SAP Best Practices for Discrete Manufacturing
V1.605
General Information
SAP Best Practices for Discrete Manufacturing was developed for small and midsize
manufacturers to implement a solution quickly and easily.
By means of an entry-level offering for manufacturing companies, you gain built-in
support for the best business practices in the industry.
Functionalities
The SAP Best Practices for Discrete Manufacturing V1.605 solution supports your
business in the following areas :
Materials management
Production planning and control
Sales and distribution
Logistics, product life-cycle management, and quality management
Accounting
Controlling
SAP BP for Discrete Manufacturing V1.605
Solution Scope (1 of 2)
New ScenariosEnhanced Scenarios
Manufacturing Sales Materials Management Financial Accounting
Analytics
Make-to-Stock Production – Discrete Industry
Make-to-Order Production with Variant Configuration
Make-to-Order Production without Variant Configuration
Repetitive Manufacturing
Production Subcontracting (External Processing)
Rework Processing for Stock-Manufactured Material Rework Processing for Work-in-Process
Quality Management (QM) in Discrete Manufacturing
Manufacturing with Kanban Supply in Production
Planning and Processing of Semifinished Goods Co-Product Manufacturing Tool Production
Engineer-to-Order (ETO) – Project Assembly
Make-to-Stock (MTS) Production with Order Split
Records Management
Lean Manufacturing: Heijunka Leveling
Sales Processing Using 3rdParty (w. Ship.Not.) Credit Management
Sales Order Processing – Sale from Stock Free of Charge Delivery
Returns and Complaints Sales Quotation
Sales Order Processing for Prospect Sales Processing using Third Party (without Shipping Notification)
Sales of Nonstock Item with Order Specific Procurement
Debit Memo Processing Foreign Trade Export Processing Customer Consignment Processing Returnables Processing
Batch Recall
Lean Warehouse Management
Sales Order Processing with Customer Down Payment
Sales: Period End Closing Operations Credit Memo Processing
Handling Unit Management (HUM) for Production Order
Sales with Scheduling Agreements
Engineer-to-Order (ETO) – Quotation Processing
Batch Management Serial Number Management
Quality Management for Procurement with Vendor Evaluation
Quotation for Procurement Consumable Purchasing Procurement without QM
Stock Handling: Scrap and Blocked Stock Procurement Contract
Stock Transfer with Delivery Stock Transfer without Delivery Return to Vendor
Physical Inventory/ Inventory Count and Adjustment
Subcontracting
Procurement & Consumption of Consigned Inventory
Foreign Trade Import Processing
Purchasing with JIT Delivery Schedules Advanced Batch Management
Outsourced Manufacturing Third-Party Order Processing with Subcontracting General Ledger Accounts Receivable Accounts Payable Cash Management Asset Accounting
Asset Acquisition through Direct Capitalization
Asset Acquisition for Constructed Assets (Investment Orders)
Activate Document Splitting Segment Reporting Internal Order R&D Actual
Overhead Cost Accounting – Actual Period End Closing Financial Accounting Period End Closing Projects
Internal Order for Marketing and Other Overhead Actual
Activate Document Splitting for Discrete Manufacturing
SAP ERP Reports for Accounting
Controlling
Purchased Material Price Planning General Cost Center Planning Manufacturing Cost Center Planning Internal Order R&D Planning
SAP BP for Discrete Manufacturing V1.605
Solution Scope (2 of 2)
Services
Spot Consulting with Fix Priced Billing Internal Project
Internal Maintenance
Service with Time & Material Based Billing Service with Fixed Price Billing
Procurement of Third-party Resources External Procurement Services Depot Repair
Period End Closing Service Orders Maintenance and Warranty Processing Easy Depot Repair
Cross Functions
Period End Closing Activities Period End Closing “General” Plant Inventory Valuation for Year End Closing Time Recording
Industry-Specific Scenarios (1 of 3)
SAP Best Practices for Discrete Manufacturing V1.605 provides the following
industry-specific scenarios
:
226: Handling Unit Management (HUM) for Production Order
227: Quality Management in Discrete Manufacturing
229: Advanced Batch Management
230: Purchasing with JIT Delivery Schedules
231: Sales with Scheduling Agreements
232: Engineer-to-Order (ETO) – Quotation Processing
240: Engineer-to-Order (ETO) – Project Assembly
233: Manufacturing with KANBAN Supply into Production
234: Planning and Processing of Semifinished Goods
New Scenarios Enhanced Scenarios
Industry-Specific Scenarios (2 of 3)
New Scenarios Enhanced Scenarios
SAP Best Practices for Discrete Manufacturing V1.605 provides
the following industry-specific scenarios
:
236: Tool Production
237: Sales Returns with Quality Management (QM)
238: Cash Sales Order
239: Shipping and Receiving with Warehouse Management
248: Make-to-Stock Production with Order Split
249: Outsourced Manufacturing
250: Advanced Customer Returns Management
252: Third-Party Order Processing with Subcontracting
253: Lean Manufacturing: Heijunka Leveling
Industry-Specific Scenarios (3 of 3)
New Scenarios Enhanced Scenarios
SAP Best Practices for Discrete Manufacturing V1.605 provides
the following industry-specific scenarios
:
245: Activate Document Splitting for Discrete Manufacturing
274: Maintenance and Warranty Processing
Handling Unit Management (HUM) for Production (226)
Purpose
Handling Unit Management (HUM) is used to control logistical processes.
A handling unit represents a physical object in the SAP system. It consists of a load carrier, one or more packed products and an unlimited quantity of packaging materials. Each handling unit has a unique identification number, which is typically printed as a barcode on a material tag.
You can specify the material and the quantity that is to be packed in certain packaging, that is, in one handling unit. These requirements are reproduced in a packing instruction. This packing instruction can be used to create handling units automatically.
Benefits
Automatic packaging according to packing instructions
Track movements of groups of individual materials by tracking the handling units that contain them
Full integration into the logistic chain
The scenario offers you the possibility to demonstrate HUM with or without warehouse management
Key process flows covered
Creation and release of production order for handling unit (HU) production
HU packaging in production order
Goods receipt for produced HU
Monitoring of HU
Confirming production of HU
HU handling with WM or HU handling without WM
Quality Management in Discrete Manufacturing (227)
Purpose
This scenario deals with quality inspection activities during the production process. Quality activities are required both when a product is manufactured in-house and when the production involves external processing where parts of the production process are done by a subcontractor.
Benefits
Two sub-scenarios to cover both goods acceptance and goods rejection or acceptance and rejection of the external processing respectively.
Quality Notification to track quality issues, and trigger further actions, such as re-work or scrapping
Key process flows covered
QM for goods receipt of production order QM with In-process control
QM for goods receipt of external processing
Acceptance and rejection of goods/ external processing work are both covered
Advanced Batch Management (229)
Purpose
You get the complete batch history data including the evolution of a batch, by considering all relevant batch-related object types (BRO types) maintained in different SAP and external systems.
Benefits
To track the transactional data related to batches
To find out where a batch was used, e.g. to perform a batch recall or for evaluation purposes
To find out where a batch is used, e.g. in which stocks or inspection lots or material documents
To have a single point of batch maintenance
Key process flows covered
Batch information cockpit with Batch History
Purpose
This scenario focuses on JIT procurement.
It describes an inbound process in a typical repetitive manufacturing environment.
Benefits
Streamlined demand flow from customer to supplier
High integration of customer‟s and supplier‟s supply chain managed by cumulative quantities Shorter process times
Reduction of inventories to a minimum
Key process flows covered
Create scheduling agreement for vendor material
Update scheduling agreement with forecast and JIT delivery schedules Enable traceability via batch or serial number assignment
Create Scheduling Agreement Release
Print and Transmit Scheduling Agreement to vendor
Goods receipt posting with reference to scheduling agreement
Purpose and Benefits:
Purpose
Scheduling agreements are widely used in Discrete Industries. This scenario focuses on a order-to-invoice cycle.
It describes an outbound process in a typical series business environment.
Benefits
Streamlined demand flow from customer to supplier
High integration of customer‟s and supplier‟s supply chain managed by cumulative quantities
Shorter process times
Print out forms support the basic requirements of discrete industries
Key process flows covered
Create basic customer contract called scheduling agreement
Update scheduling agreement with forecast and JIT delivery schedules
Display item due for delivery and create outbound delivery for available parts Enable traceability via batch or serial number assignment
WMS controlled picking; packaging according to customer„s packing instruction Invoice items and transfer to accounting
Purpose and Benefits:
Purpose and Benefits:
Purpose
This scenario describes the quotation processing in a standard Engineer-to-Order (ETO) environment.
SAP functionalities of Sales & Distribution (SD) and of Project System (PS) are used to control the complete process, from customer inquiry to the handover to project assembly (described in the scenario 240, ETO Project Assembly).
In addition to the SAP reporting functionality also the special purchasing functionality “long lead time procurement” is part of the process.
Benefits
Deep integration to the project structuring and calculation allows for a consistent controlling of all steps and values
Copy functionalities – e.g. from inquiry to quotation – are facilitating compliance with the process rules
All values and parameters for the subsequent process (ETO 240) are available as default parameters
The option for the creation of project versions are allowing a continuous recording of all relevant values along the controlling process and a later comparison of the several situations
The long lead time procurement process is an important step to guarantee material availability on time
Cost planning, budgeting and comprehensive reporting functionality allows for a detailed controlling of the project
Key process flows covered
Creation of inquiry with linkage to project
Easy Cost Planning
Purpose and Benefits:
Purpose
This scenario describes the order processing in a standard Engineer-to-Order (ETO) environment.
SAP Project System is used to control the whole process, from the SD requirement to planning, purchasing, production and delivery.
SAP Project-Oriented Procurement (ProMan) is used as an advanced tool to control the planning/purchasing steps in the order procedure.
Benefits
Project structuring/execution via project system is used to control the collaboration between different departments
Milestone billing is used to control the progressive payment procedure, and track back the status of the project
Use of ProMAN to control and monitor the manufacture/procurement procedures centrally
Assignment of personnel resources and technical documents possible
Delivery the semi-finished goods via the project
Handling the final assembly on customer site using network activity in the project
Key process flows covered
Creation of sales order with reference to the quotation and billing milestones
Use of ProMan for procurement process of components
Assignment of personnel resources and time recording
Assginment of technical documents
Confirmation of project activities
Subassembly for semifinished goods
Delivery to customer
Purpose
This scenario focuses on different approaches to supply the production using Kanban-controlled business processes.
Comprehensive presentation of different Kanban processes
Benefits
The replenishment process controls itself and manual posting is reduced as far as possible.
Reduction in lead time and stock.
Components are not procured before they are needed (just in time).
Prevention of overproduction. Reduction of required storage space.
Simple and transparent method of organization.
Event control and alerting enable timely reaction to changes and issues in the production process
Key process flows covered
Creation an maintenance of Kanban control cycles
Creating Planned Independent Requirements and Material Requirements Planning (Plant)
Classic Kanban: External Procurement with scheduling agreements
Classic Kanban with JIT calls, calculation and alerting
Classic Kanban: In-house production (repetitive manufacturing) with quantity signal and trigger point
Classic Kanban: Stock transfer from warehouse with alerting
Purpose and Benefits:
Planning and Processing of Semifinished Goods (234)
Purpose
Forecasting level is the semifinished product. Planned independent requirements are generated for the semifinished material.
Semifinished product is manufactured in a Make-to-Stock production (MTS) environment.
Production of the finished product is triggered by customer orders (MTO) having the forecasted semifinished product as one component in its bill of material.
Integration of main cost object controlling functions, such as preliminary costing and period-end closing.
Benefits
Production triggered by a production plan
Batch management included
Forecast of semifinished products
Make-to-order and Make-to-stock processes in one scenario Key process flows covered
Creating Planned Independent Requirements
Material Requirements Planning at Plant Level
In-House Production (subassembly – Make-to-stock)
In-House final production (assembly –Make-to-order)
Confirming Assembly Activities
Sales Order processing
Co-Product Manufacturing (235)
Purpose
This scenario enables you to produce more than one material within one production order, which is often required in disassembly processes, such as cutting of tin.
Benefits
One or more components are used as input materials in the same production order.
Two or more materials are produced simultaneously
All products are posted into storage within the same transaction, so that during production execution value differences do not require different processes.
The main production costs are distributed among the most important products, including production variances
Production orders can be settled during period-end closing Key process flows covered
Creation of production order for co-production
Check of material availability
Production order execution for co-production
Production order settlement
Purpose
This scenario enables you to produce tools in a MTS (Make-to-stock) environment. The tool product is manufactured anonymously and delivered to storage as a
production resource tool.
Benefits
Tool production using MTS (Make-to-stock) production order processing
Material requirements planning for the components
Material staging for tool components
Serial number assignment for tool product
Equipment maintenance for tool product
Key process flows covered
Creation of production order for tool production
Check of material availability
Production order execution for tool production
Equipment maintenance for tool product
Purpose and Benefits:
Sales Returns with Quality Management (QM) (237)
Purpose
Sales order returns processing with quality management inspection lots. The
creation of the return sales order references to the original billing document for the goods. The goods are shipped back and a return delivery is created with reference to the sales order. After quality inspection the goods are either returned to stock, scrapped, or returned to the vendor. A credit memo is created from billing, and posted to the customers account.
Benefits
Full integration of sales order returns and quality management
Sales order returns are processed according to sales order reference to the original billing document
Credit memo is created and posted to customers account
Key process flows covered
Creation of return order
Creation of return delivery
Cash Sales Order (238)
Purpose
This scenario deals with cash only payment transaction for the sales of material to a customer.
The cash sales process is used when the customer places the sales order and picks up and pays for the goods at the same time. The system automatically
proposes the current date in the sales order as the date for the delivery and billing. Once the sales order is saved, the system automatically creates a delivery.
Benefits
Sales and delivery are created in one step
Optional batch management
Key process flows covered
Creation of sales order and delivery (automatically)
Check batches (optional)
Post goods issue
Billing
Shipping and Receiving with Warehouse Management
(239)
Purpose
This scenario is an example of how warehouse management (WM) can be used. It does not cover all possible warehouse management processes for complete WM implementation (for example inventory counting is not part of this scenario).
WM is used for the storage of raw materials and finished goods.
Internal transfer orders are used for put away, internal transfers and removal from storage.
Benefits
This scenario shows the integration of WM with inbound logistics, production and outbound logistics
Key process flows covered
Purchasing process with transfer orders
Production order creation and processing of material movements with WM
Make-to-Stock Production with Order Split (248)
Purpose
The scenario Make-to-Stock (MTS) Production with order split focuses on options how to split an existing production order for which processing may have already begun into two separate production orders. These production orders are then executed separately from a logistics perspective.
Benefits
Increased flexibility for the production planner to react to unplanned events on the shop floor, changed customer requirements or repriorization of production orders.
Better cost transparency considering real shop floor-driven plan changes
Reliable batch traceability information also after production order split
Key process flows covered
Allows split of already partially confirmed production order
Allows split to put material on stock
Visualization of split history
Supports meaningful comparison of planned vs actual cost on parent & child
Fair split of planned cost between parent & child
Update batch traceability during split
Outsourced Manufacturing (249)
Purpose
Outsourced manufacturing enhances the typical subcontracting and external processing processes with advanced features which are part of EhP 5.
Benefits
Serial Numbers Assignment in Procurement
Subcontracting ASN with components
Monitoring of whole process with subcontracting process
Material numbers can be transferred to purchase orders
Usage of subcontracting stock
In-time consumption posting of components
Inventory Reports
Monitoring of Batches
Advanced Customer Returns Management (250)
Purpose
This scenario describes advanced sales order returns processing with material inspection. The creation of the return sales order references to the original billing document for the goods. The goods are shipped back and a return delivery is created with reference to the sales order. After material inspection and decision on follow-up activities a credit memo is created and posted to the customers account.
Benefits
Manage customer returns with advanced functions that provide end-to-end support for the returns process
Sales order returns are processed according to sales order reference to the original billing document
Automatic Creation of follow-up documents after material inspection
Credit memo is created and posted to customers account
Monitoring of the whole return process
Key process flows covered
Creation of return order and return delivery
Quality Evaluation and automatic creation of follow-up documents
Release returns for billing and billing
Process Monitoring
Third-Party Order Processing with Subcontracting (252)
Purpose
This scenario focuses on the combination of third-party order processing and subcontracting
Sold Products are finished by a subcontractor and sent to the customer directly by the vendor
Benefits
Reducing stock and cost, increasing efficiency
Combination of third-party process with subcontracting functionality
Handover of customer‟s requirements directly to external supplier Invoice from subcontractor bases on external services
Key process flows covered
Third Party Sales Order
Convert Purchase Requisitions to Purchase Order
Shipping of components to subcontractor
Post Statistical Goods Receipt with consumption of components
Invoice verification
Lean Manufacturing: Heijunka Leveling (253)
Purpose
This scenario focuses on the Kanban-supported production planning and optimization in repetitive manufacturing
By using a special algorithm the production process is optimized and demand fluctuations are balanced
Benefits
Stabilization and optimization of production process
Transfer of uneven customer demands in smooth, stable and predictable production schedule
Optimization of stocks and value flow
Components are not procured before they are needed (just in time).
Prevention of overproduction. Reduction of required storage space.
Event control enables timely reaction to changes and issues in the production process
Key process flows covered
Creation of strongly fluctuating planned independent requirements
Production Planning in repetitive manufacturing
Heijunka sequencing and optimization
Kanban Processing with repetitive manufacturing backflush
Production Schedule Evaluation
Postprocessing
Records Management (661)
Purpose
This scenario focuses on the creation of customer order records and equipment records
It describes records management process in a typical project-oriented manufacturing environment
Benefits
Fast access to relevant information leveraging workspace efficiency and response time to customer inquiries
Non-redundant, reliable information storage with efficient usage of resources Accelerated implementation of business processes by leaded process
automation and early time-to execution
Decreasing information management costs by using controlled distribution, updates and archiving processes
Usage of records management enables focusing on the core business
Activate Document Splitting for Discrete Manufacturing
(245)
Purpose
The online split is provided with the new General Ledger Accounting.
Documents are enhanced with additional account assignment objects, or additional postings are done which split the original postings into lines referring to the account assignment objects.
Account assignment objects can be defined according to selected dimensions. In SAP Best Practices the dimensions are profit centers and segments.
Benefits
The postings are done in real time (online).
It is possible to draw up complete financial statements for the selected dimensions at any time (segment reporting).
Key Points
The online split is provided with the new General Ledger Accounting.
The online split is based on segments.
The online split must be activated before the start of postings in the client. Postings done before can cause subsequent online split errors (see also Note 891144).
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