1. Production Planning Master Data EGN 5620 Enterprise Systems Configuration Fall, 2015

2. Business Module for Selling Finished Goods by Production
ECC 6.0
January 2008
Business Module for Selling Finished Goods by Production
Pre-Sales Activity
Sales Order
Delivery
Billing
Planned Order
Production Order
Completion Confirmation
In Inventory
Plant or Warehouse
Availability Check NO
YES
Goods Issued to Delivery
Goods from Production Order
General Ledger Accounts
Inventory
Postings
Accounts
Receivable
Issue Goods to Production Order
Purchase Requisition
Purchase Order
Goods Receipt
Invoice Receipt
Accounts
Payable NO
Can start out with a pre-sales activity
Ended up in Order processing
Became an order
Make
Plan
execute production order
Issue goods
Complete to inventory
Cost
Assign to sales order
Send to customer
Bill customer
Account for all activities Or
January 2008
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3. Production and Planning Master Data SAP Implementation

4. Business Process Integration
ECC 6.0
January 2008
Business Process Integration FI MM PP SD
Transactions
Master Data MM PP SD
Org Data
Rules MM PP SD FI FI FI MM
In the Business Process Integration class we use the stool as a metaphor for the SAP structure. There are four basic components needed to run execute SAP. Three of these are the legs of the stool: org data, master data, and rules. These ‘hold up’ the transactions. Transactions cannot be run unless these are setup.
The legs are typically configured during the implementation process.
During BPI 1 we will setup the stool for Finance, Materials management and Sales and Distribution. PP SD
January 2008
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5. Business Process Integration
ECC 6.0
Business Process Integration
January 2008 PP
Org Data
Rules PP
Master Data PP PP
January 2008
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6. PP Organizational Data
Client
An independent environment in the system
Company Code
Smallest org unit for which you can maintain a legal set of books
Plant
Operating area or branch within a company
Manufacturing, distribution, purchasing or maintenance facility
Storage Location
An organizational unit allowing differentiation between the various stocks of a material in a plant
Work Center
An organizational unit that defines where and when an operation is performed
Has an available capacity
Activities performed are valuated by charge rates, which are determined by cost centers and activity types.
Can be machine, groups of machines, people, production lines or groups of craftsmen

7. Global Bike Germany GmbH
GBI Structure for PP
Global Bike
Client
Global Bike Inc.
Global Bike Germany GmbH
Company
Code
Dallas
Heidelberg
Plant
Raw Materials
Raw Materials
Semi-fin. Goods
Semi-fin. Goods
Storage
Location
Finished Goods
Finished Goods
Miscellaneous
Miscellaneous
Assembly
Assembly
Packaging
Packaging
(Work Center Location)
Inspection
Inspection

8. Organization Data Plant-specific organizational units
ECC 6.0
Organization Data
January 2008
Plant-specific organizational units
MRP controller
Production controller
Production scheduler
Planner group
Person responsible (financially)
Non-plant specific organizational units
Capacity planner
January 2008
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9. BPI PP master data PP Master Data PP PP PP ECC 6.0 January 2008
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10. Master Data for Production Planning
ECC 6.0
January 2008
Master Data for Production Planning
Material
Bill of Materials (BOM)
Work Center
Routing
January 2008
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11. Material Data (Review)
Definition
Physical objects to buy, transform into, sell, maintain other resources, or use in support for business activities.
Generic classification(material types) :
Trading goods
Raw materials
Semi-finished products (WIPs)
Finished products
Consumables (e.g., stationery, production tools)
Spare parts (for maintenance)

12. ECC 6.0
January 2008
Bill of Materials
BOM is a hierarchical structure of the materials needed to produce a finished goods or semi-finished goods.
BOMs in SAP are defined as single-level, but can be constructed multi-level by nesting several single-level BOMs.
Nesting refers to a hierarchy in which a bill of materials contains its own bills of materials.
January 2008
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13. Bill of Material Master Data
ECC 6.0
Bill of Material Master Data
January 2008
BOM in SAP consists of a header section and an item section.
Header section includes data that apply to entire BOM, such as finished material number, plant, usage, validity, status, and base quantity.
Usage identifies the purpose for which the BOM can be used. For example, 1 is for production.
The BOM is valid from the date specified in the header.
January 2008
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14. Bill of Materials Master Data
ECC 6.0
Bill of Materials Master Data
January 2008
Items section identifies all materials needed to make finished goods or semi-finished goods identified in the header.
Data for each item are:
item category,
material number,
description, &
Quantity
Item category
Tell how material is used in the BOM.
January 2008
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15. ECC 6.0
January 2008
BOM MM Item Category
L: Stock item N: Non-stock item R: Variable –size item T: Text item used to include notes and comments within the BOM. Notes may explain how to use the material or identify any unusual assembly requirement. D: Document item used to include document such as engineering drawings, assembly instructions, and photographs.
January 2008
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16. ECC 6.0
BOM MM Item Category
January 2008
K: Class item used in variant BOMs to identify a class or group of items. A variant BOM is used to create multiple versions. M: Intra material, or phantom items used as a logical grouped set of materials that could collectively be considered as a single material. Phantom material is not an actual material and is mostly temporarily used during production planning.
January 2008
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17. Where to use BOM? MRP uses BOM to determine dependent requirements
ECC 6.0
January 2008
Where to use BOM?
MRP uses BOM to determine dependent requirements
Controlling uses BOM to calculate product costs
Production uses BOM to issue the proper quantities of components and raw materials to the shop floor
January 2008
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18. Bill of Materials – An Example
4. Seat Kit
5. Handle Bar
6. Pedal Assembly
7. Chain
8. Brake Kit
9. Warranty Document
10. Packaging
BOM for a Bicycle
1. Wheel Assembly
1.1 Tire
1.2 Tube
1.3 Wheel
1.4 Hex nut
1.5 Lock Washer
1.6 Socket Head Bolt
2. Frame
3. Derailleur Gear Assembly
Forecasting should be done primarily for end-item demand. In manufacturing situations, this means there is no real need for forecasting component parts which make up the final item. When production quantities for the end item have been determined, component demand can be computed based on the production plan of the end item and knowledge of the bill of materials (BOM).

19. Bill of Materials: Single-level
Finished Bike
Wheel Assembly
Pedal Assembly
Frame
Chain
Derailleur Gear
Assembly
Brake Kit
Seat Kit
Warranty Doc.
Handle Bar
Packaging

20. Single Level vs. Multi-Level BOM
Finished Bike
Single-Level
Wheel
Frame
Derailleur
Seat
Handle Bar
Pedal
Chain
Brake
Doc.
Pack.
Tire
Tube
Wheel
Hex nut
Lock
Bolt
Multi-level

21. Variant Bill of Materials
Several products with a large proportion of identical parts.
Single-Level
Deluxe Bike (red)
Single-Level
Professional Bike (black)
Aluminum Wheel
Pedal Assembly
Carbon Wheel
Pedal Assembly
Frame red
Chain
Frame black
Chain
Derailleur Gear
Assembly
Brake Kit
Derailleur Gear
Assembly
Brake Kit
Seat Kit
Warranty Doc.
Similar products: small variations
e.g. bike with a different color
If you are producing several similar products that have a lot of common parts, you can describe these products using a variant BOM. This is the case, for example, if you replace one material component with another to make a different product. Variants can also differ by containing different quantities of a component. You create the new BOM as a variant of an existing BOM.
Seat Kit
Warranty Doc.
Handle Bar
Packaging
Handle Bar
Packaging

22. ECC 6.0
Work Center
January 2008
Work center is a location where value-added work for producing a finished or semi-finished product is carried out.
A work center can be a machine, a group of machines, an entire production line, a work area, or a person or group of people who are responsible for completing operations.
A work center is a resource that can be used for a variety of purposes and for multiple processes.
January 2008
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23. Work Center - Capacities
ECC 6.0
Work Center - Capacities
January 2008
Work center used to define capacities
Labor
Machine
Output
Emissions
Capacities used in
Capacity requirements planning (CRP)
Detailed scheduling
Costing
January 2008
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24. Work Center – Where used
ECC 6.0
Work Center – Where used
January 2008
Work Center is used:
To be assigned as cost center
To be allocated with Human Resources (HR)
Positions with requirements
People with qualifications
January 2008
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25. Work Center Views Work Centers have multiple views of: Basic data
ECC 6.0
Work Center Views
January 2008
Work Centers have multiple views of:
Basic data
Default values
Capacity overview
Scheduling
Cost center assignment
Technical data
January 2008
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26. Work Center – Basic data section
ECC 6.0
Work Center – Basic data section
January 2008
Name, and description of the work center
Person or group of people who are responsible for completing operations
Task list: a list of operations that are required to accomplish a task. Operations are the specific tasks that must be completed, such as drilling, cutting, assembling. In production, a task list takes the form of a product routing or a master recipe.
Standard value key: used to assign standard or planned values for operations, such as setup and execution times. Companies use these values to calculate costs, execution times, and capacity requirements.
January 2008
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27. Work Center – Basic data
ECC 6.0
Work Center – Basic data
January 2008
January 2008
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28. Work Center – Default Values
ECC 6.0
Work Center – Default Values
January 2008
Default Values: for operations performed at the work center.
Control Keys: specify how an operation or a sub-operation is scheduling, how costs will be calculated, and how operations will confirmed once they are completed in the work center.
Wage data: used by processes in human capital management, such as payroll.
Standard value keys: identify the normal time elements – the activities that consume time associated with the work center. Typical time elements are setup time, machine time, labor time, and teardown time.
January 2008
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29. Work Center – Default Values
ECC 6.0
Work Center – Default Values
January 2008
January 2008
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30. Work Center – Capacities/Scheduling
ECC 6.0
January 2008
Available capacity defines how much work can be performed at the work center.
A work center can include more than one resource or capacity, such as labor and machine.
Scheduling basis determines the specific capacity to be utilized for production.
January 2008
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31. Work Center - Capacities/Scheduling
ECC 6.0
Work Center - Capacities/Scheduling
January 2008
January 2008
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32. ECC 6.0
Work Center - Costing
January 2008
A work center is associated with a cost center which is a container for accumulation of costs. Costs associated with operations completed in a work center are calculated using formulas that utilize the costs and standard values associated with each activity type, for example,
setup,
labor, and
machine.
January 2008
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33. Work Center - Costing ECC 6.0 January 2008
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34. ECC 6.0
Product Routing
January 2008
A list of tasks or operations that must be performed to convert a material to a part, component, or product.
Routing is a sequence of operations which detail the manufacture of a product
Routings are used as a template for production orders and run schedules as well as a basis for product costing.
January 2008
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35. Routing Routing are used to determine: Operations Work centers
ECC 6.0
Routing
January 2008
Routing are used to determine:
Operations
Work centers
Material components
Production resources and tools
Quality Checks
January 2008
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36. Time and Unit of Measure
Routing – an Example
Routing for Finished Bike
Operation
Plant
Description
Activity Type
Work Center
Control Key
Time and Unit of Measure

37. Routing Use Routings will be used in Scheduling (dates, times) Costing
ECC 6.0
Routing Use
January 2008
Routings will be used in
Scheduling (dates, times)
Costing
Capacity planning
Production orders
January 2008
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38. Routing Standard Sequence Alternate Sequence Parallel Sequence
ECC 6.0
January 2008
Routing
Standard
Sequence
Alternate
Sequence
Parallel
Sequence
Operation 10
Operation 20
Operation 30
Operation 40
Operation 10
Operation 20
Operation 30
Operation 40
Operation 25
Operation 20
Operation 10
Operation 30
Operation 40
Operation 25
January 2008
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39. Material Types Allowed in Production
ECC 6.0
Material Types Allowed in Production
January 2008
Multiple material types may be used in a routing/BOM
Raw materials
Semi-finished product
Trading goods are allowed but not standard
Text or Reference materials common
January 2008
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40. Controlling Activities for Production
ECC 6.0
Controlling Activities for Production
January 2008
Used to perform internal cost allocation, where activities by a cost center are measured
Labor time
Machine hours
Output activities are valued
Allocation of an activity type is always made with the allocation cost element created in activity type planning
January 2008
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41. Activity Prices Prices (costs) for planned activities
ECC 6.0
Activity Prices
January 2008
Prices (costs) for planned activities
Fixed or Variable
Labor = $$/hour
Machine = $/hour
Overhead = %
January 2008
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42. Activity Type/Price Planning
ECC 6.0
Activity Type/Price Planning
January 2008
January 2008
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43. Product Group
Aggregate planning that group together materials or other product groups (Product Families)
Manufacturing procedure
Product design
Market niche, etc.
Proportional Factors (Percentages for components)
Aggregate forecasts of a group of similar products are generally more accurate than individual forecasts of the individual products that make up the group.

44. Product Groups Multi-level or single-level
ECC 6.0
Product Groups
January 2008
Multi-level or single-level
A product group is multi-level if it contains other product groups
Lowest level in a product group hierarchy always consists of materials.
A product group is single-level if its members are materials only
A material or product group can be a member of more than one owner product group
January 2008
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45. Production Group ECC 6.0 January 2008
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46. PP PP Rules Rules PP PP PP ECC 6.0 January 2008
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47. MRP Control Parameters
ECC 6.0
January 2008
MRP Control Parameters
Environment
Number range
Master Data
MRP controllers
Float times
Planned Orders
Conversion order type
Dependant requirement availability
January 2008
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48. MRP Control Parameters
ECC 6.0
January 2008
MRP Control Parameters
Planning run
Bill of Material (BOM) selection
External procurement
Planning horizon
Availability Check
Material
Production Resource/Tool (PRT )
Capacity
Scheduling Control
Parameters
January 2008
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49. General Planning Parameters
ECC 6.0
January 2008
General Planning Parameters
Order Type Control Parameters
Types of routings,
BOM’s per order type:
manually or automatically
Availability checking
Create Confirmation Parameters
Reservations
Status Updates
Define Valuation of Goods Received
Moving Average Price Control evaluation
January 2008
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50. MM Planning Parameters
ECC 6.0
January 2008
MM Planning Parameters
Materials Requirements Planning views
for materials
Work Scheduling views
for manufactured products
January 2008
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51. Production and Planning
GBI, Inc.
Production and Planning
Master Data

52. GBI. Organizational Structures
Plant (DL## /MI##/SD## _)
Client (330)
Chart of
Accounts (GL##)
Company
Code (US##)
Fiscal Year
Variant (K1)
Credit Control
Area (GL##)
Purchasing
Organization (US##)
Group (N##)
Controlling Area (NA##)
RM##
FG##
Work Center
ASSM10##
INSP10##
PACK10##
SF##
TG##
MI##
Work center
(ASSY/INSP/PACK/MANT/SERV)
Shipping Point (DL##/MI##/SD##)

53. BOM - Example ECC 6.0 January 2008
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54. Routing ECC 6.0 January 2008 © SAP AG and The Rushmore Group, LLC 2008
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55. PPP Orders Planned Order (planning) Production Order (execution)
A request created in the planning run for a material in the future (converts to either a production or purchase order)
Production Order (execution)
A request or instruction internally to produce a specific product at a specific time
Purchase Order (execution)
A request or instruction to a vendor for a material or service at a specific time
A request or instruction from a purchasing organization to a vendor (external supplier) or a plant to deliver a quantity of material or to perform services at a certain point in time.

56. Exercises: (Due Date – 11/2/2015)
1. Determine work center location
2. Create activity type
3. Change activity output/prices
4. Determine person responsible
5. Create capacity
6. Create work centers
7. Create MRP views for raw materials
8. Create semi-finished goods
9. Create finished goods
10. Create bill of materials
11. Create product routings
12. Create product groups