Honda-Goa, 06th May 2009 1

Honda-Goa, 06th May 2009 1
SAP PP MODULE
Presented By :
D.Avinash
Process Flow Integration
Sales Order Material Availability Check

Customer Shipment Sales & Transfer of Requirements
Credit Limit Distribution Goods Issue to SO
Sales Order / Forecast / Plan Invoice
Material Requirements
Production Material Procurement Materials
Planning Management
Production Cost Accounting Document
Purchase Order
Invoice Receipt
Goods Receipt
Finance & Vendor
Receivable Accounts / Cash Receipt Controlling Accounts Payable

SAP R/3 PP Module overview
Sales and Operations Planning

Org. Structure
SAP R/3 Integration
Long Term Planning
Demand Management
PP Basic Data : MRP
Material Master Planned order

Bill of Material
Work Center Production Order
Routing Back flushing
Production Order
Confirmation &
Settlement

Navigation
5
6
7
Organizational Structure
Company Company Code
Plants Plant 1 Plant 2 Plant 3
PC1 PC 2 PC 3 Storage Location SL 1 SL 2 SL 3
Profit Center
CC1 CC2 CC3

Cost Center
Work Center WC1 WC2 WC3

Company Code:
1
PLANT
 A Plant is a organization unit that subdivides an

enterprise according to production, procurement
,maintenance or material planning.
 It is a place where material are produced or goods and
services are provided
1
Storage Location
11
Master Data

Master Data
 Master data used for manufacturing planning and
execution includes:
 MATERIAL MASTER
 BILL OF MATERIAL
 WORK CENTER
 ROUTING
 COST CENTER
1
Material Master
Views of the Material Master
Purchasing
 Basic Data The material master is a Sales

central data object for all
MRP material types:
 Work
• raw materials scheduling 
Stocks in plant/
storage location • semi-finished products Quality
management
• finished products
Accounting
• P.R.T. Forecasting 
Storage
Classification
Costing Each user function has its own view of the material master which
permits easy access and maintenance of data.

Basic Data view

MRP View

Work Scheduling View
Shop Floor
Engineering
Production
 Which departments use this view?
? 

Engineering
Shop Floor Production
Materials  Materials Management
Management
 Why is this view used?

 To record data related to
? production such as:

 Units of issue
 Issue Storage Location
 In-house production
time
Plant Data / Storage Views
Shop Floor  Which departments use this view?

Production
 Shop Floor
?  Materials Management
Materials
Management
View is used to record following

data
? 

Shelf life data
Stock Determination
 Profit Center

Bill of Material

Bill of Material
BOM
A bill of material is a complete, formally structured

list of the components of a product or assembly.
A bill of material contains the description and
object number of each component, the quantity
and unit of measure.

Multi Level - Bill of Material
Machine
Assembly 1 Assembly 2
Motor Gear Exhaust Fly wheel Chain Frame Shaft
Combining single-level BOMs

creates a complete multi-level
structure.

Bill of Material Usage
Engineering Production Different types of BOM usage;

Data Data
 Engineering
 Production
 Costing
BOM  Sales
Costing BOM Item Status
Data
• Released
• Blocked
Sales Data

Bill of Material Structure
• BOM header maintained with structure of assembly components & sub assembly items with respective
base quantity and unit of measure.

• BOM status governs, whether the BOM is active or inactive.

ECM

BOM Validity Period
 The validity period is the time period during

which the bill of material is valid. The time period
is defined by the "valid-from" date and the "valid-
to" date.
 BOM creation and changes are handled by
Engineering Change Management by giving
SAP AG
Valid-from date
1993
Change Numbers
 ECN numbers are required for BOM creation &
changes.
 ECN’s will be inactive when Designer is working
on that BOM.
 ECN’s will be active when they are released to
SAP AG
production.
Valid-to date
1993

Work Center

Work center
Definition A work center is an organizational unit where

a work step (operation) is performed.
Usage Work centers are used in routings. They can also be used
as capacity collectors for statistical evaluations.
Examples
Type of work center Example
 Individual work center Automatic lathe 17
 Work center group Machine shop
 Assembly line Line 9
 Individual person John Doe

 Group of people Group 12

Work center Data
General data Basic data Name and description

Standard value key
Standard values Default values Control key

for routing
Standard text key
Capacity data Capacity

Available capacity
Formula key
Scheduling data Scheduling Scheduling basis

Queue and move times
Formula key
Costing data Cost center
and Assignment
HR data Activity types

Routing

Routings
 A routing describes the processing steps that must be performed to produce a

material.
Material
Routing group
Operation 20
Operation 10
 Work center Material components
 Texts
 Control data Production Resources
 Times and Tools

Routings
 Each individual routing is referred to as a group counter within the group
Routing Group
Group Group Group

Counter 01 Counter 03 Counter 04

Routings
Routings contain:
 Manufacturing In-house components & finished goods.

 The work centres where the operations are to be performed
Material allocation
 The manufacturing material is allocated to the group counter.
 Component are allocated to operations and standard values for
• Setup time,
• Processing time
• Tear-down time

SOP

SALES AND OPERATION
PLANNING
 Sales and operation planning is a planning and
forecasting module within the logistics area of R/3.
 We can use SOP to help us forecast future sales,
develop production plans and perform feasibility
studies
 A production plan could be developed based on the
sales plan.
1
SOP Process Flow
1
To Create a sales plan
 We can enter manually
 We can enter from forecast
 By transferring data from COPA and also SIS
 By transferring data from another product group
1
To Create a Production Plan
 1.Synchronous to sales
 2.Target Stock level
 3.Target Stock days
1
Disaggregation
 Creating a sales plan or a production plan at one level
of the product structure hierarchy does not creat lower
level plans. So we must disaggregation
 Many options exists when disaggregation
1
Demand Management

Demand Management
Sales Plan Prodn Plan Forecast Plan
Manual Planned Sales

Independent Demand Management Demand from
Requirements “Demand Program” Sales Orders
MRP/MPS
Demand mgmt will have product, qty & Rqd. Date

Demand Management Process
Demand Management
 Customer or sales requirements ( Export or Domestic).
 Planned independent requirements.
Planning strategies
 Methods of production for planning & manufacturing or procuring a
product.
Different planning strategies used are;
 Make to stock
 Make to order
 Planning with final assembly
 Planning for project

MRP

MRP Overview
Complete MRP Overview
MRP
Sales orders
Planned ind reqmts
Dep. reqmts
Reservations Planned Only for

materials procured
order
externally
Convert
Purchase Schedule
Production requisitions lines
order
Purchase
order
Stores
Warehouse Stock
Stores Stock
 SAP AG 1999
44
MRP- Stock Requirement List
45
Production Control

Production Methods

Production Methods
Discrete manufacturing:
 Frequently changing products
 MFG restricted production lots
 Varying sequence of work centers over which a product can run
Repetitive Manufacturing:
 Same product is produced over a longer period of time in one
production line
 Total quantity of the product is manufactured over a specific period of
time with a specific production rate per partial period

Batch Management
Batch Management
Batch Management:
Batch Number Assignment

You use this function to assign a batch with a number that uniquely
identifies it.
Batch Specification
You use this function to describe each batch uniquely using
characteristics and characteristic values. You specify the permitted
value range in the allocated material master record.
Batch Status Management

You use this function to indicate whether a batch is usable or
unusable. You set this status:
Manually in the batch master record or at goods receipt
Automatically in the usage decision in quality management
Production Orders

Production Order Overview
7 - Print Shop
Confirmation Slip
1 - Select 2 - Select 3 – Schedule Dates Floor Papers
BOM Routing (Fwd / Backward)
Release
Order 6 - Calculate
Planned Costs
Actual
Create Labor Confirm
Order 4 - Check Completion
Availability 8 - Issue
Cost Release Materials to
5 - Calculate Order 10 - Calculate
Capacity Actual Costs
9 - Receive complete
Goods
Issue goods into stock
Goods
Receipt

Production Order Settlement
 A Production Order collects all costs associated with making an inventorial item and
the order “picks up” the cost from Material master.
 Production cost analysis carried out after Final Confirmation & Order Settlement.
Production Order STATUS:

Created, Released,
Bill Order: 73 Confirmed, Delivered,
of Type: PP01 Settled
Material Plant: LR001
Sys Status:
CRT REL CNF DLV SETC
Quantities:
Total Produced: 100 Tons
Scrap: .001
Routing Confirmed: 100 Tons
Dates:
Schedule 09/15/95
Confirmed 09/16/95

Repetitive Manufacturing Process
REM MFG Process:

 Produce the same or similar products over a lengthy period of time.
 Total quantity is produced over a certain period at a certain rate per part-period.
 products always follow the same sequence through the machines and work
centers in production.
 Production confirmation against product cost collector.
REM Process mandatory field:
 Production Version.
 REM Profile
 Product cost collector.

Backflushing

Backflushing Process
 GR/GI will happen simultaneously at the time of Posting.

THANK YOU
© Copyright 2009 Tata Technologies. All rights reserved. All other trademarks are trademarks of their respective owners.
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Honda-Goa, 06th May 2009 1

Sales Order Material Availability Check

Sales Order / Forecast / Plan Invoice

Honda-Goa, 06th May 2009 3

Sales and Operations Planning

PP Basic Data : MRP

Material Master Planned order

Routing Back flushing

Honda-Goa, 06th May 2009 4

Company Company Code

Plants Plant 1 Plant 2 Plant 3

PC1 PC 2 PC 3 Storage Location SL 1 SL 2 SL 3

CC1 CC2 CC3

Work Center WC1 WC2 WC3

Honda-Goa, 06th May 2009 8

 A Plant is a organization unit that subdivides an

Honda-Goa, 06th May 2009 12

 Basic Data The material master is a Sales

Honda-Goa, 06th May 2009 15

Honda-Goa, 06th May 2009 16

Honda-Goa, 06th May 2009 17

 Why is this view used?

? production such as:

Shop Floor  Which departments use this view?

View is used to record following

Honda-Goa, 06th May 2009 19

Honda-Goa, 06th May 2009 20

A bill of material is a complete, formally structured

Honda-Goa, 06th May 2009 21

Motor Gear Exhaust Fly wheel Chain Frame Shaft

Combining single-level BOMs

Honda-Goa, 06th May 2009 22

Engineering Production Different types of BOM usage;

Honda-Goa, 06th May 2009 23

base quantity and unit of measure.

Honda-Goa, 06th May 2009 24

Honda-Goa, 06th May 2009 25

 The validity period is the time period during

Honda-Goa, 06th May 2009 26

Honda-Goa, 06th May 2009 27

Definition A work center is an organizational unit where

 Work center group Machine shop

 Assembly line Line 9

 Individual person John Doe

Honda-Goa, 06th May 2009 28

General data Basic data Name and description

Standard values Default values Control key

Capacity data Capacity

Scheduling data Scheduling Scheduling basis

Honda-Goa, 06th May 2009 29

Honda-Goa, 06th May 2009 30

 A routing describes the processing steps that must be performed to produce a

Honda-Goa, 06th May 2009 31

 Each individual routing is referred to as a group counter within the group

Group Group Group

Honda-Goa, 06th May 2009 32

 Manufacturing In-house components & finished goods.

Honda-Goa, 06th May 2009 33

Honda-Goa, 06th May 2009 34

Honda-Goa, 06th May 2009 40

Sales Plan Prodn Plan Forecast Plan

Manual Planned Sales

Demand mgmt will have product, qty & Rqd. Date