Production Planning 2 - 1

Section 2:

Materials Management and
MM Master Data Review
Production Planning
Production Planning 2 - 2
Production Planning
Sections
1. Production Planning Overview
2. Materials Management & MM Master Data
Review
3. Demand Planning & Long-term Planning
4. Master Production Schedule
5. Material Requirements Planning
6. Capacity Requirements Planning
7. Production Reports
8. Whats Next
Production Planning 2 - 3
Learning Objectives
Upon completion of this section, you will be able to:
Define the key terms related to Materials
Management and MM Master Data
Describe how MM/MM Master Data fits into the
SAP system
List the key MM Master Data processes described
in the AeLS courses
Production Planning 2 - 4
Materials Management Review
MM is a part of
SAPs integrated
enterprise
resource
planning (ERP)
system
Production Planning 2 - 5
MM Functionality
MM supports all phases of materials management:
Materials planning and control
Purchasing
Goods receiving
Inventory management
Invoice verification (a FICO task)
The system is updated with information from on-line
transactions from purchasing, inventory management, and
invoice verification
Provides real-time reporting capabilities
Production Planning 2 - 6
MM Key Terms and
Definitions
Term Definition
Material A substance or object dealt with on a
commercial basis or used, consumed, or
generated during production.
Example: P725003 Cover, Fl. Box Lg. Capacity
Purchasing Group A code indicating a buyer or group of buyers
responsible for a material or material group.
Example: 102 Jim Simkins
Purchasing
Organization

An organizational level that negotiates
conditions of purchase with vendors for one
or more plants. It is legally responsible for
completing purchasing contracts.
Example: 3000 Hubbell Wiring Sys.
Production Planning 2 - 7
MM Key Terms and
Definitions (continued)
Term Definition
MRP

Materials requirements planning is
the process of planning materials
for current and future requirement.
Vendor

A business partner from whom
materials or services are procured.
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MM Master Data Review
MM Master Data is a primary component of MM, along with
Inventory Management, Purchasing, and Warehouse Management
MM Master Data
WM
IM
PR
Production Planning 2 - 9
Production Planning
Master Data
Master
Data
Routing
Material
Master
Work Center
Capacity /
Resources
Bill
of
Material
Production Planning 2 - 10
Working with Master Data -
Overview
Master data is used in every transaction in the system
Master data contains information that is frequently needed and
in the same format
Information is read from the material master data and
defaulted in transactional data such as:
Bills of Material
Purchase orders
Routings
Master data changes do not change previously created
transactions
Master data generally resides in the system for a long time and
security access is restricted


Production Planning 2 - 11
Benefits of Master Data
All material data are stored in a single database, thereby
eliminating redundant data storage
Information is created once, minimizing data input
Real-time data is available for review at any time
Data is integrated with other SAP modules and processes:
Order Management
Inventory Management (IM)
Warehouse Management (WM)
Accounts Receivable (AR)
Accounts Payable (AP)
Goods Receipt and Movement
Production Scheduling

Production Planning 2 - 12
Material Master Record Views
Basic Data
Classification
Quality
Management
Warehouse
Management
Material
Master
Record
MRP
Accounting
Costing
Forecasting
Sales
Storage
Work
Scheduling
Purchasing
Production Planning 2 - 13
Material Types Review
Material type (for example, raw material or finished
good) determines which views are created
Hubbell has identified the following material types:
ZFIN Finished Goods
ZSEM Semi-Finished Goods
ZRAW Raw
ZPKG Packaging
ZSER Services
ZMRO Operating Supplies
ZCFG Configurable Materials
Production Planning 2 - 14
Selecting Material Views
Material type drives the
possible material views
List of possible views for
ZRAW
Use the vertical
scrollbar to see
additional
available views
Production Planning 2 - 15
Material Master Record Views
Views Fields Description
Basic data 1 Basic Unit of
Measure
Material unit of measure, i.e., EA, LB, BT
Purchasing Purchasing
Group
Responsible buyer or department
MRP1 MRP Type Key that determines how a material is planned
MRP2 Procurement
type
Defines how a material is procured, i.e. in-house
GR Processing
time
Number of days required from the receipt of
goods for inspection and placement into storage
Plnd delivery
time
Number of days to obtain an externally procured
material
Safety Stock Quantity required to satisfy unexpectedly high
demand and/or inconsistent supply
This is a list of
the views and
fields on a
material master
record relevant
to creating MRP
purchase
requisitions
Production Planning 2 - 16
Material Master Record Views
(continued)
Views Field Description
MRP3 Period indicator Specifies period in which the consumption
values and the forecast value are managed, i.e.,
monthly
Availability
check
Procedure that ensures enough components are
available for planned or production orders.
Indicates how or when availability is checked,
i.e., 01=Daily requirement
MRP4 Component
Scrap
Percentage of scrap that occurs during
production
Accounting 1 Standard price Standard price of material
Stor. location
stock
Stor. Loc. Where material is stored in the warehouse
Production Planning 2 - 17
MM/PP Key Master Data Terms
Term Definition
Bill of Material
(BOM)

Complete list of components making up a
product, including description, quantity, unit
of measure, document information records,
comments, and notes
Alternate BOM A modified BOM with a new effectivity date.
Allows you to make significant changes to the
BOM, while maintaining the original BOM
structure
Capacity

Defines the ability of a work center to perform
a task: Can be measured in time (as in hours)
or in units
Material Master
Data Record
Contains a complete set of data for all material
procured, sold, produced, and stored
Production Planning 2 - 18
MM/PP Key Master Data Terms
(continued)
Term Definition
Material Type

Grouping of materials with same basic
attributes, allowing these materials to be
uniformly managed
Routing

List of operations that must be performed in
sequence to manufacture a product
Work Center An organizational unit that defines where an
operation must be performed: Can be a
person, machine, or product line; includes
information about capacity planning
Production Planning 2 - 19
Learning Review
You should now be able to:
Define the key terms related to Materials
Management and MM/PP Master Data
Describe how MM/PP Master Data fits into
the SAP system
List the key MM Master Data processes
described in the AeLS courses

Production Planning 2 - 20
This completes the review of
the AeLS prerequisites:
Materials Management Overview
MM Master Data

Questions?