1. Production Planning Master Data EGN 5620 Enterprise Systems Configuration Spring, 2014

2. Production and Planning Master Data SAP Implementation

3. 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
© SAP AG - University Alliances and The Rushmore Group, LLC All rights reserved.
© SAP AG and The Rushmore Group, LLC 2008

4. Business Process Integration
ECC 6.0
Business Process Integration
January 2008 PP
Org Data
Rules PP
Master Data PP PP
January 2008
© SAP AG - University Alliances and The Rushmore Group, LLC All rights reserved.
© SAP AG and The Rushmore Group, LLC 2008

5. Production Process (Make-to-Stock)
Capacity
Planning
Schedule
and Release
Production
Process
Shop Floor
Documents
Production
Proposal
(Planning/Other)
Goods
Issue
Completion
Confirmation
Order Settlement
Goods
Receipt

6. 1. Organization Data Client Company code Plant Storage location
ECC 6.0
1. Organization Data
January 2008
Client
Company code
Plant
Storage location
January 2008
© SAP AG - University Alliances and The Rushmore Group, LLC All rights reserved.
© SAP AG and The Rushmore Group, LLC 2008

7. Organization Structure for PP
Plant (P_ _ _)
Client (620)
Company
Code (C _ _ _)
SL30
SL 10
SL 20

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
© SAP AG - University Alliances and The Rushmore Group, LLC All rights reserved.
© SAP AG and The Rushmore Group, LLC 2008

9. BPI PP Master Data PP Master Data PP PP PP ECC 6.0 January 2008
© SAP AG - University Alliances and The Rushmore Group, LLC All rights reserved.
© SAP AG and The Rushmore Group, LLC 2008

10. Master Data for Production Planning
ECC 6.0
January 2008
Master Data for Production Planning
Materials Master Record
Bill of Material Master Data
Work Center Master Data
Product Routing
PRTs (Production Resources/Tools)
January 2008
© SAP AG - University Alliances and The Rushmore Group, LLC All rights reserved.
© SAP AG and The Rushmore Group, LLC 2008

11. 1.Material Master Record
ECC 6.0
1.Material Master Record
January 2008
To provide a clear display, material master data is subdivided into views.
A material master contains global data, which is valid across all locations (for example, data that is the same for this material in all production plants) and location-specific data, which contains settings for the relevant location (for example, a specific production plant).
General data such as the measurements or the weight of a
material is set globally, whereas settings for planning are usually predefined locally
The material master is the data object that contains all information necessary for the business use of a material, in particular, all settings for procurement, production, storage or sales.
January 2008
© SAP AG - University Alliances and The Rushmore Group, LLC All rights reserved.
© SAP AG and The Rushmore Group, LLC 2008

12. 1. Material Master Record
ECC 6.0
1. Material Master Record
January 2008
The most important settings for Material Planning are contained in material requirements planning (MRP) views 1 to 4 of the ECC material master.
MRP type specifies how a material should be planned (MRP, consumption-based planning, no planning).
Lot-sizing procedure determines the lot size of the respective procurement proposals.
Procurement type is used to determine whether a material is to be produced in-house or procured externally. The in-house production times or the planned delivery times specify how long procurement takes. A level of safety stock can be set.
Strategy group controls how the independent requirements behave. Moreover, control of the ATP check takes place on the basis of the availability check group.
January 2008
© SAP AG - University Alliances and The Rushmore Group, LLC All rights reserved.
© SAP AG and The Rushmore Group, LLC 2008

13. ECC 6.0
January 2008
2. 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
© SAP AG - University Alliances and The Rushmore Group, LLC All rights reserved.
© SAP AG and The Rushmore Group, LLC 2008

14. ECC 6.0
January 2008
2. Bill of Materials
Bill of Materials (BOM) are created as single- level or multi-level relationships between one parent material and the sub-component material
EPEN
Barrel
Cap
Crown
Cartridge
Band
Clip
January 2008
© SAP AG - University Alliances and The Rushmore Group, LLC All rights reserved.
© SAP AG and The Rushmore Group, LLC 2008

15. 2. Bill of Materials Variant Bill of Materials (BOM)
ECC 6.0
January 2008
2. Bill of Materials
Variant Bill of Materials (BOM)
Several products with a large proportion of identical parts.
EPEN - Red
Red
Cartridge
Band
Etc.
Black
Cartridge
Band
Etc.
EPEN - Black
January 2008
© SAP AG - University Alliances and The Rushmore Group, LLC All rights reserved.
© SAP AG and The Rushmore Group, LLC 2008

16. 2. Bill of Materials Multiple versions of Bill Of Materials (BOM)
ECC 6.0
January 2008
2. Bill of Materials
Multiple versions of Bill Of Materials (BOM)
One product produced from alternative components or processes, where the differences are small (usually the quantity of a component).
BOM 1 = lot size
BOM 2 = lot size 101 – 999
Black
Cartridge
(Buy)
Band
Etc.
EPEN - Black
Black
Cartridge
(Make)
Band
Etc.
EPEN - Black
January 2008
© SAP AG - University Alliances and The Rushmore Group, LLC All rights reserved.
© SAP AG and The Rushmore Group, LLC 2008

17. 2. Bill of Material Semi-finished goods Raw Material good
ECC 6.0
January 2008
2. Bill of Material
Semi-finished
goods
Raw
Material
good
Finished Good
Raw
Material
Raw
Material
January 2008
© SAP AG - University Alliances and The Rushmore Group, LLC All rights reserved.
© SAP AG and The Rushmore Group, LLC 2008

18. 2. Bill of Materials ECC 6.0 January 2008
© SAP AG - University Alliances and The Rushmore Group, LLC All rights reserved.
© SAP AG and The Rushmore Group, LLC 2008

19. ECC 6.0
2. Bill of Materials
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
© SAP AG - University Alliances and The Rushmore Group, LLC All rights reserved.
© SAP AG and The Rushmore Group, LLC 2008

20. ECC 6.0
2. Bill of Materials
January 2008
Items section identifies all materials needed to make finished goods or semi-finished goods identified in the header.
Item category determines how material is used in the BOM.
Data for each item are:
material number,
description, quantity, and
item category.
January 2008
© SAP AG - University Alliances and The Rushmore Group, LLC All rights reserved.
© SAP AG and The Rushmore Group, LLC 2008

21. ECC 6.0
January 2008
2. Bill of Materials
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
© SAP AG - University Alliances and The Rushmore Group, LLC All rights reserved.
© SAP AG and The Rushmore Group, LLC 2008

22. ECC 6.0
2. Bill of Materials
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
© SAP AG - University Alliances and The Rushmore Group, LLC All rights reserved.
© SAP AG and The Rushmore Group, LLC 2008

23. 2. Bill of Materials Where to use BOM?
ECC 6.0
2. Bill of Materials
January 2008
Where to use BOM?
1) MRP uses BOM to determine dependent requirements
2) Controlling uses BOM to calculate product costs
3) Production uses BOM to issue the proper quantities of components and raw materials to the shop floor
January 2008
© SAP AG - University Alliances and The Rushmore Group, LLC All rights reserved.
© SAP AG and The Rushmore Group, LLC 2008

24. ECC 6.0
3. Work Center
January 2008
Work center is a location where value-added work needed to produce a material 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
© SAP AG - University Alliances and The Rushmore Group, LLC All rights reserved.
© SAP AG and The Rushmore Group, LLC 2008

25. 3. Work Center Work center used to define capacities
ECC 6.0
3. Work Center
January 2008
Work center used to define capacities
Labor
Machine
Output
Emissions
Capacities used in
Capacity requirements planning (CRP)
Detailed scheduling
Costing
January 2008
© SAP AG - University Alliances and The Rushmore Group, LLC All rights reserved.
© SAP AG and The Rushmore Group, LLC 2008

26. 3. Work Center Work Center is used: To be assigned as cost center
ECC 6.0
3. Work Center
January 2008
Work Center is used:
To be assigned as cost center
To be allocated with Human Resources (HR)
Qualifications
Positions
People
January 2008
© SAP AG - University Alliances and The Rushmore Group, LLC All rights reserved.
© SAP AG and The Rushmore Group, LLC 2008

27. 3. Work Center Work Centers have multiple views of: Basic data
ECC 6.0
3. Work Center
January 2008
Work Centers have multiple views of:
Basic data
Default values
Capacity overview
Scheduling
Cost center assignment
Technical data
January 2008
© SAP AG - University Alliances and The Rushmore Group, LLC All rights reserved.
© SAP AG and The Rushmore Group, LLC 2008

28. 3. Work Center 3.1 Basic data Tab:
ECC 6.0
3. Work Center
January 2008
3.1 Basic data Tab:
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
© SAP AG - University Alliances and The Rushmore Group, LLC All rights reserved.
© SAP AG and The Rushmore Group, LLC 2008

29. 3. 1 Work Center: Basic data Tab
ECC 6.0
3. 1 Work Center: Basic data Tab
January 2008
January 2008
© SAP AG - University Alliances and The Rushmore Group, LLC All rights reserved.
© SAP AG and The Rushmore Group, LLC 2008

30. ECC 6.0
3. Work Center
January 2008
3.2 Default Values Tab: 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
© SAP AG - University Alliances and The Rushmore Group, LLC All rights reserved.
© SAP AG and The Rushmore Group, LLC 2008

31. 3.2 Work Center: Default Values Tab
ECC 6.0
January 2008
January 2008
© SAP AG - University Alliances and The Rushmore Group, LLC All rights reserved.
© SAP AG and The Rushmore Group, LLC 2008

32. 3. Work Center 3.3 Capacities Tab
ECC 6.0
3. Work Center
January 2008
3.3 Capacities Tab
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
© SAP AG - University Alliances and The Rushmore Group, LLC All rights reserved.
© SAP AG and The Rushmore Group, LLC 2008

33. 3.3 Work Center: Capacities Tab
ECC 6.0
3.3 Work Center: Capacities Tab
January 2008
January 2008
© SAP AG - University Alliances and The Rushmore Group, LLC All rights reserved.
© SAP AG and The Rushmore Group, LLC 2008

34. 3. Work Center 3.4 Scheduling Tab
ECC 6.0
3. Work Center
January 2008
3.4 Scheduling Tab
Capacity category: Machine, Person, Processing unit
Execution time:
Set up formula
Processing formula
January 2008
© SAP AG - University Alliances and The Rushmore Group, LLC All rights reserved.
© SAP AG and The Rushmore Group, LLC 2008

35. 3.4 Work Center: Scheduling Tab
ECC 6.0
3.4 Work Center: Scheduling Tab
January 2008
January 2008
© SAP AG - University Alliances and The Rushmore Group, LLC All rights reserved.
© SAP AG and The Rushmore Group, LLC 2008

36. 3. Work Center 3.5 Costing Tab
ECC 6.0
3. Work Center
January 2008
3.5 Costing Tab
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
© SAP AG - University Alliances and The Rushmore Group, LLC All rights reserved.
© SAP AG and The Rushmore Group, LLC 2008

37. 3.5 Work Center: Costing Tab
ECC 6.0
3.5 Work Center: Costing Tab
January 2008
January 2008
© SAP AG - University Alliances and The Rushmore Group, LLC All rights reserved.
© SAP AG and The Rushmore Group, LLC 2008

38. 3. Work Center Work Center Control Key:
ECC 6.0
January 2008
3. Work Center Work Center Control Key:
Scheduling
Determine capacity requirements
Inspection characteristics required
Confirmation required
Rework
Cost
Schedule external operations – std values
January 2008
© SAP AG - University Alliances and The Rushmore Group, LLC All rights reserved.
© SAP AG and The Rushmore Group, LLC 2008

39. ECC 6.0
4. 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
© SAP AG - University Alliances and The Rushmore Group, LLC All rights reserved.
© SAP AG and The Rushmore Group, LLC 2008

40. 4.Routing Routing are used to determine: 1) Operations Work centers
ECC 6.0
4.Routing
January 2008
Routing are used to determine:
1) Operations
Work centers
Material components
Production resources and tools
Quality Checks
January 2008
© SAP AG - University Alliances and The Rushmore Group, LLC All rights reserved.
© SAP AG and The Rushmore Group, LLC 2008

41. 4. Routing: Operation overview
ECC 6.0
4. Routing: Operation overview
January 2008
January 2008
© SAP AG - University Alliances and The Rushmore Group, LLC All rights reserved.
© SAP AG and The Rushmore Group, LLC 2008

42. 4. Routing: Material components
ECC 6.0
4. Routing: Material components
January 2008
January 2008
© SAP AG - University Alliances and The Rushmore Group, LLC All rights reserved.
© SAP AG and The Rushmore Group, LLC 2008

43. 4. Routing: Operation graphics overview
ECC 6.0
4. Routing: Operation graphics overview
January 2008
January 2008
© SAP AG - University Alliances and The Rushmore Group, LLC All rights reserved.
© SAP AG and The Rushmore Group, LLC 2008

44. 4. Routing Use Where use routings: Scheduling (dates, times) Costing
ECC 6.0
4. Routing Use
January 2008
Where use routings:
Scheduling (dates, times)
Costing
Capacity planning
Production orders
January 2008
© SAP AG - University Alliances and The Rushmore Group, LLC All rights reserved.
© SAP AG and The Rushmore Group, LLC 2008

45. 4. Routing Standard Sequence Alternate Sequence Parallel Sequence
ECC 6.0
January 2008
4. 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
© SAP AG - University Alliances and The Rushmore Group, LLC All rights reserved.
© SAP AG and The Rushmore Group, LLC 2008

46. 4. Routing Material Types Allowed in Production:
ECC 6.0
January 2008
4. Routing Material Types Allowed in Production:
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
© SAP AG - University Alliances and The Rushmore Group, LLC All rights reserved.
© SAP AG and The Rushmore Group, LLC 2008

47. ECC 6.0
4. Display Routing List
January 2008
A collective report displaying the available routings and the material allocations to operations
Four General Types
Operations Related
Component Related
Production Resource/Tool (PRT ) Related
General List (Operation Control Ticket)
January 2008
© SAP AG - University Alliances and The Rushmore Group, LLC All rights reserved.
© SAP AG and The Rushmore Group, LLC 2008

48. Controlling Activities for Production
ECC 6.0
4. Routing
January 2008
Controlling Activities for Production
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
© SAP AG - University Alliances and The Rushmore Group, LLC All rights reserved.
© SAP AG and The Rushmore Group, LLC 2008

49. 4. Routing Activity Prices Prices (costs) for planned activities
ECC 6.0
January 2008
4. Routing
Activity Prices
Prices (costs) for planned activities
Fixed or Variable
Labor = $$/hour
Machine = $/hour
Overhead = %
January 2008
© SAP AG - University Alliances and The Rushmore Group, LLC All rights reserved.
© SAP AG and The Rushmore Group, LLC 2008

50. ECC 6.0
5. PRTs
January 2008
Master data for machines, equipments, tools, documents, and others.
January 2008
© SAP AG - University Alliances and The Rushmore Group, LLC All rights reserved.
© SAP AG and The Rushmore Group, LLC 2008

51. PP BPI PP Rules Rules PP PP PP ECC 6.0 January 2008
© SAP AG - University Alliances and The Rushmore Group, LLC All rights reserved.
© SAP AG and The Rushmore Group, LLC 2008

52. MRP Control Parameters
ECC 6.0
January 2008
MRP Control Parameters
Environment
Number range
Master Data
Materials Requirements Planning controllers
Float times
Planned Orders
Conversion order type
Dependant requirement availability
January 2008
© SAP AG - University Alliances and The Rushmore Group, LLC All rights reserved.
© SAP AG and The Rushmore Group, LLC 2008

53. 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
© SAP AG - University Alliances and The Rushmore Group, LLC All rights reserved.
© SAP AG and The Rushmore Group, LLC 2008

54. 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
© SAP AG - University Alliances and The Rushmore Group, LLC All rights reserved.
© SAP AG and The Rushmore Group, LLC 2008

55. 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
© SAP AG - University Alliances and The Rushmore Group, LLC All rights reserved.
© SAP AG and The Rushmore Group, LLC 2008

56. Production and Planning
PEN, Inc.
Production and Planning
Master Data

57. Pen Inc. Business Module II for Selling Finished Goods by Production
ECC 6.0
January 2008
Pen Inc. Business Module II 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
© SAP AG - University Alliances and The Rushmore Group, LLC All rights reserved.
© SAP AG and The Rushmore Group, LLC 2008

58. 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.

59. 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
© SAP AG - University Alliances and The Rushmore Group, LLC All rights reserved.
© SAP AG and The Rushmore Group, LLC 2008

60. Production Group ECC 6.0 January 2008
© SAP AG - University Alliances and The Rushmore Group, LLC All rights reserved.
© SAP AG and The Rushmore Group, LLC 2008

61. 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.

62. Exercises: (Due Date – 3/19/2014)
212. Create primary cost elements
213. Create secondary cost elements
214. Create cost element groups
215. Create statistical key figure
216. Create controlling document number ranges
217. Define controlling settlement document number ranges
258. Create vender master records centrally
265. Create bill of materials
266. Create person responsible for work center
267. Create work center location
269. Create capacity
270. Create activity type labor
271. Set activity prices
272. Create work center for production

63. Exercises: (Due Date – 3/19/2014
273. Create finished products routing
274. Display routing list
275A. Create material master for production group
275B. Assign numbers for product group