Make-to-Stock Production –
Process Industry
SAP Best Practices Baseline Package
SAP Best Practices
Scenario Overview – 1
Purpose and Benefits:
Purpose


This scenario provides an integrated platform for batch-oriented process manufacturing. This
supports processes in the following manufacturing industries, chemical, pharmaceutical, food
and beverage industries as well as the batch-oriented electronics industry.
The Sales and Operation Planning process results in independent requirements which are
used in material requirement planning (MRP). Planned orders are converted to process orders
for manufacturing execution. Material provisioning to the shop floor follows a similar process
to that of repetitive manufacturing leveraging the pull list and automatic goods issues and
goods receipts at time of order confirmation. Customer orders decrease the planned
independent requirements at time of order entry and cost of sales is recognized in profitability
at time of invoicing.
Benefits



Recipe-oriented production
Materials handled in batches according to a recipe specified for the appropriate production
quantity
Cost Object Controlling
Key process flows covered



Planned Independent Requirements Creation
Material Requirements Planning (MRP)
Make-to-stock production for semi-finished and finished products
Scenario Overview – 2
SAP Applications Required:
Required

SAP enhancement package 4 for SAP ERP 6.0
Company roles involved in process flows




Production Planner
Production Supervisor
Warehouse Clerk
Shop Floor Specialist
Scenario Overview – 3
Detailed Process Description:
Make-to-Stock Production – Process Industry







Sales-order-independent production using MTS (Make-to-stock) production /
process order processing
MRP planning with planned independent requirements gives planned orders
for production as well as purchase requisitions for raw materials
Planned orders are converted into process orders
Components are staged to the shop floor location
Batch-management components are issued at production start immediately,
semi-finished and finished products produced, in conjunction with batch
management
Backflushing is used for the packaging material (without batch management)
at finished product confirmation
Process order confirmation triggers order controlling and settlement
Process Flow Diagram
Logistics
Planning
(144)
Material Requirements
Planning at Plant Level
& Evaluation of Stock /
Requirement List
Create
Planned
Independent
Requirements
Purchase
Requisition
Shop Floor
Specialist / Warehouse Clerk
Plant
Custom Control
er
ler
Convert
Planned Order
to Process
Order
Change Order
Schedule
MRP List
Check Material
Availability
No
Capacity
Leveling
OK?
Planned
Orders
Shop Floor Prod.
Specialist Superv.
Production Planner
Periodic Plan
Revision
Beginning of
Planning Cycle
Strategic
Planner
Event
Make-to-Stock Production – Process Industry
Material at
Shopfloor
Location?
Yes
Capacity
Evaluation
No
Yes
Confirmation of
Production
Inventory
Consumption
@ Std. Cost
Goods Issue of
Batch Managed
Components
Post Goods
Receipt for
Process Order
Goods
Issue
Slip
Goods
Receipt
Slip
Inventory @
Standard. Cost
Pick
List
Material
Staging for
Planned Orders
Order
List
Multilevel Order
Report
Goods Issue for
Back Flushed
Components
Period End
Closing
“General”
Plant
(181)
Procurement
w/o QM
(130)
Legend
<Function>
Symbol
Description
Usage
Comments
Band: Identifies a user role, such as Accounts
Payable Clerk or Sales Representative. This band
can also identify an organization unit or group,
rather than a specific role.
Role band
contains tasks
common to that
role.
Symbol
Diagram
Connection
The other process flow symbols in this table go into
these rows. You have as many rows as required to
cover all of the roles in the scenario.
Hardcopy /
Document
External
to SAP
External Events: Contains events that start or end the
scenario, or influence the course of events in the
scenario.
Business
Activity /
Event
Flow line (solid): Line indicates the normal sequence
of steps and direction of flow in the scenario.
Flow line (dashed): Line indicates flow to infrequentlyused or conditional tasks in a scenario. Line can
also lead to documents involved in the process flow.
Connects two
tasks in a
scenario
process or a
non-step event
Business Activity / Event: Identifies an action that
either leads into or out of the scenario, or an outside
Process that happens during the scenario
Does not
correspond to a
task step in the
document
Unit Process: Identifies a task that is covered in a
step-by-step manner in the scenario
Corresponds to
a task step in
the document
SubProcess
Reference
Proces
s
Decisio
n
Usage Comments
To next / From last Diagram: Leads
to the next / previous page of the
Diagram
Flow chart continues on the next /
previous page
Hardcopy / Document: Identifies a
printed document, report, or form
Does not correspond to a task
step in a document; instead, it is
used to reflect a document
generated by a task step; this
shape does not have any outgoing
flow lines
Financial Actuals: Indicates a
financial posting document
Does not correspond to a task
step in a document; instead, it is
used to reflect a document
generated by a task step; this
shape does not have any outgoing
flow lines
Budget Planning: Indicates a
budget planning document
Does not correspond to a task
step in a document; instead, it is
used to reflect a document
generated by a task step; this
shape does not have any outgoing
flow lines
Manual Process: Covers a task
that is manually done
Does not generally correspond to
a task step in a document;
instead, it is used to reflect a task
that is manually performed, such
as unloading a truck in the
warehouse, which affects the
process flow.
Existing Version / Data: This block
covers data that feeds in from an
external process
Does not generally correspond to
a task step in a document;
instead, this shape reflects data
coming from an external source;
this step does not have any
incoming flow lines
System Pass / Fail Decision: This
block covers an automatic
decision made by the software
Does not generally correspond to
a task step in the document;
instead it is used to reflect an
automatic decision by the system
that is made after a step has been
executed.
Financial
Actuals
Budget
Planning
Manual
Proces
s
Unit Process
Process
Reference
Description
Process Reference: If the scenario references another
scenario in total, put the scenario number and name
here.
Sub-Process Reference: If the scenario references
another scenario in part, put the scenario number,
name, and the step numbers from that scenario here
Process Decision: Identifies a decision / branching
point, signifying a choice to be made by the end
user. Lines represent different choices emerging
from different parts of the diamond.
Corresponds to
a task step in
the document
Corresponds to
a task step in
the document
Does not
usually
correspond to a
task step in the
document;
Reflects a
choice to be
made after step
execution
Existing
Version /
Data
System
Pass/F
ail
Decisio
n
Appendix
Master Data Used - Product Structure
B
Exp. date
F29
Finished Good MTS PI
(FERT-PD)
Master Recipe MR-50002/1 - Packing
FIFO
R15
RAW Material
B
S24
Semifinished Good,
Liquid
(HALB-PD)
(ROH - PD)
Master Recipe MR-50001/1 – Mixing / Bottling
FIFO
FIFO
B
LQ Lean QM
B
Batch Management
B
R09
R19
RAW Material
(ROH - PD)
RAW Material
(ROH - PD)
LQ
FIFO
R30
B
RAW Material,
Reorder Point
(ROH - VB)
Bulk
Material