Production Cycle

Production Cycle
Production Planning - Process Industries (PP-PI)

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.
Manufacturing Methods

Discrete Manufacturing
Discrete manufacturing is characterized by requirements that occur on an
irregular basis or on the basis of demand.
Discrete manufacturing starts with the creation and processing of a
production order. You can create a production order either manually or by
converting a planned order that was created in production planning and
procurement planning.

Repetitive Manufacturing
In Repetitive Manufacturing , products remains unchanged over a longer
period or manufactured in in lots and used specific quantity per time. There
is no process order or production order in Repetitive manufacturing.
Repetitive manufacturing only works with planned orders.
SAP uses two types of Data:-
Master Data
Master data is the central information source for your company.
All SAP components access this data. By integrating master data
in central database objects, you can avoid data redundancy. SAP
components use data from the individual master data records for
most transactions.
Transactional Data
The data which are created, modified or deleted
frequently in day-to-day business process is called Transactional
Data. i.e. sales order, Process order, Transfer order etc.
 Master Data in PP-PI
Substance or object dealt with on a
commercial basis or used, consumed or
generated during production is called
material.
A material can be a chemical element
or a component.
A description of an enterprise-specific
process in the process industry that
does not relate to a specific order.
The master recipe is used for producing
materials or supplying services.
T-Code C201
A formally structured list of
components that make up a product or
assembly. The list contains the object
number of each component, together
with the quantity & unit of Measure.
Bill
A machine, person, facility, warehouse, means of
transportation or other asset with a limited
capacity that fulfills a particular function in the
supply chain. T-code CRC1
Material Master
Material Master is stored centrally and used by all the components of Logistics system of
SAP R/3.

When creating Material, co-ordination between all the user departments like Production,
Quality, Purchase, Sales and, Accounts is mandatory.

It is the responsibility of PP user to ensure all relevant views (MRP views and Work
Scheduling view) are extended for in-house produced material.

T. Code MM01
MRP1 View
MRP2 View
MRP3 View
Work Scheduling View
 Bill of Material

A formally structured list of components that make up a product or

assembly. The list contains the object number of each component, together with
the quantity & unit of Measure.

Material: Finished Material

Plant : 1000

Component: Raw Materials

Item category: L-Stock item

T. Code CS03
 Resource

A machine, person, facility, warehouse, means of transportation or other asset

with a limited capacity that fulfills a particular function in the supply chain.
Capacity
Machines Requirements
Planning
Cost
Center

Assembly Resource Costing

Labor
Line

Production Scheduling,
Line Execution Times
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Change Resource- Basic Data View

T. Code CRC2
Production version
Key which determines the various production techniques according to which a material can be manufactured.
The production version determines following:
the BOM alternative for a BOM explosion
the task list type, the task list group and the task list group counter for allocation to task lists
lot size restrictions for repetitive manufacturing

Copyright 2008 Accenture All Rights Reserved.

T. Code MM03
 MRP

Material
Requirement
Planning
Why we use Material Requirements Planning (MRP)

MRP uses a set of Techniques that uses BOM data, inventory data &
MPS to calculate requirements for materials. Thus it is used to procure
or produce the requirement quantities on time for:
-internal purposes
-sales and distribution
MRP Run

T. Code MD02
 MRP result planned order generated for finished
material

Material

Automatically created
planned
Order via MRP run

T. Code MD04
 MRP result - Purchase requisition is generated for
raw material

Material

MRP area

Plant

Automatic purchase
Requisition created
via MRP run

T. Code MD04
Process order creation: conversion of planned orders

A process order defines which material is to be processed, at which

location, at what time and how much work is required.
It also defines which resources are to be used and how the order
costs are to be settled.
Process orders are used to control production within a company and
also to control cost accounting.

Planned order

The conversion
from planned
orders to process
orders

T. Code MD04
 Availability check, Order release & Batch no. created

Material

Availability check
All checked materials are
available

T. Code COR7

Batch No.
Created

Order release
release carried
out

T. Code COR7
 Scheduling & Order created

Scheduling
Order is scheduled
before saving

Process order 70001073 is

Created & saved
T. Code COR2

Process order display in

Stock/ requirement list

T. Code MD04
Control recipe created

T. Code CO53
Goods issue verification to process order

Material doc. Number

Process order quantity issued

Process order Number

Batch No.

T. Code MB51
 Process order confirmation

Process order Confirmation

Reporting of confirmation on Shop Floor Orders must be done on the already
existing milestones or at least on final operation
Confirmation Number: As shown on the Process Order Overview
Process Order Number / Operation

Process Order No.

Confirmation Type
Confirm order quantity

T. Code CORK
Goods Receipt for finished good

T. Code MIGO
Costing of process order

T. Code COR3
 Technical complete (TECO)
TECO means ending a Process order from a logistical viewpoint. This function is
usually used, if the execution of an order has to be stopped prematurely or if the
order execution is completed.
The following actions are executed if an order is set to Technically complete.

The order is not relevant for MRP planning

Reservations are deleted
Capacity requirements are deleted
Purchase requisitions for external operations or non-stock materials are deleted
The order and its operations receive the system status Technically Completed
(TECO)
If an order is technically complete, you cannot change it. The fields in the order
are displayed but cannot be changed.
 Settlement
When a Process order is settled, the actual costs incurred for the
order are settled to one or more receiver cost-objects (for example,
to the account for the material produced or to a sales order).
Offsetting entries are generated automatically to credit the Process
order:

If the costs for the Process order are settled to a material

account, the order is credited each time material is delivered to
stock. The material stock account is debited accordingly.
If the costs for the Process order are settled to another receiver (for
example to a sales order), the order is credited automatically at the
time of settlement. The cost-objects are debited accordingly.
Rework Processing (Work-in-Process)

This scenario focuses on a rework process within production. All required

rework activities are related to the parent production order. For this reason,
errors are recognized and corrections initiated such as insertion of a rework
operation within the same production order. The additional rework operation is
confirmed and settled within the original production order,