Enterprise Wide Information Systems

Manufacturing Planning and Execution

Instructor: Richard W. Vawter

University of Southern California

Objectives
After this week, you will be able to:
Describe the basic business process of manufacturing planning and execution in an ERP System.

Discuss the integration points of manufacturing to materials management.

Discuss the reporting and analysis tools used in R/3 for manufacturing.

Execute the manufacturing planning and execution process in the R/3 system.

University of Southern California

Topics
Organizational Elements and Master Data
Business Process for Manufacturing Planning and Execution

Reporting and Analysis

University of Southern California

Manufacturing Planning & Execution

The SAP R/3 application modules that support most of Manufacturing Planning and Execution are:

Sales & Distribution Financial Accounting

Materials Mgmt.

Controlling

Production Planning

R/3
Quality Mgmt. Plant Maintenance

Fixed Assets Mgmt.

Production Planning Materials Management

Client / Server ABAP/4

Workflow

Project System

Human Resources

Industry Solutions

University of Southern California

Organizational Elements
The SAP R/3 Manufacturing business process uses the following R/3 organizational elements:

Company Code

Storage Location

Plant

University of Southern California

Master Data
The following master data is used in the Manufacturing Planning and Execution processes:

Material master Bill of material (BOM) Work center Cost center Routing

Production resources and tools

University of Southern California

Material Master Primary Views

Basic Basic Data Data

* * * *
Material Master

Purchasing Purchasing

MRP MRP

Sales Sales

Stocks Stocks in in plant/ plant/ storage storage location location

Work Work scheduling scheduling Quality Quality management management

Accounting Accounting

Storage Storage

Forecasting Forecasting

Warehouse Warehouse management management

Classification Classification

University of Southern California

Material Types control the processes a material can go through

1. Raw materials

3. Semi-finished products

2. Operating supplies

Examples of material types: Raw materials Operating supplies Semi-finished products Finished products

4. Finished products

University of Southern California

Bill of Material is a structured list of components of a product

Power Train

Motorcycle

Chassis

Motor

Gear

Exhaust

Front Wheel

Rear Wheel

Frame

Brake

University of Southern California

Work Centers describe where and how operations are performed

Work Centers can be defined by the machines and employees involved in the production process.

Each work center contains distinct capacity, costing, and scheduling information.

Cost Centers
Used to collect the actual costs of one or more work centers.
Cost Center Motorcycle Assembly

Assembly Area 1

Assembly Area 2

Inspection University of Southern California

Work Centers

Routings
Describes the sequence of operations required to produce a specific material.

Material components Material

Work center Texts Control data Times

Production resource tools University of Southern California

Routing group

Production Resource/Tool Categories

Production resource/tools are moveable operating resources required for production.

Documentation, Instructions

Material

Equipment

Miscellaneous

Production Resource / Tools

University of Southern California

Topics
Organizational Elements and Master Data
Business Process for Manufacturing Planning and Execution

Reporting and Analysis

University of Southern California

Manufacturing Planning and Execution

Manufacturing Planning is the process of using forecasts and customer demand to create production and procurement schedules for finished products and component materials. Manufacturing Execution is the process of producing finished products and component materials and recording all shop floor activities and inventory movements.

University of Southern California

Manufacturing Planning and Execution

The overall manufacturing planning process comprises:

Forecast values and requirements are first determined Master schedule items are planned Material requirements planning is then calculated

The overall manufacturing execution comprises:

Production orders are first released Materials are issued next Completion confirmations are then performed Goods are finally received into stock

The manufacturing process affects capacity, costing, inventory, reporting, and analysis
University of Southern California

Five Phases of the Manufacturing Processes

1.
Sales Info System

5.
Procurement

SOP

Production Order exec. 4.

Manufacturing Execution Order Settlement

2.
Sales & Oper Planning Demand Mgmt

3.
MPS MRP

Forecasting

CO/PA

Inventory

Costing

Capacity
Production Master Data Reporting and Analysis
Planning process Execution process

Next week we will take a closer look at each of University of these five phases of the Manufacturing process.

Southern California