Production Execution Configuration

SAP PP/QMConfiguration Pack

Published by Team of SAPConsultants at SAPTOPJOBS

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INDEX1. OVER VIEW:- 4

2. DEFINE ORDER TYPE 8

2.1 Defining Order type and Order type dependent parameters 12

2.2 Define Number Range for Orders 22

2.3 Define status profile 27

2.4 Define selection profile 40

3. DEFINE PRODUCTION SCHEDULING PROFILE 46

3.1 Define production scheduler 50

4. AVAILABILITY CHECK DEFINE CHECKING GROUP 53

4.1 Define Checking Rule 57

4.2 Define Scope of check 60

4.3 Define Checking control 64

5. DEFINE SCHEDULING PARAMETER FOR PROD. ORDER 68

6. DEFINE CONFIRMATION PARAMETERS 72

7. DEFINE REASON FOR VARIANCE 78

8. DEFINE DEFAULT VALUES 81

9. REPETITIVE MANUFACTURING:- 84

9.1 Define Repetitive Manufacturing Profile 85

9.2 Creating product cost collector 91

9.3 Required Material Master Settings Rep. Mfg.:- 95

10. PP CO INTEGRATION:- 99

10.1 Define Valuation of Goods Received 102

10.2 Define Valuation variant:- 104

10.3 Define Costing Variant 110

11. SUMMARY: - 114

1. Over view:-

We have so far seen the Master data and productionplanning steps in PP. In this document we will go thruthe nuts and bolts of Production Execution. Alright letsbreeze through this.

There are three types of production process in SAP.

Ø Discrete Manufacturing

Ø Repetitive Manufacturing

Ø Production – Process Industries.

Configuration settings related to Discrete Manufacturing andessential Repetitive manufacturing is discussed in detail here.

First let us understand what is happening in the system priorto the production execution process.

a. Planning quantities are derived and maintained inthe system.

b. Material Requirement Planning run will generatethe planned order for the net required quantity withthe start date of the production process

c. Master data (BOM and Routing details) will becopied in to the planned order automatically duringMRP run.

Guys, I believe you got an idea about the steps involved priorto the production execution process. OK, let’s discuss aboutthe production execution process now.

Production Execution process contains five important steps.

They are

Ø Converting planned order to production order

Ø Releasing the production order

Ø Goods Issue for production order

Ø Confirmation of production order

Ø Goods Receipt against production order

a. Converting planned order to production order:-

Planned order has to be converted to production order toaccount the entire production.

Production order or process order type has to bementioned when converting the planned order. Entiremaster data will be copied to the respective order whenconverting the planned order.

Order type is the most important configuration setting forproduction execution.

b. Releasing the production order:-

Release of production order is an important step inproduction order. Releasing of production order indicatesthe commencement of production. Unless the order isreleased, further processing of order is not possible.

While releasing the production order system can perform

§ Material availability

§ Capacity availability

§ Creation of Batch

§ Reservation creation

Configuration settings related to the above functions arecovered in Availability check, order type parameters.

c. Goods Issue for production order:-

Goods issue covers issuing required components to makethe finished product to a production order. While makingthe goods issue, the document number can be updated inthe production order.

Configuration setting related to this is discussed in ordertype parameter.

Goods issue can be made in parallel during confirmationof operation. Relevant configuration settings related togoods issue during confirmation are discussed inconfirmation parameter.

d. Confirmation of production order:-

Reporting of usage of components and activities aretermed as confirmation.

Confirmation to the each operation will be executedaccording to the control key attached with eachoperation.

Confirmation configuration setting controls

Adhering to the sequence of operationUnder delivery / over delivery tolerance

Back-flush componentsProposal and calculation of activity standard value

Above configuration settings are discussed inconfirmation parameter.

e. Goods Receipt against production order:-

Once the production is completed, finished products willbe received from the production order into the respectivestorage area.

This can be achieved through two ways

1. Through confirmation2. Through separate transaction.

Document number will be generated for each goodsreceipt. This document number can be updated in theproduction or process order.

Configuration settings related to these are discussed inProduction scheduling profile and order type parameter.

Now you will easily understand what is backflush? It is theprocess of issuing components automatically while confirmingthe production or process order.

Hope the above briefing has given you the enough idea to goahead for configuration of production execution process.

2. Define Order Type

BACKGROUND

This configuration setting enables to define order type.

Order type governs the parameters relevant to controlling anddefines what type of master data are to be picked up duringthe production or process order creation.

There can be more than one order type for different productionmethod. E.g. one order type for regular production andanother order type for rework processing.

SCENARIO

Create order type YP01 for plant IND6

INSTRUCTIONS

Follow the Menu Path: IMG à Productionà shop floorcontrol à Master Data à Order à Define order types.

Click

Click

Update the Following fieldsField DescriptionOrder category Order category defined by

SAP. Leave it as it is.Order type Key identifying the order type.

E.g. enter YP01 to refer theproduction order type.

Description Enter the description. E.g.Basic production order type.

Classification check box Tick mark in this check boxwill classify the productionorder internally.

Resident time 1 and 2 Related to Archiving theobject. It indicates, thereshould be one month gapbetween deletion indicatorsetting and deletion flag. E.g.Enter 1 in Resident time 1and in resident time 2.

Settlement profile Profile defining how the orderis to be settled. Related tocosting. E.g. enter 30

Status profile Header User created status profileapplicable to this order type.E.g. Leave it blank

Operation Status profile User created status profile foroperation applicable to thisorder type.E.g. Leave it blank

Click Save .

Click

Click

Impact of this configuration in Master Data /Transaction

Order type is a mandatory entry while creating production orprocess order.

Number range and controlling parameter (like settlement rule)are picked during creation of production or process orderaccording to the configuration setting defined in the ordertype.

2.1 Defining Order type and Order type dependentparameters

BACKGROUND

This configuration setting enables to define the order typedependent parameters.

When creating process or production order, order typedependent parameters defines

Selection of master data (BOM and Routing)

Creation of Batch

Updating the document numbers in the order

Creation of reservation

SCENARIO

Define order type dependent parameter for Plant IND6 andorder type YP01.

INSTRUCTIONS

Follow the Menu Path: IMGàProductionà shop floor controlà Master Data à Order à Define order type dependantparameter.

Click

Note: - It is suggested to create plant parameter by copyingform the standard settings.

Select 1000 and PP01 line by clicking the grey box in the left.

Click

Press Pg Dn key in the key board to look at the balanceportion of the screen.

Update the Following fields

Field DescriptionPlant Plant to which this order type

is applicable. E.g. IND6Order type Key identifying the order type.

E.g. enter YP01 to refer theproduction order type.

Production version Indicating how the productionversion is to be selected whilecreating production order. E.g.0 to select automatically.

Routing – Selection ID Selection id number accordingto which routing will beselected. Recollect theCreation of routing selectionid creation.E.g. Enter 01

Routing Selection Requirement and selection ofrouting. To indicate whetherrouting mandatory or not.E.g. Enter 6 to indicaterouting as Mandatory andautomatic selection.

Sequence Exchange Selection of sequence in therouting. E.g. Enter 2 toindicate manual selection ofsequence.Tick the check box to indicate

the alternate sequence can becopied into the order fromrouting.

Task List type What type of task list thisorder type to pickup, whetherReference operation set,Routing. E.g. Enter N toindicate Routing.

Operation detail check checkbox

While transferring routingoperation to Production order,it will check all the entries.E.g. Tick this check box

Routing Text Routing header text will becopied to the production orderif this check box is ticked.E.g. Tick this check box

Operation increment Incremental to the operation.E.g. Enter 0010

BOM Application Indicating which BOM is to beused to this order type. Pleaserefer for more detail. E.g.Enter PP01

Batch search procedure If required maintain thestandard search procedure.E.g. Leave it blank.

In the General tab screenbelow explained details are tobe maintainedAssignment of substitute MRPcontroller and productionscheduler

Leave it blank.

Reservation Purchaserequisition

To indicate when to generatepurchase requisition. E.g.Enter 3 to indicateimmediatelyTick this check box to raisepurchase req. collectively forall externally processedoperations in an order.

Click

Field name Field description and valueTick in the check box willrecord the changes to theorder at header levelTick in this check box willupdate the document detailsin the Logistic InformationSystem which will help to viewthe document from the orderheader.

Tick in the check box willcreate document for respectivegoods issue.

Click

Costing variant planned Costing variant is the onewhich contains valuationvariant which indicate whatprice to pickup to calculateplanned price calculation. E.g.enter as per CO moduleadvise. Can be left blank, asCO also can maintain throughtheir module

Costing variant actual Same as above, to pickup theactual price calculation. E.g.Enter as per CO moduleadvice. Can be left blank, asCO also can maintain throughtheir module.

Results Analysis key Related to CO module. Get thevalue from CO module.E.g. Maintain the SAPStandard.

Planned cost calculation Indicating when to calculatethe planned cost of aproduction order. E.g. Enter 2to calculate planned costwhile saving.

Distribution rule Related to CO to indicate howto distribute cost. E.g. EnterPP1Tick in this check box will notallow the change the net pricewhen copying from PurchaseRequest to Purchase Order.E.g. Leave this check boxblank.

Click

This tab screen controls the parameter related to display.

Leave it as it is with the SAP standard settings.

Note: - If required separate display profile can be created andattached to the order type to have a desired display of reports(missing part list, goods movement details in the order).

Click Save .


When creating the production order or process order, systemwill perform according to the configuration setting done for aspecific order type and plant combination settings.

Order type parameter governs Selection of routing andupdating document for production order, determining plannedand actual cost parameter for any given order type and plantcombination.

Order type is a mandatory entry while creating the productionorder.

2.2 Define Number Range for Orders

BACKGROUND

This configuration setting enables to define number range tothe order type.

For each production or process order a unique number has tobe assigned. Internal number will be picked up from thenumber range defined and it will be assigned automatically atthe time of saving the production or process order.

SCENARIO

Define Number Range for order type YP01.

INSTRUCTIONS

Follow the Menu Path: IMGàProductionà shop floor controlà Master Data à Order à Define number range for orders

Click

Note: - to create the number range intervals to display the number range intervals to change the current number range status

Click

Order type which is already assigned to one group isdisplayed. YP01 not appearing here as it is yet to be assigned.

Click to reach bottom of this page

Click on the line YP01

Click

Click check box of

Click to assign

The number range assigned to order type YP01

Click Save .

Click


While saving the production or process order, number will beassigned automatically to the order.

If an order type does not have a number range assignment,abnormal termination of program will be displayed whilesaving the production or process order.

2.3 Define status profile

BACKGROUND

This configuration setting enables to define the status profile.

Status profile along with the selection profile will be used torestrict the processing of transactions for particular status ofthe order.

SCENARIO

With the system status TECO, it is possible to carryoutconfirmation. It is to be restricted with the user defined status.I.e. when the status is TECO, confirmation of order should notbe possible.

Define status profile to meet the above scenario.

INSTRUCTIONS

Follow the Menu Path: IMGàProductionà shop floor controlà Master Data à Order à Define status profile

Click

Click

Maintain the status profile name. E.g. NOCONF

Maintain Text. E.g. No confirmation after TECO

Maintain Language. E.g. EN to indicate Englsh.

Click

Double click on

Field name Field description and value

Stat Serial number. Enter thesequence number for status.E.g. 1

Status Name of the status. It can beany alphanumeric with fourdigits. E.g. CRTD to indicatethe status created. Maintainyour own status

Short text Maintain the short descriptionof the status.

Init. St… Tick this check to indicate thestatus as initial status. E.g.CRTD will be the initial statusin this status profile. Anystatus can be defined as ainitial status.

Lowest This is used to assign thestatus in an order.

E.g. Status A has statusnumber 30 and the 'loweststatus number' 10.Status B has status number40 and the 'lowest statusnumber' 20. o Once status B was activefor the object, only statuseswith numbers 20 or highermay be activated, even ifstatus A is currently active..

Highest This is similar to the lowestnumber.

E.g. Status A has the statusnumber 30 and the 'highestnumber' 50.

If status A is active, onlystatuses with status numbers

50 or less can be activated..

Continue the above process till you maintain all requiredstatus.

Click

Click

Click

Select the objects as shown above

Click

Click

Click in the status 3 to which status the further processing isto be restricted.

Note: - restriction for further processing is to be done on withthe status TECO.

Click

Click

Below is the list of object to which the control is to beimparted.

Click to go to the next page

Note: - On selecting each radio button it has to be saved.Other wise without saving you will not be able to select morethan one radio button in a page.


Field name Field description and valueBusiness transaction Transaction performed in SAP.

E.g. Confirm order refers tothe order confirmation processthrough transaction codeCO15.

No Influence Indicator specifying that thisstatus does not influence thecorresponding businesstransaction.

Permitted Indicator which specifies thatthe business transaction canbe carried out if this status isactive.

Warning Indicator which specifies thatthe business transaction maybe carried out. However, thesystem issues a warningmessage during processing ofthe transaction.

Forbidd. Indicator specifying that thebusiness transaction cannotbe carried out if this status isactive.

Next action Indicator which specifies thatthe status is to be activatedwhen this businesstransaction is carried out.




Click to go to the next page to look for more possiblefunctions.

Click

Click till you reach the main configuration menu.


Status profile with controls to further processing will beassigned with the selection profile.

2.4 Define selection profile

BACKGROUND

This configuration setting enables to define the selectionprofile.

Selection profile defines when the user defined status is to beactivated. Selection profile will be assigned to the processorder.

Selection profile contains the status profile which controls thebusiness transaction.

SCENARIO

Define selection profile.

INSTRUCTIONS

Follow the Menu Path: IMGàProductionà shop floor controlà Master Data à Order à Define selection profile

Click

Click

Maintain selection profile. E.g. NOCONF

Maintain selection profile description. E.g. Not to confirm inTECO status.

Double click

Click

Field name Field description and value

check box under columnuser

Indicates, whether the statusis user defined status or thesystem status. In thisexample, we have defined thestatus as TECO hence thischeck box is ticked. Note:-status name can be any.

Status prof. Indicates the status profile.Enter the status profile whichwas created by you. E.g. wewill enter NOCONF as statusprofile we have created above.

Status Enter the status on which thestatus profile is to be selected.Note:- status profile containsthe object and the control forthe further action for eachstatus.

Not Indicates the status is activeor not active to pick up thestatus profile.

Click

Click till you reach the main configuration menu.


Selection profile will be attached into the production orprocess order in the user status.

Required status can be activated by the user to activate theuser status.

If the user status TECO is activated in the order with thisselection profile, further confirmation, goods issue, goodsreceipt will not be able to perform.

Below screen shot shows the assignment of status profile andthe user status in the process order.

Use Transaction COR2 to change process order

Click in the status line

Note: - If the user status is applicable to the order typeirrespective of material, it can be assigned at the order typeitself in the order type configuration as shown below.

Assignment of user status at the order header level is shownbelow.

Stat prof. NOCONF is assigned as a user status.

Status TECO Technically completed is selected.

Now, no more goods issue, receipt or confirmation can beperformed.

3. Define production scheduling profile

BACKGROUND

This configuration setting enables to define the productionscheduling profile.

Functions involved with production scheduler are

ü Automatic release of production order while creating

ü Automatic Goods Receipt for Production order whileconfirming

ü Automatically assigning specific order type for materialwhile converting from planned order to production order.

Production scheduling profile is the key attached to materialmaster in work scheduling view.

SCENARIO

Create production scheduling profile.

INSTRUCTIONS

Follow the Menu Path:- IMGàProduction à Shop floorcontrol à Master data à Define production scheduling profile.

Click

Click

Update the Following fieldsField DescriptionPlant Specifying the plant name

where the productionscheduler is to be applicable.E.g. IND6

Production scheduler profile Key identifying the productionscheduler profile. E.g. IND001

Description Description of the productionscheduler profile. E.g.Production Scheduler for ALine

Automatic actions:-On Creation - Release checkbox

While creating the productionorder, Production order will bereleased automatically if thisis ticked. E.g. Tick this checkbox if it is be releaseautomatically.

On Release – Execute Printing Printing of shop floor papersetc as per the settings will beprinted automatically onrelase. E.g. Tick this check

box.Goods Receipt Tick in this check box will

automatically make the GRdocument while confirming.E.g. Tick this check box

Order type – Make To Stock Order type to be used forproducts which are make tostock. If different order typesare to be used for differentproduct, that can be mappedwith different productionscheduler. E.g. PP01

Click Save .

Note: - Apart from the above explained important setting,other controls available here are

• Creation of transfer order in WM Management• Creation of Batch automatically on release of order• Creation of Batch classification as mandatory


Production scheduling profile defined here has to be attachedto the material master Work scheduling view.

Then for those materials, while creating the production order,Release will happen automatically.

3.1 Define production scheduler

BACKGROUND

This configuration setting enables to define the productionscheduler.

Production scheduler is a text entry to map the productionscheduler with production scheduling profile.

Production scheduler can be assigned to the material masterin the work scheduling view.

Functions involved with this key are

ü Automatic release of production order while creating

ü Automatic Goods Receipt for Production order whileconfirming

ü Automatically assigning order type for material whileconverting from planned order to production order.

SCENARIO

Create production scheduler and assign with productionscheduling profile.

INSTRUCTIONS

Follow the Menu Path:- IMGàProduction à Shop floorcontrol à Master data à Define production scheduler.

Click

Click

Update the Following fieldsField DescriptionPlant Specifying the plant name

where the productionscheduler is to be applicable.E.g. IND6

Production Scheduler Key identifying the productionscheduler. E.g. ASG to denotescheduler for A segmentproducts.

Description Description identifying theproduction scheduler. E.g.Scheduler for A seg. Products

Production scheduler profile Key identifying the productionscheduler profile. E.g. IND001

Click Save .


Production scheduler mapped with production schedulingprofile has to be attached to material master Work schedulingview.

Then for those materials, while creating the production order,Release will happen automatically.

4. Availability check Define checking group

BACKGROUND

This configuration setting enables to define the checkinggroup.

Checking group defines the checking method of availabilityduring availability check.

Checking group will be used along with the checking rule tocarryout material availability checking.

SCENARIO

Define checking group.

INSTRUCTIONS

Follow the Menu Path:- IMGàProduction à Shop floorcontrol à Operation à Availability Check à Define checkinggroup.

Click

Click

Update the Following fieldsField DescriptionAvailability This key defines checking

group. This key will bemaintained in the materialmaster MRP2 view. E.g. EnterZY

Description Description of the checkinggroup. E.g. Collective Require.

Total Sales Type of requirement system togenerate during sales orderprocessing. Individualrequirement or collectiverequirement.E.g. Enter B to accumulate

requirement day wise.Total Delivery requirements Type of requirement system to

generate during Deliveryprocessing. Individualrequirement or collectiverequirement.E.g. Enter B to accumulaterequirement day wise.

Block QtRq Tick in this check box willallow multiple users toprocess availability check forone material at the same time.

E.g. Leave this check boxblank as it will block thematerial for other users toaccess while performing theavailability check.

No check – check box If ticked, no ATP checking willbe done. E.g. Leave this blank

Accumulation Indicating the system to takeall planned receipt andcommitted issues whilemaking a ATP check duringsales order processing.E.g. Enter 1 to do the aboveexplained function.

Response To issue output when there isa shortage of material.E.g. Leave it blank

RelChkPlan Availability check to amaterial against PlannedIndependent Requirement.E.g. Leave it blank.

Click Save .


This checking group along with checking rule will performchecking of material availability considering receipts andissues.

This Checking group ZY has to be mentioned in the materialmaster Availability field in MRP2 view.

4.1 Define Checking Rule

BACKGROUND

This configuration setting enables to define the checking rule.

Checking rule configuration is a simple text entry to be definedin the system.

Checking rule with checking group will determine theavailability check.

SCENARIO

Define / Discuss checking rule.

Note: - It is sufficient to use the standard checking rule PP.

INSTRUCTIONS

Follow the Menu Path:- IMGàProduction à Shop floorcontrol à Operation à Availability Check à Define checkingrule.

Click

Click (only to create new entries. Standard SAPchecking rule PP will be used in most of the implementations)

Update the Following fieldsField DescriptionChecking rule - ChR This key defines checking

Rule. E.g. Enter PPDescription Description of the checking

rule. E.g. PP Checking rule.

Click Save .


This checking rule will be defined along with the checkinggroup to perform the availability check.

In MRP related setting Dependant requirement availability thischecking rule is referred.

4.2 Define Scope of check

BACKGROUND

This configuration setting enables to define the scope ofchecking to the combination of checking group and checkingrule.

Scope of checking defines the stock, receipt elements and theissue elements to be considered for availability checking.

Example:-

Stock: -

Stock in transfer; quality stock; blocked stock

Receipt elements:-

Purchase order; Purchase requisition; planned order;

Issue Element: -

Sales order; delivery; reservation

SCENARIO

Define checking scope for the combination of ZP and PP.

INSTRUCTIONS

Follow the Menu Path:- IMGàProduction à Shop floorcontrol à Operation à Availability Check à Define scope ofcheck.

Click

Update the Following fieldsField DescriptionStocks – Various heading withcheck box under Stock

Tick those check boxes whosestocks are to be consideredwhile Availability checking.E.g. Tick the check box asshown above to considerSafety stock, stock in transferand quality inspection stock.

Receipts/Issues Tick those check boxes whosereceipt element and issueelements are to be consideringwhile Availability checking.E.g. Tick the check boxes as

shown above.Check without RLT System will check without

considering ReplenishmentLead Time. I.e. if this checkbox is not ticked, if system notable to find any receipt orstock for a particularrequirement, it will confirm adate after the RLT. RLT is thetime taken from materialmaster. E.g. Tick this checkbox.

Receipt in the past. To indicate whether toconsider the receipt elementwith past date, or only toconsider future date or both.E.g. Leave blank to indicate toconsider receipt element ofboth past and in future.

Click Save .


This checking control will be executed wile performing theAvailability Check.

Note: - material master must contain Availability check as ZYin MRP 3 view.

4.3 Define Checking control

BACKGROUND

This configuration setting enables to define the checkingcontrol.

Checking control configuration is to execute the availabilitychecking during production order or process order creationand release.

This is defined to the combination of plant and order type.

SCENARIO

Define checking control for IND6 plant and order type YP01.

INSTRUCTIONS

Follow the Menu Path:- IMGàProduction à Shop floorcontrol à Operation à Availability Check à Define checkingcontrol.

Click

Click

Update the Following fieldsField DescriptionPlant Plant identifying the

manufacturing facility wherethis ATP logic is to be

applicable. E.g. IND6Order type Production order type to

which this availability check isto be applicable. E.g YP01

Business Function Whether to carryout ATPchecking during productionorder creation or at the time ofproduction order release. E.g.2 to indicate to carryout ATPchecking during Release ofproduction order.

Check Box NO avail.check Indicating the system whetherto carryout ATP or not. Tick inthis check box will notcarryout ATP. E.g. Leave thisblank if ATP is to be carriedout.

Check material availabilitywhen saving order

Indicating the system whetherto carryout ATP or not duringsaving production order afterany changes. E.g. Tick thischeck box.

Checking rule Mention the checking rule.E.g. PP

Type of comp check Whether to check as per ATPor with Planned Independentrequirement. E.g Leave itblank to indicate to check asper ATP.

Mat.Release Control to specify whether toallow release of productionorder or not if any shortage ofmaterial. E.g. Enter 1 to userto decide before release, 2 torelease without asking, 3 tostop releasing.

No Chk for PRT andNo.availchek for capacity

Tick these check boxes toindicate not to carryout anyavailability check.

Click

Click Save .


Link between master data, configuration and transaction: -

Checking rule in the order type configuration is PP

Availability check in the material master is ZP (MRP3 view)

Checking control for the group ZP and PP is maintained

When creating the production order or process order,system follows as below

Read the checking rule for the order type

Read the availability to the material

Read the checking control to the above combination

Output given according to the checking control

5. Define Scheduling Parameter for prod. Order

BACKGROUND

This configuration setting enables to define the schedulingparameter for production or process order type.

Scheduling parameter is essential to schedule the productionorder according to the Task list data. I.e. to determine thestart date and end date for the order and to the eachoperation.

Scheduling data for specific order type defines

• How to schedule production / process order

• Whether to generate capacity requirements

• How to adjust order dates while scheduling

SCENARIO

Define scheduling parameter for order type YP01 in plantIND6.

INSTRUCTIONS

Follow the Menu Path:- IMGàProduction à Shop floorcontrol à Operation à Schedulingà Define schedulingparameters for production orders

Click

Click


Field DescriptionPlant Plant to which this setting is

to be applicable. E.g. IND6Order type Order type under the Plant

IND6 to which this schedulingtype is to be applicable. E.g.Enter YP01

Production scheduler Production scheduler to whichthis setting is applicable. E.g.* to indicate applicable to allproduction scheduler in theplant IND6.Production orders and processorders are scheduled at adetailed planning level usingthe routing or the masterrecipe. Therefore you cannotenter a selection ID. Also thescheduling indicator is setautomatically.

Generate capacity reqs. To indicate the system tocalculate capacityrequirement. Tick this checkbox.

Adjust dates Indicating how to adjust thedates of production order ordependant requirement whenrescheduling. E.g. SelectAdjust basic date or dependdate to adjust order start date.

Scheduling type Type of scheduling. E.g.Backward scheduling.

Automatic Scheduling checkbox

Tick this check box to indicatescheduling to be automatic.E.g. Tick this check box.

Click Save .


This setting determines the scheduling type while creating theproduction order.

If it is backward scheduling, it is required to enter only orderfinish date while creating the production or process order.

6. Define confirmation parameters

BACKGROUND

This configuration setting enables to define the confirmationparameter to the order type in specific plant.

Through confirmation transaction, completion of productionwill be reported in the system. Confirmation parameter to eachorder type is essential to perform the confirmation.

Confirmation parameter defines

• To propose partial confirmation, or full confirmation

• To propose value of activity

• To calculate the activity value according to the quantitychange

• Confirmation sequence is to be adhered to or not

• To display all component irrespective back-flushindicator

SCENARIO

Define confirmation parameter for order type YP01 in PlantIND6.

INSTRUCTIONS

Follow the Menu Path:- IMGàProduction à Shop floorcontrol à Operation à Confirmationà Define Confirmationparameters

Click

Click


Field DescriptionPlant Enter plant name to which

this setting is to be applicable.E.g. IND6

Order type Enter the order type to whichthis setting is to be applicable.E.g. YP01

Operation sequence While confirming, whetheroperation sequence is to befollowed as per routing or not.Select as shown above.

Under delivery While confirming, if the yieldquantity is less than thetolerance limit maintained inthe work scheduling view ofmaterial master how thesystem to behave. Select asabove

Over delivery While confirming, if the yieldquantity is more than thetolerance limit maintained inthe work scheduling view ofmaterial master how thesystem to behave. Select asabove.

QM Result rec. Operation contains the qualitycharacteristics and if thatoperation has to be confirmed,how the system to behavewhen that confirmation by QCis not done.E.g. Select as shown aboveLeave this blank if only theback-flush components are tobe proposed during theconfirmation. If this indicatoris set, system will propose allthe components assigned toan operation.

Click tabscreen

Field DescriptionConfirm type Type of confirmation to be

proposed during confirmationtransaction. E.g. Select asshown above

Goods Movements If this check box is ticked,system will give you a logmessage screen and requestyou to say yes or no to correctthe errors occurred in Goodsmovement duringconfirmation.Tick in this check box will givethe ERROR message incase offailure occurred during thegoods movement.E.g. Leave it blank

Click tab screen

Update the Following fieldsField Description

To propose the quantityduring confirmationtransaction.When the yield quantity ischanged from the defaultdisplay, according to the newyield quantity, all otheractivity and quantities arecalculated with this tick inthis check box.

Make other ticks in the check boxes as shown above, as theyare self explanatory.

Click Save .


While confirming the production order, system will performaccording to the setting maintained here.

Example:-

Production order quantity = 1000.

Over delivery tolerance 25 % maintained in the workscheduling view of material master

While confirming, the confirmation quantity entered as 1500(which is more than over delivery tolerance).

As per the configuration setting here, system will allow tocontinue the transaction.

If it is not to be allowed, change the over delivery tolerancechecking into an error message.

7. Define Reason for Variance

BACKGROUND

This configuration setting enables to define the variancereason.

Variance can be mentioned during confirmation to indicate thereason for deviation from the standard.

It is a simple text configuration.

SCENARIO

Create a variance key to specify “Machine malfunctioning”.

INSTRUCTIONS

Follow the Menu Path: IMGàProduction à Shop floor controlà Operation à Confirmationà Define Reason for variances

Click

Click

Update the Following fieldsField DescriptionPlant Key identifying Plant. E.g

IND6Reason Code identifying the reason.

E.g. Enter 0009Description Description of the code. E.g.

Machine malfunctioning.

Click

Click Save .


Codes maintained here can be selected during confirmation ofproduction / process order to enter the reason for variance.

8. Define Default Values

BACKGROUND

This configuration setting enables to define Default values fortask list.

Default values are required to create the operation inside theproduction order or process order automatically if there is notask list.

Default values are defined to a specific order type.

SCENARIO

Define default values to the order type YA70 in Plant IND6.

INSTRUCTIONS

Follow the Menu Path: IMGàProductionàShop floor controlàOperations à Task list selection à Define default values

Click

Enter Plant. E.g. IND6

Click

Note: - it is suggested to copy from the standard order type.

Select PP01 by clicking the grey box in the left.

Click

Enter the order type as YP01

Note: - values mentioned in each field can be left as it is. Ifrequired it can be changed.

Click

Click


When creating the process order, operation number will beassigned automatically if the routing is not found.

9. Repetitive Manufacturing:-

Repetitive Manufacturing is the technique available in PPmodule to be used for product which are produced with

• Least change in setup for manufacturing

• Always produced in large quantities

• Relatively same items are produced for a longer durationof time without any change in setup

Very essential settings to the repetitive manufacturing are

• Repetitive manufacturing profile

• Product cost collector

• Production version

• Material master setup

The above process are explained in the below steps.

9.1 Define Repetitive Manufacturing Profile

BACKGROUND

This configuration setting enables to define the repetitivemanufacturing profile.

Repetitive Manufacturing profile is the essential settingrequired for Repetitive manufacturing production method.

Repetitive manufacturing profile defines,

ü How to carry out back flush

ü Which cost is to be captured

ü How to reduce the planned order

ü Planned order is mandatory or not

ü Movement types.

SCENARIO

Create a Repetitive Manufacturing profile.

INSTRUCTIONS

Follow the Menu Path: IMGàProduction à RepetitiveManufacturing à Control Data à Define RepetitiveManufacturing Profiles

Click

Click

Update the Following fieldsField DescriptionRem profile Key identifying the

repetitive manufacturingprofile. E.g. AB99

Description of Rem. Profile Description of the profile.E.g. Auto cost coll.fin.Backflush

Tick this check box tomake Backflush andGoods ReceiptTick this check box tocreate the records of errorcreated during postingTick this check box tocreate individual errorrecords.E.g. Leave this blankTick this check box tocorrect error in dialogmode.Select optional radiobutton to make errorcorrection in dialog modeas optional.Tick this check box toselect the price forbackflush material eitherfrom standard costestimate or frompreliminary cost estimatefrom product costcollector.Select appropriate radiobutton to take the price ofthe material, whether totake from standard costestimate or from standardcost estimate.Tick this check box toupdate the batch whereused list.

Click

Tick this check box toreduce the planned order

which contains productionversion detail.Tick this check to reduceplanned order even if it isnot assigned with anyproduction version.E.g. Leave it blankTick this check box if it isrequired to reduce plannedorder containing any otherproduction version.E.g. Leave it blankEnter the number of daysin which planned ordersare to be reduced.E.g. 7, to reduce theplanned order in the lastseven days.Select this radio button tofirm the planned orderswhich are assigned withproduction line in theplanning table already.Tick this check box, if it isrequired to reverse /recreate the planned orderwhen reversing thebackflush.E.g. Leave it blankLeave SAP settings as it is.

Click

In this screen no settings are to be done.

Click

Click Save .

Impact of this configuration on the MasterData / Transaction

Repetitive manufacturing profile can be used in the materialmaster MRP 4 view for materials which are to be handled inrepetitive manufacturing process.

9.2 Creating product cost collector

BACKGROUND

This is a master data to be created for every product which arehandled in repetitive manufacturing.

Product cost collector is the vital master data for RepetitiveManufacturing process.

Though it is a master data, it is explained along with theconfiguration of Repetitive Manufacturing Profile so that it willbe convenient to the users.

Product cost collector will be created for the combination ofmaterial, Plant and Production version. For each productionversion there should be a cost collector.

Product cost collector suggested to be created once thestandard cost estimate run for a specific material wascompleted and updated.

Product cost collector will define

ü Costing variant planned

ü Costing variant actual

ü Costing sheet

With the above input, similar to the standard cost estimate,separate cost will be calculated to this specific combination of

ü Material

ü Plant

ü Production version,

Production version will then be used to for all subsequent costestimate process.

SCENARIO

Create a Product cost collector.

INSTRUCTIONS

Follow the Menu Path: LogisticsàProduction à RepetitiveManufacturing à Master Data à Product cost collector àKKF6N Process Product cost collector.

Double click KKF6N


Field Name Field description and valueMaterial Material code numberPlant Enter the plant in which

product cost collector needs tobe created

Click in the left top to create product cost collector

Field Name Field description and valueSelect this radio button toindicate the product costcollector is to the specificproduction version

Plant Enter the plant in whichproduct cost collector needs tobe created

Production version Enter the production versionto which product cost collectorneeds to be created

Click

Enter the costing variant planned and actual

Click

Nothing needs to be maintained here

Click

Enter the costing lot size. E.g. 1000

Click Save .

There will be a dialog box asking “Do you want to cerate apreliminary cost estimate for the product cost collector”

Click Yes


When backflusing for the planned order in repetitivemanufacturing, actual cost incurred will be collected in theproduct cost collector.

9.3 Required Material Master Settings Rep. Mfg.:-

BACKGROUND

This is a master data setup. Repetitive manufacturing Materialmaster must have the following data setup.

To handle any product in a repetitive manufacturing, followingare the essential settings required to be done in the materialmaster MRP4 view.

1. Repetitive manufacturingcheck box tick needs to be maintained.

2. Repetitive manufacturingprofile needs to be maintained.

3. Production version needs to bemaintained.

Though it is a master data, it is explained along with theconfiguration of Repetitive Manufacturing Profile so that it willbe convenient to the users.

With the above three requirement for Repetitivemanufacturing, relevant material can be handled in therepetitive manufacturing environment.

SCENARIO

Make material master setting to handle material in repetitivemanufacturing.

INSTRUCTIONS

Follow the Menu Path: LogisticsàProduction à Master Dataà Material master à Material à Change à MM02Immediately

Double click MM02 Immediately

Enter the required material code number

Click

Select

Click

Enter Plant. E.g. enter your plant value

Tick the Repetitive manufacturing check box .

Maintain the Repetitive manufacturingprofile.

Click

Field description Field valueVersion number Enter the production version

identity number. 4 digit alphanumeric number may beentered.

Text Enter the description of theproduction version.

Valid from Enter the valid fromValid to Enter the valid to

Click

Field description Field valueFrom Lot size Lot size quantity from which

this production should beapplicable. E.g. enter 1

To Lot size Lot size upto which thisproduction version should beapplicable. Enter 500000

Detailed planning Enter the routing or raterouting group number in thegroup field. E.g. 50004228

Group counter Enter the group counternumber. E.g. 1

Alternative BOM Enter the BOM alternateNumber. E.g. 1 to considerfirst alternate BOM

BOM Usage Enter the BOM usage. E.g. 1

Click to check the consistency of this productionversion

Click Yes

Click

Click

Click

Click Save .

Essential Material master setup completed.


Now the material is completely setup to be handled inrepetitive manufacturing.

Backflush to this material can be done with reference to theplanned order through transaction code MFBF.

10. PP CO Integration:-

Production Planning and Costing modules are tightlyintegrated in costing of the product and productionaccounting.

Before we proceed to the PPCO related configuration settings,let’s discuss the Important terminologies.

Standard Cost Estimate:-

Cost of any product contains

Material cost – cost derived from BOM (BOM Qty*Rate)

Conversion cost – Cost derived from Routing(#Activity * Activity Rate)

Over heads – calculated from costing sheet

#Setup duration, Machining duration, Labour hours, powerconsumption are known as Activities.

Apart from the above two, over head charges will be added to itand the final cost of the product will be arrived.

Valuation Variant:-

Valuation variant will indicate

Whether to consider the planned price or moving averageprice

Whether to consider the planned price of activity for theyear

Whether Subcontracting price is to be considered fromquotation

Whether to take the external processing charges fromoperation

Costing sheet, i.e. over head calculation

Costing Type:-

Costing type specifies the updation of planned value or actualvalue in the production order.

Costing Variant:-

Costing variant will contain the costing type and valuationvariant.

Assignment of cost component structure will be maintained incosting variant.

Important PP related IMG settings:-

ü Define valuation of Goods Received

ü Define Valuation variant

ü Define Costing Variant

Planned Cost:-

Planned cost is for information purpose. Once the order iscrated or released, based on the BOM and Routing plannedorder cost will be calculated.

Cost Calculation process is similar to that explained instandard cost estimate.

E.g. BOM component Quantity x Planned price ( as per thevaluation variant it may take planned price to calculate theplanned material cost)

Actual Cost:-

Actual cost will be calculated based on the actual componentconsumption and utility or activity utilization.

E.g. consumed component quantity x Moving Average price

Note: - as per the valuation variant it may consider the movingaverage price to calculate the actual cost incurred for anyorder

Target Cost:-

This is similar to the planned cost but it might take the ratedetail from moving average price and the component quantitydetail as a standard quantity from BOM. Target cost will becompared with the actual cost to calculate the variances.

Target cost will be calculated by the system after the variancecalculation is completed.

All right, now we shall look into the configuration related toPPCO integration.

10.1 Define Valuation of Goods Received

BACKGROUND

This configuration setting enable to define the valuation ofgoods received.

Valuation at goods receipt controls the price to be consideredto the product when it is received through production order orprocess order after completion manufacturing.

This is mostly applicable to the material which are definedwith moving average price.

SCENARIO

Define Valuation of Goods Received.

We shall display the standard settings as these settings will bedone by CO team.

INSTRUCTIONS

Follow the Menu Path: LogisticsàProduction à Shopfloorcontrol à Integration à Define Valuation of Goods Received

Click

To maintain new entries

Click

Enter valuation area i.e. plant

Enter Valuation Variant. E.g. 007 – Production order actual.

With the above entry, while making GR, product will bereceived at the actual cost incurred in the production orderirrespective of its standard or moving average price.

Click Save .

10.2 Define Valuation variant:-

BACKGROUND

This configuration setting enables to define the valuationvariant.

Valuation variant will indicate

Whether to consider the planned price or moving averageprice

Whether to consider the planned price of activity for theyear

Whether Subcontracting price is to be considered fromquotation

Whether to take the external processing charges fromoperation

Costing sheet, i.e. over head calculation

SCENARIO

Define Valuation variant.


INSTRUCTIONS

Follow the Menu Path: LogisticsàProduction à Shopfloorcontrol à Integration à Define Valuation variant

Click

Let us discuss the standard setting 001

Select 001 valuation variant

Click

Material valuation tab screen define the priority at which theprice for material is to be considered

Click

Priority to pick rate for Activity is defined here

Click

Priority to pick the price for subcontracting is defined here

Click

Click

Costing sheet may be defined here.

Note:- When creating the new entry follow the above step andselect the priority as per the business requirement.

10.3 Define Costing Variant

BACKGROUND

This configuration setting enables to define the costingvariant.

Costing variant will contain the costing type and valuationvariant.

Costing variant will be referred in all product costing andproduction order costing.

SCENARIO

Define costing variant.


INSTRUCTIONS

Follow the Menu Path: LogisticsàProduction à Shopfloorcontrol à Integration à Define Costing variant

Click

Standard setting should be sufficient, if required this settingwill be defined by the CO module. Let us discuss the standardPPP1 costing variant

Select PPP1 costing variant

Click

Click

Click

Click

Valuation variant which we have discussed in the previoustopic can be seen here.

Note to assign new valuation variant to a Plant Click in thetop.

Click

If new value needs to be created, press New entries and followthe above step to assign costing type and valuation variant.

11. Summary: -

Friends,

I am sure, now you are in position to configure the Discreteand Repetitive manufacturing process according to thebusiness blue print to meet the business requirements.

Production Execution Configuration

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