Honda Atlas Cars Pakistan Limited

SAP ERP Implementation

Process Definition Document
Production Planning : Shop Floor Control
PDD03

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Table of Contents
1 DOCUMENT MANAGEMENT................................................................................................................2
1.1 Versioning................................................................................................................................2
1.2 Approvals.................................................................................................................................2
1.3 Attachments.............................................................................................................................3
1.4 Notes........................................................................................................................................3
1.5 Glossary of Terms..................................................................................................................3
2 PROCESS DETAILS..........................................................................................................................4
2.1 Overview..................................................................................................................................4
2.2 Process Model......................................................................................................................11
112.3 Process Steps...................................................................................................................13
3 ORGANIZATION CHANGE...............................................................................................................14
3.1 Organizational Change Impacts.........................................................................................14
4 DESIGN..........................................................................................................................................14
4.1 Key Design Decisions..........................................................................................................14
4.2 Integration Considerations..................................................................................................18
4.3 GAP Analysis.........................................................................................................................19
4.4 Key Data Elements..............................................................................................................19
5 Standard Reports....................................................................................................20
6 WRECIF..................................................................................................................21

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1 Document Management
Project ID:
Title: PPPDD03-: Shop Floor Control
Status:
Priority:

Release:
Business Owner:
Team:
Author: Ahmed Salman Khan

Date Created: 15.10.2014

Created By: Ahmed Salman Khan

1.1 Versioning

Version
Revision Date Summary of Changes Revised By
Number
1 16.10.2014 Ahmed Salman Khan

2 31.10.2014 Ahmed Salman Khan

1.2 Approvals
This document requires the following approval signatures:

Name Title Signature Date

Muhammad Ashraf Power User

Muhammad Sohail
Power User
Nawaz

Amir Nazir Business User

Sajid Hameed Business User

Muhammad Saghir Business User

Wajid Ali IT Key User

Syed Arif Ali Project Manager HACPL

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Name Title Signature Date
Hashim Abbasi Project Manager IBM

1.3 Distribution

Name Title
Amir Nazir Business User

Sajid Hameed Business User

Muhammad Saghir Business User

Wajid Ali IT Key User

Syed Arif Ali Project Manager HCPL

M. Hashim Abbasi Project Manager IBM

1.4 Notes

1.5 Glossary of Terms

 PP – Production Planning module of SAP.

 GR – Goods Receipt, receives the product into inventory.

 GI – Goods Issue consumes the material and updates the inventory.

 MS – HACPL Material Store (non SAP system)

 AF – HACPL Assembly Finish (non SAP system)

 QM – Quality Management module of SAP.

 TECO – Technical Completion of Process Order.

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2 Process Details
2.1 Overview

Description Shop floor Control

“Shop floor Control” or Production Execution is the production

process that takes place on daily basis on the production floors.
All in-house production activities are performed in “shop floor
control”. It is the process that is used to account for the
conversion of raw materials into semi-finished (Press parts,
Engine etc) and finished products(CBU). In HACPL, the shop
floor control in essence would involve process manufacturing. It
starts from material issuance from warehouse till the closing of
Production Order and receiving of Finished CBU Product in
Warehouse.

In HACPL, the shop floor process would involve the following key
sub-processes:

 Process Planning
 Order Execution
 Order Closing
The typical order cycle is as follows:

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 In HACPL, the Production Order cycle would look like:

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 Production Order Creation
Production Orders are a fundamental part of Production Planning
& Control module of SAP. It defines which material is to be
processed / produced, in what quantity, at which plant, at what
time and how much work is required. It also defines which work
centers are to be used to calculate capacity and how the
production order costs are to be settled.

When a Production Order is created the following actions are

carried out:
 A Routing is selected; its operations, sequences are
transferred to the order.
 The bill of materials is exploded and the items in the bill of
material are transferred to the order.
 Reservations are generated for bill of material items.
 The planned costs for the order are generated.
 The capacity requirements are generated for the Work
Centers.

In HACPL, Production Order will only be created for all semi

finished products (HALB) and finished product (FERT). In other
words Production Orders would be created for all products
produced by HACPL and whose stock needs to be individually
monitored.
The Production Orders will be created by the following two

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 methods:
1. Convert Planned Orders, created during MRP run, into
Process Orders
2. Manually creation of Production Orders.

Material Availability

Before starting production, availability is checked for those

materials which are assigned to production order in the form of
bill of material. This procedure is controlled by assigning checking
group to individual material in material master so we can include
or exclude any material from availability check process.

If, as a result of a shortage of material components, the

production order quantities cannot be produced for a particular
deadline, the order may be split i.e. broken down into smaller
pieces.

Availability checks can be triggered either automatically or

manually. Upon creation of a production order, SAP automatically
checks availability of BOM components in storage locations and
will display available or shortage quantities if shortages exist. In
case of material shortage, SAP will prompt the user of the
shortage and the decision whether to proceed with production will
lie with the user.

Production Order Release

A newly created production order initially receives the status

CRTD (created). The following restrictions apply to a production
order that has been created:

 Confirmations for the order cannot yet be executed.

 Goods movements for the order cannot yet be executed.

Releasing the order lifts these restrictions.

Once it has been established that all required materials and

capacities are available for production, Production Orders can
and must be released for production. There are different options
available for this like individual release or mass release.

In Individual Release, Production Orders are released one by one

where as in mass, multiple Production Orders can be released
together.

The order release is the basis for further processing of the

production order like material withdrawal, material issues, and
confirmation. Individual operation, whole order or several orders
can be released together.

In HACPL, the release of CBU Product Production Order will

trigger an event in the system which will inform the MS(Material

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 Store) about the CBU order and transfer the order details to it.
MS department will receive the materials reservation from
production department. MS department will transfer the required
materials to production department to their production storage
location. In case of over issuance production department will
create the manual reservation of material. MS department will
transfer the additional material to production storage location.

Goods Issuance

Goods Issue is issuance of materials from the production storage

location to the Production Order. It accounts for the consumption
of Stock in Production. When a Production Order is created, the
system automatically generates a reservation for the required
material components.
The reference to a reservation determines whether a material
withdrawal for a Production Order is planned or unplanned.
Planned material withdrawals can only be carried out for
components kept in stock. Unplanned material issuance incur
actual costs for the production order, are not included in the
component overview, but tracked in the goods movements log.
Movement type for material issuance in MM Module is 261 which
effects on:
 Stock fields and consumption fields updated based on
storage location.
 Reservation reduced for planned materials.
 Only costs updated for unplanned materials.
 Actual costs determined and order updated

In HACPL MS department will transfer the material to production

storage location. Materials will always issues in the lot of 60. MS
department can issue the quantity of 60 in one go or issues in
less quantity depending up to space available in production
storage location. In case of additional material requirement
production department will issue a manual material reservation to
MS department( without the reference to production order). MS
department will transfer the material to production department.

Order Confirmation

Order Confirmations are the premise for progress control and

capacity planning. With a confirmation we confirm:

 The quantity in an operation that was produced as yield.

Yield means quantity produced as per specification.
 We can confirm the activities performed, for example

By entering the total number of CBUs produced in a day

or shift. Total amount of activates consumed in production
and what is the date of production. If quantity produced is
less than quantity planned

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 There are two methods to perform confirmation:

1. An order level : Order confirmation is the confirmation of

the entire order at order header level
2. An operation level: An operation confirmation allows you
to confirm an order step by step. There are various
procedures available for this type of confirmation

i. Individual Confirmation: Separate confirmation of

operation can be done.
ii. Collective Confirmation: Multiple operations of multiple
production orders can be confirmed on the single entry
screen.

An operation can be marked as a milestone through operation

control key. This means that when the milestone operation is
confirmed, the operations that precede it are also confirmed with
proportional quantities. SAP also offers to link auto goods
receiving of assembly when confirmation of last operation is being
done. Confirmation made by mistake can be revoked easily.

In HACPL, Operation Level confirmations will be performed for all

semi finished and finished product with Backflush and Auto GR.

Goods Receipt

When all semi finished products (HALB) and finished material

(FERT) has been produced, a goods receipt (receive produced
goods into stock) is posted in SAP process order. Goods receipt
from production can be posted either manually or automatically.
When a goods receipt is posted, the stock of semi finished or
finished material is increased at their storage location. Goods
Receipt(Painted Shell ,Engine,CBU) from Production in HACPL
will have a unique Lot number (batch number in SAP). This batch
number will be externally generated through ABAP program. At
the time of production order confirmation Operation at Shop Floor
has to link this batch number with material.

When dealing with a goods receipt relating to a Production Order

manually, the system proposes the open order quantity for the
goods receipt which can be changed as per requirement. When a
goods receipt item is created, the goods receipt quantity is
compared with the open order quantity. The SAP system is then
able to determine whether under delivery or over delivery will
occur. These under delivery and over delivery of materials can be
allowed depending on the setting of material master maintained.

In HACPL over delivery is not allow in production order however

production manager can change this in order level according to
requirement.

Materials relevant quality inspection will go to inspection area. If

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 quality department reject any material due to poor quality they will
move this materials to rejected area. In HACPL separate storage
location will be available for these kind of materials which will be
reprocess latter in Production Order type. Reprocess will be used
to reprocess in the material e.g. removing or adding navigation
system in CBU or removing any fault from CBU.

Order Settlement

Order settlement is usually performed by finance department in

which actual costs incurred for the order are settled to one or
more receiver cost-objects (for example, to the account for the
material produced).

After the goods receipt for a material has been posted (finished
product or semi-finished) any existing actual costs came from
using machine, raw material consumption, etc. must settled to
cost object so that the Production Ordercan be deleted at a later
stage.

In HACPL, all Order Settlements will be performed in SAP.

This process will be triggered when:

 Planned Order is converted into Production Order

Triggers  Production Order is manually created.

 CBU Product Production Order release will trigger the

Order details to be passed on to production department.
For the process to work properly, the following dependencies
must be fulfilled:

 Bills of Material (BoM) must be present in the system

whose Production Order is being created.
Dependencies
 Routing must be present in the system for the material
whose Production Order is being created.

 Relevant Material Master views must be properly

maintained.

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2.2 Process Model

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2.3 Process Steps

Transaction
Step Application Transaction Menu Path
Description
Convert Convert Planned
Planned CO40 Order to
Order Production. Order
Convert Coll.Conv.:
Planned CO41 Planned Ord. to
Order Production. Ord.
Create
Create Production
Process CO01
Order
Order

Change
Change Process
Production CO02
Order
Order

Release CO02 Release

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Production
Production Order
Order
Display
Display Process
Production CO03
Order
Order
Confirm
Time Ticket
Production CO11N
Confirmation
Order
Consume
Stock in MB1A Goods Issue
Production
Receive
Produced Goods Receipt for
MB31
Goods into Production Order
Stock

Step Convert Planned Order

Description
Convert Planned Order to Production Order
Triggers
Dependencies
PP Power User
Roles
Shop Floor Operator

Step Convert Planned Order

Description Collective Conversion of Planned Orders to Production

Order.
Triggers
Dependencies
PP Power User
Roles Shop Floor Operator

Step Create Production Order

Description
Create Production Order.
Triggers
Dependencies
Shop Floor Operatpr
Roles
PP Power User

Step Change Production Order

Description
Change Production Order
Triggers
Dependencies
Roles Shop Floor Operator

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 PP Power User

Step Release Production Order

Description
Triggers
Dependencies
Shop Floor Operator
Roles
PP Power User

Step Perform ATP Check

Description
Triggers
Dependencies
Shop Floor Operator
Roles
PP Power User

Step Display Production Order

Description
Display Production Order
Triggers
Dependencies
Shop Floor Operator
Roles PP End User
PP Power User

Step Confirm Production Order

Description Enter Time Ticket for Process Order. Actual activities are
confirmed here.
Triggers
Dependencies
Shop Floor Operator
Roles PP End User
PP Power User

Step Consume Stock in Production

Description Post Goods Issuance against a Production / Production

Order
Triggers
Dependencies
Shop Floor Operator
Roles PP End User
PP Power User

Step Receive Produced Goods into Stock

Description
Goods Receipt against Production / Production Order

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Triggers
Dependencies
Shop Floor Operator
Roles PP End User
PP Power User

3 Organization Change
3.1 Organizational Change Impacts

Degree of Program Business

Project ID Title Type
Impact Accountability Accountability
None

Title None

No organization change impact has been identified during the

Description
business blueprint workshops as part of this process and/or
process variant.

4 Design Consideration
4.1 Key Design Decisions

 Creation of Production Orders will be the responsibility of the

respective plants Production Engineer.
 Production Orders Release will be the responsibility of the respective
plants Production Engineer.
 Capacity Check will not be enforced, the final decision will lie with the
user.
 Material Availability Check will not stop the order from being released.
System will inform of material shortages if any and the decision to
release the order will lie with the respective plants Production Engineer.
 Goods Issuance against Production Order will be the responsibility of
the Shift Supervisor of the respective plant. Production Engineer can
also perform this activity.
 Goods Receipt against Production Order will be the responsibility of the
Shift Supervisor of the respective Plant. Production Engineer can also
perform this activity.

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  Production Order Confirmation will be the responsibility of the Shift
Supervisor of the respective Plant. Production Engineer can also
perform this activity.
 Automatic Goods Receipt and Backflush will be performed when
Production Order Confirmation is entered,.
 Safety Stock will be included in the Material Availability Check.
 Stock in Quality will be included in the Material Availability Check.
 Purchase Requisitions and Purchase Orders will not be included in the
Material Availability Check. Only the stock at hand will be included.
 Material Reservations will be accounted for in Material Availability
Check.
 Material Cost Estimate should be executed and valid for the duration of
the Process Order.
 Material has been extended to the required Storage Locations.
 Required data for Non-Stock should be present for the given period.
 Material Master views are properly maintained.

4.2 Integration Consideration

 Material Cost Estimate should be executed and valid for the duration of
the Process Order.
 Material has been extended to the required Storage Locations.
 Required data for Non-Stock should be present for the given period.
 Material Master views are properly maintained.

4.3 GAP Analysis

Project Fit RICEF RICEF

Title Application
ID GAP(s) Priority Complexity
HACPL Honda Project yes ZPPE01 High Complex

Title Batch Creation

Description
Batch Creation for Engine and Shell
Resolution HACPL wants engine, Fram and CBU number should be
Rationale created before the start of production
Business
Organization Not Any
Impact
Steps Impacted Not Any

Project Fit RICEF RICEF

Title Application
ID GAP(s) Priority Complexity
HACPL Honda Project Yes ZPPC01 High Complex

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Title Production Order Confirmation
Description Production Order Confirmation for Engine,Shell,CBU
HACPL wants Engine and Fram number relationship at the
Resolution
time of production order confirmation on CBU order
Rationale
confirmation.
Business
Organization Not Any
Impact
Steps
Not Any
Impacted

4.4 Key Data Elements

Data Name Existing Indicator

Order Quantity
Start Date
End Date
Order Type

Data Name Order Quantity

Description
Production Order Quantity.
Security
There are no security considerations. Details provided
Considerations
during Business Blueprint Workshops.

Data Name Start Date

Description
Production Order Start Date.
Security
There are no security considerations. Details provided
Considerations
during Business Blueprint Workshops.

Data Name End Date

Description
Production Order End Date.
Security
There are no security considerations. Details provided
Considerations
during Business Blueprint Workshops.

Data Name Order Type

Production Order Type. All semi finished products

Description
Production Order and CBU Final Product Orders can be
distinguished through this.

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Security
There are no security considerations. Details provided
Considerations
during Business Blueprint Workshops.

5 Standard Reports

S. No. Report Name T-Code

01 Order Information System COOIS

02 Material Document List MB51
03 Stock Requirement List MD04
04 MRP List MD05
05 Missing Part List C024
06 Stock Overview MMBE
07 Availability Overview CO09

6 WRICEF

Object Type
S. No. Description
(RICEF)
01 Production Order Batch Creation
02 Production Order Confirmation
03 Daily Production Report

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