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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 before
the 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
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
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 Comment
Filed 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 Planning July 2, 2010 by SAP PP ・ Leave a Comment
Filed 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 periodbased
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 • MRP
Ÿ • Work scheduling
Ÿ • Procurement
Ÿ • Product costing The difference between Single-Level Bill of Material Multi-Level Bill of Material Structure
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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
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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.
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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.
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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).
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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).
