Make-to-Stock Production –
Process Industry
SAP Best Practices Baseline Package
(China)
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
Scenario Overview – 2
SAP Applications Required

SAP ECC 6.0 EhP3
Company Roles Involved in Process Flows




Production Planner
Warehouse Clerk
Shopfloor Specialist
Strategic Planner
Key Process Flows Covered



Planned Independent Requirements Creation
Material Requirements Planning (MRP)
Make-to-stock production for semi-finished and finished products
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
Strategi Even
c
t
Planner
Beginning of
Planning
Cycle
Production Planner
Make-to-Stock Production – Process Industry
Create
Planned
Independent
Requirement
s
Periodic
Plan
Revision
Logistics
Planning
(144)
Material
Requirements
Planning at
Plant Level &
Evaluation
MRP List
Planned
Orders
Plant
Buyer Contr
oller
Shop Floor
Specialist /
Ware-house
Clerk
Manufac
turing
Purchas
e
Requisiti
on
Capacity
Evaluation
Confirmation
of Production
Inventory
Consumption
@ Std. Cost
Convert
Planned Order
to Process
Order
Change Order
Schedule
No
Capa
city
OK?
Pick List
Goods Issue
of Batch
Managed
Components
Post Goods
Receipt for
Process Order
Goods Issue
Slip
Goods Receipt
Slip
Check Material
Availability
Yes
Mater
ial at
Shopf
loo?
Yes
Material
Staging for
Planned
Orders
No
Multilevel
Order Report
Order List
Inventory @
Standard. Cost
Goods Issue
for Back
Flushed
Components
Period
End
Closing
(181)
Procurem
ent 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