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Objectives

Enterprise Wide Information Systems Manufacturing Planning and Execution Instructor: Richard W. Vawter. Objectives. After this week, you will be able to: Describe the basic business process of manufacturing planning and execution in an ERP System.

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Objectives

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  1. Enterprise Wide Information Systems Manufacturing Planning and ExecutionInstructor: Richard W. Vawter

  2. Objectives After this week, you will be able to: • Describe the basic business process of manufacturing planning and execution in an ERP System. • Discuss the integration points of manufacturing to materials management. • Discuss the reporting and analysis tools used in R/3 for manufacturing. • Execute the manufacturing planning and execution process in the R/3 system.

  3. Topics • Organizational Elements and Master Data • Business Process for Manufacturing Planning and Execution • Reporting and Analysis

  4. Manufacturing Planning & Execution The SAP R/3 application modules that support most of Manufacturing Planning and Execution are: • Production Planning • Materials Management

  5. Company Code Storage Location Plant Organizational Elements The SAP R/3 Manufacturing business process uses the following R/3 organizational elements:

  6. Master Data The following master data is used in the Manufacturing Planning and Execution processes: • Material master • Bill of material (BOM) • Work center • Cost center • Routing • Production resources and tools

  7. Material Master Primary Views * * * *

  8. Examples of material types: • Raw materials • Operating supplies • Semi-finished products • Finished products Material Types control the processes a material can go through 1. Raw materials 3. Semi-finished products 4. Finished products 2. Operating supplies

  9. Power Train Chassis Motorcycle Rear Wheel Front Wheel Gear Motor Exhaust Frame Brake Bill of Material is a structured list of components of a product

  10. Work Centers describe where and how operations are performed • Work Centers can be defined by the machines and employees involved in the production process. • Each work center contains distinct capacity, costing, and scheduling information.

  11. Cost Centers Used to collect the actual costs of one or more work centers. Cost Center Motorcycle Assembly Assembly Area 2 Assembly Area 1 Inspection Work Centers

  12. Routings • Describes the sequence of operations required to produce a specific material. Material components Material • Work center • Texts • Control data • Times Production resource tools Routing group

  13. Production Resource/Tool Categories Production resource/tools are moveable operating resources required for production. Documentation, Instructions Material Equipment Miscellaneous Production Resource / Tools

  14. Topics • Organizational Elements and Master Data • Business Process for Manufacturing Planning and Execution • Reporting and Analysis

  15. Manufacturing Planning and Execution • Manufacturing Planning is the process of using forecasts and customer demand to create production and procurement schedules for finished products and component materials. • Manufacturing Execution is the process of producing finished products and component materials and recording all shop floor activities and inventory movements.

  16. Manufacturing Planning and Execution • The overall manufacturing planning process comprises: • Forecast values and requirements are first determined • Master schedule items are planned • Material requirements planning is then calculated • The overall manufacturing execution comprises: • Production orders are first released • Materials are issued next • Completion confirmations are then performed • Goods are finally received into stock • The manufacturing process affects capacity, costing, inventory, reporting, and analysis

  17. Planning process Execution process S O P Production Order exec. Sales Info System Procurement Sales & Oper Planning Demand Mgmt MPS MRP Manufacturing Execution Order Settlement Forecasting CO/PA Inventory Costing Capacity Production Master Data Reporting and Analysis Five Phases of the Manufacturing Processes 1. 5. 2. 3. 4. Next week we will take a closer look at each of these five phases of the Manufacturing process.

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