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Magal and Word | Integrated Business Processes with ERP Systems | 2011
Learning Objectives
Describe the master data associated with the production
process.
2. Identify the key steps in the production process and the
data, documents, and information associated with each
step.
3. Effectively use SAP ERP to execute the key steps in the
production process.
4. Effectively use SAP ERP to extract meaningful information
about the production process.
1.
Magal and Word | Integrated Business Processes with ERP Systems | 2011
Types of Manufacturing
Discrete vs. repetitive vs. process
Discrete and repetitive
Tangible products
Manufactured in individual units
Skateboards, bicycles
Repetitive manufacturing
Same or similar products are produced over a period of time
A specified quantity is produced over a period of time
Discrete
Batches of different materials over time
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Types of manufacturing
Process manufacturing
Not manufactured in individual units
Gallons, pints, liters
Paint, soft drinks
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Magal and Word | Integrated Business Processes with ERP Systems | 2011
Organizational Data
Client
Company code
Plant
Storage location
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Master Data
Bill of materials (BOM)
Work center
Product routing
Material master
Production resource tools (PRT)
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Bill of Materials
Identifies the components needed to make the material
A component can have its own BOM to creates a multi-level
BOM
BOMs are used in
Material planning
Production
Procurement
Product costing
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Material number
Quantity
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BOM Structure
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Work Center
Basic data
Name, description
Person responsible for maintaining master data
Task list usage (which routings can use this work center)
Capacities
Scheduling
Cost center
HR assignment
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Product Routing
Steps necessary to produce a material
Operations
Sequence
Standard
Alternate
Parallel
Work center
Times
Setup, machine, labor
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Structure of a Routing
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Component Assignment
Specifies the relationship between a BOM and a routing
Assigns components (materials) in a BOM either to a routing
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Component Assignment
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Production Capability
A measure of how many units of a material a plant can
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Material Master
Previously discussed views
Basic data
Purchasing related
Sales related
Accounting related
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Documents (instructions)
Materials (calibration tool)
Equipment (machine that is not in a fixed location)
Miscellaneous
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Request Production
Planned order
What material
How many
When
Project management
Material planning
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Authorize Production
With planned order: convert
Convert to production order
When?
Where will they be produced?
What resources are to be used?
How much is it expected to cost?
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Order Release
On creation order status is created (CRTD)
Order must be released (REL) to permit subsequent steps
such as
Goods movement not possible
Confirmations not possible
Documents cannot be printed
Settlement
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Order Release
Automatic or manual
If no time is needed between creation and release for
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Goods Issue
Movement type 261
Impact
Material, FI, CO documents
G/L accounts updated
Inventory updated
Reservations updated (reduced)
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Confirmations
Order level confirmation
Operations level confirmation
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Data in a Confirmation
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Goods Receipt
Goods receipt into storage
Movement type 101
Impact
Material, FI, CO documents
Material master update (quantity and value)
Production order update (quantity, date, costing)
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Periodic Processing
Overhead calculation
Work in progress determination
Settlement
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Overhead Calculation
Indirect costs
Supervisor, manager, other salaries
Utilities
predetermined rules
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Work-in-Progress Determination
Work-in-progress (WIP) inventory
Inventory between GI and GR inventory
GBI
Essential
When value of materials is high
Production takes weeks, months, or years
Aircraft production, construction.
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Settlement
Settle the difference between planned and actual costs
(variance)
Only panned costs are posted in the GR step
Variance is settled in this step
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Reporting
General SAP reporting options
Online lists
Work lists
Analytics
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Stock/Requirements List
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