Production Planning

Master Data

EGN 5620 Enterprise Systems Configuration

Spring, 2014
Production and Planning
Master Data

SAP Implementation
Business Process Integration

FI MM PP SD

Rules
FI

MM

PP

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Business Process Integration

PP

Master Data

PP

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Production Process (Make-to-Stock)
Capacity Schedule
Planning and Release

Shop Floor
Production Documents
Proposal
(Planning/Other)
Production
Process Goods
Issue

Completion
Order
Confirmation
Settlement
Goods
Receipt
1. Organization Data
1. Client
2. Company code
3. Plant
4. Storage location

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Organization Structure for PP
Client (620)

Company
Code (C _ _ _)

Plant
(P_ _ _)
SL 10 SL 20

SL30
Organization Data
 Plant-specific organizational units
◦ MRP controller
◦ Production controller
◦ Production scheduler
◦ Planner group
◦ Person responsible (financially)
 Non-plant specific organizational units
◦ Capacity planner

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BPI PP Master Data

PP

Master Data

PP

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Master Data for Production Planning
1. Materials Master Record
2. Bill of Material Master Data
3. Work Center Master Data
4. Product Routing
5. PRTs (Production Resources/Tools)

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1.Material Master Record
To provide a clear display, material master data is subdivided
into views.
A material master contains global data, which is valid across
all locations (for example, data that is the same for this
material in all production plants) and location-specific data,
which contains settings for the relevant location (for example,
a specific production plant).

General data such as the measurements or the weight of a

material is set globally, whereas settings for planning are
usually predefined locally

The material master is the data object that contains all

information necessary for the business use of a material, in
particular, all settings for procurement, production, storage or
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1. Material Master Record
The most important settings for Material Planning are contained in
material requirements planning (MRP) views 1 to 4 of the ECC
material master.

MRP type specifies how a material should be planned (MRP,

consumption-based planning, no planning).

Lot-sizing procedure determines the lot size of the respective

procurement proposals.

Procurement type is used to determine whether a material is to be

produced in-house or procured externally. The in-house production
times or the planned delivery times specify how long procurement
takes. A level of safety stock can be set.

Strategy group controls how the independent requirements

behave. Moreover, control of the ATP check takes place on the basis of
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2. Bill of Materials
BOM is a hierarchical structure of the
materials needed to produce a finished
goods or semi-finished goods.
BOMs in SAP are defined as single-level,
but can be constructed multi-level by
nesting several single-level BOMs.
Nesting refers to a hierarchy in which a bill
of materials contains its own bills of
materials.

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2. Bill of Materials

 Bill of Materials (BOM) are created as single-

level or multi-level relationships between
one parent material and the sub-component
material

EPEN

Barrel Cap Crown Cartridge Band Clip

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 2. Bill of Materials
 Variant Bill of Materials (BOM)
◦ Several products with a large proportion of
identical parts.

EPEN - Red EPEN - Black

Red Black
Band Etc. Band Etc.
Cartridge Cartridge

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 2. Bill of Materials
 Multiple versions of Bill Of Materials (BOM)
◦ One product produced from alternative
components or processes, where the
differences are small (usually the quantity of a
component).
◦ BOM 1 = lot size 1 - 100
◦ BOM 2 = lot size 101 – 999
EPEN - Black EPEN - Black

Black Black
Cartridge Band Etc. Etc. Band
Cartridge
(Buy) (Make)
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2. Bill of Material

Finished Good

Semi-finished Raw Semi-finished

goods Material good

Raw Raw Raw Raw

Material Material Material Material

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2. Bill of Materials

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2. Bill of Materials
 BOM in SAP consists of a header section and an
item section.

 Header section includes data that apply to entire

BOM, such as finished material number, plant,
usage, validity, status, and base quantity.

 Usage identifies the purpose for which the BOM

can be used. For example, 1 is for production.

 The BOM is valid from the date specified in the

header.
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2. Bill of Materials
 Items section identifies all materials needed to
make finished goods or semi-finished goods
identified in the header.

 Item category determines how material is used

in the BOM.

 Data for each item are:

◦ material number,
◦ description, quantity, and
◦ item category.
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2. Bill of Materials
BOM MM Item Category
L: Stock item
N: Non-stock item
R: Variable –size item
T: Text item used to include notes and
comments within the BOM. Notes may
explain how to use the material or identify
any unusual assembly requirement.
D: Document item used to include
document such as engineering drawings,
assembly instructions, and photographs.© SAP AG - University Alliances and
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2. Bill of Materials
K: Class item used in variant BOMs to
identify a class or group of items. A
variant BOM is used to create multiple
versions.
M: Intra material, or phantom items used
as a logical grouped set of materials that
could collectively be considered as a
single material. Phantom material is not
an actual material and is mostly
temporarily used during production
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2. Bill of Materials
Where to use BOM?
1) MRP uses BOM to determine dependent
requirements

2) Controlling uses BOM to calculate product costs

3) Production uses BOM to issue the proper

quantities of components and raw materials to
the shop floor

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3. Work Center
 Work center is a location where value-added
work needed to produce a material is carried out.

 A work center can be a machine, a group of

machines, an entire production line, a work area,
or a person or group of people who are
responsible for completing operations.

 A work center is a resource that can be used for

a variety of purposes and for multiple processes.

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3. Work Center
 Work center used to define capacities
◦ Labor
◦ Machine
◦ Output
◦ Emissions
 Capacities used in
◦ Capacity requirements planning (CRP)
 Detailed scheduling
 Costing

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3. Work Center
 Work Center is used:
◦ To be assigned as cost center
◦ To be allocated with Human Resources (HR)
 Qualifications
 Positions
 People

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3. Work Center
 Work Centers have multiple views of:
◦ Basic data
◦ Default values
◦ Capacity overview
◦ Scheduling
◦ Cost center assignment
◦ Technical data

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3. Work Center
3.1 Basic data Tab:
Name, and description of the work center
Person or group of people who are responsible for
completing operations
Task list: a list of operations that are required to
accomplish a task. Operations are the specific tasks that
must be completed, such as drilling, cutting, assembling.
In production, a task list takes the form of a product
routing or a master recipe.
Standard value key: used to assign standard or planned
values for operations, such as setup and execution times.
Companies use these values to calculate costs, execution
times, and capacity requirements.

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3. 1 Work Center: Basic data Tab

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3. Work Center
3.2 Default Values Tab: for operations
performed at the work center.
 Control Keys: specify how an operation or a sub-
operation is scheduling, how costs will be
calculated, and how operations will confirmed
once they are completed in the work center.
 Wage data: used by processes in human capital
management, such as payroll.
 Standard value keys: identify the normal time
elements – the activities that consume time
associated with the work center. Typical time
elements are setup time, machine time, labor
time, and teardown time.
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3.2 Work Center: Default Values Tab

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3. Work Center
3.3 Capacities Tab
 Available capacity defines how much work can be
performed at the work center.
◦ A work center can include more than one resource or
capacity, such as labor and machine.

 Scheduling basis determines the specific capacity

to be utilized for production.

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3.3 Work Center: Capacities Tab

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3. Work Center
3.4 Scheduling Tab

• Capacity category: Machine, Person, Processing

unit
• Execution time:
- Set up formula
- Processing formula
-

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3.4 Work Center: Scheduling Tab

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3. Work Center
3.5 Costing Tab

 A work center is associated with a cost center

which is a container for accumulation of costs.
Costs associated with operations completed in a
work center are calculated using formulas that
utilize the costs and standard values associated
with each activity type, for example,
 setup,
 labor, and
 machine.

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3.5 Work Center: Costing Tab

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3. Work Center
Work Center Control Key:
 Scheduling
 Determine capacity requirements
 Inspection characteristics required
 Confirmation required
 Rework
 Cost
 Schedule external operations – std values

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4. Product Routing
 A list of tasks or operations that must be
performed to convert a material to a part,
component, or product.
 Routing is a sequence of operations which
detail the manufacture of a product
 Routings are used as a template for
production orders and run schedules as
well as a basis for product costing.

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4.Routing
Routing are used to determine:
1) 1) Operations
2) Work centers
3) Material components
4) Production resources and tools
5) Quality Checks

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4. Routing: Operation overview

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4. Routing: Material components

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4. Routing: Operation graphics
overview

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4. Routing Use
Where use routings:
1) Scheduling (dates, times)
2) Costing
3) Capacity planning
4) Production orders

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4. Routing
Standard Alternate Parallel
Sequence Sequence Sequence
Operation 10 Operation 10 Operation 10

Operation 20
Operation 20 Operation 20 Operation 25

Operation 25
Operation 30 Operation 30
Operation 30

Operation 40 Operation 40 Operation 40

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4. Routing
Material Types Allowed in Production:
Multiple material types may be used in a
routing/BOM
Raw materials
Semi-finished product
Trading goods are allowed but not standard
Text or Reference materials common

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4. Display Routing List
 A collective report displaying the available
routings and the material allocations to
operations
 Four General Types
◦ Operations Related
◦ Component Related
◦ Production Resource/Tool (PRT ) Related
◦ General List (Operation Control Ticket)

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4. Routing
Controlling Activities for Production
 Used to perform internal cost allocation,
where activities by a cost center are
measured
◦ Labor time
◦ Machine hours
 Output activities are valued
 Allocation of an activity type is always
made with the allocation cost element
created in activity type planning
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4. Routing
Activity Prices
 Prices (costs) for planned activities
◦ Fixed or Variable
 Labor = $$/hour
 Machine = $/hour
 Overhead = %

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5. PRTs
 Master data for machines, equipments,
tools, documents, and others.

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BPI PP Rules

PP

PP

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MRP Control Parameters
 Environment
◦ Number range
 Master Data
◦ Materials Requirements Planning controllers
◦ Float times
 Planned Orders
◦ Conversion order type
◦ Dependant requirement availability

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MRP Control Parameters

 Planning run
◦ Bill of Material (BOM) selection
◦ External procurement
◦ Planning horizon
 Availability Check
◦ Material
◦ Production Resource/Tool (PRT )
◦ Capacity
 Scheduling Control Parameters

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General Planning Parameters
 Order Type Control Parameters
◦ Types of routings,
◦ BOM’s per order type:
 manually or automatically
◦ Availability checking
 Create Confirmation Parameters
◦ Reservations
◦ Status Updates
 Define Valuation of Goods Received
◦ Moving Average Price Control evaluation

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MM Planning Parameters
 Materials Requirements Planning views
◦ for materials
 Work Scheduling views
◦ for manufactured products

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Production and Planning
Master Data

PEN, Inc.
Pen Inc. Business Module II for
Selling Finished Goods by Production

Pre-Sales Sales Accounts

Delivery Billing
Activity Order Receivable

Availability Goods Issued

Check to Delivery
YES General
In Inventory
Plant or Ledger
Inventory Postings
Warehouse Accounts
Issue Goods
to Production Goods from
NO
Order Production Order

NO
Purchase Purchase Goods Invoice Accounts
Requisition Order Receipt Receipt Payable

Or

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Order Order Confirmation
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Product Group
 Aggregate planning that group together
materials or other product groups
(Product Families)
◦ Manufacturing procedure
◦ Product design
◦ Market niche, etc.
 Proportional Factors (Percentages for
components)
Product Groups
• Multi-level or single-level
– A product group is multi-level if it contains
other product groups
– Lowest level in a product group hierarchy
always consists of materials.
– A product group is single-level if its members
are materials only
– A material or product group can be a member
of more than one owner product group

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Production Group

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PPP Orders
 Planned Order (planning)
◦ A request created in the planning run for a
material in the future (converts to either a
production or purchase order)
 Production Order (execution)
◦ A request or instruction internally to produce a
specific product at a specific time
 Purchase Order (execution)
◦ A request or instruction to a vendor for a
material or service at a specific time
Exercises: (Due Date – 3/19/2014)
212. Create primary cost elements
213. Create secondary cost elements
214. Create cost element groups
215. Create statistical key figure
216. Create controlling document number ranges
217. Define controlling settlement document number ranges
258. Create vender master records centrally
265. Create bill of materials
266. Create person responsible for work center
267. Create work center location
269. Create capacity
270. Create activity type labor
271. Set activity prices
272. Create work center for production
Exercises: (Due Date – 3/19/2014
273. Create finished products routing
274. Display routing list
275A. Create material master for production group
275B. Assign numbers for product group