PP-PI User Manual (1)

GHAGHRA SUGAR LTD.

PROJECT SMART

P P - P I

U S E R ’ S T R A I N I N G M A N U A L

Production Planning – Process Industry Users’ Manual

Contents

Topic Page no.

OVERVIEW 3

MASTER DATA

Resources BOM Recipe

466

PROCESS ORDER EXECUTION

Creating a Process Order Releasing the Process Order Confirming the Process Order Calculation of overheads Settlement

8

1114151718

STOCK TRANSFERS

SAP Terminology Movement Types Stock Transfer

20

202021

ONLINE INFORMATION AVAILABLE 23

ORDER CANCELLATION

Complete Order Reversal Partial Order Reversal / Modification

26

2628

USEFUL INFORMATION 32

ANNEXURES

I. Resources of all plants.II. Sequence of activities, Principles and Stock

TransfersIII. Number range for process ordersIV. Sap Data – Bus Area, Plants and Mvmt.

TypesV. Master Recipes of all plants

33

3334

3536

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Project SMART Ghaghra Sugar Ltd.Compiled by ISD, DSCL

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OVERVIEW

With the component PP-PI (Production Planning for Process Industries), SAP provides an

integrated planning tool for batch oriented process manufacturing. The following figure

illustrates various functionality offered by PP-PI.


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MASTER DATA

The master data configured in PP-PI chiefly consists of

1. Resources

2. BOMs

3. Recipes

4. Additional Material Master views

MRP-1,

MRP-2,

MRP-3,

MRP-4 and

Work Scheduling

Resources

A resource is used to carry out an operation within a production run. If we want to specify

where an operation is to be carried out, we must enter a resource in this operation. The

resource contains information on the location or area within a plant at which a particular

processing step is carried out. A resource can represent machine or labor resources, for

example, a reactor or an operator.

. Resources contain data used by production such as:

Costing,

Scheduling,

Capacity requirements planning.


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Relationship of Resources to Recipes

A standard task list / recipe consists of a series of work steps. To determine where or with

what resources an operation or activity is to be carried out, we must specify a resource.

To simplify the maintenance of operations, we can enter default values for them in a

resource. These default values are transferred into the operation when the resource is

allocated.

Relationship of Capacity to Resource

The term "capacity" refers to the ability to perform a task. In the R/3 System, capacities

define the output that processing units and people, among other things, can provide within

a certain time period. Several capacities can be assigned to one resource, distinguished

by their categories.

Resource capacities, that is, different capacity categories can include:

· Processing unit capacity

· Labor capacity

· Emissions

· Energy

The list of resources created in each plant is given in Annexure-I.


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Bill of material (BOM)

A bill of material is a formally-structured list for an object (semi-finished or finished

product) which lists all the component parts of the object with the name, reference

number, quantity, and unit of measure of each component.

In PP-PI the BOM is referred to as Material list and forms part of the recipe.

The BOM or material list contains all the material components required during the

production run, together with their quantity specifications.

RECIPE

In the master recipe, we describe the processes to be used for producing materials in our

plant as well as the resources and ingredients required for production.

In the master recipe, we can plan

· all the resources required for the production of a batch,

· all the materials used in the process & by – products,

· the operations and phases required for executing the process.

Just like material master records, bills of material and work centers, the master recipe is

considered as master data. It describes the processing steps required to produce a

material or provide a service in the process industries.

The master recipe is a resource-specific recipe, used for the preliminary planning of

production processes, and contains the specifications for manufacturing one or more

materials in non-discrete manufacturing processes. It contains operations and data on the

primary and secondary resources required, material allocations, operation texts and

standard values for operations. In a master recipe, you can plan the use of:

· Resources


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· Materials

· Capacities

· Costs

· Quantities

required for the process.

In the SAP System, master recipes are used in

· Process Order

· Scheduling

· Capacity Planning

· Costing

The entire list of recipes for all the plants including the Bill of Materials is listed in

Annexure II.


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PROCESS ORDER EXECUTION

In a process order, the process described in a master recipe is copied and adjusted to the

concrete production run.

Creation: For every material to be produced a process order is to be created on a daily

basis specifying the quantity to be produced .The no. of Process orders to be

created correspond to the no. of master recipes configured in the system e.g. for

Boiler House, the following recipes have been configured.

Production of Steam 45 KG

Production of Steam 21 KG

Releasing: The process order is to be released before actual production is carried out.

It is only after the process order is released that the material needed for production is

reserved.

Saving: When the order is saved, the system generates a no. which is to be noted for

further reference.

The number range of process orders for each plant is detailed in Annexure - III.

Confirmation: After actual production, the raw materials consumption / quantity

Produced is confirmed. It is only when the order is confirmed that the system carries

out the goods movements. (Goods issues for raw materials, Goods Receipt for

finished products). Consequently the direct costs get loaded to the product.

Overhead calculation:

The total cost of indirect expenses, indirect labor, and indirect materials (indirect

costs) are termed as overheads. Overhead is allocated to the cost objects by

means of overhead rates that have been defined in CO module.

Settlement: When settlement is carried out, the actual costs incurred for the process

order, are settled to one or more receivers (such as the material to be produced).


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The settlement process automatically generates offsetting entries to credit the

process order.


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Participants’ Notes:


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Step by step procedure for process order Execution

I. Creating a Process Order (COR1)

1. Double click on the menu path Logistics Production-Process Process

Order Process Order Create With Material

You can directly access this screen by typing COR1 in the Command Line Box.

The initial screen for creating a production order appears.

2. Enter the following data:

Material no.: Enter the material no. of the product.

Production Plant: Enter plant code.

Planning Plant: Leave this field empty.

Process order type: Enter Plant code (The order type defined for each plant

is same as the plant code).

Process order: Leave this field empty. Press Enter.


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Type COR1 here and press enter.


Note: Option is available to create a process order by copying an existing order (Enter the

no. of the existing order in the field copy from Process order.

3. Enter the following data:

Total qty: Enter the quantity to be produced.

Start Date: Enter the production start date.

Leave all the remaining fields blank.


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4. Press ENTER. The order Finish Date appears. Verify it.

5. Click on icon. The material list appears.

6. Check material consumption figures. To make any changes proceed as follows:

Enter the revised quantity in the field Requirement quantity.

To add new material, enter the material no., the quantity required, storage

location, item category (L for stockable material. Press ENTER. The

system prompts for the operation/phase to which the material is to be

allocated, enter the operation number.

To delete a material, select it and click the Delete icon.

8. Click arrow to return to the header screen of the process order.

9. Click on the Save icon. The system generates the process order number. Note it

down.



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II. Releasing the Process Order

1. In creation mode, you can release the process order by selecting Process

OrderFunctionsRelease or by clicking on

It is also possible to release the order after saving it. You can directly access this screen

by typing COR5 in the Command Line Box.

Select Logistics Production-Process Process Order Process Order

Release.

1. Enter the following data

Order Type: Enter plant code

Plant: Enter plant code

Process order: Enter the process order number (which was

generated when the order was saved)

Leave all the other fields empty.

2. Click on Execute icon .

3. Select the order and click on Release icon .


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III. Confirming the Order

Select Logistics Production-Process Process Order Confirmation Enter

for Order

1. Process Order: Enter the Process Order no. to be confirmed. The main screen for

confirmation appears.

2. Select whether partial or final confirmation is to be processed by the system.

3. Yield to confirm: Enter production quantity to be confirmed.

4. Enter your Personnel Number.

5. Change the Execution start and Finish execution dates and times.


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6. Enter the Posting Date. This date is the date of production. For e.g: for a production of

6000 QTL of Gomti Sugar M-30 from 23.12.01 6:00 AM to 24.12.01 6:00 AM, the

posting date would be 23.12.01.

7. Click on the Goods Movement icon. The planned consumption

values as per the BOM are displayed.

8. Check consumption quantities and make any changes as required.

9. Click on the Save icon. The confirmation is saved.


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IV .Overhead cost calculation

Select Logistics Production-Process Process Order Period-end closing

Overhead costs Individual Processing

The initial screen for overhead calculation appears. Enter the following data.

Note: Enter Controlling area as 5000, when accessing this screen for the first time.

Order : Number of the process order for which the overheads

are to be loaded.

Period : Financial period

Fiscal year. : Financial year.

Deselect the Test Run field.

Click on the execute icon.

The overheads are calculated and the completion message appears. Click on to

return to main screen.


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V . Settlement


settlement Individual processing.

The initial screen for the settlement appears .Enter the following data .

Order : Number of the process order for which the overheads

are to be loaded.



Processing

type.

: 1 (ie automatic).


Click on the execute icon. The orderis settled and the completion message appears .


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Stock Transfer

BUSINESS AREA

Business areas are primarily used to facilitate external segment reporting across company codes, covering the company's main areas of operation (product lines, branches).

PLANT

A plant is a unit within a company that produces or makes available material or renders services.

STORAGE LOCATION

An organizational unit that allows differentiation of material stocks within a plant.

MOVEMENT TYPES

When you enter a goods movement in the system, you must enter a movement type to differentiate between the various goods movements. A movement type is a three-digit identification key for a goods movement. The following table contains examples of movement types.

Goods movement Movement type

Goods receipt for a purchase order 101Goods issue for a cost center 201Release from quality inspection stock 321

Control Functions of the Movement Type

The movement type has important control functions in Inventory Management.For example, the movement type plays an important role in

o updating of quantity fieldso updating of stock and consumption accountso determining which fields are displayed during entry of a document in the

system

A list of business areas, plants, storage locations and movement types relevant to production planning is given in Annexure V.


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Material produced in one plant through a process order may need to be consumed in another plant (e.g: Power) or sold through another plant (e.g: Bagasse). In some other situations, the stock needs to be moved between storage locations to enable further transactions to be performed on it (e.g: Gomti Sugar)

To enable this cross plant, SAP provides manual goods movements to be done between plants or between storage locations.

Stock Transfer

Select Logistics Materials Management Inventory Management Goods Movement Transfer Posting (Tcode: MB1B)

Enter the following data:

Document date: The date on which the document will be recorded.Posting date: The date of actual transaction

Movement Type: 301 for Inter plant transfer 311 for Inter storage location transfer

Plant: The plant from which material is to be transferredStorage location: The storage location from which material is to be transferred

Click on Enter to open the transaction screen.


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Receiving plant: Plant to which the material is to be transferred. This is missing in case of Storage Location Transfer.

Receiving Sloc.: Storage Location to which material is to be transferred.

Material: Code of the Material that is to be transferred.Quantity: The quantity of the material that is to be transferred.

Click on Save icon to save the document and post the transaction.


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Online Information Available

1. Costs :

The cost of production can be viewed in create/change mode of Process order as

follows:

Goto Costs Analysis

Note: During creation phase, select Process Order Function Determine Costs

Various options for comparison of Planned Vs Actual costs are available.

Note: Before an order is confirmed, through the same menu path, the planned

(Budgeted) costs can be viewed.

3. Production Reports


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From SAP main screen, select Information Systems Logistics

Production. Then select Material. The various reports available are

Dates (Deviations between planned and actual production dates)

Quantities (Planned and actual production quantities)

Product Costs (Planned and actual costs)

Material Usage (Planned and actual material usage)

Note: In these reports, we can view the information at different levels viz.

Company, plant, material, order or date. Standard analyses viz. ABC,

Comparison, Classification etc. are also available.

4. Cost Sheet

This report provides the cost sheet as required by Accounting / MI for all the

semi-finished / finished products. The information includes direct and indirect

costs, compiled in a monthly format.

Information for the previous month and the total record till this date of the year

are also provided for comparison and analysis.

Information System CO Reports Reports Cost Sheet

You could use transaction code ZC01

Enter the following data.

Controlling Area: 5000

Material No.:

Month (Actual): Month for which the material cost is required

Year (Actual): The year for which the report is being run.

Click the execute icon.

5. Quantity Efficiency

This report provides the per ton consumption quantities of all the input material

required to produce the semi-finished / finished product, there by providing an

indication of the process efficiencies.


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Information for the previous month and the total record till this date of the year

are also provided for comparison and analysis.

Information System CO Reports Reports Quantity efficiency

You could use transaction code ZC02.


Controlling Area: 5000

Material No: Material for which the input efficiency is to be calculated

Month (Actual): Month for which the material cost is required

Year (Actual): The year for which the report is being run.

Click the execute icon.



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ORDER REVERSAL

Caution: A wrongly confirmed Process order needs to be cancelled as soon as possible. A delay in the reversal of process orders would result in the price of the semi-finished / finished products going haywire and might lead to a situation where the price becomes negative.

Complete Order cancellation

Before doing order cancellation, reverse the order settlement and overhead calculations.

1. Reversal of Order Settlement:


Settlement Individual processing.

The initial screen for the settlement appears. Enter the following data .

Order : Number of the process order for which the overheads are

to be loaded.



Processing type. : 1 (ie automatic).


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Select Settlement Reverse. The settlement is reversed and the completion

message appears .

Click on to return to main screen.

2. Reversal or Overhead Calculation:


Overhead costs Individual Processing

The initial screen for overhead calculation appears. Enter the following data.

Note: Enter Controlling area as 5000, when accessing this screen for the first time.

Order : Number of the process order for which the overheads are to be

loaded.





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Select Overhead Calculation Reverse. The overheads are calculated and the

completion message appears. Click on to return to main screen.

3. Cancellation of Process Order Confirmation:

Select Logistics Production - Process Process Order Confirmation Cancel (Tcode: CORS)

Enter the Process Order Number that needs to be cancelled.

A warning message appears asking you to confirm your intent to cancel the order. Click on Yes.

The Process Order opens in display mode.

Note: You cannot change / modify any quantities in this procedure.

Click on Goods Movement icon to view the list of all materials and quantities.

Click on Save icon. Enter the text for reason of cancellation and click on to cancel the order.

Note: Open the Process Order Confirmation display (Tcode: XXXX), select the cancellation entry and click on Goods Movement to determine whether all the reversals have been successfully posted.

Partial Order Modification / Cancellation:

In certain cases, it is not necessary to cancel the entire order confirmation. For

these instances, manual goods movement can be employed to produce the results

desired.

Note: Before proceeding with the goods movement, reverse the Process Order

Settlement and Calculation of Overheads as illustrated above.

Case I: Additional Production or Decrease in Production keeping all

the other components constant.

Open the Goods Receipt for Order as follows:


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Logistics Materials Management Inventory Management

Goods Movement Goods Receipt For Order (Tcode: MB31)

Enter the Document Date and the Posting Date as required. The posting

date has to be the same as that of the order confirmation posting date.


Delivery Note: -/-

Doc Header Text: -/-

Movement Type: 101 for Production increase

102 for Production reduction

Plant: Plant of production

Stor. Location: Concerned Storage Location

Click on Enter.

On the details screen, modify the quantity as desired and click on

icon.

Enter the following string in the text field.

-/-/-/xxx

Note: xxx is a string of 3 characters. You can input your own 3 chracter

string to help you identify the transaction later.


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Click on Save icon to post the transaction.

Note: Open the process order in the display mode (Tcode: COR3) to

confirm the change, and then proceed to calculate overhead costs and

order settlement, as illustrated above.


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Case II: Modification or reduction in input components

Open the Good Issue Screen as follows:

Logistics Materials Management Inventory Management Goods Movement Goods Issue (Tcode: MB1A)


Posting Date and Document Date: Date of Production

Movement Type: 261 for additional consumption

262 for reduction in consumption

Plant: Plant of consumption

Storage Location: Concerned Storage Location

Click on Enter.

On the details screen, enter the following

Order: Process Order Number

Material: Input Material Code

Quantity: Modification quantity

Click on Save icon to post the transaction.

Note: Open the process order in the display mode (Tcode: COR3) to

confirm the change, and then proceed to calculate overhead costs and

order settlement, as illustrated above.

Case III: Modification or reduction in by-product production.

Adopt the same method as Case II, changing the movement type to 531 (for

additional production) or 532 (for reduction in production).


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USEFUL INFORMATION

Material Stock: Use this report to verify the total stock available across plants

for a given material.


Environment Stock Stock Overview (Tcode: MMBE)

Stock for posting date: Use this report to

o View opening and closing stock for a particular period

o Total postings per movement type

o Analysis of material documents


Environment Stock Stock for Posting Date (Tcode: MB5B)

Stock Check: During order confirmation, in the goods movement

screen, position cursor in the plant / storage location field for any material and

press F4 button on your keyboard. A window appears listing the stocks

available for that material across plants / storage locations.

Unable to release order: Open the material (Tcode: MM03) in display mode

and check if the MRP views for that material have been maintained.

Production taking more than 24 hours: Open the material in display mode

and check the quantity entered in the work scheduling view is correctly entered

or not.


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ANNEXURE I – RESOURCES

WrkCntr Plnt Cat Resp. Description

BOILER21 GBH1 0008 PBH BOILER FOR 21 KG STEAM

BOILER45 GBH1 0008 PBH BOILER FOR 45 KG STEAM

DMPLANT GBH1 0008 PBH DEMINERALISATION PLANT

MILLING GMIL 0008 PME CANE MILLING

DGSET GPP1 0008 PEL DIESEL GENERATOR SET

TURBINE GPP1 0008 PEL TURBINE FOR POWER PRODUCTION

PROCESS GSPP 0008 PHP SUGAR PROCESS PLANT

PACKING GSSC 0008 PHP SUGAR PACKING


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ANNEXURE II

SEQUENCE OF ACTIVITIES, PRINCIPLES AND STOCK TRANSFERS

Process Orders have to be confirmed in the following order

1. DM Water Production

2. Steam 45 KG Production

3. Steam 21 KG Production

4. Power Internal Generation (Power through DG Set if required)

5. Mixed Juice Production

6. Loose Sugar Production

7. Gomti Sugar Packing (all grades)

Some of the materials are moved across plants for either consumption or sale.

Depending on the business area, the materials have to be either manually moved

across plants or moved manually through stock transfer posting.

Materials for Transfer Posting

Material Sending Plant /Sloc. Reciving Plant / Sloc.

Power Internal GPP1/GPP1 GSPP/GSPP

GMIL/GMIL

Bagasse GMIL/GMIL GBH1/GBAY

Steam 45 KG GBH1/GBH1 GMIL/GMIL

Steam 21 KG GBH1/GBH1 GSPP/GSPP

Steam 1.25 KG GPP1/GPP1 GSPP/GSPP

GBH1/GBH1 GSPP/GSPP

Condensate GSPP/GSPP GBH1/GBH1


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Materials moving automatically through process order

The following materials are directly consumed in the process order from their

original plant of production. To do this, change the plant and the storage location of

the materials in the process order confirmation, goods movement screen. The

movement across plants happens automatically.

Material Order Plant / Sloc. Changed Plant / Sloc.

Power Internal GBH1/GBH1 GPP1/GPP1

Steam 45 KG GPP1/GPP1 GBH1/GBH1

Mixed Juice GSPP/GSPP GMIL/GMIL

Loose Sugar GSSC/GSSC GSPP/GSPP


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ANNEXURE III – PROCESS ORDER NUMBER RANGES

Plant Order Type Number Range

GBH1 GBH1 120000001 - 122000000

GPP1 GPP1 122000001 - 123000000

GMIL GMIL 118000001 - 119000000

GSPP GSPP 119000001 - 120000000

GSSC GSSC 123000001 - 125000000


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ANNEXURE IV – PROCESS ORDER NUMBER RANGES

Business Area Plant

SGPW GBH1

GPP1

SGSU GMIL

GSPP

GSSC

Movement Type Description

101 Goods Receipt

102 Goods Receipt – Reversal

261 Goods Issue for Consumption

262 Goods Issue for Consumption – Reversal

531 Goods Receipt By-product

532 Goods Receipt By-product - Reversal


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Documents

PP-PI User Manual (1)