Production
General Overview
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SAP Overview
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SAP Business Processes - Production
 PP – Production Planning
 Sales and Operations Planning
 Demand Management
 Master Production Schedule
 Material Requirements Planning
 Planned Orders
 Production Orders and Purchase Requisitions
 MM – Materials Management
 Purchasing
 Goods Receipt
 Invoice Verification
 FI – Financial
 Payment Processing
 Inventory Valuation
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Business Processes
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Organizational Levels
 Client -
Unit with its own data, master records and own
set of tables
 Company – Independent accounting unit within a client
 Plant – Organizational logistics unit
 Storage Location – Separates material stocks within
a plant
 Purchasing Organization –
A legal procurement
entity
 Purchasing Group – A buyer or group of buyers
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SAP IDES Organizational Structure
Client
801
1000
Germany
2000
Great Britian
1300
Frankfurt
1000
Hamburg
0001
Material
0002
Finished Goods
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3000
United States
0003
Goods Receipt
SAP Stored Data
 Data Dictionary
 Meta Data
 Data on the structure of User Tables
 User Data
 Master Data
 Data that does not change much
 Examples include Vendors, Customers, Material
 Transaction Data
 Data that pertains to events and actions
 Examples include Purchase Orders, Invoices, Production
Orders
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Manufacturing Master Data
 Material Master
 Contains data on every item bought, sold, built, used in the business.
 Heart of the SAP system
 Bill of Material (BOM)
 Hierarchical structure of components to build a product
 Work Center
 A physical place or group were work activity takes place
 Routing
 The path taken through various work centers in the assembly of a
component or product
 Cost Center
 A logical area of cost behavior for labor, setup and machine time
associated with activity that can be assigned to work centers.
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Material Master Data
 The material master is the heart of the SAP system.
 Any item maintained (bought, sold, produced, stored)
must be in the material master.
 Material Master Consists of data such as:
 Material ID, Material Description, Unit of Measure,
 Weight, Standard Cost, Average Cost, Production Time,
 Lead Time, Material Type, Inventory Level, Planning Type
 Material Master has many views that can be updated by
various areas depending on their use of the data.
 Production
 Purchasing
 Accounting
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Material Master Views
 Basic Data
 Purchasing
 Material Resource Planning  Sales
 Stocks in Inventory
 Work Scheduling
 Accounting
 Quality Management
 Storage
 Forecasting
 Warehouse Management
 Classification
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Material Master Data
 Purchasing data for ordering
 Inventory management data for posting goods
movement and managing inventory
 Accounting data for material valuation
 MRP data for Material Requirements Planning
 Data is used by many areas of the business
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Material Master Basic 1 Data View
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Material Master Purchasing View
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Material Master Accounting View
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Material Master Storage Location View
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Material Master Plant Stock View
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Material Master Plant Data Store View
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Material Master MRP 1 View
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Material Master MRP 2 View
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Material Master Org Levels
 Data valid for the entire company
 Material No, Desc, units of measure
 Data valid for a plant
 Purchasing, MRP, forecasting, work scheduling
 Data valid for a storage Location
 Storage Bin configuration and types
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Some Different Material Types in SAP
 Raw Materials
 Operating Supplies
 Semi-finished Goods
 Finished Goods
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The Material Type controls the following:
 Whether the material is intended for a specific purpose, for example,
as a configurable material or process material
 Whether the material number can be assigned internally or
externally
 The number range from which the material number is taken
 Which screens appear and in what sequence
 Which departmental data you may enter
 What procurement type the material has; that is, whether it is
manufactured in-house or procured externally, or both
 Which accounts are posted when posted to stock or leaves
inventory
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The Industry Sector controls the following:
 Mechanical Engineering
 Plant Engineering
 Chemical Industry
 Controls which screens and in which order
 Controls display of industry-specific fields
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Bill of Material

Structured list of components that make up a product or assembly

Single Level

A BOM in SAP can consist of multiple Single Level BOMs
Header
Item
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Item
The BOM is used in:
 MRP
 Explodes the product demand to its lower level assemblies and
purchased components
 Work Scheduling
 Exploded demand is used to determine production schedules
 Procurement
 Exploded demand can drive purchase requisitions and lines
items for blanket purchase orders.
 Product Costing
 Exploded relationships can be used to roll up costs of lower
level assemblies and components
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Sample of BOM using Wagon Parts
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SAP Create BOM Level I - Wagon
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SAP Create BOM Level II – Axle Assembly
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BOM – Graphical View
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