Production Planning Master Data EGN 5620 Enterprise Systems Configuration Fall, 2015

Business Module for Selling Finished Goods by Production January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC All rights reserved. 2 Pre-Sales Activity Sales Order DeliveryBilling Planned Order Production Order Completion Confirmation In Inventory Plant or Warehouse Availability Check NO YES Goods Issued to Delivery Goods from Production Order General Ledger Accounts Inventory Postings Accounts Receivable Issue Goods to Production Order Purchase Requisition Purchase Order Goods Receipt Invoice Receipt Accounts Payable NO Or Request for raw materials

Production and Planning Master Data SAP Implementation Production and Planning Master Data SAP Implementation

Business Process Integration January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC All rights reserved. 4 MM PP SD Org Data Rules MM PP SD Master Data MM PP SD FISD MM FI PP

GBI PP Org. Data January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC All rights reserved. 5 PP Org Data PP

PP Organizational Data Client ◦An independent environment in the system Company Code ◦Smallest org unit for which you can maintain a legal set of books Plant ◦Operating area or branch within a company  Manufacturing, distribution, purchasing or maintenance facility  Run MRP/MPS Storage Location ◦An organizational unit allowing differentiation between the various stocks of a material in a plant Work Center ◦An organizational unit that defines where an operation is performed ◦Has an available capacity ◦Activities performed are valuated by charge rates, which are determined by cost centers and activity types. ◦Can be machine, groups of machines, people, production lines or groups of craftsmen

GBI Structure for PP Global Bike Global Bike Inc.Global Bike Germany GmbH DallasHeidelberg Client Company Code Plant Storage Location Raw Materials Semi-fin. Goods Finished Goods Miscellaneous Raw Materials Semi-fin. Goods Finished Goods Miscellaneous Assembly Packaging Inspection Assembly Packaging Inspection (Work Center)

Organization Data Plant-specific organizational units ◦MRP controller ◦Production controller ◦Production scheduler ◦Planner group ◦Person responsible (financially) January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC All rights reserved. 8

GBI PP master data January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC All rights reserved. 9 PP Master Data PP

Master Data for Production Planning Material Bill of Materials (BOM) Work Center Routing Product Group January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC All rights reserved. 10

Material Data (Review) Definition ◦Physical objects to buy, transform into, sell, maintain other resources, or use in support for business activities. Generic classification(material types) : ◦Trading goods ◦Raw materials ◦Semi-finished products (WIPs) ◦Finished products ◦Consumables (e.g., stationery, production tools) ◦Spare parts (for maintenance)

Bill of Materials BOM is a hierarchical structure of the materials needed to produce a finished goods or semi-finished goods. BOMs in SAP are defined as single-level, but can be constructed multi-level by nesting several single-level BOMs. January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC All rights reserved. 12

Bill of Materials: T-code CS03 January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC All rights reserved. 13 Ict – Item category L - item category Asm – Assembly Indicator: the component in this item has its own BOM.

BOM: Product Structure (CSMB) January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC All rights reserved. 14

Bill of Material Master Data BOM in SAP consists of a header section and an item section. Header section includes data that apply to entire BOM, such as finished material number, plant, usage, validity, status, and base quantity. Usage identifies the purpose for which the BOM can be used. For example, 1 is for production. Base quantity: Quantity to which all component quantities in a BOM relate. The BOM is valid from the date specified in the header. January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC All rights reserved. 15

Bill of Materials Master Data Items section identifies all materials needed to make finished goods or semi-finished goods identified in the header. Data for each item are: ◦item category, ◦material number, ◦description, & ◦Quantity Item category ◦Tell how material is used in the BOM. January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC All rights reserved. 16

Where to use BOM? 1. MRP uses BOM to determine dependent requirements 2.Routing uses BOM to determine material allocation for each operation 3.Controlling uses BOM to calculate product costs 4.Production uses BOM to issue the proper quantities of components and raw materials to the shop floor January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC All rights reserved. 17

◦Several products with a large proportion of identical parts. Single-Level Variant Bill of Materials Deluxe Bike (red) Handle Bar Aluminum Wheel Frame red Chain Derailleur Gear Assembly Warranty Doc.Seat Kit Brake Kit Pedal Assembly Packaging Single-Level Professional Bike (black) Handle Bar Carbon Wheel Frame black Chain Derailleur Gear Assembly Warranty Doc.Seat Kit Brake Kit Pedal Assembly Packaging

Work Center Work center is a location where value-added work for producing a finished or semi-finished product is carried out. A work center is a resource that can be used for a variety of purposes and for multiple processes. A work center can be a machine, a group of machines, an entire production line, a work area, or a person or group of people who are responsible for completing operations. January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC All rights reserved. 19

Work Center - Capacities Work center used to define capacities ◦Labor ◦Machine ◦Output ◦Emissions Capacities used in ◦Capacity requirements planning (CRP) ◦Detailed scheduling ◦Costing January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC All rights reserved. 20

Work Center – Where used Work Center is used: ◦To be assigned in routing for each operation ◦To be linked to cost center ◦To be allocated with Human Resources (HR)  Positions with requirements  People with qualifications January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC All rights reserved. 21

Work Center Views Work Centers have multiple views of: ◦Basic data ◦Default values ◦Capacity overview ◦Scheduling ◦Cost center assignment ◦Technical data January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC All rights reserved. 22

Work Center – Basic data January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC All rights reserved. 23

Work Center – Default Values January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC All rights reserved. 24

Work Center - Capacities/Scheduling January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC All rights reserved. 25

Work Center - Costing January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC All rights reserved. 26

Product Routing A list of tasks or operations that must be performed to convert a material to a part, component, or product. Routing is a sequence of operations which detail the manufacture of a product Routings are used as a template for production orders and run schedules as well as a basis for product costing. January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC All rights reserved. 27

Routing Routing are used to determine:  Operations  Work centers  Material components  Production resources and tools  Quality Checks January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC All rights reserved. 28

Routing – an Example Routing for Finished Bike Operation Work Center Plant Control Key Description Time and Unit of Measure Activity Type

Routing Use Routings will be used in ◦Scheduling (dates, times) ◦Costing ◦Capacity planning ◦Production orders January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC All rights reserved. 30

Routing January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC All rights reserved. 31 Standard Sequence Alternate Sequence Parallel Sequence Operation 10 Operation 20 Operation 30 Operation 40 Operation 10 Operation 20 Operation 30 Operation 40 Operation 25 Operation 20 Operation 10 Operation 30 Operation 40 Operation 25

Material Types Allowed in Production Multiple material types may be used in a routing/BOM  Raw materials  Semi-finished product  Trading goods are allowed but not standard  Text or Reference materials common January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC All rights reserved. 32

Controlling Activities for Production Used to perform internal cost allocation, where activities by a cost center are measured ◦Labor time ◦Machine hours Prices (costs) for planned activities ◦Fixed or Variable  Labor = $$/hour  Machine = $/hour  Overhead = % January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC All rights reserved. 33

Activity Type/Price Planning January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC All rights reserved. 34

Product Group Product group is defined for aggregating plan that group together materials or other product groups (Product Families) ◦Manufacturing procedure ◦Product design Proportional Factors (Percentages for components)

Product Groups January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC All rights reserved. 36 Multi-level or single-level –A product group is multi-level if it contains other product groups –Lowest level in a product group hierarchy always consists of materials. –A product group is single-level if its members are materials only

Production Group January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC All rights reserved. 37

PP Rules PP Rules January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC All rights reserved. 38 PP Rules PP

MRP Control Parameters MRP 1 view ◦MRP type ◦Planning time fence ◦MRP Controller ◦Lot size MRP 2 view ◦Procurement type ◦In-house production ◦SchedMargin key: Key that the system uses to determine the floats required for scheduling an order. MRP 3 view ◦Period indicator ◦Availability check January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC All rights reserved. 39

MRP 1 View January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC All rights reserved. 40

MRP 2 View January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC All rights reserved. 41

MRP 3 View January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC All rights reserved. 42

MM Planning Parameters Materials Requirements Planning views ◦for materials Work Scheduling views for finished and semi-product ◦for manufactured products January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC All rights reserved. 43

GBI, Inc. GBI, Inc. Production and Planning Master Data

GBI. Organizational Structures Plant (DL## /MI##/SD## _) Client (330) Chart of Accounts (GL##) Company Code (US##) Fiscal Year Variant (K1) Credit Control Area (GL##) Purchasing Organization (US##) Purchasing Group (N##) Controlling Area (NA##) RM##FG## Work Center Work center (ASSY/INSP/PACK /MANT/SERV) Shipping Point (DL##/MI##/SD##) SF## TG## MI## ASSM10##PACK10## INSP10##

Routing January 2008 © SAP AG - University Alliances and The Rushmore Group, LLC All rights reserved. 46

PPP Orders Planned Order (planning) ◦A request created in the planning run for a material in the future (converts to either a production or purchase order) Production Order (execution) ◦A request or instruction internally to produce a specific product at a specific time Purchase Order (execution) ◦A request or instruction to a vendor for a material or service at a specific time

Exercises: (Due Date – 9/19/2015) 1. Determine work center location 2. Create activity type 3. Change activity output/prices 4. Determine person responsible 5. Create capacity 6. Create work centers 7. Create MRP views for raw materials 8. Create semi-finished goods 9. Create finished goods 10. Create bill of materials 11. Create product routings 12. Create product groups