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Material Planning in SAP: Modifying Master Data for GigaBike and Creating MiniBike

This presentation covers the process of modifying the material master data for GigaBike in SAP (MM02) and creating a cheaper version called MiniBike (MMF1). It includes scenario details, steps to modify master data, and the use of Bill of Material (BOM) in SAP.

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Material Planning in SAP: Modifying Master Data for GigaBike and Creating MiniBike

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  1. SAP TERP10 Preparation Presentation 4 Dr. Gábor Pauler, Associate Professor, Private Entrepeneur Tax Reg. No.: 63673852-3-22 Bank account: 50400113-11065546 Location: 1st Széchenyi str. 7666 Pogány, Hungary Tel: +36-309-015-488 E-mail: pauler@t-online.hu

  2. Content of the presentation • 3.Material PlanningScenario • 3.1.Organizational background • 3.2.Plot/Preconditions of Scenario • 3.3.Creating/Modifying master data • 3.3.1.Material master: • 3.3.1.1.Modify GigaBike-Name:MM02 • 3.3.1.2.Create MiniBike-Name:MMF1 • 3.3.1.3.Practice: Create BaseBike2-Name:MMB1 • 3.3.1.4.Practice: Create AluFrame-Name:MMR1 • 3.3.2.Bill Of Material (BOM) • 3.3.2.1.BOM Theory • MiracleRoofExample • BOM asMatrix • BOM as Non-fixed levelhierarchy • BOM as Network • BOM asSet of AlternativeNetworks • 3.3.2.2.BOM In SAP • 3.3.2.2.1.Header content • 3.3.2.2.1.Item content  Itemtypes • 3.3.2.2.3.Alternative itemlists • References • ObjectSymbols • GUI Symbols

  3. 3.Material Planning: 3.3.Modifying master: 3.3.1.1.Modify GigaBike-Name • 3.1.Organizational background • Same as Procurement scenario • But Production Planning(PP) is in focus: this will be more realistic, but more difficult: in a big company,usually materials are never ordered manually as it happened in procurement scenario! • 3.2.Plot/Preconditions of Scenario • A lighter version of GigaBike-Name is defined in Company 1000 Plant 1000 Storage 0110 called MiniBike-Name • It has 1pc of BaseBike2-Name • Which has 1pc of AluFrame-Name • Everything will be assembled by work center XYCsava • 3.3.Creating/Modifying master data • 3.3.1.Material master: MM01 • Some of the important views are maintained solely by PP, but others are in shared processing • Some views are general for company, others are plant- related • There are several specialized versions of MM01 to create certain types of material (eg. FERT, HALB, ROH) with preset of the settings below • 3.3.1.1.Modify GigaBike-Name:MM02 • LO|MM|Material master|Material|Change|MM02 Immediately| • 3.3.1.1.1.SCR:Start • DDN:Material = GigaBike-Name • 3.3.1.1.2.SCR:Main • BTN:Organization levels • DDN:Plant = 1000 • DDN:Storage = 0110 • BTN:Select views: Click Click Click MM02: Modify finished material GigaBike- Name Click Click Click Click MMF1: Create finished material MiniBike- Name Click MMB1: Create semi finished material Base- Bike2- Name Click

  4. 3.Material Planning: 3.3.Modifying master: 3.3.1.1.Modify GigaBike-Name • 3.3.1.1.2.1.PP|Plant:TAB:MRP1 • DDN:MRP type = PD(MRP planning):thesystemwilluseBill of Material, BOM (Darabjegyzék) todeterminetheamount and timetoordernecessarycomponentsforthismaterialautomatically: Otheroptionsare: ALT: = No planning: veryseldom, onlyforverycheap, easy-to-storecomponents (eg. smallnails) ALT: = Consumption based: forliquidorgaseous components (eg. glue, lubricants) ALT: = MPS(Master Production Scheduling): planning is made, butonlyatfinishedprod, notatcomponentlevel • DDN:Lot size = EX(Exact order quantity): youproduceexactlytheamountyourcustomerordered. Otheroptions: ALT: = Week lots: atcheap, easy-tostorefinished products, youpre-producewithoutanyorderby an averageweeklyrequirement • 3.3.1.1.2.2.PP|Plant:TAB:MRP2 • DDN:Procurement type = E(Own production). Otheroptionsare: ALT: = F(External): I cannotproducemyselfatall ALT: = X(Both): if I donothavecapacity, Iwillbuyit • TBX:In-house production = 5days:Onlyat own production, Does not depend on order ALT:TBX:Planned delivery time = 5days:Onlyat externalproduction • TBX:Safety stock = 0:If stock goes underthislevel: ALT:Notification issued, at no planning ALT:PlannedProduction Order (Gyártás elrendelés) issued, at ownproduction ALT:Purchase requisition (Beszerzési megrendelés)issued, at externalproduction • 3.3.1.1.2.3.PP|Plant:TAB:MRP3 • DDN:Strategy group=40(Planningwith final assembly) • DDN:Availability check=02(Individual requirement) Click MM02: Modify finished material GigaBike- Name MMF1: Create finished material MiniBike- Name Click Click Click MMB1: Create semi finished material Base- Bike2- Name Click Click MMR1: Create raw material Alu- Frame- Name Click Click Click Click Click Click

  5. 3.Material Planning: 3.3.Modifying master: 3.3.1.2.CreateMiniBike-Name Click Click • 3.3.1.2.Create MiniBike-Name:MMF1: We will define a cheaper version of GigaBike-Name with alu-frame. We copy most of master data referencing to GigaBike-Name • LO|MM|Material master|Material|Create(special)|MMF1 Finished product| • 3.3.1.2.1.SCR:Start • DDN:Material = MiniBike-Name • DDN:Industry = Mechanical engineering • DDN:Reference = GigaBike-Name • 3.3.1.2.2.SCR:Main • 3.3.1.2.2.1.BTN:Organization • DDN:Plant = 1000 • DDN:Copy from plant = 1000 • DDN:Storage = 0110 • DDN:Copy from Storage = 0110 • DDN:SalesOrg = 1000 • DDN:Copy from SalesOrg = 1000 • DDN:Channel = 10 • DDN:Copy from Channel = 10 • 3.3.1.2.2.2.BTN:Select views: • Basic1-2, Sales1-2-G, MRP1-4, WorkSched, Accounting1-2, Costing1-2 • 3.3.1.2.2.3.MM:TAB:Basic1: • DDN:Description = MiniBike-Name • 3.3.1.2.2.4.SD:TAB:Sales general: • TBX:Grossweight = 20KG • TBX:Netweight = 17KG • 3.3.1.2.2.5.FI:TAB:Accounting1: • TBX:Standard price = 2083EUR • 3.3.1.2.2.6.BTN:Additional data • DDN:Language = EN • DDN:Text = MiniBike-Name Click Click Click Click Click MM02: Modify finished material GigaBike- Name Click Click Click MMF1: Create finished material MiniBike- Name Click MMB1: Create semi finished material Base- Bike2- Name Click Click Click Click Click MMR1: Create raw material Alu- Frame- Name Click Click Click Click Click Click Click

  6. 3.Material Planning: 3.3.Modifying master: 3.3.1.3.Create BaseBike2-Name • 3.3.1.3.Practice: Create BaseBike2-Name:MMB1 • LO|MM|Material master|Material|Create(special)|MMB1 Semi finished product| • 3.3.1.3.1.SCR:Start • DDN:Material = BaseBike2-Name • DDN:Industry = Mechanical engineering • DDN:Reference = BaseBike-Name • 3.3.1.3.2.SCR:Main • 3.3.1.3.2.1.BTN:Organization • DDN:Plant = 1000 • DDN:Copy from plant = 1000 • DDN:Storage = 0110 • DDN:Copy from Storage = 0110 • 3.3.1.3.2.2.BTN:Select views: • Basic1-2, • Sales1-2-G, • MRP1-4, • WorkSched, • Accounting1-2, • Costing1-2 • 3.3.1.3.2.3.MM:TAB:Basic1: • DDN:Description = BaseBike2-Name • 3.3.1.3.2.4.SD:TAB:Sales general: • TBX:Grossweight = 15KG • TBX:Netweight = 13KG • 3.3.1.3.2.5.FI:TAB:Accounting1: • TBX:Standard price = 1250EUR • 3.3.1.3.2.6.BTN:Save MM02: Modify finished material GigaBike- Name MMF1: Create finished material MiniBike- Name MMB1: Create semi finished material Base- Bike2- Name MMR1: Create raw material Alu- Frame- Name

  7. 3.Material Planning: 3.3.Modifying master: 3.3.1.4.Create AluFrame-Name • 3.3.1.4.Practice: Create AluFrame-Name:MMR1 • LO|MM|Material master|Material|Create(special)|MMR1 Raw material| • 3.3.1.4.1.SCR:Start • DDN:Material = AluFrame-Name • DDN:Industry = Mechanical engineering • DDN:Reference = CarbFrame-Name • 3.3.1.4.2.SCR:Main • 3.3.1.4.2.1.BTN:Organization • DDN:Plant = 1000 • DDN:Copy from plant = 1000 • DDN:Storage = 0110 • DDN:Copy from Storage = 0110 • 3.3.1.4.2.2.BTN:Select views: • Basic1-2, • Purchasing, • MRP1-4, • Accounting1-2, • Costing1-2 • 3.3.1.4.2.3.MM:TAB:Basic1: • DDN:Description = AluFrame-Name • 3.3.1.4.2.4.FI:TAB:Accounting1: • TBX:Moving price = 208EUR • 3.3.1.4.2.5.BTN:Save MM02: Modify finished material GigaBike- Name MMF1: Create finished material MiniBike- Name MMB1: Create semi finished material Base- Bike2- Name MMR1: Create raw material Alu- Frame- Name

  8. Content of the presentation • 3.Material PlanningScenario • 3.1.Organizational background • 3.2.Plot/Preconditions of Scenario • 3.3.Creating/Modifying master data • 3.3.1.Material master: • 3.3.1.1.Modify GigaBike-Name:MM02 • 3.3.1.2.Create MiniBike-Name:MMF1 • 3.3.1.3.Practice: Create BaseBike2-Name:MMB1 • 3.3.1.4.Practice: Create AluFrame-Name:MMR1 • 3.3.2.Bill Of Material (BOM) • 3.3.2.1.BOM Theory • MiracleRoofExample • BOM asMatrix • BOM as Non-fixed levelhierarchy • BOM as Network • BOM asSet of AlternativeNetworks • 3.3.2.2.BOM In SAP • 3.3.2.2.1.Header content • 3.3.2.2.1.Item content  Itemtypes • 3.3.2.2.3.Alternative itemlists • References • ObjectSymbols • GUI Symbols

  9. We build roofs with:2pcs seat beams 0.15×0.15×6.3m 40m2 aluminium foil radiation shield 2m×1mm 49pcs 0.9×0.9×0.05m hard polyfoam heat insulation 40m2 polyethylene water insulation 2m×0.5mm 1pcs ridge beam 0.15×0.15×6.3m 16pcs rafters 0.15×0.15×5.4m 2pcs fascias 0.15×0.05×6.3m 16pcs collars 0.15×0.05× ×2.7m 16pcs bolts 25 ×300mm 3.3.2.Bill Of Material: 3.3.2.1.Definition: Miracle Roof Example 0.6 1.8 2.7 3.3 6.3 6.6 5.4 • 18pcs • roof bat- • tens 0.05× • 0.025×6.3m • 144pcs screws • 5×100mm • 7pcs drip edge 0.1×0.1 • ×2m (with 0.2m overlap) • 70m2 safety foil 2m×0.5mm • 3.5pcs ridge flashing 0.1×0.1× • ×2m • (with 0.2m • overlap) • 12pcs water ducts • L-plates 0.1×0.1×2m • (with 0.2m overlap)

  10. 3.3.2.Bill Of Material: 3.3.2.1.Definition: BOM as Matrix • Bill Of Materials, BOM (Darabjegyzék): it records the buildup of the finished product from predefined Materials (Cikk) as Components (Komponens). It is used for 2 purposes: • To aggregate total requrement from components for 1 product unit, which enables us to make Material Requirement Planning, MRP (Anyagszükségleti Tervezés) later • And aggregating direct unit cost of a product from unit cost its components as: DirectUnitCost,EUR = ScAggrRequremt(c),units × UnitCost(c),EUR (4.1) • BOM in simple form is described as a matrix(see MiracleRoofDemoBOM.xls for the exam-ple given above), where rows contain ID, Name, Specifications, Measure unit (eg. pieces, m, m2, kg, etc.), UnitCost, Total requirement of Sub-Components (Al-komponensek), and their detailed requirements at Main Components (Fő-komponensek) in columns. The upper triangle of the matrix is empty, because sub-components cannot contain main-components =SumProduct(MaterialCost,TotalRequirmt) =Sum(Bolts)

  11. 3.3.2.Bill Of Material: 3.3.2.1.Definition:BOM as Non-fixed level hierarchy Part LevelID TotalMethod PartDescr PartDimX PartDimY PartDimZ PartDimUnit PartQuantity PartMUnit SubPartDescr RelationType MainPartDescr PartStatus SupplierID SupplierPartID SupplierLag UnitValue TotalReqirmt TotalValue StartDate TimePeriod 1.8 2.7 3.3 6.6 5.4 • The matrix is a straightforward, easy to under-stand, but practically useless method of hand-ling BOM at complex products/services: • BOM is a huge, but Sparsely(Ritka) filled matrix: • It wastes limited computing resources (most spreadsheet programs can handle max 256 columns in 1 worksheet, which is far from enough in any practical application of BOM • It is not very easy to describe Intermediary products/modules (Félkész-termékek/modu-lok) because of limited number of colums: (Eg. in Miracle Roof Demo, 1 pair of rafters,1 pair of collars and 3 bolts form a structure called A-section, which is repeated 8 times. It would be easier to collect quantities for this module, and simply multiply by 8) • So Enterprise Resource Planning, ERP (Válla-latirányítási rendszerek) handles it as data- base table storing non-fixed level hierarchy: • There we can create unlimited number of levels of buildup with MainPartDesc PartDescmany:1 relations • (Eg.Rafters,Collars, Bolts will the have main part: A-section,A section will have the main part: Miracle Roof Demo, etc.) • As many levels could be confused up, we will introduce a LevelID field, which shows on which level we are

  12. 3.3.2.Bill Of Material: 3.3.2.1.Definition: BOM as Network of Components Part LevelID TotalMethod PartDescr PartDimX PartDimY PartDimZ PartDimUnit PartQuantity PartMUnit SubPartDescr RelationType MainPartDescr PartStatus SupplierID SupplierPartID SupplierLag UnitValue TotalReqirmt TotalValue StartDate TimePeriod • The disadvantage of simple non-fixed level hierarchy BOMs that you have to describe standard components several times (eg. You will need the same type of screws for fixing roof batens, facias, and many other places. So, you have to define them again and again). • However adding som extra fields to the latter table it enables us storing Network(Háló) of components, thus it eliminates redundancy: • Totaling sign (TotalMethod) (eg. negative (-): buying screws will cost you money) • Unique identification name (PartDesc) (eg. Screw) • Size specifications, for its lenght (PartDimX) (eg. 100), diameter (PartDimY) (eg. 5), head height (PartDimZ) (eg. 3) in a specific measure unit (PartDimUnit) (eg. mm) • Its measure unit (MeasUnit) (eg. pieces) • Supplier data (SupplierID) (eg. Iron & Steel Ltd.),its code number in suppliers catalog (SupplierPartID) (eg. SCR100×5), and the lenght of delivery from supplier (SupplierLag) (eg. 7 days) • Status of the part (PartStatus) (eg. Designed: you just negotiating future cooperation with supplier, Active: active delivery, Deleted: supplier messed up, you kill him) • Purchase price of it (UnitValue) (eg. EUR 0.5) in a given (TimePeriod) from (StartDate) as prices may vary in time • You will leave its PartQuantity empty (eg. because you do not know in advance how much screws you will need) • Then, wherever you need screws (eg. PartDesc=Fascias), you just set there their quantity required (PartQuantity) and give a reference to the previously defined standard component (SubPart=Screw). Then system can pick up data from there. • Totaling quantities of parts referencing to screws, the system can compute total requirement of screws (TotalRequirmt) and multiplicate it with (UnitValue) and the sign from (TotalMethod) it can computed (TotalValue) for a given (TimePeriod), how much the total screw requirement will cost you.

  13. 3.3.2.Bill Of Material: 3.3.2.1.Definition: BOM as Set of alternative Networks Part LevelID TotalMethod PartDescr PartDimX PartDimY PartDimZ PartDimUnit PartQuantity PartMUnit SubPartDescr RelationType MainPartDescr PartStatus SupplierID SupplierPartID SupplierLag UnitValue TotalReqirmt TotalValue StartDate TimePeriod • A very nasty disadvantage of single network BOM that it can not handle special type of buildup relations: • Mutually exclusive components (XOR) (Egymást kizáró beépülés) (eg. fascias can be fixed either with screws, or bolts if they are more sizeable, but the 2 methods cannot be mixed) • Optional components (Opcionális beépülés) (eg. putting the last pair roof battons over fascias is optional as upper edge of fascia can also serve as batton) • To resolve this, we will have a RelationType field it the database table to describe special relations • Another disadvantage of single network BOM is lack of parametered Material Requirement Planning (MRP) (Paraméteres anyagszükségleti tervezés) (eg. for 1 Miracle Roof Demo, we need 24 m of water duct L-plates. Therefore, if suppliers have 2m long plates on stock, we need 12 pieces, but if they have only 1.5m plates, we need 16 of them). There are tons of changes of components and design sizes. It is very nasty if we have to recompute thousands of quantities manually after each change. • This can be resolved if quantities can be given as formulas also

  14. 3.3.2.Bill Of Material: 3.3.2.2.BOM structure in SAP 1 • 3.3.2.2.BOM structurein SAP: • Itscontent is storedinsingle-leveled (Egy szintet leíró) records: • 3.3.2.2.1.Header (Fejléc): contains all general settings: • Described material ID • BOM usage • Business applications of BOM • Lot size range where BOM valid • Validity dates • Status of BOM(Planned/Actual/Archived) • 3.3.2.2.2.Items list (Tétel lista): • 3.3.2.2.2.1.ALT: Components (Komponensek): • Raw material ID • Description • Quantity • Control code • Item category: Stock items: fix quantity warehoused material Non-stock items: non-warehoused item No material master record necessary, instead of that it can be stored in material groups Can be ordered directly atProduction Order, PO(Gyártás elrendelés)eg. Consumable goods (Fogyóeszközök) Variable size items: their quantity may change with final product size eg. Area of steel plate Text items: text commentsnecessarytoinstruct assembly workers duringmanufacturingprocess Document items: documentation of manufacturing algorithm Class items:fictivecomponentsgroupingtogethermultiplesimilar materials (eg. allkind of nails (Szög), ifdoesnotmatterwhichonetouse) Intra materials:temporarymaterialsappearingonlyduring manufactiringprocess (eg. by-pruduct (Melléktermék) of a chemical reaction)

  15. 3.3.2.Bill Of Material: 3.3.2.2.BOM structure in SAP 2 • 3.3.2.2.2.Items list (Tétel lista): (Continued) • 3.3.2.2.2.2.ALT: Assemblies (Modulok): • they are materials composed from components according to their own BOM • So multi-level hierarchy can be built from several interlinked BOM records! • The Down-Top Rule (Alulról felfele szabály): We alwaysdefine chain of BOMs from the simplest assembly made from raw materials upwards to finished products! • 3.3.2.2.3.Alternative items list at multiple BOMs: • Different lot sizes of production may require different material composition (eg. if you produce 2 bicycles in a lot you will buy only a small household amount of paint you need to paint them, but if you produce 10000 bicycles in a lot, you can buy a large barrel of paint from diferent manufacturer, which is relatively more cheap!)

  16. References • http://www.sap-img.com/abap.htm • http://erpgenie.com/ • http://help.sap.com/search/sap_trex.jsp • http://sap.ittoolbox.com/groups/technical-functional/sap-abap/

  17. Object Symbols Partner (Partner) Anyag (Material) Sarzs (Batch) Bevitt anyag (Partner material) Készlet (Inventory) Raktár (Deposit) Gyári szám (Serial number) Darabjegyzék (Bill of materials) Szortiment (Sortiment) Anyagmeghatá-rozás (Material Identification) Árazás (Pricing) Engedmény (Allowance) Fizetési mód (Payment Method) Számla (Invoice) Bizonylat (Voucher) Értékesítés támogatás (Sales Promotion) Direkt mail (Direct mail) Ajánlat (Offer) Árazás (Pricing) Rendelés (Order) Validáció (Validation) Szerződés (Contract) Szállítás (Transport) Hitel (Credit) Ütemezés (Scheduling) Szerviz (Service) Vevőszolgálat (Customer Service) Kattintás (Click) Dupla kattintás (Double Click) Adatbevitel (Write) Csak olvasható (Read Only) • Cég (Company) • Gyár (Plant) • Értékesítési szervezet (Sales Department) • Üzletkötő csoport (Sales Representative Group) • Értékesítési integráció (Sales Integration) • Csatorna (Channel) • Földrajzi hely (Geographic Location) • Kiszállítási hely (Delivery Location) • Szállítási mód (Transportation Mode) • Rakodási pont (Loading Point) • Árucsoport (Product Group) • Értékesítési terület (Sales Area) Click Right Click

  18. GUI Symbols • To make GUI usage descriptions more short and straightforward, we will use standardized denotions of GUI controls, which can be nested into each other: • DEF:-definition, • PRC:-process, • ALT:-alternatives, • CYC:-cycle, • -follows, •  -(dis)advantage, • Aaa|Bbb|-Menu/Submenu, • SCR:-Screen, • FRM:-Frame, • ID-UniqueID, • BTN:-Button, • TXB:-Textbox, • DDN:-Dropdown, • TAB:-Page tab, • CHK:-Checkbox (any of them can be checked) • RAD:-Radiobox (one can be checked only), • LIN:-Tableline, • KEY:-Hotkey, • WRN:-Warning box • ERR:-Errorbox

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