Production planning

Mangesh Landge

30.01.2010

Agenda
Topics:
Delta changes
PP master data
Material data changes
Views,MRP 1/2/3/4,Work scheduling

Bill of Materials
Work Centers
Routing
Production Version
Product Cost Collector

Agenda
Topics:
SOP-Sales and Operation planning
Demand management
MTS-Consumption
MTO
MRP
Planned orders
Order firming
LTP-Long Term Planning
Declaration

Agenda
Topics:
Finish product quality
ECN
Tool Room/Kitting-Dekitting/Die shop
Reports/Tcodes
Data cleansing and cut over stratergy.

Delta changes
Area

Sub area

Action

Material
Master

MRP
controller

Old vs new

Material
Master

Purchasing
group

Old vs new

Material
Master

REM Profile

Old vs new

Material
Master

St. Det. Rule

Old vs new

Material
Master

Storage
locations

Old vs new

Material
Master

Valuation type No val type

Equipment
master

New logic for

last numbers

Table
maintain ce

Transaction

MFBF

MFBF screen

Order

Business area

No Business

Remark

PP Master Data
Master
Master data
data
Material Master
Record
BOM

Routing

Item
10
20
30

Operation
10
20
30

Work centre

Master data is comprised of material master records,

bills of materials, work centres, routings, production
versions and product cost collectors.
The material master is the foundation for all logistics
functions of the SAP R/3 System

Views of the Material

Master

Basic Data

MRP
Stocks in plant/
storage location
Accounting

Storage

Costing

Purchasing

The
The material
material master
master is
is aa
central
central data object for all
material
material types
types e.g.
raw
raw materials
materials
semi-finished products
products
finished products

Sales
Work
scheduling
Quality
management
Forecasting

Classification

Each
Each user
user function
function has
has its
its own
own view
view of
of the
the material
material master
master
which
which permits
permits easy
easy access
access and
and maintenance
maintenance of
of data.
data.

Important Fields MRP1 View

MRP Type: A key that determines whether the material will
be planned, and if so, how it will be planned. Planning
options include MPS, MRP or reorder point.
.MRP Controller: A unique number that identifies
the MRP controller or group of MRP controllers
responsible for planning material requirements.
Lot Size Key: A key that specifies the strategy, (e.g., Lotfor-Lot, Fixed order quantity, Part period balancing, etc.) the
system uses during MRP to calculate the quantity to be
produced or procured.
Reorder point planned materials: If the on-hand stock falls
below the reorder point quantity, MRP will create a
replenishment based on lot size rules and values defined in
the material master record.

Important Fields MRP2 View

Special Procurement Type: Allows you to define the

procurement more exactly.
In-house Production: Number of days required to produce
the material in-house, independent of lot size.
Planned Delivery Time: Number of calendar days needed to
obtain the material or service if it is procured externally
GR Processing Time: Number of workdays required after
receiving the material for inspection and placement into
storage.
Scheduling Margin Key: A numeric key that determines the
floats and opening period required for scheduling an
order.
Safety Stock: Specifies the quantity whose purpose is to
satisfy unexpectedly high demand in the coverage
period.
Procurement Type: An alphanumeric key that signifies how
the material is procured either in-house (E), externally
(F), or both in-house and externally (X).

Important Fields MRP3 View

Strategy Group: A key that contains all the possible demand

management strategies that may be used for the material.

Availability Check: A key that specifies if and how the system

checks availability and generates requirements for MRP.

Consumption Mode: A numeric key that indicates whether

forward or backward consumption is performed.

Consumption Periods (Backward/Forward): These fields specify

the length of time (in days) of the consumption period for
backward and forward consumption respectively.

Total Replenishment Lead Time: The total replenishment lead

time is the time needed before the product is completely
available again, that is, after all BOM levels have been
procured or produced.

Configurable Material: Configurable material to which a

material variant is assigned.

Important Fields MRP4 View

Selection Method: Indicator determining the selection of

the alternative BOM when requirements are exploded in
material requirements planning.

Individual/Collective: A numeric key that indicates

whether individual customer requirements planning (1),
collective requirements planning (2), or both (blank) are
allowed for the dependent requirements of the material.

Repetitive Mfg. Indicator: Authorizes the material for

repetitive manufacturing.

REM Profile: Controls the repetitive manufacturing

backflush process.

Work Scheduling View

Shop Floor

Engineering

Which departments use this view?

Production

??

Engineering

Shop Floor Production

Materials

Materials Management

Management

Why is this view used?

To record data related to
production such as:
Units of measure
Production (output)
Issue to production
Production Scheduler
Batch Management reqd.
In-house production time

Costing and Accounting Views

Finance

Purchasing

Which departments use this view?

??

Finance

Purchasing

Cost
Accounting

Cost Accounting

Why is this view used?

To maintain standard cost
To maintain average cost

Bill of Material Definition

BOM

AAbill
billofofmaterial
materialisisaacomplete,
complete,formally
formallystructured
structuredlist
list
ofofthe
components
of
a
product
or
assembly.
A
bill
of
the components of a product or assembly. A bill of
material
materialcontains
containsthe
thedescription
descriptionand
andobject
objectnumber
numberofof
each
eachcomponent,
component,the
thequantity
quantityand
andunit
unitofofmeasure.
measure.

Multi-level BOM
Motorcycle

Power Train

Motor

Gear

Exhaust

Chassis

Front
Wheel

Rear
Wheel

Frame

Combining
Combiningsingle-level
single-levelBOMs
BOMscreates
creates
aacomplete
multi-level
structure.
complete multi-level structure.

Brake
System

Work Centre Data

General data

Standard values
for routing

Basic data

Default values

Name and description

Standard value key
Performance efficiency key
Control key
Standard text key

Capacity data

Capacity

Scheduling data

Scheduling

Costing data
and
HR data

Scheduling basis
Queue and move times
Formula key

Assignment

Cost centre
Activity types
Formula keys

Available capacity
Formula key

Work
Work centres
centres contain
contain data
data stored
stored in
in several
several screens.
screens.
This
This figure
figure shows
shows some
some of
of the
the important
important data
data stored
stored in
in work
work centres.
centres.

Routings

A routing describes the processing steps or operations

that must be performed to produce a material.
Material

Routing group

Operation 20
Operation 10
Work centre
Texts
Control data
Times

Material components

Production Version
The production version determines the
different production techniques that
can be used to manufacture a material.
A material may have several bills of
material (BOMs) and / or routings
corresponding to the different
production techniques. Each
combination constitutes a production
version.

Product Cost Collector

Cost object in the Product Cost by Period component

that collects the actual costs incurred in each period for
the production of a material. When you use a product
cost collector, the product becomes the main cost
object

In repetitive manufacturing you always use product

cost collectors as the cost objects.

SOP
Budgeted plan=>Quarterly plan for vendors=>monthly plan for actual
procurements=>weekly plan for sequencing-All levels should system
driven with version maintainance.Mannual interventions will be captured
as well as plan adherence calculation should be their.
Abstract of SOP: Budgeted and long term plan is used to decide the strategy of the business.
Budgeted plan prepare by collecting input from SSG/past trends for 5 years in
which 1 year firma and 4 years tentative.
Capacity utilization / capacity expansion is decided by referring SOP.
Plan prepared accordance with considering the capacities/targets.
Budgeted plan converted into quarterly plan in which 1 month firm and three
month tentative by considering all constraints.
Quarterly plan used for procurement proposals.
Same/modified plan converted into weekly plan for sequencing.

SOP-Process Flow

SAP-SOP can be used for the Budget/long

term/quarterly Planning :

Sales & Operations Planning (SOP) is a flexible planning tool

with which sales, production, and other supply chain targets
can be set on the basis of existing, and estimated future data.

Rough-cut planning can also be carried out to determine

the amounts of the capacities and other resources required to
meet these targets.

SOP can use to streamline and consolidate our companys

sales and production operations.

SOP is particularly suitable for long- and medium-term

planning.

Demand Management
Function
The function of Demand Management is to determine requirement
quantities and delivery dates for finished products and important
assemblies. The result of Demand Management is the demand program.

Prerequisites
To create the demand program, you must define the planning strategy for a
product. Planning strategies represent the methods of production for
planning and manufacturing or procuring a product.

Result.
The demand program is created in the form of planned independent
requirements. Demand Management uses planned independent
requirements and customer requirements. Customer requirements are
created in sales order management.

Planning Strategy - Make To Stock (MTS)

In SAP strategy is MaketoStock (MTS) if stock produced
Is not automatically assigned to a Customer Order
Can be used to satisfy any customer requirement
Production may be triggered by
Expectation of sales (Planned Independent Requirements)
Customer Requirements (CR)

Backward/Forward Consumption
Planned
independent
requirements

Backward/forward consumption
1

Time

Sales Orders
Backward
period

Forward
period

InInbackward/forward
backward/forwardconsumption
consumptionwhen
whenaasales
salesorder
orderisiscreated,
created,ititisisfirst
firstallocated
allocatedtotothe
the
independent
requirement
in
the
most
recent
past.
If
the
order
is
larger
than
the
independent
independent requirement in the most recent past. If the order is larger than the independent
requirement,
requirement,the
thesales
salesorder
orderisisallocated
allocatedtotothe
thenext
nextindependent
independentrequirement
requirementthat
thatlies
liesininthe
the
past
until
all
independent
requirements
have
been
consumed
within
the
defined
consumption
past until all independent requirements have been consumed within the defined consumption
period.
period. Once
Onceall
allofofthe
thepast
pastindependent
independentrequirements
requirementshave
havebeen
beenconsumed,
consumed,the
thesales
salesorder
order
isisallocated
to
the
first
independent
requirement
in
the
future.
allocated to the first independent requirement in the future.

Planning Strategy - Make To Order (MTO)

In SAP, strategy is MaketoOrder if stock produced
Is automatically assigned to a specific Sales Order item
Can be used to satisfy only the specific Sales Order requirement
Production may be triggered by
Only by a specific Customer Requirements (CR)

Demand Management
Demand Management involves management of,
Planned Independent Requirements (PIR)
Customer Requirements (CR)

Strategy determines
Requirement types i.e. attributes of the requirements
How PIR are consumed by CR

In a Demand Program you specify PIRs for planned materials

If only Customer Requirements exist, Demand Program is not required

Demand Management
Copy from
Sales Plan

Copy from
Prodn Plan

Copy from
Forecast

Copy from
Orig Plan

Manual Entry Sales Orders

Demand Management
Demand Program + Strategy

MRP

MRP OVERVIEW

Line
Assignment

Sequencing
/ Scheduling
Matl. Staging
REM
Backflush

MRP - Planning Procedures

Planning
Planning
Procedures
Procedures

Deterministic
Deterministic
MRP
MRP

Consumption-Based
Consumption-Based
Planning
Planning

Forecast-Based
Forecast-Based
Planning
Planning

Reorder
ReorderPoint
Point
Planning
Planning

Automatic
Automatic
Reorder
ReorderPoint
Point

Manual
Manual
Reorder
ReorderPoint
Point

MRP Types
Commonly Used:
PD - Deterministic Planning
MRP produces order proposal(s) to match the exact quantity of the
requirements based on independent and dependent demands
VB - Manual Reorder Point Planning:
MRP produces order proposals when stock falls below a reorder
point. The reorder point and safety stock levels are entered
manually

Planning Run Types

Regenerative Planning all items are planned for a plant. It is generally
used during initial start-up to ensure all items are planned or when heavy
maintenance causes most items to be re-planned.

Net Change Planning only items which have undergone a change to the
supply/demand balance, such as warehouse receipts and issues, are re-planned.
It is common to run net change MRP daily.

Net Change Planning in the Planning Horizon shortens the period

over which MRP plans to the planning horizon, which is set in Customizing. It
is typically set to the length of time of the longest lead time item. This means
that only those items which have undergone a relevant change within the
planning horizon are planned.

MRP Steps
Net Requirement Calculation:
In MRP, the system compares available stock or the scheduled receipts from
purchasing and production with planned independent requirements, material
reservations and incoming sales orders during the net requirements calculation.
In the case of a material shortage the system creates an order proposal.
Lot Sizing:
It calculates the quantity recorded in the order proposal according to the lot
sizing procedure specified.
Scheduling:
The order proposal is scheduled. For external procurement delivery and release
dates are determined and for in house production the production dates are
calculated.
Planned Orders / Purchase Requisition:
During MRP run planned orders / purchase requisitions are created for in house
production / external procurement.

Planned Orders: Basic Information

A planned order represents a
planned receipt of a material in a
plant. It specifies when the material
is required in stock and the quantity
that is expected.
Planned orders can be created in
one of two ways:
Manually by the MRP controller
Automatically during the planning
run

Firming Planned Orders

Planned orders that are created automatically

by the planning run are continually updated
as requirements change.

To prevent these automatic changes to

planned orders, you can firm them. Changes
to order quantities and dates on firm planned
orders can only be completed manually.

Analysing MRP Results - Exception

messages
Total planning /
Single-item planning
MRP lists

Exception messages

Exception groups

"CANCEL OPERATION"
"DISPLACE OPERATION"

"Exception during rescheduling"

"FINISH DATE IN
THE PAST"

"New; finish date in past"

Selection of the MRP lists according to exception group "Exception during rescheduling"
Material A

"BRING FORWARD
OPERATION"
"CANCEL OPERATION"

Material B

Long-Term Planning

Long-Term Planning

Material Staging

Declaration
Serialized product have unique
equipment master contain unique
serial number with active status
management.
Equipment category-E for Engine and J
for vehicle

Declaration of serialized product.

Declaration of aggregates.

Finish product Quality

Finish product(Vehicles) quality
checked through status
management.
After all quality check vehicle
available for RFD.

ECN
Engineering change number
With approval
Handle through status management

Without approval

Tool Room/Kitting/Dekitting/Die
shop
With material
Without material
Labor and Machine utilization for
order
Confirmation and settlement
Non valuated material
Cost report

Reports/Tcodes
Old vs new Tcodes
Old vs new important tables

DATA CLEANSING AND CUT OVER

Rules for data carry forward
Cut off stratergy.

Thank you