sap a to z process

SAP A to Z

Trigger for newMaterial at Packard

PurchasingIs contacted With material

numbers

Kanban orSubcontract?

External Kanban

Subcontract

Set up VendorAgreement and Control Cycle

Materials fromDelphi or vendorTo subcontractor

Regular purchase?

Yes

No

Supplier found.Vendor Agreement

Set up.

KanbansTransmittedTo Supplier

PurchasedParts?

No

ScheduleGenerated andTransmitted to

supplier

MaterialsAnd BOM

Created in SAP

Routings andPackaging are

Set up.

Production VersionCreated

Materials Costed and ready for

production

Customer makes contract with

Delphi

ASN received.Goods Receipt

For Material Into Delphi

Goods Receiptfor material.

Kanbans reset to full

Delphi creates contract, creates

scheduling agreement

Demand from customer received

manual or EDI

Is material available?

Yes

Delivery due listReviewed.Deliveries created

Prepare demandOr level schedule

materialsNo

SubcontractorAdds Value.

Sends material and ASN.

Goods ReceiptOn new Part #

Execute MRPMonday Evenings

Review and communicate plan

to Production

Production gets plan and materials.

Builds parts

Production counts/reversals.

Backflush, scrap, error processing

Create Shipment

Complete shipment, post

goods issue, print pick list, BOL

SubcontractComponents

Consumed fromSAP inventory

Direct ShipMaterial?

Yes

Vendor andCustomer

Agreements created

Direct ShipTable populated

Materials shipped.Process monitored

At Delphi

Yes

Billing DocumentCreated,Sent to

customer

Customer Sends payment

AccountingDocuments

created/posted

Payment toVendor

generated

Cost CollectorUpdated withProduction

Counts

When a new product is released, the master data must beSet up in SAP. This includes the material master records

And the bill of materials.

Finished GoodABC

ComponentC

Sub AssemblyAB

ComponentB

Each material must have its own material master record in SAP.Once the materials are set up, the BOM is created.

Once the Bill of Materials is created, the routing can be created.

Routings include the followingInformation:1. What steps should be followedWhen building the product.

2. Which work centers will be Utilized.

3. How many pieces per hourCan be produced.

Routings describe the process for manufacturing a product.

Packaging Instructions then need to be set up on all materials That are shippable. They tell SAP how many pieces of the

Finished good can fit into a container.

Determination Records tell SAP which packaging instructionsAre considered primary and alternate, in the cases where

There is more than one instruction set up.

OR

Primary Alternate

Finished GoodABC

ComponentC

Sub AssemblyAB

ComponentB

ProductionVersion

0001

The productionVersion brings together

The materials, BOM,Routing and storageLocation information

Into one place for the Superflush program.

Finished GoodABC

ComponentC

Sub AssemblyAB

ComponentB

The Superflush program receives in the finished goods and Consumes the lower level assemblies and components in orderTo keep inventory correct. Instead of having to look in multiplePlaces for the information it needs, it just looks directly at the

Production version.

Component B isConsumed into Sub Assembly

AB

Sub Assembly AB and componentC are consumed into finished

Good ABC

Finished Good ABC is Received into inventory.

But before the superflush program can run, the materialsMust be costed by finance.

$$$$$$$$$$$$

$$$$$$

$$$$$$$$$$$$



numbers


External Kanban

Subcontract



Regular purchase?

Yes

No


Set up.


PurchasedParts?

No


supplier

MaterialsAnd BOM

Created in SAP


Set up.



production


Delphi








manual or EDI


Yes



materialsNo






to Production


Builds parts



Create Shipment






Yes

Vendor andCustomer

Agreements created



At Delphi

Yes


customer


AccountingDocuments

created/posted

Payment toVendor

generated


Counts

When a customer wants toOrder materials from Delphi,Pricing and delivery terms

Must be agreed upon.

$$

Pay on consumptionNet 30

Price Break after 50,000

Ship DailyDeliver to X DockReceived by 4 PM

https://www.arttoday.com//Main/signup/index?PRODUCT=AT_3D_TRI

A contract and agreement are thenSetup in SAP. The contract contains

The terms and the agreement containsThe material and shipping schedule.

Customer ContractPay on consumption

Net 30Price Break after 50,000

Customer Agreement

Ship DailyDeliver to X DockReceived by 4 PM

http://members.arttoday.com/Left/category/tree/Main/account/index/Tmpl/index-noright.tmpl?width=450&a=c&show=all&b=k&batch=4&c=&mclass=X&total=122&mode=split&isPay=1&qclass=C&cols=4&q=pc%20operator&eQ=pc%2520operator&page=7

Customers typically transmit theirSchedule via EDI, and they can

Transmit daily, weekly, and/or monthly.

Schedules can also be manuallyinput, if necessary.

If material is available to be shipped, then the deliveryDue list can be monitored, and items picked from the list

To create deliveries.

The traffic lights tell us the status of the customer schedule:

Red lights indicate items that are overdue for delivery.Yellow LightsYellow Lights indicate items that are due today or tomorrowGreen lights indicate items which are not yet due.

ASNSchedules

Delphi

Deliveries and shipments are created, the material is picked,Packed and shipped to the customer site.

An ASN is also transmitted, to let him know the material is on its way.

A billing document is created and sent to the customer after the Materials have been delivered. When the customer transmits his

Payments, the cash is applied and the customer’s account cleared.

AR Invoice

Customer XAmount Due

$1564.78On 10/10/2006

Billing Document


$1564.78On 10/10/2006

Cash Application

Customer XCash Applied

$1564.78On 10/07/2006

AccountCleared

Customer XBalance

$0.00On 10/07/2006

SD Billing Finance – Accounts Receivable



numbers


External Kanban

Subcontract



Regular purchase?

Yes

No


Set up.


PurchasedParts?

No


supplier

MaterialsAnd BOM

Created in SAP


Set up.



production


Delphi








manual or EDI


Yes



materialsNo






to Production


Builds parts



Create Shipment






Yes

Vendor andCustomer

Agreements created



At Delphi

Yes


customer


AccountingDocuments

created/posted

Payment toVendor

generated


Counts

When there are new purchased parts entering the system, the purchasingGroup will find a source of supply, negotiate the price, and

Set up the vendor contracts and agreements that need to be created.

$123In trade for

Black Sheep

Aid for Have you

Vendor Agreement

Purchasing Document TypesPurchasing Document Types

Standard scheduling agreement

External procurement

Standard scheduling agreement


LPA(ME31L)

Stock Transport order or Transport Agreement

Internal procurement

Stock Transport order or Transport Agreement

Internal procurement

UB and LU(ME27/ME37)

Vendor Plant to Plant

Spot Buy Purchase Order


Spot Buy Purchase Order


SB/NBME21N)

Vendor

Once the agreements are in place, the weekly MRP run will grab the schedule from the customer agreement

and generate a schedule out to the supplier of the componentMaterials, taking into account such things as current stock and

Goods Receipt processing time.

Customer Schedule Vendor Schedule

200 pieces already available3 day processing time

Schedules can also be input manually, or adjusted ifIt becomes necessary.

Customer Schedule Vendor Schedule

The schedules can be transmitted automatically to the suppliers,Or it can be sent manually. Either way, it’s important to makeCertain the suppliers are receiving their shipping schedules.

Schedules

Delphi

ASN

The vendors should be shipping according to their schedule, andTransmitting an ASN (or finding a way to notify you that the materials

Are on their way).

Schedules

Delphi

The vendor Schedules should be monitored, and manuallyAdjusted when necessary.

There are also many reports to monitor incoming shipments for quantity accuracy and on-time deliveries.

Schedules

Delphi

As with any purchased part, once the materials arrive,They should be received in as quickly as possible.

Materials can be manuallyReceipted into SAP, or Scanned and received.

After the receipt is processed, the DACOR system willGenerate a payment to the vendor.

$$$$$$



numbers


External Kanban

Subcontract



Regular purchase?

Yes

No


Set up.


PurchasedParts?

No


supplier

MaterialsAnd BOM

Created in SAP


Set up.



production


Delphi








manual or EDI


Yes



materialsNo






to Production


Builds parts



Create Shipment






Yes

Vendor andCustomer

Agreements created



At Delphi

Yes


customer


AccountingDocuments

created/posted

Payment toVendor

generated


Counts

Kanban works best on materials that have a short lead time, high volumes,And stable demand.

Like all purchased material, a kanban material must firstHave a vendor agreement set up.

Then, rather than via MRP, kanbans are processed using a control cycle.

Control Cycle

Control Cycle

Scheduling agreement

Material Master

Control Cycle- Loop size - Standard pack- Replenishment strategy

Vendor

Supply Area

Kanbans

The control cycle links the following master data:

Kanban Pull vs MRP JITMRP JIT

Kanban JIT

MRP runsJIT generated

and transmitted

Container is physically

empty

Label is scanned

Schedule generated based on customer

demand minus inventory

Kanban status is updated,

pull signal is created automatically

Classic Kanban Status Cycle

Wait

Full

Empty

(If Blocked, KB will be set to “Wait” instead of Empty)

Initial Creation

Receiving changes the status to FULL

Scanning sets KB to EMPTY

Creates a Summarized JIT or Schedule line

(1)

(3)

(4)

Set to EMPTY manually

(2)

Wait

Empty

Full

The Kanban control board is the bestWay to monitor and track the status of

Kanbans.

Schedules

Delphi

As with any purchased part, once the materials arrive,They should be received in as quickly as possible.

Materials can be manuallyReceipted into SAP, or Scanned and received.

After the receipt is processed, DACOR generatesA payment to the vendor.

$$$$$$



numbers


External Kanban

Subcontract



Regular purchase?

Yes

No


Set up.


PurchasedParts?

No


supplier

MaterialsAnd BOM

Created in SAP


Set up.



production


Delphi








manual or EDI


Yes



materialsNo






to Production


Builds parts



Create Shipment






Yes

Vendor andCustomer

Agreements created



At Delphi

Yes


customer


AccountingDocuments

created/posted

Payment toVendor

generated


Counts

+ =

Subcontractors do value added workThat Delphi has chosen not to do in house.

+ =

Typically, the material will go to the Subcontractor under one part number,

And come back under a new part number.

Part # ABC Value added work Part # XYZ

Returned Part #XYZ

Initial Part #ABC

In SAP, this is usually accomplished by creating a bill of materialsWith the returned part as the top level item, and the original

Material as the component.

Certain settings in SAP turn a regular part and it’s bill of Material into a subcontracted part.

1. The item category in the vendor agreement.2. The vendor address in the vendor agreement.3. Material Master Settings4. Customer and Vendor Master settings (not shown)

The MRP run will take the customer demand, and from that generateA vendor schedule on the part that is returned from the subcontractor.

Even though the demand is actually on the returned part, a special transactionIn SAP will drive that demand down to the component that needs to be

Sent to the subcontractor.

ASN

DelphiSubcontractor

A delivery is created on the part to be sent to the subcontractor, and thenA shipment is created, and the material is moved to the subcontractor

Location.

Schedules

Delphi

In SAP, we can see how much stock is currently located at the vendor Location.

Returned Part #XYZ

Initial Part #ABC

When the vendor returns the material, a goods receipt is performed.Then, a consumption movement is done on the component

To remove it from inventory.

Goods Receipt on Returned Part.Moves it into unrestricted stock.

Consumption Movement onThe component to remove from

The subcontract location.

After the receipt is processed, DACOR is notifiedAnd a payment is triggered out to the subcontractor.

$$$$$$



numbers


External Kanban

Subcontract



Regular purchase?

Yes

No


Set up.


PurchasedParts?

No


supplier

MaterialsAnd BOM

Created in SAP


Set up.



production


Delphi








manual or EDI


Yes



materialsNo






to Production


Builds parts



Create Shipment






Yes

Vendor andCustomer

Agreements created



At Delphi

Yes


customer


AccountingDocuments

created/posted

Payment toVendor

generated


Counts

Process Overview

Customer

Delphi

EDI 83

0 &

862(

sam

e as C

ust)

2

ASN 8565

EDI 830 & 8621

ASN 856

43

Goods Receipt

Delivery / Shipment

Goods IssueSupplier

Customer

Delphi

EDI 83

0 &

862(

sam

e as C

ust)

2

ASN 8565

EDI 830 & 8621

ASN 856

43

Supplier

There are several pieces of master data that must be maintainedIn order to make the direct ship process work correctly. These piecesOf master data turn a regular part into a direct ship part.

1. Customer Agreement Item Category Changed2. Vendor Agreement: confirmation Control Key changed3. OA and FA Vendor Deleted in the Vendor Agreement4. Customer/Material Info Record Set up5. ZTPS1 table entry created6. Customers Set up In EDI7. Packaging Created

Billing DocumentGenerated,

Sent to Customer

DACORPays Vendor

Direct Ship in SAP has been created to function in an automatedFashion. Therefore, the user needs only to monitor the processes

And make sure nothing has failed.

Vendor ShipsDirectly to the

Customer

Vendor sendsASN to Delphi

SAP

SAP createsDelivery/shipment

And sendsASN to Customer

RequirementsPass throughDelphi and goTo the Vendor

CustomerRequirements

To Delphi

The requirements from the customer “pass through” to the vendorVia EDI, but still populate onto the customer agreement. WhenMRP runs, this drives the requirements through in SAP to the

Vendor agreement.

For the user monitoring direct ship processes, the day starts out by viewing the Delivery due list to see what should be shipping that day.

Because everything is automated, the only thing the user needs to do is To monitor the EDI to make certain everything is working correctly.

When processes malfunction, the user is responsible to make sure the Process gets up and running again.

These vendors should be notified that they have transmitted EDI errors. TheyShould be asked to re-transmit their EDI until it comes in cleanly.

Billing DocumentGenerated,

Sent to Customer

DACORPays Vendor

Vendor sendsASN to Delphi

SAP

The processes are automated, so when the vendor re-transmits his ASN,The outbound delivery, shipment, and ASN to the vendor should be

Sent automatically.

Vendor ShipsDirectly to the

Customer

Vendor ASNTriggers Creation

Of DeliveryAnd shipment

And sendsASN to Customer

RequirementsPass throughDelphi and goTo the Vendor

CustomerRequirementsTo CustomerScheduling Agreement

As in all the other processes, once the receipt is done on the Material from the vendor, DACOR is triggered to send a payment

to the vendor.

$$$$$$

Once the ASN is sent to the customer, a billing document is created. When the customer transmits his payments, the cash is applied,

and the customer’s account cleared.

AR Invoice


$1564.78On 10/10/2006

Billing Document


$1564.78On 10/10/2006

Cash Application

Customer XCash Applied

$1564.78On 10/07/2006

AccountCleared

Customer XBalance

$0.00On 10/07/2006

SD Billing Finance – Accounts Receivable

At the end of each day, the user can monitor the direct ship activity report toBe sure that everything that should have shipped that day really did ship!



numbers


External Kanban

Subcontract



Regular purchase?

Yes

No


Set up.


PurchasedParts?

No


supplier

MaterialsAnd BOM

Created in SAP


Set up.



production


Delphi








manual or EDI


Yes



materialsNo






to Production


Builds parts



Create Shipment






Yes

Vendor andCustomer

Agreements created



At Delphi

Yes


customer


AccountingDocuments

created/posted

Payment toVendor

generated


Counts

At Delphi, the customer’s demand can become the production schedule.But customer demand can be very erratic.

12 13 14 15 16 19 20 21 22 23

6,000

5,000

4,000

3,000

2,000

1,000

Nov.

Delphi has created a custom tool to assist in leveling out the Schedule and making it easier to plan for production.

12 13 14 15 16 19 20 21 22 23

6,000

5,000

4,000

3,000

2,000

1,000

Nov.

This level scheduling tool is designed to supersede MRP requirements.A leveled schedule is uploaded into SAP, and when MRP runs, it does

NOT overwrite the schedule with its own plan.

It is also possible to add to the customer demand, when necessary.This can be done using planned independent requirements and

Customer independent requirements. Both are forms of demand That are not tied to any customer, but do generate requirements.

PIR’sCIR’s

12 13 14 15 16 19 20 21 22 23

6,000

5,000

4,000

3,000

2,000

1,000

Nov.

These types of independent requirements work differently.

1. Demand only outside 30 day time fence2. Replaced by Customer Requirements3. Go away when requirement is filled4. Designed for long term forecasting5. Demand within 30 days of today6. Above and beyond customer requirements7. Are not consumed; must be manually deleted8. Designed for immediate use

PIR CIR

Once the demand is in place, whether it comes directly from the customerOr is level scheduled and/or enhanced by independent requirements, MRP

Will run to generate the build schedule, and drive requirements out to suppliers.

MRPPlanned OrdersFor manufactured

materials

Schedule LinesTo suppliers forPurchased parts

Inventory

Lot Size

Requirements

Dates

When production is Completed, the item will be

Received in and the Sub assemblies and components

Will be backflushed.

Any material that is not of sufficient quality will Be scrapped.

Any superflush errors will beReprocessed until allProduction counts are

In correctly.

The costs of production will then beFunneled into the appropriate costing

Buckets for finance.



numbers


External Kanban

Subcontract



Regular purchase?

Yes

No


Set up.


PurchasedParts?

No


supplier

MaterialsAnd BOM

Created in SAP


Set up.



production


Delphi








manual or EDI


Yes



materialsNo






to Production


Builds parts



Create Shipment






Yes

Vendor andCustomer

Agreements created



At Delphi

Yes


customer


AccountingDocuments

created/posted

Payment toVendor

generated


Counts

sap a to z process

Documents

bill of materials

material master recordsand

togetherthe materials

ediis material available

superflush program

finished goods

new product

master data