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SAP Best Practices for Discrete Manufacturing V1.605

SAP Best Practices

General Information

SAP Best Practices for Discrete Manufacturing was developed for small and midsize manufacturers to implement a solution quickly and easily. By means of an entry-level offering for manufacturing companies, you gain built-in support for the best business practices in the industry.

FunctionalitiesThe SAP Best Practices for Discrete Manufacturing V1.605 solution supports your business in the following areas :

Materials management Production planning and control Sales and distribution Logistics, product life-cycle management, and quality management Accounting Controlling Forms and reporting

SAP BP for Discrete Manufacturing V1.605Solution Scope (1 of 2)ManufacturingMake-to-Stock Production Discrete Industry Make-to-Order Production with Variant Configuration Make-to-Order Production without Variant Configuration Repetitive Manufacturing Production Subcontracting (External Processing) Rework Processing for StockManufactured Material Rework Processing for Work-inProcess Quality Management (QM) in Discrete Manufacturing Manufacturing with Kanban Supply in Production Planning and Processing of Semifinished Goods Co-Product Manufacturing Tool Production Engineer-to-Order (ETO) Project Assembly Make-to-Stock (MTS) Production with Order Split Records Management Lean Manufacturing: Heijunka Leveling New Scenarios Enhanced Scenarios

SalesSales Processing Using Credit Management Sales Order Processing Sale from Stock Free of Charge Delivery Returns and Complaints Sales Quotation Sales Order Processing for Prospect Sales Processing using Third Party (without Shipping Notification) Sales of Nonstock Item with Order Specific Procurement Debit Memo Processing Foreign Trade Export Processing Customer Consignment Processing Returnables Processing Batch Recall Lean Warehouse Management Sales Order Processing with Customer Down Payment Sales: Period End Closing Operations Credit Memo Processing Handling Unit Management (HUM) for Production Order Sales with Scheduling Agreements Engineer-to-Order (ETO) Quotation Processing Sales Returns with Quality Management (QM) Advanced Customer Returns Management Cash Sales Orders Shipping and Receiving with WM 3rd Party (w. Ship.Not.)

Materials ManagementBatch Management Serial Number Management Quality Management for Procurement with Vendor Evaluation Quotation for Procurement Consumable Purchasing Procurement without QM Stock Handling: Scrap and Blocked Stock Procurement Contract Stock Transfer with Delivery Stock Transfer without Delivery Return to Vendor Physical Inventory/ Inventory Count and Adjustment Subcontracting Procurement & Consumption of Consigned Inventory Foreign Trade Import Processing Purchasing with JIT Delivery Schedules Advanced Batch Management Outsourced Manufacturing Third-Party Order Processing with Subcontracting

Financial AccountingGeneral Ledger Accounts Receivable Accounts Payable Cash Management Asset Accounting Asset Acquisition through Direct Capitalization Asset Acquisition for Constructed Assets (Investment Orders) Activate Document Splitting Cost of Sales Accounting Segment Reporting Internal Order R&D Actual Overhead Cost Accounting Actual Period End Closing Financial Accounting Period End Closing Projects Internal Order for Marketing and Other Overhead Actual Activate Document Splitting for Discrete Manufacturing

ControllingPurchased Material Price Planning General Cost Center Planning

AnalyticsSAP ERP Reports for Accounting SAP ERP Reports for Logistics

Manufacturing Cost Center Planning Internal Order R&D Planning Internal Order for Marketing and Other Overhead Planning Standard Cost Calculation

Research and Dev.Internal Product Development

SAP BP for Discrete Manufacturing V1.605Solution Scope (2 of 2)Cross FunctionsPeriod End Closing Activities Period End Closing General Plant Inventory Valuation for Year End Closing Time Recording Travel Management

ServicesSpot Consulting with Fix Priced Billing Internal Project Internal Maintenance Service with Time & Material Based Billing Service with Fixed Price Billing Procurement of Third-party Resources External Procurement Services Depot Repair Period End Closing Service Orders Maintenance and Warranty Processing Easy Depot Repair

Industry-Specific Scenarios (1 of 3)New Scenarios Enhanced Scenarios

SAP Best Practices for Discrete Manufacturing V1.605 provides the following industry-specific scenarios:

226: Handling Unit Management (HUM) for Production Order 227: Quality Management in Discrete Manufacturing 229: Advanced Batch Management 230: Purchasing with JIT Delivery Schedules 231: Sales with Scheduling Agreements 232: Engineer-to-Order (ETO) Quotation Processing 240: Engineer-to-Order (ETO) Project Assembly 233: Manufacturing with KANBAN Supply into Production 234: Planning and Processing of Semifinished Goods 235: Co-Product Manufacturing

SAP 2011 / Page 5

Industry-Specific Scenarios (2 of 3)New Scenarios Enhanced Scenarios

SAP Best Practices for Discrete Manufacturing V1.605 provides the following industry-specific scenarios:

236: Tool Production 237: Sales Returns with Quality Management (QM) 238: Cash Sales Order 239: Shipping and Receiving with Warehouse Management 248: Make-to-Stock Production with Order Split 249: Outsourced Manufacturing 250: Advanced Customer Returns Management 252: Third-Party Order Processing with Subcontracting 253: Lean Manufacturing: Heijunka Leveling 661: Records Management

SAP 2011 / Page 6

Industry-Specific Scenarios (3 of 3)New Scenarios Enhanced Scenarios

SAP Best Practices for Discrete Manufacturing V1.605 provides the following industry-specific scenarios:

245: Activate Document Splitting for Discrete Manufacturing 274: Maintenance and Warranty Processing 275: Easy Depot Repair

SAP 2011 / Page 7

Handling Unit Management (HUM) for Production (226)Purpose and Benefits:Purpose

Handling Unit Management (HUM) is used to control logistical processes. A handling unit represents a physical object in the SAP system. It consists of a load carrier, one or more packed products and an unlimited quantity of packaging materials. Each handling unit has a unique identification number, which is typically printed as a barcode on a material tag. You can specify the material and the quantity that is to be packed in certain packaging, that is, in one handling unit. These requirements are reproduced in a packing instruction. This packing instruction can be used to create handling units automatically.

Benefits

Automatic packaging according to packing instructions Track movements of groups of individual materials by tracking the handling units that contain them Full integration into the logistic chain The scenario offers you the possibility to demonstrate HUM with or without warehouse management

Key process flows covered

Creation and release of production order for handling unit (HU) production HU packaging in production order Goods receipt for produced HU Monitoring of HU Confirming production of HU HU handling with WM or HU handling without WM

Quality Management in Discrete Manufacturing (227)Purpose and Benefits:Purpose

This scenario deals with quality inspection activities during the production process. Quality activities are required both when a product is manufactured in-house and when the production involves external processing where parts of the production process are done by a subcontractor.

Benefits

Two sub-scenarios to cover both goods acceptance and goods rejection or acceptance and rejection of the external processing respectively. Quality Notification to track quality issues, and trigger further actions, such as re-work or scrapping

Key process flows covered

QM for goods receipt of production order QM with In-process control QM for goods receipt of external processing Acceptance and rejection of goods/ external processing work are both covered

Advanced Batch Management (229)Purpose and Benefits:Purpose

You get the complete batch history data including the evolution of a batch, by considering all relevant batch-related object types (BRO types) maintained in different SAP and external systems.

Benefits

To track the transactional data related to batches To find out where a batch was used, e.g. to perform a batch recall or for evaluation purposes To find out where a batch is used, e.g. in which stocks or inspection lots or material documents To have a single point of batch maintenance

Key process flows covered

Batch information cockpit with Batch History

Purchasing with JIT Delivery Schedules (230)Purpose and Benefits:Purpose

This scenario focuses on JIT procurement. It describes an inbound process in a typical repetitive manufacturing environment.

Benefits

Streamlined demand flow from customer to supplier High integration of customers and suppliers supply chain managed by cumulative quantities Shorter process times Reduction of inventories to a minimum

Key process flows covered

Create scheduling agreement for vendor material Update scheduling agreement with forecast and JIT delivery schedules Enable traceability via batch or serial number assignment Create Scheduling Agreement Release Print and Transmit Scheduling Agreement to vendor Goods receipt posting with reference to scheduling agreement Billing

Sales with Scheduling Agreements (231)Purpose and Benefits:Purpose

Scheduling agreements are widely used in Discrete Industries. This scenario focuses on a order-to-invoice cycle. It describes an o

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