Production Planning

Business IBM Business Consulting Consulting Services Services
S)* Overvie& + *ro!uction *lanning
Disclaimer (Optional location for any re uire! !isclaimer copy" #o set !isclaimer$ or !elete$ go to %ie& ' Master ' Sli!e Master(
Copyright IBM Corporation 2005
Contents
Introduction to Production Planning Master Data Process Scenarios Critical Reports
)!itya Birla Management Corporation ,imite! + Corporate I#
Intro!uction to *ro!uction *lanning
The Integrated Supply Chain
Product low Demand
Supplier
Purchasing
Production
Distri!ution
Retailing
Customer
inancial Control
"uman Resources
Supply Chain Management:
The delivery of enhanced customer and economic value through management of the flow of physical goods and associated information.
Information low
Overvie& of *ro!uction *lanning
Sales Info System
Procurement
Planning process ./ecution process
orecasting
Sales - %per Planning
Demand Mgmt
MRP
Process %rder
%rder Settlement
C%,P*
Inventory Capacity Planning Production Master Data #e.g. $%M& Routing& 'or( Center)
Costing
Reporting and *nalysis #e.g. +ogistics Information System& %rder Information System)
5
Master Data in *ro!uction *lanning
PP0PI vs. Standard PP
PP0PI Resource
Standard PP 'or( Center
$%M Master Recipe Routing Production %rder
Process %rder
'
Master Data
. Material Master
Material Master
#he material master file contains the !ata an! parameters that !efine each material use! in an S)*" #he information relevant to a particular organisational unit for a specific material is !efine! in a separate vie& of that material" 0ey #erms
-
Batch Management M#O M#S Bac1flush %ariant Configuration M2* Controller %aluation class
2iews in a Material Master
$asic Data
Sales
Storage
Classification
Purchasing
Purchase %rder Te/t *ccounting
Inventory Quality Sales Information Production Information Desc:---------------------
Product 0 *d1!!oot1fs
oreign Trade 'or( Scheduling Plant,Storage +ocation Stoc(
MRP
orecasting
Costing
30
Material Type , Industry Sector
Chemical Industry
Inventory Purchasing Desc:---------------------
Retailing
Raw Material 0 $lade0sm
Inventory Purchasing Desc:---------------------
Spare Part 345

inished Product 0
*d1!!oot1fs
Semi0 inished 657

33
Material Type
Price Control Indicator ield Reference "*+$ 'hat 2iews are *llowed8 M*T.RI*+ T=P. R%" Production %rders *llowed8 "*'* Should ;uantity, 2alue <pdating !e Done in 2al. *rea8 *ccount *ssignment .RT Default Item Category :roup
9um!er Range 9um!er *ssignment 4 Internal 4 ./ternal
32
Material Master : Review

6actors that can influence fiel! selection for material master recor!s are7
-
#ransaction *rocurement in!icator Material type *lant In!ustry sector
#he material master is the central master 8recor!9 for logistics" ) material master is :ro1en !o&n into vie&s" Data in the material master is !efine! at !ifferent organisational levels inclu!ing client$ plant$ storage location$ etc" #he material type controls such things as num:er assignment an! &hich vie&s are allo&e!" #he in!ustry sector controls fiel! selection in the material master" Material statuses can :e !efine! to control processing allo&e! for a given material$ some e;amples inclu!e7
-
<hether a pro!uct can :e purchase! <hether a pro!uct can :e use! in a pro!uction or!er <hether inventory movements can :e carrie! out for a material
35
Material Master: Review
Some of the things a material type controls inclu!e7

-
<hat vie&s can :e maintaine! 6iel! selection =um:er range %arious !efault !ata7 price control$ item category group
#he :ase unit of measure is the unit in &hich the stoc1s of the material are manage!" )ll uantities &hich are entere! in other units of measure are converte! to the :ase unit" Other units of measure inclu!e7 or!er unit$ unit of issue$ sales unit$ an! !elivery unit" Data in the material master can :e change! imme!iately or the change can :e planne! an! then activate! on a future !ate" Changes can :e ma!e &ith or &ithout reference to a change num:er from >ngineering Change Management" ) material can :e !isplaye! in its current status or in its status on a 1ey !ate"
3-
Material Master: Review
?ou shoul! :e a:le to7

-
Descri:e the master files use! in ,ogistics" 0no& &hat a material type controls" 0no& &hat an in!ustry sector controls" @n!erstan! the relationship :et&een the :ase unit of measure an! other units of measure" @n!erstan! the !ifferent &ays in &hich a material can :e change!" 0no& ho& to create a material"
35
Master Data . Bills of Material
Definition of a $ill of Material
* !ill of material is a complete& formally structured list of the components which ma(e up a product or assem!ly. The list contains the description and o!>ect num!er of each component together with the ?uantity and unit of measure.
3A
$%M Structure
".*D.R + Status + Te/ts + <sage ... IT.M +Co0product +Scrap +MRP data +Recursiveness ...
3B
Integration of BOMs in the System
Master Data
+Material +Documents +$ill of material +Recipes +Resources +Cost centers
Materials Management
+Purchasing +'arehouse
Sales and Distri!ution
$%M
+Sales order
Plant Maintenance Controlling

+Product costing +<nit costing +Standard costing +Maintenance plan +Maintenance order
Production
+Material re?uirements planning +Planned orders +Production orders
'
$%M Categories
Material Master Record
Material $%M
Material
.?uipment Master Record
.?uipment $%M
.?uipment
Document
Document Information Record
Document $%M
Document
20
2alidity Period
S*P *:
5
3@@4
S*P *:
3@@4
2alid from
2alid to
Validity Period
23
Structure: *utomo!ile
+ow0 +evel Code B
"yundai ./cel MA0"R"B3
'indow C Metal rame MA05BBA4
Seat
'heel
3
MA0+.*T" MA045D7@
:lass MA0:*$.+
Chrome rame MA0"RB3
+eather a!ric MA0+53
Padding
Rim
"u!cap MA045 D7@"
MA0+P53
MA045D7@R
22
$%M <sage
Construction, Technical Data
Costing,Price
$%M
Plant Maintenance, +ocation Data Production, %perations

Sales %rder
Sales, %rder ;uantity

25
Item Categories
Stoc( Items 9on0Stoc( Item
+ 9
2-
Master Data
. 2esource
Resource , 'or( Center
'
Primary unctions of a Resource

Resource
Default 2alues for Tas( +ists Tas( +ists
Costing Data Costing 5456&BB 35BB&BB 356&BB 6B6E&BB
Scheduling Data and *vaila!le Capacity

+ead Time Scheduling& Capacity Planning
'
T"*I R*=%9 P<$+IC C%.& +TD.

2ISC%S. PR.P*R*TI%9
SLURRY PRESS ALK. CELL SILO
CAUSTIC SODA 25% WATER
SHREDDER ROLLER WAGNER FILTER
MATURING DRUM
EXHAUST
PROCESS STARTS HERE
SCREW CONVEYER PRESS LYE TANK COOLING DEVICE

CHILLED WATER
LYE AND WATER CARBON DISULFIDE
HOT WATER
SLURRY MIXER SILO BLOWER HOMOGINIZER
AIR
ROTARY VALVE XANTHATOR DRUM
PULP FEEDER CONVEYER
FLASH DEARATOR DISSOLVER TANK VACUUM PUMP

CHILLED WATER
CHILLED WATER
DISINTEGRATOR
P2 TANK
P2 TANK
INTERMEDIATE TANK RECEIVING TANK RECEIVING TANK
SPINNING VISCOSE TANK
CHILLED WATER
PRE FILTER (TWO STAGE

REJECT
FINAL FILTER
REJECT
TO SPINNING MACHINE
2B
Resource <sage
%nly Routings
Routing
%nly 9etwor(s
9etwor(
%nly Maintenance Tas( +ists
Maintenance Tas( +ist
Master Recipe and Process %rder
Master Recipe - P%
*ll Tas( +ist Types

'
*ll Tas( +ist Types

Resource Data
$asic Data
$asic Data
4 9ame and description 4 Standard value (ey 4 Performance efficiency rate 4 Control (ey 4 Standard te/t (ey 4 'age data 4 Cost center 4 *ctivity types 4 ormula (ey 4 Capacity category 4 Interoperation times 4 ormula (ey 4 *vaila!le capacity 4 ormula (ey 4 <tilisation
Default 2alues for Tas( +ists Costing Data and "R System Data Scheduling Data
Default 2alues
*ssignment
Scheduling
Capacity Data
'
Capacity
Relationship $etween Resource and %peration
Default 2alues
%peration 3B *ctivity Types
Standard 2alue Fey Control Fey

'
.valuations #Reports)
Resource +ist
Cost Center *llocation
Resource Capacity
Resource "ierarchy Resource 'here0<sed +ist

'
Capacity
Process Industries
Chapter 5 0 Resources
**.*I uses a resource in the same &ay that stan!ar! ** uses a &or1 center" #hey share the same :asic structure regar!ing :asic !ata$ !efault !ata$ sche!uling$ capacity$ an! costing" 2esources are allocate! to resource categories accor!ing to their functions" #his category controls the fiel! an! screen selections for the resource" #he resource usage 1ey !etermines the tas1s list types in &hich you can use the resource" 2esources can :e groupe! in resource hierarchies for capacity planning purposes" *re!ecessor an! successor relationships of resources can :e esta:lishe! in resource net&or1s"
'
Master Data
. Master 2ecipe
Master Recipe 0 Definition
Definition
* recipe descri!es the processing steps re?uired to produce a material or provide a service in the process industries
"eader Structure %perations Phases
'
Master Recipe Structure
Recipe "eader
Resource
Material +ist
%perations
Resource *llocations
Phases
Material Components Relationships
Mat
----- ------ ----------- - ----- -------- ------- ---------
Material
Inspection Characteristics
'
.lements of a Recipe
"eader Recipe Procedure
Resource Re?uirements
Materials
'
Recipe "eader Information
"eader
Resource Re?uire0 ments Recipe
4 Resource 9etwor( 4 Recipe <sage 4 Recipe Status 4 Planner :roup 4 Charge ;ty Range 4 *dministrative Data
Procedure
Materials
'
Recipe Procedure #3)
"eader
Resource Re?uire0 ments
%p. 3BB
Recipe Procedure Materials
Ph. 33B Ph. 35B Ph. 53B Ph. 55B
%p. 5BB
'
Process Industries
Chapter 7 0 Master Recipe %verview
**.*I uses a master recipe in the same sense that stan!ar! ** uses a routing" #he master recipe !escri:es the pro!uction of materials &ith !etaile! information on the process" It is the :asis for the process or!er" Multiple master recipes can :e com:ine! in recipe groups to represent the possi:le alternative process flo&s" 2ecipes are not material !epen!ent" ) master recipe contains an operation overvie& (routing( as &ell as a material list (BOM("
'
Production 2ersion of Master Recipe
ABBBBB66 , 3
Recipe :roup Recipe ... Plants& Material Production 2ersion Material $%M
M3
M5
233 235 ... 253 255 ...
$33 $35 ...

G 2alidity on a time a/is
'
Process Industries
Chapter 6 0 Master Recipe 0 Material +ist
#he material list is a single level representation of the materials re uire! in the manufacturing process" #he material list can contain multiple input materials as &ell as multiple output materials (i"e" finishe! pro!ucts$ co.pro!ucts$ :y.pro!ucts( #he material list can :e pro!uct specific or process specific" )n intra.material is a material &ithout a master recor! that only e;ists temporarily :et&een process units" Once a material list (BOM( is create! or change! through a master recipe$ it can no longer :e change! via the BOM transaction"
'
Phases
%peration 3B
Mat
----- ------ ----------- - ----- -------- ------- ---------
Material
Phase 3B,3B Pre$urning
Phase 3B,5B $urning
%peration 5B
Phase 3B,7B Cooling
'
%perations,Phases,Relationships
%peration 3B
Phase 33 Trnsprt
Phase 35 :rinding
Phase 37 Storage
Phase 53 ./traction
Phase 55 Preheating
%peration 5B Time
'
Default 2alues for Recipes from Resources
Data Defined for Resource Default 2alues
*ctivity Types
%peration 3B
Standard 2alue Fey Standard 2alue 2erification
'
Pre0Planning ;uality Inspections During Production
Recipe "eader
;M Data
%peration,Phase
'
*rocess Or!er *rocessing
%!>ectives
)t the en! of this session ?ou &ill un!erstan! the *rocess or!er processing functionality in **.*I 7 <hat is *rocess or!er <ays of creating *rocess Or!ers *rocess Or!er Structure Operations$ Component C *hases
-B
*pplication0Independent unctional Data low
Process %rder Management Independent Re?uirements

Sales,Distri!ution Sales Re?uirements Material orecast Preliminary Planning
:oods Issue
MRP
Rough0Cut Capacity Planning Planned %rder Conversion to Process %rder
Process %rder
Detailed Planning Planned %rder Conversion to Process %rder Costing
'
Process %rders and %rganisational Structures
%rganisational <nits
Company Controlling *reas Sales %rganisations Purchasing %rganisations
Company Codes 4 Demand management 2aluation *reas Plants Storage +ocations,$atches,Special Stoc(
'
4 MRP 4 Process order 4 Production control 4 Inventory management

'ays of Creating a Process %rder
Creation with Material Master Recipe %R Creation with Planned %rder %ne Planned %rder Process %rder Process %rder
Manually Create 'ithout Material
Creation with Several Planned %rders Several Planned

'
%rders Process %rders

Creating a Process %rder,Selecting a Master Recipe
Criteria for the Selection of a Master Recipe Initial Screen Material %rder Type Main "eader ;uantity %rder Start Date
Material,recipe allocation Charge ?uantity Fey date <sage Status
%peration %verview
Selection Criteria: Criteria
<sage Status of the Master Recipe

'
Process %rder Structure
P%
P% "eader
Material +ist %perations Resource *llocations Phases Material *llocations Relationships Costs Inspection charact.
'
Mat
----- ------ ----------- - ----- -------- ------- ---------
Material
Process %rder "eader
P%
Definition
Product or service to !e produced with the recipe
P% "eader
%perations Phases Resource *llocations

Mat
%rigin
Manually Master recipe
Material Components Costs Relationships

'
----- ------ ----------- - ----- -------- ------- ---------
Material
"eader Data in the Process %rder
4 Material and,or service
4 :oods receipt control
Main "eader 4 Dates
4 ;uantities 4 %rder type,num!er
:oods Receipt, 2aluation
4 2aluation type
or $%M,Material list or costing or master recipe
4 Settlement rule
Master Data
4 4
*ccount *ssignment
4 Settlement receiver 4 Percentage rates
4 .ntered,changed !y
*llocations
4 Plants,!usiness areas 4 *ssignments 4 MRP controller
Date, ;uantity %verview
4 Deadline monitoring 4 ;uantity monitoring
'
Material Components
P%
Definition
Materials necessary to carry out an operation #phase) or manufacture a product
P% "eader
%perations Phases
$%M Item Categories

Stoc( material 9on0stoc( material Raw material Te/t #components) Intra material Co0products
Resource *llocations
Mat
----- ------ ----------- - ----- -------- ------- ---------
Costs
Material
Material Components Relationships
%rigin
'
Material Component Data in the Process %rder
4 Material num!er Component 4 Re?uirement ?uantity %verview Process %rder 4 Re?uirements date 4 Material description
4 Reservation 4 Item category 4 $ul( material indicator
:eneral Data 4 Re?uirement ?uantity on Components 4 *vaila!le ?uantity

4 ;uantity issued 4 Missing parts
4 Material num!er Component %verview %peration 4 Material description 4 Re?uirement ?uantity 4 Re?uirements date Charge Calculation
'
+ong Te/t
4 Te/t editor
4 ormulas 4 ;uantities
%perations and Phases
P%
Definition
Individual step in the processing of a process order
P% "eader
%perations Phases Resource *llocations Material Components Relationships

'
Mat
%rigin
----- ------ ----------- - ----- -------- ------- ---------
Material
Costs
%peration and Phase Data in Process %rders #3)
%peration, Phase %verview

%perations Superior operation #for phases) Resource Status information #over0 view in two lines only)
Standard 2alues
Standard values per operation $ase ?uantity %peration ?uantity Duration
%peration Dates
Confirmed dates .arliest,latest dates
'
%peration and Phase Data in Process %rders #5)
Material *llocation
;uantities,units of meas. Material availa!ility $atch specification
;uantities,*ctivities
Confirmed ?uantity %peration ?uantity Confirmed activities Services to !e confirmed
Type Time #a!solute,in percent)
Relationship s
unctions
Release Create control recipe Change status
<ser ields
ields depending on (ey word
'
Cost %!>ects #*ccount *ssignments)
P%
P% "eader
Definition
Receiver of the process order costs #settlement receiver)
%perations Phases Resource *llocations

Mat
Types
Material Cost center C% process order
----- ------ ----------- - ----- -------- ------- ---------
Costs
Material Components
Material
%rigin
Manually *utomatically
Relationships
'
Process %rders Processing

*lanne! Or!er *rocess Or!er Creation *rocess Or!er 2elease Material <ith!ra&al *rocess Or!er >;ecution MM Completion Confirmation In&ar! Stoc1 Movement *rocess Or!er Settlement SD )rchive D Delete 6I CO
'
Integration $etween Process %rder and Inspection +ot
Master
%peration 3 Inspection Characteristics Phases Inspection Characteristics
----- ------ ----------- - ----- -------- ------- ---------
Create
Inspection +ot
Material Master ;uality Management
Material Component Inspection Characteristics <nplanned Inspection Characteristics

'
Recipe
Process Industries 0 Process %rder

*rocess or!ers are the e uivalent of pro!uction or!ers in stan!ar! **" *rocess or!ers are create! at the plant level" *rocess or!ers can :e create! manually using a material$ manually &ithout a material$ or from one or more planne! or!ers generate! in M2*" <hen a process or!er is create!$ the system typically loo1s for an appropriate master recipe" In CustomiEing you can !etermine &hether a master recipe must :e selecte!$ &hether the selection shoul! :e automatic or manual$ an! &hat the search criteria shoul! :e in the case of automatic selection"
'
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Business IBM Business Consulting Consulting Services Services

S)* Overvie& + *ro!uction *lanning

Copyright IBM Corporation 2005

)!itya Birla Management Corporation ,imite! + Corporate I#

Business IBM Business Consulting Consulting Services Services

Intro!uction to *ro!uction *lanning

Copyright IBM Corporation 2005

The Integrated Supply Chain

Product low Demand

Supply Chain Management:

Overvie& of *ro!uction *lanning

Sales Info System

Planning process ./ecution process

Sales - %per Planning

Business IBM Business Consulting Consulting Services Services

Master Data in *ro!uction *lanning

Copyright IBM Corporation 2005

PP0PI vs. Standard PP

Standard PP 'or( Center

$%M Master Recipe Routing Production %rder

)!itya Birla Management Corporation ,imite! + Corporate I#

Business IBM Business Consulting Consulting Services Services

Copyright IBM Corporation 2005

)!itya Birla Management Corporation ,imite! + Corporate I#

2iews in a Material Master

Purchase %rder Te/t *ccounting

Inventory Quality Sales Information Production Information Desc:---------------------

oreign Trade 'or( Scheduling Plant,Storage +ocation Stoc(

)!itya Birla Management Corporation ,imite! + Corporate I#

Material Type , Industry Sector

Raw Material 0 $lade0sm

Inventory Quality Sales Information Production Information Desc:---------------------

Inventory Purchasing Desc:---------------------

Spare Part 345

Semi0 inished 657

9um!er Range 9um!er *ssignment 4 Internal 4 ./ternal

)!itya Birla Management Corporation ,imite! + Corporate I#

Material Master : Review

#ransaction *rocurement in!icator Material type *lant In!ustry sector

)!itya Birla Management Corporation ,imite! + Corporate I#

Material Master: Review

Some of the things a material type controls inclu!e7

)!itya Birla Management Corporation ,imite! + Corporate I#

Material Master: Review

?ou shoul! :e a:le to7

)!itya Birla Management Corporation ,imite! + Corporate I#

Business IBM Business Consulting Consulting Services Services

Master Data . Bills of Material

Copyright IBM Corporation 2005

Definition of a $ill of Material

)!itya Birla Management Corporation ,imite! + Corporate I#

)!itya Birla Management Corporation ,imite! + Corporate I#

Integration of BOMs in the System

Sales and Distri!ution

Plant Maintenance Controlling

Material Master Record

.?uipment Master Record

Document Information Record

)!itya Birla Management Corporation ,imite! + Corporate I#

"yundai ./cel MA0"R"B3

'indow C Metal rame MA05BBA4

Chrome rame MA0"RB3

+eather a!ric MA0+53

"u!cap MA045 D7@"

S)* Overvie& + ro!uction lanning

Intro!uction to ro!uction lanning

Overvie& of ro!uction lanning

Master Data in ro!uction lanning

#ransaction rocurement in!icator Material type lant In!ustry sector

T"I R=%9 P<$+IC C%.& +TD.