LESSON OVERVIEW
In this lesson you are familiarized with some of the most important special functions of repetitive manufacturing and some neighboring areas.
Business Example
Important stages of repetitive manufacturing include the dispatching of quantities on the production lines, material staging of the components, backflush of quantities produced and settlement of the costs collector. These functions are integrated with other areas in your company, such as controlling and warehouse management. Therefore, you must consider the many integration relationships when implementing repetitive manufacturing.
LESSON OBJECTIVES
After completing this lesson, you will be able to:
● Outline the integration of costing, controlling, and reporting to repetitive manufacturing
Cost Debit/Credit (Product-Related Cost Object Controlling)
Settlement in repetitive manufacturing is always period-based and based on the costs of the product cost collector (product-related cost object controlling).
Figure 57: Cost Debit/Credit (Product-Related Cost Object Controlling) ● Cost debit/ cost credit:
During the confirmation in repetitive manufacturing, the following costs are automatically posted to the product cost collector:
- Material costs for the components
- Production activities (only if a material cost estimate with price update has been carried
out in advance)
At the same time the product cost collector is credited with the according price of the assembly:
- The valuation price is taken for materials controlled with standard price.
- The moving average price is taken for materials controlled with the moving average
price.
Note:
Overheadshare determined periodically during period-end closing in Controlling using an overhead structure and are posted to the product cost collector. You can use a separate transaction in the Repetitive Manufacturing menu for this.
● Settlement: - Issue:
Components that differ from those planned may be used in production or the overhead cost rates may change. This results in variances in the product cost collector.
- Solution:
A settlement must be carried out. The aim of the settlement is to credit the product cost collector in full. During settlement, the costs not yet credited to the product cost collector are transferred. For a material that is valuated using the standard price, the variant costs are posted to the price difference account.
Integration with Controlling
Having covered the logistical master data there is the need for additional controlling master data.
Figure 58: Integration with Controlling
As orders are not allowed in classic repetitive manufacturing there is the need to cover the posting of production activities using material cost estimates with price updates.
Repetitive Manufacturing: Information Systems
Repetitive manufacturing supports various evaluation methods, some of the supporting special processes only.
Figure 59: Repetitive Manufacturing: Information Systems
In addition to analyses that use CO reports, data is updated into the Logistics Information System LIS by default (exception: planning data must be updated manually or in a
background job). A connection to the Business Information Warehouse (BW) is also standard.
Note:
Evaluations based on orders are not supported because the processing is not order-related.
Repetitive Manufacturing: Enhanced Functions
Apart from the basic functions, repetitive manufacturing provides and supports several additional and integrated functions.
Figure 60: Period-Based Repetitive Manufacturing: Additional Functions
Depending on the process you can make use of the following functions:
● Printing:
An MS Office link is available for printing work instructions (using MS Word) and printing the production list (using MS Excel).
● WIP (work in process):
To determine the work in progress or to post component backflushing more promptly, you can use reporting point processing (only in make-to-stock).
● Action control:
In terms of configurable materials, action control enables actions to be triggered automatically (for example, printing the component list).
● Handling unit management:
Repetitive manufacturing supports handling unit management during which goods and packaging are set up as a logistics unit.
● Serial numbers:
A serial number assignment is possible in repetitive manufacturing for a unique identification.
● Batches: Unit 3: Repetitive Manufacturing
The modelling of takts, and the sequence planning it involves, is represented by a separate function: Takt-based flow manufacturing.
LESSON SUMMARY You should now be able to:
● Outline the integration of costing, controlling, and reporting to repetitive manufacturing
Unit 3
Learning Assessment
1. Name some basic functions of repetitive manufacturing.
2. Why do you need a material cost estimate to calculate production activities in repetitive manufacturing?
Unit 3
Learning Assessment - Answers
1. Name some basic functions of repetitive manufacturing.
Planning line loading, Scheduling, Calculation and monitoring of capacity requirements, Costing, Avaiability checks, Printing dispatch lists, Printing operational method sheet, Material staging, Goods issue/backflushing, Goods receipt with final confirmation, Period- end closing.
2. Why do you need a material cost estimate to calculate production activities in repetitive manufacturing?
Due to the handling of production quantities with planned orders there is no real "order" object to collect and carry the production activities. This is covered by a material cost estimate and subsequent price update in the material master.
UNIT 4
The Kanban Principle
Lesson 1
Drafting Kanban 150
Lesson 2
Using Kanban in Production 153
Exercise 19: Check a Kanban Material 161 Exercise 20: Check the Kanban Control Cycle 165 Exercise 21: Proceed Kanban Execution 167
UNIT OBJECTIVES
● Explain the characteristics of the Kanban principle ● Describe the main steps of the Kanban procedure