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PRODUCTION PLANNING MODULE

PRODUCTION PLANNING MODULE. FI. CO. HR. PP. QM. SD. PM. PS. MM. Organizational and Master Data. Business Process for Manufacturing Planning and Execution. Reporting and Analysis. Manufacturing Planning and Execution. Procurement. Sales Info System. Forecasting. Sales & Oper.

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PRODUCTION PLANNING MODULE

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  1. PRODUCTION PLANNING MODULE

  2. FI CO HR PP QM SD PM PS MM

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

  4. Procurement Sales Info System Forecasting Sales & Oper. Planning Demand Mgmt MPS/MRP Material planning CO/PA Order Settlement Manufacturing Execution Planning Process Execution Process Manufacturing Planning and Execution

  5. Manufacturing Planning and Execution REM Requirement from sales/marketing Production Planning Check Availability Components Capacity no no Shift dates / Provide Addl. capacities Purchasing yes yes Run Schedule Qtys Receipt of Fin Goods In Stores Sch & Cap Levelling Backflushing Mfg. Execution

  6. Manufacturing Planning and Execution Requirement from sales/marketing Discrete Production Planning Check Availability Components Capacity no no Shift dates / Provide Addl. capacities Purchasing yes yes Production Order Receipt of Fin Goods In Stores Sch & Cap Levelling Production Confirmation Mfg. Execution

  7. Manufacturing Planning and Execution COMPONENTS • Sales Info System • Information contains total sales orders already obtained, • incoming sales orders, pending sales orders – product wise, • customer wise, region wise. • Forecasting • Based on the past history of consumption, a forecast of • the sales figures for a product can be made. • Future projections are made using one of the Statistical • forecasting methods.

  8. Manufacturing Planning and Execution • CO/PA • Projections will be based on the company’s future projection • of costing and profitability analysis. • Sales & Operations Planning • Higher level planning i.e.overall planning at company level • Yearly/Half yearly/Quarterly Planning • Demand Management • Management of Requirements • Requirements can be from sales forecasts, sales orders,etc.

  9. Manufacturing Planning and Execution • MPS • Planning of items that greatly influence the company’s profits • or consume critical resources/dominate production processes. • After the production plan of these critical items are firmed up, • the planning of other components are taken up. • MRP • This is the total planning of all the components taking into • consideration the existing requirements and stocks. • Creation of purchase requisitions, production orders,etc. • Final step in the planning process.

  10. Manufacturing Planning and Execution MANUFACTURING EXECUTION Discrete Manufacturing - • Production orders are released • Materials are issued • Completion confirmations are performed • Goods are received into stock Repetitive Manufacturing - • Run Schedule quantities are viewed • Quantities are confirmed by Backflushing • Goods are received into stock

  11. Manufacturing Planning and Execution • ORDER SETTLEMENT • Costs accrued to an order are debited to one or several allocation receivers belonging to financial or managerial accounting.

  12. Manufacturing Planning and Execution STANDARD PRODUCTION PLANNING REPORTS Stock/Requirements List Lists the latest stock/requirement position of a material in the plant i.e. planned orders, production orders,etc. Production Plan This report lists the monthly production plans – material and plant wise. Orders This report lists the orders pending/completed for a material material wise or work center wise..

  13. Manufacturing Planning and Execution STANDARD PRODUCTION PLANNING REPORTS Consumption Lists the consumption of a material for the period in question. Quantity produced This report lists the quantity of the material produced during the Period in question. Work center Loads This report lists the available capacities, required capacities, remaining available capacities and %load for the work center.

  14. Manufacturing Planning and Execution STANDARD PRODUCTION PLANNING REPORTS Missing parts Lists the missing parts that are required for the production of a material. Backlogs Lists the backlog of the load at a work center for the period in question.

  15. Production Planning Basic Data Routings Materials Work Centers Production Facilities Production Resources/Tools PP Basic Data Inspection Plans Capacities F06010 Bills of Material

  16. SAP R/3 Integration Model Material Availability Check Sales Order Sales & Distribution Customer Transfer of Requirements Shipment Goods Issue to SO Credit Limit Invoice Sales Forecast / Plan Production Order Production Planning Materials Management Production Order Receipt Production Cost Accounting Document Goods Receipt Invoice Receipt Purchase Order Finance & Controlling Vendor Accounts Payable Receivable Accounts / Cash Receipt

  17. Organizational Structures in R/3 Levels Views Group Cost accounting Controlling areas External logistics Sales organizations Purchasingorganizations Accounts Company codes Valuation areas Internal logistics(MRP/Production) Plants Inventory management Storage locations/batches/special stocks

  18. Material Master Data Material Master General Data Sales Specific Data Plant Specific Data St. Loc. Specific Data Data applicable throughout the client e.g. Material number Description Units of measure Weight Volume Product hierarchy Data dependent on sales organization and distribution channel e.g. Delivering plant Sales text Sales units Shipping data Division Data relevantfor planning andproduction e.g. MRP profile Production costs Planning data Valuation Data referring to storage and inventory management e.g. Quantities Special stock Warehouse attributes

  19. Material Types in the Standard SAP Material Type Description DIEN ERSA FERT HALB HAWA HIBE LEER NLAG ROH VERP WETT PROD Service Spare Part Finished Product Semi-finished Product Trading Good Operating Supply Empty Containers Non stock Item Raw Material Packaging Competitor Product Production Resources/ Tools

  20. Master Data Views • Master data is a key pieceof information in the system • Master data can be seen froma number of views • Each view can correspondto an SAP module • Each view has a numberof information screens • Each view belongs to an org unit within the business • One product may have multiple plant and sales views, one for each plant or sales area Finance Engineering Design Sales Product Data Purchasing Production Stock

  21. Examples of How Data is Used Controls which General Ledger Account is updated Material description used in reporting Finance Engineering Design Texts copied to purchase orders Sales Controls customer ordering rules for material Product Data Purchasing Production Stock Data used to calculate MRP lead times Maintains stock levels by plant, storage location, and batch

  22. Bills of Material Simple BOM Variant BOM Multiple BOM BOM representing a material which can be made up of multiple compositions e.g. different components and quantities Simple BOM representing single material Similar materials represented by variants on one BOM

  23. Bill of Material Validity • Area of Validity – The same Bill of Material can be allocated to several plants. Before you can allocate the BOM to a different plant, the material must exist at the new plant, the unit of issue on the BOM item must be the same. • Validity Period (Valid from/to dates) • Becomes effective with the valid from date • The validity date is determined by the system automatically to be either the next effective from date, or 12/31/1999. A A B C B D X----------------------------------------------------------->>>> from 1/1/95 from 12/31/95 to 12/30/95 to 12/31/99

  24. Item 10 Item 20 Item 30 Sub Item 10 Sub Item 20 BOM Structure Plant Assignment Validity Period Release Indicator BOM Header Stock Items Non-stock Items Variable Size Items Document Items Text Items Additional component details e.g. installation points for components

  25. Bill of Material Glossary • BOM Category – categorizes BOM’s to represent different objects; for example: • Material BOM -- structure of products manufactured • Equipment BOM -- structure of equipment for plant maintenance • Document BOM -- structure of documents such as drawings (3.0) • BOM Group – is a collective number for all BOM’s in a group which allows for one • or several similar products to be described under one number. • All Alternatives of a multiple Bill of Material • All variants of a variant Bill of Material • BOM Usage – special view of the BOM which represents a specific area of • the company in which the BOM is used; for example, Engineering, Production, • Costing, Sales, Plant Maintenance • The BOM Usage allows different views to exist without • separate BOM’s for each usage.

  26. Bill of Material Glossary (cont.) • Technical Type – the system distinguishes BOM’s according to whether they • represent product variants or production alternatives. If you create a variant • for the BOM,the system marks it as a Variant Bill . If there is more than one • alternative for a material, the system marks the BOM as a Multiple Bill. • BOM Validity– Bills of Material are valid over an area and effectivity period. • Area of Validity -- identifies which plants the BOM has been allocated to • Validity Period -- identifies the from and to effectivity dates. • The default to date is 12/31/9999

  27. Bill of Material Glossary (cont.) • Item Category– When you enter a new Bill of Material item, an item category must be assigned. • It has important control functions such as: • Screen selection • Specific processing, such as material number required, negative values supported. • The Item Category cannot be changed once set. It must be deleted and re-added. • Sizes are maintained for variable-size items • Item categories include: • Stock Items -- material in stock as a component • Non-stock Items -- material not stocked - with or without a material number • Variable-size -- system calculates the quantity required using formulas • PM Structure Item -- used with plant maintenance equipment • Document Item -- used with Document BOM’s • Sub-Items– are typically used to represent different installation points for partial quantities of an item. • In assembling resistors on a printed circuit board, the installation points are described. • There is no logic related to sub-items

  28. Work Centers Capacity Requirements Planning Machines Cost Center Assembly Line Work Centers People Costing Scheduling, Execution Times Production Line

  29. Work Centers and Routings Work Center W1 Routing Assembly Cost Center 100 Operation 10 Work Center W1 Assembly Cost Center 100 Operation 20 Work Center W2 Finishing Operation 30 Cost Centre 200 Cost Center 200

  30. Work Center Category • Work centers are allocated to different work center categories • The work center category is used to control the field and screen selectionfor work centers during work center maintenance. • Work Center CategoryScreen View • Statistical Work center Basic Data • Production Work Center Basic Data • Default Values • Capacity Values • Scheduling • Cost Center Assignment

  31. Cost Center Assignment to Work Center for Operation Costing Cost Center Set Up $70.00 Mach $60.00 Activity Rates Labor $80.00 Overhead $70.00 Set Up (SET) Work Center with Activities during production Machine (MACH) Labor (LAB) Routing with standard values Oper 0010 Oper 0020 Oper 0030 Oper 0040

  32. Use of Formulas in Work Centers Work Center Schedule Work Center Capacity Work Center Formulas Set up Formula Machine Time Formula Operation Std Values Teardown Formula Set up 1.0 hrs Machine 5.5 hrs Routing with standard values Teardown .5 hrs Oper 0010 Oper 0020 Oper 0030 Oper 0040

  33. Available Capacity at a Work Center Planned Downtime Break Time 1 hr 8 hrs 7 hrs 1 hr 6 hrs Working Hours less Breaks Productive Working Hours Working Hours

  34. Routing Structure Views Routing Operation 10 Operation 20 Operation 30 Materials Components BOM Work Centre: PP-ASSEM Control Key: - Time Tkts - Costing Operation Text: Pre-assemble frame Std Values: Lab:10 mins Mach:10 mins Process Resource Tool (PRT)

  35. Production Master Data Material Type Materials and PRTs BOM Groups Routing Groups Cost Centers W/C Category Item Category Bills of Material Routings Work Centers Components Allocated to Operations

  36. Operation Operation types (Main) operation • Sub-operation • HierarchyCosting • Completion confirmations • Scheduling always takes place on the (main) operation level Sub-operation The control key defines whether completion confirmations and costing are carried out on the (main) operation level, or on the sub-operation level. Indicator: group operation sub-operation level combined operation (main) operation

  37. Operation / Sub-operation Schedule at Operation Level Capacity Planning & Costing possible at Sub Operation Level Level Operation 0010 Sub Operation 0010 / 10 at Work Center A1 Sub Operation 0010 / 20 at Work Center A2 Sub Operation 0010 / 30 at Work Center A3 Operation 0020 Useful when processing for operation 0010 occurs over multiple work centers

  38. BOM Material Allocation Product Routing Op. 10 Op. 10 Op. 20 Op. 30 Op. 30

  39. Material Material-Routing Allocations Routing Group Routing Group Counter 1 1 2 2 01 02 01 02 1 1 1 2 3 1 2 3 1 1 • A routing alterative can be allocated to several materials. • A material in a plant can be allocated to several alternatives.

  40. Routing Default Values Material Master Routing Work Center Control Key Standard Values Activities Standards Text Key HR data Base Unit of Measure Planner Group Short Text

  41. External Processing Oper 0010 Oper 0020 Routing data copied to order including quantities and dates Purchasing creates P.O. At goods receipt, the operation is confirmed Purch Reqn Purch Ord Vendor Proc Goods Rec Oper 0040 Oper 0050

  42. Operation Lead Time Oper 0010 Oper 0020 Oper 0030 Float Before Float After Operation Lead Time Queue | Setup | Process | Teardown | Wait | Move Interoperation Time Interoperation Time Execution Time

  43. Routing represents a standard sequence defining production procedure Standard Routing includes processes which can be performed simultaneously to achieve time efficiencies Parallel Routing includes processes which can/must be split across a number of work centers Split Routing Operation Sequences Routing defines process where one operation is to overlap with the following operation Overlapped

  44. Sales Plan Production Plan The Planning Concept in SAP SOP MPS MRP Planned Independent Requirements Customer Independent Requirements Demand ie Requirements Requirements (Orders) from SD Module Offset Keep Balanced Planned Orders Order Proposals Production Orders Purchase Requisitions Order proposals, planned orders etc are created and adjusted by running the MRP or MPS programs.

  45. Sales and Operations Planning Functions • SOP specifies sales quantities for the long and intermediate term to roughly assess the feasibility of sales and operation plans • Sales and Operations Planning at the Product Group or F/G level • Materials may be planned together in Product Groups • Sales quantities are determined for future periods • Production quantities are then determined on the basis of sales

  46. Sales and Operations Planning – Planning Levels • MRP II is concerned with integrating individual plans within a supply chain • Profitability Analysis – Revenue and Sales Plans • Sales and Operations Planning – Sales and Production Plans • Master Planning – Demand Program and Master Schedule • Material Requirements Planning – Dependent Requirementsand Procurement Plan

  47. Sales and Operations Planning – Steps • Step 1 – Sales Planning of Future Sales Quantities • Copy in from Sales Information System or Profitability Analysis • Automatic forecast based on historical factors • Manual entry of sales quantities • Step 2 – Production Planning • Synchronize production plan with sales plan • Stock level equal to zero • Specify a target days supply by period • Specify a target stock level by period • Enter planning data manually

  48. Sales and Operations Planning – Steps • Step 3 – Disaggregation of Planning Values • Determine the sales and production quantities of product group members • Modify the disaggregated sales planning data and create a production plan for each member • Step 4 – Transfer of Planning Values to MRP • Pass the planned sales and production quantities as independent requirements to demand management • If product group data is transferred, the system automatically disaggregates the planning data to the finished product level

  49. Sales and Operations Planning – Product Groups • A Product Group brings together materials according to some criteria such as similar type or manufacturing process. • Link material master data with product groups • Materials and product groups can be members of more than one group for different planning scenarios • Assignment of members from different plants to the same product group for cross-plant planning • A product group may have a different unit of measure from its members e.g. aggregate in cartons vs pieces • Proportional factors for disaggregation - how the product group quantitiy is distributed to its members • Supports production versions for a material or group • Supports multi-level product group hierarchy • Graphical support of one or more levels

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