PP Questions Frequently asked

Q1. What is the difference between by-product and co-product and how do you
differentiate them in a BOM?

Ans1. In case of Co-product costs are settled with a apportionment structure. In case of
By-product the price of this by-product is credited to the order or the material stock
account of the lead material being manufactured.
Co-Product as well as by-product are defined as BOM Components/Items. Both of them
have negative quantities. ( Not all negative quantity items fall under these categories!).
When BOM is created for FERT , you can see one indicator in COMPONENT DETAILS
screen for co-product. You need to define the co-products with this special indicator.

Co product must costing value.

must have a settlement rule and mandatory with main product.
BY product has no costing and settlement rale.
Bulk product....MRP run can not consider the bulk product.

Co product and By-product are both marked in negative Qty in BOM. But the way
differentiate in any industry is that if you are going to accept the orders for a negative
product in BOM and going to plan for it then it has to be Co-Product. Because it has a
cost valuation. If you are not going to plan for it and will sell in open market or discard it
as per situation then it has to be By-product.

Q2. How to configure the planning calendar for the ATP calculation where goods
are shipped every other working day?

Ans: Use Transaction MD25 and define calculation rule for every other working day.
Check the lot size settings in OMI4 and maintain relevant data in MMR.

Q3. What are all the settings done for configuring integration of PP with FICO?

Ans: Assigning of Cost center to work center. Assigning Activity type to work center,
Standard Cost estimate, Costing Run, Order settlement, Product costing.

Q4. Where can you find Read PP Master in SAP (PP)?

You will find in master data tab page of production header data overview, CO02 - Read
PP Master Data. Also from Functions menu you will get Read PP Master Data. This
means that you want the system to re-update the production order with the latest BOM
structure.
Q5. What are some important tables used in PP ?

Ans: For orders:

CUAFVD dialog structure for order headers and items

AFPO - Order item

AFFLD Order: Dialog table for order sequences (AFFL)

MOPER Operation for production order

KBED Capacity requirements

AFRU Order completion confirmations

RESB Reservation/Dependent Requirements
AFFHD Structure of PRT's in orders
SOPER Sub-operations

SAFRU Sub-operation confirmations

SKBED Capacity requirements for sub-operation

MRP table is MDTB.

For PI:
CAUFV - AFVC Operation within an order

AFFT Order Process Instructions

AFFV Order process instruction values

Some other tables of interest:

PLKO, MAPL , PLAS.

Q6. How Requirements ( PIR, Sales Order, Customer Requirement) are reduced
after they are produced?

Ans: Reqmts are reduced automatically after Delivery is made to the Particular Order
(In case of Strategy 11, the PIRs are consumed after the GR for Production Order)

Q7. If you have released Prdn order today and it had gone to shop floor. Next day it
was found that there is shortage of material. What will you?

Ans: Do availability check. You will get missing parts list. Procure those missing parts.
Then confirm the production order. One more thing you can do, change customize setting
so that user cannot release if parts are missing during order release.
Q8. How to insert an inspection checkpoint at the end of an operation?

Ans: If in process sample is to be defined, assign inspection type 03 in the Material

Master. Then create MICs and assign them in the Routings. System automatically
generates the Inspection Lots.

Q9. Can any body explain me why work scheduling view is required for semi
finished and finished products? (Because we'll mention all details in MRP views)?
Ans: We need to maintain working scheduling view in order to make that finished or
semi finished goods available for production as we assign production scheduler and
production scheduler profile in this view, if not maintained conversion of planned order
to production will not be possible.

Q10. What are the cutover activities followed for PP module?

Ans: Production Planning / Master data:

For Production planning, only master data shall be migrated to SAP. In the 1st Stage,
there is no master data. Following is the master data elements relevant for PP:

- Bill of materials
- Routing.
- Work Centres.

Transaction data:
As of the cut off date, ideally there should not be any work in process. All the open
production orders should be closed and semi finished goods should be dismantled and
should be added to Raw materials. This strategy should be followed for all production
orders where lead time to complete the production order is not large.

Since, the production orders are for longer duration and it is not possible to dismantle the
product and add it to inventory, following can be the strategy for migrating the data to
SAP:

- Create a material master for the work in process and set the standard price as the cost
incurred for that product (ie. Work in process)
- Create a bill of material (which will be used only for this production order) including
this material and other materials still to be consumed.
- Create Routing for rest of the production process.
- Bring the work in process material into inventory as of the cut off date.
- Create the production orders in SAP for the Work in process and issue materials to
production order.

Complete the production process after the cut off date of the project.
Q11. Subcontracting In SAP

Below are the steps of subcontracting:

1. For a production material (1001), one raw material (2001) is assigned.

2. Production process of 1001 is having four operations 10, 20, 30 and 40.

3. In this 10, 30, and 40 are internal operations and 20 is external operation (sub-
contracting).

4. To address this, we created a dummy material (non-valuated) and named as 1001-20

(Finished product number + Operation to be performed).

5. This 1001-20 should form part of the component in BOM of 1001. That is BOM of
1001 will have components as raw material 2001 and this dummy material 1001-20. In
routing, assign this dummy material 1001-20 to operation 20.

6. During BOM creation, you should remove costing relevancy for the item 1001-20.

7. In routing, operation 20 is created with a work center (which is external operation

work center) with exteranl operation control key.

8. In operation details, for external processing, assign the info record of external
processing.

9. Info record of external processing has to be created for vendor with relevance to the
operation to be performed externally with vendor. (We are using material group field in
the external processing in routing operation).

10. When create production order with above set up, system will create Purcha Req for
external operation. This has to be converted to purchase order.

11. Now, this dummy material should be kept as 5000 or 6000 in stock using 561. When
Purchase order is raised, required quantity has to be moved to vendor using 541. When
we do goods receipt the stock with vendor shall come down. With this, we can monitor
the material (with dummy material number) stock with vendor (please note we can see
only quantity and not value) .

12. When we do GR for external purch order, we receive only the operation performed.
(So, conversion cost to vendor shall be paid).

13. After ensuring GR is done, order confirmation of operation 0020 has to be done. (here
we capture the quantity and also the valuation of material in production order).
Q12. Can anybody tell me how a process has to be given to subcontracting?
Suppose, I have 3 operations 1) weaving 2) dyeing 3) cutting & packing
if no 2 process (i.e Dyeing) has to be given to subcontracting, what process should i
follow ?

Ans: The following process to be followed for subcontracting.

1. Item code (material master) to be created at the stage of before dyeing.
2. Item code (material master) to be created after Dyeing as subcontracted item.(F30)
3. Bill of material to be created for the material (2) calling for material (1)
4. Info record and source list to be created for material (2) with the corresponding vendor
5. PO to be released for material (2)
6. Along with PO the material (1) to be issued to vendor
7. On receipt of material when GR is made the stock with vendor will get updated.

Q13. Component scrap in percent: Percentage of scrap that occurs during production
of the material if the material is a component.

Use : Component scrap is used in MRP to determine the quantities of components

required. When exploding (BOM), the system increases the required quantities of the
component by the calculated scrap quantity.
Example
Required quantity 200 pieces
Component scrap 10%
Scrap quantity 20 pieces
Therefore, 220 pieces are required.

Operation scrap: Scrap that is expected in one operation for the quantity of a component
to be processed.

Use: This entry is used to override the assembly scrap for materials of high value.
If operation scrap is maintained, you avoid the situation whereby too much of the
material is planned in MRP for the components of subsequent operations.
Procedure: If you make an entry for operation scrap, you must also select the operation
scrap net indicator (Net field).

Assembly scrap: Percentage scrap that occurs during production of the material if the
material is an assembly.
Use
The assembly scrap is used in materials planning to calculate the lot size of the assembly.
The system increases the quantity to be produced by the scrap quantity calculated.
Procedure: If the material is an assembly, specify the percentage scrap as required.

Examples
If the quantity to be produced is 200 pieces and you specify an assembly scrap of 10%,
you are reckoning with a scrap quantity of 20 pieces. As a result,220 pieces are produced.
Net Requirements Planning (10)

This planning strategy is particularly useful in mass production environments; it is often

combined with repetitive manufacturing. You should choose this strategy if you want
production to be determined by a production plan (Demand Management) and if you do
not want sales orders to influence production directly. One of the most important features
of this planning strategy is that it enables you to smooth the demand program.
Examples from Industry
* Strategy 10 is used in the customer packaged goods industry because it is possible to
plan the demand for ice cream very easily, for example, while a single order should not
affect production.
* Strategy 10 is also used for products with seasonal demand where production needs
to be smoothed.
Prerequisites
You must maintain the following master data for the finished product:
* Strategy group 10 on the MRP screen.
* Item category group (for example, NORM) on the Sales Organization screen.
* Availability check field in Customizing so that you perform an availability check
without replenishment lead times (in the standard system, you must enter 02 here).

Gross Requirements Planning (11)

The make-to-stock strategy gross requirements planning is particularly useful in mass

production environments; it is often combined with repetitive manufacturing. This
strategy is particularly useful if you need to produce, regardless of whether you have
stock or not. For instance, steel or cement producers might want to use this strategy
because they cannot shut down production; a blast furnace or a cement factory must
continue to produce, even if this means having to produce to stock.
This strategy is also frequently used if there is a Material Requirements Planning system
in a legacy system that needs to be linked to R/3 which serves as a production execution
system. The legacy system calculates a specific production plan, which has to be
executed, regardless of the stock situation in R/3.
Examples from Industry
Heavy-duty industries such as steel manufacturing (blast furnace) and the cement
industry.
Prerequisites
You need to maintain the following master data for the finished product:
* Maintain strategy group 11 on the MRP screen.
* Set the Mixed MRP indicator to 2 on the MRP screen.
* Maintain the item category group (for example, NORM) on the Sales Organization
screen.
* Maintain the Availability check field so that you perform an availability check
without the replenishment lead time (checking group 02 in the standard system).
What's the difference between process order and production order?

These are differences between REM/Discrete/ and Process manufacturing.

REM:

Production is based on the planned orders.

Planning and manufacturing is based on period wise.
Normally single products being manufactured for a longer period of time .
Normally production are carried out on a single production line (repetitively).
Product costing and settlement is done through product cost collector.
Planned orders are known as Run schedule quantities. Means quantity which is being
manufactured in a certain period.
Planned orders are sufficient to carry out production at shop floor area.
Master data includes production version, product cost collector and rate routing.
Materials will be issued anonymously to production lines means without reference to
planned orders.

Discrete:

Production based on the production orders

Planning and manufacturing depends on production orders.
Products changed frequently.
Production is carried out on different production lines (scattered- discrete).
Product costing and settlement is done through production orders.
Planned orders are stock type later converted into production orders.
Production orders are required.
Production version and product cost collector are not mandatory.
Materials will be issued always with reference to production orders.
Master Data includes Routings and BOMs.

PROCESS:

1) Batch Oriented process manufacturing.

2) Process order based manufacturing. you copy the process described in a master recipe
and adjust it to the actual production run.
3) It is primarily designed for the chemical, pharmaceutical, food and beverage industries
as well as the batch-oriented electronics industry.
4)The integrated planning of production, waste disposal, and transport activities within a
plant.
5) Master Data includes Master Recipes and resources.
6) Process Management: In this area, you coordinate the communication between PP-PI
and process control during the execution of a process order.

FEATURES
..............................................PP ........PP-PI **
availability check for PRT- Yes( PP) No(PP-PI) **
Order splitting................... Yes( PP) No(PP-PI) **
Trigger point................. ....Yes(PP) No(PP-PI) **
Order approval.... .............NO ( PP) Yes(PP-PI) **
process management
( control receipe and
PI sheet)............................ NO ( PP) Yes(PP-PI) **
digital signature..................NO ( PP) Yes(PP-PI) **
material qty calculation....... .NO ( PP) Yes(PP-PI) * *

PP(discrete )  As the name describes this is used where one work center is used for
many orders and we need to schedule the orders depending on the requirement. Best
example is in a engineering industry lathe can be used for many purpose, hence one order
may be for a chair or other order may be for a table, in both cases say the leg is
manufactured in lathe. Hence both order is routed through lathe. Both end product is
different. For implement…it is not complicated, but not as simple as Repetitive

PP-PI  This is used mainly in a process industry where in process is usually batch
managed and we need to use PI sheet (operates enters the production and consumption,
shift in charge to approve the qty and GR/GI happens in background), and the batch has
to be authorized before confirming the product. This is usually in a pharma industry. For
implement…it is complicated if PI sheet is involved
Repetitive manufacturing This is used in a industry where product is continues and
only one product is produced for long duration. No much controls are required. For
implement…it is simple

What is Alternative BOM?

Header material having alternative component with either same or different item data.

Q. What is COIS?

COOIS is Production order information system.It give the detail information about
production order.We can generate various production report with help of differant option
given in a List and Layout.

Q.How costing is done in pp or how u will know the cost of a product which is
manufactured in our plant?

There are different methods of doing product cost estimate. e.g., Std. cost estimate or
variable cost estimate.

From the BOM and routing the total no of components used for that product is calculated
using the price mentioned in accounting views and from routings each operation cost is
Calculated from the activity types defined in work-centers. Collectively this cost is
displayed in Product cost estimate as cost of manufacture in the T.code CK 11n.

In case of variable cost, all the variables are considered for the production order and the
actuals are considered for calculating the product cost. It is also possible to have cost
estimates and actual costs from which we can find the variances.

Q Do you need a complete history of your BOM changes?

If you want to view all history of BOM Change plz refer T-Code CS80 it include both
short text & long text.

Q How is sender and receiver when we settle the Process order in MTO?

After completion of the Order, we settle the order, when we settle it the order is settled to
a material incase of a MTS scenario and to sales order incase of a MTO scenario.

Here you need to settle it against a Cost center,

Settlement profile in the order type controls it.

Settlement profile you need define sender and receiver, sender for a Order is always order
and receiver is Cost center.

Q What are the main controls in MRP?

Q. What is back-flush? What are the benefits of back flush?

Backflush is the automatic process in which system perform the auto Good Issues
resulting into saving in the manual interference and thereby cost. We activate it in
Operation overview, Workcenter and Material master. But setting in the material master
has high priority.

Q. Can any body tell me integration between pp with fi,mm,sd.?

PP intergrates with all the modules and basic integration.

between MM is master data (material master record). For SD while delivering the stock,
sales order consumes the stock(va01) And fico calculates the cost of machine and
manpower and all other cost including material costs

What do you mean by Production Support,with some examples?

What is milestone confirmation ?

What structure do your BOMs have? How many levels are there? How many components
are there on each level?

Q. What are different MRP types?

The differnt types of planning procedures are

1. MPS - Master Production Scheduling.

2. MRP - Material Reuquirements planning.
3. Consumption based planning - (there are two types)
i) Forecast based planning.
ii) Reorder point planning
a) Manual Reoderpoint planning.
b) Automatic reorderpoint planning

1. MRP - PD: -

2. Consumption based planning: -

a. Re order point planning: - When the stock level reaches the reorder point set taking
RLT into consideration, the procurment order is created automatically without onsidering
PIR or CIR.
b. Forcast based planning: - here procurment is based on forecat.
c. Time based planning:- Here procurment is done in regular interval.
3. MPS: - this is set for critical material which are excluded from MRP.

4. NO MRP: -

5. MRP in external planning: - This is set when an additional planning tool like APO is
set and planning is done in APO.

What are the tools used in SAP PP support project?

what is the diff. between NETCH,NETPL AND NEUPL ?

what's the difference between MRP vs MPS?

What r different reduction strategies in SAP PP?

why their is need of production version?

Q. How you can implement new production order type?

1. Define order type - OPJH

2. Assign serial number
3. Order type dep. parameter - opl8
4. Scheduling parameter - opu3
5. Confirmation parameter - opk4
6. Availability check control – opjk

Q. what is lead time, planning time, planning fence time?

Lead Time :: It is the total time required, by which product is ready for use
(manufacturing time +inspection + handling.. etc)

Planning Time Fence: It is the time horizon which can restrict the application area of the
MRP. that is , there will not be automatic changes to the Dates and quantities within this
Planning time fence ,during planning run. It starts from current date to the number of
days in future specified as planning time fence as in work days.

Example >>> suppose , today is 13 January, and your planning time fence is 5 days ,
then there will not be any automatic changes during planning run between 13 Jan-to 18
January. And one day before the planning time fence , that is on 17 January in our
example ,the planned orders are automatically get confirmed .

Q What happens at the background when MRP runs takes place mention steps?

1. Check planning File Entry

2. Net requirements Calculation
3. Lot size calculation
4. Scheduling
5. Source determination
6. BOM explosion

1. System checks the Planning file entry.

2. System do the net requirement calculation by considering lot size, scrap, rounding
profile.If the stock is less system create procurement proposal.

3. During the net requirement calculation system considers plant stock, firmed receipts,
issues. Safety stock also considered.

4. If the result is negative qty system will create planned or procurement proposal.

5. Scheduling is carried out for planned or procurement proposal.

6. System explodes BOM.

Q QM Flow how it occurs?

Q Net ID Indicator during the scrap?

Q PI sheets and types?

Q Batch Management Config steps?

Q Difference between Discrete n Process?