SCM340-ProcessOrdersInstructor.pdf

(1)

SCM340

Process Orders

mySAP Supply Chain Management

Date Training Center Instructors Education Website

Instructor Handbook

Course Version: 2004 Q3 Course Duration: 5 Day(s) Material Number: 50066132 Owner: Paul Johnston (I022911)

(2)

No part of this publication may be reproduced or transmitted in any form or for any purpose without the express permission of SAP AG. The information contained herein may be changed without prior notice.

Some software products marketed by SAP AG and its distributors contain proprietary software components of other software vendors.

Trademarks

• Microsoft®, WINDOWS®, NT®, EXCEL®, Word®, PowerPoint® and SQL Server® are registered trademarks of Microsoft Corporation.

• IBM®, DB2®, OS/2®, DB2/6000®, Parallel Sysplex®, MVS/ESA®, RS/6000®, AIX®, S/390®, AS/400®, OS/390®, and OS/400® are registered trademarks of IBM Corporation. • ORACLE® is a registered trademark of ORACLE Corporation.

• INFORMIX®-OnLine for SAP and INFORMIX® Dynamic ServerTM are registered trademarks of Informix Software Incorporated.

• UNIX®, X/Open®, OSF/1®, and Motif® are registered trademarks of the Open Group. • Citrix®, the Citrix logo, ICA®, Program Neighborhood®, MetaFrame®, WinFrame®,

VideoFrame®, MultiWin® and other Citrix product names referenced herein are trademarks of Citrix Systems, Inc.

• HTML, DHTML, XML, XHTML are trademarks or registered trademarks of W3C®, World Wide Web Consortium, Massachusetts Institute of Technology.

• JAVA® is a registered trademark of Sun Microsystems, Inc.

• JAVASCRIPT® is a registered trademark of Sun Microsystems, Inc., used under license for technology invented and implemented by Netscape.

• SAP, SAP Logo, R/2, RIVA, R/3, SAP ArchiveLink, SAP Business Workflow, WebFlow, SAP EarlyWatch, BAPI, SAPPHIRE, Management Cockpit, mySAP.com Logo and mySAP.com are trademarks or registered trademarks of SAP AG in Germany and in several other countries all over the world. All other products mentioned are trademarks or registered trademarks of their respective companies.

Disclaimer

THESE MATERIALS ARE PROVIDED BY SAP ON AN "AS IS" BASIS, AND SAP EXPRESSLY DISCLAIMS ANY AND ALL WARRANTIES, EXPRESS OR APPLIED, INCLUDING

WITHOUT LIMITATION WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE, WITH RESPECT TO THESE MATERIALS AND THE SERVICE, INFORMATION, TEXT, GRAPHICS, LINKS, OR ANY OTHER MATERIALS AND PRODUCTS CONTAINED HEREIN. IN NO EVENT SHALL SAP BE LIABLE FOR ANY DIRECT,

INDIRECT, SPECIAL, INCIDENTAL, CONSEQUENTIAL, OR PUNITIVE DAMAGES OF ANY KIND WHATSOEVER, INCLUDING WITHOUT LIMITATION LOST REVENUES OR LOST PROFITS, WHICH MAY RESULT FROM THE USE OF THESE MATERIALS OR INCLUDED SOFTWARE COMPONENTS.

(3)

About This Handbook

This handbook is intended to complement the instructor-led presentation of this course, and serve as a source of reference. It is not suitable for self-study.

Typographic Conventions

American English is the standard used in this handbook. The following typographic conventions are also used.

Type Style Description

Example text Words or characters that appear on the screen. These include field names, screen titles,

pushbuttons as well as menu names, paths, and options.

Also used for cross-references to other documentation both internal (in this

documentation) and external (in other locations, such as SAPNet).

Example text Emphasized words or phrases in body text, titles of graphics, and tables

EXAMPLE TEXT Names of elements in the system. These include report names, program names, transaction codes, table names, and individual key words of a

programming language, when surrounded by body text, for example SELECT and INCLUDE.

(4)

Type Style Description

Example text Screen output. This includes file and directory names and their paths, messages, names of variables and parameters, and passages of the source text of a program.

Example text _{Exact user entry. These are words and characters}

that you enter in the system exactly as they appear in the documentation.

<Example text> Variable user entry. Pointed brackets indicate that you replace these words and characters with appropriate entries.

Icons in Body Text

The following icons are used in this handbook.

Icon Meaning

For more information, tips, or background

Note or further explanation of previous point Exception or caution

Procedures

Indicates that the item is displayed in the instructor’s presentation.

(5)

Course Overview

The purpose of this course is to provide you with the detailed functionality of Process Orders. You will understand how to use process orders and customize the system settings for process order execution.

Target Audience

This course is intended for the following audiences:

• Members of the project team responsible for implementing process orders(consultants, organizers)

• Managers and employees in production areas (work schedulers, production schedulers, foremen, workers)

Course Prerequisites

Required Knowledge

• Knowledge of Production Planning & Control • Supply Chain Manufacturing Overview • PLM115 Basic Data for Process Manufacturing

Recommended Knowledge

• mySAP Supply Chain Management • Supply Chain Planning Overview • Production Planning Part 1

Course Duration Details

Unit 1:

Overview of Production Planning for Process Industries

Overview of Production Planning for Process

Industries 55 Minutes

Exercise 1: Production Planning Process Flow 5 Minutes

Process Order Processing 55 Minutes

Exercise 2: Processing 15 Minutes

Multilevel MRP 55 Minutes

Process Management 30 Minutes

(8)

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

(9)

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

(10)

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

(11)

• 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

(12)

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

(13)

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.

(14)

CATTs

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

Contact Person for CATTs:

(15)

Unit 1

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

(16)

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

(17)

SCM340 Lesson: Overview of Production Planning for Process Industries

Lesson:

2

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:

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.

(18)

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

(19)

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.

(20)

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.

(21)

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.

(22)

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.

(23)

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).

(24)

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.

(25)

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.

(26)

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.

(27)

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

(28)

(29)

11

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.

First, create a sales plan for this product group and then a production plan based on this sales plan. Disaggregate the planned product group quantities of your production plan to the individual product group members and transfer the results to demand management, to determine the planned independent requirements. Then you will execute the material requirements planning and convert a planned order to a process order.

Task 1: Sales and Operations Planning

1. Display the product group T-ICE## in plant 1100.

Which product group members does the product group contain? Which disaggregation proportions (in %) have been defined for individual product group members?

Continued on next page

(30)

Member number Plant Proportion (%)

2. Change a sales plan for the product group T-ICE## in plant 1100. Choose Active version.

Beginning with the month after next, the planned sales quantities should be 10,000 kg per month for five consecutive months.

Note: The active version is available. This is the reason we begin

the planning in the change mode.

3. Based on your sales plan, create a production plan for the product group T-ICE##.

Start planning in the change mode. Choose Active version

Specify that the production plan should be created synchronous to the sales plan.

4. Disaggregate the planned product group quantities of your production plan to the individual product group members and transfer the results to demand management.

Task 2: Demand Management

You need to display the planned independent requirements for the product group T-ICE##. You also need to compare the planned independent requirement quantities for materials T-FI1##, T-FI2##, and T-FI3## in the planning table with the planned values in the production plan. You will also display the stock requirements list for each product.

1. Display the planned independent requirements for the product group T-ICE##.

Compare the planned independent requirement quantities for materials T-FI1##, T-FI2##, and T-FI3## in the planning table with the planned values in the production plan and the percentage disaggregation proportions in the product group.

2. Display the stock/requirements lists for materials T-FI1##, T-FI2##, and T-FI3##.

(31)

What information do the stock/requirements lists provide?

Notes: __________________________________________________ __________________________________________________ __________________________________________________ __________________________________________________ __________________________________________________

Task 3: Material Requirements Planning

You need to execute material requirements planning for your material T-FI1## and display the planning results in the form of planned orders in the stock/requirements list.

Note: Note: If the system settings were made accordingly, the planning

run could also be carried out in SAP APO and the planned orders resulting from it could be transferred to SAP R/3.

1. Carry out single-item, multi-level planning for your material T-FI1## in plant 1100.

2. Display the stock/requirements list for material T-FI1## after the planning run.

Look to see what has changed. In particular, look for new MRP elements.

Task 4: Process Order Creation

You need to convert one of your planned orders to a process order. 1. Display the stock/requirements list for your product T-FI1##.

Convert the planned order with the earliest date to a process order from within this list.

Refresh the list after conversion.

(32)

Solution 1: Production Planning Process

Flow

Task 1: Sales and Operations Planning

1. Display the product group T-ICE## in plant 1100.

Which product group members does the product group contain? Which disaggregation proportions (in %) have been defined for individual product group members?

a) Logistics→Production - Process→SOP→Product Group→ Display.

Product group: T-ICE## Plant: 1100

Choose Enter. The Display Product Group: Members (Materials) screen appears.

T-FI1## 1100 60

T-FI2## 1100 30

T-FI3## 1100 10

2. Change a sales plan for the product group T-ICE## in plant 1100. Choose Active version.

(33)

Beginning with the month after next, the planned sales quantities should be 10,000 kg per month for five consecutive months.

Note: The active version is available. This is the reason we begin

the planning in the change mode.

a) Logistics→Production - Process→SOP→Planning→For Product Group→Change.

Choose Active version.

The Change Rough-Cut Plan screen appears.

Specify the sales quantity as 10,000 kg per month for five consecutive months, beginning with the month after next.

Save your sales plan.

3. Based on your sales plan, create a production plan for the product group T-ICE##.

Start planning in the change mode. Choose Active version

Specify that the production plan should be created synchronous to the sales plan.

a) Logistics→Production - Process→SOP→Planning→For Product Group→Change.

Choose Active version.

Choose Edit→Create productn plan→Synchronous to sales.

Save your planning results.

(34)

4. Disaggregate the planned product group quantities of your production plan to the individual product group members and transfer the results to demand management.

a) Logistics→Production - Process→SOP→SOP→Disaggregation

→Transfer Product Group to Planning

Version: A00

Choose transfer strategy Prod.plan for mat. or PG members as

proportion of PG.

Choose Transfer now.

Task 2: Demand Management

You need to display the planned independent requirements for the product group T-ICE##. You also need to compare the planned independent requirement quantities for materials T-FI1##, T-FI2##, and T-FI3## in the planning table with the planned values in the production plan. You will also display the stock requirements list for each product.

1. Display the planned independent requirements for the product group T-ICE##.

Compare the planned independent requirement quantities for materials T-FI1##, T-FI2##, and T-FI3## in the planning table with the planned values in the production plan and the percentage disaggregation proportions in the product group.

a) Logistics→Production - Process→Production Planning→ Demand Management→Planned Independent Requirements→ Display.

Choose Enter. The Plnd Ind. Reqmts Display: Planning Table screen appears.

2. Display the stock/requirements lists for materials T-FI1##, T-FI2##, and T-FI3##.

(35)

SCM340 Lesson: Overview of Production Planning for Process Industries Notes: __________________________________________________ __________________________________________________ __________________________________________________ __________________________________________________ __________________________________________________

a) Logistics→Production - Process→Production Planning→ Demand Management→Environment→Stock/Requirements List.

Material: T-FI1## Plant: 1100

At this stage, the list contains the planned independent requirements for the material (T-FI1##, T-FI2##, or T-FI3##) with the requirement quantities and requirements dates.

Note: Note: To view the stock requirements of the other

materials, overwrite the material number in the stock requirements header and choose Enter.

It also provides information about quantities currently available and for the requirements dates.

(36)

Task 3: Material Requirements Planning

You need to execute material requirements planning for your material T-FI1## and display the planning results in the form of planned orders in the stock/requirements list.

Note: Note: If the system settings were made accordingly, the planning

run could also be carried out in SAP APO and the planned orders resulting from it could be transferred to SAP R/3.

1. Carry out single-item, multi-level planning for your material T-FI1## in plant 1100.

a) Logistics→ Production - Process→MRP →Planning→ Single-Item, Multi-Level.

Material:T-FI1## Plant: 1100

Choose Enter. The system displays an info message prompting you to check the input parameters.

Choose Enter again to start the MRP run.

2. Display the stock/requirements list for material T-FI1## after the planning run.

Look to see what has changed. In particular, look for new MRP elements. a) Logistics→Production - Process→MRP→MRP→Evaluations

→Stock/Requirements List.

As a result of the MRP run, the system created planned orders to cover the planned independent requirements.

Task 4: Process Order Creation

You need to convert one of your planned orders to a process order. 1. Display the stock/requirements list for your product T-FI1##.

Convert the planned order with the earliest date to a process order from within this list.

(37)

Refresh the list after conversion.

a) Logistics→Production - Process→MRP→ Evaluations→ Stock/Requirements List

Double-click the MRP element PlOrd. of the planned order with the earliest date and choose→Proc.ord. in the Additional Data for

MRP Element dialog box.

After converting, the Create Process Order: Header - General Data screen appears. Header→General data

Save the process order.

After saving, the stock/requirements list appears again. Choose the Refresh icon.

The new process order is displayed as a new MRP element. The order number is displayed in the data on the MRP element. The original planned order was deleted after the conversion.

(38)

Lesson Summary

You should now be able to:

(39)

SCM340 Lesson: Process Order Processing

Lesson:

21

Process Order Processing

Lesson Overview

The lesson describes the structure and elements of a process order. It also describes important screens of process order and their contents. The lesson explains order processing up to PI sheet maintenance in the SAP R/3 enterprise using a simple scenario.

Lesson Objectives

After completing this lesson, you will be able to:

• Describe the structure and elements of a process order

Explain the stages in processing a process order. Explain the complete cycle of order processing up to PI sheet maintenance in the SAP R/3 Enterprise using a simple scenario.

Business Example

As a member of the SAP project team representing manufacturing, you need to define the tasks that need to be performed while producing a batch of product. You will test the process using the process order you created in the previous lesson.

(40)

Defining Process Order Functions

Figure 9: Process Order Structure

Operations describe the various stages in the production process. For more

detailed description of these steps, phases are assigned to the operations. Exactly one resource is assigned to an operation. This resource assignment applies to all the phases assigned to the operation.

The processing sequence of phases is defined in relationships.

The material list is comprised of components of a product. These components represent materials that enter, leave, and temporarily exist in the production process, as well as their planned quantities. The list also defines the

assignment of these material components to the phases of the order according to their appearance in the process.

In material quantity calculation, you define formulas to calculate the material quantities to be used or obtained in a production process taking into account the mixing ratios of the ingredients, yield ratios of products, remaining materials, and specific material attributes, for example, active ingredient content.

A process order is usually created using a master recipe. The operation and phase structure with its relationships and assigned resources as well as material components and process instructions are copied to the process order.

(41)

Figure 10: Elements of the Process Order

Phases are used to schedule, determine capacity requirements, and perform

costing. The dates and capacity requirements for operations are derived from the corresponding phases.

If additional resources are required, secondary resources can be assigned to operations and phases. The same business transactions can be performed for secondary resources as for phases. Secondary resources can, for example, be included in scheduling, capacity requirements planning, and costing.

A control key must be entered for both phases and secondary resources. The control key is used to determine how an operation, phase, or secondary resource is to be processed in operative applications such as process orders, costing, or capacity requirements planning.

A standard value is a planned value for the execution time of a phase or secondary resource. Standard values are used for calculations in costing, scheduling, and capacity requirements planning.

Confirmations are entered for phases and secondary resources, but not for

operations. This documents their processing status.

Process instructions are structures that are used to transfer data from the

process order to process control. Process instructions are assigned to the phases of a process order. Process instructions are combined in control

(42)

recipes, which are then transferred to the control recipe destinations defined for phases. These destinations may be a process control system or the control recipe may be transferred to operators in the form of a PI sheet.

Demonstration: Elements of a Process Order

Purpose

The purpose of this demo is to show where each of the elements in the slide can be found in a process order.

System Data

System: Client: User ID: Password:

Set up instructions: Exercise 1 must be complete.

1. Display the stock requirements list for T-FI1## (## = the group you are using for your demos) and enter the process order in change mode. In the order header section, show the order number, order type, material number, plant, and statuses. (You may double-click the order type to display the order-type dependent parameters. Do not discuss in detail as it will be covered later.

2. On the General data tab, show quantities and scheduling information. 3. Choose theAssignment tab. Show People/groups responsible, and

assignments such as reservation number, inspection lot number, sales order number

4. Choose the Goods recpt tab. Show stock type, tolerances, storage location, and batch number.

5. Choose the Control tab. Show the costing information, e.g. Determine planned costs on saving. Also point out the scheduling settings.

6. Choose theDates/tys tab. Show the planned dates and quantities for the order.

7. Choose the Master data tab. Show the production version, master recipe, bill of material and resource network assignments.

8. Show where to see the settlement rule and any documents. Header >

(43)

You may also want to show the goto functions, e.g. costs, lists.

9. Choose the Operations button. Show resource assigned to operation and grayed out for phases. Show control keys are on every operation and phase. Show the control recipe destination on every phase. Choose a phase and show the details.

Note: There are no process instructions assigned in this order.

They will come from x-steps.

10. Choose the Materials button. Show the list of components and quantities. Point out the batch managed components. Show the detail for one including the reservation number. You may point out the material quantity calculation button but no formulas have been defined.

11. Point out the x-steps button. Explain this will be used to bring in standard process instructions and will be shown later.

12. The last thing you may want to show is the functions and settings available. Process order > Functions and Process order settings.

Process Order Processing

Figure 11: Process Order Processing

(44)

The graphic shows the main tasks performed during process order management to control process manufacturing in the SAP System. Process order processing is comprised of the following tasks: • Process planning

• Process order execution/process management • Order closing

Some activities can run automatically or in the background, which minimizes manual processing of orders.

WIP determination, deviation determination, and settlement are generally periodic tasks for Cost Object Controlling and are usually processed in the background.

Various Customizing settings should be made to enable successful order processing.

Demonstration: Order Processing

Purpose

The purpose of this demo is to show the students what they will do in their exercise. System Data System: Client: User ID: Password:

Set up instructions: No setup required. 1. Demo Exercise 2

2. On the Material List screen, select T-RI0## and choose the Execute batch

determntn button on the lower icon bar. A batch is selected and entered

on material list.

3. On teh Material List screen, select T-RI2## and choose the Execute batch

determntn button on the lower icon bar. A dialog box appears where

you can make the final decision. Explain that you will teach them how to define batch determination. Then select all other batch managed components and trigger batch determination. These will be performed with no dialog box.

(45)

d do

(46)

(47)

25

Exercise 2: Processing

Exercise Duration: 15 Minutes

Exercise Objectives

After completing this exercise, you will be able to: • Change a process order

• Release a Process order

• Create and send control recipes

• Understand how to work with PI sheets

Business Example

You are the manufacturing representative on the SAP project team at FPD Corporation. You have completed the planning process and converted a planned order to a process order. The process order needs to be modified and executed.

Task 1: Change Process Order

Call up your process order in the change mode.

1. On the Header – Goods Receipt screen, manually assign the following number for the batch of material T-FI1## to be produced:

Batch: SCM340

Choose the Create Batch icon next to the field. In the pop-up box, answer

Yes to create the batch master.

2. In the Material List screen, manually perform batch determination for one or more material components.

3. Manually perform a material availability check for the order. 4. Manually perform a capacity availability check for the order. 5. Release the process order.

6. Create the control recipe for the order. 7. Save the order.

(48)

Task 2:

1. Select your control recipe in the control recipe monitor. Send the control recipe and refresh the list.

Note: In the production plant, control recipes are sent

automatically in a background job.

Task 3:

1. Your control recipe destination is of type PI sheet.

Select the PI sheet that was created when the control recipe was sent. Enter the PI sheet in the change mode.

(49)

Solution 2: Processing

Task 1: Change Process Order

Call up your process order in the change mode.

1. On the Header – Goods Receipt screen, manually assign the following number for the batch of material T-FI1## to be produced:

Batch: SCM340

Choose the Create Batch icon next to the field. In the pop-up box, answer

Yes to create the batch master.

a) Access through the stock requirements list or by choosing Logistics

→Production - Process→Process Order→Process Order→ Change

2. In the Material List screen, manually perform batch determination for one or more material components.

a) Manual batch determination:

Select a material component and choose the Execute batch determination icon in the lower toolbar.

Note: For component T-RI2##, batch determination is

performed in the dialog mode. All other components that should be handled in batches are assigned in the background. Choose Enter to acknowledge any messages. 3. Manually perform a material availability check for the order.

a) Choose Material (Material availability check - ATP) in the application toolbar (upper icon bar).

4. Manually perform a capacity availability check for the order.

a) Choose Capacity (Capacity availability check) in the application toolbar (upper icon bar).

5. Release the process order.

a) Release: Choose the Release icon in the application toolbar. 6. Create the control recipe for the order.

a) Control recipe creation: Choose the Create control recipe icon in the application toolbar.

(50)

7. Save the order.

a) Save: Choose the Save icon in the upper icon bar.

Task 2:

1. Select your control recipe in the control recipe monitor. Send the control recipe and refresh the list.

Note: In the production plant, control recipes are sent

automatically in a background job.

a) Logistics→Production - Process→Process Management→PI Sheet →Find

Plant: 1100

Process order: Order number

or

address of recipient: GRP. ## ICE

Choose Enter. The Control Recipe Monitor: Overview screen appears. The control recipe status is Created.

Select your control recipe and choose Send. After sending, choose

Refresh to update the list. The control recipe should now have the

status as Sent.

Task 3:

1. Your control recipe destination is of type PI sheet.

Select the PI sheet that was created when the control recipe was sent. Enter the PI sheet in the change mode.

Note: You will not process the process order further in this unit.

a) Select your PI sheet by choosing:

(…)→Process Management→PI Sheet→Find

Or

(…)→Process Management→PI Sheet→Worklist – Maintain

(51)

Lesson Summary

• Describe the structure and elements of a process order

(52)

Lesson:

30

Multilevel MRP

Lesson Overview

This lesson gives a brief overview of multi-level MRP and provides an example of its application.

Lesson Objectives

After completing this lesson, you will be able to: • Present an application of multi-level MRP

Briefly describe multi-level MRP using the case study included in section, Planning with Multilevel MRP.

Business Example

You are a member of the team implementing the SAP system at FPD

Corporation. The company produces packaged Cetepharm tablets. You need to analyze the demand from the sales order and the planned independent requirements. If the stock and the planned receipts are not sufficient to meet the demand, you need to create a planned order.

(53)

SCM340 Lesson: Multilevel MRP

Planning with Multilevel MRP

Figure 12: Sample Scenario 1: Multilevel MRP in R/3

Your company produces packaged Cetepharm tablets:

To produce Cetepharm tablets, your company first manufactures

acetylsalicylic acid, the active ingredient for Cetepharm production. This is combined with other ingredients to produce Cetepharm tablets. The tablets are then packaged in various package types, sizes and quantities.

Production takes place in three stages.

(54)

Figure 13: Multilevel MRP

MRP analyzes the supply and demand at each level and generates planned orders where necessary.

Figure 14: Stock/Requirements List and MRP List

You can evaluate the planning situation or the result of a planning run using the stock/requirements list or MRP list in the SAP R/3 System.

(55)

You can use individual or collective access to do this.

The MRP list represents the result of the last planning run and is a static report.

The stock/requirements list is a dynamic list created by directly reading MRP

elements. As a result, the list always shows the current stock/requirements

situation (stocks, requirements, and receipts).

The two lists have the same basic structure as described below:

• The MRP controller’s worklist is displayed to the left in the form of a tree (optional).

• Above the list is the header with the material number and material master details.

• The list contains the individual MRP elements and the corresponding available quantities.

User-specific settings enable you to tailor the lists as required.

(56)

Facilitated Discussion

How does Multi-Level MRP apply to products that the participants manufacture in their organisation and how are they planned - MPS, MRP, Consumption-Based MRP, Planning Strategies

Discussion Questions

Use the following questions to engage the participants in the discussion.Feel free to use your own additional questions.

An example is required, which could be drawn up on a flipchart to explore the relationships between the finished product, semi-finished and raw materials. How does the company plan these materials, what problems do they need to overcome, what are the typical leadtimes to manufacture the (semi-) finished materials

(57)

Lesson Summary

• Present an application of multi-level MRP

(58)

Lesson:

34

Process Management

Lesson Overview

This lesson provides an overview of process management.

Lesson Objectives

After completing this lesson, you will be able to: • Describe process management

Describe how the data flows through the system during process management. Point out that In the Process order execution units (e.g. Goods Issue etc) the partiparticants will get plenty of practise using PI Sheets, Process Instructions and Process Messages. The course SCM344 goes into more detail regarding the config associated with Process management

Business Example

You are a member of the team implementing the SAP system at FPD

Corporation. Production in your company is controlled manually by process control operators, automatically through process control systems, and by both in partially automated areas. You want to use Process Management for process control.

Introducing Process Management

Display the control recipe monitor for T-FI1## and show the status of the control recipe. You sent this earlier (t-code co53).

Begin to maintain the PI sheet (co55 or co60), save and report data. Go to the message monitor (co54) and show the details for at least one message.

(59)

SCM340 Lesson: Process Management

Figure 15: Process Management

Process management is the interface between PP-PI and the systems involved

in process control. As a result of its flexible structure, it can be linked to fully

automated, partially automated, and manually operated lines. Process

management includes the following functions:

• Receiving control recipes with process instructions from released process orders. Process instructions define, for example, the tasks to be performed and the process data to be confirmed using process messages. • Sending control recipes to corresponding process operators or process

control systems.

• Manual processing: Displaying control recipes in natural language in the form of PI sheets, which can be displayed and maintained on the screen by the process operator.

• Receiving, checking, and sending process messages with actual process data from the process control system or the PI sheet.

Data is exchanged with process control systems using the PI-PCS interface.

(60)

Figure 16: Creating and Sending Control Recipes

Information that is relevant to process control is stored in the process order in the form of process instructions assigned to the phases of the order.

Process management groups process instructions to control recipes and transfers these to control recipe destinations that are stored in the process order.

You can create control recipes for:

• Process control systems in automated production lines • Process operators in manually operated production lines

In the second case, the control recipe is displayed in natural language in the form of an R/3 PI sheet on the screen, where it can be maintained by the process operator.

(61)

Figure 17: PI Sheet

The SAP PI sheet enables processing on the screen. The process operator can enter, confirm, or complete data interactively.

Based on the process instructions contained in a control recipe, the PI sheet provides the following elements and functions:

• Display information such as control instructions and notes on process • Input fields and tables to enter process data, input validations, and

signatures

• Batch determination and batch check • Process data calculation

• Function calls to call data from internal or external applications • Link to QM inspection results recording

• Sequence definition to determine the processing sequence of phases • Comments on documentation and messages from process events As of Release 4.6C, PI sheet enhances the ABAP list-based PI sheet. It offers the advantage of a flexible user-specific layout definition and enables you to define frames, for example, to link to documents, graphics, the Internet, and intranet.

(62)

Figure 18: Standard Postings for Process Orders

Standard postings for process orders such as goods issues, confirmations,

and goods receipts can be performed using manual data entry in the R/3 System, process messages from a PI sheet or a process control system. Some process instructions request data from process control. This data is either entered in a PI sheet by process operators or is reported directly by a process control system. The reported data is sent to one or more predefined destinations in the form of process messages.

Confirmations are entered for phases and secondary resources, but not for

operations. The simplest confirmation procedure is the confirmation for a process order.

(63)

Defining Process Messages

Figure 19: Flexible Data Entry with Process Messages

Process messages are data structures which contain actual data for a process and are sent from process control to one or more destinations.

The standard SAP System contains a number of predefined message

categories, which enable you to transfer actual data from process control to

the R/3 System.

You can define process message categories in Customizing according to specific requirements.

Process messages are first sent to the process management, where they are checked and forwarded to pre-defined destinations.

(64)

Figure 20: Data Flow During Process Manufacturing

A production process is triggered by current production requirements. Production requirements are created by the planning run in the form of planned orders.

Planned orders are converted to process orders or you can create a process order manually.

A master recipe is used as the basis for a process order. It defines the planned resources, material components, process instructions, etc.

After a process order is released for production, the process instructions maintained in the order are combined in control recipes and sent to process management. Control recipes are either transferred to a process control system through a specific interface or displayed online in the form of a

process instruction sheet (PI sheet), which can be read and maintained by

process operators.

In return, process management receives process messages from the process control level and transfers them to various destinations. For example, you can record confirmations, post material consumptions or production yields as goods movements, transfer quality data to results recording of Quality Management, transfer actual values of the process conditions to a table for evaluation, etc.

(65)

Facilitated Discussion

To understand how the data flows through the system during process manufacturing

Discussion Questions

Use the following questions to engage the participants in the discussion.Feel free to use your own additional questions.

Discuss how data flows through the system during process manufacturing. Would the participants’ organisation see the advantages in linking directly to a Manufacturing Execution System (MES) or would PI sheets replace existing paper-based operating procedures? Real-time data update?

(66)

Lesson Summary

(67)

SCM340 Unit Summary

Unit Summary

• Describe the structure and elements of a process order • Present an application of multi-level MRP

• Describe process management

(68)

(69)

SCM340 Test Your Knowledge

43

Test Your Knowledge

1. Open and flexible architecture of the mySAP Business suite enables cross-enterprise collaboration.

Determine whether this statement is true or false.

□ True □ False

2. Process order management controls the in-house production process of products.

Determine whether this statement is true or false.

□ True □ False

3. SCM Planning and SCM Manufacturing use the following mySAP components: Sap R/3, SAP APO, and SAP BW. The interface between R/3

and APO is called .

Fill in the blanks to complete the sentence.

4. Process orders can be used for various manufacturing processes that are identified by the criteria such as

and product stability.

5. The master data for resources describes the

in the produc-tion process.

6. If a batch with specifications is required in the supply chain, the is used to find suitable batches in stock.