1. University of Southern California Enterprise Wide Information Systems Manufacturing Planning and Execution Instructor: Richard W. Vawter

2. University of Southern California Objectives After this week, you will be able to: Describe the basic business process of manufacturing planning and execution in an ERP System. Discuss the integration points of manufacturing to materials management. Discuss the reporting and analysis tools used in R/3 for manufacturing. Execute the manufacturing planning and execution process in the R/3 system.

3. University of Southern California Topics Organizational Elements and Master Data Business Process for Manufacturing Planning and Execution Reporting and Analysis

4. University of Southern California Manufacturing Planning & Execution The SAP R/3 application modules that support most of Manufacturing Planning and Execution are: Production Planning Materials Management

5. University of Southern California Organizational Elements The SAP R/3 Manufacturing business process uses the following R/3 organizational elements: Company Code Plant Storage Location

6. University of Southern California Master Data The following master data is used in the Manufacturing Planning and Execution processes: Material master Bill of material (BOM) Work center Cost center Routing Production resources and tools

7. University of Southern California Material Master Primary Views * * * *

8. University of Southern California Material Types control the processes a material can go through Examples of material types: Raw materials Operating supplies Semi-finished products Finished products 1. Raw materials 3. Semi-finished products 2. Operating supplies 4. Finished products

9. University of Southern California Bill of Material is a structured list of components of a product Motorcycle Power Train Chassis Motor Gear Exhaust Front Wheel Rear Wheel FrameBrake

10. Work Centers describe where and how operations are performed Work Centers can be defined by the machines and employees involved in the production process. Each work center contains distinct capacity, costing, and scheduling information.

11. University of Southern California Cost Centers Used to collect the actual costs of one or more work centers. Assembly Area 1 Assembly Area 2 Inspection Motorcycle Assembly Cost Center Work Centers

12. University of Southern California Routings Describes the sequence of operations required to produce a specific material. Material Routing group Production resource tools Material components Work center Texts Control data Times Work center Texts Control data Times

13. University of Southern California Production Resource / Tools Documentation, Instructions Documentation, Instructions Material Equipment Miscellaneous Production Resource/Tool Categories Production resource/tools are moveable operating resources required for production.

14. University of Southern California Topics Organizational Elements and Master Data Business Process for Manufacturing Planning and Execution Reporting and Analysis

15. University of Southern California Manufacturing Planning and Execution Manufacturing Planning is the process of using forecasts and customer demand to create production and procurement schedules for finished products and component materials. Manufacturing Execution is the process of producing finished products and component materials and recording all shop floor activities and inventory movements.

16. University of Southern California Manufacturing Planning and Execution The overall manufacturing planning process comprises: Forecast values and requirements are first determined Master schedule items are planned Material requirements planning is then calculated The overall manufacturing execution comprises: Production orders are first released Materials are issued next Completion confirmations are then performed Goods are finally received into stock The manufacturing process affects capacity, costing, inventory, reporting, and analysis

17. University of Southern California Five Phases of the Manufacturing Processes Sales Info System Forecasting CO/PA Sales & Oper PlanningDemandMgmtMPSMRP Manufacturing Execution Order Settlement InventoryCosting Capacity Production Master Data Reporting and Analysis Procurement Planning process Execution process S O PProduction Order exec. 1. 2.3.4. 5. Next week we will take a closer look at each of these five phases of the Manufacturing process.