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This is the second part of SAP Production Planning End-User Manual i started before. In my previous post i shared manuals for Demand Management, Capacity Planning, Routing and Work Centre. You will find a lot more user manuals in this post for

  • Serial Number Management for Finished Goods
  • Materials Requirement Planning: Concept of MRP and extensive user guides.
  • Bill of Material, Order Confirmation, Product Conversion, and many more user manual for Material Master

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It has been a long time since i posted Production Planning related documents, information. Sorry for the few posts under PP, i will try to post more as i get more. I decided share some end-user manuals in two part. I do not need to create a series like i did for SAP Press Books Sample Chapters Collection as this will not last long. Here is the first part which you will find step-by-step guides with accompanying screen shots and notes for

  1. Demand Management
  2. Capacity Planning
  3. Routing
  4. Work Centre

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Capacity Planning User Manual

Published on 28 April 2009 by eddai in Production Planning

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In recent version of SAP, Work Centre works with  infinite capacity. After MRP Run, even if a particular Work Centre is overloaded, one will be able to Complete Production Order defined at that particular Work Centre.

Capacity Evaluation can be used for analysis purpose & capacity Leveling can be used manually to allocate the load to different Work Centre. Capacity evaluations is used to analyse capacity loads. One can adjust the analyses for each user according to the planning level, planning horizon and the area of responsibility. Available capacities and capacity requirements can be selected according to various criteria and cumulated
using any period split one chooses.  [...]

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MRP Concept in SAP

Published on 20 April 2009 by eddai in Production Planning

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MRP is the planning tool in SAP which will look at all aspects of a material and is highly based upon the master data of the material.
MRP looks at current inventory, current requirements, and open purchase requisition/orders and so on. So if a material is required to satisfy a sales order and there is no inventory, MRP will create a planned order if the item is to be produced in house. This planned order can then be converted to a production order by the master scheduler.

If the item is to be procured, then MRP will create a purchase requisition which the Buyer will convert to a purchase order. This is just one scenario, the system is highly configurable and will do pretty much whatever you tell based on config and master data. [...]

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This process is used to run the replenishment requirement of all materials at a plant.  Each plant will determine the frequency of running MRP – every other day, once a week.  The purpose of MRP is to ensure the right material arrives at the right place at the right time.  The MRP run is used to automatically generate planned orders or purchase requisitions enabling the replenishment of materials depleted by consumption and the planning of known requirements. The system tries to achieve a balance between optimizing needed materials and minimizing costs by keeping inventory levels at a minimum and having no stock outages. [...]

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What is SOP?

Published on 02 April 2009 by eddai in Production Planning

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Suitable for long/medium-term planning, with an aim to streamline a company’s ‘Sales and Operational Planning, SOP’ is a forecasting tool enabling you to set up sales, production, and other supply chain targets based on existing, future, or historical data. SOP is most suitable for planning finished goods, and not for material component planning.

SOP plans are passed on to Demand Management (DEM) in the form of independent requirements, which in turn is fed into MPS (Master Production Scheduling) and MRP (Material Requirements Planning). The results of SOP can be passed on to profitability analysis, cost center accounting, and activity-based costing.

SOP contains two application components; namely, Standard SOP (PP-SOP) and Flexible Planning (LO-LIS-PLN). The Standard SOP comes pre-configured with the system. Flexible planning can be configured in a variety of ways.

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While a Variant BOM groups together several BOMs that describe different objects (for example, different models of a car) with a high proportion of identical parts, a Multiple BOM groups together several BOMs that describe one object (for example, a product) with different combinations of materials for different processing methods. The Variant BOMs are supported for the following BOM categories:

  • Material BOMs
  • Document structures
  • Equipment BOMs
  • Functional location BOMs

Multiple BOMs are only supported for Material BOMs.

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