process overview production planning

8/11/2019 Process Overview Production Planning

http://slidepdf.com/reader/full/process-overview-production-planning 1/22

Make-to-Stock Production – Discrete Industry

SAP Best Practices



© 2013 SAP AG. All rights reserved. 2

Purpose, Benefits, and Key Process Steps

Purpose This scenario describes a business process, which is typical for companies with lot-size

oriented production.

The production scenario produces a finished good and all dependent components in make-to-stock production (MTS).

Furthermore, the scenario is supported by the main cost object controlling functions

required, such as preliminary costing and period-end closing.

Benefits Production triggered by a production plan

Serial number and batch management included

Optional with: quality management, consigned inventory, external processing

Key Process Steps Creating Planned Independent Requirements

Material Requirements Planning at Plant Level

In-House Production (subassembly)

In-House final assembly (Finished Good)

Capacity Leveling

Confirming Assembly Activities




Required SAP Applications and Company Roles

Required SAP Applications

Enhancement package 6 for SAP ERP 6.0

Company Roles

Production Planner

Production Supervisor Shop Floor Specialist

Warehouse Clerk

Strategic Planner

Engineering Specialist




Detailed Process Description

Make-to-Stock Production – Discrete IndustryThis scenario describes a business process, which is typical for companies with lot sizeoriented production. The production scenarios consist of both goods movements (goodsissues and receipts) and confirmation of completion of the production order. Furthermore, the scenario is supported by the main cost object controlling functions required, such as

preliminary costing and period-end closing.

The typical planning process starts with sales quantity planning. The previous period’s actual salesfigures can be used as a basis for future planning.

In Sales and Operations Planning, you ensure that production stays in line with sales so that you maycreate the production plan synchronously to sales. The planning data is transferred from Sales andOperations Planning to Demand Management. Demand Management generates independentrequirements, which are used in the subsequent Material Requirements Planning (MRP) run.

In material requirements planning, the bill of materials (BOM) for the top-level material demand getsexploded and production is planned right down to procured component level. MRP results in plannedorders being generated for the material to be produced.

If insufficient warehouse stock is available, purchase requisitions are created for the raw materialsrequired. When the order is created, target costs are calculated for the order lot size (preliminary

costing). During the production process, costs incurred are updated on the order, which enables you to keep track

of and compare target costs and actual costs at any time.

Period-end-closing activities are applied to the order. This includes Work In Progress calculation andvariance calculation.

After this, Work in Progress is settled to financial accounting and production variances are settled tomanagement and financial accounting.




Process Flow DiagramMake-to-Stock Production – Discrete Industry

M a n u f a c t u r i n g

E v e n t

P l a n t

C o n t r

o l l e r

Period EndClosing

“General”Plant(181)

MaterialRequirements

Planning at PlantLevel & Evaluation ofStock / Requirement

List

Beginning ofPlanning

Cycle

PurchaseRequisiti

on

MRP List

Inventory @Standard. Cost

P r o d u c t i o n P l a n n e r

Periodic PlanRevision

ReleaseProduction

Order

CapacityLeveling

MaterialStaging for

PlannedOrders

ConfirmingAssemblyActivities / Final

Confirmation

Semi-FinishedGoods Receipt

Goods Issue/Back flush

UpdateCapacity

Goods ReceiptSlip

Pick List

Order PrintPlannedOrders

Capacity

Leveling O.k.?

MaterialAvailabl

e?

B

u y e r

W a r e -

h o u s e

C l e r k Goods Receipt

Slip

Procurementof Stock

Material withQM (127)

Procurement&

Consumptionof Cosigned

Inventory(139)

S t r a t e g i c

P l a n n e r Creating

PlannedIndependent

Requirements

ConvertPlanned Orderto Production

Order

InventoryConsumption@ Standard.

Cost

Procurementw/o QM

(130)

FinishedGoods Receipt

MMSubcontracti

ng (138)

PP-Subcontracting (ExternalProcessing)

(150)

No

Yes

No

Yes

LogisticsPlanning

(144)

1




Process Flow DiagramMake-to-Stock Production – Discrete Industry

P r o d u c t i o n

S u p e r v i s o r

1Review

Operation List

E v

e n t


http://slidepdf.com/reader/full/process-overview-production-planning 7/22© 2013 SAP AG. All rights reserved. 7

Legend

Symbol Description Usage Comments

To next / From last Diagram: Leadsto the next / previous page of theDiagram

Flow chart continues on the next /previous page

Hardcopy / Document: Identifies aprinted document, report, or form

Does not correspond to a taskstep in a document; instead, it isused to reflect a documentgenerated by a task step; thisshape does not have any outgoingflow lines

Financial Actuals: Indicates afinancial posting document


Budget Planning: Indicates abudget planning document


Manual Process: Covers a taskthat is manually done

Does not generally correspond toa task step in a document;instead, it is used to reflect a taskthat is manually performed, suchas unloading a truck in thewarehouse, which affects theprocess flow.

Existing Version / Data: This blockcovers data that feeds in from anexternal process

Does not generally correspond toa task step in a document;instead, this shape reflects datacoming from an external source;this step does not have anyincoming flow lines

System Pass / Fail Decision: Thisblock covers an automaticdecision made by the software

Does not generally correspond toa task step in the document;instead it is used to reflect anautomatic decision by the systemthat is made after a step has beenexecuted.

E x t e r n a l

t o S A P

BusinessActivity / Event

Unit Process

ProcessReference

Sub-Process

Reference

ProcessDecision

DiagramConnection

Hardcopy /Document

FinancialActuals

BudgetPlanning

ManualProcess

ExistingVersion /

Data

SystemPass/FailDecision

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.

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.

Role band contains

tasks common to that

role.

External Events: Contains events that start or end

the scenario, or influence the course of events in

the scenario.

Flow line (solid): Line indicates the normal sequence

of steps and direction of flow in the scenario.

Flow line (dashed): Line indicates flow to

infrequently-used or conditional tasks in a

scenario. Line can also lead to documents involved

in the process flow.

Connects two tasks ina scenario process ora non-step event

Business Activity / Event: Identifies an action thateither leads into or out of the scenario, or anoutside Process that happens during the scenario

Does not correspondto a task step in thedocument

Unit Process: Identifies a task that is covered in astep-by-step manner in the scenario

Corresponds to a taskstep in the document

Process Reference: If the scenario referencesanother scenario in total, put the scenario numberand name here.


Sub-Process Reference: If the scenario referencesanother scenario in part, put the scenario number,name, and the step numbers from that scenariohere


Process Decision: Identifies a decision / branchingpoint, signifying a choice to be made by the enduser. Lines represent different choices emergingfrom different parts of the diamond.

Does not usuallycorrespond to a taskstep in the document;Reflects a choice tobe made after stepexecution

< F u n c t i o n >



Convert

Planned Order

Dependent

Reqmts

Reservations

Warehouse

Material Reqmts

Planning

Materials Requirement Planning - MRP

Planned Ind.

Requirements

Production

Order



Alternative Planning Strategies for Finished Product

Strategy Net Requirements Planning (10) Planning with Final Assembly (40)

Customer requirements passed on to

production No Yes

This means . . . ... sales orders do not influence production ... sales orders that exceed planned

independent requirements can influence

production

... the main objective is to ensure smooth

production

... the most important factor here is the

ability to react f lexibly to customer demand

Planned independent requirements

allocated and reduced during sales

order processing No Yes

Planned independent requirements

reduced at goods issue for delivery Yes No



Work Center

Work Center: Assembly

Routings CostingScheduling

& Capacity

1010,-

2150,-

3160,-

Default values

Routings

Costing Data Sched. Data

Capacity Data



Routing Work Center / Operation

Routing Header

Operation 10:

Final Assembly

Material Components

Work centerControl key

Standard values

Activity types

Description

....



Individual Conversion

Individual Conversion

Planned

orders

Production

orders

Collective Conversion

Collective Conversion

Planned Order Conversion

Production

order

Planned

orders



Specify order type

Define order item

Copy routing

Lead time scheduling

Copy bill of material

Optional changes

Save production order

FridayJanuary28 2011

TuesdayJuly12 2011

Requirements planningManually

Availability check

Automatically

Optional (Customizing)

Production Order Creation



Order proposal

(planned order)

Order creation

Availability

check

Order release and

batch determination

for components

Order settlement Order header

Operations

Components

Costs 20

50

100

Material withdrawal

Goods receipt

Production Order Processing

Production Order

Confirmations



Material

Goods movement

Material

document

Accountingdocument

Warehouse

Operation

Mat. comp.

Prod. order

Costs

Update of stock quantities Update of stock values materials can be batch controlled

Goods Movement



Goods issueposting

Materialdocument

Acctg.document

Goods Issue

Updating stock quantities Updating stock values Reducing reservations Calculating actual costs and up-

dating the order



Order confirmation ...

Manual entry

Production Order Confirmations

Production

order

Operation 0010

Operation 0020

Operation 0030

Operation . . . .




l Costing variant

Display planned/actual costs

l Cost elementsl Cost itemizationl Cost component split

Planned costs Planned costs

Material costs

Costs for external

procurement

Production costs

Material overheadcosts

Production overheadcosts

Costs for external

processing

Cost elements Cost elements : : Phases Phases

l Gen. operation values

l Standard values

l Control key “costing

indicator”

Resources Resources

l Formula key for

costing

l Cost center

l Activity type

l Formula constants

Cost calculationlog

l Ind. "Rel. to costing"

l Price

Material Material components components

Order Order type type / Plant / Plant

Production Order - Preliminary Costing




Production order cost

Overhead calculations

- Work center

- Standard value

- Quantities

- Cost center

- Activity types

- Formulas

- Activity types

Operation

Internal activities costsMaterial costs

Cost of Production Order

- Quantities

- Prices

Work center Cost centerMaterialcomponents

- Periods

Activity cost




OrderStatus

Pre-Released or Released Partially DeliveredFinally Delivered or Technically Completed

Variances

Delivery

Value

Actual Costs

WIP at

Actual Costs

=WIP at

Actual Costs

=

-Delivery

Value

=

-

WIP and Variance Calculation in Lot-Based Cost Object

Controlling

Actual Costs Actual Costs




Material

600

Product cost planning

Lotsize 1 PCCO-PC

Production OrderMat. F126

8001.200

4002.400

-2.000

400

MaterialProduction

Surcharge

GR

Variances

Actual Cost

CO-PC

Material Master

Standard Price = 2000

Target Version 0

Price 150Qty 150

Structure 100Scrap 0Lotsize 0

Production

1100

Surcharge

300

Warehouse Price difference

Financial Accounting

2000 400

SettlementFI

CO-

PA

Settlement of Order (Example)



© 2013 SAP AG All i ht d 22

© 2013 SAP AG. All rights reserved.

No part of this publication may be reproduced or transmitted in any form or for any purpose without the express permission of SAP AG.

The information contained herein may be changed without prior notice.

Some software products marketed by SAP AG and its distributors contain proprietary software components of other software vendors.

National product specifications may vary.

These materials are provided by SAP AG and its affiliated companies ("SAP Group") for informational purposes only, without representation or

warranty of any kind, and SAP Group shall not be liable for errors or omissions with respect to the materials. The only warranties for SAP Group

products and services are those that are set forth in the express warranty statements accompanying such products and services, if any. Nothing

herein should be construed as constituting an additional warranty.

SAP and other SAP products and services mentioned herein as well as their respective logos are trademarks or registered trademarks of SAP AG in

Germany and other countries.

Please see http://www.sap.com/corporate-en/legal/copyright/index.epx#trademark for additional trademark information and notices.

http://www.sap.com/corporate-en/legal/copyright/index.epx




process overview production planning

Documents