Processing - SCM340-ProcessOrdersInstructor.pdf

Multilevel MRP 55 Minutes

Process Management 30 Minutes

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Unit 2: Order Creation

Process Order Creation 40 Minutes

Exercise 3: Creating Process Orders 20 Minutes

Exercise 4: Order Type 10 Minutes

Master Data Selection 50 Minutes

Exercise 5: Master Data Selection 20 Minutes Exercise 6: Production Version Selection Based on a

Quota Arrangement 15 Minutes

Exercise 7: Manual Production Version Selection 10 Minutes Process Order Execution Scheduling 65 Minutes

Exercise 8: Scheduling 25 Minutes

Exercise 9: Planned Costs 3 Minutes

Exercise 10: Mass Processing 2 Minutes

Unit 3: Process Planning and Order Release

Material Availability Check 30 Minutes

Exercise 11: Material Availability Check:

Customizing Settings 15 Minutes

Exercise 12: Material Availability Check: Applying

in Process Orders 20 Minutes

Batch Determination 55 Minutes

Exercise 13: Batch Determination: Overview 5 Minutes Exercise 14: Batch Determination: Customizing

Settings 15 Minutes

Exercise 15: Batch Determination: Batch Search

Strategy 10 Minutes

Exercise 16: Batch Determination: How to Use it

in the Process Order 10 Minutes

Exercise 17: Batch Determination: Batch Entry

Scenarios 10 Minutes

Material Quantity Calculation 50 Minutes

Exercise 18: Batch Determination and Material

Quantity Calculation 20 Minutes

Resource Reservation 50 Minutes

Exercise 19: Resource Reservation: Overview 5 Minutes Exercise 20: Resource Reservation: Using the R/3

Capacity Planning Table 10 Minutes

Order Release 30 Minutes

Exercise 21: Statuses and Business Transactions 15 Minutes Exercise 22: Production Scheduling Profile Minutes Exercise 23: System Statuses and User Statuses 10 Minutes Unit 4: Material Staging and Withdrawal

SCM340 Course Overview

Material Staging Process 30 Minutes

Exercise 24: Material Staging 10 Minutes

Exercise 25: Goods Issue Posting 20 Minutes Unit 5: Confirmation Procedures

Confirmations for Process Orders 30 Minutes Exercise 26: Function of Confirmations and

Confirmation Procedures 15 Minutes

Exercise 27: Defining Confirmation Parameters

in Customizing 15 Minutes

Exercise 28: Confirmation Procedures 15 Minutes Confirmations and Material Movements 30 Minutes

Exercise 29: Order Confirmation with Backflushing

and Automatic Goods Receipt 15 Minutes

Unit 6: Goods Receipt and Order Settlement

Goods Receipt Posting 30 Minutes

Exercise 30: Goods Receipt 20 Minutes

Order Settlement 30 Minutes

Exercise 31: Order Settlement 15 Minutes

Unit 7: Archiving and Deleting Completed Process Orders

Order Closing 30 Minutes

Unit 8: Process Data Evaluation

Overview of Information System 55 Minutes

Exercise 32: Order Information System 10 Minutes Unit 9: Production in Compliance With GMP

Introducing Digital Signatures 55 Minutes

Exercise 33: Digital Signature: Definition and

Application 15 Minutes

Exercise 34: Individual Signatures and Signature

Strategies 15 Minutes

Approved Process Orders 50 Minutes

Exercise 35: Approved Process Orders 15 Minutes Material Identification and Material Reconciliation 50 Minutes Exercise 36: Material Identification 15 Minutes Exercise 37: Material Reconciliation 15 Minutes Integrating Production With Quality Management 45 Minutes Exercise 38: Integration with Quality Management 15 Minutes

Batch Record 40 Minutes

Exercise 39: Batch Record 15 Minutes

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Course Goals

This course will prepare you to:

• Use process orders

• Make system settings for process order execution

• Understand further selected topics regarding process manufacturing

Course Objectives

After completing this course, you will be able to:

• Explain where process orders fit within Supply Chain Management

• Carry out the individual steps of process order management

• Use the main order management functions

• Make important system settings

• Consider integration relationships

• Learn about further special functions by studying on your own

SAP Software Component Information

The information in this course pertains to the following SAP Software Components and releases:

Trainer Profile

Level of Knowledge Required

• Very good knowledge of the entire logistics process and the functions of production planning and control in process manufacturing:

– Production planning in SAP R/3 and SAP APO (basic knowledge required)

– APO Core Interface (CIF); integration model (basic knowledge required)

– SAP R/3 Material Requirements Planning (more detailed knowledge recommended)

– Process order execution – Process management; PI sheet – Production in compliance with GMP

SCM340 Course Overview

• Very good knowledge of the SAP R/3 master data used in production planning/process manufacturing:

– Materials

– SAP R/3 Classification System

– Batches; basic knowledge of the functions of SAP R/3 Batch Management

– Resources – Capacities

– Production versions, master recipes, bills of material (BOMs)

• Basic knowledge of the SAP APO master data used in production planning/process industries:

– Products – Capacities

– Production process models (PPMs)

• SAP R/3 Classification System

• Very good knowledge of the functions and Customizing settings for process order execution in SAP R/3

– Order creation: Planned order conversion (SAP APO and SAP R/3);

recipe selection, scheduling, calculation of planned costs – Material availability check

– Batch determination

– Capacity requirements planning, resource reservation (SAP APO and SAP R/3; basic knowledge required)

– Order release – Confirmations – Material movements

– Order closing: Order settlement, order reorganization

– Production in compliance with GMP: Order approval, material identification, quality checks, material reconciliation, batch record, digital signature

– Process data evaluation: Order information system, process message evaluations

The following courses are recommended to help you prepare:

Supply Chain Manufacturing Overview

PLM115 Master Data for Process Manufacturing

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SCM344 Process Management

The following online help is recommended to help you prepare:

Production Planning – Process Industries Hints on Preparing This Course

Beside the prerequisites mentioned above, the course requires knowledge in other business areas (cost controlling, warehouse management, inventory management, quality management,...).

Allow for enough time before the actual course date to thoroughly work through this instructor guide together with the participant handbook for SCM340. Do all exercises and system demonstrations mentioned in the trainer guide and participant handbook.

Training System

Before the training course, the system administrator must tell you which two systems you can use for the SAP components R/3 and APO.

The course participants will do all exercises in the SAP component R/3.

Most of the system demonstrations by the trainer will be made in the SAP component R/3. To demonstrate the integration between SAP R/3 and SAP APO, a few simple system demos should be made in the SAP component APO.

Data Required

The trainer uses separate demo data or group 00 or 99 (see following descriptions of demos.)

The participants use the groups 01 to 30.

The data required for the exercises can be found in the participant handbook for each exercise.

User ID and Passwords for Course Participants For example

User ID: PI-## ## = group number (01 to 30) Password: INIT

SCM340 Course Overview

To create users by copying, you can use transaction ZUSR. To make mass changes to user IDs, you can use transaction SU10.

Note: The first and last names must be maintained in the address data as well as an output device in the defaults (for example, A000) for the users.

Preparation in the System

When accessing R3 through a Citrix system, you need to make the following setting: IMG→Cross-Application Components→Document Management→ General Data→Define Data Carrier

Choose the folder Define Data carrier type server front end Choose Type: PC and enter Path: n:\

(n is your homedrive, this can be checked by clicking on the Start button in your citrix session)

Instructor’s Discretion: Part way through the course you may wish to create the background jobs for sending control recipes and process messages. You may wish to include this as a demo to show how the system adminstrators would set these jobs up in the Productive SAP R3 system. Note: Exercises will continue to say send control recipes and process messages so you will need to point these out!

Transaction SM36 and select Job Wizard

Name: e.g. send control recipes, Job class:A - High Priority (job will run immediately then)

Choose Continuethen select ABAP program radial button

ABAP Program name:RCOCB006 (control recipes), next job this would be RCOCB002 (Process messages)

Choose Continue

Select After event then Event Id: SAP_NEW_CONTROL RECIPES, and next job SAP_NEW_PROCESS_MESSAGES

Choose Continue

Select Period (in order for job to run after each control recipe) Choose Complete

The system administrator must have executed the ZT_SCM340 CATT for groups 00 to 30 before the training course starts.

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CATTs

A translation CATT has been integrated into ZT_SCM340 for English training courses.

Contact Person for CATTs:

Mirella Burman

Unit 1

Overview of Production Planning for Process Industries

Ask the participants to give a brief introduction about themselves. This will help you understand the background of each participant. Explain the course goals and objectives and the way you plan to teach the course.

Unit Overview

In this unit, you will understand the integration of process manufacturing in the mySAP Business Suite. You will learn the cross-application process flow of process manufacturing and will be able to list the master data required for process flow. You will understand the structure and elements of a process order and the process order cycle. You will also be able to explain the planning process for multi-stage manufacturing.

Unit Objectives

After completing this unit, you will be able to:

• Describe the integration of process manufacturing in the mySAP Business Suite

• Identify process order components, attributes, and required master data, as well as describe the cross-application process flow

• Describe the structure and elements of a process order

• Present an application of multi-level MRP

• Describe process management

Unit Contents

Lesson: Overview of Production Planning for Process Industries... 3 Demonstration: SOP and Demand Management ... 7

1

Demonstration: MRP & Process Order Creation ... 12

Exercise 1: Production Planning Process Flow ... 15

Lesson: Process Order Processing ... 25

Demonstration: Elements of a Process Order ... 28

Demonstration: Order Processing... 30

Exercise 2: Processing ... 33

Lesson: Multilevel MRP ... 38

Lesson: Process Management... 44

SCM340 Lesson: Overview of Production Planning for Process Industries

Lesson:

Overview of Production Planning for Process Industries

Lesson Duration: 55 Minutes

Lesson Overview

This lesson describes the integration of process manufacturing in the mySAP Business Suite and the cross-application process flow of process manufacturing. The lesson describes the characteristics of order-controlled production using process orders and describes the master data required for the process flow.

Lesson Objectives

After completing this lesson, you will be able to:

• Describe the integration of process manufacturing in the mySAP Business Suite

• Identify process order components, attributes, and required master data, as well as describe the cross-application process flow

Explain the application of process orders using the example of the chemical industry. Elaborate on the characteristics of process order-controlled production. Illustrate the logistics process, from sales planning to process order creation, using a simple application in SAP R/3.

Business Example

FPD Corporation is a very diverse company with a manufacturing product line includes food, fruit juice, and pharmaceuticals. They recently added detergent to their product mix. Products are manufactured in batches using manufacturing orders. To manage these businesses more efficiently, they want to integrate the planning and manufacturing processes using the mySAP SCM solution. You are a member of the team that is implementing SAP and your focus is process orders. You need to create the entire process chain for in-house production, which will enable your company to organize, control, and execute production within the SAP System.

3 Overview of mySAP Business Suite

Figure 1: mySAP Business Suite

The mySAP Business suite is a complete package of solutions and services, which enables customers, partners, and employees to work together successfully.

The mySAP Business suite unites broad business- and industry-specific experiences within a platform of e-business solutions, services, and technologies. The suite is based on open, flexible architecture that enables cross-enterprise collaboration and supports databases, applications, operating systems, and hardware of major suppliers.

The mySAP Business suite offers cross-industry and industry-specific solutions. For example, cross-industry solutions include:

• mySAP Supply Chain Management (SCM)

• mySAP Product Lifecycle Management (PLM)

• Each solution has different key functional areas. For example, key functional areas in mySAP SCM are:

– SCM Planning – SCM Manufacturing

SCM340 Lesson: Overview of Production Planning for Process Industries

Each solution has key functional areas. For example, the following are the key functional areas in mySAP SCM:

• SAP R/3 Enterprise

• SAP Advanced Planner and Optimizer (APO)

• SAP Business Information Warehouse (BW)

Integration of R/3 Production Planning and APO Production Planning

A plug-in enables interfaces for the integration of SAP R/3 Enterprise with SAP BW or SAP APO. The interface between SAP R/3 Enterprise and SAP APO is called APO Core Interface (CIF).

Figure 2: SC Planning: Overview

Planning includes tasks that are performed using various components in SAP R/3 Enterprise or SAP APO. You can use both systems for planning. The systems are integrated through the CIF interface.

Demand planning uses past sales quantities to calculate the future demand program, for example, to determine planned independent requirements.

Flexible planning using SAP R/3 enterprise, standard SOP using SAP R/3, or Demand Planning using APO-DP can be used to achieve this.

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Supply Network Planning, APO, enables for cross-plant planning of all procurement operations.

Sales orders are usually entered in the SAP R/3 Enterprise. The Available to Promise (ATP) check of a sales order can take place globally in APO.

Material requirements planning can be executed in both systems. In SAP R/3 Enterprise, capacity requirements planning is executed separately. Quantities and capacities are planned simultaneously in APO Production and Detailed scheduling (PP/DS).

Figure 3: Integration Between Manufacturing and Planning

Production control represents the central part of a complex process chain ranging from planned independent requirements or customer requirements through goods receipt of finished products.

SCM340 Lesson: Overview of Production Planning for Process Industries

Demonstration: SOP and Demand Management

Purpose

The purpose of this demo is to review production planning. Review the types of demand and the primary planning strategies, i.e. MTS and MTO. Point out when disaggregrating that if you deselect the invisible transfer indicator then you need to save for each material in the product group, otherwise you will not get a forecast for that material.

System Data System:

Client:

User ID:

Password:

Set up instructions: No setup necessary

1. Demonstrate Exercise 1, Task 1 SOP and Task 2 Demand Mgt

Defining Process Order

• A Process Order:

– Describes the request for production to manufacture a material at a specific date in a specific quantity in one production run.

– Defines which resources or means of production are used and which ingredients are required to manufacture the material.

– The main control instrument in production and is used to describe, update, and monitor all production-relevant planned and actual data.

– Usually based on a master recipe.

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Figure 4: Process Order (II)

A process order describes which material is to be produced, its quantities and dates, the means of production and production methods, and the production costs and cost objects to which costs should be assigned. This information is specified in the planned data and updated in the form of actual production data.

SCM340 Lesson: Overview of Production Planning for Process Industries

Integrating Process Order Components

Figure 5: Cross-Application Process Flow

Process order management represents a central part of a complex process chain ranging from an independent requirement, planned or customer requirement, through to goods receipt of finished products.

Process order management controls the in-house production process of products, and if required, together with process management.

Process order execution is, for example, integrated with the functions of capacity requirements planning, costing, and inventory management. It also has connections or interfaces to Process Control Systems (PCS), R/3 Quality Management, and external Laboratory Information Systems (LIMS).

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Figure 6: Master Data for Process Orders

Master data typically remains unchanged for long periods of time in the SAP System. It contains information that is often used in the same manner for similar objects and business processes.

The material master record is the central master record in logistics. In general, SAP defines a material as a substance or commodity that is bought or sold on a commercial basis or is used, consumed, or created in production.

A batch is a unique subset of a material. The batches of one material are managed separately in stock. With regard to the production process, a batch is a quantity of a material produced during a given production run. This quantity represents a unit with unique specifications.

The master data for resources describes the means of production in the production process.

A production version determines the alternative Bill Of Material (BOM) is used in combination with a master recipe for process order manufacturing.

The master data of master recipes describes the manufacture of one or more materials in a production run without relating to a particular order.

SCM340 Lesson: Overview of Production Planning for Process Industries

Material BOMs describe the structure of products produced in a company.

They are usually created and maintained from the master recipe, integrated maintenance.

Figure 7: Material and Batch

In the SAP System, batch master records always depend on their

corresponding material master records. Batches are created for a material.

In general, the data of a material master record is valid for all the batches assigned to it. In contrast, a batch master record contains data that uniquely identifies a batch and characterizes it as a non-reproducible unit.

Characteristic batch specifications are assigned using characteristics from the classification system in the material master and are inherited by the corresponding batch master records.

If a material should be produced and managed in batches, the Batch

Management Requirement indicator should be set in the material master record.

A batch master record is usually created by the system in the background for specific business transactions such as goods receipts. Users can also create batch master records directly in master data maintenance.

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Figure 8: Batch Management in Supply Chain Management

Batch management is used in all areas of logistics. A batch can be traced across the whole supply chain, from the receipt of raw materials to processing in production and creation of the final product, through to sales and delivery to the customer.

A batch master record can be used to assign a batch to a material at various places along the supply chain. For example, if the partial quantity of a material produced in batches leaves a production process or process order with specifications, it is posted to stock with a batch number and can be uniquely identified.

If a batch with specifications is required in the supply chain, the batch determination function can be used to find suitable batches in stock. In production, batch determination is, for example, used in process orders to find and withdraw suitable material components for the product to be produced.

Demonstration: MRP & Process Order Creation

Purpose

The purpose of this demo is to review production planning using MRP, conversion of a planned order to a process order, and review of results in the stock-requirements list.

SCM340 Lesson: Overview of Production Planning for Process Industries

System Data System:

Client:

User ID:

Password:

Set up instructions: No setup required

1. Demonstrate Exercise 1, Task 3 MRP and Task 4 Process Order Creation

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SCM340 Lesson: Overview of Production Planning for Process Industries

Exercise 1: Production Planning Process Flow

Exercise Duration: 5 Minutes

Exercise Objectives

After completing this exercise, you will be able to:

• Describe a Product group, Sales plan, and production plan

• Learn how to disaggregate product group quantities and transfer to demand management

• Describe planned independent requirements and the stock requirements list

• Execute a planning run

• Convert a planned order

Business Example

Note: In this exercise, you will use a simple example to illustrate the cross-application process of process manufacturing from sales planning through to process order creation in the SAP R/3 System.

It is assumed that the basis for demand is Sales and Operations Planning in SAP R/3.

You need to display the product group T-ICE## ice cream products.

In document SCM340-ProcessOrdersInstructor.pdf (Page 7-200)