1. Module 11 Configuration for MRP

2. Semi-finished Materials  Dough is a semi-finished material: ## NRG–A (case) ## Dough NRG–A (lb) ## Oats (lb) ## Wheat Germ (lb) ## Cinnamon (lb) ## Nutmeg (lb) ## Cloves (lb) ## Honey (gal) ## Vit/Min Powder (lb) ## Carob Chips (lb) ## Raisins (lb) ## Canola (gal) NRG-A: Finished Snack Bars Dough NRG-A: Semi-finished Raw Materials

3. Semi-finished Materials  Finished Materials: ## NRG-A and ## NRG-B Snack bars, which are manufactured in-house and sold  Semi-finished Materials: ## DoughNRG-A and ## Dough NRG-B Dough, which is mixed from raw materials and used to make snack bars Neither purchased nor sold  Raw materials: ## Oats, ## Wheat Germ, etc. Materials which are purchased and used to make the semi-finished dough

4. Production Master Data Material Master Work Center Bill of Material Routing Capacity Planning Orders Product Costing Capacity planning and product costing are not considered in this course All four types of production master data are required to execute production planning and scheduling

5. Bill of Material (BOM)  BOMs are represented as single-level relationships between a material and it’s components and sub-assemblies ## NRG–A (case) ## Dough NRG–A (lb) ## Oats (lb) ## Wheat Germ (lb) ## Cinnamon (lb) ## Nutmeg (lb) ## Cloves (lb) ## Honey (gal) ## Vit/Min Powder (lb) ## Carob Chips (lb) ## Raisins (lb) ## Canola (gal) BOM for NRG-A BOM for Dough NRG-A

6. Bill of Material (BOM)  BOMs are represented as single-level relationships between a “parent material” and it’s components and sub-assemblies, known as “children”.  In SAP, the BOM is referred to by the parent component.  Complicated BOMs are built up level-by-level ## NRG–A (7 cases) ## Dough NRG–A (500 lbs) BOM for ## NRG-A Parent Child

7. Bill of Material (BOM)  Both the quantity and unit of measure for the parent component and the quantity and unit of measure for the child component must be entered when creating the BOM  Combined with the ability to define alternate units of measure, this method of defining the BOM provides a high degree of flexibility ## NRG–A (7 cases) ## Dough NRG–A (500 lbs) BOM for ## NRG-A Quantity and Unit of Measure Quantity and Unit of Measure

8. Bill of Material (BOM)  The quantity and unit of measure for the parent component are entered in the header of the BOM as the base quantity—7 cases in this example.

9. Bill of Material (BOM)  The quantity and unit of measure for child components are entered in the item overview of the BOM—500 lb. of dough in this example.

10. Bill of Material (BOM)  In the BOM for Dough, there are a number of child components:

11. Work Centers and Storage Locations for Fitter Snacker  Raw Materials are stored in storage location 100  Semi-finished materials are produced on the Mixers workcenter and stored in storage location 200  Finished materials are produced on the Bakeline workcenter and stored in storage location 300

12. Work Centers and Storage Locations for Fitter Snacker Raw Material Warehouse (100) Mixer FormBakePack Finished Goods Warehouse (300) Snack Bar Line Production (200)

13. Workcenters  Production is carried out at workcenters.  In the SAP R/3 system, workcenters could represent machines or groups of machines, production lines, assembly lines, employees or groups of employees.  Workcenters have capacities defined and assigned that can be used for planning to make sure the there is sufficient capacity available for the production orders that are released.

14. Routings  Routings specify the workcenters a material must be routed through to be produced  It also specifies the capacity needed to process a production order: Capacity Required Workcenter Visited

15. Capacity  Workcenters define the available capacity in the production facility  Routings define the capacity required by a particular production order  Capacity planning involves scheduling production orders so that the capacity required by production orders does not exceed the capacity available at workcenters

16. Material Assignment  The routing also determines at which operations material that is needed in production can be issued.  The material required is determined from the BOM.  The routing defines when it can be used.

17. Material Material Assignment OP 0010 OP 0020 OP 0030 OP 0080 OP 0090 …….. Material OP 0010 OP 0020 OP 0030 OP 0080 OP 0090 …….. Material Assigned via BOM: All materials assigned to first operation Assigned via Routing: Materials can be assigned to specific operations

18. Material Assignment Materials a selected in the Material Component Overview Screen, then assigned to an operation number in the routing. Operations are numbered 10, 20, 30, etc. by SAP to allow new operations to be inserted in a routing without having to renumber all operations.