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Cars. Coffee. Your computer screen. With this book, you'll discover the nuances behind the production planning processes you need to work with any type of material, regardless of your background.

Whether your company uses discrete, process, or repetitive manufacturing, you need to keep your supply chain running smoothly and at minimal cost. This book is here to break down the different planning processes for you to do just that. You'll get an in-depth understanding of the business processes behind production planning, and learn what's required of your SAP system for each method. You'll understand what the common elements are between the processes (master data and architecture), and then explore the detailed configuration steps for each type of manufacturing approach. You'll also find helpful information on how to use shift notes, digital signatures, and the Early Warning System, which will help take your planning to the next level.

Highlights include:

• SAP Demand Management
• Long-Term Planning
• Material requirements planning
• Digital signature
• Shift notes and reports
• Early Warning System
• Document Management System
• Integration with SAP ERP components
• Forecasting
• XSteps
• Flexible planning
• Process Management

Production Planning and Control with SAP ERP

Acknowledgments ... 27




PART I: Production Planning Core Concepts ... 29



1. Introduction ... 31




1.1 ... Goals of This book ... 31

1.2 ... Target Audience ... 32

1.3 ... Structure and Content ... 33



2. Organizational Structures in SAP ERP ... 37




2.1 ... Breaking Down the Structure into Units ... 37

2.2 ... Production Planning in SAP ERP ... 47

2.3 ... Product Cost Planning ... 62

2.4 ... SAP Calendar ... 64

2.5 ... Summary ... 68




PART II: Configuration Specifics for Manufacturing Types ... 71



3. Configuration Basics of Discrete Manufacturing ... 73




3.1 ... Material Master ... 74

3.2 ... Bill of Materials (BOM) ... 75

3.3 ... Work Center ... 81

3.4 ... Routing ... 91

3.5 ... Production Order Creation ... 92

3.6 ... Order Type-Dependent Plant Parameters ... 97

3.7 ... Production Scheduling Profile ... 102

3.8 ... Default Values for the Generation of Operations ... 104

3.9 ... Availability Check ... 105

3.10 ... Stock and Batch Determination ... 111

3.11 ... Scheduling ... 111

3.12 ... Reduction Strategy ... 116

3.13 ... Confirmation ... 118

3.14 ... Reason for Variances ... 126

3.15 ... Trigger Points ... 127

3.16 ... Define Print Control ... 128

3.17 ... Background Jobs ... 129

3.18 ... Process Integration ... 131

3.19 ... Summary ... 131



4. Configuration Basics of Process Manufacturing ... 133




4.1 ... Master Data in Process Industries ... 134

4.2 ... Order Type-Dependent Parameters ... 138

4.3 ... Production Scheduling Profile ... 140

4.4 ... Process Management ... 142

4.5 ... Process Messages ... 147

4.6 ... Process Instruction Category ... 153

4.7 ... Control Recipe/Process Instruction Sheets ... 167

4.8 ... Background Jobs ... 172

4.9 ... Process Management Configuration: At a Glance ... 174

4.10 ... Process Management: Configuration and Implementation Roadmap ... 175

4.11 ... Process Manufacturing Cockpit ... 177

4.12 ... Summary ... 179



5. Configuration Basics of Repetitive Manufacturing ... 181




5.1 ... Repetitive Manufacturing Profile ... 182

5.2 ... Scheduling Planned Orders ... 194

5.3 ... Display ... 195

5.4 ... Material Staging ... 197

5.5 ... Global Settings for Confirmation and the Logistics Information System ... 198

5.6 ... Operational Methods Sheet ... 199

5.7 ... Summary ... 200




PART III: Production Planning Workflow by Production Type ... 201



6.

Production Planning for Discrete Manufacturing ... 203


6.1 ... Process Overview ... 204

6.2 ... Master Data ... 205

6.3 ... Production Order Management ... 243

6.4 ... Release Production Order ... 265

6.5 ... Printing ... 268

6.6 ... Material Withdrawal ... 271

6.7 ... Confirmation ... 278

6.8 ... Goods Receipt ... 285

6.9 ... Postprocessing ... 288

6.10 ... Settlement and Completion ... 292

6.11 ... Additional Functions and Information Systems ... 293

6.12 ... Summary ... 298



7. Production Planning for Process Industries ... 299




7.1 ... Process Manufacturing Overview ... 300

7.2 ... Master Data in Process Manufacturing ... 302

7.3 ... Process Management ... 315

7.4 ... Process Order Execution ... 329

7.5 ... Process Management in Action ... 330

7.6 ... Execution Steps (XSteps) ... 341

7.7 ... Process Manufacturing Cockpit ... 354

7.8 ... Process Messages Evaluation ... 355

7.9 ... Miscellaneous Cross-Manufacturing Topics ... 357

7.10 ... Summary ... 359



8. Production Planning for Repetitive Manufacturing ... 361




8.1 ... Overview ... 362

8.2 ... Repetitive Manufacturing Master Data ... 365

8.3 ... Material Requirements Planning in Repetitive Manufacturing ... 388

8.4 ... Collective Availability Check ... 391

8.5 ... Operational Method Sheet ... 392

8.6 ... Planning Table in Repetitive Manufacturing ... 393

8.7 ... Material Staging ... 402

8.8 ... Production List ... 407

8.9 ... Confirmation ... 409

8.10 ... Reversals and Scrap ... 417

8.11 ... Collective Confirmation ... 422

8.12 ... Costing Activities (Cost Object Controlling) ... 423

8.13 ... Reporting ... 424

8.14 ... Summary ... 426




PART IV: Production Planning Workflow Tools ... 427



9. Sales and Operations Planning ... 429




9.1 ... Sales and Operations Planning: An Overview ... 431

9.2 ... Flexible Planning ... 452

9.3 ... Maintaining Version Management ... 477

9.4 ... Forecasting ... 479

9.5 ... Rough-Cut Planning Profile ... 486

9.6 ... Events ... 491

9.7 ... Mass Processing in SOP ... 496

9.8 ... Standard Analysis in Flexible Planning ... 501

9.9 ... Summary ... 503



10. SAP Demand Management ... 505




10.1 ... Planning Strategy ... 506

10.2 ... Planned Independent Requirements ... 515

10.3 ... Customer Independent Requirements ... 520

10.4 ... Summary ... 527



11. Material Requirements Planning ... 529




11.1 ... Process Overview ... 530

11.2 ... Scrap ... 546

11.3 ... Safety Stock ... 549

11.4 ... MRP Procedures ... 551

11.5 ... Consumption-Based Planning ... 557

11.6 ... Forecast-Based Consumption Planning ... 562

11.7 ... Types of Planning Runs ... 567

11.8 ... Scheduling ... 570

11.9 ... Procurement Proposals ... 576

11.10 ... Executing Material Requirements Planning ... 582

11.11 ... Configuration Settings for MRP ... 590

11.12 ... MRP Run Analysis ... 594

11.13 ... Planning Calendar ... 606

11.14 ... MRP Areas ... 609

11.15 ... Summary ... 616



12. Long-Term Planning (LTP) ... 617




12.1 ... LTP Master Data and Planning Data ... 618

12.2 ... Long-Term Planning: Business Process ... 623

12.3 ... Further Options in LTP ... 631

12.4 ... Evaluate Information Systems for LTP ... 638

12.5 ... Summary ... 643




PART V: Optimizing Production Planning ... 645



13. Special Procurement Types ... 647




13.1 ... Overview ... 648

13.2 ... Phantom Assembly ... 650

13.3 ... Direct Production ... 651

13.4 ... Direct Procurement ... 656

13.5 ... Stock Transfer (Inter-Plant Transfer) ... 659

13.6 ... Withdrawal from Alternate Plant ... 662

13.7 ... Production in Alternate Plant ... 664

13.8 ... Subcontracting ... 666

13.9 ... Consignment ... 670

13.10 ... Pipeline Material ... 673

13.11 ... Summary ... 673



14. Capacity Requirements Planning ... 675




14.1 ... Process Overview ... 676

14.2 ... Capacity Requirements and Capacity Evaluation ... 677

14.3 ... Finite Scheduling ... 693

14.4 ... Dispatching ... 695

14.5 ... Capacity Planning Table ... 711

14.6 ... Summary ... 717



15. Classification ... 719




15.1 ... Overview ... 720

15.2 ... Assigning the Material Class to the Material Master ... 726

15.3 ... Finding Objects in Classes ... 729

15.4 ... Assigning an Equipment Class to Equipment ... 731

15.5 ... Summary ... 733



16. Engineering Change Management ... 735




16.1 ... ECM Configuration ... 736

16.2 ... Change Master ... 751

16.3 ... Engineering Change Request (ECR)/Engineering Change Order (ECO) ... 757

16.4 ... ECR/ECO Step-by-Step Approach: At a Glance ... 767

16.5 ... Summary ... 768



17. Co-Products and By-Products in Production Processes ... 769




17.1 ... Check in Material Master ... 771

17.2 ... Bill of Materials (BOM) ... 774

17.3 ... Process Order ... 776

17.4 ... Goods Issue ... 778

17.5 ... Confirmation ... 780

17.6 ... Goods Receipt ... 782

17.7 ... Documented Goods Movement ... 784

17.8 ... Cost Analysis ... 785

17.9 ... Summary ... 787



18. Shift Notes and Shift Reports ... 789




18.1 ... Shift Note Overview ... 790

18.2 ... Configuration for Shift Notes ... 791

18.3 ... Configuration for Shift Reports ... 812

18.4 ... Summary ... 822



19. Document Management System (DMS) ... 823




19.1 ... DMS Configuration ... 823

19.2 ... DMS in Action ... 837

19.3 ... WebDocuments ... 846

19.4 ... Additional Features of DMS ... 850

19.5 ... Summary ... 855



20. Digital Signature ... 857




20.1 ... Configuration Steps to Set Up a Digital Signature ... 858

20.2 ... Digital Signature in Action ... 864

20.3 ... Digital Signature Logs ... 869

20.4 ... Application of Digital Signature in SAP ERP Components ... 871

20.5 ... Summary ... 874




PART VI: Monitoring and Evaluation ... 875



21. Early Warning System ... 877




21.1 ... Overview ... 877

21.2 ... Exceptions ... 879

21.3 ... Set Up Periodic Analysis ... 885

21.4 ... Schedule an EWS ... 887

21.5 ... EWS in Action ... 889

21.6 ... Exception Analysis ... 892

21.7 ... Summary ... 895



22. Reporting in SAP ... 897




22.1 ... The Basics of Reporting ... 898

22.2 ... Order Information System ... 901

22.3 ... Missing Parts Information System ... 919

22.4 ... Standard Analysis Reports ... 920

22.5 ... Data Browser ... 932

22.6 ... QuickViewer ... 937

22.7 ... SAP Query ... 942

22.8 ... Assign a Transaction Code to a Query ... 945

22.9 ... Summary ... 947



23. Further Integration of Production Planning with Logistics Functions ... 949




23.1 ... Integration Prerequisites ... 950

23.2 ... Integration Aspects of Production Planning with Quality Management ... 952

23.3 ... Integration Aspects of Production Planning with Materials Management ... 967

23.4 ... Integration Aspects of Production Planning with Sales and Distribution (Make-to-Order Production) ... 973

23.5 ... Further Integration Aspects of Production Planning with Sales and Distribution (Assembly Processing) ... 977

23.6 ... Integration Aspects of Production Planning with Project System (Engineer-to-Order Production) ... 979

23.7 ... Integration Aspects of Production Planning with Plant Maintenance ... 985

23.8 ... Integration Aspects of Production Planning with Manufacturing Execution ... 985

23.9 ... Integration Aspects of Production Planning with Manufacturing Integration and Intelligence ... 986

23.10 ... Summary ... 987



Appendices ... 989


A ... Comparison Table of Production Types ... 991

B ... Glossary ... 997

C ... The Author ... 1017



Index ... 1019