Production Planning

This document provides a comprehensive overview of Bills of Material (BOMs) within SAP Production Planning (PP). A BOM is a master data object that lists all components and their quantities needed to produce a finished good or assembly, which serves as a foundational element for several processes in production planning. It describes different types of BOMs (simple, alternative, and variant) and their use in processes like material requirements planning, costing, and production consumption.

Key Topics/Steps Covered in the document are:

1. 1. What is Bill of Material?: Explains the concept of a BOM as a list of components required to create a product, showing how it integrates within different SAP modules, with a focus on Material BOM in PP. Different BOM types are listed along with their application.
   2. Role of Material BOM in PP: Details how BOMs are used in Material Requirements Planning (MRP) for calculating component needs, in costing to roll up component costs into finished goods, and in production consumption to post goods issues against production orders. This outlines how BOMs are used within different planning, production, and costing functions.
   3. Material BOM Technical Types: Describes simple, alternate (multiple) and variant BOMs, illustrating when to use each. This outlines different type of BOMs and their purpose.
   4. What is BOM Explosion?: Explains the process of breaking down an assembly into its lower-level components, facilitated by a system-assigned lower-level code that indicates a material’s position in the BOM structure. This defines how assemblies are broken down into components.
   5. How to Create Bill of Material: Provides navigation and transaction codes (CS01) for creating BOMs, specifying required data such as the material, plant, BOM usage and other parameters. It also describes the usage of different indicators and controls (like production relevant, design relevant etc.) This section explains the steps to create a bill of material.
   6. BOM Structure: Details the hierarchical structure of a BOM, including the header (BOM number, type, base quantity), and items, with details of unique fields, such as Item Category, fixed indicator, component scrap, operation scrap, co-product indicator, recursive allowed. This describes the BOM structure and various fields and their purpose.
   7. Status/Long Text Tab Data: Explains various indicators that are stored in the Status/Long Text tab of the BOM item like production relevant, Plant Maintenance, costing relevancy and describes their impact. It defines how BOMs interact with other areas and their cost relevancy.
   8. Material Provision Indicator, Bulk Material, Production Storage Location and Supply Area: Describes how these fields are used for managing the supply of materials in production processes, focusing on scenarios for subcontracting and direct material availability at work locations. It details various supply chain related settings in a BOM.
   9. Change Bill of Material: Briefly mentions the transaction code (CS02) and mass change functionality (CS20) for modifying BOMs.

This document serves as a detailed guide to understanding and configuring BOMs in SAP PP, essential for maintaining accurate and efficient production planning processes. The document details not only the definition but various business scenarios and how to configure them in the SAP system.

Read more