready for input are shown in white,

while display fields are grayed-out as usual.

a) SAP standard menu → Logistic→ Production→ Repetitive

Manufacturing → Planning → Planning Table→ Change Mode

To access the planning table, enter:

Plant 1200

Selection Production line T-L1##

Choose “Planning Table”.

2. Double-click the quantity in the planning table section that is ready for input

to display the detail data for the planned order.

Which order type is assigned (F4 help)?

_______________________________________________________

a) Double-click a planned order in the planning table section that is ready

for input (shown in white).

The planned order has order type LA (make-to-stock order).






3. Choose the relevant button (LKW) to activate the assignment mode for the

“unassigned quantities” in the planning table section that is ready for input.

Assign the unassigned quantity to the final assembly line.

a) Activate the assignment mode for the “unassigned” quantities in the

planning table section that is ready for input by selecting the “Not yet

assigned” line in the bottom “Material data” table (to select, click on the

button at the start of the line) and then choosing the pushbutton with

the truck icon. A symbol appears at the start of the line, signifying

that you are in assignment mode for this line.

Read the quantity in the “Not yet assigned” section and enter it in

the field on the production line that belongs to the same period, and

confirm.

Deactivate assignment mode by choosing the relevant pushbutton.

4. Double-click the quantity you have just assigned.

_______________________________________________________

Which order type is now assigned (F4 help)?

a) Double-click a planned order that has been assigned to the production

line in the planning table.

The planned order has the order type PE (run schedule quantity).

5. Look at the capacity data. Does the production line reach full capacity

with the planned order in the relevant time interval or is some capacity still

available for other orders in the same period?

_______________________________________________________

a) By dispatching a planned order on production line T-L1##, the line

only reaches a comparatively low capacity load (see the planning table:

Capacity data in the row for production line T-L1##).

This means that you could theoretically dispatch additional quantities

for the same period.

Hint: The capacity data is not available on the same day as the

production quantities since the quantities are determined to the

day according to availability, while the capacity load of the

production line is determined to the hour and minute according

to the production date.

You can change the display from within the planning table by

choosing View→ Reference Dates→ Production Dates.






6. Save the line loading planning for the finished product and complete exercise

1 to 3 for assembly production (use line T-L3## and plant 1200 to access

the table.

Why does the quantity that was already available at the beginning (plant

stock) reduce the oldest planned order in contrast to the corresponding

requirement quantity?

_______________________________________________________

_______________________________________________________

Save the line loading planning for the assemblies.

Hint: Since there is only one production line for final assembly and

one for assembly production, you could also use alternative selection(material master, MRP4 view, alternative selection indicator = 2)

to plan line loading and, if required, check the results in the planning

table afterwards.

a) In make-to-stock production, plant stock is included in the net

requirements calculation.

Save the line loading planning for finished product T-F10##.

SAP standard menu→ Logistic→ Production→ Repetitive



Plant 1200


Choose “Planning Table”.

Switch to assignment mode for the “unassigned” quantities in the

planning table section that is ready for input by selecting the “Not yet

assigned” line and then choosing the pushbutton with the truck icon.

Read the quantity in the “Not yet assigned” section, enter it in the fieldon the production line that belongs to the same period, and confirm.

Deactivate assignment mode and save your changes.

The T-B10## assembly (which does not belong to any sales order) is in

stock, which means that the existing stock can be used for production

planning.






7. Optional: Create a planned order manually in the planning table. To do

so, access the planning table (line T-L3##, plant 1200) and use the function

keys at the bottom of the planning table (NOT with the scrollbar) to scrollto the date: “Today + 1 month”. Enter a quantity of 300 pieces on line

T-L3## and press Enter to confirm.

You have manually created a planned order that can be used for production

in this form. Check this in the planned order details. Do not save the order.

a)





Exercise 9: Material Staging and Backflush

Exercise Objectives


• Use the pull list to stage components on your production line

• Carry out quantity-based and period-based backflushing in repetitive

manufacturing

Business Example

For assembly production of motherboard T-B10##, you want to check for missing

components in the production storage location PL03 and use stock transfer

measures to stage missing components for a certain production period.

After a production section has been completed, the quantity produced is

backflushed in the system.

Both tasks are within the supervisor’s or production scheduler’s area of

responsibility. You will assume these roles in the following exercise.

Task 1:

You will use the pull list to execute the stock transfer from storage to the

production line. Execute component staging at assembly production line T-L3##.

1. Access the pull list from the Repetitive Manufacturing menu. Stagingis performed for line T-L3## in plant 1200 for all requirements that are

received until Tuesday of the week after next. In this example, material

staging is performed at storage location level (note that the pull list also

supports additional staging types: using the Warehouse Management System

or event-driven KANBAN) by stock transfer from the central warehouse

0001 to the production storage location PL03. Some steps in the pull list can

be carried out automatically. Make the following “global settings”.

Dialog Control tab:

Field name Value

Create replenishment proposals Automatic

Batch/stock determination Automatic

Stage replenishment elements In dialog

Post replenishment elements In dialog

Print replenishment elements In dialog






Execute the report and note the status bar.

2. Go to the pull list. Interpret the results of the automatic steps.

For which materials are there shortfall quantities until Tuesday of the week

after next due to the planned requirements? How large are these quantities?

3. At which storage location are there shortfall quantities?

4. At which storage location has the system found a replenishment quantity?

5. Can the complete shortfall quantity be covered from here?

6. You accept the system proposal. Choose “Stage” to trigger material staging

for the relevant components from warehouse 0001 to production storage

location PL03.7.

Caution: Material staging (using direct stock transfer in this case)

is not carried out until you save the pull list. If you need a printout

of the list for the physical stock transfer, we recommend printing it

before you save (Pull list – Print).

Save the list.






8. Check the stock transfer posting in the message log for the pull list (in a

separate transaction).

Task 2:

After completion of a production unit (predefined in terms of both time and

quantity) and in which you produced 90 motherboards on line T-L3##, you need

to backflush the quantity produced in the system.

1. First, open a second session of the planning table for repetitive manufacturing

(which you access by selecting production line T-L3##, plant 1200).

2. In the first session, backflush 90 pieces of the motherboard material

T-B10## produced on line T-L3## in plant 1200. To do so, enter the data in

the backflush transaction, which you can access from the Backflush menu

for repetitive manufacturing. Then choose “Post with correction”.

3. Look at the next screen and explain which components of assembly T-B10##

were backflushed on the line but do not exit this display:

_________________________________________________________

_________________________________________________________

_________________________________________________________

4. Due to a technical defect in a machine, you needed 3.5 hours to produce 90

pieces instead of 3 hours as specified in the production rate in the routing (30

pieces per hour). To correct this, choose “Actual activities”. On the next

screen, select the only line proposed and confirm.

In the next window, select the “ProdTime” field under “Activities” and

overwrite the planned value under “Backflush quantity” with the actual

value (3.5 hours).

Press Enter to confirm and then choose Save.

5. Go to the second session (planning table) and look at the quantities on the

line while pressing F5 (refresh). How have the planned quantities changed?





Solution 9: Material Staging and Backflush

Task 1:

You will use the pull list to execute the stock transfer from storage to the

production line. Execute component staging at assembly production line T-L3##.

1. Access the pull list from the Repetitive Manufacturing menu. Staging

is performed for line T-L3## in plant 1200 for all requirements that are

received until Tuesday of the week after next. In this example, material

staging is performed at storage location level (note that the pull list also

supports additional staging types: using the Warehouse Management System

or event-driven KANBAN) by stock transfer from the central warehouse

0001 to the production storage location PL03. Some steps in the pull list can

be carried out automatically. Make the following “global settings”.

Dialog Control tab:

Field name Value











Execute the report and note the status bar.


Manufacturing → Material staging →→ Pull List – Trigger

Replenishment

Staging type Storage location level

Plant 1200

Selection period Tuesday of the week after next

On the “Planned orders” tab, select:

Production line T-L3##

Choose “Global settings”. On the “Dialog control” tab page, select:

Field name Value






Confirm your entries and execute the report.

2. Go to the pull list. Interpret the results of the automatic steps.

For which materials are there shortfall quantities until Tuesday of the week

after next due to the planned requirements? How large are these quantities?

Answer: Due to the planned requirements, there are shortfall quantities

for material T-T6## until Tuesday of the week after next. The system

automatically created a replenishment proposal and determined stock for

component T-T6## in storage location 0001. The pull list shows the size of

the shortfall quantity.

3. At which storage location are there shortfall quantities?

Answer: There are shortfall quantities at production storage location

PL03, where the components for assembly production are to be staged.

4. At which storage location has the system found a replenishment quantity?

Answer: The replenishment quantity was found in central warehouse 0001.

5. Can the complete shortfall quantity be covered from here?

Answer: Yes, the staging quantity is equal to the shortfall quantity.






6. You accept the system proposal. Choose “Stage” to trigger material staging

for the relevant components from warehouse 0001 to production storage

location PL03.

a)

7.

Caution: Material staging (using direct stock transfer in this case)

is not carried out until you save the pull list. If you need a printout

of the list for the physical stock transfer, we recommend printing it

before you save (Pull list – Print).

Save the list.

a)

8. Check the stock transfer posting in the message log for the pull list (in a

separate transaction).


Manufacturing → Material staging → Log

Access the log from the Material Staging menu, enter today's date as

the “To” date, and choose “Execute”.

The stock transfer was successfully posted in the system.






Task 2:

After completion of a production unit (predefined in terms of both time and

quantity) and in which you produced 90 motherboards on line T-L3##, you need

to backflush the quantity produced in the system.

1. First, open a second session of the planning table for repetitive manufacturing

(which you access by selecting production line T-L3##, plant 1200).


Manufacturing → Confirmation repetitive manufacturing

Select System – Create Session to open a new session and use the

following path:

SAP standard menu→ Logistic→ Production→ Repetitive



Plant 1200


Press “Planning Table”.

2. In the first session, backflush 90 pieces of the motherboard material

T-B10## produced on line T-L3## in plant 1200. To do so, enter the data in

the backflush transaction, which you can access from the Backflush menu

for repetitive manufacturing. Then choose “Post with correction”.

a) Enter the following data on screen of the Backflush transaction screen:

Backflush type Assembly backflush

Backflush quantity 90 pieces

Material T-B10##

Plant 1200

Prod. version 0001*)

*) The production version contains the production on line T-L3##.

Choose “Post with correction”.

3. Look at the next screen and explain which components of assembly T-B10##

were backflushed on the line but do not exit this display:

_________________________________________________________

_________________________________________________________






_________________________________________________________

a) The current BOM was exploded during the backflush. The system

determined the materials to be backflushed in the BOM explosion. The

all or nothing principle applies, which means that all four materials

displayed are backflushed.

4. Due to a technical defect in a machine, you needed 3.5 hours to produce 90

pieces instead of 3 hours as specified in the production rate in the routing (30

pieces per hour). To correct this, choose “Actual activities”. On the next

screen, select the only line proposed and confirm.

In the next window, select the “ProdTime” field under “Activities” and

overwrite the planned value under “Backflush quantity” with the actual

value (3.5 hours).

Press Enter to confirm and then choose Save.

a)

5. Go to the second session (planning table) and look at the quantities on the

line while pressing F5 (refresh). How have the planned quantities changed?

a) Go to the second session (planning table) and choose F5 (refresh the

planning table).

The oldest planned order quantity or quantities are reduced according

to the backflush quantity.

Explanation: For demonstration purposes, the backflush was made

with a date (today) that is before the actual production dates. The

backflush quantity is therefore interpreted as “over-production” that

reduces subsequently planned orders accordingly (oldest planned

orders first).





Lesson Summary

You should now be able to:• Describe the main steps in repetitive manufacturing





Unit Summary SCM300

Unit Summary









Test Your Knowledge

1. Name some basic functions of repetitive manufacturing.

2. List the basic processing steps in repetitive manufacturing.





Answers

1. Name some basic functions of repetitive manufacturing.

Answer:

• Scheduling

• Calculation and monitoring of capacity requirements

• Costing

• Availability checks

• Printing of dispatch list and operational method sheet

• Material staging (without reservations)

• Goods issue: component backflushing by default

• Goods receipt: permanently linked to final confirmation (quantities

and activities)

• Period-end closing

2. List the basic processing steps in repetitive manufacturing.

Answer:

1. Requirements

2. Line loading planning and capacity monitoring

3. Availability check

4. Printing the operational method sheet

5. Printing the production list

6. Material staging

7. Production execution

8. WIP calculation (optional in the case of reporting point backflush)

9. Final confirmation and stock receipt with component backflushing

10. Settlement using the product cost collector




Unit 5 KANBAN

Unit Overview

In this unit, you learn about the KANBAN functions.

Unit Objectives


• Explain the characteristics of the KANBAN principle

• Describe the main steps of the KANBAN procedure

• Assess the main functions of the KANBAN principle

Unit Contents

Lesson: Features of the KANBAN Procedure... .. .. .. .. .. .. .. .. .. .. .. .. .. ..210

Lesson: The KANBAN Procedure .. ... ... .. ... .. ... ... .. ... .. ... .. ... .. ... ... 214




Unit 5: KANBAN SCM300

Lesson: Features of the KANBAN Procedure

Lesson Overview

This lesson outlines the principle of the KANBAN procedure.

Lesson Objectives



Business Example

A distinctive feature of your company is a relatively constant consumptionof materials. For this reason, you want to process the material flow in your

company's production to the work centers using an event-driven approach.

You will first use the SAP-SCM KANBAN functions to familiarize yourself

with organizing replenishment using stock transfers, external procurement, and

in-house production.

Application Areas

Figure 90: Application Areas

The application areas are not restricted to certain industries. The above graphic

only contains one selection.

The KANBAN principle can be used together with all other production types.




SCM300 Lesson: Features of the KANBAN Procedure

KANBAN Principle

Figure 91: KANBAN Principle

In KANBAN, material flow is organized using containers that are kept directly at

the appropriate work centers at the production location. Each contains the quantity

of material that work center personnel need for a certain period of time. As soon

as a container is emptied by the demand source, replenishment is initiated inKANBAN. The supply source for the required material can be another place in

production, an external vendor or a warehouse. The demand source can use

material from other containers until the actual container returns to full.

The aim is to control the replenishment process in production itself and to

reduce the manual posting efforts for personnel as much as possible. This

self-management process and the fact that replenishment elements are created

close to the time they are actually consumed means that stocks are reduced and

lead times are shortened (replenishment is only triggered when a material is

actually required and not before).

In short: With KANBAN, material is provided in production exactly where it

is required and is always available in small material buffers. This means that

material staging does not need to be planned. Instead, material that is consumed

is replenished immediately using KANBAN.

By using KANBAN with the ECC System, you can automate the transmission

of replenishment data. For example, scanning the barcode on a KANBAN card

is sufficient to transmit the data required for procurement and to post the goods

receipt when the material is received.





KANBAN: Characteristics

Figure 92: KANBAN: Characteristics




SCM300 Lesson: Features of the KANBAN Procedure

Lesson Summary

You should now be able to:• Explain the characteristics of the KANBAN principle





Lesson: The KANBAN Procedure

Lesson Overview

This lesson outlines the prerequisites for the KANBAN procedure and how it is

implemented.

Lesson Objectives




Business Example

You decide to organize replenishment using stock transfers, external procurement,

and in-house production with the SAP SCM KANBAN functions.

Using KANBAN in Production

Figure 93: Using KANBAN in Production

In the general production process, the KANBAN principle is used within material

staging.




SCM300 Lesson: The KANBAN Procedure

Master Data

Figure 94: Master Data: Supply Area

The structure and organization of production are important criteria when

introducing KANBAN. With KANBAN, material is staged in specific areas

(known as supply areas) directly in production. A supply area can be used by one

or more work centers. The supply areas act as a buffer for the required materials

(for example, on shelves or in marked-out areas on the floor).

The supply areas established for the shop floor are defined in the ECC System in

the KANBAN menu. In the definition, the supply area is assigned the following

objects:

The supply area is a data object used to organize material flow for KANBAN.

It is not an inventory management object. Therefore, storage locations must

be assigned to the supply areas. Inventory management (which is relevant, for

example, for posting goods receipts) takes place at the storage location to which

the supply area is assigned.

Another significant organizational prerequisite is that you create a person who

is responsible for each supply area. The person assigned to a supply area is

responsible as the demand source for processing material and for monitoring

stocks in the supply area. The person responsible entered in the control cycle for

in-house production is responsible as the supply source for replenishment, that

is, for material provision and, if necessary, for delivery to the demand source.

The person responsible is assigned as an MRP controller to the supply area in

Customizing for MRP.

Unloading point: In external procurement, the supplier often delivers the material

directly to a certain unloading point rather than to the supply area in production.

The KANBANS are then transported from this unloading point to the supply





area. The unloading point defines where the supplier has to deliver the material

(for example, gate 1). It is printed on the KANBAN card or is transferred to the

summarized JIT call.

Delivery address: You can maintain an address in the supply area. When you

create a control cycle, this address is transferred to the delivery address of the

control cycle.

Figure 95: Master Data: KANBAN Control Cycle





To control the relationship between supply and demand source, you define a

control cycle. The control cycle defines:

• The demand source (supply area)

• The replenishment strategy (for example, replenishment using a purchase

order for external procurement, using run schedule quantities for in-house

production or using stock transfer reservations for stock transfer)

• The supply source (supplier or issuing plant for external procurement, the

person responsible for in-house production, the storage location for stock

transfer)

• The number of containers (KANBANs) circulating between the demand

and the supply source

• The quantity for each container

• The delivery address (when you use the function, the plant address isautomatically maintained). Here, you can also enter detailed information

required for the supply area. You can print this data on a KANBAN card,

for example.

• Print parameters for printing the KANBAN card.

• The pallet position: More precise specification of the material's position

(for example, a specific shelf section) in the supply area. The pallet position

can also be printed on the KANBAN card. Parameters for the automatic

KANBAN calculation.

You can also delete or lock KANBANs in the control cycle. You lock a KANBAN,

for example, if it is not going to be used for a certain period because consumptionhas reduced within the control cycle.

Figure 96: Production Supply Using Control Cycles





When you use the KANBAN procedure, warehouses or vendors are linked to the

supply areas that are assigned to the relevant producion storage locations using

control cycles.

Since the link to material staging can also take place using in-house production

within KANBAN, pre-assembly and final assembly can, for example, be linked

using KANBAN.

KANBAN Status

Figure 97: Setting the KANBAN to EMPTY = Triggering Replenishment

The progress of production in KANBAN is controlled by setting the KANBAN to

the appropriate status. Usually, only the Empty and Full statuses are used.

If the demand source sets the status to empty, the system creates a replenishment

element, instructing the material supply source to deliver.

Emptying a KANBAN does not result in a goods issue posting. In KANBAN,

goods issues are typically backflushed when an order is confirmed (or when a

goods issue is posted manually for an order).

You can set the status to Empty by scanning a bar code on the KANBAN card. To

do this, you scan the bar code using a standard bar code scanner in the Kanban

Signal → Bar Code transaction. You can also set the status to EMTPY using the

manual kanban signal transaction or the KANBAN board .





Figure 98: Setting KANBAN to Full = Posting Goods Receipt

If the demand source sets the status to Full, the system automatically posts the

goods receipt for the material with reference to the procurement element.

You can set the status to Full by scanning a bar code on the KANBAN card. To

do this, you scan the bar code using a standard bar code scanner in the Kanban

Signal → Bar Code transaction. You can also set the status to Full using manual

kanban signal transaction or in the KANBAN board .





Lesson Summary

You should now be able to:• Describe the main steps of the KANBAN procedure





Unit Summary SCM300

Unit Summary









Test Your Knowledge

1. What are the objectives of the KANBAN procedure?

2. Which objects are used to organize the material flow in the KANBAN

procedure?

Choose the correct answer(s).

□ A Material buffers

□ B Warehouses

□ C Containers

□ D Replenishment

□ E Vendors

□ F Cards

3. How is replenishment initiated in the KANBAN procedure?

4. The supply source for the required material can be

, an

or a

Fill in the blanks to complete the sentence.

5. Name the basic master data of KANBAN.

6. Setting the KANBAN to = Triggering Replenishment


7. Setting = Posting Goods Receipt






8. When is the goods issue typically posted in KANBAN?

9. When is the goods receipt typically posted in KANBAN?





Answers

1. What are the objectives of the KANBAN procedure?

Answer: The following objectives can be achieved in many cases by

controlling the production process in production itself and by reducing the

manual posting effort required:

• Shortening the lead times

• Reducing stock

2. Which objects are used to organize the material flow in the KANBAN

procedure?

Answer: C, F

In KANBAN, material flow is organized using containers that are kept

directly at the appropriate work centers (in production). Each contains the

quantity of material that work center personnel need for a certain period

of time.

Scanning the barcode on a KANBAN card is sufficient to transmit all the

data required for procurement. This card describes which material is to be

delivered where and the quantity to be delivered.

3. How is replenishment initiated in the KANBAN procedure?

Answer: In the KANBAN procedure, replenishment is initiated when the

demand source sets the container in the system to“empty”.

4. The supply source for the required material can be another place in the

production, an external su pplier or a warehouse.

Answer: another place in the production, external supplier, warehouse.

5. Name the basic master data of KANBAN.

Answer:

• Supply areas

• Control cycles

6. Setting the KANBAN to EMPTY = Triggering Replenishment

Answer: EMPTY





7. Setting KANBAN to Full = Posting Goods Receipt

Answer: KANBAN to Full

8. When is the goods issue typically posted in KANBAN?

Answer: In KANBAN, goods issues are typically backflushed when an

order is confirmed (or when a goods issue is posted manually for an order).

Emptying a KANBAN does not result in a goods issue posting.

9. When is the goods receipt typically posted in KANBAN?

Answer: If the demand source sets the status to Full, the system

automatically posts the goods receipt for the material with reference to the procurement element.




Unit 6 Project-Oriented Production (optional)

Unit Overview

In this unit, you learn about project-oriented production.

Unit Objectives


• Explain the characteristics of project-oriented production

• Describe the main steps of the overall process

• To judge the main functions for planning and production using production

lots

Unit Contents

Lesson: Characteristics of Project-Oriented Production...................228Lesson: Process Flow of Project-Oriented Production.....................234




Unit 6: Project-Oriented Production (optional) SCM300

Lesson: Characteristics of Project-Oriented Production

Lesson Overview

The following topics are covered in this lesson:

• Application areas of project-oriented production

• Project-oriented production: Characteristics

• Cross-Application Functional Process

• Master data and prerequisites

• Production lots

• Master data for production lots (BOM, plan)

Lesson Objectives



Business Example

Your company produces project-oriented products. You are a member of the

team responsible for implementing the options of project-oriented production as

part of the implementation of mySAP components in your company. For this

purpose, you must implement the entire process chain for in-house production,

which allows your company to organize, control, and execute production based onmySAP Business Suite.




SCM300 Lesson: Characteristics of Project-Oriented Production

Project-Oriented Production: Application Areas

Figure 100: Project-Oriented Production: Application Areas

Project-oriented production is used in those industries and industry sectors

where anonymous make-to-order production (preproduction) is required and

incoming sales orders are assigned later due to long lead times.

It is a typical form of make-to-order production that is carried out at an early

stage (without a specific sales order) based on production lots (WBS element).

All other types of production (production orders, process orders, and repetitive

manufacturing) can be used to carry out production.





Planning and Production Linked to AccountAssignment

Figure 101: Project-Oriented Production: Characteristics (1)







Demo Scenario: Production of a Production Lot

Figure 104: Demo Scenario: Production of a Production Lot

Demonstration example: “Project-oriented production”:

Pumps and their assemblies (casings, shafts, and so on) are manufactured in plant

1000. The pre-assembly and final assembly as well as the assembly production

is carried out as make-to-order production. Due to long lead times and the fact

that sales orders arrive late, production lots must be used for planning and

pre-production.

Production orders are used to carry out the production. The individual parts for

assembly production are transferred by picking or using the pull list from the

material warehouse to production.





The most important data in the training system is:

Material numbers

T-POP Pump (Make-to-stock and make-to-order

production)

100-100 Casing (Make-to-stock production)

100-200 Warehouse (Make-to-stock production)

100-300 Shaft (Make-to-stock and make-to-order

production)

100-400 Electronics (Make-to-stock production with production

version)

Work centers

1310 Pre-assembly 1

1320 Pre-assembly 2

1904 Final assembly 1

1906 Paint shop

1905 Final assembly 2

1721 Check





Lesson Summary

You should now be able to:• Explain the characteristics of project-oriented production





Lesson: Process Flow of Project-Oriented Production

Lesson Overview


• Process flow

– Cost estimate for production lots

– Planning of production lots

– Production of production lots

• Assignment of sales orders to production lots

• Integration with other types of production

Lesson Objectives




lots

Business Example

Important stages of project-oriented production are the creation and costing

of a production lot, the processing of BOMs and routings that are related tothe production lot, planning and production based on the production lot, and

assignment of sales orders to production lots that have already been manufactured.

You can use all production types explained in the previous units to carry out the

production.




SCM300 Lesson: Process Flow of Project-Oriented Production

Process

Figure 105: Project-Oriented Production: Process (1)

Project-oriented production (SEIBAN) supports costing, planning, external

procurement, in-house production, and inventory management of products with

reference to a production lot and a deferred assignment of the production lot to

incoming sales orders.

The production lot is a WBS element (account assignment object) that creates

individual planning segments in MRP.

In the project definition, the “valuated project stock” indicator is activated. For the

WBS element, the operative “account assignment element” and “billing element”

indicators (for assigning the production order and the account assignment of sales

orders that are received later) are activated.

Production lot costing can be carried out with a specific quantity structure (BOM,

routing). The result can be activated as a specific material price (CO-PC).

In demand management, planned independent requirements are assigned to the production lot using account assignment category Q.

Material requirements planning (ECC - MRP) creates planned orders that are

converted to manufacturing orders (usually production orders). The orders are

assigned to the production lot (WBS element) and can thus be evaluated in the

project information system.

The production orders are produced, confirmed, and delivered, and a project

stock (with reference to the production lot) is created.





WIP determination, variance calculation, and settlement are generally

periodic work for Cost Object Controlling (production lots), and are usually

processed in the background.

Project-Oriented Production and Project Management

Figure 108: Project-Oriented Production and Project Management

You do not need to use Project System (PLM-PS) to carry out project-orientated

production. However, you can use it in within a project for the in-house production

of a material.

WBS elements are usually part of a work breakdown structure in PLM-PS.

In project-oriented production, the WBS element is used as a production lot and

can be used without reference to a project.

The production lot (WBS element) creates the link between the project and sales

and distribution, materials management (purchasing and inventory management),and production planning and control.





Master Data

Figure 109: Project-Oriented Production: Master Data

The material to be produced must have a planning strategy group that points

to a requirements class in the sales order for which the “Q” account type

(engineer-to-order production) is defined.

In transaction CSPB (WBS BOM Browser), you can create production

lot-related BOMs from single-level BOMs and process them.

In transaction CA01 (Create Routing), you can create production lot-related

routings from routings and process them.

The valid BOM and routing for MRP or the production order are selected in a

special selection procedure.





Figure 110: Production Lot-Related BOM and Routing

You can create BOMs and routings specifically for a production lot (or, to be

more precise, for each WBS element).

In this way, you can prepare and apply special technologies for production that

differ from material BOMs and routings.

Production lot-specific BOMs and routings are automatically transferred to

production orders with reference to the account assignment (production lot).

In Product Cost Planning (CO-PC), you can use these BOMs and routings to

create “production lot costing”.

Production lot costing can be activated. This defines a material price that is used

to valuate stocks and consumption of this material instead of the standard price.





SD/PP Transfer of Requirements

Figure 111: SD/PP Transfer of Requirements (1)

Using the planning strategy group, you assign the valid planning strategies to

the material in the material master. This is a prerequisite for finding the correct

requirements type in the management of planned independent requirements and

sales orders.

You maintain planning strategies (and planning strategy groups) in Customizing:

ECC → choose Production→ Production Planning → Demand Management

→ Planned Independent Requirements→ Planning Strategy→ .......

The main strategy of the strategy group determines the default requirements

type for sales orders and for planned independent requirements.

Requirements classes are assigned to individual requirements types.

The requirements class is used to call the SD/PP transfer of requirements, the

MRP relevance, the availability check in SD, the account assignment category

and many other processes.

If there is no entry for the planning strategy group in the material master, the

system uses the item category group (sales tab in the material master) and the

MRP type to find the requirements type for the sales order. This approach can

be explicitly controlled for special sales orders but is not designed to transfer

requirements to PPS.





Figure 112: SD/PP Transfer of Requirements (2)

You maintain requirements classes in Sales & Distribution (SD):

ECC → choose Sales and Distribution → Basic Functions→ Availability

Check and Transfer of Requirements→ Transfer of Requirements→ Define

Requirements Classes





Stock

Figure 113: Sales Order/Project Stock and Collective Stock

Several options are available for managing material stocks.

Warehouse stock of materials that are to be managed separately for the production

lot are managed in a project stock .

The criterion for this is the Individual/Collective Requirements indicator in

the material master.





Figure 114: Valuated Project Stock: Quantities and Values

Every quantity flow (MM) has a corresponding value flow in financial accounting

(FI document) and cost accounting (CO document).

All planned costs, commitment values, and actual costs (also for individual

requirements stock components) are displayed in the order or network.

Complete report of values on all production levels (unlike non-valuated stock

where values from different levels are mixed and displayed as costs for the WBS

element).

For the project stock, G/L account determination can be controlled differently to

the collective stock through separate valuation classes in the material master.

WIP is created for the orders as it is for collective stock and does not need to be

calculated by results analysis (as it needs to be for non-valuated stock).





Figure 115: Non-Valuated Project Stock: Quantities and Values

Material components can be managed in a project stock (WBS element or sales

order item).

In the example, both the T-POP assembly and the selected components are

managed in the project stock.

Procurement for these materials (for example, the production order for T-POP) can

be displayed in the structures and controlling information systems for the project.

Non-valuated project stock means that quantity and value flows are separated.

For example, goods issues lead to quantity updates in the network or production

order (the material is consumed).

The material movements are usually non-valuated, which means they do not create

FI or CO documents.

Only the goods receipt for the purchase order creates an FI document that is

assigned to the WBS element.

In networks or production orders, this procedure results in incomplete costs for the relevant MRP levels. WIP stocks must be created by results analysis and

its settlement.





Figure 116: Collective Stock: Quantities and Values

Material components that are managed in collective stock have synchronous

quantity and material flows.

Each quantity posting (for example, goods receipt, material withdrawal from

warehouse, delivery) results in a corresponding posting in FI/CO.

However, only the costs and availabilities of the directly assigned components

are of interest and visible for a project.

In the example, assembly T-POP is withdrawn from the warehouse for a price

defined in the valuation strategy.

The production order for producing T-POP and the associated costs are not shown

in the project information systems. Only the reservation and the subsequent

goods issue of the T-POP assembly for the network are displayed.





Information Systems

Figure 117: Project-Oriented Production: Information Systems

Project-oriented production is supported by several information systems.

They differ in the way they use the order database (directly or indirectly) as

well as in their results.

Systems marked with (1) are profile-controlled.

You set up the profile in Customizing for the relevant application (shop floor

control, project system).





Lesson Summary

You should now be able to:• Describe the main steps of the overall process


lots




SCM300 Unit Summary

Unit Summary





lots




Unit Summary SCM300





Test Your Knowledge

1. Name the functions of project-oriented production.

2. What are the four essential steps in a project-oriented production process:

3. Outline the steps involved in processing a production lot.





Answers

1. Name the functions of project-oriented production.

Answer:

• Production lot creation

• Processing of BOMs and routings that are related to the production lot

• Production lot costing

• Production lot planning for a certain period

• MRP for production lot

• Production of individual production lot

• Progress check for production lot

• Assigning the production lot to incoming sales orders

• Storage (valuated project stock)

• Sales order delivery

• Settlement

• Project-oriented cost accounting

2. What are the four essential steps in a project-oriented production process:

Answer:

1. Planning for each production lot

2. MRP for each production lot

3. Production of individual production lots

4. Consumption of production lots (for example, delivery for sales orders)





3. Outline the steps involved in processing a production lot.

Answer:

1. Production planning

2. Create a production lot

3. Enter planned independent requirement

4. Stage master data for each production lot

5. Cost a production lot

6. MRP

7. Material staging

8. Order execution

9. Receive a sales order 10. Confirmations

11. WIP determination

12. Goods receipt

13. Create a delivery


15. Order settlement




Course Summary SCM300

Course Summary


• Describe basic shop floor control procedures and functions and understand

simple scenarios in the SAP System




Appendix 1Summary

Overview of Production Types

Figure 118: Overview of Production Types (Basic Functions)

These slides allow you to compare the detailed functions of the different

production types.

It must be emphasized that the individual production types do not exclude

each other in an application case; rather, depending on the conditions, it is possible

to combine them.

Legend:




SCM300 Appendix 1: Summary

(1) By-products only

(2) At goods receipt of finished product

(3) At goods issue of components

(4) Active ingredient management can be realized together with material

quantity calculation

(5) In the standard system, only with Cost Object Controlling for product

(6) At goods receipt using confirmations

(7) Not with approved process orders

(8) Simple or parallel discontinuation possible

Figure 120: Overview of Production Types (3)

(1) Possible using BAPI




Appendix 1: Summary SCM300

Figure 121: Overview of Production Types (Integration)

Information About Follow-Up Courses

Figure 122: Information About Follow-Up Courses (1)

For a complete overview of all courses offered, see the SAP Curriculum Plan.

You can easily find this information on SAP Service Marketplace or on the SAP

homepage.




SCM300 Appendix 1: Summary






Appendix 1: Summary SCM300

Information on the Internet

• SAP Help Portal

– http://help.sap.com/

• SAP Service Marketplace

– http://service.sap.com/

• mySAP Supply Chain Management

– http://www.sap.com/scm/

• SAP Educational Services

– http:// www.sap.com/education/

• Software partners – http://www.sap.com/partners/software/

• SAP Shop

– http:// www.sap.com/shop/




Appendix 2 References

Figure 125: References




Appendix 2: References SCM300
