PP Component Short Description

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1 PP Component Short Description HELP.CACOMPPP Release 4.6B

2 SAP AG Copyright Copyright 2000 SAP AG. All rights reserved. No part of this brochure may be reproduced or transmitted in any form or for any purpose without the express permission of SAP AG. The information contained herein may be changed without prior notice. Some software products marketed by SAP AG and its distributors contain proprietary software components of other software vendors. Microsoft, WINDOWS, NT, EXCEL, Word and SQL Server are registered trademarks of Microsoft Corporation. IBM, DB2, OS/2, DB2/6000, Parallel Sysplex, MVS/ESA, RS/6000, AIX, S/390, AS/400, OS/390, and OS/400 are registered trademarks of IBM Corporation. ORACLE is a registered trademark of ORACLE Corporation, California, USA. INFORMIX -OnLine for SAP and Informix Dynamic Server TM are registered trademarks of Informix Software Incorporated. UNIX, X/Open, OSF/1, and Motif are registered trademarks of The Open Group. HTML, DHTML, XML, XHTML are trademarks or registered trademarks of W3C, World Wide Web Consortium, Laboratory for Computer Science NE43-358, Massachusetts Institute of Technology, 545 Technology Square, Cambridge, MA JAVA is a registered trademark of Sun Microsystems, Inc., 901 San Antonio Road, Palo Alto, CA USA. JAVASCRIPT is a registered trademark of Sun Microsystems, Inc., used under license for technology invented and implemented by Netscape. SAP, SAP Logo, mysap.com, mysap.com Marketplace, mysap.com Workplace, mysap.com Business Scenarios, mysap.com Application Hosting, WebFlow, R/2, R/3, RIVA, ABAP, SAP Business Workflow, SAP EarlyWatch, SAP ArchiveLink, BAPI, SAPPHIRE, Management Cockpit, SEM, are trademarks or registered trademarks of SAP AG in Germany and in several other countries all over the world. All other products mentioned are trademarks or registered trademarks of their respective companies. 2 December 1999

3 SAP AG Icons Icon Meaning Caution Example Note Recommendation Syntax Tip December

4 SAP AG Contents...6 Production Planning and Control... 7 Basic Data... 8 Bills of Material (see LO-MD-BOM)... 9 Work Center Routing CAPP-based Calculation of Standard Values Production Resources/Tools Sales & Operations Planning Master Data Sales Plan Production Plan Distribution Requirements Planning Production Planning Material Forecast Demand Management Master Production Scheduling Long-Term Planning (Simulation) Capacity Planning Scheduling Capacity Loads Capacity Evaluation Capacity Leveling Material Requirements Planning Basic Data Planning Execution Procurement Proposal Planning Evaluation Production Orders Order Planning Header / Operation...37 Components Production Resources/Tools Trigger points Order Processing Order Close Kanban Control Cycle - Kanban Kanban Control Kanban Board Creation of Master Data Evaluations Repetitive Manufacturing Run Schedule Header Planning for Repetitive Manufacturing Planning Run Schedule Quantities December 1999

5 SAP AG Planning Creation of Master Data Evaluation Assembly Processing In Repetitive Manufacturing In Production by Lots Production Planning for Process Industries Basic Data Resources Master Recipe Process Order Order Execution Order Closing Capacity Planning Process Management Process Message Control Recipe PI Sheet Process Data Documentation Process Data Evaluation Plant Data Collection Work Order Time Recording Work Order Time Recording (PM Order) Personnel Time Recording Project Time Recording Information System Reporting Planning Interface to Logistics Information Library (LIL) Data Collection Early Warning System December

6 SAP AG 6 December 1999

7 SAP AG Production Planning and Control Production Planning and Control The PP System is a component of the R/3 System and is a highly integrated application software covering all business functions in production planning and control. The performance of the complete system is achieved by integrated modules that each cover a logical group of functions. Interfaces exist between the PP System and the following areas: Sales and Distribution (SD), Materials Management (MM) Controlling (CO) Project System (PS) and Personnel Planning (PD). All modules are real-time applications, that is, quantities and values are saved directly meaning that all users of the system have access to the same data which is always up-to-date. Selection Criteria The functions in the Production Planning and Control system provide a far-reaching solution for planning the demand program (type and quantity of product) as well as production. The planning of production includes procurement, warehousing and the transport of materials and intermediate products. December

8 SAP AG Basic Data Basic Data This component comprises the basic administrative and technical functions of Sales & Operations Planning (SOP). Selection criteria If you intend to use Sales & Operations Planning, you must select this component. 8 December 1999

9 SAP AG Bills of Material (see LO-MD-BOM) Bills of Material (see LO-MD-BOM) A bill of material is a complete, formally structured list of the components that make up an object. It contains the name, quantity, and unit of measure of each component. Different forms of bills of material are used wherever an end product is assembled from several component parts or materials. Depending on the industry sector, they may also be referred to as recipes, lists of ingredients, and so on. Bills of material (BOMs) contain important master data for a number of organizational areas within a company, such as: materials planning staging of materials for production product costing plant maintenance In the SAP System, you can create the following bills of material: material BOM equipment BOM functional location BOM document structure sales order BOM Selection criteria You require this component if you want to use the SAP R/3 System to plan production, or if you want to maintain bills of material for technical objects in plant maintenance. You also require this component if you want to organize comprehensive documents in the form of document structures. December

10 SAP AG Work Center Work Center A work center is an organizational unit where an operation is carried out, therefore, producing an output of work. You assign a work center to a cost center for a specific time period. With a work center, you can specify which machines or people are positioned in the operations. determine costs, capacities and dates for the operations. Selection criteria If you choose these components, you can assign qualifications, positions and people from the Personnel Planning and Development module (PD) to a work center. 10 December 1999

11 SAP AG Routing Routing A routing describes a sequence of work steps and resources required to produce a material without reference to an order. Routings are used as a reference for production orders. You can use the following routing types in Production Planning and Control: routings and reference operation sets rate routings and reference rate routings You enter planned times for the execution of individual operations (standard values) in a routing. These standard values are the basis for lead time scheduling, product costing and capacity planning. You use these values in a production order and can change them there, if necessary. Selection criteria You need to select this component if you want to plan production in your company using the R/3 System. In addition to the routings in the PP module, the following are further task list types in the R/3 System: master recipes (PP-PI) networks (PS) December

12 SAP AG CAPP-based Calculation of Standard Values CAPP-based Calculation of Standard Values The calculation of standard values with CAPP (CAPP = computer aided process planning) provides machine support for work scheduling to determine standard values in a routing. Formulas and tables are used for the calculation. Selection criteria If you choose this component, you can have the system calculate standard values in a routing. 12 December 1999

13 SAP AG Production Resources/Tools Production Resources/Tools Production resources/tools (PRT) are moveable operating resources used to form objects, such as tools and fixtures, or used to check size, structure and efficiency, such as measurement and inspection devices. A production resource or tool can also be a document, such as a technical drawing or an NC program. You assign production resources/tools to operations in task lists or orders where they are required. Routing Operation 10 PRT 1 Operation 20 PRT 2 Operation 30 Selection criteria You must select this component if you require production resources/tools to carry out operations. You can monitor the usage of production resources/tools as well as control their requirements planning. December

14 SAP AG Sales & Operations Planning Sales & Operations Planning 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/or 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 supports both the high-level planning of complex planning hierarchies and the detailed planning of finished products. Thus, either a top-down or a bottom-up approach to planning is possible. The system can be configured either such that target key figures set at one organizational level are distributed automatically and consistently to all the other organizational levels in the hierarchy (for example, to all distribution channels, materials, and plants in a particular sales organization), or such that each level is planned separately. Sales & Operations Planning is made up of two elements: standard SOP and flexible planning. Standard SOP comes largely preconfigured with the system. Flexible planning offers multiple options for customized configuration. Planning in standard SOP is based on product group hierarchies and is always carried out level by level. Flexible planning is carried out on hierarchies containing any chosen organizational levels (for example, sales organization, distribution channel, material, and plant). Moreover, in flexible planning the content and layout of planning screens can be defined by the users. Selection criteria This component focuses on standard SOP. To run SOP in a distributed environment, select also Application Link Enabling (ALE). 14 December 1999

15 SAP AG Master Data Master Data This component comprises the master data you need as the basis for production planning for process industries. Master data is data that remains unchanged over an extended period of time and is used in the same manner for similar objects. The following table contains the PP-PI specific master data together with the components corresponding to it in discrete manufacturing. Master data in PP-PI Corresponding component in discrete manufacturing Resource Master recipe with material list Work center Routing and bill of material (BOM) Selection criteria Choose this component if you want to use PP-PI in your company. December

16 SAP AG Sales Plan Sales Plan Using this component, you set sales targets for product groups or finished products. Planned sales quantities can be passed on to Demand Management. Selection criteria If you intend to use the standard SOP element of Sales & Operations Planning, select this component. 16 December 1999

17 SAP AG Production Plan Production Plan Using this component, you set the production quantities that are required to meet your sales targets. Planned production quantities can be passed on to Demand Management. Selection criteria If you intend to use the standard SOP element of Sales & Operations Planning, select this component. December

18 SAP AG Distribution Requirements Planning Distribution Requirements Planning See Distribution Requirements Planning [Ext.] 18 December 1999

19 SAP AG Production Planning Production Planning In Master Planning, the production quantities are defined for a certain interval. December

20 SAP AG Material Forecast Material Forecast The Material Forecast uses material consumption to calculate forecast values that can be transferred to demand management or consumption-based MRP. They are used as the basis for creating the demand program and/or for calculating the reorder point and safety stock automatically. Selection Criteria Choosing this component allows you to execute the forecast either as a mass forecast or as an individual forecast. When maintaining planned independent requirements or the material master record, you can also execute individual forecasts interactively for the material processed. If required, you can change the result of the forecast in a graphic. 20 December 1999

21 SAP AG Demand Management Demand Management In Demand Management, the future requirement quantities and dates are defined for finished products and important assemblies. The strategy to be used for planning and producing/procuring a certain finished product is also determined in demand management. The result is the demand program. Selection Criteria If you select this component, you can either create the demand program manually and/or you can process preceding planning results (from sales planning, SOP, material forecast). December

22 SAP AG Master Production Scheduling Master Production Scheduling In Master Production Scheduling, those parts or products which greatly influence company profits or which take up critical resources are marked as master schedule items and are planned with extra attention. Master schedule items may be finished products, assemblies, or even raw materials. The SAP System supports a series of functions for master production scheduling to make it possible to plan master schedule items carefully and, therefore, precisely. These functions include: separate planning run for master schedule items planning time fence and fixing logic interactive planning special evaluation layout for master schedule items Selection Criteria If you select this component, you can achieve a more exact capacity planning for critical parts and thus, you can improve the quality of planning. 22 December 1999

23 SAP AG Long-Term Planning (Simulation) Long-Term Planning (Simulation) In Long-Term Planning, various versions of the demand program can be created which are planned in MRP and in capacity planning to calculate their effects (in simulative mode) on the future master plan. The system calculates capacity requirements, activity requirements for the cost centers and the number of purchased parts required. The basis for long-term planning is provided by the operative PP basic data (including bills of materials, routings and work centers). Selection Criteria If you select this component, you can create an annual planning or a rolling quartarly planning, to preview the future stock and requirements situation. This means that you can make early decisions on whether other work centers are going to have to be used to cope with bottlenecks, or whether additional machinery will have to be purchased to reach the sales target. Long-term planning can also be used to gain an overview of future requirements for materials that practically plan themselves in the oprerative process, such as reorder point materials, bulk material or KANBAN materials. The results of long-term planning can also be used by the purchasing department. They use the information on the future requirements quantities to estimate future orders. This provides them with a basis for negotiating delivery schedules and contracts with vendors. December

24 SAP AG Capacity Planning Capacity Planning Purpose The economic use of resources is an objective for many areas of a company. The component Capacity Planning is available in the R/3 System for this purpose. Capacity planning supports planning in all its phases: long-term rough-cut planning medium-term planning short-term detailed planning Integration Capacity planning is integrated in the following applications: Sales and Distribution (SD) Production Planning and Control (PP) Sales & Operations Planning (PP-SOP) Requirements Planning (Master Production Scheduling and Material Requirements Planning PP-MRP/MPS) Long-term Planning (PP-LTP) Shop Floor Control (PP - SFC) Repetitive Manufacturing (PP-REM) Process Industries (PP-PI) Plant Maintenance (PM) and Service Management (SM) Project System (PS) Capacity planning can be flexibly adjusted to planning demands and to the area of responsibility within the company. Features Capacity planning comprises the following partial components: Capacity evaluation In the capacity evaluation, available capacity and capacity requirements are determined and compared with each other in lists or graphics. Capacity leveling The objectives of capacity leveling are: Optimal capacity commitment Selection of appropriate resources 24 December 1999

25 SAP AG Capacity Planning In most applications, you can use two types of planning table (graphical and tabular versions) to display the capacity situation and to carry out capacity leveling. In some applications such as Repetitive Manufacturing (PP-REM) or Sales and Operations Planning (PP-SOP), there are application-specific planning tables for capacity leveling. December

26 SAP AG Scheduling Scheduling Scheduling is carried out in capacity planning using standard times from task lists. You can choose between lead time scheduling, which does not take the capacity loads into account, and finite scheduling, which does. Selection Criteria You should choose this component if you work with orders, for example, in production. You can determine the capacity requirements for orders. 26 December 1999

27 SAP AG Capacity Loads Capacity Loads The capacity load is a result of a comparison between the requirements of a certain capacity and its available capacity. Capacity requirements are expressed as a percentage of available capacity. Selection Criteria You must select this component if you want to use capacity planning because it contains the necessary settings and the master data for this area. December

28 SAP AG Capacity Evaluation Capacity Evaluation Purpose You can use capacity evaluations to analyze capacity loads in your company. You 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 you choose. You can use work center hierarchies to cumulate the available capacities of production work centers and their capacity requirements to superior planning work centers. Integration Capacity evaluation is a part of Capacity Planning. Features You can execute various evaluations in the capacity evaluation online or in batch. You get an overview of the load situation of selected work centers using the standard overview [Ext.]. You can use the detailed capacity list [Ext.] to display the orders that cause the capacity requirements at work centers. You can use the variable overview [Ext.] to display any capacity planning data you wish. The various evaluations can be displayed both in tabular and graphical form. The SAP Gantt diagram gives you an overview of the dates of the operations at a work center. From all of the evaluation lists, you can either display or change work centers and capacities [Ext.]. From the detailed capacity list you can also process orders and confirmations [Ext.] and display stock/requirements lists [Ext.]. You can use the EXCEL interface to export the evaluation lists and continue working with Microsoft Excel [Ext.]. Constraints In the capacity evaluation you can display the planned capacity requirements and the remaining capacity requirements. You cannot display the following capacity requirements in the capacity evaluation. Actual capacity requirements Split capacity requirements that are assigned to individual capacities of a capacity SOP requirements You can display this data in the extended evaluation [Ext.]. However, there are no change functions available in the extended evaluation; for example changing work centers and orders. 28 December 1999

29 SAP AG Capacity Leveling Capacity Leveling Purpose Capacity leveling is used in various areas of a company and at different planning levels with the following objectives: High capacity load Adherence to dates Short lead times Low stocks The objectives of capacity leveling include: Leveling overloads and underloads at work centers Achieving optimum commitment of machines and production lines Selecting appropriate resources December

30 SAP AG Material Requirements Planning Material Requirements Planning The main function of Material Requirements Planning is to guarantee material availability, that is, it is used to procure or produce the requirement quantities on time both for internal purposes and for sales and distribution. This process involves the monitoring of stocks and, in particular, the automatic creation of order proposals for purchasing and production. Materials planning can be split into two main procedures, consumption-based planning and MRP. Multi-plant planning is also possible. Selection Criteria If you select this component, you can make sure that the correct material is available for production in sufficient quantity and on time. To make this possible, materials planning aims at optimizing the following: service level minimizing costs and capital lockup 30 December 1999

31 SAP AG Basic Data Basic Data The Basic Data for material requirements planning includes, for example: MRP controller lot-sizing procedure special procurement types Selection criteria You must select this component as you cannot carry out material requirements planning without any basic data. December

32 SAP AG Planning Execution Planning Execution Execution of material requirements planning for all materials or assemblies whose requirement or stock situation has changed since the last planning run. You can carry out the planning run at two levels - either for a particular plant, with all relevant materials being planned at the corresponding plant (total planning), or for a single material or product group (single-item planning). Selection Criteria The selection of this component is necessary to be able to carry out the planning run. 32 December 1999

33 SAP AG Procurement Proposal Procurement Proposal The Procurement Proposals specify the quantities and dates that are automatically calculated in MRP or that are manually created by the MRP controller which are required to cover future requirements. Procurement proposals can be created for internal procurement (in-house production) and for external procurement. Selection Criteria The selection of this component is necessary to be able to carry out planning. December

34 SAP AG Planning Evaluation Planning Evaluation This component provides the following evaluations for checking the planning results: MRP list (also as collective display for mass evaluations) current stock/requirements list (also as collective display for mass evaluations) comparison of the MRP list and the stock/requirements list planning situation (self-configurable evaluation) planning result (self-configurable evaluation) comparison of the planning situation and the planning result pegged requirements order report Selection Criteria This component is necessary for monitoring and processing the planning results. In addition to the standard evaluations, you can also create and perform self-configurable evaluations. 34 December 1999

35 Capacity SAP AG Production Orders Production Orders A production order specifies what is to be produced the production dates where the capacity load is to be dispatched the production costs Production/Assembly Scheduling Order Times Control data Texts N BOM RTG Op. 10 PRTs Materials Quality assurance Start date Finish date t Capacity Planning Costing Work center Material costs Op. 10 Op. 20 Machine t Labor t Material overhead costs Production costs Production overheads As soon as a planned order or an internal request exists from previous planning levels (MRP), shop floor control adds order-specific data (such as dates and quantities) to the already existent information. Selection criteria If you want to use production orders, you need to select this component. December

36 SAP AG Order Planning Order Planning This component deals with the planning stages in the production order. The following business transactions are carried out before the order is released: A routing is selected, a bill of material is exploded, reservations are generated, planned costs are determined, capacity requirements are generated for work centers, and nonstock components and externally processed operations are created for purchase requisitions. Scheduling: When a production orders is created it is automatically scheduled, using the basic order dates as starting points. You can specify that the order should automatically be rescheduled if changes occur in the order that are relevant to scheduled. You can also manually trigger scheduling at any time. Selection criteria If you want to use production orders, you need to select this component. 36 December 1999

37 SAP AG Header / Operation Header / Operation This component contains the main order elements of a order. The most important production data needs to be specified during order creation. If this data already exists in the form of master data, it is automatically copied into the production order. The header data of the material includes the material number of the material to be produced the order quantity the basic start / finish date (depending on scheduling type) the expected scrap quantity the order priority the order status the plant in which the material is to be produced. The operation overview screen includes the operation and sub-operation numbers, which specify the sequence in which operations are to be processed the work centers at which the operations are to be carried out the current status of the operations the start and finish dates of the operations the control key of the operations a short description of the operations. Selection criteria If you want to use production orders, you need to select this component. December

38 SAP AG Components Components Components are materials that are required in production. They need to be specified in the production order. If they have already been maintained as master data, they are automatically copied into the order. In a production order, components have to be allocated to an operation. All components, that have not been allocated to an operation in the routing, are automatically allocated to the first operation during order creation. You can, however, reallocate components from one operation to another. Selection criteria If you want to use production orders, you need to select this component. 38 December 1999

39 SAP AG Production Resources/Tools Production Resources/Tools Production resources/tools (PRT) are moveable operating resources used to form objects, such as tools and fixtures, or used to check size, structure and efficiency, such as measurement and inspection devices. A production resource or tool can also be a document, such as a technical drawing or an NC program. You assign production resources/tools to operations in task lists or orders where they are required. Routing Operation 10 PRT 1 Operation 20 PRT 2 Operation 30 Selection criteria You must select this component if you require production resources/tools to carry out operations. You can monitor the usage of production resources/tools as well as control their requirements planning. December

40 SAP AG Trigger points Trigger points A trigger point is an object that can be allocated to an operation in order to trigger a function (for ex. release / insert operation(s), create orders, trigger workflow tasks). It can trigger a function if a particular status is (de-)activated in a particular operation manually when the operation is confirmed Selection criteria This is an optional component. You should, however, select it if you want to automate the release of operations in predefined intervals trigger rework during completion confirmation use workflow tasks If you want to use production orders, you need to select this component. 40 December 1999

41 SAP AG Order Processing Order Processing This component deals with the execution stage of the production order. The following business transactions are carried out after the order is released:: Shop floor papers: You can print the documents required for carrying out the production order, such as: operation control ticket job ticket pick list time ticket confirmation slip Goods movements: In order to start producing a material, you need to first take the required material components out of stock. You deliver the finished product back into stock and post a corresponding goods receipt. It is, however, possible to post goods movements automatically when you confirm an operation or an order (backflushing of components, automatic goods receipt of finished product). Confirmation: Confirmation of actual order data, such as scrap, yield, processing time, etc. Selection criteria If you want to use production orders, you need to select this component. December

42 SAP AG Order Close Order Close This component comprises the following steps carried out during process order execution: Process order settlement Archiving of process orders Selection criteria Choose this component if you want to use PP-PI in your company. To be able to settle a process order, you must choose the special functions for process manufacturing within Product Cost Controlling. 42 December 1999

43 SAP AG Kanban Kanban KANBAN production control is a technique for controlling production and material flow based on a modular backward linking of operations in production. The replenishment or production of a material is only triggered when a production level actually requires the material. KANBAN can also be implemented for organizing internal or external production according to the supermarket principle. Selection Criteria The aim of KANBAN is to create a self-regulating environment controlling production and procurement, and to reduce the manual administrative effort required in production as far as possible, paving the way for shorter lead times and zero inventories. The success of KANBAN depends on the following conditions: A relatively constant consumption level of the kanban part within a period that is greater than the replenishment lead time of the kanban. Minimum setup times and reliable production along with many small lots within a short period. December

44 SAP AG Control Cycle - Kanban Control Cycle - Kanban The kanban control cycle defines the relationship between the supply source and the demand source. The control cycle defines the replenishment strategy assigned, the number and contents of the circulating containers, the kanban (card) print, the delivery address and so on. Selection Criteria If you use KANBAN production control, you must select this component as it plays a central role in the KANBAN philosophy. 44 December 1999

45 SAP AG Kanban Control Kanban Control KANBAN is controlled by the kanban signal which triggers the status change for the containers. The most important status changes are setting the containers to full and empty. The kanban signal is usually triggered by scanning a bar code. When a container is empty, the system receives the necessary data for the control cycle and for replenishment via the bar code and automatically carries out the postings required to trigger replenishment. When a container is full, the goods receipts for the replenishment are posted automatically depending on your settings. Selection Criteria The selection of this component is required for triggering the signal for replenishment or for passing on information on the container status within the control cycle. December

46 SAP AG Kanban Board Kanban Board The Kanban Board displays the control cycles sorted according to the supply areas to which they are allocated. For each control cycle, all the containers in circulation are displayed with their respective status. Selection Criteria If you select this component, the supply source and the demand source receives a detailed overview of the container circulation. The kanban board can also be used for triggering the kanban signal. 46 December 1999

47 SAP AG Creation of Master Data Creation of Master Data The Backflushing transaction for repetitive manufacturing with production cost collector provides the following options: posting goods receipts with automatic reduction of the open master plan posting goods issues posting actual costs to production cost collector updating statistics The following options are available for backflushing in repetitive manufacturing without a production cost collector: posting goods receipts posting goods issues confirmations December

48 SAP AG Evaluations Evaluations Evaluations in repetitive manufacturing provide the following information: pull list reporting point overview (goods in process) component reprocessing list document log CO reports Statistics and analyses can also be accessed from the Logistics Information System: goods receipt statistics reporting point statistics material consumption analysis production costs analysis 48 December 1999

49 SAP AG Repetitive Manufacturing Repetitive Manufacturing The SAP Repetitive Manufacturing component can be used for the purposes of production planning and control within a repetitive manufacturing environment. This procedure supports production types that flow through production over longer periods. Repetitive manufacturing has the following characteristics: master plans created and processed based on periods and quantities and released automatically for production easy-to-use backflushing functions based on quantities dispatching to production lines combined capacity and quantity planning range of coverages (days supply) multi-order material provision no firmed material allocations period-based Controlling December

50 SAP AG Run Schedule Header Run Schedule Header A Run Schedule Header must be created before a material can be planned in repetitive manufacturing. It is used for planning and settling finished and semi-finished products that are produced repetitively over a longer period. The run schedule header contains no production quantities nor does it contain any dates. Both quantities and dates are planned using run schedule quantities assigned to the run schedule header. RS headers can be created with or without a production cost collector. Costs can be settled: via a production cost collector per run schedule header via a production cost collector that is created for several run schedule headers via production orders 50 December 1999

51 SAP AG Planning for Repetitive Manufacturing Planning for Repetitive Manufacturing The basis of the planning activities in Repetitive Manufacturing is the master plan. This plan is displayed in the form of a periodic planning table providing an overview of all run schedule headers, materials, product groups as well as production lines and groups of production lines. All important information such as capacities, available quantities and so on are displayed in this planning table which can be created automatically in the planning run and processed interactively. December

52 SAP AG Planning Run Schedule Quantities Planning Run Schedule Quantities The Run Schedule Quantities specify the production quantities for a run schedule header that are produced in a certain period. Actual data and cost settlement data are collected by the production cost collector. Planning with run schedule quantities is especially useful if: a product is produced repetitively over a long period of time the same routings and therefore the same work centers are used for the production of a product family (production organized by production lines) 52 December 1999

53 SAP AG Planning Planning In this type of planning, partial orders are created for certain dates, depending on the run schedule header. These partial orders correspond to the standard planned orders that have to be converted into production orders. The planning procedure and also cost settlement is identical to that used for production orders. Planning with partial orders is especially usefull when: producing complex, multi-level products each with a separate routing which are to be settled separately. each production lot is to be settled separately using a production order This process corresponds to the usual PPC procedure with production orders, supplemented by additional functionality. December

54 SAP AG Creation of Master Data Creation of Master Data The Backflushing function provides the means for automatically posting goods receipts for the product as well as backflushing the goods issue for the components. Cost accounting for KANBAN (in-house production) can be controlled differently depending on the replenishment element used to control the control cycles. In the process with run schedule quantities, the costs are collected at a so-called production cost collector and can be settled periodically by product costing. In manual KANBAN, the costs are also collected at a cost collector. In replenishment control with production orders, the costs are assigned to the production order. 54 December 1999

55 SAP AG Evaluation Evaluation This component provides the following tools for evaluating KANBAN: error display plant overview evaluations from other areas Using the error display, you can display all errors and you can delete the corresponding error messages. The plant overview provides you with an overview of the production progress of each control cycle either per plant or per plant plus certain selection criteria. Selection Criteria The selection of this component is necessary if you want to carry out evaluations for KANBAN production. December

56 SAP AG Assembly Processing Assembly Processing Assembly Processing makes it possible to quote more reliable dates to the customer in make-toorder production. Since, in make-to-order production, the finished product is not normally held in stock, assembly processing allows you to automatically check the availability and capacity at component level when processing sales orders. For this purpose, the system automatically creates a procurement element (such as a planned order) when creating a sales order. Due to the close cooperation between SD and PP, any changes coming from production to either dates or quantities are immediately reflected in the sales order. Vice versa, any changes made to the sales order are also automatically passed on to production. Selection Criteria This component is especially useful for make-to-order production (with and without variant configuration), for example, the production of PCs or automobiles. Here, repetitive manufacturing, production by lots and projects are supported. 56 December 1999

57 SAP AG In Repetitive Manufacturing In Repetitive Manufacturing In assembly processing with Repetitive Manufacturing, production control is carried out using the planning and control tools from the repetitive manufacturing module. A planned order is created when creating the sales order. This means that you can use repetitive manufacturing for maketo-order production whereby the backflush of the run schedule header is posted directly to the sales order. Selection Criteria Assembly processing in repetitive manufacturing is especially useful when several of the following criteria are applicable: If the production process of the finished product is simple with clear production processes. If the production of the assemblies is carried out in a constant flow through the production lines. If simple routings are used, or if assembly can be carried out without routings. If the components are provided at the production lines on an anonymous basis. The components are procured using Kanban production techniques, consumption-based planning, or the planning strategy, assembly planning, for example. If the production control effort is to be kept to a minimum and backflushing is to be simplified. December

58 SAP AG In Production by Lots In Production by Lots In assembly processing for Production by Lots, production control is carried out using production orders. When creating a sales order, a production order is created automatically (or a planned order is created that can be converted into a production order). Selection Criteria This component is especially useful for complex production procedures. The process with production orders means that you can carry out production control: using collective orders using the status management of the production order using various business operations at operation level It makes sense to implement assembly processing with production orders in the following areas: process flow production manufacture of co-products production with parallel production lines 58 December 1999

59 SAP AG Production Planning for Process Industries Production Planning for Process Industries The PP-PI component (Production Planning for Process Industries) is an integrated instrument for the planning and execution of batch-oriented process manufacturing. PP-PI is primarily designed for the chemical, pharmaceutical, food and beverage industries, as well as the process-oriented electronics industry. PP-PI supports: the integrated planning of production, waste disposal, and transportation within a plant the integration of plants within the company: vertically by means of a continuous flow of information, ranging from central business applications to process control horizontally by the coordination of planning between production plants, recycling, waste disposal facilities, and production laboratories. Selection criteria Choose this component, if you want to use your system for the planning and execution of batchoriented process manufacturing. When choosing this component, you not only decide for the PP- PI specific subcomponents but also for the higher-level planning components PP-PI uses in common with discrete manufacturing. Sales & Operations Planning Master Planning Material Requirements Planning In some areas, PP-PI uses data provided by other components. You also need to select these components if you want to use PP-PI. These areas are: Material master (Logistics - General, Basic Data) and materials management for the planning of input materials required and products to be manufactured Batches (Logistics - General) for batch-oriented manufacturing Additional optional functions and possibilities of integration are available if you select the corresponding components from the following areas together with PP-PI: Classification System (Cross-Application Functions) enabling you to search or select classified data more easily Engineering Change Management (Logistics - General) enabling you to create a change history as well as to implement a release procedure Variant Configuration (Logistics - General) enabling you to create different production variants using maximum master formulas (recipes) Quality Management enabling you to carry out in-process inspections Controlling enabling you to carry out order settlement December

60 SAP AG Basic Data Basic Data This component contains the master data you require as a basis for production planning in discrete manufacturing. This is data that remains unchanged over a longer period and is always used in the same manner. Selection criteria You need to select this component if you want to plan production in your company using the R/3 System. 60 December 1999

61 SAP AG Resources Resources Resources are objects and persons involved in the production process which have capacities allocated to them. Resources are allocated to operations and phases in the master recipe and process order. They are used as the basis for the calculation of costs, capacity requirements, and dates. The resource corresponds to the work center in discrete manufacturing. However, for process manufacturing you can also create a resource network to specify the sequence in which the resources are to be used. Selection criteria Choose this component if you want to use PP-PI in your company. December

62 SAP AG Master Recipe Master Recipe Master recipes describe the company-specific application of manufacturing procedures without relating to a specific order. They are mainly used for the manufacture of products. However, they can also describe the clean-out or changeover of a processing unit. The data scope of the master recipe in the R/3 System was defined in accordance with the international standards of the European Batch Forum (EBF), the norms working committee for measuring and control techniques in the chemical industry (NAMUR) as well as in accordance with standard S88 of the Instrument Society of America (ISA). From the planning view, the data contains the following information: the individual steps in the production process (operations and phases) in the sequence in which they are to be carried out as well as planned durations and other activities (standard values) the resources required for the individual steps in the production process the ingredients required for production (material list) instructions for in-process quality inspections (for example, inspection characteristics) In addition, the master recipe contains parameters relevant to the control of the production process (process instructions). These parameters are specified during process planning and have to be communicated to process control. The master recipe is used as the basis for the process order. Selection criteria Choose this component if you want to use PP-PI in your company. 62 December 1999

63 SAP AG Process Order Process Order Process orders are the main element used for the detailed planning and execution of process manufacturing. A process order describes the production of materials in a production run or the output of a service. It is generated from the master recipe and contains all the information specified during process planning. You use a process order to plan the quantities, dates, and resources of the manufacturing process, to control process order execution, and to define rules for the account assignment and settlement of the costs incurred. Selection criteria Choose this component if you want to use PP-PI in your company. December

64 SAP AG Order Execution Order Execution This component comprises the central processing steps involved in process order execution. Process planning comprising Process order creation selecting a master recipe creating reservations or copying them from planned orders calculating planned costs creating capacity requirements for the resources Scheduling Starting with the basic order dates, the system automatically schedules the process order when you create it. In addition, it can later be rescheduled automatically or manually whenever changes relevant to scheduling have been made. Release of process order Process order execution and process management Creating and downloading control recipes (optional) Printing shop floor documents Carrying out material withdrawals Withdrawing material components required in the manufacturing process in the form of goods issues from the warehouse. Recording confirmations Carrying out in-process quality inspections (optional) Posting goods receipts Delivering the manufactured product to the warehouse by posting a goods receipt. Selection criteria Choose this component if you want to use PP-PI in your company. You only create control recipes during process order execution if you want to use PI sheets and/or process control systems. In this case, you must also select the corresponding components from Process Management. If you also want to carry out in-process quality inspections for your orders, you must select the relevant components from Quality Management. 64 December 1999

65 SAP AG Order Closing Order Closing When a production order is settled, the actual costs incurred for the order are settled to one or more receiver cost-objects (for example, to the account for the material produced to a sales order). Offsetting entries are generated automatically to credit the production order. Selection criteria If you want to use production orders, you need to select this component. December

66 SAP AG Capacity Planning Capacity Planning Capacity planning is an instrument used to determine the available capacity and capacity requirements and to carry out capacity leveling. Capacity planning supports long-term planning medium-term planning detailed planning 66 December 1999

67 SAP AG Process Management Process Management Process management is the interface between the PP-PI component (Production Planning for Process Industries) and process control. Due to its flexible structure, it can be linked to automated, partially automated and manually operated lines. Process management comprises the following functions: receiving control recipes with process instructions from released process orders transferring control recipes to the corresponding line operators or process control systems editing process instructions in natural language (PI sheet) so that they can be displayed and maintained on the screen by the line operator receiving, checking, and transferring process messages with actual process data manual entry of process messages December