SAP ERP Manufacturing Solutions

Manufacturing Scope items

Manufacturing Logistics Planning Includes the transfer of aggregated planning data based on sales quantity planning to Long Term Planning. After simulation runs the demand may then transferred to active demand management Make-to-Stock Production: Discrete Industry Supports the manufacturing processes of goods stored in inventory prior to receipt of an order. Orders are usually filled from existing stock, and inventory is replenished based on production orders. Make-to-Stock Production: Process Industry Provides an integrated platform for batch-oriented process manufacturing. This supports processes in the following manufacturing industries: chemical, pharmaceutical, food and beverage industries as well as the batch-oriented electronics industry. Make-to-Order Production with Variant Configuration Manufacturing environment where the final product is usually a combination of standard items and items custom-designed for this customer. Make-to-Order Production without Variant Configuration Manufacturing environment where you produce a product for a order: includes quotation, manufacture, shipping, invoice, and payment. Options: serial number creation, subcontracting, QM, and more.

Manufacturing (Cont.) Repetitive Manufacturing Is distinguished by the production of discrete units, usually at very high speeds and quantities in which materials tend to move in a continuous flow during production. Production Subcontracting (External Processing) Outlines the steps required for processing of individual production steps during manufacturing outside of your company by a vendor (subcontractor). Rework Processing (Stock-Manufactured Material) Focuses on the rework manufacturing steps including: production execution, creating a new production order, reusing the rework material, collecting and allocating the associated costs and variances. Quarterly Plan: Sales Quantity Forecast with CO-PA The sales forecast is reviewed and updated on a quarterly basis. Rework Processing (Work-in-Process) Addresses the work performed to correct defects in a product after it has been manufactured. The cost of rework is interpreted as a variance.

Manufacturing Logistics Planning Purpose Includes the transfer of aggregated planning data based on sales quantity planning to Long Term Planning. After simulation runs the demand may then transferred to active demand management. Key process flows covered Execute Sales and Operations Planning Execute Long-Term Planning Business benefits Provides seamless integration in complete planning cycle from CO-PA via Sales and Operations Planning and Long-Term Planning to Demand Planning

Manufacturing Make-to-Stock Production: Discrete Industry Purpose Supports the manufacturing processes of goods stored in inventory prior to receipt of an order. Orders are usually filled from existing stock, and inventory is replenished based on production orders. Key process flows covered Create planned independent requirements Plan material requirements at plant level Execute in-house production (subassembly) Execute in-house final assembly (finished goods) Level capacities Confirm assembly activities Business benefits Triggers production by a production plan Includes serial number and batch management Provides integration options with: quality management, consigned inventory, and external processing

Manufacturing Make-to-Stock Production: Process Industry Purpose Batch–oriented process manufacturing commonly used in the following industries: chemical, pharmaceutical, food and beverage industries and the batch–oriented electronics industry. Key process flows covered Create planned independent requirements Execute Material Requirements Planning (MRP) Execute Make-to-Stock (MTS) production for semi- finished and finished products Business benefits Enables recipe-oriented production Handles materials in batches according to a recipe specified for the appropriate production quantity Offers cost object controlling

Manufacturing Make-to-Order Production without Variant Configuration Purpose Manufacturing environment where you produce a product for a order: includes quotation, manufacture, shipping, invoice, and payment. Options: serial number creation, subcontracting, QM, and more. Key process flows covered Create quotation headers Create follow on quotations with reference to first quotation Change quotations based on customer requests Create sales orders with reference to accepted follow on quotations Check customer credit limits Send order confirmations to customers and start production processes Execute milestone billing – post down payments after order confirmations Manage technical changes based on customer requests Recalculate sales orders and bills of material Execute deliveries and billing of finished goods Business benefits Provides quotation history Offers billing plans including down payments Enables change management in production

Manufacturing Repetitive Manufacturing Purpose Repetitive manufacturing is distinguished by the production of discrete units, usually at very high speeds and quantities in which materials tend to move in a continuous flow during production. Key process flows covered Create planned independent requirements Plan material requirements at plant level Execute in-house production Confirm assembly activities Business benefits Simplifies handling of the production process Provides full cost control

Manufacturing Production Subcontracting (External Processing) Purpose Outlines the steps required for processing of individual production steps during manufacturing outside of your company by a vendor (subcontractor). Key process flows covered Create purchase orders for external processing Post goods receipts for “subcontracting” purchase orders Post invoices Execute periodic payments Business benefits Specifies that a certain operation of the production order is executed by an external subcontractor on a regular basis via outline agreements Offers assignment of the assembly procedure of the finished product to a subcontractor in case of capacity bottlenecks

Manufacturing Rework Processing (Stock-Manufactured Material) Purpose Focuses on the rework manufacturing steps including: production execution, creating a new production order, reusing the rework material, collecting and allocating the associated costs and variances. Key process flows covered Create rework production orders Post goods issues for defective materials Confirm rework production activities Post goods receipts for rework production orders Business benefits Provides transparency on costs for rework activities Offers usage of all standard shop-floor control functionalities

Manufacturing Quarterly Plan: Sales Quantity Forecast with CO-PA Purpose The sales forecast is reviewed and updated on a quarterly basis. Key process flows covered Execute sales quantity planning on basis of actual data Execute transfer to Sales and Operations Planning Business benefits Provides integration to Sales and Production Offers data planning in spreadsheet

Manufacturing Rework Processing (Work-in-Process) Purpose Addresses the work performed to correct defects in a product after it has been manufactured. The cost of rework is interpreted as a variance. Key process flows covered Confirm production activities Confirm scrap defective material Confirm parent order at rework operation Continue shop-floor activities Business benefits Automatically triggers rework process based on scraps at defined operation Lets you confirm additional activity and material consumption after rework Is fully integrated into the production process