PP

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SAP Production Planning

A workshop that provides an overview of the

SAP R/3 Production Planning (PP) module

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R/3R/3Client / ServerClient / Server

SDSD

MMMM

PPPP

QAQA

PMPM

HRHR ISIS

OCOC

PSPS

AMAM

COCO

FIFISales &Sales &

DistributionDistribution

MaterialsMaterialsMgt!Mgt!

ProductionProduction

PlanningPlanning

Qualit"Qualit"AssuranceAssurance

Plant Main#Plant Main#tenancetenance

HuanHuanResourcesResources

Industr"Industr"SolutionsSolutions

O$$ice &O$$ice &Couni#Couni#

cationcation

Pro%ectPro%ectS"steS"ste

Fied AssetsFied Assets

Mgt!Mgt!

ControllingControlling

FinancialFinancialAccountingAccounting

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Agenda

Review of Materials Management

PP Organiation

!he MRP "" #oncept in SAP

$ills of Material

%#M

&ork #enters

Routings

Material Re'uirements Planning

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Agenda 'Cont(d)

Processing Planning Results

Production Order Management

#apacit Planning and eveling

Product #ost

!he Production #cle

Sales and Operations Planning

Master Planning and *emand Management Master Production Scheduling

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Revie* o$ MM Organi+ation

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,-e SAP .nterrise Model

Your

Business

SAP

Enterprise

Model

+ou must map our ,usiness into the

-fle.i,le SAP enterprise model

0irst stage in most pro1ects

!he model has a profound effect on the

functionalit availa,le

-Phsical and -logical units of an

organiation

Multiple views of an organiation(financial 2 sales views)

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Material Manageent Organi+ation

Plant

Coan"

Storage

0ocations

Purc-asing

Organi+ation

Purc-asing

1rou

A plant can ,e a phsical plant

or a logical section of a plant

Storage locations are areas where

materials are stored within a plant

A purchasing organiation can ,u

for a num,er of plants

A purchasing group is a su,set

of a purchasing organiation

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Plant 2Plant 2

44 22 33

5SA5SA

Ace Products Organi+ation .ale

Coan"

Plant

Storage Location

Plant 4Plant 4

44 22 33

Plant 3Plant 3

44 22 33

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Organi+ational Structures in R/3

Cost accounting

Accounts

Internal logistics'MRP/Production)

Inventor" anageent

1rou

Controlling areas

Sales organi+ations

Coan" codes

6aluation areas

Plants

Storage locations/batc-es/secial stoc7s

.ternal logistics Purc-asingorgani+ations

LevelsLevels6ie*s6ie*s

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SAP R/3 Integration Model

Sales &Distribution

Sales &Distribution

ProductionPlanning

ProductionPlanning

MaterialsManageent

MaterialsManageent

Finance &Controlling

Finance &Controlling

CustoerCustoer

Sales Order

Shipment

Receiva,le Accounts / #ash Receipt

#redit imit

Material Availa,ilit #heck

!ransfer of Re'uirements

4oods "ssue to SO

4oodsRe

ceip

t

"nvoiceRe

ceipt

Purchase

Order

Accounts Paa,le

"nvoice

Accounting *ocumentProduction #ost

Production OrderProduction Order Receipt

Sales 0orecast / Plan

6endor6endor

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Material ,"e

e5g5 Raw material6 semifinished good6 service6 trading good6 finished product

#ontrols access securit

*etermines how material is procured

#ontrols how material movements affect financial accounts

inked to material num,er ranges

#ontrols what fields appear on what screens

Industr" Sector

#ontrols what fields appear on what screens

5nit o$ Measure

e5g5 Piece6 ,o.6 crate6 pallet

*ifferent parts of the ,usiness can measure 'uantities in different units

Multi#0ingual ,ets

Material Master Data

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Material Master Data

1eneral Data St! 0oc! Seci$ic DataPlant Seci$ic DataSales Seci$ic Data

Material Master

*ata applica,lethroughout the client

e5g5

Material num,er

*escription

7nits of measure

&eight8olume

Product hierarch

*ata dependent on salesorganiation and

distri,ution channel

e5g5

*elivering plant

Sales te.t

Sales units

Shipping data

*ivision

*ata relevantfor planning and

production

e5g5

MRP profile

Production costs

Planning data

8aluation

*ata referring to storageand inventor management

e5g5

9uantities

Special stock

&arehouse

attri,utes

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Material ,"es in t-e Standard SAP

Material ,"e

DI.8

.RSA

F.R,

HA09

HA:AHI9.

0..R

80A1

ROH

6.RP

:.,,

PROD

Service

Spare Part

0inished Product

Semifinished Product

!rading 4oodOperating Suppl

%mpt #ontainers

:on stock "tem

Raw Material

Packaging

#ompetitor Product

Production Resources/ !ools

Descrition

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Product

Data

.ngineering

Design

Sales

Production

Stoc7

Finance

Purc-asing

Master data is a ke piece

of information in the sstem

Master data can ,e seen from

a num,er of views

%ach view can correspond

to an SAP module

%ach view has a num,er

of information screens

%ach view ,elongs to an org unit within the

,usiness

One product ma have multiple plant and

sales views6 one for each plant or sales

area

Master Data 6ie*s

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.ngineering

Design

Sales

Production Stoc7

Finance

Purchasing

.ales o$ Ho* Data is 5sed

!e.ts copied

to purchase orders

Maintains stock levels, plant6 storage

location6 and ,atch

*ata used tocalculate MRP

lead times

#ontrols customer

ordering rules

for material

#ontrols which

4eneral edger

Account is updatedMaterial description

used in reporting

ProductData

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Production Planning

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Production Planning 9asic Data

Routings

:or7 CentersMaterials

CaacitiesInsectionPlans

ProductionFacilities

9ills o$ Material

PP 9asic DataProductionResources/,ools

0;

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Production Planning Functionalit"

Provides overviews from roughcut through

to detailed shop floor planningPP#CRP Caacit" Re;uireents

Planning

#ontrols production costingPP#PC Product Costing

4eneration of order proposals ,ased on

re'uirements defined , PPSOPPP#MRP Material

Re;uireents Planning

4enerates data used for processing orders6

e5g56 dates6 costs and resourcesPP#SFC Production Order Control

#oordination and planning of production activitiesPP#SOP Sales andOerations Planning

Monitoring / analing ongoing production

activities / dataPP#IS S-o Floor

In$oration S"ste

Products6 Production Processesand Resource Re'uirementsPP#9D 9asic Data $or Production

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,-e MRP II Concet in SAP

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Planning 0evels in SAP R/3

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MRP Overvie*

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Material Master MRP/MPS 6ie*s

MRP >0orecast/Re'mts

MRP >0orecast/Re'mts

MRP =

Planning *ata

MRP =

Planning *ata

MRP 3#onsumption *ata

MRP 3#onsumption *ata

&orkScheduling =

&ork

Scheduling =

&orkScheduling >

&orkScheduling >

MRP/MPSMRP/MPSSales *emandSales *emand

Replenishment

Planning

Replenishment

Planning

Production#ontrol

Production#ontrol

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Material Master < MRP I =e" Fields

9asic> 1eneral> and 0ot Si+e Data

Procureent ,"e indicates if the material is e.ternall procured6 or produced

internall or ,oth5

Secial Procureentidentifies special planning rules which ma ,e used for inhouse

production or e.ternal procurement

MRP ,"e determines how the material is planned such as MRP6 MPS6 or consumption

,ased planning

Material 0ead ,ieidentifies for material planning the planned deliver das or in

house production das

0ot Si+e determines which lotsiing procedure the sstem uses tocalculate order 'uantities

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Material Master < MRP 4=e" Fields

Sc-eduling Paraeters 'continued) Planning ,ie Fence? defines a period during which MRP/MPS will not automaticall

add or reschedule orders

Sc-eduling Margin? controls the release period, opening period for a material andscheduling floats for production

Release period is thenum,er of working das in the release period Opening period is the num,er of working das ,etween the order creation and

planned start date

Order floats allows for safet margin ,efore and after production

Planned Deliver"? leadtime for purchased material

In#-ouse Production? leadtime for manufactured material 1R Processing ,ie? goods receipt processing time

%.ample? docktostock time

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Material Master < MRP 2 =e" Fields

Availabilit" C-ec7 indicates whether the sstem generates individual or summaried

re'uirements for sales orders for this material and for planning6 which MRP items the sstemincludes in the availa,ilit check5

Mat!/PPC Status is used to limit the usea,lit of materials for certain activities such as6

purchasing6 ,ills of material

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MRP

Planning

Result

MRP 0ist vs Stoc7 Re;uireents 0ist

!he MRP ist displas the result of the last planning run !he Stock Re'uirements ist displas the most uptodate stock and

re'uirements situation

MRP

Planning

Process

MRP

Planning

Process

Last planningrun results

Stock RequirementsList uses current data

#urrent Stock6

R'mts6 $alances6

planned Receipts6

"ssues

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Re;uireent ,"es

MPS 0.6.0 PAR,S

Indeendent Re;uireents

Planned "ndependent Re'uirements?

Are used for the anonmous (:onorderspecific) planning of production or

procurement (eg5 demand forecast)

#ustomer "ndependent Re'uirements?

Are sales orders on the sstem5 Sales Orders are generall copied directl intothe PP sstem from the S* sstem6 ,ut the can also ,e entered manuall

MRP 0.6.0 PAR,S

Deendent Re;uireents

Are directl related to or derived from the $OM structure for other items or endproducts5 !he are automaticall generated during MRP

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,-e Planning Concet in SAP

Sales

Plan

SOP

Production

Plan

MPSPlanned

"ndependent

Re'uirements

#ustomer "ndependent

Re'uirements

Re'uirements (Orders) from

S* ModuleOffset

=ee 9alanced

Order Proposals

MRP

Planned Orders

Production Orders

Purchase

Re'uisitions

*emand ie

Re'uirements

Order proposals6 planned orders etc are created and ad1usted , running the MRP or MPS programs5

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MPS and MRP

Indeendent Re;uireents?

Sales Orders & Planned

Indeendent Re;uireents

Deendent Re;uireents?Fro 9OM elosion

,iings Resource Re;uireentsQuantit" Re;uireents

Start Finis-

@ul"

4@ul"

0abor Mac-iner"Ra*

Materials

4 2 3 B

Order Proposal

9OM elosion

Stoc7 Re;uireents

0ist

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9ills o$ Material

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9ills o$ Material

Simple BOM Variant BOM Multiple BOM

Simple BOM representing

single material

Similar materials

represented

by variants on one BOM

BOM representing a material

which can be made up of

multiple compositions

e.g. different

components

and quantities

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9ill o$ Material 6alidit"

Area o$ 6alidit" @ !he same $ill of Material can ,e allocated to several plants5

$efore ou can allocate the $OM to a different plant6 the material must e.ist at

the new plant6 the unit of issue on the $OM item must ,e the same5

6alidit" Period (8alid from/to dates)

$ecomes effective with the valid from date

!he validit date is determined , the sstem automaticall to ,e either the ne.t effective

from date6 or =>/3=/=5

A A

$ # $ *

BCCCCfrom =/=/D from =>/3=/D

to =>/3;/D to =>/3=/

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9OM Scra Data

Assebl" Scra@ ield or process scrap resulting from the assem,l of components into

a finished or su,assem,l5 "t is used for calculating material used in an assem,l5 MRP

increases the material re'uirements for all components contained in the assem,l5

Example? 9uantit to produce =;;; units with a =E assem,l scrap F =; units

Coonent Scra @ considers component loss ,efore the component is used in an

assem,l5 0or e.ample6 shrinkage during storage5 !he scrap refers onl to the component

in the assem,l5 &hen the $OM is e.ploded6 MRP increases the 'uantit of thecomponent5

Example? #omponent 9t of =;;; units with a DE component scrap would need =;D; units

re'uired5

Oeration Scra@ scrap resulting from -interoperation scrap during an inspection

process that is not sent ahead to the ne.t operation5 &hen ou enter operation scrap6 ou

must also set the oeration net indicatorwhich determines that the operation scrap iscalculated e.clusive of the assem,l scrap5

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9ill o$ Material 1lossar"

9OM Categor" @ categories $OMGs to represent different o,1ectsH for e.ample?

Material $OM structure of products manufactured %'uipment $OM structure of equipment for plant maintenance *ocument $OM structure of documents such as drawings (35;)

9OM 1rou @ is a collective num,er for all $OMGs in a group which allows for one or several similar

products to ,e decri,ed under one num,er5

AllAlternatives of a multiple $ill of Material All variants of a variant $ill of Material

9OM 5sage @ special view of the $OM which represents a specific area of the compan in which the$OM is usedH for e.ample6 %ngineering6 Production6 #osting6 Sales6 Plant Maintenance5 !he $OM

7sage allows different views to e.ist without separate $OMGs for each usage5

,ec-nical ,"e @ the sstem distinguishes $OMGs according to whether the represent productvariants or production alternatives5 "f ou create a variant for the $OM6 the sstem marks it as a Variant

Bill 5 "f there is more than one alternative for a material6 the sstem marks the $OM as a Multiple Bill5

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9ill o$ Material 1lossar"

BOM Validity Bills of Material are valid over an area and effectivity period.

Area of Validity identifies which plants the BOM has been allocated to

Validity !eriod identifies the from and to effectivity dates. "he default to date is #$%%''''

Item Category (hen you enter a new Bill of Material item) an item category must be assigned.

*t has important control functions such as+

Screen selection Specific processing) such as material number required) negative values supported. "he *tem ,ategory cannot be changed once set. *t must be deleted and readded.

Si-es are maintained for variablesi-e items *tem categories include+

Stoc/ *tems material in stoc/ as a component

0onstoc/ *tems material not stoc/ed with or without a material number

Variablesi-e system calculates the quantity required using formulas

!M Structure *tem used with plant maintenance equipment

1ocument *tem used with 1ocument BOM2s

Su!Items are typically used to represent different installation points for partial

quantities of an item.

*n assembling resistors on a printed circuit board) the installation points are described. "here is no logic related to subitems

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9OM Structure

$OM Ieader

"tem =;"tem >;

"tem 3;

Su, "tem =;

Su, "tem >;

!lant AssignmentValidity !eriod

3elease *ndicator

Stoc/ *tems

0onstoc/ *temsVariable Si-e *tems

1ocument *tems

"e4t *tems

Additional component details

e.g. installation points

for components

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9OM Structure

ProductProduct

Coonent 2Coonent 2

Coonent

34

Coonent

34Coonent

32

Coonent

32Coonent

33

Coonent

33

Coonent 3'assebl")

Coonent 3'assebl")Coonent 4

Coonent 4

Stoc7 aterial8on#stoc7 aterial 6ariable#si+ed ite

,et ite Scra/*aste

Stoc7 aterial8on#stoc7 aterial 6ariable#si+ed ite

,et ite Scra/*aste

9"#roduct Docuent Part Class

Coonents?

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6ariant 9ills o$ Material

Several similar products are represented in one ,ill of material

$ike with$lack 0rame

Iandle,arAssem,l

4ear Assem,l

$ike withRed 0rame

$ike with$lue 0rame

Red Frae/For7Assebl"

9lue Frae/For7Assebl"

#hrome 0orks$lack 0rame

Red 0rame

$lue 0rame

Qt"! $or variant 4Qt"! $or variant 2

9lac7 Frae/For7Assebl"

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Multile 9OM

A finished product can ,e manufactured using different methods of

production with different components or component 'uantities

9t5 for alternative =9t5 for alternative =9t5 for alternative >

Alt = ot Sie = to =;;Alt > ot Sie =;= to D;;Alt 3 ot Sie D;= to =;;;

9t5 for alternative >

Pigent 2

Production 6ariants

9lue Paint

Solvent :ater Pigent 4

One material ,ut with different com,inations of

component material ,ased on production method

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i

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$OM e.plosion

Singlelevel $ill of Material Multilevel $ill of Material

Summaried $ill of Material

Print

9OM Reorting

#omponent &here used

Singlelevel &here used

Multilevel &here used

Summaried &here used C

A 9

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9OM Recursiveness

%=%=

J=J= $3$3 J>J>

%=%= J3J3

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.ngineering C-ange Manageent

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.ngineering C-ange Manageent

#hanges to o,1ect tpes can ,e made without histor which onl records themaintenance change after5

#hange to o,1ect tpes can also ,e made with histor which is made with

reference to a #hange Master5

#hanges ,ecome effective on a defined date #hanges are documented ,efore and after the change

#hanges are documented in a #hange Master Record

i i - -

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.ngineering C-ange Manageent C-ange Master

Std RoutingsRef Oper Sets

Equip Rtngs

Task Lists

Mater'l BOMsEquip BOMs

Bills of Material

Documentsin DMS

DocumentsInfo

QualitManagement

Inspection!lans

"#angeMaster

Record

O$%ect Tpes&

Su$Tpes&

. i i C- M

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.ngineering C-ange Manageent

C-ange 8uber E'Master Record)

Material Routing$OM

C-ange 8uber Master Record E

*ocument

;;;;;;;= ;=/;=/D O,solescence 8alid Material;;;;;;;> ;>/;=/D Su,stitute $locked $OM

;;;;;;;3 ;3/;=/D Address #hange 8alid *ocument

;;;;;;;K ;K/;=/D Safet #ouncil 8alid Routing

#hange :o5 *ate Reason for #hange Status O,1ect

#hanges possi,le for?

P i Ob% , i C- M

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Processing Ob%ect ,"es using C-ange Masters

Change theChange Master

Apply Change"umer to

O#ects

$eporting o%Change O#ects

Create aChange Master

*efine which o,1ects will ,e controlled , the change masterProcess #hange Master assignment

*escri,e reason for the change

Process a *ate Shift which moves the $OM validit date

Maintain $OMs and Routings with referenceto a change :o5

Reference o,1ect using change :o5

: 7 C t

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:or7 Centers

: 7 C

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Assebl"

0ine

Mac-ines

Peole

Production

0ine

Capacity

Requirementslanning

!cheduling,Execution "imes

Costing

:or7 Centers

:or7

Centers

Cost

Center

: 7 C d R i

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:or7 Centers and Routings

Routing

Oeration 4

Oeration 2

Oeration 3

:or7 Center :4

Cost Center 4

Assebl"

Cost Centre 2

:or7 Center :2Finis-ing

Cost Center 2

:or7 Center :4

Cost Center 4

Assebl"

:or7 Center Categor"

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:or7 Center Categor"

&ork centers are allocated to different work center categories

!he work center categor is used to control the field and screen selection

for work centers during work center maintenance5

&ork #enter #ategor Screen 8iew

Statistical &ork center $asic *ata

Production &ork #enter $asic *ata

*efault 8alues

#apacit 8alues

Scheduling

#ost #enter Assignment

Cost Center Assignent to :or7 Center$ O ti C ti

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$or Oeration Costing

Cost Center

Oper ;;=; Oper ;;>; Oper ;;3; Oper ;;K;

Routing with standard values

Set 7p (S%!)

Machine (MA#I)

a,or (A$)

&ork #enter

with Activitiesduring production

Activit Rates

Set 7p L;5;;Mach L

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&ork #enter #apacit

Oper ;;=; Oper ;;>; Oper ;;3; Oper ;;K;

Routing with standard values

Set up 0ormula

Machine !ime 0ormula

!eardown 0ormula

&ork #enter

0ormulas

Set up =5; hrs

Machine D5D hrs

!eardown 5D hrs

Operation Std 8alues

&ork #enter Schedule

5se o$ Forulas in :or7 Centers

Available Caacit" at a :or7 Center

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Available Caacit" at a :or7 Center

N hrs

= hr

hrs

= hr

< hrs

:or7ingHours

$reak

!ime

:or7ingHours less9rea7s

Planned

*owntime

Productive:or7ingHours

Routings

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Routings

Production Master Data

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9OM1rous

9OM1rous

Production Master Data

Materialsand PR,s

Materialsand PR,s

9ills o$Material

9ills o$Material RoutingsRoutings

:or7Centers

:or7Centers

Routing

1rous

Routing1rous

Cost

Centers

CostCenters

#omponentsAllocated toOperations

"tem #ategor

Material !pe

&/# #ategor

Routing Structure 6ie*s

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Routing Structure 6ie*s

Routing

Oeration 3Oeration 2Oeration 4

:or7 Centre? PP#ASS.M

Control =e"?

# ,ie ,7ts# Costing

Oeration ,et?

Pre#asseble$rae

Std 6alues?

0ab?4 insMac-?4 ins

Materials

Coonents9OM

Process

Resource ,ool

'PR,)

Oeration

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Oeration

Oeration t"es

'Main) oeration

Sub#oeration

Sub#oeration

Hierarc-"Costing Coletion con$irations

Sc-eduling al*a"s ta7es lace on t-e'ain) oeration level

,-e control 7e" de$ines *-et-er coletion con$irations and

costing are carried out on t-e 'ain) oeration level> or on t-esub#oeration level!

Indicator? grou oeration sub#oeration levelcobined oeration 'ain) oeration

Oeration / Sub oeration

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Oeration / Sub#oeration

Oeration4

Oeration4

Oeration2

Oeration2

Sub Oeration

4 / 4

at :or7 Center A4

Sub Oeration

4 / 4at :or7 Center A4

Sub Oeration4 / 2

at :or7 Center A2

Sub Oeration4 / 2at :or7 Center A2

Sub Oeration

4 / 3at :or7 Center A3

Sub Oeration

4 / 3at :or7 Center A3

!chedule at Operation #evel

$seful %hen processing for operation &&'&

occurs over multiple %or( centers

Capacity lanning ) Costingpossi*le at !u* Operation #evel #evel

Se;uence Categories

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3 3

2 2

Se;uence Categories

MaterialMaterial

Routing

1rou 4

Routing

1rou 4

Oer 4

Oer 2

Oer 3

Oer B

Oer

Oer

Oer 4

Oer 2

Oer 3

Oer B

Oer

Oer

Oer 4

Oer 4

Oer 2

Oer 4

Oer 4

Oer 2

Oer B

Oer

Oer B

Oer

Alternate !eq &&&'

arallel !eq &&&+

!tandard !eq &&&&

Branch

operations

ReturnOperations

Routing ,"es

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Routing ,"es

Standard 3outing

3eference 3outing

44 22 88

44 22 88

Material

R 4

Re$erence Oeration Sets

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Reference Operation Set

Reference Operation Set +

Re$erence Oeration Sets

Oer 4Oer 4

Oer 2Oer 2

Oer 3Oer 3

Oer BOer B

Oer Oer

Oer 22Oer 22

Oer 2BOer 2B

Oer 2Oer 2

Oer BOer B

Reference OperationSet B

Material Allocation

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Material Allocation

O! 4O! 4

O! 2O! 2

O! 3O! 3

O! 4O! 4

O! 3O! 3

Routing 9OM

ProductProduct

Material#Routing Allocations

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Material

4

4

2

2

4

2

4

2

4

4

4

2

3

4

2

3

4

4

Routing1rou

Routing1rou

Counter

Material#Routing Allocations

A routing alterative can be allocated to several materials. A material in a plant can be allocated to several alternatives.

Routing De$ault 6alues

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Routing De$ault 6alues

RoutingRoutingMaterialMaster

Material

Master:or7

Center

:or7Center

$ase 7nit of Measure

Planner 4roup

Short !e.t

#ontrol Je

Standard 8alues

Activities

Standards !e.t Je

IR data

.ternal Processing

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.ternal Processing

Oer 4Oer 4

Oer 2Oer 2

Oer BOer B

Oer Oer

Purc- Re;nPurc- Re;n

Purc- OrdPurc- Ord

6endor Proc6endor Proc

1oods Rec1oods Rec

Routing data copied to order

including 'uantities and dates

Purchasing creates P5O5

At goods receipt6 the operation

is confirmed

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Routing Oeration Se;uences

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Routing Oeration Se;uences

Standard

Routing represents a standard

se'uence defining productionprocedure

ParallelRouting includes processes whichcan ,e performed simultaneousl

to achieve time efficiencies

SlitRouting includes processes which

can/must ,e split across a num,er

of work centers

OverlaedRouting defines process where one

operation is to overlap with the

following operation

Parallel Oeration Se;uences

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Parallel Oeration Se;uences

Secial $or o$ overlaing

Positioning t-e arallel se;uence at t-e beginning or end o$ an oeration

5sage? $or eale in t-e c-eical industr" $or anal"tical rocesses*-ic- run arallel to t-e roduction rocess

O! 4

O! 2 O! 2

O! 3 O!

O! B

Material Re;uireents Planning

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Material Re;uireents Planning

MRP Features

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MRP Features

MRP

ot siing

Order scheduling

and generation

"nternal production

and e.ternal purchasing

:et re'uirements

calculation

$ill of Material

%.plosion

0orecasting

MRP Overvie*

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MRP Overvie*

Overvie* Purc-ased Ites

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Overvie* Purc-ased Ites

MRP

Purc-asing

Accounting

&arehousemanagement

sstem

4oods receipt

"nventor management8aluation

4oods !ransfer

issue posting

"nvoice receipt

"nvoice verification

Master data

Material

$atches8endors

#ustomers ?

MRP? Stoc-astic Planning

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MRP? Stoc-astic Planning

!ast

,onsumption

Stoc/

"oday

5orecasted

5uture ,onsumption

"ime

!lanned

Orders

MRP? Reorder Point Planning

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MRP? Reorder Point Planning

Reorder Point

Safet Stock

Order *ate *eliver *ate

"ime

Stoc/

For*ard Sc-eduling $or .ternal Procureent

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Purc-asingProcess ,ie

6endor Planned Deliver",ie

Desired Deliver" DateRelease

Order Date

g

,oda"

1oods ReceitProcess ,ie

For*ard sc-eduling used $or reorder oint aterial

8et C-ange Planning

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&aily Accumulation'

Sales Orders

Planned Individual

Re;uireents

Reservations

.ntries

$ro

PlanningFile

:are-ouseStoc7

G

Oen Order Proosals

S-ortages

Order

Proosal

g g

Coverage calculation er re;uireent date

MRP Prere;uisites

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;

Activated for MRPP0A8, 0.6.0

MA,.RIA0 0.6.0 8alid MRP !pe

8alid Material Status

Material MRP 8iews Maintained MRP #ontroller Planned ead !ime MRP 4roup

ot Sie *ata

Material Master MRP 3 =e" Fields

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"

Indeendent Re;uireents Consution Mode? controls consumption of planned independent re'uirements ,

customer re'uirements

Selections? ,ackward6 forward6 or ,oth

Consution Periods 9ac7*ard/For*ard? specifies the num,er of periods of forwardor ,ackward consumption

7sed in con1unction with consumption mode

Storage 0ocation MRP

MRP Indicator? determines whether or not re'uirements6 for a specific storage location6

are planned separatel from the overall plan Reorder 0evel? used for storage location MRP

Relenis-ent Quantit"? used for storage location MRP

MRP ,"es

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"

69

6M

66

PD

M

Manual Reorder Point Planning?

MRP produces order proposals when stock falls ,elow a -reorder point5 !he reorder point

and safet stock levels are entered manuall

Autoatic Reorder Point Planning?

!he reorder point and safet stock level are calculated ,ased on the forecast results

Forecast Planning

!he latest forecast is copied as re'uirements which are used to create order proposals

Deterinistic Planning

MRP produces order proposal(s) to match the e.act 'uantit of the re'uirements ,ased onindependent and dependent demands

Master Production Sc-edulingSimilar to P* ,ut used for master schedule items

0ot Si+ing

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g

Static Periodic Otiu 'Cost )

ot for ot

0i.ed ot sie

Replenish up to

ma.imum stock

level

*ail ot sie

&eekl ot sie

Monthl ot sie

0le.i,le period

ot sie according

to planning calen5

Part period ,alancing

east unit cost procedure

*namic ot sie creation

4roff reorder procedure

MRP? Static 0ot Si+ing

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g

0ot $or 0ot Order Quantit"?

S-ortage Quantit" Ordered Quantit"

Relenis-ent u to Maiu Stoc7 0evel?

Stoc7 re;uired to ac-ieve

aiu stoc7 level set int-e aterial aster

Order

Quantit"

Material

Fied Order

Quantit"

S-ortage

Quantit"

Order

Fied OrderQuantit"

I$Order

Order

OrderFied 0ot Si+e?

S-ortage Quantit"

Fied Order Quantit"

I$

Carr"ing Out t-e Planning Run

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" g g

,otal Planning @ All materials in a given plant

All materials are reviewed , MRP regardless of activit

Onl the materials in a plant that have undergone a change relevantto planning since the last planning run (net change planning)

Planning Interval @ imiting the MRP Planning "nterval

,ie

lanned requirements and

supply order receipts

example

'&& days

MRP Planning Hori+on

Planning Run Otions $or AutoaticCreation o$ Re;uisitions and Deliver" Sc-edules

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C eat o o e;u s t o s a d e e " Sc edu es

MRP Control Paraeter?determine whether or not MRP will automaticall create

re'uisitions or deliver schedules

Otions are?

*o not automaticall create5 Onl create planned order

Automaticall create within the opening period

Automaticall create for the entire planning horion

Oening Period Paraeter?allows the user to take advantage of MRPGs automatic

creation features while retaining control over the num,er of open purchasing documents

MRP 0ist

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MRP #ontroller

4roup of Materials

for which controlleris responsi,le

#ontrollerGs MRPisting

4oods Receipt4oods "ssues

MRP Order Proosals

and Planner Messages

$ro MRP Planning run!

Planner can drill do*n to revie* aterial

oveent activit"

Stoc7Overvie*

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!he Stock Overview shows the stock position for all locations within a

#ompan/Plant/Storage ocation/$atch for all dispositions of material

!otal #ompan =;; >; =D

Plant 7S;= !otal =;; >; =D

Soc ;;;=!otal D

$atch ;= !otal KD

$atch ;> !otal 3;

Soc ;;;=!otal >D

5nrestricted Qualit" Ins Reserved On Order !!!

Stoc7 Re;uireents 0ist

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Date MRP .leent Sul"/Deand Re$ .M Quantit" Available

;=/;= S!O#J =;;

;=/;N OR*%R Sales Order >D D

;=/=D P OR* =;;; =>; ;D =;; =D

;>/;= C Planning !ime 0ence

Stock Re'uirements ist ,rings together all the suppl orders6 independent

and dependent demands and stock ,alances for the material5 MRP makes

order proposals to ,alance the suppl/demand position for the material

Single Ite Planning

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Single#level> Single#Ite Planning

Planning carried out for a single item on a $OM5 *ependent re'uirements are onlcreated for materials on the ne.t lower level

Multi#level> Single#Ite Planning

Planning carried out for the complete $OM structure of a material

9ac7*ard Sc-eduling $or .ternal Procureent

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Purc-asingProcess ,ie

6endor Planned Deliver",ie

Desired Deliver" DateCalculated Order

Release Date

Future Re;uireentDate

1oods ReceitProcess ,ie

MRP determines the ,asic scheduling dates using ,ackward scheduling

"f the release date lies in the past6 the sstem automaticall switches toforward scheduling

M$P Planning&ate !! today MRP Planning 0ead ,ie

9ac7*ard Sc-eduling $or In#-ouse Production

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Order ReleaseProcess ,ie

In#-ouseProduction ,ie

OrderFinis-Date

OrderStartDate

FutureRe;uireentDate

1oods ReceitProcess ,ie

MRP determines the ,asic scheduling dates using ,ackward scheduling

"f the release date lies in the past6 the sstem automaticall

swithches to forward scheduling

MRP PlanningDate ## toda"

MRP Planning 0ead ,ie

OrderRelease

Date

Multi#0evel Planning Structure

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.4

Indeendent Re;uireentsCustoer Re;uireents

Planned Orders

Deendent Re;uireents

9294

R4 R2 R3

Planned Orders

DeendentRe;uireents

DeendentRe;uireents

Level 0

Level 2

Level 1

Planned Orders

Planned OrdersPlanned OrdersPlanned Orders

F *emand

F Suppl

Processing Planning Results

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Order Proosals? Planned Orders

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Procureent ,"e isIn#-ouse Production

MRPMRP

Controller

Planned OrderOrder 9t

Order *ate

#apacit Re'ts5

Resource Re'ts5

Planned OrderOrder 9t

Order *ate

#apacit Re'ts5

Resource Re'ts5

Production

Order

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Planning $or .ternal Procureent

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Planned Order

Auto #reation

#onvert Planned Orders to Re'uisitions

Manual #hange/*eletion

Manual #reation

Planning Run MRP Controller

Purc-aseRe;uisition

Purc-ase Order

Deliver"Sc-edule

Auto #hange/*eletion

Auto #reation

Auto #hange/*eletion

Auto #reation

Manual #hange/*eletion

Manual #reation

Manual #hange/*eletion

#reate PO via Re'uisition

Manual #reation

Purc-asing 1rou

Auto #hange or *elete

0in7 to Sc-eduling Agreeents

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Quota ArrangeentQuota Arrangeent

.ternal Sulier.ternal Sulier

MRP Planning RunMRP Planning Run

Source 0ist

Sc-edule Agreeent0ines Created

Sc-edule Agreeent0ines Created

MRP Supplierfrom Source ist

Sc-eduling Agreeent

Distribution Function

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5nits 5nits 5nits 5nits 5nits

Several planned orders are created for partial 'uantities of the dependentre'uirement 'uantit

!he planned orders are scheduled for various dates within the

run time of the production order

A dail provisioning of partial 'uantities distri,uted over the run time

of the order is possi,le

Models a continuous flow process

,otal Re;uireent o$ 2 units $or t-e *ee7

Sales and Oerations Planning

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Sales and Oerations Planning Functions

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SOP specifies sales 'uantities for the long and intermediate term to roughlassess the feasi,ilit of sales and operation plans

Sales and Operations Planning at the Product 4roup or 0/4 level

Materials ma ,e planned together in Product 4roups

Sales 'uantities are determined for future periods

Production 'uantities are then determined on the ,asis of sales

Sales and Oerations Planning < Planning 0evels

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MRP "" is concerned with integrating individual plans within a suppl chain Profita,ilit Analsis @ Revenue and Sales Plans

Sales and Operations Planning @ Sales and Production Plans

Master Planning @ *emand Program and Master Schedule

Material Re'uirements Planning @ *ependent Re'uirements and

Procurement Plan

Sales and Oerations Planning < Stes

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Ste 4 @ Sales Planning of 0uture Sales 9uantities #op in from Sales "nformation Sstem or Profita,ilit Analsis

Automatic forecast ,ased on historical factors

Manual entr of sales 'uantities

Ste 2 @ Production Planning Snchronie production plan with sales plan

Stock level e'ual to ero

Specif a target das suppl , period

Specif a target stock level , period

%nter planning data manuall

Sales and Oerations Planning < Stes

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Ste 3 @ *isaggregation of Planning 8alues *etermine the sales and production 'uantities of product group mem,ers

Modif the disaggregated sales planning data and create a production plan for each

mem,er

Ste B@ !ransfer of Planning 8alues to MRP

Pass the planned sales and production 'uantities as independent re'uirements to

demand management

"f product group data is transferred6 the sstem automaticall disaggregates the

planning data to the finished product level

Sales and Oerations Planning < Product 1rous

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A Product 4roup ,rings together materials according to some criteria such as similartpe or manufacturing process5

ink material master data with product groups

Materials and product groups can ,e mem,ers of more than one group for differentplanning scenarios

Assignment of mem,ers from different plants to the same product group for crossplantplanning

A product group ma have a different unit of measure from its mem,ers e5g5 aggregatein cartons vs pieces

Proportional factors for disaggregation how the product group 'uantiti is distri,utedto its mem,ers

Supports production versions for a material or group Supports multilevel product group hierarch

4raphical support of one or more levels

Sales and Oerations Planning < ,-e Planning ,able

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Sales and Production Planning is carried out using a Planning !a,le which

shows the stock level that results from the sales and operations planning for

,oth materials and product groups

!he Planning !a,le is divided into?

Sales 9uantities

Production 9uantities

!arget *aGs Suppl and !arget Stock evels

Sales and Oerations Planning < Creating a Sales Plan

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Manual *ata %ntr and *istri,ution 0unctions

%ntered directl into the Planning !a,le as a E or 't

#oping *ata from Sales "nformation Sstem

Planned order6 invoiced or deliver 'uantities

!he planning data is aggregated across all materials in the group

#oping from Profita,ilit Analsis

9uantit and performance measures

#oping the 0orecast

Aggregates the consumption values for all the materials in the product group

Sales and Oerations Planning < Creating a Production Plan

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*etermine the 'uantities to produce to meet the sales plan

Snchronie to the Sales Plan @ the sstem copies the sales 'uantities into

the production 'uantities

ero Stock evel @ 7se e.isting stock to cover sales 'uantities5 &hen used

up6 production 'uantities will snchronie with the sales 'uantities !arget Stock evel @ !he sstem determines production 'uantities ,ased on

sales and target stock levels

!arget *as Suppl @ #overage is e.pressed in das

Sales and Oerations Planning < Disaggregation

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0unctionalit is ,ased on proportionalit factors of product group mem,ers

!he result of disaggregation is the sales plan of its mem,ers

Strateg parameters are used to create the production plan from the sales

plan on to a product group mem,er

*isaggregation can ,e carried out for the product group or for selected

mem,ers onl

Master Planning and Deand Manageent

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Sales and Oerations Planning ;

&ork #enter#ontrol "nfoOperation !imes

Order Ieader

Settlement Rule Planned/Actual #osts Operation Se'uence

Order Ieader

Settlement Rule Planned/Actual #osts Operation Se'uence

Operation ;;=; &ork #enter #ontrol "nformation Operation !imes

Operation ;;=; &ork #enter #ontrol "nformation Operation !imes

Material at ;;=; Material :um,er 9uantit *ate

Material at ;;=;

Material :um,er 9uantit *ate

Production Order Header

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Order Header

Main 6ie*

Order Header

Main 6ie*

Order !pe Order :um,er Production Order 9uantit Production Order *ate

Order Header

Master Data

Order Header

Master Data

0or Routing 0or $ill of Material 0or #osting

Order Header

Allocation Data

Order HeaderAllocation Data

0or Plant MRP #ontroller

Order HeaderAcct Assignent

Order HeaderAcct Assignent

Settlement Rates

Order Header

Order Monitoring

Order Header

Order Monitoring

*ate 9uantit

Production Order Oeration

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Oeration

Overvie*

Oeration

Overvie* Operation Se'uence

Oeration

1eneral 6ie*

Oeration

1eneral 6ie*

&ork #enter #ontrol Je !e.t Status

Oeration

Standard 6alues

Oeration

Standard 6alues

$ase 9uantit Standard !imes (Setup6 Machine6 a,or)

Oeration

Dates

Oeration

Dates *ates per time element

Splitting *efault 8alues Overlap *efault 8alues #ontinuous 0low Production

Oeration

Overla/Slit

Oeration

Overla/Slit

Production Order Coonent

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Material :um,er Re'uirement 9uantit Re'uirement *ate

Reservation

"tem #ategor $ulk Material "ndicator

Oeration0ong ,et

Oeration0ong ,et

!e.t Je

Coonent

Overvie*

Coonent

Overvie*

Coonent

1eneral Data

Coonent

1eneral Data

Production Order

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Material? A6 9t? =;; P#SSchd !pe? $

$asic dates? Start/0inish

#omponents Operations;;=; $ = ;;=; PI:ASM;;

;;>; # = ;;>;

;;3; ;;K;

7ser fields?4eneral te.t data9uantit data8alue data*ate fields

Production Order

;;=; PI:ASM;;

;;>;;;3;;;K;

PI:ASM;;Std 8alues?

Setup? ;;D

Prodn? ;D!*own? ;;D

Routing

:or7 Center

A

9 C

9ill o$Material

,-e Production C"cle

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,-e Production C"cle

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Issue

Materials to

Order

Select

$OM

Select

Routing

Schedule

!imes 2 *ates

#alculate

#apacit

Purchase

Re'uisitions

4oods"ssue

Production

Order

#alculate

Planned #osts

Release

Order#heck

Availa,ilit

Print Shop

0loor Papers

CreateOrder

#reate

Re'uired

Purchases

Con$ir

Coletion

Receive colete

goods into stoc7

4oods

Receipt

#onfirmation Slip

#alculate

Actual #osts

Actual

a,or

Production Order C"cle Status

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CR.A,.D R.0.AS.D DISPA,CH.D CO8FIRM.D D.0I6.R.D COMP0.,.

5 $OM and R!4 5 #ompletion #onf 5 #apacit eveling 5 Actual Production 5 4oods Receipt 5 Actual costs

selected irmation possi,le possi,le for oper usage and time delivered settled to

captured cost o,1ects

5 ead !ime 5 Shop paper printed

Scheduling 5 Milestone operation

(M"%)

5 Reservations 5 Availa,ilit #heck

created for possi,le6 at orcomponents ,efore release

5 #apacit Re'mts 5 Material issues

for &ork #enters after oper release

5 Planned Order

costs created (PR#)

5 Settlement Rule *etermined (S%!#)

CR, R.0 DSP, C8F D06 COMP

Production Order Creation

Manual Order Proosal

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ManualOrder Creation

Order ProosalMRP Conversion

DeterineOrder ,"e

RoutingSelection

0ead ,ieSc-eduling

9ill o$ MaterialSelection

%nter start or finish date

depending on scheduling direction

#omponent Overrides Material Reservations "tem #ategories

Alternate Se'uence Assignments

One operation is re'uired#hanges are allowed

be$oreorder release

Production Order Release

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Production OrderRead" $or Release

Material Availabilit"C-ec7

Order orOeration Release

S-o PaerPrinting Possible

Material:it-dra*als Possible

Order release is carried out manuall

7ses checking rules defined in configuration

Online or in ,ackground Pick ist6 #onfirmation Slips6555

Material Availabilit" C-ec7

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Stoc7 on

Hand

=D; 7nits

Reservation

$or

D; 7nits

8etAvailable =D; =;; 3;; =;;

Planned Order

$or

>;; 7nits

Deendent

Re;uireent$or

>;; 7nits

Re;uireent$or 5nits

are Available

Material Availabilit" C-ec7

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Stoc7 on

Hand

=D; 7nits

Reservation

$or

D; 7nits

8et

; 3;; =;;

Planned Order

$or

>;; 7nits

Deendent

Re;uireent$or

>;; 7nits

Re;uireent$or 4 5nitsnot Available

06/01/95Today

1oods Moveent $or a Production Order

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Material =

Material >

Production

4oods

receipt of

Material 3

4oods "ssue

#onsumption ofMaterial = and >

Reservation

Planned 4oods "ssue

7nplanned 4oods "ssue

4oods issues onl appl to stock items

1oods Issue Results

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4oods "ssue

Posting

7pdateReservations

4/ Account7pdate

Accounting

Material

*ocument

Material

7sageStatistics

#ost O,1ectAllocation

Coletion Con$irations

#onfirm

#onfirmO i ;; ;

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Production OrderOerations

;;=; Assem,le $oard

;;>; Assem,le #ase

;;3; Assem,le unit

;;K; 0inal !est

Production Order

Oerations

;;=; Assem,le $oard

;;>; Assem,le #ase

;;3; Assem,le unit

;;K; 0inal !est

#

#onfirmOperation ;;=;

Activities

Operation ;;=;Activities

#onfirmOperation ;;>;

Activities

#onfirmOperation ;;>;

Activities

#onfirmOperation ;;3;

Activities

#onfirm

Operation ;;3;Activities

#onfirmOperation ;;K;

Activities

#onfirmOperation ;;K;

Activities

Partial or 0inal #onfirmation Single or #ollective #onfirmation Milestone #onfirmation Reduction of #apacit Re'uirements *etermination of Actual #osts

Milestone

Con$iration Data

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Quantit"

Dates

0abor

+ield

Scrap 9uantit Scrap Reason

Start date 0inish date

&ork #enter Personnel :um,er 9ualification &age 4roup &age !pe

Caacit"

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Caacit" Planning

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MRP Re'uirementsMRP Re'uirements

#apacit Re'uirements#apacit Re'uirements

#apacit %valuation#apacit %valuation

&ork #enter #apacit&ork #enter #apacit

Master*ata

Material

$OM

Routes

&ork#enter

Master*ata

Material

$OMRoutes

&ork#enter

#apacit evelingto ad1ust capacit

periods

Standard 6alues

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0ormula Je0ormula

#onstants

0ormula Je0ormula

#onstants

Std 8aluesSet up 5D hrs

Proc D5D hrs

!eardown 5D hrs

:o5 Splits

Std 8aluesSet up 5D hrsProc D5D hrs

!eardown 5D hrs

:o5 Splits

0ormulas

Setup Process !/*

0ormulas

Setup Process !/*

:or7 Center Oeration

#apacit

Re'uirements

#apacitRe'uirements

0ormulas

for

Scheduling

and

#apacitRe'mts

0ormulas

for

Scheduling

and

#apacitRe'mts

,ables

Caacit" Sc-eduling

Material Master ead !ime

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0loat $efore 0loat AfterOper ;;=; Oper ;;>; Oper ;;3;

9ueue Setup Process !eardown &ait Move

%.ecution !ime"nteroperation

!ime"nteroperation

!ime

Oeration 0ead ,ie

Material Master ead !ime

0ead ,ie Reduction Measures

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0loat $efore 0loat After9ueue Setup Process !eardown &ait Move (>) (=) () (>)

7se Minimum9ueue !ime

Optional Splittingor Overlapping

7se MinimumMove !ime

Reduce0loat !ime

Reduce0loat !ime

9ueue

(=)

Split ProcessSet up

(=) Split Process

&ait

(=)

! *own

(=)

Move

(=) 0loat After0loat $efore

Standard Forulas

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Operation !ime is 5555

ueue Time ! "#ecution Time ! $ait Time

9ueue !ime specified in the operation

%.ecution !ime F Setup Proc !ime T ot Sie/$ase 9t

&ait !ime specified in the operation

:or7 Center Hierarc-"

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Plant 4

Production

Assem,l

Assmine =

Assmine >

&ork#enter =

&ork#enter >

0a,rication

Plant 2

Production

0a,rication

Mach F =; hrsa,or F N hrs

Mach F < hrsa,or F =; hrs

MachF=< hrsa,orF=N hrs

Product Costing

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Costing Integration

!! "O

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!!!"

!roduct "osting!!MR!

Mat( Requirements

!lanning

!!M!S

Demand Management

!!BD

Basic Data

!!IS

S#op )loor Info

Sstem

!!"R!

"apacit !lanning

!!S)"

!roduction *cti+it

"ntrl(

"O

"O!"

!roduct "ost *cctg(

"O!*

!rofita$ilit *nalsis

"O!*

!rofit "enters

"OO!*Orders

"O""*

"ost "enter

*ccounting

R/3R/3Client / ServerClient / Server

SDSD

MMMM

PPPP

QAQA

PMPM

HRHR ISIS

OCOC

PSPS

AMAM

COCO

FIFISales &Sales &DistributionDistribution

MaterialsMaterialsMgt!Mgt!

ProductionProductionPlanningPlanning

Qualit"Qualit"AssuranceAssurance

Plant Main#Plant Main#tenancetenance

HuanHuanResourcesResources

Industr"Industr"SolutionsSolutions

O$$ice &O$$ice &Couni#Couni#

cationcation

Pro%ectPro%ectS"steS"ste

Fied AssetsFied AssetsMgt!Mgt!

ControllingControlling

FinancialFinancialAccountingAccounting

Costing and Organi+ational Structures

Client

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Plant PP4 Plant PP2 Plant PP3 Plant 4

6aluation

area PP46aluation

area PP2

6aluation

area PP3

6aluation

area 4

Coan"

code 4Coan"

code 2

Coan"

code PP4

Controlling

area 4

Controlling

area PP4

Client

C-art o$

accounts

1=R

'

)

'

)

Costing Modules $or Di$$erent ,"es o$ Coanies

M $ t

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Manu$acturers

Ma7e#to#stoc7 roductionStoc7 order

Sales order 'sall batc- rod!)

Process anu$acturingContinuous $lo* roduction

Process anu$! 'c"cl! structures)

Ma7e#to#order roductionManu$! acc! to a sales order

Plant construction

Product

costing

Productio

order

costing

Cost. Obj Controlli

Make-to-stock

Productcosting

Period

costing

Cost. Obj Controlling

Process Costing

Unitcosting

Order/project

costing

Cost. Obj Controlling

Make-to-orderService

Costing

,rade

Costing

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Master Data $or Costing

Material Master Record

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Material Master Record

N #osting 8iew U Product #osting "ndicator6 #osting ot Sie6 Overhead 4roup

Accounting 8iew U 8aluation #lass6 #ategor6 Price #ontrol

9ills o$ Material U Materials re'uired to make the product

Cost CenterU Accounting data

:or7 CenterU Standard 8alue ke and %fficienc Rate

RoutingU Relevanc to #osting "ndicator

Costs $or Cost Roll#u

Ite 4 2 c 3!/c !

Ite 2 3 c 3B>/c 42!

9ill o$ Material

Ite 4 ROH#4 Qt" 2 cs

Ite 2 HA09#4 Qt" 3 cs

ROH#4

Price Control S

Material Price 3!

HA09#4

Price Control S

Cost 4 B!

Cost 2 3!

Cost 3 4!

Cost B L!

Cost 2!

Cost Coonents

#ost components are defined in Product #osting #ustomiing

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Coonent Cost 0a"out 2

#ost #omponent = Raw Materials#ost #omponent > Production

#ost #omponent 3 OverheadMaterial#ost #omponent K Overhead

Production#ost #omponent D OverheadAdmin

#ost #omponent < OverheadSales#ost #omponent %.ternal Processing5

5#ost #omponent =D Miscellaneous

5

#ost components are defined in Product #osting #ustomiing%ach costing variant (standard cost6 current cost6 555) points to a cost component laout

!here can ,e up to K; cost components in a cost component laout0or each cost component identif which costs are rolled up to the ne.t higher level

Coonent Cost 0a"out 4

#ost #omponent = Raw Materials#ost #omponent > Production

#ost #omponent 3 OverheadMaterial#ost #omponent K OverheadProduction

#ost #omponent D OverheadAdmin#ost #omponent < OverheadSales

#ost #omponent %.ternal Processing

55

#ost #omponent =D Miscellaneous5

,-e Production Order and Inventor" Accounting

A Production Order collects all costs associated with making an inventoria,le item !he order

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A Production Order collects all costs associated with making an inventoria,le item5 !he order

-picks up costs through the manufacturing process from the $ill of Material and the Routing5

9ill

o$

Material

Routing

Production Order S,A,5S?

#reated6 Released6

#onfirmed6 *elivered6

Settled

Order? 3 !pe? PP;=

Plant? R;;=

Ss Status?

#R! R% #:0 *8 S%!#9uantities?

!otal Produced? =;; !ons

Scrap? 5;;=

#onfirmed? =;; !ons

*ates?

Schedule ;/=D/D #onfirmed ;/=

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Preliinar"

Order Costing

Final

Order CostingSiultaneous

Order Costing

Planned Order #osts are

calculated from targetinput 'uantities according

to $OM and RoutingStandard Price for R/MPlanned Activit PricesPlanned Overhead Rates

Actual material and

activities used 2 confirmed"nvoices for e.ternal

activitiesOverhead #alculated Rates

Order confirmed complete

9uantities delivered have ,een postedast operation confirmed

complete

Calculating Production Costs

i:or7 center

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Cost

Center Forula

Routing

Standard valuesN 1eneral standard

values

:or7 center

Forula constants

Activit" t"e

Actual tie/;uantit"Activit" rice

Costs

Over-ead Costing

Direct aterial costs Material costs

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Indirect aterial costs

Direct roduction costs

Indirect roduction costs

Costing

s-eet

G

G

Material costs

Production costs

G

Manu$acturing costs

Indirect anageent

costs

Indirect sales costs

Cost o$ goods sold

G

G

,-e Costing S-eet

Calculation basis

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Cost eleent

Origin

Over-ead

Percentage ratesPlanned/actualDeendencies

Order t"e/categor"Plant

Coan" code

9usiness area

Over-ead 7e"

Credit

Cost eleentOriginOb%ect

Cost center

Order

Ma7e#to#Order Production

dMaterialIndividual custoer re;uireents

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Order

Deliver"

1oods issue

Invoice

Material

re;uireents lanning

Production

Sales order

stoc7

,arget

Actual

;

Production eo

Reduction

o$

sales order

stoc7

Cost Ob%ects *it- Ma7e#to#Order Production

Ob%ects o$ integrated R/3 odules

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Ob%ects o$ integrated R/3 odules

re$lected uni;uel"

Material nuber 'MM)

Production order> oeration 'PP)Sales order 'SD)Pro%ect ite 'PS)

8et*or7 'PS)CO order 'CO)

9asic 1eneral Functions $or Cost Ob%ect Controlling

Master data #ost o,1ect cost o,1ect hierarch

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#ost o,1ect6 cost o,1ect hierarch"nternal/e.ternal num,ering sstem

Preliinar" costing#osting itemsAutomatic valuationPlanning aids (revalue6 cop6 reference)#ost component structure

Siultaneous costingActual 'uantit used T priceOverheads

Actual ield#alculation of target costs8ariances according to categor&ork in progress

Anal"sis o$ actual roduct costs#losed periodsSettlement to stock (at standard price)

Settlement to profita,ilit analsis (variances)Controlling

Summariation using classifia,le characteristicsSelection using classifia,le characteristics#ost o,1ect analsis

Cost Roll#u

#osts for assem,lies in the lowlevel code with the highest num,er are calculated first7pper level is production costs at this production level

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pp p power level is costs of all material components processed at this production level!otal costs are the sum of the costs for the upper and lower level costs

Cost Coonent Slit # ,otal

Material Internal Activit" .ternal Activit" Over-ead

Cost Coonent Slit # 5er 0evel

Material

Cost Coonent Slit # 0o*er 0evel

Material Internal Activit" .ternal Activit" Over-ead

Cost Coonent Slit # 5er 0evel

Internal Activit" .ternal Activit" Over-ead

Cost Coonent Slit # ,otal

Material Internal Activit" .ternal Activit" Over-eadFinis-ed

Product

Sei#Finis-ed

Product

Ra*

Material

Master Production Sc-eduling

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Searate Planning Run $or Master Sc-edule Ites

MPS Functions

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*uring an MPS run6 onl master schedule items are planned *ependent re'uirements are created for the $OM level directl ,elow the planning level evels ,elow the master schedule items are not planned #hanges can ,e made to the master plan without effecting lower $OM levels Suppl orders are reviewed for timing and 'uantit to match re'uirements Allows for dail planning without a negative impact on sstem performance

MPS Ite

Assebl" 4 Assebl" 2

MPS level

MRP level

Protects the master plan from automatic changes to the master schedule

Planning ,ie Fence

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Protects the master plan from automatic changes to the master schedule

*uring a planning run6 no automatic change proposals are made within the

planning time fence which is determined for each item in the Material Master5

!he sstem calculates the planning time fence starting from the planning date

Planning Date Planning ,ie Fence

Autoatic Order ProosalsOrder Proosals are Fied

C t Pl d

MPS Procedure

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Create PlannedIndeendent

Re;uireents

Create Planned

Indeendent

Re;uireents

Carr" outSearate MPSPlanning Run

Carr" outSearate MPS

Planning Run

Ma7e C-anges 5sing

Interactive MPS

Ma7e C-anges 5sing

Interactive MPS

Start MRP Run$or 0o*er 0evels

Start MRP Run$or 0o*er 0evels

7sing *emand Management

Proposal #hanges within Planning !ime 0ence Sstem #reates Order Proposals Outside P!0

0ine tune MPS "tems within

Planning !ime 0ence

Carr"#out MRP

Planning Run ,"es

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Regenerative Planning @ all master schedule items are planned for aplant%

"t is generall used during initial startup to insure all items are planned orwhen heav maintenance causes most items to ,e replanned5

8et C-ange Planning @ onl master schedule itemswhich have undergone a

change to the suppl/demand ,alance6 such as warehouse receipts and

issues6 are replanned5 "t is common to run net change MPS dail5

8et C-ange Planning in t-e Planning Hori+on@ shortens the period over

which MPS plans to the planning horion6 which is set in #ustomiing5 "t is

tpicall set to the length of time of the longest lead time item5 !his means

that onl those master schedule items which have undergone a relevant

change within the planning horion are planned5

.ternal Procureent o$ Master Sc-edule Ites

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#reation "ndicator for Purchase Re'uisitions

Planned orders onl Purchase re'uisitions Onl Purchase re'uisitions within the Opening Period and planned orders outside

!he Oening Period is the time re'uired for converting planned orders into purchasere'uisitions5 "t is su,tracted from the order start date of the order5 "t is defined within

the Scheduling Margin in #ustomiing and is assigned to an item in the Material Master5

#reation "ndicator for *eliver Schedules

7sed to control if deliver schedules are to ,e created for master schedule items Re'uires that a Scheduling Agreement e.ist !he supplier must e.ist in the Source ist

Single#Ite> Multi#0evel Planning $or MPS Ites

7seful to check the effect of MPS on su,se'uent $OM levels

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stopping points torevie% planningresult

"n this planning6 the $OM for the master schedule item is e.ploded and dependentre'uirements are created for assem,lies and components5

"f necessar6 processing can ,e stopped at ever level of planning to check the

planning result5 !he planning result can ,e displaed ,efore saving5 An changes

will effect su,se'uent planning results5 Processing can ,e continued without stopping

at an point5

Interactive MPS

"n interactive planning6 ou can change the 'uantities and the dates of planned ordersd h k h l i i l i l i

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and check the result in a simulative planning run5

"t is useful in ad1usting dates of planned orders inside the planning time fence

All changes are simulative until it is saved

Carr"ing out Interactive MPS

#arr out the MRP calculation (PlanningCMRP #alculation)5 !he sstem carries out net

re'uirements and lot siing the same wa as for automatic planning5 #arr out the A,P calculation (4o!oC#alculate A!P 'uantit)5 !he Availa,le to Promise

is the uncommitted portion of the inventor or planned production5

#hange or %nter #hange Proposals (#hange ord proposal or #reate ord proposal)5 !hefi.ing indicator is set in the 0ixedfield to indicate that the order proposal is fi.ed5 Orderscan also ,e deleted (%ditC*el order proposal)

#arr outResc-edule C-ec7 (PlanningCRescheduling check) to schedule the order

*ispla Period !otals to show weekl and monthl period displas in column format

!he sstem does not plan new order proposals within the planning time fence "nstead

Firing Planned Orders

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!he sstem does not plan new order proposals within the planning time fence5 "nstead6

new re'uirements needed within the planning time fence are scheduled at the end of the

planning time fence6 depending on the fi.ing tpe5

Planning Date Planning ,ie Fence

Autoatic Order ProosalsOrder Proosals are Fied

*uring the ne.t planning run6 the sstem places all order proposals that crossed over

the planning time fence at the P!05 !he master scheduler needs to -fi. or firm these

order proposals to the correct date inside the P!05 Once fi.ed6 the sstem will not change5

Orders can ,e firmed collectivel (Planned ordersCfirm) through selection of MRP controller6

material6 run schedule6 production version6 or planning id5

Availabilit" C-ec7

In*ard oveent

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In*ard oveent

o$ goods

O t d t

Stoc7

Purc-ase

Order

Purc-ase

Re;uisitionPlanned

Order

Deliver"SalesOrder

Reservation

Other factors to

take into account?

Safet stock

Stock in transfer

Replenishment lead time$locked stock in 9A