Production Planning and Control with SAP ERP
2nd Edition
Published on 28. June 2016
Book
Hardback
940 pages
978-1-4932-1430-3 (ISBN)
Description
Step up your SAP PP game! Learn how to configure SAP ERP Production Planning for discrete, process, and repetitive manufacturing and master BOM status definitions, process message characteristics, and master data. Dive into SAP PP workflows and use Process Management, release production orders, and create planning tables. Covering everything from S&OP and MRP to SAP Demand Management and the Early Warning System, this book will help you get your production process to maximum efficiency!ConfigurationGet step-by-step instructions for configuring SAP PP, from master data shared by all manufacturing types to specific settings and control keys for discrete, process, and repetitive manufacturing.Workflow ToolsLearn to use sales and operations planning, material requirements planning, SAP Demand Management, and long-term planning throughout your production workflow.Reporting and OptimizationGet more out of your production system with capacity requirements planning, co-products, by-products, and more. Then evaluate and monitor your system using built-in reports and the Early Warning System.Highlights:Discrete, process, and repetitive manufacturing ConfigurationXStepsSales and operations planning (S&OP)Material requirements planning (MRP)SAP Demand ManagementLong-term planning (LTP)Special procurement typesCapacity requirements planning (CRP)Digital signaturesEarly Warning System (EWS)
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Jawad Akhtar
Production Planning and Control with SAP ERP
Book
10/2013
1st Edition
SAP PRESS
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Author
Jawad Akhtar is an SAP logistics and supply chain management expert with a focus on business sales and delivery. He earned his chemical engineering degree from Missouri University of Science and Technology in the United States. He has 20 years of professional experience, 14 of which have been spent working with SAP systems. He has experience working on several large-scale, end-to-end SAP project implementation lifecycles, including rollouts. He works with SAP clients to help them identify root causes of business issues and address those with the appropriate SAP products and change management strategies. He now focuses on next-generation SAP products such as SAP S/4HANA, SAP IBP, SAP Ariba, and SAP Hybris. Akhtar is also a technical advisor to SAPexperts, an ASUG speaker, and a contributor to SearchSAP, where his "Ask the Expert" column shares real-life lessons and best practices gleaned from SAP implementations, ways to avoid common project pitfalls, and features of various SAP products that solve key business issues.
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Content
... Acknowledgments ... 25
1 ... Production Planning Core Concepts ... 27
1 ... Introduction ... 29
... Goals of This Book ... 29
... Target Audience ... 30
... Structure and Content ... 31
... Organizational Structures in SAP ERP ... 35
... Breaking Down the Structure into Units ... 35
... Production Planning in SAP ERP ... 44
... Product Costing ... 59
... SAP Calendar ... 61
... Summary ... 66
... Configuration Specifics for Manufacturing Types ... 67
... Configuration Basics of Discrete Manufacturing ... 69
3.1 ... Material Master ... 70
3.2 ... Bill of Materials ... 72
3.3 ... Work Center ... 78
3.4 ... Routing ... 87
3.5 ... Production Order Creation ... 89
3.6 ... Order Type-Dependent Plant Parameters ... 94
3.7 ... Production Scheduling Profile ... 99
3.8 ... Default Values for the Generation of Operations ... 101
3.9 ... Availability Check ... 102
3.10 ... Stock and Batch Determination ... 108
3.11 ... Scheduling ... 108
3.12 ... Reduction Strategy ... 114
3.13 ... Confirmation ... 115
3.14 ... Reason for Variances ... 124
3.15 ... Trigger Points ... 125
3.16 ... Define Print Control ... 126
3.17 ... Background Jobs ... 127
3.18 ... Process Integration ... 128
3.19 ... Summary ... 128
... Configuration Basics of Process Manufacturing ... 129
4.1 ... Master Data in Process Industries ... 130
4.2 ... Order Type-Dependent Parameters ... 134
4.3 ... Production Scheduling Profile ... 136
4.4 ... Process Management ... 138
4.5 ... Process Messages ... 143
4.6 ... Process Instruction Category ... 150
4.7 ... Control Recipe/Process Instruction Sheets ... 164
4.8 ... Background Jobs ... 169
4.9 ... Process Management Configuration: At a Glance ... 171
4.10 ... Process Management: Configuration and Implementation Roadmap ... 172
4.11 ... Process Manufacturing Cockpit ... 174
4.12 ... Summary ... 177
... Configuration Basics of Repetitive Manufacturing ... 179
5.1 ... Repetitive Manufacturing Profile ... 180
5.2 ... Scheduling Planned Orders ... 192
5.3 ... Display ... 193
5.4 ... Material Staging ... 195
5.5 ... Global Settings for Confirmation and the Logistics Information System ... 196
5.6 ... Operational Methods Sheet ... 197
5.7 ... Summary ... 198
3 ... Production Planning Workflow by Production Type ... 199
... Production Planning for Discrete Manufacturing ... 201
6.1 ... Process Overview ... 202
6.2 ... Master Data ... 203
6.3 ... Production Order Management ... 243
6.4 ... Release Production Order ... 265
6.5 ... Printing ... 268
6.6 ... Material Withdrawal ... 271
6.7 ... Confirmation ... 278
6.8 ... Goods Receipt ... 285
6.9 ... Postprocessing ... 288
6.10 ... Settlement and Completion ... 292
6.11 ... Production Order Batch Traceability Using Work in Process Batches ... 293
6.12 ... Additional Functions and Information Systems ... 304
6.13 ... Summary ... 309
... Production Planning for Process Industries ... 311
7.1 ... Process Manufacturing Overview ... 312
7.2 ... Master Data in Process Manufacturing ... 314
7.3 ... Process Management ... 327
7.4 ... Process Order Execution ... 341
7.5 ... Process Management in Action ... 343
7.6 ... Execution Steps (XSteps) ... 354
7.7 ... Process Manufacturing Cockpit ... 367
7.8 ... Process Messages Evaluation ... 368
7.9 ... Miscellaneous Cross-Manufacturing Topics ... 370
7.10 ... Summary ... 371
... Production Planning for Repetitive Manufacturing ... 373
8.1 ... Overview ... 374
8.2 ... Repetitive Manufacturing Master Data ... 377
8.3 ... Material Requirements Planning in Repetitive Manufacturing ... 400
8.4 ... Collective Availability Check ... 404
8.5 ... Operational Method Sheet ... 405
8.6 ... Planning Table in Repetitive Manufacturing ... 406
8.7 ... Material Staging ... 414
8.8 ... Production List ... 419
8.9 ... Confirmation ... 421
8.10 ... Reversals and Scrap ... 430
8.11 ... Collective Confirmation ... 435
8.12 ... Costing Activities (Cost Object Controlling) ... 436
8.13 ... Reporting ... 437
8.14 ... Summary ... 438
4 ... Production Planning Workflow Tools ... 441
... Sales and Operations Planning ... 443
9.1 ... Standard Sales and Operations Planning ... 444
9.2 ... Flexible Planning ... 467
9.3 ... Maintaining Version Management ... 492
9.4 ... Forecasting ... 495
9.5 ... Rough-Cut Planning Profile ... 502
9.6 ... Events ... 507
9.7 ... Mass Processing in Sales and Operations Planning ... 513
9.8 ... Standard Analysis in Flexible Planning ... 517
9.9 ... Summary ... 520
... SAP Demand Management ... 521
10.1 ... Planning Strategy ... 522
10.2 ... Planned Independent Requirements ... 531
10.3 ... Customer Independent Requirements ... 536
10.4 ... Summary ... 544
... Material Requirements Planning ... 545
11.1 ... Process Overview ... 546
11.2 ... Scrap ... 561
11.3 ... Safety Stock ... 564
11.4 ... Material Requirements Planning Procedures ... 567
11.5 ... Consumption-Based Planning ... 572
11.6 ... Forecast-Based Consumption Planning ... 577
11.7 ... Types of Planning Runs ... 581
11.8 ... Scheduling ... 585
11.9 ... Procurement Proposals ... 591
11.10 ... Executing Material Requirements Planning ... 597
11.11 ... Configuration Settings for Material Requirements Planning ... 605
11.12 ... Material Requirements Planning Run Analysis ... 610
11.13 ... Planning Calendar ... 621
11.14 ... Material Requirements Planning Areas ... 623
11.15 ... Summary ... 631
... Long-Term Planning ... 633
12.1 ... Long-Term Planning Master Data and Planning Data ... 634
12.2 ... Long-Term Planning: Business Process ... 639
12.3 ... Further Options in Long-Term Planning ... 647
12.4 ... Evaluate Information Systems for Long-Term Planning ... 654
12.5 ... Summary ... 659
5 ... Optimizing Production Planning ... 661
... Special Procurement Types ... 663
13.1 ... Overview ... 664
13.2 ... Phantom Assembly ... 666
13.3 ... Direct Production ... 667
13.4 ... Direct Procurement ... 672
13.5 ... Stock Transfer (Interplant Transfer) ... 676
13.6 ... Withdrawal from Alternate Plant ... 679
13.7 ... Production in Alternate Plant ... 681
13.8 ... Subcontracting ... 683
13.9 ... Consignment ... 688
13.10 ... Pipeline Material ... 691
13.11 ... Summary ... 691
... Capacity Requirements Planning ... 693
14.1 ... Process Overview ... 694
14.2 ... Capacity Requirements and Capacity Evaluation ... 696
14.3 ... Finite Scheduling ... 711
14.4 ... Dispatching ... 713
14.5 ... Capacity Planning Table ... 730
14.6 ... Summary ... 737
... Classification ... 739
15.1 ... Classification System ... 740
15.2 ... Assigning the Material Class to the Material Master ... 746
15.3 ... Finding Objects in Classes ... 749
15.4 ... Assigning an Equipment Class to Equipment ... 751
15.5 ... Summary ... 754
... Co-Products and By-Products in Production Processes ... 755
16.1 ... Check in Material Master ... 757
16.2 ... Bill of Materials ... 760
16.3 ... Process Order ... 762
16.4 ... Goods Issue ... 764
16.5 ... Confirmation ... 766
16.6 ... Goods Receipt ... 768
16.7 ... Documented Goods Movement ... 770
16.8 ... Cost Analysis ... 771
16.9 ... Summary ... 773
... Digital Signature ... 775
17.1 ... Configuration Steps to Set Up a Digital Signature ... 776
17.2 ... Digital Signature in Action ... 783
17.3 ... Digital Signature Logs ... 788
17.4 ... Application of Digital Signature in SAP ERP Components ... 789
17.5 ... Summary ... 791
6 ... Monitoring and Evaluation ... 793
... Early Warning System ... 795
18.1 ... Overview ... 795
18.2 ... Exceptions ... 797
18.3 ... Set Up Periodic Analysis ... 804
18.4 ... Schedule an Early Warning System ... 806
18.5 ... Early Warning System in Action ... 808
18.6 ... Exception Analysis ... 811
18.7 ... Summary ... 814
... Reporting in SAP ... 815
19.1 ... The Basics of Reporting ... 816
19.2 ... Order Information System ... 818
19.3 ... Missing Parts Information System ... 833
19.4 ... Standard Analysis Reports ... 834
19.5 ... Data Browser ... 843
19.6 ... QuickViewer ... 848
19.7 ... SAP Query ... 852
19.8 ... Assign a Transaction Code to a Query ... 855
19.9 ... Summary ... 856
... Integration of Production Planning with Logistics Functions ... 857
20.1 ... Integration Prerequisites ... 858
20.2 ... Integration Aspects of Production Planning with Quality Management ... 860
20.3 ... Integration of Production Planning with Materials Management ... 875
20.4 ... Integration of Production Planning with Sales and Distribution (Make-to-Order Production) ... 882
20.5 ... Integration of Production Planning with Sales and Distribution (Assembly Processing) ... 886
20.6 ... Integration of Production Planning with Project System (Engineer-to-Order Production) ... 888
20.7 ... Integration of Production Planning with Plant Maintenance ... 894
20.8 ... Integration of Production Planning with SAP Manufacturing Execution ... 894
20.9 ... Integration of Production Planning with SAP Manufacturing Integration and Intelligence ... 895
20.10 ... Summary ... 896
... Appendices ... 897
A ... Comparison Table of Production Types ... 899
B ... Glossary ... 905
C ... The Author ... 925
... Index ... 927
1 ... Production Planning Core Concepts ... 27
1 ... Introduction ... 29
... Goals of This Book ... 29
... Target Audience ... 30
... Structure and Content ... 31
... Organizational Structures in SAP ERP ... 35
... Breaking Down the Structure into Units ... 35
... Production Planning in SAP ERP ... 44
... Product Costing ... 59
... SAP Calendar ... 61
... Summary ... 66
... Configuration Specifics for Manufacturing Types ... 67
... Configuration Basics of Discrete Manufacturing ... 69
3.1 ... Material Master ... 70
3.2 ... Bill of Materials ... 72
3.3 ... Work Center ... 78
3.4 ... Routing ... 87
3.5 ... Production Order Creation ... 89
3.6 ... Order Type-Dependent Plant Parameters ... 94
3.7 ... Production Scheduling Profile ... 99
3.8 ... Default Values for the Generation of Operations ... 101
3.9 ... Availability Check ... 102
3.10 ... Stock and Batch Determination ... 108
3.11 ... Scheduling ... 108
3.12 ... Reduction Strategy ... 114
3.13 ... Confirmation ... 115
3.14 ... Reason for Variances ... 124
3.15 ... Trigger Points ... 125
3.16 ... Define Print Control ... 126
3.17 ... Background Jobs ... 127
3.18 ... Process Integration ... 128
3.19 ... Summary ... 128
... Configuration Basics of Process Manufacturing ... 129
4.1 ... Master Data in Process Industries ... 130
4.2 ... Order Type-Dependent Parameters ... 134
4.3 ... Production Scheduling Profile ... 136
4.4 ... Process Management ... 138
4.5 ... Process Messages ... 143
4.6 ... Process Instruction Category ... 150
4.7 ... Control Recipe/Process Instruction Sheets ... 164
4.8 ... Background Jobs ... 169
4.9 ... Process Management Configuration: At a Glance ... 171
4.10 ... Process Management: Configuration and Implementation Roadmap ... 172
4.11 ... Process Manufacturing Cockpit ... 174
4.12 ... Summary ... 177
... Configuration Basics of Repetitive Manufacturing ... 179
5.1 ... Repetitive Manufacturing Profile ... 180
5.2 ... Scheduling Planned Orders ... 192
5.3 ... Display ... 193
5.4 ... Material Staging ... 195
5.5 ... Global Settings for Confirmation and the Logistics Information System ... 196
5.6 ... Operational Methods Sheet ... 197
5.7 ... Summary ... 198
3 ... Production Planning Workflow by Production Type ... 199
... Production Planning for Discrete Manufacturing ... 201
6.1 ... Process Overview ... 202
6.2 ... Master Data ... 203
6.3 ... Production Order Management ... 243
6.4 ... Release Production Order ... 265
6.5 ... Printing ... 268
6.6 ... Material Withdrawal ... 271
6.7 ... Confirmation ... 278
6.8 ... Goods Receipt ... 285
6.9 ... Postprocessing ... 288
6.10 ... Settlement and Completion ... 292
6.11 ... Production Order Batch Traceability Using Work in Process Batches ... 293
6.12 ... Additional Functions and Information Systems ... 304
6.13 ... Summary ... 309
... Production Planning for Process Industries ... 311
7.1 ... Process Manufacturing Overview ... 312
7.2 ... Master Data in Process Manufacturing ... 314
7.3 ... Process Management ... 327
7.4 ... Process Order Execution ... 341
7.5 ... Process Management in Action ... 343
7.6 ... Execution Steps (XSteps) ... 354
7.7 ... Process Manufacturing Cockpit ... 367
7.8 ... Process Messages Evaluation ... 368
7.9 ... Miscellaneous Cross-Manufacturing Topics ... 370
7.10 ... Summary ... 371
... Production Planning for Repetitive Manufacturing ... 373
8.1 ... Overview ... 374
8.2 ... Repetitive Manufacturing Master Data ... 377
8.3 ... Material Requirements Planning in Repetitive Manufacturing ... 400
8.4 ... Collective Availability Check ... 404
8.5 ... Operational Method Sheet ... 405
8.6 ... Planning Table in Repetitive Manufacturing ... 406
8.7 ... Material Staging ... 414
8.8 ... Production List ... 419
8.9 ... Confirmation ... 421
8.10 ... Reversals and Scrap ... 430
8.11 ... Collective Confirmation ... 435
8.12 ... Costing Activities (Cost Object Controlling) ... 436
8.13 ... Reporting ... 437
8.14 ... Summary ... 438
4 ... Production Planning Workflow Tools ... 441
... Sales and Operations Planning ... 443
9.1 ... Standard Sales and Operations Planning ... 444
9.2 ... Flexible Planning ... 467
9.3 ... Maintaining Version Management ... 492
9.4 ... Forecasting ... 495
9.5 ... Rough-Cut Planning Profile ... 502
9.6 ... Events ... 507
9.7 ... Mass Processing in Sales and Operations Planning ... 513
9.8 ... Standard Analysis in Flexible Planning ... 517
9.9 ... Summary ... 520
... SAP Demand Management ... 521
10.1 ... Planning Strategy ... 522
10.2 ... Planned Independent Requirements ... 531
10.3 ... Customer Independent Requirements ... 536
10.4 ... Summary ... 544
... Material Requirements Planning ... 545
11.1 ... Process Overview ... 546
11.2 ... Scrap ... 561
11.3 ... Safety Stock ... 564
11.4 ... Material Requirements Planning Procedures ... 567
11.5 ... Consumption-Based Planning ... 572
11.6 ... Forecast-Based Consumption Planning ... 577
11.7 ... Types of Planning Runs ... 581
11.8 ... Scheduling ... 585
11.9 ... Procurement Proposals ... 591
11.10 ... Executing Material Requirements Planning ... 597
11.11 ... Configuration Settings for Material Requirements Planning ... 605
11.12 ... Material Requirements Planning Run Analysis ... 610
11.13 ... Planning Calendar ... 621
11.14 ... Material Requirements Planning Areas ... 623
11.15 ... Summary ... 631
... Long-Term Planning ... 633
12.1 ... Long-Term Planning Master Data and Planning Data ... 634
12.2 ... Long-Term Planning: Business Process ... 639
12.3 ... Further Options in Long-Term Planning ... 647
12.4 ... Evaluate Information Systems for Long-Term Planning ... 654
12.5 ... Summary ... 659
5 ... Optimizing Production Planning ... 661
... Special Procurement Types ... 663
13.1 ... Overview ... 664
13.2 ... Phantom Assembly ... 666
13.3 ... Direct Production ... 667
13.4 ... Direct Procurement ... 672
13.5 ... Stock Transfer (Interplant Transfer) ... 676
13.6 ... Withdrawal from Alternate Plant ... 679
13.7 ... Production in Alternate Plant ... 681
13.8 ... Subcontracting ... 683
13.9 ... Consignment ... 688
13.10 ... Pipeline Material ... 691
13.11 ... Summary ... 691
... Capacity Requirements Planning ... 693
14.1 ... Process Overview ... 694
14.2 ... Capacity Requirements and Capacity Evaluation ... 696
14.3 ... Finite Scheduling ... 711
14.4 ... Dispatching ... 713
14.5 ... Capacity Planning Table ... 730
14.6 ... Summary ... 737
... Classification ... 739
15.1 ... Classification System ... 740
15.2 ... Assigning the Material Class to the Material Master ... 746
15.3 ... Finding Objects in Classes ... 749
15.4 ... Assigning an Equipment Class to Equipment ... 751
15.5 ... Summary ... 754
... Co-Products and By-Products in Production Processes ... 755
16.1 ... Check in Material Master ... 757
16.2 ... Bill of Materials ... 760
16.3 ... Process Order ... 762
16.4 ... Goods Issue ... 764
16.5 ... Confirmation ... 766
16.6 ... Goods Receipt ... 768
16.7 ... Documented Goods Movement ... 770
16.8 ... Cost Analysis ... 771
16.9 ... Summary ... 773
... Digital Signature ... 775
17.1 ... Configuration Steps to Set Up a Digital Signature ... 776
17.2 ... Digital Signature in Action ... 783
17.3 ... Digital Signature Logs ... 788
17.4 ... Application of Digital Signature in SAP ERP Components ... 789
17.5 ... Summary ... 791
6 ... Monitoring and Evaluation ... 793
... Early Warning System ... 795
18.1 ... Overview ... 795
18.2 ... Exceptions ... 797
18.3 ... Set Up Periodic Analysis ... 804
18.4 ... Schedule an Early Warning System ... 806
18.5 ... Early Warning System in Action ... 808
18.6 ... Exception Analysis ... 811
18.7 ... Summary ... 814
... Reporting in SAP ... 815
19.1 ... The Basics of Reporting ... 816
19.2 ... Order Information System ... 818
19.3 ... Missing Parts Information System ... 833
19.4 ... Standard Analysis Reports ... 834
19.5 ... Data Browser ... 843
19.6 ... QuickViewer ... 848
19.7 ... SAP Query ... 852
19.8 ... Assign a Transaction Code to a Query ... 855
19.9 ... Summary ... 856
... Integration of Production Planning with Logistics Functions ... 857
20.1 ... Integration Prerequisites ... 858
20.2 ... Integration Aspects of Production Planning with Quality Management ... 860
20.3 ... Integration of Production Planning with Materials Management ... 875
20.4 ... Integration of Production Planning with Sales and Distribution (Make-to-Order Production) ... 882
20.5 ... Integration of Production Planning with Sales and Distribution (Assembly Processing) ... 886
20.6 ... Integration of Production Planning with Project System (Engineer-to-Order Production) ... 888
20.7 ... Integration of Production Planning with Plant Maintenance ... 894
20.8 ... Integration of Production Planning with SAP Manufacturing Execution ... 894
20.9 ... Integration of Production Planning with SAP Manufacturing Integration and Intelligence ... 895
20.10 ... Summary ... 896
... Appendices ... 897
A ... Comparison Table of Production Types ... 899
B ... Glossary ... 905
C ... The Author ... 925
... Index ... 927