Shopfloor Control and Planning

SHOPFLOOR CONTROL AND PLANNING

1) Define the Production Order Types

ANS: - An order type contains control information that you need for managing orders. You have to assign every order to an order type. You can go through this route for defining order types at a client level: SPRO-Production-Shop floor control-Order types.(T-codes- OPJH & OPL8)  SAP have already defined some standard order types for your ready reference. you can create your own with their help.

Order types dependent parameters are defined to indicate the parameters valid for each order type and plant

2) How to configure the Production Order User Status

ANS : -There are 2 type of staus systemdefine & user define. 1. Production order should not allowed TECO untill confirm the order. 1. Go to BS02, click new & specify the user status name, brief text & lang2. In status number specify 1, Status = Zst1, short text = test1, init status is tick, lowest 1, highest 23. Click on object types & tick PP/PM: order header4. Double click on this & then in the next screen, add- Release - no influence & set- Technically complete - forbidden & no action5. Add next status, 2 Status = Zst2, short text = test2, init status is blank, lowest 1, highest 2- Confirm Prodn. order - no influence & set- Technically complete - allowed & no action Now assign this profile to the order type in OPJH. Create a new order & test. 2. Production order should not allowed GR untill GI. use the same logic as above, replace TECO with GR for Step 1 & for Step 2 specify Goods Movement as no influence & set, then specify GR for prodn order - allowed & no action. But note, if you want to check if all components have been GI before doing GR, then the above status profile wont help, you will have to use the User Exit - MBCF0002, give your specification to your abaper to implement the same.3) What is User Status in PP? A user status is activated by the user and can be created as an addition to the existing system status. You can define and activate any number of user statuses. To define a user status, you need to have created a status profile, which is created per order type in Customizing. The Main user statuses which are in use at Netafim: - Rel. = Released. This user status is given to the production order with its creation. - Prod. = Production. Once a first production confirmation has been made, the Rel. status is changed to Prod.  - Clo. = Closed. User status given to a production order which was fully confirmed (system status CNF). - Check = The controller marks a production order as "Check" after performing a thorough examination with the aid of "Work Order for Check" report (the report list all the production orders with CNF system statuses but with no TECO system status). Upon marking the production order as "Check", the system will automatically mark the production order as TECO. The status indicates that controlling can process the production order. 

4) Define the Production Order Type-dependent Parameters ANS : -In this step, you define the parameters that are valid for each order type and plant. The parameters are split up as follows on the tab pages:

Planning Master dataHere, you define the data that influences master data selection or order master data maintenance:

You can decide whether production versions are selected automatically or manually. The task list application is predefined as 'P'. However, you can also specify an additional task list

application. The routing selection ID defines, for example, the ranking order for routing selection. Routing selection defines whether routings are to be selected and if so, how (manually or

automatically) and whether reference operation sets can also be selected.

Alternative sequences and sequence exchange define whether alternative sequences are permitted and how the sequences are to be exchanged.

The task list type defines which routing type is permitted for production orders. Operation dtl check defines whether operation detail screens are to be checked when the

operations are transferred to the order. Routing text defines that the text from the routing header is copied into the order. You can activate the entry tool for operations to help you when you create operations. BOM application defines how the BOM alternatives are to be automatically selected. Search procedure defines how batch determination is to take place. General Substitute MRP controller/substitute production scheduler are proposed when you create

production orders if an MRP controller or production scheduler are not specified in the material master, or if there is no reference to material.

Reservation/Purch. req. specifies whether certain order objects (operation, components) are relevant to MRP.

Collective purch.req. enables collective purchase requisition per order for externally processed operations or non-stock items.

Inspection type defines how a quality inspection is to be carried out.

Implementation Status change documentsHere, you define whether you want change documents to be written if a status change occurs. You also define the level at which the change documents are to be written.A status change document contains the following:

which status has been changed who changed the status whether the status has been activated or deactivated the transaction in which the status change has been carried outIn the production order , you can define the status at the following levels:

order header level operation level material component level production resource/tool levelStatus change documents can also be defined independently of each other, at each of these four levels.NoteIf you have defined these parameters such that status change documents are written for a particular order level, the SAP System only writes a status change document for a status change from this point in time if the order (or operation/component/PRT) has been created since the status change documents have been activated.

Shop Floor Information SystemYou can specify, for example, whether order data is to be stored in the Shop Floor Information System. You can carry out reports using this system, for example, for materials, orders and work centers.

Documentation of goods movementsHere, you can specify that goods movements are to be documented with reference to an order. Then you can display goods movements, for example, using the order information system.You can enter a profile for displaying documented goods movements on the tab page "Display profiles".

PDCPDC active allows data to be exchanged with a PDC system.

WorkflowWorkflow for PO chg. defines that a workflow is generated when quantities or dates that affect existing purchase orders are changed in the order. In addition, a default rule for the split is displayed on this screen. So that this indicator is also valid for production orders the appropriate settings must be made in Customizing for the Project System.

Progress determination in ordersYou can determine that progress values are calculated for order progress reports.

Controlling ControllingHere, you define the parameters relevant to controlling, such as, for example, costing variants for planned and actual costs and a results analysis key.

Distribution ruleDefault (distribution) rule defines an automatically generated distribution rule for CO settlement.

Display profiles Collective order displayGraphics profile defines how the collective order is to be displayed.

GraphicHere, you define parameters for displaying graphics of operations and sequences in the order.

Missing parts listProfMissPrtsLstOrdNo/PrfMissPrtLstCollOr defines how the missing parts list is to be displayed.

Documentation of goods movementsGoods movements defines which profile is used for displaying documented goods movements.

ActivitiesCreate the necessary parameters for the order type.ANS-OPL81.Let's assume there are 2 different shop floor's A and B. 2.Now let's assume 2 different order type's PP01 and PP02 are created using T Code OPJH. 3.Now we can use order type PP01 in shop floor A and order type PP02 in shop floor B in order to differentiate the business processes. 4.For each order type how the BOM and routing is to be selected,how the order costs is to be settled,for which status changes the system has to create a record are maintained in the order type dependent parameters. 5.These order type dependent parameters may be same or different,it's based on the business requirement. 6.These order types may be assigned the same number range or a different one. 

Define Checking Control  In checking control, you can define for each order type and checking rule which type of check is to be

used for the material availability check:

No automatic check when an order is created, released or partially released (see

Checking Rule)

ATP check

Check against planning

Check when an order is saved

You can also assign checking rules for production resources and tools, and for capacities or define that

no check is to take place.

You define checking control in Customizing for Shop Floor Control by choosing Operations ® Availability

Check® Define Checking Control.

AND

In this work step, you define the check control. The checking rule together with the checking group specify the scope of the check.You can make the checking rule as well as the actual check itself dependent on the following parameters:

plant order type operationThe operation can have the following characteristics:

order created release(d) orderControl parameters for the operation 'create'In addition to this, you can specify whether a planned order can be converted to a production order or process order using collective conversion in the case of:

missing parts missing PRTs or insufficient capacity'Release' control parameters for operationIn addition, you can control whether an order can be released in the case of

missing materials missing PRTs insufficient capacity

ActionsDefine the following:

whether an availability check is to be carried out when you create or release an order whether an availability check is to be carried out when you save an order that has been created

or released which checking rule is to be used what effect a material shortfall is to have on the creation or release of an order

Maintenance orders (PM)The automatic check at time 1 (create), is not executed for maintenance orders (PM).You can only carry out the check manually before you have released your maintenance orders.The automatic check at time 2 (release) is executed if it is switched on. (See "no check" switch).

*Define Confirmation ParametersIn this step, you define the confirmation parameters for each plant and order type. The parameters are split up as follows on tab pages (for information on the validity of the parameters, refer toFurther Notes)

Generally valid settings Control

The properties of the control key Process control are defined elsewhere in Customizing (it can also be called using the symbol next to the control key). It controls the execution of the confirmation processes.

You can define how quantities are determined for automatically generated confirmations (milestone/progress confirmation).

ChecksUsing checks you can define

what happens when the sequence of operations is not adhered to during confirmation or what happens when you want to confirm a larger quantity than was confirmed for the preceding

operationYou can choose between a termination message, an error message, a warning message and an information message.

whether you want the total confirmed quantity of an operation checked for underdelivery or overdelivery tolerance in the order header

what effect a QM result recording has on the confirmation. whether dates (for example, posting date, end of lead time, etc) should also be displayed with a

date that is further in the future than the time of creation HR UpdateYou can decouple HR and PP with the No HR update indicator.

SelectionYou specify that only open orders are selected in the collective order.

Propose time unitsYou can select a time unit that is to be proposed during confirmation.

Goods movementsUsing the all components indicator, you can specify that the system should display all the components assigned to the operation in the goods movement overview (in other words, not only backflushed components). However, if you do not branch to the material overview at confirmation, the system only posts backflushed components.

General individual entry Confirmation functionYou can define here whether a partial confirmation, a final confirmation or a final confirmation with clearing of open reservations is to be proposed for the confirmation.

Error handling/logsYou can use the indicator Actual costs to specify that the log is also displayed if there are no error messages (thus only warnings or information messages).

You can use the Error handling indicator to specify that an error log is displayed for incorrect items in goods movements (for backflush or automatic goods receipts). You then have another opportunity to correct the items with errors before saving, with the aid of the material overview.

Individual operation entry with the initial screen Propose data to be confirmed

You can have the system propose the open confirmation data for entry. For the quantities and activities, the SAP System proposes the difference between the standard values and the confirmed values. Otherwise, the standard values are proposed as confirmation data.

Display confirmed data/display standard valuesYou can have the system display both the confirmed data and the standard values for information purposes.

Screen control time ticketIf you do not select an entry screen on the initial screen, you can control the following alternative entry screens by parameterization:

Screen with the most important actual data without a display of the values already confirmed and the standard values

Screen with quantities and activities and a display of the values already confirmed and the standard values

Screen with quantities and activities, forecasted standard values and a display of the values already confirmed and the standard values

SelectionYou define that confirmable or confirmed operations are also selected during the execution of the confirmation processes

ActivitiesDefine the parameter settings for the confirmations in your plant for the possible order types.

Further NotesFor information about the validity of IMG activities relating to the transactions for confirmation entry, refer toValidity of IMG Activities for Confirmation   .

Scheduling ParametersThe scheduling parameters are defined in Customizing per order type, plant and production scheduler (from the

material master) (Customizing for Shop Floor Control, by choosing   Operations  Scheduling  Define

Scheduling Parameters)   . In what follows the parameters are described that affect the scheduling of a

production order. Further control parameters are described in the course of this section.

Scheduling Type

The scheduling type determines how scheduling is to take place (for example, backwards). When you create a

production order it is proposed on the order header screen. However, you can overwrite the default in the individual

production orders.

Today Scheduling

In Customizing you can specify that an order is rescheduled as soon as it is a certain number of days late ( Start in

the past indicator). The system then automatically carries out today scheduling when the basic start date of the order

is more than the given number of days in the past. Today scheduling is a type of forward scheduling starting from

today’s date and where the necessary reduction measures are applied (see Reduction Measures ).

Rescheduling

You can specify that a production order is to be rescheduled automatically whenever it is saved (indicatorAutomatic

scheduling). If changes relevant to scheduling are made in the order and this indicator is not set then the order is

given the status NTER (dates not current).

Scheduling Allowing for Breaks

With the Scheduling with breaks indicator, you can define that the exact timing of a break is taken into account. It is

then impossible for a calculated date to fall at the time of a break. For scheduling with breaks to occur, an active

version of the available capacity must have been entered in the work center.

Scheduling Based on Production Dates

With the From production dates indicator, you can define that the production dates (scheduled dates) must be defined

for scheduling.

What is a Selection Profile? In a selection profile you can use selection criteria that are combinations of user and system statuses.

Selection profiles are used for selecting in the

order information system and to activate predefined trigger point functions.

You can enter system statuses and user statuses in a selection profile. If you want to make a selection

based on a user status, you need to enter the corresponding status profile when you create the

selection profile. You cannot assign a status profile after you have created the selection profile.

You can find out how to create a selection profile in Customizing for Shop Floor Control, by

choosing Master data

® Order ® Define Selection Profile.

Define Selection Profiles for Information SystemIn this menu option you define selection profiles that you can use to specify status combinations for selecting objects (for example, orders or operations). A selection profile is especially useful if you select a large number of objects repeatedly according to the same selection conditions (for example, orders for printing shop papers, for collective release, or for creating order valuations).

Selection procedureThe selection conditions are evaluated top-down. Here the following rule applies:

Several lines following one another that are linked by an OR are combined and evaluated together. From the block at least one selection condition must be fulfilled.

AND links blocks or individual conditions. All the blocks or individual conditions linked with AND must be fulfilled. An order is no longer part of the evaluation as soon as a block or individual condition is not fulfilled. That means that with every freshly inserted AND a bracket is inserted around the preceding expressions (conjunctive normal form). To select the desired status combinations a reforming of the selection conditions is necessary.

In general one can say that OR links more strongly than AND!

ExampleYou want to define a selection profile with which orders with the following status combinations are selected:

REL (released) CRTD UND MACM (created and material committed)To do this formulate:REL OR (CRTD AND MACM)

But the system interprets:(REL OR CRTD) AND MACM

Orders with the following status combinations are selected:

REL AND MACM CRTD AND MACMThus the original formulation must be reformulated by "multiplying out" to:(REL OR CRTD) AND (REL OR MACM)

Status 'active', 'inactive', or 'never active'You can also define the state of a status according to which a selection is to be made:

If you set the state active the system searches for objects where the given status is presently active.

If you set the state inactive the system searches for objects where the status entered is presently inactive.

If you set the state never active the system searches for orders where the status entered was never active.

ExampleThe following is an example of a selection profile that should select all released orders that either have a missing material or a missing PRT.link status state

REL (released) active

AND MMAT (missing material availability) active

OR MPRT (missing PRT availability) active

The selection is carried out in two steps: First, all released operations are selected (that is, orders with the active status 'REL'). Out of this group the system selects all the orders with missing material or PRT availability (that

is, orders with the active status 'MMAT' or 'MPRT').All the orders are selected with the following status combinations:

RELEASED and MMAT RELEASED and MPRT RELEASED and MMAT and MPRT

Indicator 'not'With this indicator you can reduce the effort required when maintaining selection conditions in particular cases. Many status conditions can be represented more simply by setting the indicator 'not'.

ExampleSelection conditions without 'not' indicator:link not state

<Status> _ inactive

OR <Status> _ never active

Same selection condition with indicator 'not':link not state

<Status> X inactive

RecommendationFor performance reasons, conditions that limit the selection strictly should be placed at the start of the selection profile.

System status/user statusYou can enter both system status and also user status in a selection profile. If you want to select objects according to user status, you must enter the appropriate status profile.If you have maintained a status profile in the status selection profile, you have to assign this status profile to all objects. Selection is restricted via the status selection profile only if you have assigned the status profile to the objects. If you enter a system status in addition to entering a status profile, the system will ignore it unless it has been assigned to the status profile.The status profile is assigned to the objects via

the project profile for the project definition and the WBS elements the network type for the network header and the activities

Language dependence of a selection profileIf a selection profile has been created in a language then it can be used in all languages defined in the system. If user statuses are defined in a selection profile then you should make sure that the user statuses are translated in the corresponding status profile. If no translation exists then you must enter the user status in the language in which it was created.

ActionDefine your own selection profiles if necessary.

Further NotesSelection profiles are used for selection purposes in the information system and to trigger predefined milestone functions.

Where-is the Selection Profile used?  There are are two types of statuses.One is system status and second one is user status.These statuses will tell us current situation of an order.We can't change system statuses.But we can create our own statuses through status profile.With this profile we can control user statuses.In this status profile,1.We define the sequence in which user statuses can be activated,2.We define initial statuses3. Allow or prohibit certain business transactions. Selection profiles are used to select the objects (say production orders) with different status combinations.We assign status profiles to selection profiles in BS42 T-Code.

Control KeyDefinitionA user-defined key that determines how any operation or sub-operation is handled in order processing

and in product costing.

UseYou define control keys in Customizing for either work centers, production orders or routings.

You assign a control key to an operation or sub-operation in routings or production orders. You can

save a control key in a work center, so that when the work center is assigned to an operation or sub-

operation in a routing, it is copied over.

StructureThe following table describes which settings are included in a control key, and whether these setting

are relevant for operations or sub-operations.

For detailed information about individual setting in routings or production orders, call up the input help

(F4) for the control key and then in the detailed information section the F1 help for the indicator.

Control key: Relevance for a (sub)operation

Where-is the Control key used?  

 Control Keys A control key uses the following keys and indicators to determine how an operation or a sub-operation

is to be processed in a task list. Examples of such keys and indictors are:

Scheduling :If you set this indicator, the system carries out scheduling for an operation or it

determines the earliest or latest dates for a sub-operation. If you do not set this indicator, the system

does not schedule the operation or sub-operation, the system automatically sets the duration to zero.

Capacity planning: If you set this indicator, the system creates capacity requirement records for the

operation or sub-operation. If you set this indicator for a control key, you must also set

the scheduling indicator.

The system only creates capacity requirements if you have set the capacity

planning indicator and maintained the corresponding

formulas.

Costing indicator: Use this indicator to specify whether the operation or the sub-operation should be

costed.

Confirmation: Use this indicator to specify whether and how the operation or sub-operation should be

confirmed.

Time tickets: Use this indicator to specify that time tickets are printed for the operation or sub-

operation.

Print operation: Use this indicator to specify that shop papers are printed for the operation or sub-

operation.

External processing: Use this indicator to specify that the operation or sub-operation is to be

performed by a third party. In this case, a purchase requisition is generated during order creation.

The control key is defined in Customizing for the Work center or for the Routing.

 Formula Parameter A formula is identified by its formula key. It is composed of formula parameters that are identified

by parameter IDs.

You create formula parameters and formulas in Customizing for work centers:

Formula parameter in Define formula parameters for work centers

Formulas in Define formulas for work centers

You assign each formula parameter to a data field in the work center or routing. When the formula is

evaluated, each formula parameter has the value that you have entered in the corresponding data

field.

The Origin of Formula Parameter ValuesYou must enter the origin of every formula parameter in Customizing. The origin controls the

assignment of formula parameters to data fields. According to its origin a formula parameter is either

automatically assigned to a data field or you have to enter a field name as well as the origin.

You can refer to formula parameters in work centers or routings either by the parameter ID or by the

key word, which you have to assign to every formula parameter in Customizing. This key word appears

with the assigned field in the work center or routings screen.

Formula parameter values can have the following origins:

Standard value

With the help of the standard value key you can assign up to six formula parameters for

standard values to a work center and consequently to an operation in a routing.

Formula constants in the work center

You can assign a constant value and a unit to up to six work center constants.

General formula constants

You assign general formula constants a fixed value and an unit in Customizing for Formula

parameters

General operation value

The formula parameter is linked to a data field in the general operation data. Typical fields are:

Lot size

Base quantity

Number of splits (partial lots)

Number of employees

If formula parameters have this origin, you must enter the corresponding field names in

Customizing.

User-defined field in the operation

The value of a user-defined field in the operation is assigned to the formula parameter.

In this case the user-field key also controls the assignment of the formula parameter to the

data field by making two data fields available for formula parameters. You define user-field

keys in CustomizingRoutings under Create user-defined fields The key words, with which the

data fields are labeled in the operation, are not defined in the formula parameter directly, but

in the user-field key.

Field in production resource/tool (PRT) assignment

You assign a data field in the production resource/tool assignment to the formula parameter,

for example:

the quantity of the PRT

the usage value of the PRT

Production resource/tool constants

You assign constant values to the formula parameters in the PRT master record.

These formula parameters can only be used in formulas for PRT management.

Define Production Scheduling ProfilesIt is the key use to define the Pp process like scheduling, automatic functions , CApacity planning. And use for converting planned order to production or process order. maintain in WS view. 

Define Production Scheduling ProfilesIn this step you can create production scheduling profiles for specific plants.In a production scheduling profile, you can

specify that in a production order or process order particular business transactions are carried out in parallel

order release on order creation generation of document link from material master on order creation generation of document link from BOM on order creation printing on order release scheduling on order release generation of document link from material master on order release generation of document link from BOM on order release specify that only partial quantities are to be confirmed in an availability check specify that automatic goods receipt should take place enter an overall profile for capacity leveling specify how the capacity requirements of operations should go into the basic load specify when finite scheduling is carried out in the capacity availability check specify that for the confirmation no deficit quantities are updated no surplus quantities are updated neither deficit nor surplus quantities are updated an adjustment of the operation and component quantities to the actual values takes place make various specifications in the area of batch management: automatic batch creation on order creation branch to batch classification on changing a batch extended batch classification via Customer Function Call specify that only transport requirements are created if transport requirements can be generated

for all components in the operation specify that when transport requirements are generated either the committed quantity or the

required quantity are taken into account specify that the creation of transport requirements takes place automatically specify which order type is proposed depending on the business process (make-to-stock, make-

to-order, engineer-to-order, order without material)You can assign a production scheduling profile to a

material (work scheduling screen in material master) production scheduler (Customizing)The assignment to the material has a higher priority.The production scheduling profile is copied to the production order or process order on order creation.

Activities1. Create the necessary production scheduling profiles.

2. Assign the profiles to the appropriate materials or production schedulers.

Define Production Scheduler

A production scheduler typically works in the manufacturing industry and schedules manufacturing processes

to maximize company efficiency and satisfy customer needs. The scheduler determines production priorities

and ensures the company has the resources to achieve them. The overall goal is to keep production processes

flowing smoothly.

Where-is the Production Scheduling Profile and Production Scheduler Used?

Ans-

Define User Exits Selection

In computer software, a user exit is a place in a software program where a customer can arrange for their own tailor-made program to be called. In the R/3 system from SAP, a user exit is contrasted with a customer exit and allows a customer's developer to access program components and data objects within the R/3 system. In R/3, some user exits use Include statements to include customer program enhancements that are called from the program. Other user exits use tables that are accessed through customization.

Automatically Selecting a RoutingCriteria for the Selection

When carrying out automatic selection using the selection ID the system tries to select a routing according to

predefined criteria.

On order creation you specify a material, the quantity of the material to be manufactured and a basic date. When

automatically selecting a routing the system uses the following criteria:

1. Material : First of all the system looks for all the routings that exist for the material.

1. Quantity : The system then looks for all the routings whose lot sizes fit the order quantity

specified. If there are no routings whose lot sizes fit the order quantity then the system looks

without taking the lot size into account.

2. Basic date : The system then determines the date when the routing must be exploded for the

order. It proceeds as follows:

If you have specified the basic start date of the order the system takes this date as the

explosion date for the routing.

If you have specified the basic finish date of the order the system calculates the explosion date

from the basic finish date minus the in-house production time defined in the material master. If the

in-house production time is not defined in the material master record then the system carries out

the same calculation with the lot-size dependent in-house production time.

The system restricts the routing selection to routings that exist at the explosion date.

 ExampleIf the production order was converted from a planned order in which a production version was

specified then the system tries to select a routing using this production version.

Automatic Selection

If an automatic selection is not possible the system functions as follows:

If no routing matches the selection criteria then no routings are displayed (you must make

another selection).

If several routings match the selection criteria equally well then all of them are displayed.

 ExampleTwo priorities are maintained for one selection ID. Routing selection takes place automatically. Two

routings match the first priority equally well. One routing matches the second priority exactly:

In this case, no automatic selection is possible. Thus the system lists the two routings with priority 1

AND the routing with priority 2. You must select one of the three routings manually.

Selection Priority

It can happen that several routings fulfill all the selection criteria. In this case you can also define additional selection

criteria in Customizing according to which the system can automatically select exactly one routing. Selection priorities

can be assigned for the following criteria:

Task list type ( routing , reference operation set )

Use

Status

If a reference operation set is included, then the components that belong to it are also transferred to the production

order.

Production Version

If it is specified in the material master of the material to be produced that the bill of material is to be selected using

a production version and if a routing is also assigned in the production version then this task list is copied to the

order.

 NoteIf there are several production versions, either the system decides automatically which production

version is used, or you choose the production version manually. You make the settings for this in the

order type-dependent parameters (Production version indicator in Customizing for Shop Floor Control

by choosing   Master Data  Order  Define Order-Type Dependent Parameters.

Define Default Values If No Routing ExistsDefine Priorities for BOM Usages 

Priorities for BOM Usage (Selection

Priorities)If the selection priorities for bill of material usage are used the system checks which bills of materials for the material

with different usages exist and chooses the bill of materials whose usage has the highest priority. If a multiple BOM

was found using the selection priority the order quantity decides which alternative is selected.

The usage of selection priorities generally takes place if the bill of material selection is defined in the material master

according to order quantity. If the BOM selection is entered in the material master according to explosion

date/production version even though the BOM usage prohibits this then the BOM selection is also executed using

selection priorities.

 NoteThe selection priorities are assigned to the bill of material usage. The BOM usage is a parameter in the

order type (see Settings for BOM Selection ).

 Controlling the BOM Explosion The following factors determine how a BOM is exploded:

BOM usage

BOM application

Filter defined in the configuration profile

BOM Usage

When you create a BOM, you must enter a usage. This usage defines which application areas (for

example, sales and distribution, engineering/design, or production) a BOM can be exploded in. For

example, the standard R/3 System supports usage 1 for BOM explosion in production. A BOM with

usage 3 is relevant to sales and distribution, too.

The usage determines which indicators are active in the Item status dataset of BOM maintenance

functions. This is where you specify whether BOM items are relevant to Sales or Production, for

example.

Features

The BOM explosion is influenced by the application entered in the configuration profile. The application

determines which usages of a BOM can be exploded and in which order of priority.

You enter the application for exploding the BOM in the configuration profile. However, please note that

you can also enter an application for a sales order item category. This entry overwrites the setting in

the configuration profile. Check the settings for the item category in Customizing for Sales and

Distribution, by choosing Sales

® Sales Documents ® Sales Document Items ® Define item categories.

If you select the Sales order process in the configuration profile, ensure that the application supports

explosion of sales-relevant BOMs and that sales-relevant BOMs have the highest priority.

You define an application that explodes first usage 1 and then usage 3. When you

explode the BOM, the system first checks whether a BOM with usage 1 exists. If a BOM

with usage 1 does exist, the BOM is exploded. If no BOM with usage 1 exists, the

system checks whether a BOM of usage 3 exists.

Handling in the Sales Order If usage 1 is supported by the application, the BOM for the material is found but cannot be exploded, because

usage 1 in the standard R/3 System is not relevant to sales and distribution.

If usage 1 is not supported by the application, the system does not recognize in the sales

order that a BOM exists for the material.

Filters in the Configuration Profile

In the configuration profile, you can define filters so that only certain items are displayed (see

Filters for BOM Explosion).

Define alternative determination for productionIn this step, you define how the automatic determination of alternatives is to run from the point of view of production. BOMs are exploded according to this application for the chosen order type in a specific plant.

RequirementsFirst, complete the step"Define applications".

ActionsIn the standard system, you define the order types per plant in the IMG for production orders. One of the parameters that you choose is the BOM application for alternative determination (   Define order type-dependent parameters ).

 Checking Group Every material that is to take part in the availability check must be assigned to a checking group.

Assignment is carried out in the material master record.

Using the checking group you can define

Whether the materials to be checked are locked during the availability check

If the "Block with TrOfQties" indicator is set, the committed quantities are stored in a table of

locks. This leads to more exact results because the check results of an order are already taken

into account before saving when other orders are checked.

Whether the normal ATP quantity or the cumulated ATP quantity is used

The check with cumulated ATP quantity is recommended because in this check, inconsistencies

in commitments, which can be caused by postponed receipts, are avoided.

The checking group is used to group materials that are to be checked according to the same criteria

(see scope of check).

You can also switch the availability check off for a particular checking group. Materials

with this checking group do not then take part in the check. This is useful, for example,

if the materials are to be planned using KANBAN.

A checking group must also be entered in the material master record (MRP data screens/SD data

screens) for assemblies or components that are to be checked against planning. The checking group is

used to control whether the check against planning is permitted. You have the following options for

setting up the checking group:

No check against planning

If the checking group is set up in this way, no check against planning can be carried out for this

component in the production order. The material, however, can take part in the check

according to ATP logic.

Always check the material against planning

If the checking group is set up in this way, a check against planning can be always be carried

out for this component in the production order. At the same time, you can also execute a

check according to ATP logic for this material.

Only check the material against planning if it is a phantom assembly

If the checking group is set up in this way, the check against planning can only be carried out

for this component in the production order if it is a phantom assembly (special procurement

key: phantom assembly). At the same time, you can also execute a check according to ATP

logic for this material.

The settings for the checking groups are made in Customizing for Shop Floor

Control (Operations ® Availability Check ®

Define Checking Group) in the RelChkPlan field. 

Configuring Availability Check Through Checking Groups

1. The checking group + checking rule determine how the availability check is to be performed.

2. The checking group determines whether and how the system checks the stock availability and generates requirements for material planning. The checking group defines what type of requirements will be passed on i.e. summarized requirements (daily/weekly) or individual requirements for each sales order.

3. The checking rule applies to how the availability check is to be carried out at the transaction level. Note that you must define checking rules for each individual application such as for production orders for example. In Sales and Distribution, the checking rule is specified internally

within the system and cannot be changed.

4. The checking rule, in conjunction with the checking group, determines the scope of the availability check for every business operation; that is, which stocks, receipts and issues are to be included in the availability check and whether the check is to be carried out with or without the replenishment lead time.

5. Briefly explaining the above – checking group determines which type of requirement to be passed on to MRP whether it be individual or summarized and checking rule which is at the transaction level and can be configured independently for each application module, determines which stocks, receipts and issues to be taken into account. For performing an availability check checking group has to work in conjunction with checking rule.

6. Advantages of individual processing over summarized processing –  Backorder processing is possible. You can access (MD04) order, line and schedule line individually which gives a greater control on available stock and requirements placed on stock. The system automatically uses individual requirements in case of special stock items.

7. Required data for the Availability check to be carried out – The Availability check must be switched on at the requirement class level. The Availability check must be set at the schedule line level. A requirements type must exist by which the requirements class can be found. A plant must be defined in the sales order for each schedule line item (in other words plant must be defined for every material in MMR). A checking group must be defined in the material master record in the MRP3 screen in the availability check field.

8. Configuring Availability check and defining Checking Groups – Checking groups are introduced into the sales order based on the setting in the material master record. SAP standard checking groups are 01 – summarized requirements and 02 – individual requirements or you can create your own by copying the standard ones. Total sales and total deliveries columns are there to configure a checking rule to sum up requirements to post to MRP either individually or by day or week. Block quantity required can be set if you want several users to be able to process the material simultaneously in different transactions without blocking each other. The no check indicator is CHECKED when you DO NOT want the system to carry out ATP check.

9. Defining material block for other users – the block check box is an indicator that enables you to block material master records of a particular material during the availability check and restrict other users from accessing same master record and reserve the material. If the block is not set, two users can confirm the same material at the same time for two different orders, not knowing if the stock is available or not. If you select this field, the material is blocked during the

availability check and other users cannot: a) Make changes in the material master record. b) Create purchase orders for the material. C) Create orders for the material.

10. Defining default values for checking groups - Checking groups are introduced into the sales order based on the setting in the material master record. However if there is no entry present in the material master record for the checking group, a default value can be set here, depending on material type and plant. This default value will be used by the system depending on the material type mentioned in MMR and plant in sales order. If an entry exists, this default value is over written by MMR.

11. Controlling Availability Check – in this section, you tell the system what stock on hand and what inward and outward movements of stock it must take into account when performing the availability check in addition to whether or not to consider the replenishment lead time.

12. These settings are based on the checking group that is assigned to the material master record and the checking rule that is predefined and assigned to the sales and distribution transaction.

13. These settings carry out control both for sales order and delivery as well. This is due to the fact that you may want to include specific stock or incoming stock for the sales order, yet at the time of the delivery only include physical stock on hand waiting to be shipped.

14. It is possible to indicate to the system that you would like the availability check NOT TO CHECK the stock at the storage location level. This indicator is used to set the scope of the availability check. 

15. It is used to switch off the check at storage location level. You create a reservation for a particular storage location. However, the scope of the availability check is set in such a way as to exclude the storage location. In this case, the system carries out the check at plant level only and does not take the storage location into account that is specified in the reservation.

16. Should you not want the system to automatically check RLT, you may indicate so here. RLT is the time taken for a material to become available. It is only used when doing an ATP check and is taken from MMR.

17. Defining the elements in the availability check entirely depends on the business needs, but a few tips are given under –  When controlling the Availability check at the time of the sales order, a purchase requisition does not necessarily indicate by it is going to come into the plant. A shipping notification on the other hand - a confirmed purchase order – is a good indicator of receiving stock on a specified date. It is always recommended not to select the shipping notifications for the delivery requirements type as you may not actually receive the stock into plant or warehouse for which you are creating a delivery.

Define Checking RuleAvailability check is carried out in different transactions like Sales order creation, delivery creation, Purchase order creation, goods issue and also in production order.The point to be noted here is every where the availability check is carried out using two basic elements. 1. Checking rule 2. Checking group Now let us understand these two important elements. Checking RuleChecking rule is transaction based, i.e. In STD SAP system, if you are creating the sales order, then it is A, if delivery then it is B, if you are creating/releasing production order, then it is PP. This is almost fixed. What is the use of this...as a single element it does not have any meaning, but with checking group. Checking groupChecking group is the one what you assign in material master at plant level, i.e. for different plant and for the same material or for same plant different material there can be a different checking group. This is assigned in material master in MRP3 view, as a signal element it may not have much meaning except that it may be used for checking at which level - group level or individual level and quantities confirmed in the availability check are to be locked or not. Combination of Checking rule and checking group will define the scope of check In scope of check you will be defining all control parameters in t code OVZ9 I hope you are now clear Checking group you have defined in MMR as 01 and system is checking with checking rule A as it is a sales order you have created Hence the system takes the said combination Checking rules are predefined in SAP almost

Define scope of check

In this menu option, you define the check scope. Checking group and checking rule together specify the scope of the check.

You can specify the following:

which elements relevant to MRP (inward goods movements/outward goods movements) are taken into account (for example, purchase requisition, purchase order, planned order)

which stock categories are taken into account

whether replenishment lead time is checked

Actions

Specify

which inward goods movements and which outward goods movements are to be included in the availability check

which stocks are to be included in the availability check

whether the check should take into account the replenishment lead time

whether the availability should always be checked at plant level.

Defining the Check Control and Scope of

Check For both business events A and AE, you have to check the check control and the scope of the check and

complete the data, if necessary.

Starting from Customizing for SAP APO, choose Global Available-to-Promise (Global ATP) → Product

Availability → Maintain Check Control. 

ATP Check Control: General

The indicator Consider checking horizon may not be set. 

The indicator Consider Past Receipts must be set.

Scope of Check

The ATP categories to be checked are recorded in the scope of the check. If you work with self-defined ATP groups,

you have to define the scope of the check. You can use the scope of the check of the ATP group 02/business event

A/AE as a reference.

All categories important for material requirements planning should be included in the scope of the check.

Scheduling Types  

DefinitionThe following types of scheduling are used in the Project System for scheduling networks:

Forward Scheduling

If you have specified forward scheduling in the network header as the schedule type, you must also

specify the basic start date of the network.

The system starts from the basic start date and schedules forward in time to calculate the earliest

dates of the activities and the scheduled finish first. Then it calculates the latest dates of activities and

the scheduled start of the network.

If you have also specified a basic finish date in addition to the basic start date in the network header,

the system uses the basic finish date as the starting point for backward scheduling.

Backward Scheduling

If you have specified backward scheduling as the scheduling type in the network header, you must

enter the basic finish date of the network.

The system starts from the basic finish date and schedules backward in time to calculate the latest

dates of activities and the scheduled start. Then it calculates the earliest dates of activities and the

scheduled finish of the network.

If you also enter a basic finish date in addition to the basic start date in the network header, the

system uses the basic start date as the starting point for forward scheduling.

Current Date Scheduling

With scheduling to current date, you can see whether the network can be completed by a certain date.

In this method, the system uses the basic finish dates and schedules the network backwards and then

starting with the current date, schedules forwards.

You can use the floats in the activities to determine how many days you still have or are short to make

the finish date.

Only Capacity Requirements

If you specify capacity requirements only as the scheduling type in the network header, the system

copies the basic dates from the network header into the scheduled dates and into the earliest and

latest dates of all activities.

When you have the system only calculate capacity requirements in scheduling,

Time constraints of the activities are taken into consideration

Relationships are ignored.

Special Function: Today Scheduling

"Today" scheduling is a special function in scheduling. In Customizing for the Project System, you can

specify the number the days that the scheduled start may be in the past. If the scheduled start of a

network is further back in the past than allowed, the system at first attempts to reduce the duration. If

this is not sufficient, the system automatically schedules forward starting with today’s date.

It is possible to have negative float times with today scheduling.

The backwards scheduling calculates a scheduled start that is in the past despite

maximum reduction. Forward scheduling then calculates the scheduled finish, starting

at today’s date and using maximum reduction.

Define Standard Value Keys The standard value key determines the meaning of the six standard values in the operation. The SAP System assigns a parameter ID to the standard values of the operation and the work in network activities.                                    or We can say that Standard value key is a combination of  different parameters( you can use maximum 6 paramneters) which describes the function of that workcenter.                        The parameter ID in turn determines: the key word displayed for the standard value on the screen, for example, setup, machine, labor, teardown etc.the dimension (for example, time, quantity, volume) of the standard valueAt the same time, the parameter IDs are the names used for the standard values in formulas for the calculation of execution timecapacity requirementscosts. Transection code for Defining Parameter is OP7Band for Standard Value key is OP19.

Define Standard Value KeysIn this menu option you can maintain standard value keys. The standard value key determines the meaning of the standard values. It is used to assign parameter IDs to the six standard values of operations and the work in network activities.These parameter keys determine the following:

the key word displayed for the standard value on the screen, for example, setup, machine, labor, tear down

the dimension (for example, time, quantity, volume) of the standard valueAt the same time, the parameter IDs are the names used for the standard values for the calculation of:

execution time capacity requirements costs

NoteA parameter which is to be used in a standard value key must have the origin "2".

Actions1. Define the parameter IDs for the standard standard values.

Proceed

2. Define the standard value key.

Proceed

Scheduling margin Key, The float before production, float after production and the release period are defined in the scheduling margin key (Customizing for Shop Floor Control, by choosing Operations -- Scheduling--- Define Scheduling Margin Key) . The scheduling margin key is assigned to the material ( MRP area in the material master) and is transferred when the production order is created. These values can be changed in the production order. You define the following floats with the scheduling margin key: opening period float after production (only in the case of in-house production) float before production (only in the case of in-house production) release period (only in the case of production order management) Floats are always maintained in workdays. Opening period- The number of working days between the date that the order is created and the planned start date. This time is available for the MRP controller to convert a planned order into a purchase requisition or a production order. float after production- The number of working days between the scheduled finish date and the order finish date; used as a float in production scheduling. float before production- The number of working days between the order start date and the scheduled start date; used as a float in production scheduling. 

release period- The number of workdays between the planned start date of the production order and the date for releasing the order. If the order release indicator is set, the production order is released by a background program that takes all dates into account.………………………………..Schedung margin key can be usd in scheduling of production order.In scheduling margin key you can define floatsFloat before ,float after  So basically this is Cushioning  period to process order.If you define 1 DAy before  & 1 Day after floatIn house time is 5 daysIf you schedule the order on 15.05.2010 then that case basic start date will be 14.05.2010 Schedule start date will be 15.05.2010 ,Schedule finish date will be 19.05.2010 ,Basic finish date will be 20.05.2010.This concept can be used where you want some Cushioning period ,normally in process industry when they wan to start batch they require some time to clean the their equipment that may be 1 day, Also they want 1 Day extra to complte that batch.xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

Scheduling margine key is key for FERT /SEMIFG material  where you define the produtction order floats to determine the productiion dates in Production Order /Planned Order . Here you define certain time set up in workdays which are one of the critiera to arrive your Production Dates (Basic Dates/Schedule Dates-CO02-Production Order header ) . More Specifically ,  A schedule margin key consist of folowing  days as required in a production order 1.Opening Period : The number of working days between the date that the order is created and the planned start date. 2.Float After Production  :The number of working days between the scheduled finish date and the order finish date; used as a float in production scheduling 3.Float Before Production  : The number of working days between the order start date and the scheduled start date; used as a float in production scheduling 4.Release Period of the Production Order : The number of workdays between the planned start date of the production order and the date for releasing the  Define Scheduling Margin Key). The scheduling margin key is assigned to the material (MRP area in the material master) and is transferred when the production order is created. These values can be changed in the production order in CO02. Scheduling The float before production, float after production and the release period are defined in the scheduling margin key (Customizing for Shop Floor Control, by choosing Operations  You define Scehduling Margin Key in -OPPQ/OPPR and same has been assinged to MMR in MM02 of that FG/SFG material .

Capacity Categories  

DefinitionA capacity category classifies the capacity based on its characteristics and functions. It determines the

field selection for capacity maintenance.

Examples of capacity categories are "processing unit", "labor", or "storage".

UseCapacity categories belong to different capacity types that specify how the available capacity of a

resource is defined. There are three different capacity types:

Capacity category with available capacity in a time unit

:

Capacity category for which the available capacity is defined based on the time-related

availability and which can therefore be non-continuous. This means you must take non-

productive time periods into account when using the available capacity in the production

process. When defining such an available capacity in resource maintenance, you can use shift

definitions to structure the available capacity according to time-related variables.

The capacity categories processing unit and labor belong to this capacity type.

Capacity category with available capacity in a volume unit / unit of measure

:

Capacity category for which you define the available capacity based on a volume unit or unit of

measure and that is therefore continuous as far as time is concerned. Shift definitions are used

here to describe when the volume / the storable quantity changes.

The capacity category storage belongs to this capacity type.

Capacity category with available capacity in a time unit, volume unit and unit of

measure:

Capacity category for which you define both an available capacity in a time unit and an

available capacity that is continuous as far as time is concerned in a volume unit / unit of

measure. The available capacity that you define in regard to time is used, for example, for

scheduling operations, and the available capacity that you define in a volume unit / unit of

measure is used for quantity-related control of the material flow.

The capacity category processing unit / storage belongs to this capacity type.

IntegrationYou can only assign a capacity category to a resource once. Capacity categories are to correspond to

the respective resource categories.

You use them with the

resource categories as follows:

Capacity category with available capacity in time unit:

You mainly use this capacity type for the resource categories "labor" and "processing unit".

Capacity category with available capacity in volume unit / unit of measure:

You use this type for storage resources that are not used for production.

Capacity category with available capacity in time unit, volume unit and unit of measure:

You use this type for storage resources that are also used for production.

Settings for Single Screen Entry In Customizing for Shop Floor Control, you can define confirmation profiles for single screen entry of

time ticket confirmations by choosing Operations ®Confirmation ® Single Screen Entry ® Define Single Screen Entry.In a confirmation profile, you can define which input and output fields are available to a user or a user group and the

order that they come in. You can also define which settings are made regarding default values.

You assign individual user profiles via the user parameter CORUPROF. If no value is assigned to this parameter, the

standard profile is used. If there is no standard profile, a predefined user interface is used.

For more information, refer to the Implementation Guide (IMG) under  Define Single Screen Entry.

 Scrap Variance  

UseThe scrap variance is the value of the scrap variance quantity. The scrap variance quantity is the

difference between the target scrap quantity (planned scrap quantity converted to yield) and actual

scrap quantity (confirmed scrap quantity). The scrap variance quantity is valuated with the

target cost from which the planned scrap costs have been deducted. 

IntegrationYou can transfer the scrap variances to a

value field in Profitability Analysis (CO-PA).

The scrap variances are part of the order balance that you can transfer to Financial

Accounting (FI), Profit Center Accounting (EC-PCA), and Actual Costing/Material Ledger (CO-PC-ACT).

Note also the capabilities of

user-defined error management. 

PrerequisitesYou must specify that the scrap variance is calculated by the

variance calculation function. You do this by going into Customizing for Product Cost by Order or Product Cost

by Period under Period-End Closing ® Variances ® Define Variance Keys and selecting the Scrap indicator.

You must specify that scrap variances are shown in variance calculation and that the control costs are

calculated by deducting the scrap variances from the actual costs. You do this by going into

Customizing for Product Cost by Order or Product Cost by Period under Period-End Closing

® V ariances ® Check Variance Variants and selecting the Scrap indicator.

You can specify a valuation variant that controls the valuation of scrap in Customizing for Product Cost

By Orderor Product Cost By Period under Period-End Closing® Variances ® Define Valuation Variant for Work in Process and Scrap (Target Costs). You specify the valuation variant for scrap in target cost version 0. If you don’t define a valuation variant for scrap, the scrap variance is valuated at standard cost. The valuation variant for work in process and scrap is also used to valuate thework in process at target cost in Product Cost by Period.In the Product Cost by Period component, SAP recommends valuating the scrap on the basis of the preliminary cost estimate for the product cost collector, particularly in repetitive manufacturing.

In repetitive manufacturing environments, make sure that the reporting point structure that you are using in production

matches the reporting point structure you are using to calculate the target costs. If you change the reporting point

structure, refer to the sections Flexible Reporting Points and Updating the Preliminary Cost Estimate.Make sure that the cost estimate used to valuate the scrap is based on the same task list type and task list group as:

The routing specified in repetitive manufacturing in the production version

If manufacturing orders are being used, the routing in the manufacturing orderEvery cost estimate that is relevant to the valuation of scrap variances must be a product cost estimate and have an itemization.

If you valuate scrap variances on the basis of a preliminary cost estimate for the

manufacturing order, the itemization is generated dynamically when the variances are

calculated.

This may have adverse effects on performance.

Valuating scrap variances on the basis of a preliminary cost estimate for the

manufacturing order is not possible if you are collecting the costs of the manufacturing

order on the product cost collectorrather than on the manufacturing order itself.

FeaturesScrap variances are always calculated in accordance with the valuation variant for work in process and

scrapspecified in target cost version 0. Scrap variances can be used to calculate the net actual costs

with all target cost versions that have the reference base "actual." Check the settings in Customizing

in the variance key and in thevariance variant for this purpose.

The scrap variance are calculated by valuating the difference between the target scrap quantities and

the scrap quantities confirmed at the operations with the target costs from which the costs for planned

scrap have been deducted. The target scrap quantities are determined on the basis of the cost

estimate used to calculate target costs, such as the standard cost estimate for the material or the

preliminary cost estimate for a production order. If you have not planned any operation scrap in the

routing, the value of the confirmed scrap quantity is reported as a scrap variance.

The valuation variant for work in process and scrap enables you to control which cost estimate is used

to valuate the scrap variance:

Planned costs/preliminary cost estimate (preliminary cost estimate for manufacturing order or

product cost collector)

An alternative material cost estimate (such as a modified standard cost estimate for

calculation of the planned price of the period)

A current

standard cost estimate:

In make-to-stock production, this is the standard cost estimate for the material.

In sales-order-related production with a valuated sales order stock, this is the cost estimate

used to calculate the standard price.

If you haven’t defined a valuation variant for the valuation of scrap variances, the system valuates the

scrap variances automatically using the cost estimate that was used to calculate the standard price. In

make-to-stock production, this is the standard cost estimate for the material. If you are using a

valuated sales order stock, the standard price is determined using a predefined strategy (see also:

Standard Price with Valuated Sales Order Stock). The system valuates the scrap variance with the target cost

calculated on the basis of the standard cost of the operation and from which the cost of planned scrap was deducted.

The cost estimate used as a basis for the valuation of the scrap variance may contain costs such as

sales and administration costs that are not relevant for inventory valuation. In cost estimates with

quantity structure, these costs are shown in a separate

cost component view. Costs that are not relevant for inventory valuation are not included in the valuation of the

scrap variance.

If you are using production orders, you can:

Confirm scrap when you confirm the production order (that is, the order header)

When scrap is confirmed for the production order, the scrap quantity for each order is valuated

with the net target cost per unit of measure.

Confirm scrap when you confirm the operations of the production order

In repetitive manufacturing environments, you can confirm scrap quantities with reporting point

backflushes.

When you confirm scrap for operations, the scrap variance quantity for each operation is valuated with

the target cost of the operation from which the planned scrap was deducted.

When you confirm scrap for reporting points, the scrap variance quantity for each reporting point is

valuated with the target cost of the operation from which the planned scrap was deducted.

Calculation of Target Costs on Basis of Standard Cost Estimate for MaterialIf you confirm on the basis of a standard cost estimate for the material and valuate work in process

and scrap correspondingly, there are a number of different cases:

Case 1:

The current routing for the production version and the standard cost estimate for the material:

Access the same BOM

Have the same task list type

Have the same routing group

Have the same group counter

The work in process and scrap can be correctly valuated.

Case 2:

The current routing for the production version and the standard cost estimate for the material:

Access the same BOM

Have the same task list type

Have the same routing group

Have different group counters, but the reporting point structure is similar

You can use

user-defined error management to ensure that work in process and scrap variances are calculated. The valuation

of work in process and scrap is basically correct.

Case 3:

The current routing for the production version and the standard cost estimate for the material:

Access the same BOM

Have the same task list type

Have the same routing group

Have different group counters, and the reporting point structure is completely different

You can use user-defined error management to ensure that work in process and scrap variances are

calculated. You can valuate the work in process and scrap, but the result will not be correct.

Case 4:

The current routing for the production version and the standard cost estimate for the material:

Access the same BOM

Have different task list types, or

Have different routing groups

In this case it is not possible to calculate work in process or scrap at all.

To avoid the problems of cases 3 and 4, SAP recommends confirming and valuating

work in process and scrap on the basis of the preliminary cost estimate.

Constraints

You can specify a scrap quantity when you enter the final backflush. This quantity is currently not included when

the scrap variance is calculated.

You cannot calculate scrap variances forproduct cost collectors in sales-order-related production.

You cannot calculate scrap variances for production orders created in CO (production orders without quantity structure).

If a routing of a manufacturing order specifies a sequence of operations defined as a parallel sequence, the

system cannot valuate the scrap variance. In this case no scrap variance will be reported when the variances are

calculated. Instead, the costs for scrap variances are classified as remaining variances. If you are using reporting

points in repetitive manufacturing, parallel sequences are not possible. This constraint is therefore irrelevant in

repetitive manufacturing.

If the Origin indicator in the material master record is selected, all material components must have homogeneous

units of measure. For example, if you assign two raw materials with different units of measure (such as liters and

pieces) to a cost element, meaningful summarization is not possible.

If you have manually maintained

assembly scrap but have not planned any  operation scrap, the last operation of the routing is processed

inProduction Planning (PP) as if operation scrap had been maintained that caused the assembly scrap.

If a cost estimate is created on the basis of the routing, the quantities are increased in the cost

estimate in accordance with this "simulated" operation scrap. The quantities of the planned

(simulated) operation scrap are updated in the itemization.

These quantities also are included when the scrap variance is calculated. This means that the

unplanned scrap quantity in such a case is the difference between the actual scrap quantity

and the simulated planned operation scrap. The scrap variance quantity is valuated with the

target costs less the simulated planned scrap quantities.

Example 1

Example for Scrap Variance When No Operation Scrap Was Planned

The following example valuates the scrap variance using the standard cost estimate for the material.

The standard cost estimate calculates the standard cost of the material being manufactured for each

operation. The routing determines which operation the material components in the BOM are staged at

(that is, which operation the goods issues and therefore the costs for the material components are

assigned to).Operations 0010 and 0030 of a production order are defined as milestones. No operation scrap was planned.Oper.

Input qty / tons

Target cost of operation

Confirmed yield in tons

Confirmed actual scrap qty in tons

Scrap variance qty in tons

Value of scrap variance in EUR

10* 2 l15 min

EUR 150 9 1 1 1 * 150 = 1500.25 * 150 = 37.5

20 5 l10 min

EUR 100       0.25 * 100 = 25

30* 15 min EUR 50 3 0.25 0.25 0.25 * 50 = 12.50

            Total 225

*MilestonesIn operation 0010, 2 liters of raw materials and 15 minutes of internal activities are used for each finished ton

according to the preliminary cost estimate for the product cost collector. The cost of goods manufactured per ton for

this operation is EUR 150.

In operation 0020, 5 liters of raw materials and 10 minutes of internal activities are used for each finished ton

according to the preliminary cost estimate for the product cost collector. The cost of goods manufactured per ton for

this operation is EUR 100.

In operation 0030, 15 minutes of internal activities are used for each finished ton according to the preliminary cost

estimate for the product cost collector. The cost of goods manufactured per ton for this operation is EUR 50.

At the first milestone (operation 0010), 9 tons yield and 1 ton scrap are confirmed. At the second milestone (after

operation 0030), 3 tons yield and 0.25 ton scrap are confirmed.

When the system calculates the variances, it valuates the unplanned scrap quantity with the target cost calculated on

the basis of the standard cost in the standard cost estimate. The target costs are calculated for all executed

operations and reduced by the value of the planned scrap (in our example, this value is zero). When it calculates the

variances, the system updates this information to the production order for each cost element or for each cost element

and origin group. Because no operation scrap was planned, the confirmed scrap quantity is the same as the

unplanned scrap quantity.

The target cost for the unplanned scrap in operation 0010 is EUR 150 (1 ton x EUR 150). The target cost for the

unplanned scrap in operation 0030 is EUR 37.50 (0.25 ton x EUR 150) + EUR 25 (0.25 ton x EUR 100) + EUR 12.5

(0.25 ton x EUR 50).

The value of the scrap variance is EUR 225 (150 + 75).

Example 2

Example for Scrap Variance When Operation Scrap Was Planned

Planned Scrap

As in example 1, this example valuates the scrap variance using the standard cost estimate for the

material.

In the routing, 20% operation scrap was planned for each of the two operations 10 and 20. This means

that:

It is anticipated that 20% of the units produced at operation 10 will be scrap.

It is anticipated that 20% of the units produced at operation 20 will be scrap.

The planned operation scrap is reported in the itemization of the product cost estimate. This scrap is

included in the determination of scrap variances.

Assembly scrap determined on the basis of the operation scrap increases the lot size of the material

being produced. In this example, the assembly scrap is 56.25%.

Suppose that 100 kilograms of finished product are to be produced. To ensure that the final output is

100 kilograms, the system increases the lot size to 156.25 to account for the assembly scrap.

Assuming that the ratio of raw material used at operation 10 to finished product is 1:1, 156.25

kilograms of raw material enter the production process at operation 10. The output of operation 10 is

156.25 less 20% for the operation scrap or 31.25 kilograms, leaving 125 kilograms. Operation 20

incurs 20% scrap, or 25 kilograms. 100 kilograms enter the final operation (operation 30). Because no

scrap was planned at operation 30, the output quantity also is 100 kilograms.

For detailed information on operation scrap in the routing, assembly scrap, component scrap,

the net indicator, and on operation scrap in the BOM, as well as on the interactions between these

factors, refer to the following section:

Addendum: Scrap in Product Cost ControllingActualDuring production, 312 kilograms of scrap are confirmed at operation 10 (as planned) and 300

kilograms of scrap are confirmed at operation 20.

Calculation of the Scrap Variance Quantity

To determine the scrap variance, the system must first determine the scrap variance quantity (the

quantity of unplanned scrap). The scrap variance quantity is determined by subtracting the actual

scrap quantity from the target scrap quantity. The actual scrap quantity is the scrap quantity actually

confirmed at an operation. The target scrap quantity is the planned scrap quantity that has been

converted to the confirmed yield.

This example will examine operation 20 more closely.

The target scrap quantity is 212.5 kilograms. This amount is calculated as follows:

850 (confirmed yield) x 0.2 / (1 - 0.2) = 212.5 kilograms.

Result:

Actual scrap quantity

300 kilograms

- Target scrap quantity 212.50 kilograms

= Scrap variance quantity

87.50 kilograms (= quantity of unplanned scrap)

Calculation of the Scrap Variance (Costs)The system determines the scrap variance by valuating the scrap variance quantity with the target

cost less the planned operation scrap.

The cost of the planned scrap is deducted from the target cost with the following formula:

Net target cost = Total cost - Cost of planned scrap  

Lot size

The net target costs are calculated for each costing item.

Explanation Facility for Scrap VarianceThe explanation facility shows the reference quantity used to calculate the work in process (only with

the calculation of work in process at target costs in the Product Cost by Period component) (see also

the figureCalculation of Scrap Variance Quantity). In the explanation facility, you can use the F1 help to

assist you in interpreting the key figures.

For information on the WIP quantity and the reference quantity, refer to following section:

Work in Process in Product Cost by PeriodFor information on how to access the explanation facility for scrap variances, refer to the following

section:

Calculating VariancesSee also:For detailed information on variance calculation, refer to the following sections:

Variance CalculationTarget Cost Versions in Variance CalculationFor information on including planned scrap in cost estimates, refer to the following section:

Costing Scrap

Prerequisites: Printing Shop PapersCustomizingYou make the necessary settings in Customizing for Shop Floor Control under Operations → Define Print Control . There, you can define the following:Names of the listsYou can define list ID and list name.Spool parameter for usersYou can define, for example, which lists a user can print, in which plant and to which printer.

For example, you can define that user "A" may only print out pull lists and material withdrawal certificates, while user "B" may only print out time tickets and confirmation slips.You can also define spool parameters here. You define the following:Which printer the list is printed onWhether it is printed immediately or notHow may days the list should be retained in the spool file, before it is deleted

For collective lists, the immediate printing of shop floor papers is subject to certain restrictions. See the SAP Note 199151.Reference Order TypesFormsYou can define, for example, which form (SAPscript form of PDF-based form) is used per plant, reference order type, and printer.By doing so, you can define the layout of the list by defining a SAPscript form for a certain order type, for example, that prints a barcode on the confirmation slip.

By double-clicking on the SAPscript form, you can access the Form Painter. (See Form Painter )By double-clicking on the PDF-based form, you can access the SAP Form Builder. (See Maintaining Forms with the Form Builder and PDF-Based Print Forms )Print programYou can define, per reference order type, list, and print variant, which print program/print report the system should use and which data should be contained in a list.You can use the print variant to control which print program is used for which list. A print variant at form level does not exist.The print report processes the data and issues it using a SAPscript form or a PDF-based form.The form and the print program must be suited, in other words, if you are using a PDF-based form, you must also use a print program that support PDF output.

The following PDF-forms and production order lists exist:List PDF Form Print Program with PDF Output

LG01 Object List PSFC_PRINT_LAY PSFC_OBJECT_LIST_PDF

LV02 Document References PSFC_DOC_LINKS PSFC_DOCLINK_LIST_PDF

LG04 Kanban Card PSFC_KANBAN PRKANB_PDF

You should note that the technical names of the PDF-based forms are identical to those of the SAPscript forms. The corresponding PDF print programs end with *PDF.List control for TransactionsYou can define which lists can be printed, in other words, which lists, which MRP controller can print in which plant, and in which transaction.The lists that can be printed can be limited using spool parameters on a user-dependent basis. In other words, you can define that a user can only print certain lists.The actual number of lists that can be printed is determined by taking both these settings into account. In other words, a list can only be printed if conditions from both settings are met. These two settings clearly define which lists may be printed by which user in which transaction.

In the application, the user can further limit the lists that he or she is allowed to print, or adjust them to suit his or her needs. For example, the user can change the printer or the spool retention period. The user can see an overview of the lists that can be printed in the production order by choosing Order → Settings → List ControlDefining the printer

You can define the printer per work, reference order type, and MRP controller.Process Control for TransactionsYou can define, per plant and transaction, whether printing should take place online or in the background.Table accessesUsing these settings, table entries can be automatically read from tables that are not directly assigned to the order environment. When you maintain entries you should note that the table you have specified has also been set to active. Otherwise, runtime errors will occur during printing because the table either does not exist, or is not active.For more information about printing production orders, see SAP Note 11104.

General PrerequisitesIf you want to print lists for a production order in the standard setting for the SAP system, you should note the following:

Lists of Operations

Note the following when you print lists of operations:Is Customizing set up in such a way that the control key for the operations is checked when printing lists?If this is the case, you must check whether the control key:Permits the printing of operationsPermits the printing of time ticketsPermits the printing of confirmation slips

If the control key check is not activated in Customizing, the system does not check the control key or the status. In this case, the system also does not set a print status.Does the status of the order and the status of the operation permit the list to be printed?If the order status does not permit printing, the system does not print a list.If the order status permits printing, the system prints a list. Operations whose status does not permit printing are not included in this list.The printing of lists is permitted ifThe order is either released or partially releasedThe order is neither technically complete nor deletedThe user status does not forbid printing (see System/User Status )The printing of individual operations in an order is permitted ifThe order is partially released or releasedThe operation is released and not deletedDo you want to print time tickets or confirmation slips?Make sure that the number of time tickets or confirmation slips specified for the operation is greater than zero.

The number of time tickets or confirmation slips is proposed from the work center. However, you can change this on the General operation detail screen. To reach this screen choose   Operation Overview in the production order Select the relevant operation and choose   Operation Detail

Lists for Components

Whether or not you can print a list of components depends on the status of the operation to which they are assigned. If you can print the operation, you can also print the relevant components.

Phantom components cannot be printed.

Lists for Production Resources and Tools

Whether or not you can print a list of production resources and tools depends on the status of the operation to which

they are assigned. If you can print the operation, you can also print the relevant production resources and tools.