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Production Planning

Production Planning. Mixer. Snack Bar Line. Mixer. Form. Bake. Pack. Raw Material Warehouse (100). Finished Goods Warehouse (300). Mixer. Production (200). Mixer. Work Centers for Fitter Snacker. Company Code. Work Center. Routing. Capacity Planning. Valuation Area.

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Production Planning

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  1. Production Planning

  2. Mixer Snack Bar Line Mixer Form Bake Pack Raw Material Warehouse (100) Finished Goods Warehouse (300) Mixer Production (200) Mixer Work Centers for Fitter Snacker

  3. Company Code Work Center Routing Capacity Planning Valuation Area Production Orders Material Master Bill of Material Plant Product Costing Production Master Data

  4. Navigating Material Master Views Click on tabs to select Use direction arrows to scroll Use icon to get list

  5. Material Types • A Material Type is used to classify materials: • Defines material attributes like: • Valuation (value of material as market changes) • Procurement (internal, external or both) • Controls screen sequence and number assignment • Can restrict access using authorization groups • A number of material types are pre-defined • Abbreviations are abbreviations of German terms • Users can create their own material types • Usually best to copy a pre-defined type, then modify

  6. Material Types in Exercises • ROH: Raw material • Externally purchased only, no sales view • Oats, Wheat Germ, Honey, Cinnamon, etc. • HALB: Semifinished Product • No purchase or sales view • Dough for NRG-A and NRG-B bars • FERT: Finished Product • Produced internally, has sales views, no purchasing views • NRG-A and NRG-B bars

  7. Other Material Types • HAWA: Trading Goods • HIBE: Operating Supplies • VERP: Customer returnable packaging • LEER: Empty containers • KMAT: Configurable material • ERSA: Spare parts • DIEN: Services • NLAG: Non-stock, non-valuated material • UNBW: Non-valuated, stocked material • FHMI: Production resources/tools • WETT: Competitive products • PROD: Product group • IBAU: Maintenance assembly

  8. Documentation in Material Master • The SAP R/3 system documents all changes to the material master: Click for documentation

  9. Documentation in Material Master

  10. ## NRG–A (case) ## Dough NRG–A (lb) ## Oats (lb) ## Wheat Germ (lb) ## Cinnamon (lb) ## Nutmeg (lb) ## Cloves (lb) ## Canola (gal) ## Honey (gal) ## Carob Chips (lb) ## Raisins (lb) ## Vit/Min Powder (lb) Master Data – Bill of Material • BOMs are represented as single-level relationships between a material and its components and sub-assemblies BOM for NRG-A BOM for Dough NRG-A

  11. 10 20 30 40 50 60 Routings • Routings define the relationship between a material and the sequence of workcenters (operations) that are required to produce the material • Also specifies where sub-components and sub-assemblies are needed in producing the material

  12. Functions of Production Orders(part 1 of 2) • Status Management: Tracking, User-defined status • Scheduling • Calculation of Capacity Requirements (detailed) • Costing/Collection of Costs • Availability Checks (material, capacity, PRT- production resources and tools) • Printing of Paper Orders/related documents • Assembly drawings and instructions • Inspection instructions • Storage regulations • Material Staging: withdrawal of materials used in production, e.g. components and sub-assemblies

  13. Functions of Production Orders(part 2 of 2) • Confirmations: quantities, activities, times • Goods receipt: receipt of completed materials • Period-end closing: Process cost allocation, overhead costs, surcharges, WIP (work-in-process) calculation, variance calculation, order settlement • Archiving and retrieval • Many more: rework, serial numbers, as-built, quality control, etc. • Production Orders capture actual data—costs, dates, etc.

  14. Status Management(part 1 of 2) • Status Management is one tool that can be used to manage released production orders • A status can allow, allow with warning, or block a business transaction • Two status types are available • System status: internal, predefined, fixed number • User status: freely definable, set by user

  15. Status Management(part 1 of 2) Status Status detail

  16. Planned Order 3 weeks in future Planned Orders 2 weeks in future Planned Orders 1 week in future Production Orders released today Planned Orders vs. Production Orders • Planned Orders are for PLANNING • Production Orders are for EXECUTION Planning Execution

  17. Master Data for Production Orders • Master Data is data that does not change frequently • Master Data for the production order comes from: • Material Master • Bill of Material (BOM) • Work Center • Routing • Production Resources/Tools (PRT) • Materials like gages, fixtures, test equipment • Can also be items like drill bits that can be consumed in production but aren’t consumed INTO the product • Most Production Order data comes from BOM and Routing

  18. Order Request Archiving & Deletion Order Creation Order settlement Availability Checks 1 16 2 Variance Calculation 15 Machine Reservation 3 14 Goods Receipt 4 Order Release 13 5 WIP Determination Download to PDC system 6 Print Order 12 Confirmation Material staging 7 11 Upload from PDC system 8 10 9 Material withdrawal posting Production Order Cycle

  19. Routing Selection • Different routings can be selected for a product depending on a number of criteria like: • Raw material used • Lot size • Product features/configurations (variants) • A complicated, automatic selection process can be configured

  20. Bill of Material (BOM) • The system selects the FIRST Valid BOM it finds • Validity can depend on: • Date (engineering changes) • Customer • Serial number

  21. OP 0010 OP 0010 OP 0020 OP 0020 OP 0030 OP 0030 …….. …….. OP 0080 OP 0080 OP 0090 OP 0090 Material Assignment Assigned via BOM: All materials assigned to first operation Material Material Material Assigned via Routing: Materials can be assigned to specific operations Material Material Material

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