Discrete Manufacturing (Full Life Cycle)
DISCRETE MANUFACTURING(FULL LIFE CYCLE)
Data Types in SAP ERP
When dealing with a software system as robust as SAP ERP, you need to haveperspective on how your business will be modeled in a software environment. In
SAP ERP, users will have essentially three types of data:
- Configuration data
- Masterdata
- Transactional data
Configuration Data:
Organization Structure
Configuration data is often referred to as one-time data. This means that the datashould not change, but if it does it will be tracked or controlled.
Client
The client is a unit within an SAP ERP system that is self-contained both inlegal and organizational terms, and in terms of data, with separate masterrecords and an independent set of tables. From a business viewpoint, theclient represents a corporate group.
Company code
A company code is the smallest organizational unit of external accountingfor which a complete, self-contained bookkeeping system can be replicated.This includes the entry of all events that require posting to the accounts andthe creation of a complete audit trail for balance sheets and profit-and-lossstatements. A company code represents an independent unit producing itsown balance sheet, for example, a company within a corporate group (client).
Plant
The plant is an organizational unit within logistics that subdivides anenterprise from the viewpoints of production, procurement, and materialsplanning.
Storage Location
The storage location is an organizational unit that facilitates thedifferentiation of stocks of materials within a plant. Inventory managementon a quantity basis is carried out in the plant at storage-location level. Thephysical inventory is also carried out at this level.
Purchasing Organization
Outside of production planning, other areas of the SAP ERP system needadditional configuration to support their specific functional needs. In addition tothe client and company code requirements, purchasing requires an additionalorganizational structure.
Sales Organization
Similar to the purchasing side of an organization, the group responsible for saleshas additional unique business requirements.A sales organization is uniquely assigned to a company code, however a companycode may have more than one sales organization assigned to it.
Distribution channelis a means through which saleable materials or servicesreach the customer. A distribution channel is assigned to a sales organization. Asales organization may have more than one distribution channel assigned to it.
Division A sales organization can have several divisions assigned to it, but must have atleast one division. A division is used to group materials and services. A divisioncan represent a product group or product line, which allows:
- Restricted price agreements to a certain division
- Statistical analysis by division
Sales areais a unique and allowable combination of a sales organization,distribution channel, and division. Each Sales and Distribution document isassigned to exactly one sales area. This assignment cannot be changed. A salesarea can belong to only one company code. This relationship is created by theassignment of the sales organization to the company code in Customizing.
Shipping pointis the organizational element that manages your shippingactivities. Each outbound delivery is processed at a shipping point.
MRP areas are defined as part of MRP configuration. There are three types of
MRP areas: plant, storage location, and Vendor (subcontractor).
When creating MRP areas, you must specify the MRP area type, plant, andreceiving storage location for Type 2 (storage location). Companies have theoptions of assigning one or more storage locations to each MRP area. Once anMRP area is defined, users must assign material masters to the MRP areas theywish to segregate from the rest of the plant.
Master Data:
Configuration will be the foundation upon which most master data will be built.
Master data is often referred to as slowly changing data. This means the data ofa particular object does not change all the time, but often several times a year.Master data in SAP ERP is a centralized function. This means that the data is beintended to be stored once and replication is to be avoided. The master data thatwill be used for production planning in SAP ERP is as follows:
- Material masters
- Bills of material
- Work centers
- Task lists/routings
- Cost center
Transactional Data:
Every day, businesses perform tens of thousands of transactions that make thebusiness function. Some transactions are directly related to outside events withcustomers or suppliers. Other events are internal to the business and affect theinteraction between departments within a business or division.
Within SAP ERP, all transactional data is related to some form of master data orconfiguration data. In the world of production planning, you will be executingplanning runs that will be generating replenishment suggestions, generatingproduction execution directions, or executing production confirmations. In SAPERP production planning, alltransactional data typically revolves around thematerial master, bill of material, or routing.
Master Data Objects in Production Planning:
i)Material Master Record (MM01/MM02)
The material master contains information on the materials that a companyconstructs, procures, manufactures, stores, and sells. The information is stored ina database that is a central source of data on materials. The material master recordintegrates data from different areas of a company.
ii) Bills of Material (CS01/CS02)
A bill of material (BOM) is a complete, formally structured list of the componentsthat make up a product or assembly. The list contains a description and objectnumber for each component, together with the quantity and unit of measure. Billsof material can exist at the plant and/or client level. The header and components allcontain validity dates that can be affected using Engineering Change Management.
iii) Work Centers (CR01/CR02)
A work center is a location that defines when and where production resources arerequired according to order requirements. In different companies, work centersare also called machine, labor, or capacity centers.
iv) Task Lists and Routings (CA01/CA02)
A routing defines operations and the sequence in which they are carried out. The following is also defined in the routing:
a) Where the work is to be done
b) How long the work should take
c) What materials are needed for each operation?
d) What tools and fixtures are required?
A routing shows operations in a sequence and acts as a template for productionorders. Each step defines the work center in which specific work will beaccomplished. The planned time for each operation is stored in the routing asa standard value.
These standard values are the basis for:
a) Lead time scheduling
b) Product costing
c) Capacity planning
Steps Involved in Complete cycle:
1)Requirement is flowing in any of the two ways or both, one from sales order (VA01), another from planned independent requirement (MD61) or customer requirement (MD81).
2)Check whether the requirement is flowing correctly in Stock requirement list (MD04).
3)Run a MRP in Single material multilevel (MD02) if there is any Reorder point planning material run MRP in Plant level (MD01).
4)Check whether planned order is created for a header material and all dependent material in Stock requirement list (MD04).
5) i) If you are using MRP Run to Convert the planned order into purchase requisition for external procurement material (MD14 or MD15 or MD04), if it is in house production convert the planned order in to production order in stock requirement list (MD04, CO40 for individual conversion, CO41 for collective conversion, CO48 for partial conversion).
ii) If you are manually converting planned order to production order (for Collective conversion).
6)Once production order is created, release the order (CO05n), allocate the capacity to work center, availability check and check the cost and save it.
7) Once the order is created, components areset to reservation on BOM.
8) Issue the dependent material to the order using MB1A, goods movement type 261 (Goods issue for an order).
9)Confirm the order using CO15, if you want to confirm operation wise, then confirm in CO11N (Time Tickets).
10)Once the confirmation is made, then goods receipt (MB31) for the order is carried out with Movement type 101 (Goods receipt for Purchase order or order, for non-valuated goods GR is posted to warehouse).
11) Set TECO in CO02 (change of production order)
12)Month end activity(Calculate the WIP in KKAX)
13)Calculate the Overhead in KKS2, variance calculation and settlement of order.
14)For all production orders are sent to Status change to close. (CLSD)
Auto GI:
Set the back flush indicator in any of the following things
a)In Material Master in MRP 2 views.
b)In Work center in basic data view you have to tick the back flush indicator. It will affect only material used in particular work center.
c)In Routing, Component allocation Screen you can set back flush indicator. It will affect only in that routing.
Auto GR:
In the final operation of the routing, enter Control key with Auto GR tick
REWORK:
Generally in the Shop floor, rework happen frequently. Rework is done by different ways
a)Automatic triggering of rework order when we enter rework qty in confirmation screen.
b)If rework has to be done immediately after entering in to rework qty in the confirmation screen before proceeding next operation, by done by control key with rework option and enter the time in operational detail and operation quantity.
c)Create a reference operation set and create a rework order with rework order type and settle the rework order into main production order.