PP PI Material

SAP
Production Planning
Process Industries
(Training Manual)
Date: 26th Oct 2005
The contents of this document are the sole and

exclusive property of Larsen & Turbo Infotech
Limited. They may not be disclosed to any third
party, copied or reproduced in any form or used for
any purpose, other than that for which they were
provided, without the express permission of Larsen
& Toubro Infotech Limited. All other company,
product names, logos and brands are trademarks of
their respective owners.
Copyright 2005
SAP PP-PI Training Manual
PRODUCTION PLANNING CONTROL PROCESS INDUSTRIES
CONTENTS:
PRODUCTION PLANNING CONTROL PROCESS INDUSTRIES ............................... 2
PRODUCTION PLANNING CONTROL PROCESS INDUSTRIES-INDRODUCTION .. 3
PRODUCTION PLANNING AND CONTROL PROCESS INDUSTRIES- SYLLABUS. 4
RECOMMENDED TIME SCHEDULE............................................................................... 7
PROCESS MANUFACTURING........................................................................................ 9
BASIC DATA FOR PROCESS MANUFACTURING:..................................................... 17
EXERCISES.................................................................................................................... 61
PLANNING PROCESS PROCESS INDUSTRY........................................................... 71
EXERCISES.................................................................................................................... 81
DETAIL FUNCTIONS OF PROCESS MANUFACTURING: .......................................... 86
EXERCISES.................................................................................................................... 95
CONCEPTS OF PROCESS MANAGEMENT .............................................................. 100
EXERCISES.................................................................................................................. 137
L & T Infotech Production Planning for Process Industries Page 1 of 141

PRODUCTION PLANNING CONTROL PROCESS INDUSTRIES
PREFACE
Production Planning in Process Industry is gaining lot of importance in light of its

peculiarity in business processes. Any process industry including Chemicals,
Pharmaceuticals, Oil and Gas, Cement, Steel, Paper etc. has its own specific business
process covering Recipes, Batch Management, PI Sheets, Process Order Management,
Control Recipes, Analytics etc. This is different from the generic PP scenarios observed
in Discrete or repetitive Manufacturing Industries.
This training material is prepared to provide education to SAP PP consultants on
Process Industries scenarios. Following is the coverage
An Overview of Process Manufacturing

Master Data in Process Manufacturing
Process Industries Planning Process
Process Order Execution System
Process Management
Analytics
With this material and some of the other suggested reference documents; you should be
able to create Material Master, Resources, Master Recipes with Material List, Carry out
functions of Sales and Operation Planning, Demand Management, Material Requirement
Planning, Process Order Execution System and Process Management.
At the end of each topic, we have provided an exercise session; we would like you to go
through the same to understand the given area.
At the end of the education material, we provided two case studies. You are requested
to study them carefully and develop your own solution/case study. The detailed solution
is provided in separate Document and you can check your solution with the same for
ensuring your complete understanding of PP-PI
Wishing you all the very best.

PRODUCTION PLANNING CONTROL PROCESS INDUSTRIES-INDRODUCTION
With the component PP-PI (Production Planning for Process Industries), SAP provides
an integrated planning tool for batch-oriented process manufacturing.
It is primarily designed for the chemical, pharmaceutical, food and beverage industries
as well as the batch-oriented electronics industry. PP-PI supports:
The integrated planning of production, waste disposal, and transport activities

within a plant
The integration of plants within the company
Vertically by means of an information flow, ranging from central business
applications down to process control
Horizontally by the coordination of planning between production plants, recycling
and waste disposal facilities, and production laboratories.

Production Planning and Control Process Industries- Syllabus
Unit 1:
Overview Process Manufacturing
PP-PI Overview , PP PI Integration with R/3 System, Applications of PP-PI , Functions

of PP- PI, Data Flow in PP-PI, Make To Stock in Process Industries, Make To Order in
Process Industries, Concepts of Process Management.
Unit 2:
Basic Data for Process Management
Materials Material Master Record, Material Types, Field Selection, User-Defined
Material Master Record, Creating Material Master Records,
Exercises
Resource General Data for Resources, Planning Data, Data for Capacity Requirement
Planning, Costing Data, Default Capacity
Resources Functions Resource management, Cost center Assignment, Available

Capacity, Resource Network, Classification, Evaluation Options
Resource Category, Resource Maintenance, Resource Hierarchy, Capacities,
Capacities Maintenance Replacement Resources in Recipes, Resource Configuration.
Production Versions Editing Production Version, Engineering Change Management

Production Version Approval, and Consistency Check for Production Version.
Master Recipe Master Recipe Operation and Phases- Elements and Structure of a
Master Recipe, Functions of a master Recipe, Recipe Plant Management, Recipe
Header Data, Operations and phases, Resource Assignment, Relationships, Scheduling,
Classification of Operations and Resources
Master Recipe Materials-Recipe Assignment, Material List, Classification of Bill of

Material items, Material Quantity Calculation
Master Recipe Control View Process Management, Process Instructions and

Control recipe Destinations, Control Recipe Creations, PI Sheet Simulation, Aspects of
quality Inspections during Production Process Inspection Lot, Specification Batches
Produced, Material Specification.
Master Recipe - Engineering Change Management-Change Master Record,

Engineering Change Request, Changing master Recipes, Recipe Approval and Digital
Signature
Unit 3:
Production Planning
Demand Management- Creating planned independent Requirements, Planning
strategies, customizing settings.
Categories of Planning Strategies - Make-to-stock production, Order production

(Make-to-order production), Order-specific final assembly (Assemblies to stock using

make-to-stock, finished products to individual customer stock using make-to-order

production)
MRP Run - Scope of planning, Low-level coding, Net change planning in the long-term
and short-term planning horizon, regenerative planning, Planning file, Customizing
structure for MRP, MRP in simulation mode, planning table.
Processing MRP Results - MRP list, Stock/requirements list, Collective evaluations,

Days supply and receipt days supply, Exception messages, Rescheduling, Order
report, Pegged requirements
Technical Information on How the Planning Run Works - Steps in the MRP run,
Control parameters in the material master, in the BOM and in Customizing for MRP, Net
requirements calculation, Lot-size calculation, Scheduling, BOM explosion and routing
selection
Unit 4:
Details Functions of Process Orders
Overview of Process Orders Process Order Definition, Functions, Application,
Process Order Management - Alternative ways of creating a process order, Activities
involved in process order creation, Order type, Master recipe selection, Customizing for
recipe selection, Scheduling, Customizing for scheduling, Reservations, Planned cost
Order release - Process order release, Customizing: production scheduling profile,

System status and user status
Confirmations and Material Movements - Back flushing, automatic good receipt,

Flexible Definition of Order Processing in the PI sheet
Process Data Evaluation - Order Information System, Process Message Evaluation.
Digital Signature - Digital Signature Definition, Linking to External Security Products,

Processing Digital Signatures, Applying Digital Signatures, Activating the Digital
Signature Function, Displaying and Finding Digital Signatures, Signature Strategies.
Unit 5:
Process Management
Process Messages Structure and Settings - Process message structure, Message
categories and message characteristics, Structure and types of message destinations,
Assigning message destinations to process messages
Process Messages Creating process messages, Sending process messages,

Monitoring process messages, Deleting process messages.
Process Message in the Standard System - Updating control recipe status,

Confirming time events and activities for phases, Confirming time events and activities
for secondary resources, Updating user statuses of operations and phases, Posting
goods issues, Posting goods receipts, Reporting inspection results, Visually reproducing
material flows between process orders

Process Instructions Structure and Setting - Process instruction types, Structure of

process instructions, Process instruction categories and characteristics
Control Recipes Settings and Processing - Creating control recipes, Control recipe
destinations, Sending control recipes, Monitoring control recipes
R/3 PI Sheet Processing - Displaying control information and notes, Recording and
calculating actual values, Saving and reporting data, Record inspection results, Calling
functions, Entering and reporting comments, Setting PI sheets to complete
R/3 PI Sheet Process Instruction - Process parameter, Process data request,

Process data calculation formula, Dynamic function call, Inspection results request,
Sequence definition, Automatic generation of process instructions for control recipe
destinations, Automatic value assignment to process instruction characteristics, Text
symbols.

RECOMMENDED TIME SCHEDULE
Module Module Description Training Reference Material

code Duration-
Days
PP-PI Overview
PP-PI Integration with R/3 System
LO060 Application Areas of PP-PI 1.0
Functions of PP-PI
Data Flow in PP-PI
Master Data for Process Industry
Material Master
Batch Management
Resource
Master Recipe
LO305
Process Instruction Types 7.0
Process Instruction Category
Process Instruction Characteristics
PI Assistant
Production Version Training Material
Exercises- Creating Material Master,Batch,Resource,Master Recipe and Production (Current),
Version Knowledge
PP-PI Planning Process warehouse (IP
Planning Overview 172.25.8.119),
LO210 Sales and Operation Planning SAP Library
2.0 (http://help.sap.com)
Demand Management
Material Requirement Planning/Master Production Schdule
Exercises-SOP, Demand Management, and MRP Run
Process order Management
Process order Creation
LO310 Process Order Scheduling
5.0
Capacity Requirement Planning
Process Order Releasing
Exercises-Process Order Creation,Schduling,CRP and Releasing
Process Management
Control Recipe
LO315 PI Sheet
7.0
Digital Signature
Production Campaign
Exercises-Control Recipe Creation,PI Sheet Maintenance, Process Message Creation
Develop your own scenario on PP-PI , Specific to any Process Industry

UNIT I
PROCESS MANUFACTURING OVERVIEW

PROCESS MANUFACTURING
Unit Goals:
This course will provide you with:
An overview of the R/3 component Production Planning for Process Industries
PP-PI Integration wit R/3 System
Application Areas of PP-PI
Fuctions of PP-PI
Data Flow in PP-PI
Unit Objective:
At the conclusion of this course
You will have overview knowledge of the process and functions of the R/3
Component production Planning for Process Industries
You will have the knowledge about various application areas of PP-PI
You will have the knowledge about the Data flow through various integrated
components of PP-PI

The R/3 System contains integrated application software that is based on open
three-level client/server architecture. It covers the entire range of business
functionality a company requires. The systems efficiency is achieved through an
integration of different application components that represent a network of business
functions. This guarantees a consistent execution of all business processes in every
area of a company. All components work on the basis of real-time processing.
With its PP-PI component, SAP offers a set of functions that meet the requirements
of production planning and control in process industries.
The PP-PI component is a fully integrated production planning and control
system designed for process industries. Since it is an integral part of the R/3
production-planning component PP, it is linked to other PP subcomponents such as
Sales & Operations Planning (PP-SOP), Material Requirements Planning (PP-MRP),
Capacity Requirements Planning (PP-CRP), and Shop Floor Control (PP-SFC).
In addition, PP and PP-PI are fully embedded in the logistics chain, consisting of the
R/3 components Sales and Distribution (SD), Materials Management (MM),
Production Planning (PP), and Quality Management (QM).
Furthermore, PP-PI is linked to applications of other business areas such as the
Human Resources System (HR) and Controlling (CO).

PP-PI is designed for the batch-oriented process manufacturing company that

uses integrated planning for its production processes. Ideally, PP-PI is used in
companies of the chemical and pharmaceutical industry, the food, beverages, and
tobacco industry as well as the process-oriented electronics industry.
PP-PI meets the following typical requirements of such companies:
- The production process is carried out in batches, that is, non-reproducible units
that are characterized by certain specifications. In addition, many materials
entering the manufacturing process are managed in batches with varying
specifications.
- During the different manufacturing steps, products, co-products, by-products, and
remaining materials are produced. If several planned materials are manufactured
during one production run, they are called co-products.
- Information is exchanged between the process planning and the process control
levels. Production is carried out in automated or partially automated lines. Part of
the manufacturing instructions must therefore be displayed in natural language to
be read by a process operator, whereas part of them must be prepared for an
automatic process control system.
- The usage of the production lines is variable and process control is carried out
using variable parameters that differ from batch to batch.
- To ensure the quality of the product, a constant coordination with quality
assurance is indispensable.
- It must be possible to archive and evaluate the planning data and actual data of
the manufacturing process for each batch.

The graphic shows the hierarchical structuring of information of an individual

company. The following levels exist:
- Company management level
- Production management level
- Process management level
PP-PI is situated at the production management level between the upper-level
business applications and the lower-level process control systems.
PP-PI is designed to close the information gap between business applications
and process control.

PP-PI comprises the following functional areas:

- Resource management: The PI-specific master data of resources describes all
means of production and persons involved in the production process.
- Master recipe management: The PI-specific master data of master recipes
describes the manufacture of one or more materials in one production run without
relating to a particular order. Master recipes are the basis for process orders.
- Process planning comprises the planning of process orders. Process orders are
created on the basis of master recipes. They describe and monitor the actual
production process.
- Process management coordinates the transfer of data between PP-PI and the
process control level. It can be used in fully automated, partially automated,
and manually operated plants.
- Process data documentation and evaluation enables a detailed
documentation and evaluation of all planned and actual values of a process.
PP-PI is integrated with, for example:
- R/3 Quality Management. Via a special interface, external laboratory
information systems (LIMS) can be linked to R/3 QM.
- The higher-level planning components of R/3. Production requirements for PP-PI
are created in R/3 Material Requirements Planning. Via a special interface, you
can also transfer requirements from an R/2 System or an external planning
system to PP-PI.
The master data and functions of R/3 Materials Management (such as material,
inventory management).

A production process is triggered by production requirements. Production

requirements are created in material requirements planning in the form of planned
orders. Planned orders define the basic dates and planned production quantities.
During process planning, planned orders are converted into process orders. The
basic dates and production quantities are copied from the planned order. The actual
production dates are calculated using the basic dates. You can also create a process
order manually.
A process order provides a detailed description of the actual production of one or
more materials in one production run. It is the main control instrument in production,
describing and monitoring all planned and actual data relating to production.
A master recipe is used as the basis for a process order. It defines, for example, the
planned resources and material components.
After a process order has been released for production, the process instructions
maintained in the order are bundled into control recipes by process management.
The control recipes are either transferred to a process control system via a specific
interface or are displayed online in the form of a process instruction sheet (PI
sheet) that can be read and maintained by process operators.
Process management in turn receives process messages from the process control
level and transfers them to various destinations. For instance, it is possible to record
confirmations for the process order, transfer actual values of the process to functions
for process data documentation and evaluation, post material consumptions or
production yields as goods movements and transfer quality data to Quality
Management results recording.

UNIT SUMMARY:
You are now able to

Use the Different PP-PI components integrated with R/3 system
Analyze the different functionalities of PP-PI
Identify the Data flow through different components of PP-PI

UNIT II
BASIC DATA FOR PROCESS MANAGEMENT

Basic Data for Process Manufacturing:
Unit Goals:
This course will provide you with,
An overview of Master Data

Details about Material Master and Material types
Batch
Batch Management in logistics Process
Resources
Resource Networking
Master recipe
Master recipe Oprations/phases
Relationships
Process Instruction Types
Process Instruction Characteristics
Characteristic values
Editing Production Versions
Unit Objective:
At the conclusion of this unit
You will be able to create material master for Required material types of Process
Industries
You will be able to Batch for the material which will be managed as batch
management
Specification for batch materials using characteristics and classes
You will be able to create Resources and Resource Networks
You will be able to Master recipe with components list, Process instruction category
with assigned characteristics
You will be able edit Production version and assigning the appropriate Recipes with
material list


The material master record is the central master record in logistics.

A batch is a subset of a material. The batches of one material are managed
separately in stock. With regard to the production process, a batch is a quantity of a
material produced during a given production run. This quantity, therefore, represents
a unit with unique specifications.
Resources are PI-specific master data. They refer to a means of production and
persons involved in the production process.
A master recipe is also a PI specific master data item. It describes the plant specific
application of a manufacturing procedure without reference to a specific order. They
are mainly used for the manufacture of products. However, they can also describe
the clean-out or changeover of a processing unit.

All materials are defined in a material master record and identified by a material
number
A material master record contains data of a descriptive nature (such as size,
dimension, weight) and data with a control function (such as the material type).
In addition to this data, which can be maintained by the user, the material master
record also contains data, which is automatically updated by the system (such as
stock levels).
An alphanumeric material number identifies a material master record in the system.
The material number is unique at the client level.
Depending on the function or usage, material master record data is assigned to
different organizational levels (such as plant, storage location, sales organization).

In a process-manufacturing environment, production is usually executed in batches.

In addition, many materials entering the process are managed separately in batch
stocks with different specifications.
An alphanumeric batch number identifies a batch master record. You can choose the
level at which you want the batch number to be unique in accordance with the
structure of your plant and company and your operational requirements.
The material number is unique at the client level. However, the uniqueness of the
batch number can be defined at the following levels.
- In combination with the material and plant
- In combination with a material number
- At the client level

In the R/3 System, batch master records always depend on their corresponding
material master records. Batches are created for a material.
In general, the data of a material master record is valid for all batches assigned to it.
In contrast, a batch master record contains data that uniquely identifies a batch and
characterizes it as a non-reproducible unit.
If a material is to be produced in batches and is subject to inventory management,
you must set the Batch management indicator in either the material master view
Work Scheduling or Storage 1.
You either create a batch master record directly during master data maintenance or
the system creates it in the background under certain conditions.

R/3 batch management is used in all areas of logistics. A batch can be followed
through the whole logistics chain, from the entry of the raw materials to the
production of the finished product, and all the way to sales and delivery to the
customer.
You can assign a batch to a material at various points in the logistics process by
creating a batch master record. For example, if the subset of a material that is
subject to being handled in batches leaves a production process with certain
specifications, it is posted to stock with a batch number and can then be clearly
identified.
If you need a batch with certain specifications in the logistics process, you can find
suitable batches from the system in the stock using the batch determination function.
In the production area, batch determination is carried out in a process order to find
and withdraw suitable material components for the product to be produced.

An alphanumeric material number identifies a material master record. This material

number is unique at the client level.
An alphanumeric batch number identifies a batch master record. You can choose the
level at which you want the batch number to be unique in accordance with the
structure of your plant and company and your operational requirements.

When defining the specifications for batch master records, the higher-level material
master records are assigned to classes belonging to class type batch. In these
classes, all material and batch attributes are stored as characteristics.
When you create a batch for a material, the batch is automatically assigned to the
same class of class type batch used to classify the material. This ensures that the
same characteristics are used for the material and the batch. In the R/3 System, this
is called characteristic inheritance.
Class type batch specifies a hierarchical relationship between the object types
"material" and "batch". The batch inherits the material's characteristics. The
specifications for the individual batches are stored as characteristic values.
You can define value ranges or fixed values for a characteristic of a class. These
specify a maximum value range that applies to all objects assigned to this class, in
this case materials and batches.
In the material master record, you can further restrict the values preset by the
characteristics. These restrictions are inherited by the batch of the material. You can
then only assign values to the characteristics of the batch that lie within the range
specified for the material.

The classification system must be set up such that the specifications of a material
and its batches can be stored as classification data.
First, you define the properties that you want to specify the material and the batches.
These properties are stored in the classification system as characteristics.
You now create the classes that you want to use for the material and the batches.
You can create a selection of various classes for this purpose. Later, you can only
assign one class to the material and the batch. You thus do not set up multiple
classifications.
- You have to assign class type 022 or 023, as these have been set up in the
standard system specifically for batches. The applicable class type depends on
the batch level you have selected.
If you have specified plant level as the validity range of the batch in Customizing,
you must select class type 022 in the standard system. Otherwise, class type 023
is valid. The system automatically suggests the correct class type.
In the last step, you assign the characteristics to the class. When doing so, you can
restrict the value ranges even further.


The batch where-used list follows the path of a batch using inventory management.
Each batch receives its document journal from the first posting to stock to the
withdrawal from stock. Additionally, each link between batches is documented at
every production level all the way to the customer order and the batch split.
The path of a batch is only registered when an inventory posting has taken place.
The numbers of the reference documents, such as the production order and the
customer order, are recorded along with the material document.
The display variations "top down" and "bottom up" describe the view direction using
the "family tree" of the batch.
The batch where-used list can also be processed graphically.

Proportion unit
Unit of measure in which you can enter proportions of the base unit of a material.
The total or physical quantity can consist of several proportions.
Product unit
Unit of measure, which describes the total quantity of a material as an alternative to
the base unit of measure.
You use batch-specific units of measure when the ratio for conversion from the unit
of measure into the base unit of measure can differ from batch to batch.
While the conversion ratio for the alternative units of measure is fixed in the base unit
of measure in the material, for the proportion unit and the product unit you define the
following:
-The planned conversion ratio in the material
-The actual conversion ratio in the batch

Resources represent a means of production in the production process.

Resources are central planning instruments of production planning and control. For
example, the data you maintain for a resource are used for:
- Scheduling process orders
- Capacity requirements planning
- Product and order costing
Resources are grouped in resource categories on the basis of their usage and
function. You can define your own resource categories in Customizing.

You can often use processing units only in a specified sequence. To represent this
sequence in the system, you can create predecessor/successor relationships
between resources in the form of resource networks.
Resource networks used in conjunction with the classification of resources and the
resource selection conditions of the master recipe steps will ensure that the
sequence is followed and the proper resources are selected.



When creating a master recipe, you must enter a profile defined in Customizing. To
display or change the default values set in this profile, choose Extras in the master
recipe menu.
You can change the values in the profile dialog box. However, these changes are
only valid until you exit the recipe.
In the profile, you can enter default values for the operation, the relationship, the
increment of process instructions and process instruction characteristics as well as
for the relationship graphic and how it is displayed.
Moreover, you can branch to a dialog box displaying QM data and enter default
values for quality inspection.

A master recipe defines the following data required for the manufacturing of
materials without relating to a particular order: processing steps, resources, material
components, data for in-process quality inspection, control information for the
process control level.
Master recipes have a planning and a control view. The planning view comprises the
planning of operations, materials, resources, and inspection characteristics.
Therefore, links to the R/3 modules PP, MM, SD, WM, and QM have been realized.
The control view contains information required for communicating with the process
control level.
The master recipe is the basis for the creation of process orders. A process order
describes an actual production process. It contains all information specified during
process planning, such as production date and quantities to be produced.
A control recipe contains all the information necessary for the execution of a process
order by a certain process control system or a line operator. Control recipes are
generated from the process instructions in a process order and transferred to the
corresponding destination in process control. Process instructions are defined in the
master recipe on which the process order is based.

The recipe header contains data valid for the entire recipe. You can assign a
resource network and the material to be produced to the recipe header.
Operations describe the different steps required during the production process. For
a more detailed description of the steps in the production process, operations are
subdivided into phases.
The time-based sequence of phases is determined by relationships. Relationships
link the start and finish points of phases.
An operation has only one primary resource assigned to it. Normally, this is where
the operation is to be carried out. The assignment is valid for all phases subordinate
to the operation.
If required, you can assign additional secondary resources to operations and
phases.
If at certain points materials enter the production process, exist temporarily, or are
discharged, you assign these as material list components to the corresponding
operations and phases.
Process instructions are structures used to transfer data from R/3 process
planning to process control. Process instructions are assigned to the phases of the
master recipe. Process instruction characteristics are assigned to process
instructions. Together with the corresponding characteristic values, they define the
content of the process instructions.
Inspection characteristics specify the in-process quality inspections to be
performed. They can be assigned to operations and phases.

Data that is valid for the whole recipe is maintained on the recipe header level.
The recipe group and the recipe counter identify a recipe. Recipes are defined on the
plant level. They can be grouped into recipe groups based on criteria defined by the
user.
By assigning a resource network, the physical network of the resources is
described for the line at which the process is to take place.
The usage describes the purpose for which the recipe can be used (for example,
production, construction, plant maintenance). The planner group specifies a group
of people who are responsible for the maintenance of the recipe. The status gives
information about the processing status of a recipe (for example, creation phase,
released for order, released for costing) and controls which business operations are
allowed or not allowed.
With the charge quantity range, you specify a value range that is allowed for the
production quantity and for which the master recipe may be used as the reference for
a process order in production.
The material to be produced using the recipe is assigned to the recipe at the header
level.
To give more information, you can create a long text for the recipe header.
On the recipe header detail screen for QM data, you determine whether an in-
process inspection is to take place with or without inspection points.
Administrative data gives information about the validity dates of the recipe,
which has created or changed the recipe, and whether a change was made
using a change number.

Operations describe the different steps required during the production process. For
a more detailed description of these steps, operations are subdivided into phases.
One primary resource is assigned to an operation. The primary resource is that part
of a line or processing unit at which the operation is carried out. It is committed for
the entire duration of the operation.
The primary resource is also assigned to all phases subordinate to the operation in
the hierarchy.
Note: Scheduling, determination of capacity requirements, and costing take place at
phase level. The dates and capacity requirements for operations are derived from
the corresponding phases.

In the material list, the material components of the BOM are assigned to phases
and operations.
The material list is made up of components representing the materials entering and
leaving the production process as well as temporarily existing materials and their
planned quantities. It also defines the assignment of these material components to
operations or phases of the recipe according to their appearance in the process.
A specific material list component is assigned to exactly one operation or phase. You
can assign several different material components to an operation or phase

One primary resource is assigned to an operation. The primary resource is that part
of a line or processing unit at which the operation is carried out. It is committed for
the entire duration of the operation.
The primary resource is also assigned to all phases subordinate to the operation in
the hierarchy.
If required, you can assign additional secondary resources to operations and
phases. This assignment can be carried out with a flexible start and finish time,
relative to the start or finish of the operation or phase.
The same business transactions can be carried out for secondary resources as for
phases. Secondary resources can, for example, be included in scheduling, capacity
requirements planning, and costing.

The time-based sequence of phases is determined by relationships. Relationships

link the start and finish points of phases. This enables you, for instance, to
synchronize phases belonging to different operations.

Scheduling a master recipe enables a time-based simulation of the manufacturing

process in the planning phase. During scheduling, the start and finish times of
phases are determined. Scheduling takes place at phase level only. The operation
dates are derived from the phase dates.
Starting from the basic start or basic finish dates, scheduling is done either as
forward or backward scheduling. You can enter a planned lot size if the phase
duration depends on the quantity to be processed.
To be able to schedule, you must maintain default values for phases as well as
relationships between phases.
Depending on the scheduling type, the float before production is either added to the
basic start date, or the float after production is subtracted from the basic finish date.
In this way you can determine the start and finish dates of production (scheduled
start date, scheduled finish date).


Using classes of class type 019 work center type, you can classify resources as well
as operations contained in master recipes.
You can thus use the characteristics of a class of class type 019 in two ways: first,
you can store specific resource attributes and second, you can define requirements a
resource must meet if it is to be used in an operation of a master recipe.
The characteristic values of classified operations represent the selection criteria for
system-aided resource selection in the process order.

If you want to check whether the data for your recipe is complete and consistent, call
the Recipe check function.

You can evaluate the data of your recipe in the following ways:
- Evaluations on recipe changes: Documentation of changes made to all objects
belonging to a recipe over a certain period of time.
- Where-used list for resources, process instruction categories, materials,
documents, and classes.
- Evaluations of material lists: Evaluations of the structure and changes carried
out for a material list
- Mass changes: Replacing of process instruction categories and resources in
master recipes. Replacing of materials in material lists.

Depending on their function or the type of information they convey, different types of
process instructions are distinguished.
You can use the following types in control recipes for process control systems that
are sent via the PI-PCS interface:
- Process parameter
- Process data request
- Process message subscription
You can use the following process instruction types in control recipes for the R/3 PI
sheet:
- Process parameter
- Process data request
- Process data calculation formula
- Inspection results request
- Dynamic function call
- Sequence definition

You use process parameters to transfer information to process control. In the case
of manually operated lines, the process parameter contains a text with control
information for the process operator.
You use a process data request to specify that process control is to send a process
message with actual process data. The data request contains the following
information:
- The message category of the message to be sent
Using a process message subscription, you specify that process control is to send
a message every time a specific event, such as a goods receipt, takes place. It
contains the following information:
- The information to be conveyed in the message
You cannot use process message subscriptions for PI sheets.

Using a process data calculation formula, you specify that a value must be
calculated in the PI sheet. This value is then to be sent to specific destinations using
a process message. You specify:
- The value to be calculated and the formula to be used for the calculation

Process instructions are structures that transfer data or instructions from PP-PI to
process control. They are assigned to the phases of the master recipe and the
process order.
The user according to the requirements of the corresponding target system defines
process instructions.
By assigning characteristics and characteristic values, you specify:
- The information to be transferred or requested in a process instruction, for
example, the order number, a control instruction, or the status of a control recipe
- How the requested data is to be processed, for example, that a specific value is
to be reported by process control, and which message category is to be used for
this
You can use the same characteristic more than once in a process instruction.
Using sort numbers, you specify the sequence of the characteristics in the
process instruction.
The characteristics together with their formats and value ranges are predefined in
Customizing. Depending on the format, the characteristic value can be a date, a
certain time, a numeric or alphanumeric key, a short text, a long text, or a message
characteristic key.
If you have assigned a function or table for automatic value assignment to a
characteristic in Customizing, the characteristic value is assigned automatically
when the control recipe is created.

Process instructions are predefined in Customizing in the form of process instruction

categories. The process instruction category specifies:
- The type of a process instruction
- The characteristics contained in a process instruction, that is, the information
conveyed in it
When creating a process instruction in a master recipe or a process order, you must
refer to a process instruction category. The instruction type as well as the
characteristics and characteristic values defined in the instruction category are
copied to the process instruction.
When you create a process order from a master recipe, the process instructions of
the master recipe are copied to the process order.
In the master recipe, you can change data specific to the process. In the process
order, you can change data specific to the individual production run. The system
supports the following changes:
- Deleting and adding characteristics
- Assigning or changing characteristic values
In the master recipe, you can, for example add the material number of an
ingredient, or in the process order, you can add the material quantity to be used.

You create characteristics in Customizing and combine them in groups.

To be able to assign a characteristic to a process instruction, you must first release
the corresponding characteristics group for use in process instructions.

As of Release 4.0A you can use the process instruction assistant (PI assistant) to
maintain process instructions and process instruction categories for the R/3 PI sheet.
The PI assistant offers specific selection screens and prompts for each process
instruction type, and thus guides you through the process instruction definition. The
entries in the PI assistant focus on content and do not require any knowledge of
process instruction characteristics and how they are used. The system creates the
characteristic structure of the process instruction when you exit the assistant.
You can use the process instruction assistant as follows:
y To define process instruction categories in Customizing
y To define process instructions in the master recipe or process order
If you want to continue maintaining your process instructions on the characteristic
overview, you can access it from the process instruction overview or process
instruction category overview as before.

You use process parameters to transfer information to process control.

You use a process data request to specify that process control is to send a process
message with actual process data. The data request contains the following
information:
- Using a process message subscription, you specify:
Using a process message subscription, you specify:
- The events that process control must report to process management
- The message category that process control must use to report an event

The graphic shows an example of how data can be transferred between PP-PI and
process control in a simple process.
As the process in the sample scenario only allows for a small number of variants, it
can be represented on the control side using relatively fixed algorithms, for which
you can set a few parameters.
In the control recipe, PP-PI transfers information on the control algorithms to be
executed as well as the parameters to be used. The resources and materials are
always the same and thus need not be specified.
The process messages to be transferred from process control to PP-PI are not
specified in the control recipe. Instead, the messages to be created and sent are
defined for each control algorithm on the control side.

You can use process instructions of type process data request to specify, for
example, that the process control system is to report the value of a specific
measurement reading.
The graphic shows the example of a process data request that is used to request a
message on the material density. The process data request contains the following
information:
- The information that only one message is expected (simple data request)
- The message category that is to be used to report the value
- Information that is already contained in the process instruction and can simply be
copied to the process message (such as order number, data point, and unit of
measurement)
- A list of the characteristics whose value is to be assigned and that are to be
included in the process message by the process control system

The graphic shows how the process data request of the previous graphic is related to
a message created for it :
- The message category used for the message is DPREAD as specified in the data
request.
- The data already contained in the data request such as the order number, data
point, and unit of measurement is copied to the process message.
- To the remaining characteristics - marked as required actual data
(REQUESTED_VALUES) in the data request - values are assigned by the
process control system (PCS). They are included in the process message.

You can use a process instruction of type process message subscription to specify,
for example, that the process control system is to send a message whenever a
material has been consumed.
The graphic shows an example of such a process message subscription.
The process message subscription contains the following information:
- The message category that is to be used to report the data
- The order number, which is already contained in the process instruction and can
be copied to the process message
- The list of characteristics to which the process control system is to assign values
and include them in the process message

Production versions are used in discrete manufacturing, repetitive manufacturing,

and process manufacturing.
Production versions are used in sales & operations planning (SOP), material
requirements planning (MRP), process order creation, and product costing to select
the most suitable task list or recipe and the corresponding material list.
A production version comprises the following data: Material number, version ID,
lot-size range, and validity period of the production version, details about whether
the production version is locked, the date of the last consistency check, the
assignment of master recipes to the production version, the assignment of the
alternative BOM to the production version, a check status that displays the result of
the last consistency check, the production line if the product is manufactured in
discrete manufacturing, the change number that was used when the production
version was last changed, as well as further administrative data.
When you create process orders that require approval, the system uses the change
number to check whether the production version has been approved.
You can also select a production version without a recipe or BOM. Note, however,
that if you do so, material quantity calculation data is not copied.

The process of making a master recipe valid for a material is called material recipe
assignment. This involves linking the material to the master recipe, along with its
BOM and defining a production version. The production version is stored in the
material master of the material to be produced. It defines a unique combination of a
BOM alternative and a master recipe on a key date.
You usually create a BOM directly from within master recipe maintenance. However,
you can create a BOM using the BOM transactions of Production Planning and
assign it to the recipe.
UNIT SUMMARY
Now you are able
To create Material master record for the require material
To create Batches for the batch relevent material
To create Resource for the required resources
To craete Master Recipe for the production process materials
To edit Production versions

EXERCISES
Topic: Master Data
The main master data elements for process manufacturing are

- Material and batch
- Resource
- Master recipe
Instructions: Use the below mentioned path and refer example material to Create
Master Data.
Logistics Production - Process Master Data Material Master
Logistics Production - Process Master Data Resources
Logistics Production - Process Master Data Master Recipes
Logistics Production - Process Master Data Material Master /

Material Create (Immediately)
Choose Enter. The Select View(s) dialog box appears. It contains the views that have
been maintained for the material.
Select all views and choose Enter.
Use the Select all button at the bottom of the page or choose the views individually.
The Organizational Levels dialog box appears.
Choose F4 help to display the possible entries for the Plant field and the Stor. location
field. Choose the value displayed for each field:
Plant: 1100
Storage location: 0001
Enter
The Basic data 1 view appears.

Material description: Vanilla Ice Cream Packaged
Base unit of measure: KG
Choose Additional data.

Choose the Units of measure tab.
Kilograms and pieces
2 PC 1 KG
Choose the Information on material button to the right of the description field.

Material Type: FERT "Finished product"

Industry sector: F Food and Related Products
Choose Back.
Choose Back to exit the information on material and choose Main data.
Choose the MRP 1 tab.
MRP controller: I##
Choose the MRP 2 tab.
Procurement type: E "In-house production"

Choose the Work scheduling tab.
Production unit: PC
Choose the Accounting 1 tab.
Standard price: 10,00
Logistics Central Functions Classification

Master Data Classes
Class: T-CL1##
Class type: 023
Class Display
The Basic data view appears.
Description: Ice cream specifications

Choose the Characteristics tab.
Which characteristics have been assigned to the class?
T-CH1## Acidity content

T-CH2## Total Solids content
T-CH3## Freezing point
Choose Exit twice.

Material Create
Enter
Select the Basic Data 1 view, the Classification view, and the General Plant
Data/Storage Location 1 view.

Enter
Plant: 1100
Enter
The Basic Data 1 screen appears.
Material description: Corn Syrup

Choose the Classification tab.
Class: T-CL2## "Dextrose Equivalent of Sweeteners"
Characteristic:
Dextrose equivalent: 50.00 85.00 %
Choose Next screen.
The Plant data/Stor. 1 view appears.
The Batch management indicator is set.
Choose Environment Stock overview.
In storage location 0002, the following batches are available in the following quantities:
Batch Quantity Dextrose equivalents
B1021 5000 78 %
B1022 5000 82 %
B1023 5000 70 %
To display the classification data for a batch, position the cursor on the corresponding
line and choose
Extras Batch classification.
Choose Back to return to the material master.
Choose Exit.

Batch Create
Material: T-RI2##
Batch: (for example) B1021
Delete any other entries that may appear in this view.
Choose Enter. The Display Batch: General Data screen appears in the Basic data 1
view.

Last goods receipt: Date varies

The Batch unrestr. radio button is selected.
Choose the Classification tab.

Dextrose Equivalent: 78%
Choose Exit twice.
Logistics Central Functions Classification

Master Data Classes
Class: T-CL2##
Class type: 023
Class Display
The Basic data tab appears.
Description: Dextrose Equivalent of Sweeteners
Choose the Characteristics tab.
The following characteristic has been assigned to the class.:
Characteristic: T-CH4##
Description: Dextrose equivalents
Choose Exit.
Logistics Production - Process Master Data Resources

Resource Create
Plant: 1100
Resource: T-IC4##
The Basic Data tab appears.
You can display the following additional tabs:
Default values
Capacities
Scheduling
Costing
Basic Data screen:
Resource: "Packaging line"

Resource category: 0008 "Processing unit"
Person responsible: I## Resource manager ##
Standard values: Fixed time
Variable time

Choose the Capacities tab.
Capacity category: 008 "Processing unit"
Position the cursor on the Other formula field and choose Extras Formula Display
or the Display formula button.
The Display Formula dialog box appears.
fixed duration + variable duration

* operation quantity / base quantity
Choose Enter to exit the screen.
Choose Goto Capacity Header or choose the Capacity header button.
Planner group: 001 Capacity planner
Operating time: 24 H
Start: 00:00:00
Finish: 24:00:00
Choose Back.
Choose the Scheduling tab.
Capacity category: 008 "Processing unit"
Position the cursor on the Other formula field and choose Extras Formula Display
or choose the Display formula button.
The Display Formula dialog box appears.
fixed duration + variable duration

* operation quantity / base quantity
Choose Enter to exit the screen.

Choose the Costing tab.
Cost center: 4271 "Production Food"

Activity type: 1420 "Machine Hours"
Position the cursor on the Formula key field for each standard value and choose Extras
Formula Display or choose the Display formula button.
The following formulas have been defined for the standard values.
Formula for standard value Fixed time:

Fixed time

Formula for standard value Variable time:

Variable time
* Operation quantity / Base quantity
Logistics Production - Process Master Data Master Recipes

Recipe and Materials List Create
Recipe group: T-ICE##
Choose Enter. The Operations tab appears.
The manufacturing process comprises the operations listed below. They are carried out
at the following resources:
Operation Resource Description

1000 T-IC1## Mixing
2000 T-IC2## Pasteurization
3000 T-IC3## Freezing
4000 T-IC4## Packaging
5000 T-IC5## Hardening
The resource of the superior operation is allocated to each phase.
Operation 2000 "Pasteurization" comprises the following phases:
2010 Pasteurization
2020 Homogenization 1st phase
2030 Homogenization 2nd phase
2040 Aging
2050 Adding flavors
Relationships determine how the phases are related to each other in terms of time.
Choose the Operation graphic button in the upper toolbar.
The phases are processed in sequence:
1010 2010 2020 2030 2040 2050 3010 4010 5010
Choose Back to exit the graphic.
Select all phases and double-click a phase number.
select all phases and choose the Operation details icon in the lower toolbar.
Choose the Standard values tab.
You can use the Previous page and Next page buttons to go to the standard values of
the individual phases.
Choose Back to exit.

Choose the Recipe header tab.
Resource network: T-ICN##
Charge quantity of 2000 to 10000 KG

On the Recipe header tab, choose the Material assignments button.
Material assignments:
Mark the material T-FI1##, and choose the Production version button at the bottom.
The Display Production Version dialog box appears.
The production version defines that alternative BOM 1 of the material is used in
combination with master recipe group counter 1 of recipe group T-ICE##.
Choose Close screen to exit the Display Production Version screen.
Choose the Recipes tab page.

Choose Goto Materials.
The Choose BOM Material dialog box appears.
Double-click material number T-FI1##.
The material list for material T-FI1## appears.
The material list contains the ingredients required for the ice cream production together
with details on quantities and phase assignments.
On the Materials view, choose the BOM button.
or
Choose Goto Bill of Materials to display the general item overview.
The BOM for material T-FI1## appears.
Select material component T-RI2## "Corn syrup" and choose

Extras Batch classification
Class: T-CL2## "Dextrose Equivalent of Sweeteners"
Characteristic:
Dextrose equivalent: 75 85 %
By classifying the BOM, you specify the selection conditions for system-aided batch
determination in the process order.
Choose Back to get to the general item overview in the BOM.

On the item overview of the BOM, choose Header.
Base quantity: 1 KG
Choose Back to exit the BOM header.
Choose the Operations tab.
The following phase data is required in a recipe to communicate with the process control
level:
Control recipe destination

Process instructions
The control recipe destination varies by group number.

Description: ## Ice cream production
Choose Exit.
Control recipe destinations and process instructions
Control recipe destination
Logistics Production - Process Master Data Master Recipe Recipe

and Material List Display
Operations tab.
Use the input help (F4) in the Destination field.
CRD Description of control recipe destinations
01 PI sheet for group 1
A1 PI sheet for group A1
Process instructions
In the operation overview, choose Proc. inst. for phase 1010.

Use the input help (F4) in the Type field.
ProcInstCat Type
INSTR Process parameter
READ2 Process data request
SIGN Process data request
Which process instruction types have been defined in the R/3 System?
Universal process instruction category
Process parameter
Process data request
Process message subscription
Process data calculation formula
Inspection results request
Dynamic function call
Sequence definition

Display the administrative data for a process instruction.
Choose Process instruction details and then the Admin. Data tab.
Process instruction characteristics
Which process instruction characteristics are assigned to the process instruction

INSTR?
Choose Details for process instructions.
PPPI_INSTRUCTION
PPPI_NOTE
The characteristics PPPI_INSTRUCTION and PPPI_NOTE are each assigned a long

text. Display the long texts.
Choose Values.
Display the administrative data for a process instruction characteristic.
Choose Details for process instruction characteristics.

Administrative data tab
Simulating a PI sheet
Display the PI sheet for control recipe destination 01.
Operation tab
Select phases.
Choose Simulate proc. inst.
Defining a PI sheet in recipe T-DET1##
Operations tab
Select phases listed.
Choose Proc. inst.
Enter or select process instructions.
Choose Assistant or Details for process instructions.
Maintain control instructions or notes.
Choose Copy (only if you are maintaining in the assistant).
Simulate your PI sheet.

Select all phases in the operation overview..
Choose Simulate proc. inst.

UNIT III
PRODUCTION PLANNING PROCESS INDUSTRY

Planning Process Process Industry
Unit Goals:
This course will provide you with
Explain the Process and Implementation of the Planning strategies
Use the Most Important Transactions in Master Production Scheduling and Material
Requirement Planning, Analyze the Customization parameters for Material
Requirements Planning and evaluate the planning result
SOP Planning
Transfer Planning Result to Demand Management
Demand Management
Create/Change/Display of Planned Independent Requirement
Material Requirement Planning
Master Production Schedule
MRP Run
MRP Result
Unit Objective:
At the end of the course you will be able to

Create Product group for Finished products
Execute SOP Planning run
Transfer planning result to Demand Management
Change or Display the PIR table
Carrying out the MRP run.
Display the MRP result

The planning of the sales and production quantities can be carried out in different
levels of detail. The graphic above and the next graphic provide an overview of the
planning levels preceding production in the R/3 System.
The purpose of sales and operations planning is to specify sales quantities and
inventory plans for the long and medium term and to roughly plan the production
activities necessary to achieve these objectives.
Sales and operations planning can either be carried out at material level or via
product groups. Both materials and product groups can be used to form a product
group, however any level within a product group consists of either all product groups
or all materials. The lowest level in a product group always consists of materials.
This aggregated product group planning is useful if the number of finished products
makes it difficult to plan each one separately at the finished product level.
The starting point is to determine the sales quantities of future periods. This is
done in different ways.
On the basis of your projected sales quantities, you then generate a production
plan for long- and mid-term production quantities.
The sales and operations planning quantities can be broken down by individual
product group members and passed on to demand management.

In demand management, requirement quantities and dates are determined for

finished products and important assemblies. The demand program exists in the form
of independent requirements. The MRP controller can either create it directly or
use the planning results of previous planning levels.
In addition, demand management is also used to specify the strategy to be used for
planning or procuring a product. Examples of planning strategies are: make-to-stock
production, make-to-order production, and production by lot size for sales and stock
orders. Apart from that, there are several higher-level planning strategies for
manufacturing products.
In master production scheduling (MPS), important finished products or assemblies,
which, for example, dominate large areas of the production process, are marked as
master schedule items and are planned separately. Planned orders for the MPS
items are created by master production scheduling.
The main task of material requirements planning is to determine which material is
required in which quantity at what time and then to create the necessary planned
orders. For a planned order, the material BOM is exploded and dependent
requirements are created for the material components on the material staging date.
Planned orders are also created to cover these dependent requirements in a multi-
level MRP run.
In the case of in-house production, planned orders are converted to process orders
(process manufacturing) or production orders (discrete manufacturing). In the case of
external procurement, purchase requisitions are created.

Typically the following steps are carried out in SOP:

- Sales plans are first created for a product group.
- An appropriate production plan is created as a response to the sales plan.
- The production plan for the product group is disaggregated and transferred to
demand management where planned independent requirements are created.

The results of the SOP can be transferred to Demand Management as planned

independent requirements. These planned independent requirements for each
product at specific time periods are used by MRP to carry out detailed planning.
Hence it is critical that the results of the planning from higher levels be transferred to
Demand Management to maintain consistent planning values across the different
planning levels.

Demand management links top-level requirements planning (SOP sales plan, SOP
production plan, customer requirements, and so on) with material planning (MRP and
MPS).
The function of demand management is to determine requirements quantities and
delivery dates for finished products and important semi-finished products. The
demand program represents the result of demand management.
When a demand program is created for a material, the planning strategy of the
material is taken into consideration. The planning strategies represent the various
methods of planning for manufacturing or procuring a product.
The demand program distinguishes planned independent requirements and
customer independent requirements.
Customer requirements are created in sales order management and represent the
sales orders in the system.
Planned independent requirements can be created as follows:
- Manually by entering quantities and dates
- Automatically by copying the material forecast
- Automatically by copying the results of sales and operations planning

The planned independent requirements identify the quantities of the materials as well
as the requirements dates. A planned quantity that has been entered for an
extended period of time (for example, a year) can be split into smaller more detailed
periods (for example, weekly periods).
Key data associated with a planned independent requirement are:
- Material number: The material that the planned independent requirement is
created for.

Material requirements planning takes current and future sales as it's reference point.
The planned and, depending on planning strategy, actual requirements quantities
trigger the MRP calculation. In MRP, the requirements elements include sales
orders, planned independent requirements, material reservations, the dependent
requirements created by exploding the BOM and so on.
If the MRP run determines shortage quantities, the system creates procurement
proposals: Purchase requisitions and planned orders are elements planned in-house,
and which can be changed, rescheduled or deleted when and where necessary.
In the case of in-house production, the system creates planned orders for the
planning of production quantities. When planning is complete, planned orders can be
converted into production orders. When this is done, the system transforms the
planned order's dependent requirements into production order reservations.
In the case of external procurement, the system creates either a planned order, or
directly creates a purchase requisition, or a schedule line for a pre-existing
scheduling agreement for planning the external purchase order quantity. When
planning is complete, planned orders can be converted into purchase requisitions
and, at a later date, the purchase requisitions can be converted into purchase orders.
You control whether the system immediately creates purchase requisitions or firstly
creates planned orders in the initial screen of the planning run using the "creation"
indicator for purchase requisitions.

If a scheduling agreement exists for a material and is relevant to MRP in the source
list, then you can also create schedule lines directly in MRP. You control this using
the creation indicator for schedule lines in the initial screen of the planning run.
During single-item, multi-level planning, the system explodes the material's BOM and
creates and plans the dependent requirements of the assemblies and components. If
the components also have BOMs, these are also exploded and then the components
are planned. This is repeated until all BOM levels have been exploded. All materials
are planned according to the parameters entered in the initial screen of single-item,
multi-level planning. Planning is carried out as "top-down planning".
When executing single-item, multi-level planning, you have the option of displaying
and checking the planning result before saving it (indicator "Display results before
they are saved" in the initial screen):
- If you do not display the planning results, they are automatically written to the
database during the MRP run. In addition, you have the option of checking the
result for all planned materials directly at the end of planning by selecting the
"Display matl. list" function in the initial screen.
- Single-item, multi-level planning with an interactive check of the planning results
(whereby the indicator "Display results before they are saved" is set) has the
advantage that the results are only saved to the data base once they have been
checked and, if necessary, changed by the MRP controller. The materials to be
planned this way are displayed as breakpoints, and you are able to control at
which material you would like to stop. You are then able to display the planning

result for the desired breakpoint and change the planning result before
proceeding with further planning. The changes take immediate effect on
subsequent planning.
The demand program created can be viewed in the stock requirements list for the
material.
UNIT SUMMARY:
Now you are able to
Carry out SOP Plan
Transfer the Requirements to Demand Management
Change or Display Demand Management results
Execute MRP run.
Check the Stock Requirement list
Check Planning Proposals for Procurement Materials
Convert Planned order into Process Order

EXERCISES
Topic: Sales and Operations Planning

Instructions: Execute SOP, DM and MRP for your own material using the below
mentioned path. For the example following details are considered.
Plant : 1100
Product group : T-ICE##
Materials: T-FI1##,T-FI2## and T-FI3##
Logistics Production - Process SOP
Product Group Create
Product group: T-ICE##

Plant: 1100
Choose Enter. The Display Product Group: Members (Materials) screen appears.
Product group: Ice cream products

For information on the steps in sales and operations planning, refer to the page SOP
Process Flow in the training material.
Planning For Product Group Change

Plant: 1100
Choose Active version.
The Change Rough-Cut Plan screen appears.
Enter the sales quantities of 10 000 kg per month for six consecutive months, starting
from the month after next.
Save your sales plan.

Planning For Product Group Change

Plant: 1100
Choose Active version.
Enter a target stock level of 1000 kg per month for six consecutive months, starting from
the month after next.
Choose Edit Create production plan Target stock level
Save your planning result.

Choose Exit.
() SOP Disaggregation Transfer Product Group to Planning

Plant: 1100
Version: A00
Choose Invisible transfer.
Choose Active.
Choose transfer strategy Prod.plan for mat. or PG members as proportion of PG.
Choose Edit Transfer now
Logistics Production - Process Production Planning Demand Management

Planned Independent Requirements Display
Note: Ensure that the radio button is set to product group and that the product group T-
ICE## is listed in the correct field.

Plant: 1100
Choose Enter. The Plnd Ind. Reqmts Display: Planning Table screen appears.
Choose Exit twice.
Logistics Production - Process Production Planning Demand Management

Environment Stock/Requirements List
Material: T-FI1##
Plant: 1100
Choose Enter.
Change the material selection to then review T-FI2## and then T-FI3##.
Choose Enter after each material change to display the list.
For more information, refer to the page Stock/Requirements List: Gen. Information in
your training material.
At this stage, each list contains the planned independent requirements for materials T-
FI1##, T-FI2##, and T-FI3## respectively together with the requirement quantities and
requirement dates.
It also provides information on the quantities that are available today and at the
requirement dates.

Choose Exit.
Topic: Demand Management
Logistics Production - Process Production Planning Demand

management / planned indep.reqmts Change
Material: T-FI1##
Plant: 1100
Choose Enter. The Plnd Ind. Reqmts: Planning Table screen appears.
Increase the planned independent requirements for the month after next by 500 kg.
Choose Save.
Choose Exit.
Logistics Production - Process Production Planning Demand

management Environment Stock/reqmts list
The first planned independent requirement should now display a quantity of 7100 (KG)
Material: T-FI1##
Plant: 1100
Choose Enter. The Plnd Ind. Reqmts: Planning Table screen appears.
Choose Exit when you are finished.
Topic: Material Requirements Planning
Logistics Production - Process MRP Evaluations Stock/Reqmts List
Material: T-FI1##
Plant: 1100
Choose Enter.
Choose Exit when finished.
Logistics Production - Process MRP

Planning Single-Item, Multi-Level
Material: T-FI1##
Plant: 1100
Accept all default settings.
Choose Enter. The system displays a warning and prompts you to check the input

parameters. To start the MRP run, choose Enter again.
Choose Exit.
Logistics Production - Process MRP Evaluations MRP List - Material
Material: T-FI1##
Plant: 1100
Choose Enter.
As a result of the MRP run, the system created planned orders to cover the planned
independent requirements.
Place your cursor in the E (exception ) column and select the drop-down arrow to view
the message.
Choose Exit twice.
Logistics Production - Process MRP Evaluations MRP List
Material: T-FT1##
Plant: 1100
Choose Enter.
For the planned order that is chronologically first, position the cursor on the field for the
MRP element PlOrd. and choose the Display element symbol in the lower toolbar.
Header tab
Plnd Open: Planned opening date
The opening date is used as a selection criterion for the collective conversion of planned
orders into process orders.
Choose the Assignment tab.

MRP controller: I##
Choose Components (overview) to display the BOM items to be used for this order
proposal.
Choose Back twice.
Choose Exit twice.

UNIT IV
DETAILS FUNCTIONS OF PROCESS MANUFACTURING

Detail Functions of Process Manufacturing:
Unit Goals
This course will prepare you to
Use Process Order in R/3 System

Make the most Important customizing setting for Process Order execution
Become Familiar with several other topics regarding the way how the process
manufacturing is visually reproduced in the R/3 System
Order Type and Master Recipe Selection
Create Process Order
Process Order Release
System Status and User Status
Confirm Material Movements
Order Information System
Process Message Evaluation
Unit Objective:
At the conclusion of this course, you will be able to
Carry out the individual steps of Process Order Management

Make the main Customization Settings for Order Execution
Check the System Status and User status
To withdraw the Components for the Process Order
Confirm the Process Order
Check the Material Documents Of particular Process order
Evaluate Process Messages


Within a company, in-house activities are carried out using orders.

Process orders are used to control and monitor the production within a company.
They are also used as a Controlling instrument.
A process order describes which material is to be produced, its quantities and dates,
the means of production and production methods to be used as well as the
production costs and cost objects to which the costs are to be assigned. All of this
information is specified in the planned data (before the production run) and updated
in the form of actual production data.

The graphic illustrates the structure of a process order.

The order structure is very similar to the structure of master recipes. A process order
is usually created using a master recipe. The operation and phase structure together
with its relationships and assigned resources as well as material components and
process instructions are copied to the process order.
In the process order, additional elements are added to the structure taken over from
master recipes. These include, for instance, confirmations, material reservations, and
order costs.

The graphic shows the main steps that are carried out during process order
management to control process manufacturing in the R/3 System.
The procedure involved in process order management can be divided into the
following steps:
- Process planning
- Process order execution / process management
- Order closing

Process order scheduling starts at the order start or finish dates and is carried out in
the form of forward or backward scheduling. The system determines the actual start
and finish dates for the order and its phases and operations.
Depending on the scheduling type, the float before production is either added to the
order start date or the float after production is subtracted from the order finish date to
determine the start or finish date of the production (scheduled start date, scheduled
finish date).
The float before production and float after production are time floats enabling you to
react to disturbances in the manufacturing process.
On the basis of the scheduled start and finish dates, the system determines the start
and finish dates of the phases. To do so, it must determine the phase durations and
take relationships into account.
The release date for the order is determined by subtracting the release period from
the scheduled start date. The release date is used as a selection criterion for the
collective release of process orders.

Availability checks for material components ensure that only those orders are
released for which the required material quantity is available at the calculated
requirements date.
The availability check can be triggered automatically or manually. In Customizing,
you specify for each order type and plant whether an automatic availability check is
to be carried out. Furthermore, you define whether the availability is to be checked
during order creation and/or order release. You can manually check the availability at
any time.
You can either check the availability in a collective check for all components
(automatically or manually), or in a separate check for each component (only
manually).
Availability is checked according to the ATP method (Available to Promise). Material
quantities that are available at the requirements date are confirmed in the order.
If the total required quantity of a material component is not available at the required
date, the system sets order status Material shortage. In Customizing, you can
specify that orders with a material shortage are locked and cannot be released. You
can display missing parts for the order in the missing parts overview.
The results of the availability check are recorded in the availability log.
Availability checks are carried out according to checking rules defined with relation
to material or application in Customizing. The scope of the availability check is
specified for each material and order type.

A capacity describes the ability to perform a specific task. Together with the
available capacity and capacity load specified for them, capacities are the main
planning unit of capacity requirements planning.
Each resource can be assigned any number of capacities of different capacity
categories. You can maintain a variable availability in time for each capacity. The
available capacity describes the output of a capacity for a certain period of time.
Capacity requirements specify how much capacity output is required for phases
and operations of individual orders at a specific time. To calculate the capacity load
of phases, you can carry out a separate capacity requirements calculation that is
independent of the scheduling run for each assigned capacity. On the basis of the
standard values of phases, formulas are used to calculate the capacity load for each
capacity. The capacity requirements of operations are derived from the requirements
of subordinate phases.
In detail, the process of capacity requirements planning in PP-PI comprises:
- Calculation of available capacities of resources
- Calculation of the capacity requirements of operations in process orders
- Capacity evaluation: comparison of available capacities and capacity
requirements
- Capacity leveling: dispatching operations to resources, guaranteeing
available capacity for a specific time

The graphic shows the main steps carried out during process order execution.
Once a process order is released, it is transferred to production. The process order
must have status Released so that the business transactions for process order
execution and process management can be carried out.
You can release individual phases and operations, an entire order, or several orders
at once.
When you release the order, you can trigger specific business transactions, such as
material availability check and batch determination.
UNIT SUMMARY:
Now you able to
Create Process Order
Do Material availability check, schedule the Process Order
Check the Process Order Status
Confirm the process Order

EXERCISES
Topic: Process Order Execution

Logistics Production - Process Process Order
Environment Process Management Stock/requirements list
Material: T-FI1##
Plant: 1100
Choose Enter.
Write down the following information for the planned order that is chronologically first:
Date: Planned receipt / requirements date

Rec. / reqd qty: 7100 kg (Planned production qty)
Choose Exit.

Process order Create With planned orders
Planning plant: 1100

MRP controller: I##
Opening: Opening date 1 day to Opening date + 1 day
Order type: PI01
Delete all other values that are displayed in other fields.
Choose the Execute selections icon.

The Collective Conversion of Planned Orders: List screen appears.
According to the selection criteria, the system only displays the planned order for
material T-FI1## that is chronologically first.
Select the corresponding line in the list and choose Convert.
After the conversion, the system displays the number of the process order in the lower
message bar.
Choose Back twice to exit collective conversion.

Process Order Environment Stock/Requirements List
Material: T-FI1##
Plant: 1100
Choose Enter.

The planned order was converted to a process order.
Write down the following information for the process order:
Date: Planned receipt./ requirements date

Rec. / reqd quantity: 7100 kg (planned production quantity)
Choose Exit.
Logistics Production - Process MRP /

Evaluations MRP List
Material: T-FI1##
Plant: 1100
Choose Enter.
The MRP list displays the result of the last MRP run. In our example, this is the situation
before the planned order was converted.
The stock/requirements list, on the other hand, is immediately updated with all changes
in the stock/requirements situation.
For this reason, the process order is not displayed in the MRP list. It is, however,
contained in the stock/requirements list.
Choose Exit twice.
For information on the activities carried out in the background, refer to the page Activities
Involved in Process Order Creation in your training material.
Logistics Production - Process Process Order Process order Display
Process order: Order number (see exercise 7-5)
Choose Enter. The Display Process Order: Header - General Data screen appears.
Choose the Master data tab.
Recipe group: T-ICE## Recipe: 1
Choose Operations.
Choose Materials (button located to the right).
Choose the Header icon.
Choose the General data tab.
Scheduling type: "Forwards"
Float before production: 0 Workdays

Float after production: 0 Workdays

Release period: 5 Workdays
For information on the scheduling process, refer to the page Scheduling in your training
material.
The basic dates and the planned production dates for the order are displayed in the
General Data of the order header.
Choose Operations. Select all phases and double-click a phase number or choose
Opertn. detail.
To display the phase dates, choose the Dates tab.
To display the standard values, choose the Standard values tab.
You can use the Previous page and Next page buttons to go to the dates of the
individual phases.
Choose the Header icon.

Choose the Dates/quantities tab.
Choose
Goto Costs Analysis
The system determines the planned costs during process order creation.
At this stage, the system has not yet determined any actual costs. Actual costs are
determined only after material withdrawals and confirmations have been performed.
Choose Exit and acknowledge your intent to exit the report by selecting Yes.
Choose Exit.
Logistics Production - Process Process Order Process order Change
Process order: Order number
Choose Enter. The order header appears. Choose the Goods recpt tab.
Enter the following data: Batch: FI1##-3689
Choose Enter. The Batch Handling dialog box appears. Choose Yes to create the batch
master record.
Choose Materials (button located to the right).
Select the line for component T-RI2## that is to be handled in batches and choose
Material Batch management Trigger batch determination or the corresponding
graphic symbol in the lower graphic bar.
The system informs you that batches are selected according to BOM classification for
your component.

Choose Enter. The Batch Determination: Select Batches screen appears. The system
proposes batches B1021 and B1022.
Double-click to display the classification data for a batch number.
Choose Cancel.
Choose Copy.
The system takes you back to the material list. The batch you have selected was copied
to the order.
Save your order.

Logistics Production - Process Process Order Process order Change
Choose Enter.
Choose the Release icon.

Choose the Create control recipe icon.
Save the order.
Choose Exit.

UNIT V
PROCESS MANAGEMENT

Concepts of Process Management
Unit Goals
This course will provide u with
Set or Modify Process Management for your Process-Oriented Production
Use the Functions of Process Management
Sending the Control Recipe
Define a PI Sheet for your Process Oriented Production
PI Sheet Structure
Monitoring Control Recipe
Creating Messages
Sending Process Messages
Monitoring Process Messages
Unit Objective:
At the end of the Course you will know about
Process Messages
Process Instructions
Control Recipe
PI Sheets
Error Handling
Process management is the interface between the R/3 System and the systems
involved in process control. Due to its flexible structure, it can be linked to fully
automated, partially automated, and manually operated lines. Process management
comprises the following functions:
- Receiving control recipes with process instructions from released process orders
- Transferring control recipes to the corresponding process operators or process
control systems
- Displaying control recipes in natural language in the form of PI sheets that can be
maintained on the screen by the process operator
- Receiving, checking, and transferring process messages with actual process
data.
- Manual entry of process messages.
Process instructions are structures used to transfer data or instructions from R/3
process manufacturing to process control. Information relevant to process control is
assigned to the phases of the order and to the control recipe destinations in the form
of process instructions.
Users define process instructions according to the target system requirements.
Process management groups the process instructions into control recipes and
transfers them to the control recipe destinations specified in the process order.
Control recipes contain all the information that is relevant to the execution of a
process order for process control.
The system creates one control recipe for each control recipe destination of a
process order.
You can create control recipes for the following destination types:
- Process control systems in automated production lines
- Process operators in manually operated production lines
- In the second case, the control recipe is displayed in natural language in the form
of a PI sheet that can be maintained by the process operator.
To execute an actual production process, a process order is created on the basis of

a master recipe. Together with the control recipe destinations and process
instructions, the operation and phase structure is copied from the master recipe.
Once a process order has been released for production, the process instructions that
are to be sent to the same control recipe destination are grouped in a control recipe
and transferred to process control. Exactly one control recipe is created for each
control recipe destination.
This example shows the process instructions for the master recipe "Fertilizer, liquid,
form SX".
Process instructions that are specifically for the production process of fertilizer are
maintained for the phases of the recipe
Process instruction INSTR has been defined for the first phase 110. It contains a
process-specific instruction text for the PI sheet.
Control recipe destination FE is assigned to the phases of the recipe
Process instructions that are specific to the control recipe destination and are always
required in certain positions of a control recipe or PI sheet, regardless of a particular
production process or master recipe, are maintained for the control recipe destination
(in Customizing).
When you create the control recipe, the process instructions are generated in the
specified positions of the control recipe.
The R/3 PI sheet contains the following elements:

- A header with general data such as order number, material number, and
operating group
- Texts containing control information and instructions for the process operator
- Additional information that can be called up using the corresponding pushbutton
- Comments maintained by the operators, which can be displayed using the
corresponding pushbutton
- Input fields (individually or in tables) for the actual process data to be reported
- Fields for formula results to be calculated by the system
- The Record inspection results pushbutton, which you can use to jump to the QM
function for inspection results recording
- Pushbuttons that you can use to call R/3 function modules to start a dialog or
retrieve data from internal or external applications (such as R/3 Document
Management)
The graphic shows the PI sheet for the process instructions in phase 110 of the
process order.
The process instruction PHTEXT creates the short text in phase 110.
The process instruction INSTR creates the "control instruction with a safety note".
The process instructions FE_PHSTS and FE_PHSTE each create an input field for
executing a signature.
The process instructions FE_CONS create input fields to confirm the charged
material component quantities.
When a process order is carried out, process control reports actual process data
using process messages.
The process messages contain the following information, for example:
- The status of a process order
- Material consumption
- Selected process events
They are used, for example, to generate an electronic batch record (EBR) or a
production record as well as to update data in other components of the R/3
System (for example, inventory management).
Process messages are first sent to process management where they are checked
and passed on to predefined destinations.
Process messages can be sent to one or more destinations for further processing.
They can be sent to the following destination types, for example:
- R/3 function module
- User of the SAP office mail system
- ABAP/4 tables defined by the user
- External functions (such as a process control system)
The standard system contains predefined message destinations of type R/3 function
module. You can, for example, use these destinations to:
- Update the control recipe status
- Report time events for the phases of an order
- Post goods movements
- Report inspection result to QM
The standard system contains a number of predefined message categories enabling

you to transfer actual data from process control to the R/3 System. You can use
these message categories for the following functions:
- Updating the control recipe status and the corresponding order status
- Confirming time events
- Confirming activities
- Posting a goods issue for the order
- Posting a goods receipt for the order
- Reporting summarized measuring results to QM as inspection results
The message monitor provides information on the current processing status of

process messages.
From the monitor, you can call up various logs that provide more detailed information
on the processing of individual messages and errors that occurred.
On the basis of this information, you can carry out the following transactions from
within the monitor :
- Complete or correct messages
- Send messages if they are not automatically sent by a background job defined in
Customizing
- Delete messages
Process messages are structures in which actual process data is transferred from
process control to one or more destinations.
Users can define their own process messages to meet their specific needs. Process
messages to R/3 components are predefined by SAP.
The graphic shows an example of the contents of a process message that reports
the value of a temperature reading.
Process messages are created during process control to report actual data on the
execution of a process order. Process messages can be created in either of the
following ways:
- For planned or expected process events, you can request the corresponding
message in a process instruction. The message is created automatically when
the process operator maintains the PI sheet, or when the control recipe is carried
out in the process control system.
- In unexpected situations that are not taken into account in the PI sheet or control
recipe, you can also create process messages manually within process
management.
After creation, the process messages are transferred to process management, which
sends them to the corresponding destinations. Messages are transferred in the
following ways:
- In manually created messages: directly after saving
- In messages created from within a PI sheet: after carrying out the confirmation
function in the PI sheet
- Messages created by a process control system are transferred to process
management using a remote function call (RFC).
When you enter a signature at the phase start, the system creates a process
message that reports the start of phase 110 to the process order.
When you enter the actual charged quantity of the components, the system creates a
process message that triggers a material consumption posting in inventory
management.
When you enter a signature at the phase end, the system creates a process
message that reports the end of phase 110 to the process order.
The graphic shows process message creation using the actual quantity recording of
material T-RF700 as an example.
The message contains the order number, date and time, material number, charged
material quantity, and the unit of measure.
When creating the PI sheet, the system determines the order number, the material
number, and the unit of measure.
When you enter the actual quantity, the system automatically records the date and
time.
By entering the charged actual quantity, the process message data is complete.
The message can then be sent to the appropriate message destination. In our
example, this would be the function module for a "goods issue posting", Materials
Management.
The function for sending process message can be started in the following ways:
- Via a background job defined in Customizing. The send job is started:
- Automatically at predefined time intervals or whenever a new message is created
provided that
you have made the corresponding settings in Customizing
- Manually in the message monitor
- The background job sends all messages with the status To be sent, To be
resubmitted or To be
resubmitted with warning.
- Online for selected messages. You can start the send function in the monitor.
Before sending a process message to its destinations, the system checks:
- Whether the destinations allocated to the message exist
- Whether the destinations allocated to the message exist
- Whether a message can be processed by its destinations (except for external
function)
You can correct messages containing errors if they have not yet been sent to
their destinations.
Depending on the results of the checks, the message is either sent to all
destinations, only to those destinations where no error was found, or not at all. You
can specify for each message category whether the message is sent to all
destinations that can process it or to no destination if an error occurs at one
destination at least.
If the message destination is an external destination, the data is transferred via the
PI-PCS interface using a remote function call (RFC)..
From a technical point of view, communication between PP-PI and process control
systems is carried out using a remote function call (RFC).
The communication partners transfer data using Common Program Interface
Communication (CPI-C) based on TCP/IP.
Due to the RFC technology, the application is completely free of communication
handling on the R/3 level.
On the control computer level, SAP supports the automatic generation of a C-coded
RFC partner program with a code generator. The function module in SAP R/3 with
which data is to be exchanged is used as the basis for the generation of the partner
program.
- The generated program must be compiled and linked in the control computer,
and can then be used for the actual application as an Application Program
Interface (API).
When process management sends a message to an external system, the data is
transferred using a transactional RFC (tRFC).
The TRFC ensures that each call is executed only once. The sequence of the calls is
not changed. If the target system is not active when the call takes place, the RFC is
repeated according to a repetition rate or duration that can be set by the user.
The graphic shows the different statuses a message can have when it is being
processed. The message statuses have the following meanings :
- To be sent: The process message is created but has not yet been sent to its
destination.
- Sent: The process message has been sent to all its destinations.
- Sent with warning: The message log contains a warning message. The process
message has been sent to its destinations despite the warning.
- To be resubmitted: One of the message destinations was temporarily not
available because it was blocked etc. However, the message has been sent to
the other destinations.
- To be resubmitted with warning: One of the message destinations was
temporarily not available. Additionally, a warning message was issued by one of
the other destinations to which the message was sent.
- Message incomplete: The process message does not contain all required
characteristics of the message category. It has not been sent.
- Destination error: The process message could not be processed by one of its
destinations. However, it has been sent to all other destinations.
- Processing terminated: The processing of the message was terminated due to an
error. The message has not been sent to any of its destinations.
As a message is processed within process management, the system creates the

following logs:
- Change logs containing the name of the person who changed the message as
well as the characteristics that have been added, and the original and changed
characteristic values
- One checking log containing a list of all destinations assigned to a message as
well as the results of general checks
- Destination-specific logs containing the results of destination-specific checks as
well as the transaction ID for the corresponding RFCs if the destination is an
external function
If a process message is sent to an external function, data is also entered in the tRFC
log. This log documents all tRFCs carried out in your system.
You can call up all logs from within the message monitor.
Vendors of control systems (PCS) can have the link of their system to PP-PI certified
by SAP. In this way, the user gets a predefined interface that provides a specified
amount of basic functionality.
During certification, a test catalog elaborated by SAP is used to check whether the
control system is able to exchange the required data with PP-PI.
Functions going beyond the basic functionality are documented in the certification
log.
The sample process instructions developed for certification are delivered by SAP.
Note that only the interface between PP-PI and the control system is certified. SAP
does not certify application functions of the control system.
Confirmations record the internal activities of a company that have been performed
for the order. Confirmations document the state of processing for process orders,
operations, phases, and secondary resources.
Confirmations are recorded for the phases and secondary resources. Since costing,
scheduling, and capacity requirements planning are only based on the phase data
and secondary resource data, operations are not confirmed.
The graphic illustrates which data you can confirm and which business transactions
are carried out as a result.
To confirm order data, you can use both the R/3 confirmation transaction and
process messages from within the PI sheet or a process control system.
Confirmations can be used to trigger backflushing and automatic goods receipts.
Activities completing process order management are process order settlement,

process data documentation, and process order reorganization (archiving and
deleting).
A process order is debited with the actual costs incurred during production. The
graphic shows the business transactions for which actual costs are recorded, thus
resulting in debit postings to the order.
A process order is credited when material is delivered to stock and when the order is
settled. When order settlement is carried out, the actual costs incurred for the
process order that remain after the material delivery credit posting are settled to one
or more receiver cost objects. The settlement process automatically generates
offsetting entries to credit the process order.
To be able to settle a process order, you must maintain several settlement
parameters valid for the order.
The digital signature serves the same function for the processing of digital data as a
handwritten signature serves for paper documents.
You can specify that a user must execute a digital signature to be able to carry out
particular business transactions in the R/3 System.
The digital signature enables you to meet the security requirements laid down in the
Good Manufacturing Practices with regard to the execution of these transactions.
The digital signature ensures that:
- A transaction can only be carried out by users with a special authorization
- The user identification is unique and forgery-proof (for example by using a card
reader)
- The name of the user is documented together with the signed transaction and the
date and time, and cannot be manipulated afterwards
Depending on the application, the user can or must also enter a comment on the
digital signature.
If several different users must sign a transaction, you can combine individual
signatures of different user groups into application-specific signature strategies.
The Secure Store and Forward (SSF) interface is used to realize digital signatures in
the R/3 System for the signature method user signature with external security
product.
SSF enables the linking of various external security products supporting different
identification procedures. In this way, you can use digital signatures to secure data
and documents as independent data units when they are saved on data carriers or
transmitted over communication links.
At present, the system supports the identification and signature execution using chip
cards and files. The user-specific data (such as the password and private key) is
stored on the chip card or file in an encrypted format.
After the users identify themselves, document data is transferred to the security
product. The digital signature is created on the basis of this data and returned to the
R/3 System.
The digital signature has been implemented for the following transactions:
Quality Management (QM) component:
- Saving inspection results for an inspection lot
- Recording and changing the usage decision for an inspection lot
- Releasing a physical-sample drawing
Engineering Change Management component:
- Changing the status of the engineering change request/order
- Changing the status of change objects in the engineering change request/order
- The approval procedures for recipes and inspection plans are based, for
example, on carrying out engineering change requests/orders.
Production Planning for Process Industries (PP-PI) component:
- Completing a process step in the PI sheet
- Accepting invalid values as input for data request in the PI sheet
- Approving a batch record
Depending on the application and your settings, a signature consists of only one
signature or several individual signatures defined in a signature strategy.
A signature strategy specifies the following:
- Which individual signatures are required, this means, which user groups must
sign the operation
- In which sequence the individual signatures must be executed
- Which signature or signatures can complete the signature process
A user may execute no more than one signature within a signature strategy.
Digital signatures and how they can be applied:
- PI sheet: Digital signatures with or without signature strategies can be used
- Batch record: Digital signatures with or without signature strategies can be used
- Engineering change request/order: Digital signatures with signature strategies only
- Quality management: Signature strategies are not supported for digital signatures
You can define input validation checks in the PI sheet.

You can also define that invalid input values can only be transferred by executing a
digital signature.
You can display the signatures executed for an inspection lot, engineering change
order, PI sheet, or batch record from within the relevant object.
You can use the following criteria to search for digital signatures for evaluation
purposes:
- Signatory (user)
- Execution date and time
- Object type for which the signature was executed (for example, engineering
change order or inspection lot)
The system displays a list of all the objects for which digital signatures have been
executed. You can navigate to the objects from this list and display all signatures for
the object there.
You can combine sequences of production charges that are the same on one line in
a production campaign. This allows for more efficient use of costly setup and clean-
out processes, as well as more exact settlement through the direct distribution of
campaign fixed costs.
A typical campaign consists of a setup phase, several planned/process orders,
clean-out, and a tear-down phase.
The graphic shows a possible scenario in which campaign management is used.

Triggered by an independent requirement for material ABC, several planned orders
are created in material requirements planning. They are created in accordance with a
lot-size procedure defined in the material master.
The planned orders are grouped in a campaign (= campaign creation).
Service orders (setup orders, cleaning orders) that are also required are then
entered in the campaign (= campaign processing).
Planned orders in the campaign are converted to process orders (= campaign
conversion).
The process orders are executed one after the other. Confirmations and material
movements are recorded for the orders.
The campaign service costs are distributed to the process orders according to a
user-defined strategy.
Campaign management can be carried out based on business processes. For costs
that cannot be settled directly to materials (for example, clean-out costs, setup
costst), a business process is debited. The business process costs are settled to the
process orders periodically according to the process quantities used.
You can calculate costs for:
- The individual orders in a production campaign
- The whole production campaign
You can:
- Use business processes to assign the campaign fixed costs, for example, setup,
clean-out, and tear-down costs to the materials in the campaign on the basis of
the source or cause of the cost
- Carry out precalculation and post-calculation for the production campaign
- Carry out actual costing, WIP, and variance calculation
- In the information system, display cost reports for the campaign as well as the
business processes involved to evaluate the whole production campaign
financially
UNIT SUMMARY:
Now you are able to

Create Control Recipe
Create PI Sheet
Maintain PI sheet
Creating the Process Messages
Sending the Process Messages
EXERCISES
Topic: Process Management
Prerequisite:
Process Order, which has status as, released
Logistics Production - Process Process Management
Control recipe Control recipe monitor
Plant: 1100
Choose Enter. The Control Recipe Monitor: Overview screen appears.
The control recipe has the status Created.
Select your control recipe and choose Send. After sending, choose the Refresh icon to
update the list. The control recipe will now have the status Sent.
Choose Exit twice.
Logistics Production - Process Process Management PI sheet Edit

work list
Plant: 1100
Group: Grp. ## ICE
Symbol Execute
Your PI sheet appears in the work list for your group.
Choose PI sheet (change).
Report the start of PI sheet maintenance by entering your signature, PI-##. Choose
Enter and confirm the signature by entering your R/3 password.
Choose Enter.
Report the actual quantity of the ingredients required for phase 1010 that you charged.
You can use input help (F4) to display the target quantities as default values and copy
them over to the actual quantities to be reported.
Read the note Calc. current phase duration.
Calculate the current phase duration as specified in the note. You can use the possible
entries help (F4) to copy the current time to the corresponding input field.
Enter your signature to report the end of phase 1010.
In the same manner, process the phases 2010, 2020, 2030, 2040, 2050, 3010, 4010 and
5010.
At the end of the PI sheet, report the number of produced ice cream packages and
enters your signature to confirm the end of the PI sheet.
Set the PI sheet to complete.

PI sheet set to complete
Choose Exit.
Logistics Production - Process Process Management Message Message

monitor
Plant: 1100
Choose Enter. The Process Message Monitor: Messages screen appears.
Select all process messages and choose Send to send them. After sending, choose the
Refresh icon to update the list. The messages should now all have the status Sent.
If some messages still have status to be resubmitted or Destination error, try to analyze
the error in the logs and send these messages again.
Choose Exit twice.
Logistics Production - Process Process order Display
Choose Enter. The order header appears. The delivered quantity and confirmed order
dates are displayed here in the General data.
Choose Operations. Select all phases and double-click a phase number.
To display the confirmed dates, choose the Dates tab.
To display the activities calculated from the dates, choose the Qty/activities tab.
You can use the Previous page and Next page buttons to go to the dates of the
individual phases.
Choose Materials.
Choose one or more components and choose

Material Detail or the Material details button in the lower toolbar.
The General data tab contains the component quantities withdrawn.
Choose Exit twice.
Logistics Materials Management Inventory Management

Environment Stock Stock Overview
Material: T-FI1##
Plant: 1100
Note: Delete the batch number if it is displayed in the batch field.
Program Execute
Batch FI1##-3689 that you produced was delivered to storage location 0001 "Delivery
warehouse" in plant 1100.
Since a corresponding setting has been made in the Work Scheduling view of the
material master , the stock first delivers to quality inspection in the material master and
not to unrestricted use.
Choose Exit.
Logistics Production - Process Process Order Process order Display
Choose Enter.
In the order header, choose

Goto Costs Analysis
Due to the material withdrawals and confirmations, the order was debited with the
material and product costs.
When the batch you produced was delivered to stock, the order was credited.
Choose Exit and acknowledge your intent to exit the report by selecting Yes.
Choose Exit twice.

() Process order Period-end closing Settlement Individual processing
Controlling area: 1000
Choose Enter.
Order: Order number

Settlement period: Current month
Fiscal year: Current year
Processing type: Automatic
Processing options: Deselect "test run"
Settlement Execute
() Process Order Display
Choose Enter.
In the order header, choose

Goto Costs Analysis
After order settlement, the process order is completely credited and the balance is
cleared.
Choose Exit.
() Process order Change
Choose Enter. Process order Functions Deletion flag Activate
The status DLIN is active.
Once the deletion flag has been activated, you can no longer change the order data.

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Date: 26th Oct 2005

The contents of this document are the sole and

PRODUCTION PLANNING CONTROL PROCESS INDUSTRIES

PRODUCTION PLANNING CONTROL PROCESS INDUSTRIES ............................... 2

PRODUCTION PLANNING CONTROL PROCESS INDUSTRIES-INDRODUCTION .. 3

PRODUCTION PLANNING AND CONTROL PROCESS INDUSTRIES- SYLLABUS. 4

RECOMMENDED TIME SCHEDULE............................................................................... 7

BASIC DATA FOR PROCESS MANUFACTURING:..................................................... 17

PLANNING PROCESS PROCESS INDUSTRY........................................................... 71

DETAIL FUNCTIONS OF PROCESS MANUFACTURING: .......................................... 86

CONCEPTS OF PROCESS MANAGEMENT .............................................................. 100

L & T Infotech Production Planning for Process Industries Page 1 of 141

PRODUCTION PLANNING CONTROL PROCESS INDUSTRIES

Production Planning in Process Industry is gaining lot of importance in light of its

An Overview of Process Manufacturing

Wishing you all the very best.

L & T Infotech Production Planning for Process Industries Page 2 of 141

PRODUCTION PLANNING CONTROL PROCESS INDUSTRIES-INDRODUCTION

The integrated planning of production, waste disposal, and transport activities

L & T Infotech Production Planning for Process Industries Page 3 of 141

Production Planning and Control Process Industries- Syllabus

PP-PI Overview , PP PI Integration with R/3 System, Applications of PP-PI , Functions

Resources Functions Resource management, Cost center Assignment, Available

Production Versions Editing Production Version, Engineering Change Management

Master Recipe Materials-Recipe Assignment, Material List, Classification of Bill of

Master Recipe Control View Process Management, Process Instructions and

Master Recipe - Engineering Change Management-Change Master Record,

Categories of Planning Strategies - Make-to-stock production, Order production

L & T Infotech Production Planning for Process Industries Page 4 of 141

make-to-stock, finished products to individual customer stock using make-to-order

Processing MRP Results - MRP list, Stock/requirements list, Collective evaluations,

Order release - Process order release, Customizing: production scheduling profile,

Confirmations and Material Movements - Back flushing, automatic good receipt,

Process Data Evaluation - Order Information System, Process Message Evaluation.

Digital Signature - Digital Signature Definition, Linking to External Security Products,

Process Messages Creating process messages, Sending process messages,

Process Message in the Standard System - Updating control recipe status,

L & T Infotech Production Planning for Process Industries Page 5 of 141

Process Instructions Structure and Setting - Process instruction types, Structure of

R/3 PI Sheet Process Instruction - Process parameter, Process data request,

L & T Infotech Production Planning for Process Industries Page 6 of 141

RECOMMENDED TIME SCHEDULE

Module Module Description Training Reference Material

L & T Infotech Production Planning for Process Industries Page 7 of 141

PROCESS MANUFACTURING OVERVIEW

L & T Infotech Production Planning for Process Industries Page 8 of 141

This course will provide you with:

An overview of the R/3 component Production Planning for Process Industries

PP-PI Integration wit R/3 System

Application Areas of PP-PI

Data Flow in PP-PI

At the conclusion of this course

L & T Infotech Production Planning for Process Industries Page 9 of 141

L & T Infotech Production Planning for Process Industries Page 10 of 141

PP-PI is designed for the batch-oriented process manufacturing company that

L & T Infotech Production Planning for Process Industries Page 11 of 141

The graphic shows the hierarchical structuring of information of an individual

L & T Infotech Production Planning for Process Industries Page 12 of 141

PP-PI comprises the following functional areas:

L & T Infotech Production Planning for Process Industries Page 13 of 141

A production process is triggered by production requirements. Production

L & T Infotech Production Planning for Process Industries Page 14 of 141

You are now able to