Notes: SCM 300 -

Page: 97: UNIT: 3: Process Orders

Order type: Process, Cat: 40

Page: 100

In process manufacturing, there are usually increased requirements with regard to

the integration of batch management and quality management within the supply
chain.

(2) The materials in process manufacturing are typically managed in batc

Order is released, control recipes with parameters for the process control
level can be generated

Page: 104: FIG 50

105: Master Data for Process Orders

 Material
 Resources
 Production Version
 Master Recipes (BOM)
o BOMs are created through Recipes
  Batch management is used in all areas of logistics.
 A batch can be traced across the whole supply chain, from the receipt of the
raw material to processing in production and the creation of the final product,
all the way to sales and delivery to the customer.

111 Lesson: Elements, Functions, and Processing of a Process Order

111: Life Cycle FIG of Process Order

The procedure involved in process order management can be divided into the
following steps:

 Process planning
 Process order execution / process management
 Order Completion

 Resources in place of Work Centers

 In the process industry, the Term Resources is alternate for Machines/work

centers as compared to Discrete Industry.
113: Fig. 53
 Elements of Process Order
Phases are used for scheduling, determining capacity requirements, and costing.
The dates and capacity requirements for operations are derived from the
corresponding phases.

A control key must be entered for both the phases and the secondary resources.
The control key is used to determine how an operation or phase is to be treated in

Confirmations are entered for phases and secondary resources (however, not for
operations).

Structure of the Process Order

119: FIG: Material Qty Calculation:

 In material quantity calculation, you define formulas to calculate the
material quantities to be used or obtained in a production process, taking
into account the:
o Mixing ratios of the input materials,
o Yield ratios of:
  the products
 and remaining materials,
 as well as specific batch attributes (for example,
concentration, active ingredient content).

You can also define formulas for calculating phase quantities in material quantity
calculation.

120: FIG.
*** Order Release Function (Important)

The process order must have status Released so that the business transactions for process order execution
and process management can be executed.

You can release:

 Individual phases
 and operations,
 one complete order,
 or several orders at once

Various activities can be triggered automatically when an order is released:

 Batch number assignment for the product
 Batch determination for the material components
  Material availability check
 Control recipe generation
 Generation of an inspection lot for an in-process quality check

Figure 66: The Material Staging Process

Basis for material withdrawal for process orders are:

 Material withdrawal slips
 Pull lists
 Pick lists
 and similar documents
 as well as PI sheets and weighing systems linked via the PI-PCS
interface.
The ECC system has various methods to control material staging. These
include:
 Warehouse management with the MM-IM (Inventory Management)
component
 Replenishment control with the kanban component
 Storage bin management and replenishment control with the LE-WM
(warehouse management system) component

Warehouse management system offers the three following options:

 Pick parts are staged directly for the process order in the amount of the
requirements quantity.
o The staging of these parts for the process order can be done at a
physical storage bin or a dynamic one (process order).

For this type of staging, you can create transfer requirements manually or
automatically at order release.

 Crate parts are ordered manually when a container is almost empty.

 Release order parts are ordered manually.
o Here the required quantity is calculated from the target quantity of the
components of the selected orders that have been released.
o The stock situation in production and replenishment is taken into
account.

167: Unit: 4 Repetitive Manufacturing

 Company produces products in large numbers.

 The production is quantity based and period based.

Repetitive manufacturing is mainly used for production scenarios with:

 High product stability,
 High repetition rates,
 and low product complexity.

Order Category for Rep. Manf. : Without Order

Quantity and Period Based Production
  In terms of configurable materials, action control enables actions to be triggered
automatically (for example, printing the component list).

Figure 76: Cross-Application Functional Process

Page: 173: FIG. 77: Master Data For Repetitive

RATE ROUTING
  Production Line / Assembly Line as Work Center

173
 To allow the material to be used in repetitive manufacturing, you set the
Repetitive Mfg Indicator in the material master (in the MRP view).

173:
 When you backflush components in repetitive manufacturing, you can define
the issue storage location from which components are to be backflushed
in the status/long text of the BOM item (Production storage location field).

Work Centers as Production Lines

 Production lines are usually created as simple work
centers in the ECC system.
 In the work center, you define the availability of the production line.
 The production line created as the work center is entered in the Production
line field in the production version.
o This same work center is specified in the single operation of the
routing.
 Production lines that have more than one work center can be represented
in a line hierarchy.

Routing
 In repetitive manufacturing, the routing defines the production rate
(quantity per time unit) used to produce materials on production lines.
 The production quantities and their capacity requirements are scheduled and
calculated respectively according to the production rate.
 The routing therefore provides the basis for lead time scheduling.

 In repetitive manufacturing, work centers are not normally used to describe

the actual operations to be performed.
o For this reason, routings in repetitive manufacturing
often have just one operation.

 It defines how many materials per time unit can be produced on this
production line. In the single operation, you enter the production line as the
work center.
 Rate routings are specially designed for the needs of repetitive
manufacturers
Less: Functions and Process Steps in Repetitive Manufacturing

188: FIG.

Rep. Manufacturing Process Flow

 A distinguishing feature of repetitive manufacturing is that planned

orders with order type RSQ. (Run schedule quantity) are used for
production, which means that planned orders are not converted.
o Only their status changes when they are assigned to the production
line.

190: FIG. Basic Planning Strategies for Repetitive Manufacturing

Make-to-stock production:
 You can use repetitive/flow manufacturing for pure make-to-stock
production.
 This means you produce finished products with no direct reference to
sales orders.
o The planned independent requirements from demand management are
used as the basis for planning.
o Depending on your planning strategy, the planned independent
requirements from demand management may be consumed by sales
orders.
 The same product is produced repeatedly over a substantial period of time.
The product is not produced in separate lots.
 Instead, a total quantity is produced in a certain period at a certain rate.
Products pass through production in a relatively steady flow.

 Sales orders are filled from warehouse stock.

IMP

 Make-to-order production (sales order-based production):

 You can use repetitive/flow manufacturing for make-to-order production. This
means you produce products with direct reference to the sales orders. The
products are stored in the sales order stock.
 Sales orders can be processed separately. A planned order is created with
direct reference to the sales order. Production is therefore controlled using
sales orders. The quantities produced cannot be swapped between the
individual sales orders.
  The produced quantities are stored specifically for the individual sales order
(sales order stock) and not in the make-to-stock inventory.
 If you use variant configuration, you can plan and manufacture configurable
materials using make-to-order repetitive manufacturing.
 Sales orders are filled from sales order stock.

PLAN LINE LOADING >> Dispatching Planned orders on the Production Line

195: FIG. 85: Backflush and Goods Receipts

197: FIG. 86: Reporting Point Backflush

 Scenario: You have a long production line with a long lead time.
 However, the goods issues for the first components at work centers 1-1 and
1-2 are to be posted on-time and not by backflushing with final confirmation
at the end of the production line.
 All components used along the production line are usually backflushed during
final confirmation.
 If there are long lead times, the goods issues for the components may be
posted much later in the system than when they are actually physically
withdrawn.

 In this case, it makes sense to use the reporting point backflush to post
the withdrawal of components (and production activities) at an earlier stage
after operations already completed.

 The above example contains the three reporting points that are linked to
operations 10 (work center 1-1), 20 (work center 1-2), and 40 (work center
1-4).

229: UNIT5: KANBAN

 In KANBAN, material flow is organized using containers that are kept

directly at the appropriate work centers at the production location.
  Each contains the quantity of material that work center personnel need for a
certain period of time.
 As soon as a container is emptied by the demand source, replenishment is
initiated in KANBAN.
 The supply source for the required material can be another place in
production, an external vendor or a warehouse. The demand source can
use material from other containers until the actual container returns to full.

 The aim is to control the replenishment process in production itself and to

reduce the manual posting efforts for personnel as much as
possible.

 This self-management process and the fact that replenishment

elements are created close to the time they are actually
consumed means that stocks are reduced and lead times are shortened
(replenishment is only triggered when a material is actually required and not
before.

 In short: With KANBAN, material is provided in production exactly where it is

required and is always available in small material buffers.

 This means that material staging does not need to be planned. Instead,
material that is consumed is replenished immediately using KANBAN.

234: The KANBAN Process

FIG. 93: Using Kanban in Production

235: FIG. 94: Master Data: Supply Area

 With KANBAN, material is staged in specific areas (known as supply

areas) directly in production.
 A supply area can be used by one or more work centers.
 The supply areas act as a buffer for the required materials (for
example, on shelves or in marked-out areas on the floor).
  The supply areas established for the shop floor are defined in the ECC
System in the KANBAN menu.

In the definition, the supply area is assigned the following objects:

 The supply area is a data object used to organize material flow for
KANBAN.
o It is not an inventory management object.
 Therefore, storage locations must be assigned to the
supply areas.
o Inventory management (which is relevant, for example, for
posting goods receipts) takes place at the storage location to
which the supply area is assigned.

 Another significant organizational prerequisite is that you create a

person who is responsible for each supply area.
o The person assigned to a supply area is responsible as the
demand source for processing material and for monitoring stocks
in the supply area.
o The person responsible entered in the control cycle for in-house
production is responsible as the supply source for replenishment,
that is, for material provision and, if necessary, for delivery to
the demand source.
o The person responsible is assigned as an MRP controller to the
supply area in Customizing for MRP.

 Unloading point:
o In external procurement, the supplier often delivers the material
directly to a certain unloading point rather than to the supply
area in production.
o The KANBANS are then transported from this unloading point to
the supply area.
o The unloading point defines where the supplier has to deliver the
material (for example, gate 1).
o It is printed on the KANBAN card or is transferred to the
summarized JIT call.

Delivery address: You can maintain an address in the supply area.

CONTROL CYCLES
When you use the KANBAN procedure, warehouses or vendors are linked to the
supply areas that are assigned to the relevant production storage locations using
control cycles.

239: KANBAN STAUTS

FIG. 97

Setting KNBN to Empty = Triggering Replenishments

 The progress of production in KANBAN is controlled by setting the KANBAN to

the appropriate status.
o Usually, only the Empty and Full statuses are used.

 If the demand source sets the status to empty, the system creates a
replenishment element, instructing the material supply source to deliver.

 Emptying a KANBAN does not result in a goods issue posting.

o In KANBAN, goods issues are typically backflushed when an order is

confirmed (or when a goods issue is posted manually for an order).

240: KANBAN Status: Full >>>> GR Postings Automatically