Fitter Snacker Module 10

1
Fitter Snacker Module 10

• Setup for Production

2
Fitter Snacker Configuration
3
Plant Parameters

• Configuring the SAP R/3 system for production is
  one of the most challenging tasks in R/3
  configuration
• CO will not be configured for production in this
  exercise
• Configuring the CO module to accurately track
  manufacturing costs is extremely challenging
• Requires balance between accurate cost
  allocations and data collection requirements. To
  much detail can make the SAP system difficult to
  use, which means it is not likely to be used
  correctly.

4
Planning vs. Scheduling

• Configuring the production planning (PP) module
  is complicated by the fact that planning and
  scheduling are two separate, but highly related,
  activities.
• Planning, typically implemented via Material
  Requirements Planning (MRP), is used to create
  planned orders and purchase requisitionssuggestio
  ns by the SAP system as to what should be
  produced on the shop floor or procured from
  suppliers (vendors), respectively.

5
Planning vs. Scheduling

• Scheduling is the process of converting planned
  orders into production orders and purchase
  requisitions into purchase orders, then managing
  these orders in detail.

Planned
Scheduled
Planned Order
Production Order
Internal Procurement
External Procurement
Purchase Requisition
Purchase Order
6
Floats

• In both planning and scheduling, floats can be
  added to planning times to provide for a buffer
  against uncertainty. The production lead time
  for a material might be 12 days. Of that 12
  days, 10 days might be the expected production
  time with a float of 2 days added to allow for
  production disruptions.
• Floats are organized in the SAP R/3 system using
  Schedule Margin Keys.

7
Floats

• Four floats are defined in a schedule/margin key
• Opening period Workdays prior to order start.
• Float Before Production Workdays between order
  start and scheduled start.
• Float after Production Workdays between order
  due date and scheduled finish date.
• Release Period Workdays in release period.

8
Planning Parameters

• The MRP 2 view of the material master gives
• In-house production time
• Goods Receipt (GR) processing time
• Schedule Margin Key, which gives
• Opening period
• Float Before Production
• Float After Production
• Release Period

9
Planning Parameters
Material Master MRP 2 View
Schedule Margin Key
10
MRP

• Planning, which is done by the MRP process,
  needs
• In-house production time
• GR processing time
• Opening Period
• The MRP process will determine the order start
  and order finish date, as well as the planned
  opening date
• The planned opening date can be used by planners
  to convert planned orders to production orders by
  groups rather than individually. The MRP planner
  can convert groups of planned orders based on the
  planned opening date.

11
Material Requirements Planning
Demand
GR process
In-house production
Opening Period
Available for Planning
Order Start
Planned Opening Date
Order Finish
12
Example in SAP
Demand (Independent Requirement)
Available for Planning
Order start Order finish Planned opening date
Planned Order Detail
13
Production Order Scheduling

• The float before production and float are used to
  calculated the scheduled start and scheduled
  finish dates when the planned order is converted
  into a production order.
• The float before production is a start float. It
  has two functions
• It can compensate for delays in the staging of
  the material components.
• If there is a capacity bottleneck at the work
  centers involved, the production dates can be
  moved forward in the future. In this way it
  serves as a float for capacity leveling.

14
Production Order Scheduling

• The float after production is a finish float. It
  is used to compensate for unexpected disturbances
  in the production process, so that they do not
  delay the scheduled finish date.
• The system calculates the scheduled start of the
  order by adding the float before production to
  the order start date. It calculates the scheduled
  finish of the order by subtracting the float
  after production from the order finish date.

15
Production Order Scheduling
In-house production
Float before Production
Float after Production
Release Period
Scheduled Start
Scheduled Finish
Scheduled Release
Order Start
Order Finish
16
Production Order Scheduling

• Note how the float before production and float
  after production are used to calculate the
  scheduled start and scheduled finish time. The
  in-house production time specified on the MRP 2
  View of the material master should be the sum of
  the expected processing time plus the float
  before production plus the float after production.

17
Release Period

• The SAP system can be configured so that a
  production order is released as soon as it is
  created. This means that the production facility
  can begin production.
• The SAP system can also be configured to make the
  release of the production order a separate step.
  In this case, the SAP system deducts the number
  of days defined in the release period from the
  scheduled start of the order to determine the
  scheduled release date of the order. This date
  can be used by the production scheduler to
  perform collective release, i.e., release a group
  of production orders based on the scheduled
  release date.

18
Number Ranges

• Every transaction in SAP is numbered. Some
  companies are very interested in the format of
  numbers assigned to different objects. The SAP
  R/3 system gives the user the ability to define
  different number ranges (number of digits,
  numeric or alphanumeric, starting number, etc.)
  and then assign them to different objects.

19
Number Ranges

• In defining plant parameters, number ranges must
  be defined and assigned to
• Planned orders
• Reservations/Dependent requirements
• Purchase requisitions
• MRP lists
• Simulated dependent requirement

20
MRP Controllers

• In the SAP system, the person designated to
  manage the production and inventory levels for a
  material is called the MRP Controller.
• Each material can be assigned to a particular MRP
  Controller.
• The MRP Controller is used to select materials
  for reports like the Stock/requirements list.
• The Stock/requirements list, is an interactive
  transaction for managing the production and
  inventory levels for a material

21
Production Scheduling Profile

• The production scheduling profile determines how
  production scheduling is to be carried out in the
  plant. Settings in the production scheduling
  profile control things like
• When production orders are released for
  production (upon creation, for example).
• When production orders are scheduled (on release,
  for example).

22
Production Scheduler

• Similar to the MRP Controller, a Production
  Scheduler must be defined in the SAP system to
  control detailed production scheduling for a
  material. A production scheduling profile is
  assigned to the Production Scheduler, and the
  Production Schedule is defined in the Work
  Scheduling view of the Material Master.

23
Material Availability Check

• When the MRP system creates a planned order, it
  can also check whether the components and
  sub-assemblies required to complete the planned
  order will be available.

24
Bill of Material

• The Bill of Material (BOM) defines the
  relationship between materials that make up an
  assembled product
• It is the recipe for
• a material

25
Routings

• Routings define the relationship between a
  material and the sequence of workcenters
  (operations) that are required to produce the
  material. Routings determine
• The operations (work steps) to be carried out
  during production of a material
• The activities to be performed in the operations
  as a basis for determining dates (start, finish,
  available, etc.), capacity requirements, and
  costs for a production order
• The use of materials during production
• The use of work centers
• The quality checks to be carried out during
  production

26
BOM and Routing Selection ID

• Different routings and BOMs may be defined for a
  material. These routings may be applicable for
  different production quantities, for example.
  When products change, the BOM and/or routing may
  change, so BOMs and routings can have validity
  periods to define when the changes occur.
• BOM and Routing Selection IDs determine how the
  SAP system will find the correct BOM and routing
  for a production order.

27
BOM and Routing Selection ID

• With the routing selection ID 01, when an order
  is created, the system looks for a routing that
  is valid for the date the production order is
  being created and the lot size of the production
  order. If more than one routing is valid for a
  production order, the SAP system selects the
  first valid routing.
• Similarly, with BOM selection ID 01, the system
  looks for a BOM for the material with the correct
  status (active), lot size and validity date.

28
Creating Production Orders
29
Planning Horizon

• The planning horizon (measured in days)
  determines how far in the future the MRP planning
  process looks to create production orders.
• A production scheduler can structure the MRP
  process to create production orders for all
  demand (forecast demand, customer orders)
  recorded in the system, or only that demand that
  is within the number of days in the planning
  horizon into the future.

30
Production Order Availability Checks

• For standard production order type PP01,
  availability checks can be specified on a
  plant-by-plant basis.
• Availability checks can be performed for
• Materials availability of component materials
• Production Resources and Tools (PRT)
• Production Capacity
• Checks can be specified to be determined when a
  production order is created, a production order
  is released, or both times.

31
Production Order Availability Checks

• If availability checks are specified, then
  production orders cannot be created if the
  availability check is not passed.
• For example, if a material availability check is
  specified at order creation, then a production
  order for a batch of snack bar dough cannot be
  created unless all raw materials (oats, wheat
  germ, cinnamon, etc. are in stock in sufficient
  quantities.

Dough NRGA (lb)
Oats (lb)
Wheat Germ (lb)
Cinnamon (lb)
Nutmeg (lb)
Cloves (lb)
Honey (gal)
Vit/Min Powder (lb)
Carob Chips (lb)
Raisins (lb)
Canola (gal)
32
Forward and Backward Scheduling

• Two basic methods of production order scheduling
  are available
• Forward Scheduling, where a production order is
  scheduled to start immediately and finish as soon
  as possible
• Backward Scheduling, where the scheduling begins
  at the due date and works backward.
• Most students use backward scheduling
• Backward scheduling can lead to problems if there
  is not enough float time in the schedule to
  account for disruptions

33
Backward Scheduling
Planned Finish
Scheduled Finish
Scheduled Start
Planned Start
Today
Float after production
In-house production time
Float before production
34
Forward Scheduling
Planned Finish
Scheduled Finish
Scheduled Start
Today
Planned Start
Float after production
In-house production time
Float before production
35
Material Master Views for Production

• The MRP views in the Material Master define a
  range of parameters for planning.
• There are four MRP views (MRP 1, MRP 2, MRP 3 and
  MRP 4) that contain Production Planning
  Parameters
• Production scheduling parameters are entered in
  the Work Scheduling View

36
MRP 1 View
MRP Type How the material is planned PDUsing
MRP logic VBConsumption-based planning Lot
Size How many units to make in a production
order FXFixed, make the fixed lot
size EXLot-for-lot, make exactly the quantity
required MRP Controller Controller responsible
for this material
37
MRP 2 View
In-house production Number of days required
to produce the material GR processing time
Number of days required to process the
material after production before it can
be used. May allow for quality inspection,
for example. Schedule margin key Set of floats
used.
38
MRP 3 View
Strategy group setting for how
inventory, forecasts and customer orders
affect the MRP planning process. Tot. repl.
lead time Total replenishment lead time. This
is used in the sales order process. If there is
no stock on hand for this material, then
the sales order process will assume the
material will be available in this number of
days if an order is placed. The SAP system
will calculate a promised delivery date using
the total replenishment lead time as well as a
delivery time calculated from other system
settings.
39
Work Scheduling View
Production Scheduler Production
scheduler responsible for this material. Prod.
Sched. Profile Production scheduling profile
for this material. As described previously, the
production scheduler and production
scheduling profile determines the way
production orders are created and managed.
40
MRP Run

• In Single-item, Single-level planning, only the
  material is planned, not other materials that may
  be required to make the material
• For example, if single-item, single-level
  planning is used on the dough material, then only
  the dough is planned and not the materials needed
  to make dough, like oats, wheat germ, etc.

A number of parameters are set that in MRP
planning to determine how planning is to proceed
and what it is to produce (planned orders
vs. purchase requisitions, for example).
41
Stock/Requirements List

• The Stock/requirements list is an interactive
  report that provides a comprehensive set of
  information about a material, including
  inventory, planned orders, forecast demand,
  customer orders.
• In addition, by double-clicking on specific
  items, the user can access a variety of data like
  material masters, detailed stock overviews,
  production order details, etc.
• The Stock/requirements list is the primary tool
  used by planners and schedulers.