fbpx

Production Planning Process Flow

I like to explain the Production Process flow for a simple demand to stock cycle.
Step1.
1.1.Create a demand in the md61 transaction for a plan and material combination.
This has to be maintained for the Finished goods material only ie) which has a BOM and a routing.
1.2.Here ensure that the version check box is selected ,becoz only if it is selected it will be considered for MRP Run.

Step2:Run MRP
2.1.Now using the transactin Md02 give the same material and plant and run the MRP.
2.2 In the MD02 screen the Planning Paremeters are to be selected accordingly.
2.3 Execute the transaction.

Step3:MD04 stock requirement List
3.1.Now you can use the Md04 transaction to view the Demand created by Us and also the proposal generated by the system if there is shortage of supply for the demand.
3.2. System generats Planned order.
3.3. Double click on the planned order no , which will help us to convert the planned order into an production order.
3.4 Now you can create the Production order.
3.4 In the same step you can release and save the order.
3.5 Now in the Md04 screen on refresh we can view the Production order number on display.

step4: Production order
4.1. Using Co02 we can view the status and also the BOM,Routing etc that has been copied from the master data to the production order.

Step5: Production order confirmation.

5.1. Using CO11N confirm the Production order operations.
5.2. To avoid any error in the stock posting we should confirm the production for the previous operations or order which will be increase the stock of the finished goods.Also the required purchase material stock is also to be checked.
5.3. During the production confirmation of the final operation we can view the goods movements of the material produced and also the material consumed.
5.4. execute and save the transaction.

Step6: GR/GI check
6.1 now we can check the goodrecevied and also goods issued with different transactions
6.2 Co03 – in this you can use the Documented goods movement to view .
6.3 MB51-Material document list.
6.4.Coois – Order information list.

SAP-PP Master Data

Production Planning Master data:
The below are the few master data that will be required based on the business scenarios.
1.Material master – with MRPView,Workscheduluing
2.Bill of material
3.workCentre
4.Routing.
5.Production version.

Details about the master data:
1.Material Master:

1.1.MRPviews: The MRP view is the one which will have the MRP parameters like MRP type,MRG group,lotsize,strategy,Avaialability check etc.
1.2.WorkScheduling:This view has to be activated if we are working with Production order scenario.This also helps you to maintain the serial numbering and attaching a production scheduling profile.

2.BIll of material:
BOM master data is used to hold the details of components that are required to produce a finished goods.Also in the bom we can define the required scrap % for a component.And we can also control the below few parameters like Bulkmaterial indicator,relevant for costing,phantom material indicator etc.
BOM item category is important. ex:stock item,text item,class item etc.

3.Workcenter:
Generally the machine and the labour in the shopfloor are mapped to the workcentre in SAP.
Workcentre category is important one to choose.
each work centre has views like general,default,capacity,scheduling,costing etec.

General:we maintain the basic parameters.

Default:Here you have the default values for a workcenter.

capacity:Here we define the default capacity that are required to use and also the forumlae requried to calculale the capacity is also defined here.Also the capacity parameters related to the workcentre will also be maintained here.

scheduling:The scheduling of the workcentre can be done based on any one of the parameters like machine,labour etc.The formulae used for scheduling is to be maintained here.

costing: Here we map the cost centre to which the workcentre costs are to be accumulated.
the activity and activity type will be linked here with the formulae.

4.Routing:
This master data tells on the route on which the rawmaterial travels and gets transformed into different semifinished goods and finally into the finished goods.
here you can define the operations and also the workcentre or machine on which the operations are carried out.
Also the parameters for each operation with the standards, time required,labour required etc all can be defined here.
Also if the particular operation requires some inspection then the same can be defined here.
Routing is important master data which integrates with the quality module.

5.Production version:
when a product can be produced with multiple bom and routing combination then we define the production version.Each production version will be assigned a BOm ,routing and also validity period,lot size.

SAP Production Planning

I like to skip the introduction to basics of SAP and directly jump into the Production planning of SAP.
Production Planning&Control module which is allways called as PP module takes care of the planning process of material ,after planning it helps to produce the material through production and then apply the controlling process over the Planning and also the production.

SAP-PP module can help the production through discrete and repetitive manufacturing process.

what is discrete manufacturing?
discrete manufacturing will have shorter order quantities, the process will not have continious flow and mostly if the business requires to monitor the cost at an production order level then the system is configured for dicrete manufacturing
What is Repetitive manufacturing?
In this process thegoods will be produced in larger quantities and the business likes to collect the cost at the material level and that too for a certain larger periods.

I like to discuss this in the begining itself as the later production process will be based on the manufacturing type