Module : PP (Production Planning) Organizational Elements The SAP PP business processes uses the following organizational elements: – Client – Company Code – Plant – Storage Location Organizational Elements Client A Highest Hierarchical Level in SAP (e.g. a corporation) Used to Differentiate between a Development, Quality Assurance, and Production System within SAP R/3 Common Set of Rules Common Tables Common Master Files Common Data Bases Standardized data across the client A vendor number and name is common across the client A customer is common across the client A material number and description is common across the client Organizational Elements Company Code A company code represents an independent balancing/legal accounting entity, for example, a company within a corporate group. Balance sheets and profit & loss statements, required by law, can be created at the company code level. Company Code **** BALANCING / (LEGAL) ENTITY = Assets Liabilities Revenues - Expenses Profit/Loss Organizational Elements Plant Usually a manufacturing facility, a warehouse, or a location that stocks , manages, and valuates inventory May be a physical site with multiple manufacturing/production lines May be multiple manufacturing/production lines at one physical site Can be a physical location (cost centers may or may not be associated to a plant i.e. Administrative vs. Manufacturing cost centers) Links to production (PP), materials management (MM), and sales and distribution (SD) A plant is assigned to a company code Purchasing organization are assigned to plants. Organizational Elements Storage Locations A storage location is the place where stock is physically kept within a plant A storage location has the following attributes: There may be one or more storage locations within a plant. Stocks are managed only on a quantity basis and not on a value basis at storage location level. Physical inventories are carried out at storage location level. Storage locations are always created for a plant. Master Data List of Master Data in SAP PP Module are: – Material Master – Bills Of Material – Work Centers – Routings Master Data Material Master Material Master Material Master Material master record is a company's main source of material-specific data. It is used by all components in the R/3 Logistics System. The integration of all material data in a single database object prevents the problem of data redundancy. Every area, such as Purchasing, Inventory Management, Materials Planning, and Invoice Verification can use the data stored. Material Master Since materials are processed by various user departments within a company and each department stores different information for the materials, the material master is subdivided into information grouped by user departments. Each user department has a different view of the material master record and is responsible for maintaining the data to support its function. The data maintained within a view may be valid for more than one organizational level. Material Master Material Master Material Master Material Master Material Master Material Master Material Master – Units of Measure Base unit: Piece 16 72 4 Box (unit of issue) Crate Pallet (order unit) (sales unit) Material Master Material Master Master Data Bills Of Material Bills Of Material Bills Of Material Bills Of Material Bills Of Material Bills Of Material Bills Of Material Bills Of Material Bills Of Material Bills Of Material Bills Of Material Bills Of Material Bills Of Material Bills Of Material Bills Of Material Bills Of Material Bills Of Material Master Data Work Centers Work Center Work Center Work Center Work Center Work Center Work Center Work Center Work Center Work Center Work Center Work Center Work Center Work Center Work Center Work Center Work Center Work Center Work Center Master Data Routings Routing Routings - Components Routing - Components R o u tin g s R o u tin g s c o n ta in : T h e s te p s re q u ire d to p ro d u c e o r m a k e a n a s s e m b ly T h e w o rk c e n te rs w h e re th e s te p s a re to b e p e rfo rm e d T h e re s o u rc e s a n d to o ls n e c e s s a ry to c o m p le te a s te p a t a w o rk c e n te r M a te ria l a llo c a tio n T h e m a te ria l b e in g m a n u fa c tu re d is a llo c a te d to th e g ro u p c o u n te r (h e a d e r) C o m p o n e n t m a te ria ls a re a llo c a te d to o p e ra tio n s S ta n d a rd v a lu e s fo r s e tu p , p ro c e s s in g , a n d te a r-d o w n tim e In s tru c tio n s o f w h a t to d o a t e a c h w o rk s te p S k ills re q u ire d to d o e a c h s te p in th e a s s e m b ly p ro c e s s R S A P A G 0 6 /2 3 /9 7 Routings R o u tin g s A m a te ria l c a n b e m a n u fa c tu re d in d iffe re n t w ays. F o r e a c h m a te ria l, y o u c a n c re a te s e v e ra l ro u tin g s fo r d iffe re n t L o t s iz e ra n g e s W o rk c e n te rs U s a g e s , in c lu d in g P ro d u c tio n R e w o rk P ro to ty p e R Routing - Group R o u tin g s R o u tin g s a re s to re d in g ro u p s o f s im ila r o r re la te d ro u tin g s . E a c h in d iv id u a l ro u tin g is re fe rre d to a s a g ro u p c o u n te r w ith in th e g ro u p R o u tin g G ro u p G ro u p C o u n te r 0 1 G ro u p C o u n te r 0 2 G ro u p C o u n te r 0 3 G ro u p C o u n te r 0 4 R S A P A G 0 6 /2 3 /9 7 Routing - Group Material Allocation M a te ria l A llo c a tio n B M a te ria l BOM Ite m 1 0 Ite m 2 0 SAP AG A M a te ria l R o u tin g BOM O p. 10 Ite m 1 0 O p. 20 Ite m 2 0 O p. 30 Ite m 3 0 PRT Assignments P ro d u c tio n R e s o u rc e /T o o l A s s ig n m e n ts R o u tin g O p e ra tio n 1 0 PRT 1 O p e ra tio n 2 0 PRT 2 O p e ra tio n 3 0 SAP AG Sequences in Routing S e q u e n c e s in R o u tin g A lte rn a tiv e s e q . 0002 M a in s e q u e n c e 0000 A lte rn a tiv e s e q . 0001 20 O p e ra tio n 1 0 10 25 O p e ra tio n 2 0 15 30 O p e ra tio n 3 0 20 O p e ra tio n 4 0 25 O p e ra tio n 5 0 30 Parallel Sequences P a ra lle l S e q u e n c e s 20 30 25 O p e ra tio n 10 20 SAP AG 30 20 30 40 Scheduling in PP S c h e d u lin g in P ro d u c tio n P la n n in g M a te ria l R e q u ir e m e n ts P la n n in g S e p a ra te s c h e d u lin g o f p la n n e d o r d e r s E x a c t to th e d a y B a s ic d a te s c a lc u la te d P la n n e d s ta rt d a te P la n n e d d e liv e r y d a te C re a tio n d a te U s e s lo t-d e p e n d e n t/lo t-in d e p e n d e n t in -h o u s e p r o d u c tio n o r re p le n is h m e n t le a d tim e O p tio n a lly u s e b a s ic p la n n in g d a y s fro m th e m a te r ia l m a s te r to im p ro v e p e rfo rm a n c e O p tio n a l c a lc u la tio n o f c a p a c ity re q u ire m e n ts P r o d u c tio n o r d e r m a n a g e m e n t SAP AG t P er io d s O rd e r h e a d e r o p er at io n s L e a d tim e s c h e d u lin g E x a c t to th e s e c o n d B a s e d o n b a s ic d a te M RP M an u al T a rg e t d a te s c a lc u la te d (s c h e d u le d d a te s ) T a rg e t s ta rt d a te T a rg e t fin is h d a te O p e r a tio n s p e c ific d a ta u s e d to c a lc u la te o rd e r d a te s C a p a c ity r e q u ire m e n ts c a lc u la te d m a te ria l c om po n e n ts P RT s c o st s p la n n ed t arg e t a ct u al 100 20 50 Scheduling S c h e d u lin g : T im e E le m e n ts in a n O rd e r F lo a t b e f. O p e r. O p e r. O p e r. O p e r. p ro d u c tio n 0 0 1 0 0 0 2 0 0 0 3 0 0 0 4 0 BS ........ O p e r. 0099 SS Q ueue ES F lo a t a fte r p ro d u c tio n SF S e tu p P ro c e s s in g T e a rd o w n LS W a it EF GR P ic k /p a c k L o a d in g p ro c e s s in g BF GI DDD LF O p e ra tio n d a te s BS SS SF BF AD LT GI DDD ES LS EF LF SAP AG LT M ove O rd e r d a te s B a s ic s ta rt d a te S c h e d u le d s ta rt d a te (p ro d u c tio n s ta rt d a te ) S c h e d u le d fin is h d a te B a s ic fin is h d a te A v a ila b ility d a te (e x p e c te d ) L o a d in g tim e G o o d s is s u e D e s ire d d e liv e ry d a te AD T ra n s it E a rlie s t s ta rt d a te L a te s t s ta rt d a te E a rlie s t s ta rt d a te L a te s t fin is h d a te T im e te rm s L e a d tim e o rd e r o r o p e ra tio n F lo a t tim e s o rd e r E x e c u tio n tim e o p e ra tio n In te ro p e ra tio n tim e s P ro c e s s in g tim e s in S a le s a n d D is trib u tio n Sub Operations in Routing S u b -o p e ra tio n O p e ra tio n 1 0 O p e ra tio n 2 0 SAP AG S u b -o p 1 0 /1 0 S e tu p S u b -o p 1 0 /2 0 P ro c e s s in g 1 S u b -o p 1 0 /3 0 P ro c e s s in g 2 Scheduling S c h e d u lin g S u b -o p e ra tio n s 10 BS 20 30 SS E x e c u tio n 2 0 /1 0 F in is h re fe re n c e to o ffs e t W a it TS Q ueue SF 2 0 /2 0 S ta rt re fe re n c e to o ffs e t F in is h re fe re n c e 2 0 /3 0 S ta rt re fe re n c e to o ffs e t M ove BF Production Planning • Demand Management • Material Requirement Planning − Planning of Purchased parts − Planning of in house assemblies Planning Process: Process flow Central marketing office Demand (Weekly) Dispatch plan Demand planning cell Production Requirement (Week wise, Model wise) Planned Prod. Confirmed Vendor Schedule PPC MRP Run Planned Vendor Schedule Vendor Web site Confirmed Production Production Third Party Log Dispatch sheet Planning Process: Strategies While doing planning, you need to decide which planning strategy to use when the customer places their order. • Make-to-Stock Production − • Make-to-stock production means we build stock in anticipation of customer demand. We ship the customer order from our stock of finished goods Make-to-order Production − We wait for a customer order before we start production/procurement. i.e. We produce as per demand from customer Planning process: Demand Planning Dealer Dealer Dealer Dealer Dealer Territory office Area Office Dealer Territory office Area Office Area Office Zonal Central Marketing office PPC Consolidation of Demand Area Office Planning Process: Demand Management Demand management is the link between top-level requirements planning (SOP) and materials planning (MRP). Input for the demand program can come from several sources: Materials Requirement Planning M R P P ro c e d u re s : O v e rv ie w M a te ria ls P la n n in g P ro c e d u re s MRP F o re c a s t-b a s e d p la n n in g C o n s u m p tio n -b a s e d p la n n in g R e o rd e r p o in t p la n n in g T im e -p h a s e d p la n n in g R SAP AG MRP Overview Uses of MRP M R P U ses M a te ria l re q u ire m e n ts p la n n in g is u s e d to p la n th e o n tim e p ro d u c tio n o r p ro c u re m e n t o f th e re q u ire d q u a n titie s fo r b o th in te rn a l c o n s u m p tio n a n d c u s to m e r dem and. T h is p ro c e s s in v o lv e s m o n ito rin g s to c k le v e ls a n d a u to m a tic a lly c re a tin g o rd e r p ro p o s a ls fo r p u rc h a s in g a n d p ro d u c tio n . F o r m a te ria ls p ro d u c e d in -h o u s e , th e d e p e n d e n t re q u ire m e n ts o f th e c o m p o n e n ts a re d e te rm in e d d u rin g B O M e x p lo s io n . R S A P A G 0 6 /2 3 /9 7 MRP Functions MRP Functions Material requirements planning (MRP) consists of the following important functions: Net change planning (short- and long-term) and regenerative planning MRP and consumption-based planning Various lot-sizing procedures Single-item or collective planning Processing and rescheduling proposals Easy-to-use options for evaluating the planning result Single and multi-level pegging Planning at multi-plant level R SAP AG 06/23/97 MRP Prerequisites Planning Run Planning Run - Types P la n n in g R u n T y p e o f P la n n in g Run W h a t is it? T o ta l P la n n in g P la n n in g a ll m a te ria ls fo r a s p e c ifie d p la n t S in g le -ite m , M u lti-le v e l P la n n in g P la n n in g a c o m p le te B O M s tru c tu re fo r a s in g le m a te ria l S in g le -ite m , S in g le -L e v e l P la n n in g P la n n in g a s in g le m a te ria l o n e le v e l In te ra c tiv e P la n n in g S to p p in g th e M R P ru n p e rio d ic a lly to m a k e c h a n g e s R S A P A G 06/2 3/97 MRP - Control Parameters C o n tro l P a ra m e te rs fo r M R P P la n n in g ru n c a n b e c a rried o u t a t tw o d iffe re n t le v e ls : S in g le -ite m p la n n in g fo r a n in d iv id u a l m a te ria l T o ta l p la n n in g fo r a ll m a te ria ls in a p la n t P la n n in g R u n T yp e s D u rin g re g e n e ra tiv e p la n n in g , a ll M R P ite m s a re p la n n e d fo r a p la n t. T h e n e t c h a n g e p la n n in g p ro c e d u re p la n s o n ly th o s e M R P ite m s th a t h a v e c h a n g e d re le v a n t to p la n n in g s in c e th e la s t M R P ru n . In n e t c h a n g e p la n n in g in th e p la n n in g h o riz o n , M R P is c a rrie d o u t o n ly w ith in a d e fin e d p la n n in g h o riz o n . R S A P A G 0 6 /2 3 /9 7 Net Change Planning Planning in Planning Horizon P la n n in g in th e P la n n in g H o riz o n NNeett cchhaannggee ppla lannnnin ingg in in th thee ppla lannnnin ingg hhooriz rizoonn:: m maate teria riall is is ppla lannnneedd P la n n in g h o riz o n T im e Tod ay NNeett cchhaannggee ppla lannnnin ingg in in th e p la n n in g h o riz o n : th e p la n n in g h o riz o n : m maate teria riall is is nnoott ppla lannnneedd P la n n in g h o riz o n !!! T im e Tod ay R SAP AG Planning Run - Single Item E x e c u tin g th e P la n n in g R u n fo r S in g le Ite m s S in g le -ite m , m u lti-le v e l p la n n in g - p la n n in g a B O M s tru c tu re - p o s s ib ility o f c h a n g in g th e m a s te r p la n fo r e a c h m a te ria l in th e b ill o f m a te ria l m a n u a lly S in g le -ite m , s in g le -le v e l p la n n in g - p o s s ib ility o f c h a n g in g th e m a s te r p la n m a n u a lly + c re a te + d e le te + change + re s c h e d u le SAP AG R Single-item, Multi-Level Planning S in g le -Ite m , M u lti-L e v e l P la n n in g F in is h e d p ro d u c t A s s e m b ly 1 C om ponent 1 A s s e m b ly 2 C om ponent 2 E x e c u te p la n n in g ru n P ro c e s s p la n n in g re s u lts M a te ria ls o v e rv ie w S e le c t m a te ria ls A id s : - s o rtin g o p tio n s - s e a rc h o p tio n s - in o v e rv ie w - in in d iv id u a l lis ts SAP AG E x e c u te p la n n in g ru n R Single-Level MRP Multi-Level MRP M u lti-L e v e l M R P D ependent R e q u ire m e n ts fro m M P S ru n M o to rc y c le MRP A ll le v e ls re c e iv e d ep en dent re q u ire m e n ts fro m th e u p p e r le v e l a n d th e n p la n o rd e rs to s a tis fy th o s e re q u ire m e n ts P o w e r T ra in M o to r G ear Exhaust C h a s s is F ro n t W heel R ear W heel F ra m e P la n n e d = D ependent O rd e r R e q u ire m e n ts fro m M R P ru n B ra k e S y s te m P la n n e d O rd e r o r P u rc h a s e R e q u is itio n M u lti-le v e l p la n n in g p la n s a c o m p le te B O M s tru c tu re . T h e p ro c e s s fo r m u lti-le v e l p la n n in g is th e s a m e a s fo r s in g le le v e l e x c e p t th a t it c o n tin u e s fo r e a c h le v e l in th e B O M s tru c tu re . R S A P A G 0 6 /2 3 /9 7 Total Planning C a rry in g O u t T o ta l P la n n in g PPla lannnnin ingg ty typpeess:: PPla lannnnin ingg aallll th thee m maate teria rials ls in in aa ppaartic rticuula larr ppla lannt,t, oorr P la n t PPla lannnnin ingg aallll th thee m maate teria rials ls wwhhic ichh hhaavvee uunnddeer-rggoonnee aa cchhaannggee re rele levvaanntt to to ppla lannnnin ingg (n (neett cchhaannggee ppla lannnnin ingg)) P la n n e d re c e ip ts P la n n in g in te rv a l: U n lim ite d o r P la n n in g h o riz o n P la n n in g in th e p la n n in g h o riz o n T im e R e q m ts In th e to ta l p la n n in g p ro c e d u re , y o u c a n p la n a ll th e m a te ria ls in a p a rtic u la r p la n t (re g e n e ra tiv e ) o r p la n th e m a te ria ls th a t h a v e u n d e rg o n e a c h a n g e re le v a n t to re q u ire m e n ts p la n n in g s in c e th e la s t p la n n in g ru n (n e t c h a n g e ). W h e n p la n n in g w ith in th e p la n n in g h o riz o n , o n ly th o s e m a te ria ls th a t h a v e c h a n g e d re le v a n t to p la n n in g in th e n e a r te rm a re in c lu d e d . R S A P A G 0 6 /2 3 /9 7 MRP Procedure A b o u t th e M R P P ro c e d u re D u rin g th e n e t re q u ire m e n ts c a lc u la tio n in M R P , th e S A P R /3 S y s te m c o m p a re s a v a ila b le w a re h o u s e s to c k o r th e s c h e d u le d re c e ip ts fro m p u r c h a s in g a n d p r o d u c tio n , w ith p la n n e d in d e p e n d e n t re q u ire m e n ts , m a te ria l re s e r v a tio n s , a n d in c o m in g s a le s o r d e r s . If a v a ila b le s to c k is le s s th a n th e q u a n tity r e q u ire d , th e s y s te m c re a te s a n o rd e r p ro p o s a l. T h e s y s te m c a lc u la te s th e q u a n tity re c o rd e d in th e o rd e r p ro p o s a l a c c o rd in g to th e lo t-s iz in g p ro c e d u re y o u s p e c ifie d in th e m a te ria l m a s te r. T h e o rd e r p r o p o s a l is a ls o s c h e d u le d (i.e ., d e liv e r y a n d re le a s e d a te s a re d e te rm in e d fo r m a te ria ls p r o c u re d e x te rn a lly ). R S A P A G 0 6 /2 3 /9 7 MRP Control Parameters S in g le -Ite m , M u lti-L e v e l M R P M MRRPP -- SSin inggle le-Ite -Item m,, M Muulti-L lti-Leevveell UUssin ingg NNeett cchhaannggee fo forr to tota tall hhooriz rizoonn,, M MRRPP is is ppeerfo rm e d th ro u g h o u t th e e n tire p la n n in g rfo rm e d th ro u g h o u t th e e n tire p la n n in g hhooriz rizoonn.. O Onnly ly th thoossee m maate teria rials ls th thaatt hhaavvee cchhaannggeedd re rele levvaanntt to to M MRRPP aare re re re-p -pla lannnneedd.. R S A P A G 0 6 /2 3 /9 7 MRP Control Parameters S in g le -Ite m , M u lti-L e v e l M R P M MRRPP -- SSin inggle le-Ite -Item m,, M Muulti-L lti-Leevveell TThhee DDeeliv liveery ry sscchheedduule le ccoonntro troll ppaara ram meete terr ddeete term rmin ineess ifif sscchheedduulin g lin e s w ill b e c re a te d fo r th o s e p u rc h a s lin g lin e s w ill b e c re a te d fo r th o s e p u rc h a seedd m maate teria rials ls th thaatt hhaavvee aacctiv tivee sscchheedduulin lingg aaggre reeem meennts ts in in th thee ssyysste tem m.. R S A P A G 0 6 /2 3 /9 7 MRP Control Parameters S in g le -Ite m , M u lti-L e v e l M R P M MRRPP -- SSin inggle le-Ite -Item m,, M Muulti-L lti-Leevveell TThhee CCre reaate te M MRRPP lis listt ccoonntro troll ppaara ram meete terr ddeessig ignnaate tess ifif th thee M MRRPP lis listt wwill ill bbee ccre reaate tedd aass aa re ressuultlt ooff th this is ppla lannnnin ingg ru runn.. R S A P A G 0 6 /2 3 /9 7 MRP Control Parameters S in g le -Ite m , M u lti-L e v e l M R P M MRRPP -- SSin inggle le-Ite -Item m,, M Muulti-L lti-Leevveell TThhee PPla lannnnin ingg m mooddee ccoonntro troll ppaara ram meete terr ddeete rm in e s h o w th e s y s te m re a c ts to te rm in e s h o w th e s y s te m re a c ts to oord rdeerr ppro roppoossaals ls,, fro from m ppre revvio iouuss ppla lannnnin ingg ru runnss,, wwhheenn th e y s till m e e t th e n e w re q u ire m e n ts th e y s till m e e t th e n e w re q u ire m e n ts ssitu ituaatio tionn.. R S A P A G 0 6 /2 3 /9 7 MRP Control Parameters S in g le -Ite m , M u lti-L e v e l M R P M MRRPP -- SSin inggle le-Ite -Item m,, M Muulti-L lti-Leevveell TThhee SScchheedduulin lingg ccoonntro troll ppaara ram meete terr ddeete term rmin ineess hhooww th e le a d tim e fo r e a c h o rd e r w ill b e c a lc u la th e le a d tim e fo r e a c h o rd e r w ill b e c a lc u late tedd.. YYoouu m maayy cchhoooossee to to ccaalc lcuula late te th thee le leaadd tim timee bbaasseedd oonn th e o p e ra tio n s in th e ro u tin g o r to u s th e o p e ra tio n s in th e ro u tin g o r to u see th thee bbaassic ic ppla n n in g d a te s fro m th e m a te ria l m a s te r. la n n in g d a te s fro m th e m a te ria l m a s te r. R S A P A G 0 6 /2 3 /9 7 MRP Control Parameters S in g le -Ite m , M u lti-L e v e l M R P M MRRPP -- SSin inggle le-Ite -Item m,, M Muulti-L lti-Leevveell TThhee PPro rocceessss ccoonntro troll ppaara ram meete ters rs ddeete term rmin inee ifif ccoom p o n e n ts w ill b e p la n n e d w h e th e r o r n m p o n e n ts w ill b e p la n n e d w h e th e r o r noott th thee BBOOM M hhaass bbeeeenn cchhaannggeedd,, wwhheeth theerr th thee M MRRPP lis listt wwillill bbee ddisisppla y e d b e fo re s a v in g th e o rd e r p ro p o s a la y e d b e fo re s a v in g th e o rd e r p ro p o s alsls,, aanndd wwhheeth theerr th thee ru runn-tim -timee ssta tatis tistic ticss wwill ill bbee ddis isppla layyeedd.. R S A P A G 0 6 /2 3 /9 7 Net Requirements Calculation N e t R e q u ire m e n ts C a lc u la tio n fo r M a te ria ls P la n n in g U s in g M R P S to c k F irm e d re c e ip ts R e q m ts S a fe ty s to c k A v a ila b le q u a n tity N e t re q u ire m e n ts T im e S h o rta g e R SAP AG T im e Requirement Quantities H o w to D e a l w ith U n fo re s e e n D e v e lo p m e n ts in R e q u ire m e n t Q u a n titie s ? S a fe ty s to c k S a fe ty s to c k p a rtia lly a v a ila b le D y n a m ic s a fe ty s to c k S a fe ty tim e R SAP AG Safety Stock S a fe ty S to c k P a rtia lly A v a ila b le S to c k O rd e r p ro p o s a l A v a ila b le p o rtio n S a fe ty s to c k T im e R e q m ts R SAP AG Safety Time S a fe ty T im e T im e S a fe ty tim e R Safety Time in Production S a fe ty T im e in M u lti-L e v e l P ro d u c tio n P la n n e d o rd e r F in is h e d p ro d u c t T im e Reqm t S a fe ty tim e P la n n e d o rd e r C o m p o n e n ts T im e In d e p .re q m ts D e p e n d e n t re q m ts S a fe ty tim e R SAP AG Lot Size Calculation L o t-S iz e C a lc u la tio n N e t re q u ire m e n ts T im e O rd e r p ro p o s a ls T im e R SAP AG Lot Sizing - Overview Overview of Lot-Sizing Procedures Lot-Sizing Procedures Static procedures Period procedures Optimum procedures Lot-for-lot order quantity Daily lot size Part period procedure Fixed lot size Weekly lot size Least unit cost procedure Replenish up to maximum stock level Monthly lot size Groff reorder procedure Flexible periods according to planning calendar Dynamic lot size creation SAP AG R Static Lot Sizing S ta tic L o t-S iz in g P ro c e d u re s L o t-fo r-lo t o rd e r q u a n tity Q u a n tity R e c e ip ts R e q m ts T im e P la n n e d w a re h o u s e s to c k = Æ F ix e d lo t s iz e R e p le n is h u p to m a x im u m s to c k le v e l R SAP AG Period Lot - Sizing Procedure P e rio d L o t-S iz in g P ro c e d u re s R e c e ip ts T im e R e q m ts P e rio d 1 P e rio d 1 P e rio d 1 R SAP AG Optimum Lot Sizing O p tim u m L o t-S iz in g P ro c e d u re s M a n y d e liv e rie s / H ig h o rd e r c o s ts M in im a l s to c k k e e p in g / M in im a l s to ra g e c o s ts F e w d e liv e rie s / L o w o rd e r c o s ts M o re e x te n s iv e s to c k k e e p in g / H ig h e r s to ra g e c o s ts R SAP AG Long Term Lot Sizing L o n g -T e rm L o t S iz e PPla lannnnin ingg hhooriz rizoonn SShhoort-te rt-term rm ppeerio riodd ee.g .g.,., lo lot-fo t-for-lo r-lott oord rdeerr qqty ty LLoonngg-te -term rm ppeerio riodd ee.g .g.,., mmoonnth thlyly lo lott ssizizee P la n n in g h o riz o n is s p lit in to tw o p e rio d s . D iffe re n t lo t-s iz in g p ro c e d u re s c a n b e d e fin e d fo r e a c h p e rio d . P la n n in g ru n is c a rrie d o u t in re g u la r in te rv a ls u s in g a tim e -p h a s e d p la n n in g ru n . R S A P A G 0 6 /2 3 /9 7 Other Lot Sizing Features O th e r N e w L o t-S iz in g F e a tu re s L o t-s iz e c a lc u la tio n fo r m a k e -to -o rd e r O v e rla p p in g o f fix e d lo t s iz e w ith s p littin g P e rio d lo t-s iz e w ith s p littin g a n d o v e rla p p in g F ix e d lo t s iz e 3 0 0 , c y c le tim e 1 d a y F o rw a rd o v e rla p p in g B a c k w a rd o v e rla p p in g Reqm t 3 /1 5 900 Reqm t 3 /1 5 900 3 0 0 p c b y 3 /1 5 3 0 0 p c b y 3 /1 4 3 0 0 p c b y 3 /1 3 N E W 3 .0 3 0 0 p c b y 3 /1 5 3 0 0 p c b y 3 /1 6 3 0 0 p c b y 3 /1 7 R S A P A G 0 6 /2 3 /9 7 Lot Size Rounding Profiles L o t S ize R o u n d in g P ro file R o u n d in g p ro file X Y L e v el T h re s h o ld v a lu e 1 2 2 32 R o u n d in g va lu e 5 40 R eqm t O rd e r p ro p o s a l 1 2 6 7 21 22 31 32 41 74 0 5 5 10 20 25 30 40 40 80 R S A P A G 0 6 /2 3 /9 7 Layout of MRP List Stock Req. List - Layout L a y o u t o f th e C u rre n t S to c k /R e q u ire m e n ts L is t C u rre n t s to c k /re q u ire m e n ts lis t V a ria b le h e a d e r C o n te n ts M a te ria l in fo rm a tio n R e c e ip t/S to c k lis t D a te E x c e p tio n m e s s a g e R e c e ip t/R e q m ts q u a n tity A v a ila b le q u a n tity C o n te n ts re a d w h e n lis t is accessed ... M R P e le m e n ts P la n n e d o rd e rs P u rc h a s e re q u is itio n s P ro d u c tio n o rd e rs P u rc h a s e o rd e rs P la n t s to c k / S to ra g e lo c a tio n s to c k F o re c a s t re q u ire m e n ts S a le s o rd e rs R e s e rv a tio n s R SAP AG MRP List - Collective Display MRP List - Functions Exception Messages Exception Messages Exeptions indicate: New order proposals created in the planning run Dates in the past (start, finish or opening date) Problems in BOM explosion Problems in scheduling Rescheduling The following settings can be made in Customizing: Priority: if several exception messages exist for one MRP element, the system will display the message allocated the highest priority. Creation of the MRP list depending on the exception message created. Splitting into exception groups for the selection. R SAP AG Rescheduling Checks R e sc h e d u lin g C h e c k fo r F irm e d R e c eip ts e .g . p ro d u c tio n o rd er, p u rch ase o rd er, p lan n e d o rd er) EM R e s ch e d u le in noEM R e s ch e d u le o u t? N o ! R e v ers e R e c eip ts T im e T o le ran c e T o le ran c e R e q m ts R e s ch e d u lin g h o rizo n R Old / New Exception Message Old / New Exception Messages Old MRP list Exception: bring forward Purchase order 4711/10 Time 10.10. Processing by MRP controller; Processing indicator set Reschedule Time New MRP list after the next planning run Same exception ==> Old exception Purchase order 4711/10 10.10. Time R SAP AG Planned New Exception Message Order Conversion C o n ve rtin g P la n n ed O rd e rs C o llec tiv e ly T o d ay C o n ve rt P lan n ed o rd e rs T im e O p e n in g d ate R SAP AG Material Supply for Production Collective Display Search in Individual List Current List - Functions C u r r e n t S to c k /R e q m ts L is t: F u n c tio n s PPrroocceessssin ingg oopptio tionnss M a te ria l m e m o H Heeaaddeerr ddaata ta C h e c k re s c h e d u lin g M a te ria l m a s te r d a ta S e a rc h o p tio n s S to c k s ta tis tic s V a ria b le h e a d e r C o n s u m p tio n v a lu e s G o to n e x t M R P lis t in c o lle c tiv e d is p la y P la n n in g s e g m e n ts D Dis isppla layy oopptio tionnss P e rio d to ta ls G ro u p in g re q m ts V a ria b le d is p la y o f d a te s S to c k s R e c e ip ts A Acctio tionnss fo forr M MR RPP eele lem meennts ts D is p la y C hange R e q m ts C o n v e rt P e g g e d re q m ts R O rd e r re p o rt SAP AG Pegged Requirements P e g g e d R e q u ire m e n ts P la n n e d o rd e rs FFin inis ishheedd ppro rodduucctt T im e S a le s o rd e r In d e p . re q m ts CCoom mppoonneennts ts P u rc h a s e o rd e r T im e D e p e n d e n t re q m ts R SAP AG Order Report O rd e r R e p o rt S a le s o rd e r PPla lannnneedd oord rdeerr FFin inis ishheedd ppro rodduucctt AAsssseem mbblie liess CCoom mppoonneennts ts D e p e n d e n t re q m ts D e p e n d e n t re q m ts P la n n e d o rd e r D e p e n d e n t re q m ts PPuurc rchhaassee oord rdeerr PPro rodduucctio tionn oord rdeerr R e s e rv a tio n SSto tocckk R e s e rv a tio n PPro robble lem m !!! !!! R SAP AG Planning Time Fence D e te rm in in g th e P la n n in g T im e F e n c e L e a d tim e d ia g ra m BOM E1 M PS M RP B2 R1 D e te rm in e - M a te ria l m a s te r - M R P g ro u p R2 P la n n in g le v e l B1 E1 B1 B2 R1 R2 P la n n in g tim e fe n c e M a n u a l m o n ito rin g A u tom a tic or de r p ro p o s a ls Open p e rio d P la n n in g h o riz o n B y u s in g th e p la n n in g tim e fe n c e , th e M R P c o n tro lle r c a n d e fin e a s p e c ific p e rio d , fo r e a c h m a s te r s c h e d u le ite m , in w h ic h n o a u to m a tic c h a n g e s c a n b e m a d e to th e m a s te r p la n . T h e M R P c o n tro lle r c a n d e fin e th e p la n n in g tim e fe n c e p e r m a te ria l in th e m a te ria l m a s te r re c o rd (M R P 1 s c re e n ), p e r p la n t, o r p e r th e M R P g ro u p . R S A P A G 0 6 /2 3 /9 7 Planning Time Fence Scheduling in PP S c h e d u lin g in P ro d u c tio n P la n n in g M a te ria l R e q u ir e m e n ts P la n n in g S e p a ra te s c h e d u lin g o f p la n n e d o r d e r s E x a c t to th e d a y B a s ic d a te s c a lc u la te d P la n n e d s ta rt d a te P la n n e d d e liv e r y d a te C re a tio n d a te U s e s lo t-d e p e n d e n t/lo t-in d e p e n d e n t in -h o u s e p r o d u c tio n o r re p le n is h m e n t le a d tim e O p tio n a lly u s e b a s ic p la n n in g d a y s fro m th e m a te r ia l m a s te r to im p ro v e p e rfo rm a n c e O p tio n a l c a lc u la tio n o f c a p a c ity re q u ire m e n ts P r o d u c tio n o r d e r m a n a g e m e n t SAP AG t P er io d s O rd e r h e a d e r o p er at io n s L e a d tim e s c h e d u lin g E x a c t to th e s e c o n d B a s e d o n b a s ic d a te M RP M an u al T a rg e t d a te s c a lc u la te d (s c h e d u le d d a te s ) T a rg e t s ta rt d a te T a rg e t fin is h d a te O p e r a tio n s p e c ific d a ta u s e d to c a lc u la te o rd e r d a te s C a p a c ity r e q u ire m e n ts c a lc u la te d m a te ria l c om po n e n ts P RT s c o st s p la n n ed t arg e t a ct u al 100 20 50 Scheduling - Basic Dates S c h e d u lin g : C a lc u la tio n o f B a s ic O rd e r D a te s R e q u ire m e n ts d a te fo r p ro d u c t B a c k w a rd s c h e d u lin g BS BF BS V a ria b le -s iz e p a rt BF P ro d u c t A s s e m b ly BF BS P la n n e d d e liv e ry tim e In -h o u s e p ro d u c tio n tim e In -h o u s e p ro d . tim e T im e F lo a t b e fo re p ro d u c tio n SAP AG E x e c u tio n tim e F lo a t a fte r p ro d u c tio n Scheduling - Production Time S c h e d u lin g : In -H o u s e P ro d u c tio n T im e C a lc u la tio n o f p la n n e d d a te s R e q u ire m e n ts d a te BS BF In -h o u s e p ro d u c tio n tim e fro m m a te ria l m a s te r 10 F lo a t b e fo re p ro d u c tio n 20 30 40 L e a d tim e s c h e d u lin g u s in g ro u tin g 50 F lo a t a fte r p ro d u c tio n C a lc u la tio n o f p ro d u c tio n o rd e r d a te s In -h o u s e p ro d . tim e g re a te r th a n s c h e d u lin g in ro u tin g In -h o u s e p ro d . tim e s m a lle r In c o rre c t in -h o u s e p ro d u c tio n tim e in m a te ria l m a s te r ? SAP AG Planning Process Supply Plant Stock Demand Planning Parameters MRP External Procurement Order Proposal In-House Production Planning Process Production Execution • Stock transfer to WIP location • Order Execution − Production confirmation − Error handling Planning Process Planning Process Production Execution Physical Movement Storage Loc MAIN Storage Loc WIP Production Execution Planned Order Availability Check Convert Order BOM Routings Production Order Move floorstock Work Center Release Avail check Goods issue Production Goods receipt Confirmation TECO Best Practices Logistics Planning Make-To-Stock Discrete Manufacturing Production Subcontracting (External Processing) Rework Processing (Stock-Manufactured Material) Rework Processing (Work-In-Process) Logistics Planning Purpose and Benefits: • Purpose − • Benefits − • The purpose of logistics planning is to make sure that future demand can be satisfied by your company’s available resources and to point out situations where demand cannot be met in time or in the desired quantities. Seamless Integration in complete planning cycle • CO-PA SOP LTP Demand Planning Key process flows covered − − Sales and Operation Planning Long Term Planning Logistics Planning Detailed Process Description: •This process sometimes is called ‘Sales and Operations Planning’. The process usually takes place in a simulative mode and at an aggregated (usually product group rather than end-item) level. Once a feasible production plan is found that satisfies demand it can be used as the basis for operational production planning (MRP and Detailed Capacity Scheduling). •The Best Practice scenarios in this section cover the following planning workflow: Planning/forecasting of future demand Aggregated production planning including capacity check in order to check at product group level if demand can be satisfied (using the SOP functionality) Transfer of results to Long Term Planning (using the LTP module) to enable simulation of material requirements, based on the production plan (s) Planning takes place in separate (simulative) planning versions within LTP Review and adjustments of planned requirements as needed Once the simulated requirements are accepted, the demand (independent requirements) is then transferred to active demand management for detailed MRP Production Planning / Scheduling in the active version. and Logistics Planning – Process Flow Diagram Operational Production Planning & Control (Production scenarios) Revenue Planner Event Periodic Sales and Operations Meeting Sales Qty Budget and Transfer to SOP (with CO-PA), Revenue Planning (172) Strategic Planner SOP Verification Demand Verification (Check Sales Plan) Create Rough-Cut Production Plan Sales Quantity forecast (179) Transfer Rough Cut Production Plan to Inactive Demand Management Create LTP Planning Scenario Evaluate Capacity Planning Execute LTP MRP Operative Productio n Data No Copy to Active Demand Management Acceptable Plan Yes CO-PA = Profitability Analysis, SOP = Sales and Operations Planning, LTP = Long Term Planning, MRP = Material Requirements Planning Make-To-Stock Production with Discrete Manufacturing Purpose and Benefits: • Purpose − • This scenario describes a business process, which is typical for companies with lot-size oriented production. − The production scenario produces a finished good and all dependent components in make-tostock production (MTS). − Furthermore, the scenario is supported by the main cost object controlling functions required, such as preliminary costing and period-end closing. Benefits • − Production triggered by a production plan − Serial number and batch management included − Optional with: quality management, consigned inventory, external processing Key process flows covered − − − − − − Creating Planned Independent Requirements Material Requirements Planning at Plant Level In-House Production (subassembly) In-House final assembly (Finished Good) Capacity Leveling Confirming Assembly Activities Make-To-Stock Production with Discrete Manufacturing Detailed Process Description: This scenario describes a business process, which is typical for companies with lot size oriented production. The production scenarios consist of both goods movements (goods issues and receipts) and confirmation of completion of the production order. Furthermore, the scenario is supported by the main cost object controlling functions required, such as preliminary costing and period-end closing. The typical planning process starts with sales quantity planning. The previous period’s actual sales figures can be used as a basis for future planning. In Sales and Operations Planning, you ensure that production stays in line with sales so that you may create the production plan synchronously to sales. The planning data is transferred from Sales and Operations Planning to Demand Management. Demand Management generates independent requirements, which are used in the subsequent Material Requirements Planning (MRP) run. In material requirements planning, the bill of materials (BOM) for the top-level material demand gets exploded and production is planned right down to procured component level. MRP results in planned orders being generated for the material to be produced. If insufficient warehouse stock is available, purchase requisitions are created for the raw materials required. When the order is created, target costs are calculated for the order lot size (preliminary costing). During the production process, costs incurred are updated on the order, which enables you to keep track of and compare target costs and actual costs at any time. Period-end-closing activities are applied to the order. This includes Work In Progress calculation and variance calculation. After this, Work in Progress is settled to financial accounting and production variances are settled to management and financial accounting. Production Planner Strategic Planner Event Make-to-Stock Production – Discrete Industry – Process Flow Diagram Periodic Plan Revision Beginning of Planning Cycle Creating Planned Independent Requirements Logistics Planning (144) No Material Requirements Planning at Plant Level & Evaluation of Stock / Requirement List Update Capacity Capacit y Levelin g O.k.? 1 Yes MRP List Purchase Requisition Planned Orders Material Available ? Convert Planned Order to Production Order Yes Capacity Leveling Release Production Order Order Print Buyer Confirming Assembly Activities / Final Confirmation Material Staging for Planned Orders Pick List Inventory Consumption @ Standard. Cost Plant WareControl house ler Clerk Manufacturing No Semi-Finished Goods Receipt Goods Issue/ Back flush Goods Receipt Slip Goods Receipt Slip Finished Goods Receipt Inventory @ Standard. Cost Period End Closing “General” Plant (181) Procurement w/o QM (130) Procurement of Stock Material with QM (127) Procurement & Consumption of Cosigned Inventory (139) MM Subcontracting (138) PPSubcontracting (External Processing) (150) Production Supervisor Event Make-to-Stock Production – Discrete Industry – Process Flow Diagram 1 Review Operation List Production Subcontracting (External Processing) Purpose and Benefits: • Purpose − • Benefits − − • During the Manufacturing process, when a "Planned Order" for Production is converted to a "Production Order", the system will check to see if there are any routing/work-center operations which require external processing. External processing is when you have individual production steps, that are operations or sub-operations, which are performed outside of your company by a vendor. This type of processing is particularly important for subcontracting. It can also provide a company with a feasible alternative to in-house processing, if capacity bottlenecks occur. An outline agreement can specify that a certain operation of the production order is executed by an external subcontractor on a regular basis In the case of capacity bottlenecks, the assembly procedure of the finished product can be assigned to a subcontractor Key process flows covered − − − − Creating Purchase Order for External Processing Goods Receipt for “subcontracting” Purchase Order Enter Invoice Periodic Payment Production Subcontracting (External Processing) Detailed Process Description: •Production − − − − − − Subcontracting (External Processing) When a Production Order is scheduled, external operations need to be taken into account. The duration of an external operation is calculated either by using the planned delivery time or using the standard values. The system automatically creates a purchase requisition for the operation or sub-operation that requires external processing. The Production scheduler should inform the buyer they need to check the workload for requisitions that require external processing. When data is maintained for an external activity, a cost element is specified. The cost element determines how the external activity is to be valuated. A decision needs to be made as to whether an operation or suboperation is processed externally via its control key. In the control key, it is determined whether externally processed operations are scheduled on the basis of their standard values or the planned delivery time. This information is needed to settle externally processed operations and sub-operations that have been marked as relevant for costing in their control keys. Purchasing should not convert the purchase requisition until the external processing is required. The reason for this is that any quantity changes on the production order will automatically update the requisition. Once the purchase order is created it is printed and sent to the vendor. The purchase order informs the vendor which service is required. The buyer/planner/scheduler creates a manual shipping document and provides the information to the shipping department on what components need to be gathered for the external processing and ships the components to the vendor. When the vendor has completed the external processing, the material is shipped back. The warehouse clerk receives the externally processed goods back into the warehouse. The vendor service is reflected on the production order via an operation confirmation. The purchase order and the production order show the quantity received. The goods receipt of an externally processed material causes the status of the operation to be updated: For a partial delivery of an external process operation, the status is: EOPD (External operation - partial delivery) and for final delivery of a external process operation the status is: EOFD (External operation final delivery). Production Subcontracting (External Processing) – Process Flow Diagram Accounts Payable Accountant Warehouse Clerk Purchaser Production Supervisor Event Vendor Vendor Receives Material and Performs External Services Perform External Services Ship External Material Back to Plant Production Order Generates Purchase Requisition for External Services Incoming Vendor Invoice Completion Confirmation of Production Order Check Order Operations Create PO from Purchase Req (Vendor assigned by Info record) Ship Material to Vendor Print Purchase Order Subcontract Services GR/IR Goods Receipt for Subcontracting PO Periodic Payment: Accounts Payable (158) Deliver Material Back to Shop Floor GR/IR PPV Vendor PP = Production Planning, RFQ = Request for Quotation, PO = Purchase Order, GR/IR = Goods Receipt/Invoice Receipt, PPV = Purchase Price Variance Invoice Receipt Rework Processing (Work-In-Process) Purpose and Benefits: • Purpose − • Benefits − − − • Processing of defective material on a production order. Scraps at defined operation automatically trigger rework process. After rework, additional activity and material consumption can be confirmed. Fully integrated in the production process Key process flows covered − − − − Confirming Production Activities Confirm Scrap defective material Confirm Parent Order at Rework Operation Continue Shop floor-Activities Rework Processing (Work-In-Process) Detailed Process Description: This scenario focuses on a rework process within production. All required rework activities are related to the parent production order. For this reason, errors are recognized and corrections initiated such as insertion of a rework operation within the same production order. The additional rework operation is confirmed and settled within the original production order, causing production variances within controlling and price differences for the dedicated product. Rework Processing (Work-in-Process) – Process Flow Diagram Confirming Production Activities Event End Process Confirm Parent Production Order for Reworked Quantity That Can Proceed to Subsequent Operations Confirm Scrap Defective Material Shop Floor Specialist No Insert Rework Operation on Parent Production Order Automatically Confirm Parent Production Order at Rework Operation for Non-Defective Quantity Any Complaint Quantity to Be Scrapped? Yes Scrap Defective Quantity that Can’t Be Reworked Continue Shop-FloorActivities for NonDefective-Quantity Rework Processing (Stock-Manufactured Material) Purpose and Benefits: • Purpose − • Benefits − − • This process covers the rework of defective manufactured materials that are found in the warehouse. Transparent costs for rework activities Use of all standard shop-floor control functionalities is possible Key process flows covered − − − − Create rework production order Goods issue for defective material Confirmation of rework production activities Posting goods receipt for rework production order Rework Processing (Stock-Manufactured Material) Detailed Process Description: •Rework •For Processing (Stock-Manufactured Material) materials that can be reworked, a production order is created for correcting the defect. The costs associated with the rework production order will be settled to profitability as a material variance. Production Supervisor floor Warehouse Clerk Shop Specialist Production Planner Event Rework Processing (Stock-Manufactured Material) – Process Flow Diagram Identified Component in Stock Requires Changes Create Rework Production Order End Process Release Rework Production Order Confirmation of Rework Production Activities Posting Goods Receipt for Rework Production Order Goods Issue for defective Material Review Order Confirmations