SAP R/3 Business Blueprint

1. SAP R/3Business Blueprint Chapter 6 ”Production Logistics”

2. Production Logistics (P.L.) • Is the SAP solution for a modern production planning and control system • It provides quick deliverability • It is flexible • Offers high level of performance for the planning and control of the total material flow

3. MRP II • MRP II is a internationally recognised planning concept • Shortcomings with MRP II: • Planning is treated separate from managing actual production activities • The approach does not provide support for other current initiatives • P.L., along with its links to R/3, is an implementation that effectively overcomes these two shortcomings

4. Production Logistics Organisa- tional Units Supply Chain Scenarios Production Business Objects Business Process

5. Production by Lot Size • A make-to-order strategy that allows a company to produce several customer requirements in one lot • The strategy is to be responsive to customer demands while keeping stock and production runs to a minimum • Production work orders controls the requirements and what to produce • => noncustomer order-specific production

6. Production by Lot Size II • Scenario flow: • Sales and operation planning • Demand management • Material requirements planning • Creation, release, and execution of the production work order

7. Repetitive Manufacturing • Refers to production of identical or similar products on high-volume production lines • Production schedules are used to manage production (instead of production work orders) • The schedules gives which products to manufacture and in which sequence

8. Repetitive Manufacturing II • Scenario flow: • Sales and operation planning • Demand management • Customer demands and long term production plans • Creation, release, and execution of the master schedule

9. Make-to-Order Production • Strategy for individually managing the production associated with specific customer sales orders • Production and procurement costs are tracked to individual sales orders • This results in detailed reporting and analysis of the planned and actual costs for each order • Same scenario flow as Prod. by Lot Size

10. Process Manufacturing • The SAP R/3 scenarios for process manufacturing manage the planning, execution, and control activities for process-oriented manufacturing • The Reference model contains different scenarios, including: • Continuous production • Manufacturing in a continuous process over time • Discontinuous production • Manufacturing in stages • Regulated production • Requires that the process orders meet rigorous quality standards and legal requirements

11. Process Manufacturing II • Scenario flow: • Sales and Operation Planning • Demand Management • Generation of long-term production plans and master schedule • Computation of material flow • Production is managed by the production order • Material is received from or issued to production and the process order is completed and closed out.

12. Project-Related “Engineer To Order” • The engineer-to-order manufacturers require a system that synthesises the best from • Production Management • Project Management • The project-related, engineer to order scenario, describes a process for managing the production of complex items

13. Project-Related “Engineer To Order” II • Scenario flow: • Establish a project structure to quote a customer job • Detail cost plans are developed and integrated into a budget • The project is the released for processing

14. Quality Management for Goods Receipt from Production • This scenario integrates the goods receipt transaction into an enterprise wide quality system • It can be used in any environment to support quality improvement programs

15. Quality Management for Goods Receipt from Production II • Scenario flow: • Goods receiving function • R/3 uses data from that function to generate the Quality Management order • The Q.M. order is used to control the inspection process and record results • When all results are recorded, the Q.M. order is closed and inventory lot is moved into stock-keeping area or next step in production