Embed Size (px)
Citation preview
Planning strategies: Production Planning
Planning strategies are used to define the planning steps that the SAP system is to perform and the sequence in which it is to perform them. Each planning strategy comprises one or more methods that represent the individual planning steps.
A requirement is a quantity of material that is needed on a certain date in a plant. Planning strategies represent the business procedures for the planning of production quantities and dates.
Independent requirements are unrelated to the demand for other materials. Planned independent requirements and sales orders are independent requirements.
A planning strategy specifies any of several possible material planning procedures.
Some planning strategies support a make-to-stock environment. For example, we could plan production / procurement based on a forecast, then fill customer orders from existing stock.
Some planning strategies support a make-to-order environment. For example, we could wait for a customer order before we start production / procurement.
Some planning strategies support a combination of make-to-stock and make-to-order. For example, we could build the subassemblies based on a forecast. Then we would wait for a customer order before assembling them into a finished product.
.
A wide range of production planning strategies are available in the SAP system, offering a large number of different options ranging from pure make-to-order production to make-to-stock production. Depending on the strategy you choose, you can:
· Use sales orders and/or sales forecast values to create the demand program
· Move the stocking level down to the assembly level so that final assembly is triggered by the incoming sales order
· Carry out Demand Management specifically for the assembly
.
Planning strategies can also be combined. This means that you could select the planning strategy Planning with Final Assembly for a finished product, but you can still select a different strategy, such as Planning at Assembly Level for an important assembly in the BOM of this finished product.
The planning strategies available for a material are listed in Customizing. You can assign a planning strategy to a material in the material master record, by means of a strategy group.
Different requirements types are defined for each of the strategies and each requirements type contains important control parameters.
MRP Calculation Configuration
To carry out the material requirements planning (MRP) run (Planning Run) in SAP system, the required settings need to be determine for the MRP calculation.
SPRO → Production → Material Requirements Planning → Planning → MRP Calculation
The following are settings required for MRP calculation:
Read more
Tags: Material Requirements Planning, MRP Calculation, Planning Run
Opening Period for Backward Scheduling
The opening period is the time required by the MRP controller to convert the planned orders into purchase requisitions as an extra time buffer. It is defined in scheduling margin key of material master which is maintained in ‘MRP2‘view. The opening period is only used in backward scheduling.
For the MRP Run with “Create Purchase Requisition in opening period“, which means that the MRP creates preq at the time calculated as follows:
Requested date – planned delivery time = opening period
Until this moment MRP keeps them as planned orders.
.
Opening periods are defined in scheduling margin key configuration by following the path:
SPRO → Production → MRP → Planning → Scheduling and Capacity Parameters → Define Floats (Scheduling Margin Key)
Then assign the scheduling margin key in material master in MRP2 view (MM02 transaction).
Read more
Tags: Backward Scheduling, MRP, Opening Period
Production Version in SAP
Production Version is key which determines the various production techniques according to which a material can be manufactured.
The production version determines the 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
A production version determines which alternative BOM is used together with which task list/master recipe to produce a material or create a master production schedule. Several production versions can be assigned to one material for various validity periods and lot-size ranges.
Read more
Tags: Master Data, production version
Make to Stock Production – Planning with Final Assembly (40)
Planning with Final Assembly strategy is probably the most widely used make-to-stock strategy. It makes sense to use this planning strategy if production quantities can be forecast for the final product.
The main focus of Make to Stock Production – planning with final assembly (strategy 40) is on flexibility in reacting to customers’ demands. Production, including final assembly, is triggered by the planned independent requirements beforethe sales order is received.
Read more
Tags: Make to Stock, Planning Strategies
Requirements Classes in Demand Management
Requirements classes in Demand Management control the creation of planned independent requirements or sales orders and customer requirements.
The following is determined via the requirements type:
Consumption of independent requirements and customer requirements how warehouse stock is taken into account (net or gross requirements planning)
Inventory management and cost consumption (make-to-order or make-to-stock) if the planned order can be released (planning without final assembly)
Requirements distribution (configuration)
The control parameters for the requirements class are stipulated in demand management and cannot be changed.
Read more
Tags: Demand Management, requirements class, requirements type
Make to Stock Production – Production by Lots (30)
Production by Lots strategy is particularly useful for companies that mainly produce for major customers but who also require the option of selling smaller requirements from stock.
In production by lots (strategy 30), the requirements for the finished product are transferred to MRP when a sales order is created. The additional warehouse requirements can also be planned in Demand Management.
For using Production by Lots strategy, the following master data must be maintained for the finished product:
Make to Stock Production – Net Requirements Planning (10)
Net Requirements Planning strategy should be chosen if you want production to be determined by a production plan (Demand Management) and if you do not want sales orders to influence production directly.
The demand program is defined without reference to sales orders that means the sales orders are not relevant to MRP, but can be displayed for information purposes.
.This setting can be made in the “No MRP” field in Customizing for the appropriate requirements class (work step, “Defining Requirements Classes” in Customizing for SD).
Sales orders are covered by warehouse stock. In Sales and Distribution Module, you can carry out the availability check according to ATP logic. Material withdrawals for a sales order reduce this sales order’s quantity.
Read more
Tags: Make to Stock, Planning Strategies
Quota Arrangement in SAP
Quota Arrangement Definition
A quota arrangement is used in APO to apportion product quantities among source or destination locations according to your wishes. You can specify weightings for partner locations, external procurement, and in-house production, according to which the quantities are to be apportioned.
There are two different quota arrangement types:
Read more
Tags: Master Data, Quota Arrangement, SAP APO
Benefits of Production Planning
The overall goals of production planning and the use of planning strategies, is to better serve your customers by reducing:
• Storage costs
• Replenishment lead times
To reach that goal you should collect your materials according to their individual needs. You should create as few groups as possible (for better transparency on the shop floor) and as many as necessary (for flexibility).
Read more
Tags: Planning Strategies, Production Planning, SAP, SAP PP
Converting Planned Orders in SAP SCM
Planned orders are used to plan the in-house production of a material. SAP SCM planned orders already contain all production dates.
SAP SCM planned orders can be transferred to SAP ECC. However, the corresponding SAP ECC planned orders contain no operation dates. Instead, they contain the basic dates between which production should take place.
Read more
Tags: Planned Order, Production Order, Production Planning, SAP ECC, SAP SCM
Define Factory Calendar for Plant
We found some discrepancy between factory calendar and planning calendar in SAP system. In factory calendar setting, it shows we are standing on wk 40 but planning calendar is wk. 41. Is there any effect for this setting?
Where did we set configuration to use planning calendar XXX and how SAP system know we use Factory calendar “XX” for plant?
Read more
Tags: Factory calendar, OX10, Planning, Planning calendar, SAP MEP, T001W
The Concept Of SAP MRP (MRP ERP system)
The key difference between Enterprise Resource Planning (ERP) and Manufacturing Resource Planning (MRP) is tracing the evolution of both functions from material requirements planning.
Material Requirements Planning was developed as a mechanism for manufacturing companies to calculate more precisely which materials they required, at what time and in optimum quantities.
MRP (Material Requirements Planning) is the planning tool in SAP which will look at all aspects of a material and is highly based upon the master data of the material
Functions of Stock/Requirements List
September 22, 2010 by SAP PP · 1 CommentFiled under: Production Planning, SAP MRP, SAP PP
The stock/requirements list offers several display options:
• You can display different dates (the availability date or the goods receipt date, with/without safety time)
• You can work with display filters and selection rules.
• You can work in the period totals display and lots more.
• You define the display accordingly in your personal settings.
Read more
Tags: MRP List, Production Planning, SAP MRP, SAP PP, Stock/Requirements List
Stock/Requirements List and MRP List
The planning situation or planning run result can be evaluated by using the stock/requirements list or MRP list. You can do this using individual access or collective access.
The stock/requirements list is a dynamic list: it contains up-to-date information on the current status of stocks, requirements and receipts. You are able to view any changes immediately.
This can be done as soon as the current stock / requirements list is called up or, upon displaying the current stock / requirements list, the elements are re-read from the database using the “Refresh” function.
Read more
Tags: MRP List, Production Planning, Stock/Requirements List
SAP Message – Number Range object PLAF nearly exhausted
I have faced an issue related to Number ranges for planned orders. for plant XXX the number range assigned is 01 for planned orders. in the present number is 0000000001 to 0899999999 and current # is 815567699.
Here still almost 84432300 numbers are available for further usage. But MRP run fails to create planned orders with Exception 8 “Number range nearly exhausted and Planned orders not created”
What may be the issue?
I expect if it is nearly exhausted it has to throw a Warning message instead of Error Message.Read more
Tags: MRP, Number Range, PLAF, SAP MRP, SAP PP, SAP PP Problem
Evaluations in SAP SCM for DP and SNP
The SAP SCM planning data can be evaluated directly using BW tools. These tools not only evaluate InfoCubes in the internal BW system but also transaction data directly from the live Cache.
To use liveCache reporting, you require a planning area in SAP SCM, an extract structure for the planning area, and InfoSource and an SAP RemoteCube, which provides the interface to the BW front end.
.Using the BW Business Explorer in SAP SCM system, you can evaluate:
• Order data from the SAP liveCache• Aggregated data in InfoCubes
SNP Planning Process – SAP SCM
When the demand plan is released from Demand Planning, planned independent requirements are created for SNP or PP/DS. This step is normally executed in background processing.
A medium-term production and distribution plan is created when you use the SNP heuristic, SNP optimization or Capable-to-Match to execute the SNP run. After the SNP run, check the exception messages (alerts) and solve any problems that exist.
Read more
Tags: Demand Planning, PP/DS, SAP SCM, SNP
SNP in the Planning Process
Demand Planning enables you to forecast material requirements based on historical and univariate forecasting techniques. Demand Planning data is usually period-based and unconstrained. The forecast data is then released to Supply Network Planning (SNP) to create constrained and feasible production and distribution plans.
SAP PP Capacity Planning
Work Center works with infinite capacity in SAP system. After MRP Run, even if a particular Work Center is overloaded, one will be able to Complete Production Order defined at that particular Work Center.
Capacity Evaluation can be used for analysis purpose and capacity leveling can be used manually to allocate the load to different Work Center.
Capacity evaluations are used to analyze capacity loads. One can adjust the analyses for each user according to the planning level, planning horizon and the area of responsibility. Available capacities and capacity requirements can be selected according to various criteria and cumulated using any period split one chooses.Read more
Tags: Capacity Evaluation, capacity leveling, Capacity Planning, SAP PP, Work Center
Capacity Leveling in Production Planning
The capacity leveling process in production planning (PP) depends on the planning level at which it is to be carried out. It is important to distinguish between the following planning levels:
· Long-term planning (LTP) · Material requirements planning (MRP) · Shop floor control (SFC)
The objectives of capacity leveling include:
· Leveling overloads and under loads at work centers· Achieving optimum commitment of machines and production lines· Selection of appropriate resources
Read more
Tags: capacity leveling, Capacity Planning, Production Planning, SAP PP
Supply Network Planning in SAP SCM
The main advantage of Supply Network Planning (SNP) over the SAP ECC MRP planning run or SAP SCM PP/DS is that,
in SNP, the system calculates the sequence of locations to be planned for each product.
If you select a finite planning procedure in SNP, planned orders, stock transfers and purchase requisitions are only created in locations that have sufficient capacity and components.
Read more
Tags: SAP SCM SNP, SNP, Supply Network Planning
Cross-Plant Planning using SAP SCM
Overview of Cross-Plant Planning
Supply Network Planning (SNP) is used for cross-plant planning of the supply and procurement network. It is essential for you to be able to detect bottlenecks in the medium-term horizon so that you can plan their effects on the entire supply chain.
Supply Network Planning (SNP) is based on demands that are entered in the form of sales orders or planned independent requirements. These requirements are covered by in-house production, stock transfers from other plants or by external procurement from external suppliers.
Read more
Tags: PP/DS, SAP SCM PP/DS, SAP SCM SNP, SNP
Prerequisites for Collaborative Planning in SAP SCM
Collaborative Planning can be used in DP or SNP to exchange planning data with customers, subsidiaries or suppliers using your Internet browser. Macros, alerts and notes can be also used in Collaborative Planning. Collaborative Planning is designed for the exchange of small volumes of current data, rather than mass data
Read more
Tags: Collaborative Planning, Demand Planning, SAP SCM
Forecasting Techniques
Future market demand can be forecasted in part on the basis of historical data. Mathematical techniques are used for this purpose.
Standard Forecasting Techniques
• Moving average • Constant model
• Trend model
• Seasonal model
• Exponential smoothing
Planned Orders and Production Orders
A planned order is a procurement proposal that is generated manually or automatically during planning and that is converted into a purchase requisition or a production (manufacturing) order.
Planned orders can be generated in both SAP ECC and SAP SCM system. Planned orders are used to plan the in-house production of a material.
Read more
Tags: Planned Order, Production Order, SAP APO, SAP ECC, SAP SCM
Sales orders and Planned Independent Requirements
Sales orders (customer independent requirements) are created in Sales and Distribution (SAP ECC SD). Sales orders can be entered in material requirements planning directly. This is always required in customer-specific planning. They represent an order made by a customer, whereby a certain quantity of a product is required by a predetermined date. Sales orders represent a requirement in the delivering plant.
Sales orders cannot be created in the SAP SCM system. They are transferred from SAP ECC to SAP SCM system using the CIF interface. Therefore, the sales orders are only created in the SAP ECC system. The ATP check of a sales order can take place globally in SAP SCM (integration with PP/DS is also possible).
Read more
Tags: Independent Requirements, Planned independent requirements, Sales Orders, SAP ECC, SAP SCM
SAP ECC Routings
Routings contain the following steps that are necessary for production:
the relevant operations, their sequence and the work centers in which these operations are to be executed.
SAP ECC routings can be transferred to SAP SCM system in the form of production process models (PPM) or production data structures (PDS). A SAP ECC routing can be defined using the routing group and the group counters.
Read more
Tags: Routing, SAP ECC, SAP SCM, Standard Values, Work Center
SAP Master Data : Customers and Suppliers
Customers and suppliers are defined as business partners in the SAP ECC system. They enable you to control different sales or purchasing processes.
The sales process plays a role in the Vendor Managed Inventory (VMI) scenario in SAP SCM. The customer master record is transferred to SAP SCM system as a corresponding location to plan the transportation of a product to a customer as well.
Read more
Tags: Master Data, SAP ECC, SAP SCM
Transition from Medium-Term to Short-Term PlanningJuly 2, 2010 by SAP PP · Leave a CommentFiled under: Production Planning, SAP Advanced Planning and Optimization, SAP PP, SAP SCM, Supply Network Planning
Converting SNP Planned Orders into PP/DS Planned Orders is the transition from Medium-Term to Short-Term Planning
Supply Network Planning (SNP) is used for medium-term to long-term planning across the entire supply chain (in particular if several plants and distribution centers are available). In this case, demands for a set bucket (one day, for example) is aggregated. When exactly the demand is accumulated in the respective bucket is not yet of any importance. Order sequences do not play a role in SNP either.
Read more
Tags: PP/DS, SAP SCM SNP, SNP, Supply Network Planning
Cross-Plant Planning
Cross-Plant Production ensures that medium to long-term planned independent requirements and sales orders, are covered by means of receipt elements such as stock transfers, planned
orders and purchase requisitions. It is based, for example, on the requirements you have determined in Demand Planning for distribution centers and determines how these requirements are met by distribution centers, production plants and suppliers in your network. Cross-Plant Planning is carried out using the component SAP SCM SNP (Supply Network Planning).
This type of planning can be executed finitely, which means that production resources, storage resources, or transportation resources in your network can be taken into account even at this rough planning stage.
Read more
Tags: PP/DS, SAP SCM PP/DS, SAP SCM SNP, SNP
Demand Management in SAP
Demand management is used to manage independent requirements. The way in which independent requirements behave in material requirements planning (for example, if they affect requirements or if they consume other requirements) can be determined by their requirement type or their planning strategy.
Planned independent requirements are stock requirements that can be derived from a forecast of future demand. In make-to-stock production, you want to initiate the procurement of the materials concerned, without having to wait for concrete sales orders. Using such a procedure, you can shorten delivery times and use forecast planning to load your own production resources as evenly as possible.
Read more
Tags: Demand Management, Demand Planning, Independent Requirements, Sales Orders, SAP ECC, SAP SCM
Standard Task List
Standard Task List describes the worksteps necessary to produce a material or perform an activity without reference to an order.
Essential objects of a task list are header, operations, material component allocations, production resources/tools and inspection characteristics.
Read more
Tags: Task List
Demand Planning Process
The Demand planning cycle:
Past sales order quantities provide the basis for forecasting future demands. In addition, market intelligence or one-off events (such as trade fairs) can be included in the forecast. As a result of the forecast, the demand plan is released as planned independent requirements.
Read more
Tags: Demand Planning, Independent Requirements
Planning Levels in Demand Planning
Demand Planning is a tool for forecasting future demands. Both quantity-based plans and value-based plans can be created. You can choose any planning levels you like. That means future demands can be planned for specific customers, regions or sales organizations. Time bucket profiles can also be freely defined for planning.
Integration between SAP ECC and SAP SCM Planning
The SAP SCM system is a planning tool that cannot be used in isolation (not stand alone system). During planning, SAP SCM relies on data from SAP ECC system such as stocks (inventory) or sales orders, while dates and quantities planned in SAP SCM system are executed in SAP ECC system.
The planning process in SAP SCM is linked to a constant exchange of data between SAP SCM system and SAP ECC system. Planned independent requirements in SAP SCM can result from Demand Planning in SAP SCM itself (release the forecast to SAP SCM Demand Planning), for example. However, these planned independent requirements can also be transferred to SAP ECC system for further planning.
Read more
Tags: SAP ECC, SAP SCM, SAP SCM PP/DS, SAP SCM SNP
Production Planning and Control Process Flow
The Production Planning process flow consists of planning and execution as described.
First of all demand is generated for the products to be produced through demand management. It calculates the quantities to be produced and the exact time for the final assembly.
The data from demand management is transferred to MRP. The data from demand management can come from Customer Sales Order (firmed order) or Planned Order (forecast).
Planning Horizons in Supply Chain Planning
Demand Planning (DP) allows you to forecast customer requirements by making forecasts on the basis of historical consumption data, for example. Demand Planning data is usually period-based and unconstrained. Forecast data is then released as planned independent requirements for SNP and PP/DS.
The production horizon is used to decide which requirements are to be planned in SNP and which are to be planned in PP/DS. The longer the production lead times, the longer the production horizon that must be set on the SNP2 tab page of the product master. Requirements that are not covered by PP/DS within the production horizon are covered by SNP outside the production horizon.
Read more
Tags: Demand Planning, Planning Horizon, PP/DS, SNP
Demand Planning in SAP
Demand Planning Definition
Demand Planning is one of fundamental planning functions in SAP. Demand Planning is included in the area of Supply Chain Planning includes.
Demand planning forecasts future customer requirements using past or historical sales figures. This can be carried out in SAP ECC as part of flexible planning (using standard SOP (Sales and Operations Planning) or in SAP SCM in Demand Planning). Demand planning will be used to deduce planned independent requirements.
Read more
Tags: Demand Planning, SAP ECC, SAP SCM
Demand Planning Concept
Concept of Demand Planning
In Demand Planning, a forecast is carried out based on aggregated historical data. Historical data for this can come from SAP ECC system (for instance from Sales or the LIS (Logistics Information System)) or from SAP BW (Business Warehouse).
Read more
Tags: Demand Planning, SAP BW, SAP ECC, SAP SCM
Supply Chain Master Data in SAP ECC and SAP SCM
The SAP SCM master data objects are usually not identical to those in SAP ECC system. During master data transfer, the relevant SAP ECC master data is mapped to the corresponding planning master data in SAP SCM system.
The SAP ECC system always be the leading system for the master data (master data is only maintained in SAP ECC system). Only specific SAP SCM master data that does not have an equivalent in SAP ECC system is created directly in SAP SCM system.
Read more
Tags: Master Data, SAP ECC, SAP SCM
MRP Type – X0
The materials that are planned in SAP SCM system cannot be re-planned in SAP ECC system. The planning result will be transferred from SAP SCM system directly to SAP ECC system in the form of planned orders. However, dependent requirements must be determined for materials that have a BOM in SAP ECC system (usually as a result of material requirements planning (MRP)).
Read more
Tags: Integration Model, MRP Procedure, MRP Type, SAP ECC, SAP SCM
Planning Methods in SOP
Sales & Operations Planning (SOP) offers two different planning methods:
· Consistent Planning
· Level-by-Level Planning
A planning method must be set for any information structure you wish to plan. The planning method of an information structure is defined in Customizing for Sales & Operations Planning (in Set parameters for info structures and key figures).
Consider your choice of planning method carefully because there are significant differences between them.
Basics of Sales & Operations Planning (SOP)
Basics of Sales & Operations Planning (SOP)
The Sales & Operations Planning (SOP) application is based on information structures. An information structure is a statistics file containing operational data. This can be either planning data you anticipate will happen or actual data that happened. An information structure contains three kinds of information: characteristics, key figures, and a time base. Information structures are used for data evaluation, projection, and analysis in all the logistics information systems.
You can access the SOP function using either the Standard SPO menu or the Flexible Planning menu.
Read more
Tags: Planning Method, SOP
What is Sales & Operations Planning (SOP)?
Sales & Operations Planning (SOP) is a flexible forecasting and planning tool with which sales, production, and other supply chain targets can be set on the basis of historical, existing, and estimated future data. Rough-cut planning can also be carried out to determine the amounts of the capacities and other resources required to meet these targets.
SOP is used to streamline and consolidate your company’s sales and production operations. SOP is particularly suitable for long- and medium-term planning.
Read more
Tags: SOP
Table of Planning Strategy Assignments in SAP PP
In the SAP system, the planning strategies are recorded in Customizing by a combination of requirements types from Demand Management and from sales order management. This combination of requirements types determines, for example, the consumption of planned independent requirements by customer requirements, or how the availability check is to be carried out.
The planning strategies are maintained in Customizing for Demand Management (under Planned Independent Requirements > Planning Strategy > Define strategy).
Read more
Tags: Planning Strategies, Production Planning, SAP PP
Planning with Final Assembly Strategy
Planning with Final Assembly strategy is probably the most widely used make-to-stock strategy. It makes sense to use this planning strategy if you can forecast production quantities for the final product.
The required quantities and dates of the planned independent requirements are contained in the demand program. The demand program is one of the main inputs to the material planning process.
For the planning with final assembly strategy, we enter the planned independent requirements (forecasts) at the finished product level. Sales orders for the finished products are entered in the SAP SD module. Up until the finished product, the production / purchasing process is initiated after running MRP. Sales orders are filled from stock.
Read more
Tags: Make to Stock, Planning Strategies, Production Planning
Strategies for Make-to-Stock Production Process Flow
You can automate the planning stage by passing the results of the forecast, flexible planning, or SOP directly to Demand Management.
In a make-to-stock environment, smoothing of production can be an important feature. This means irregular requirements flow resulting from different customer requirements quantities can be smoothed and simply produced to stock.
Read more
Tags: Make to Stock, Planning Strategies
Planning Strategies for Make-to-Stock Production
A make-to-stock planning strategy means we build stock in anticipation of customer demand. We ship the customer order from our stock of finished goods. SAP has several planning strategies that support make-to-stock planning.
The planning strategies are sometimes referenced by their two-character identifier. Thus, planning with final assembly is also called strategy 40.
These planning strategies are designed for planning procurement (production or purchasing) of components by planning the final products.
Planning Strategies in Production Planning and Control (SAP PP)
Planning strategies are used to define the planning steps that the SAP system is to perform and the sequence in which it is to perform them. Each planning strategy comprises one or more methods that represent the individual planning steps.
A requirement is a quantity of material that is needed on a certain date in a plant. Planning strategies represent the business procedures for the planning of production quantities and dates.
Independent requirements are unrelated to the demand for other materials. Planned independent requirements and sales orders are independent requirements.
Read more
Tags: Independent Requirements, Planning Strategies
PP Costing
A work center is assigned to only one cost center. By the way, several work centers can be assigned to the same cost center.
The activity types used in a work center must be defined in the cost center to which the work center is assigned. The price (cost) assigned to the activity type is defined in the cost center.
Read more
Tags: Activity Type, PP Costing, Work Center
Production Resources Tools
PRTs (Production Resources Tools) are tools that do not belong to a specific location and that are necessary in production. A measuring device or a fixture is an example of a production resource / tool. A PRT gets used by the process, and may be consumed (i.e., “worn out” as in a tool bit), but does not become part of the product being manufactured.
A PRT is required to perform the operation to which it is assigned. Different categories of master records can be used for managing PRTs.
Read more
Tags: Production Resources Tools
Work Center Relationship to Operation
Default data in an operation comes from the work center record. When you create an operation in a routing, you enter the work center where the operation is performed. Data in the work center affects the operation as follows:
Read more
Tags: Work Center
Routings in Production Planning and Control
Routings: Overview
A routing contains the operations to be performed, their sequence and the various work centers involved to manufacture an item.
Routing describes a production process. Routings in production planning specify the sequence of the operations. Routings also contain other production information such as where the work will be performed, the time required to carry out the work, materials and equipment required etc.
Read more
Tags: Production Planning, Routing
Work Center in Production Planning and Control
Work Center Definition: A work center is where an operation or activity is carried out within a plant. Work centers are used in routings, networks, inspection plans and maintenance routings. They can also be used as capacity collectors for statistical evaluations.
A work center can represent anything as general as a geographic location, or as specific as a particular machine within a department in a plant. A work center must be assigned to a plant
BOMs in Production Planning
The result of the design phase is an engineering drawing and a list of the parts required to produce the product. The product and its component list is the bill of materials (BOMs).
The data stored in a bill of material in SAP system serves as a basis for activities such as:
Ÿ • MRPŸ • Work schedulingŸ • ProcurementŸ • Product costing
The difference between Single-Level Bill of Material Multi-Level Bill of Material Structure
Read more
Tags: BOMs, Production Planning
Material Master Data in Production Planning and Control
The information is stored in the material master record in SAP system in one of two forms:
• Data that is descriptive, such as name, size and dimension• Data that controls system functions, such as MRP type
Read more
Tags: Material Master, Material Type, MRP Type
The Major Master Data Objects in SAP PP
Manufacturing Master Data
Master data is a term for main reference files of information such as the material master file or the routing file. Master data records remain in the database for an extended period of time. Master data is shared across application modules in SAP system. and also Master data that is obsolete can be archived.
Read more
Tags: Master Data, SAP PP
Manufacturing Planning and Execution
Manufacturing planning process
Ÿ • The forecast values and requirements from the sales information system and costing/profitability analysis are inputs to the Sales and Operations Planning (SOP) phase in which independent requirements are determined.
Ÿ • Master Schedule items (those items that greatly influence profits or consume critical resources ) are planned. Planning the master schedule items separately leads to a reduction in stock levels and improved delivery performance.
Ÿ • Materials requirements planning (MRP) is the final step in the planning process. The output of MRP is either a planned production order, a purchase requisition, or a planned purchase order.
Read more
Tags: DM, MPS, MRP, SOP
Difference Between MRP vs MPS
The difference between MRP & MPS execution, MPS – MRP Comparison what is the result of MPS run rather than running MRP? and what is MPS and MRP process?
In production planning, decisions are made that influence production plans. Demand management, for example, stores the independent requirements used by master production scheduling (MPS) and Material Requirements Planning (MRP).
Read more
Tags: MPS, MRP, Production Planning
Material Requirements Planning (SAP MRP)
Material requirements planning (MRP) represents the first step in Production Planning and Detailed Scheduling. Generally, this step is executed in the short-tem horizon in the plant.
In material requirements planning (SAP MRP: Material Requirements Planning), the procurement dates for the required assemblies and components are determined based on the requirement dates for the finished product (for example, a sales order).
