J64: Production Planning and Discrete Manufacturing Overview

1. J64: Production Planning and Discrete ManufacturingOverview SAP AG

3. Business View � Production Planning and Discrete Manufacturing J64 - Discrete Manufacturing J64 - Discrete Manufacturing

4. Business View � Production Planning and Discrete Manufacturing

5. Business View � Production Planning and Discrete Manufacturing

6. SOP � Process Flow

7. Demand Management

8. Materials Requirement Planning - MRP

9. Work Center You may allocate one or more capacity categories to a work center. Capacity categories are defined in customizing. Examples are labor, machine, energy and so on. You must maintain data to enable the system to calculate available capacity at that work center for that category. Examples include calendar assignment, start time, stop time, length of breaks, utilization, number of individual capacities. This is maintained in the capacity header screen of the capacity category for the work center. If you indicate that a capacity is pooled, then it may be used by several work centers. An example is a setup team. They can perform setups at several work centers but can only work at one work center at a time. You may allocate one or more capacity categories to a work center. Capacity categories are defined in customizing. Examples are labor, machine, energy and so on. You must maintain data to enable the system to calculate available capacity at that work center for that category. Examples include calendar assignment, start time, stop time, length of breaks, utilization, number of individual capacities. This is maintained in the capacity header screen of the capacity category for the work center. If you indicate that a capacity is pooled, then it may be used by several work centers. An example is a setup team. They can perform setups at several work centers but can only work at one work center at a time.

10. Routing Work Center / Operation Routings within a routing group are used for producing similar materials. One routing group can also contain routings with similar production processes. The alternative sequence enables you to select alternative operations for a sequence of operations - for example, in the case of different work procedures for different batch sizes or capacity bottlenecks. The parallel sequence enables you to process operations independently of others. Routings within a routing group are used for producing similar materials. One routing group can also contain routings with similar production processes. The alternative sequence enables you to select alternative operations for a sequence of operations - for example, in the case of different work procedures for different batch sizes or capacity bottlenecks. The parallel sequence enables you to process operations independently of others.

11. Bill of Material

12. Planned Order Conversion

13. Production Order Creation You may create a production order manually or by converting a planned order. The system can create a production order automatically from a sales order, for example. Various control parameters are associated with the order type, including the number range the order will use and how the order costs are to be calculated. Configuration settings determine how a routing is selected. The selected routing then is copied to the order. Therefore, subsequent changes to the routing master do not affect existing production orders. The system automatically carries out lead-time scheduling. Here, the production order start date or finish date is calculated, as well as the detailed dates and times of all operations. The bill of material data from the planned order is copied to the production order. As with the routing, subsequent changes to the BOM master do not affect existing production orders. A configuration setting determines whether the component and/or capacity availability check is automatically carried out. You may manually check availability at any time. You may add, change or delete order information as required. When you save the order, the system calculates the planned costs.You may create a production order manually or by converting a planned order. The system can create a production order automatically from a sales order, for example. Various control parameters are associated with the order type, including the number range the order will use and how the order costs are to be calculated. Configuration settings determine how a routing is selected. The selected routing then is copied to the order. Therefore, subsequent changes to the routing master do not affect existing production orders. The system automatically carries out lead-time scheduling. Here, the production order start date or finish date is calculated, as well as the detailed dates and times of all operations. The bill of material data from the planned order is copied to the production order. As with the routing, subsequent changes to the BOM master do not affect existing production orders. A configuration setting determines whether the component and/or capacity availability check is automatically carried out. You may manually check availability at any time. You may add, change or delete order information as required. When you save the order, the system calculates the planned costs.

14. Production Order Processing An order proposal comes from MRP in the form of a planned order, or it may come from an external source, for example a request from engineering. Once created, the production order authorizes manufacture of the material in the specified quantity. You have the option to check whether all the material components allocated to the production order are available on the requirement dates. You may check that capacity is available at the work centers. Order release enables stock movements, printing of shop paperwork, confirmations. Order printing is carried out using lists, which are configurable. Material withdrawal is issuing the necessary components from stock via goods issues. Confirmations record the quantity produced at an operation, how much activity was used to carry out the operation, who performed the operation, and at which work center the operation was performed. Warehouse receipt is the delivery and recording of the manufactured material to the storage location or warehouse. Order settlement is when the actual costs incurred for the order are settled to one or more accounts. Offsetting entries automatically credit the production order. Orders can be archived and deleted from the database.An order proposal comes from MRP in the form of a planned order, or it may come from an external source, for example a request from engineering. Once created, the production order authorizes manufacture of the material in the specified quantity. You have the option to check whether all the material components allocated to the production order are available on the requirement dates. You may check that capacity is available at the work centers. Order release enables stock movements, printing of shop paperwork, confirmations. Order printing is carried out using lists, which are configurable. Material withdrawal is issuing the necessary components from stock via goods issues. Confirmations record the quantity produced at an operation, how much activity was used to carry out the operation, who performed the operation, and at which work center the operation was performed. Warehouse receipt is the delivery and recording of the manufactured material to the storage location or warehouse. Order settlement is when the actual costs incurred for the order are settled to one or more accounts. Offsetting entries automatically credit the production order. Orders can be archived and deleted from the database.

15. Goods Movement To be able to start completing a material, the material components required for production must be removed from the warehouse using goods issues. The product is delivered to the warehouse when a goods receipt is created. Both types of goods movements trigger the following operations in the system: A material document is created. This serves as of for the movement. An accounting document is generated. This describes the goods movement from the accounting view. The inventory amounts of the material are updated. The inventory value in the material master record and the inventory/consumption accounts.To be able to start completing a material, the material components required for production must be removed from the warehouse using goods issues. The product is delivered to the warehouse when a goods receipt is created. Both types of goods movements trigger the following operations in the system: A material document is created. This serves as of for the movement. An accounting document is generated. This describes the goods movement from the accounting view. The inventory amounts of the material are updated. The inventory value in the material master record and the inventory/consumption accounts.

16. Updating stock quantities Updating stock values Reducing reservations Calculating actual costs and up-dating the order Goods Issue When you open a production order, the system automatically creates a reservation for the required material components. Each material component of the order contains a separate item number within the reservation. Material withdrawals reduce the reservation and the values of the material components removed in the order as actual costs as per cost type and origin. The material withdrawal postings can be carried out automatically by production messages from a PI sheet or a production control system. When you open a production order, the system automatically creates a reservation for the required material components. Each material component of the order contains a separate item number within the reservation. Material withdrawals reduce the reservation and the values of the material components removed in the order as actual costs as per cost type and origin. The material withdrawal postings can be carried out automatically by production messages from a PI sheet or a production control system.

17. Production Order Confirmations Production order confirmations (sometimes called completion confirmations) are used to record internal activities carried out for the order. Based on this information, you can follow the progress of the production order. A confirmation is used to record: Quantity produced at the operation Amount of activity (for example labor hours) at the operation The work center where the operation was performed Who performed the operation You can enter confirmations for an order, an operation, a sub-operation, or a capacity of an operation or sub-operation. A confirmation can cause, for example: A reduction of capacity load on the work center An update of costs Withdrawal inventory postings for backflushed items Goods receipt of the completed productProduction order confirmations (sometimes called completion confirmations) are used to record internal activities carried out for the order. Based on this information, you can follow the progress of the production order. A confirmation is used to record: Quantity produced at the operation Amount of activity (for example labor hours) at the operation The work center where the operation was performed Who performed the operation You can enter confirmations for an order, an operation, a sub-operation, or a capacity of an operation or sub-operation. A confirmation can cause, for example: A reduction of capacity load on the work center An update of costs Withdrawal inventory postings for backflushed items Goods receipt of the completed product

18. Production Order - Preliminary Costing

19. Cost of Production Order The costs of the internal activities are a function of the activity types, formulas, standard values, quantities, and so on. An example of an internal activity is the labor cost for setup. Material cost for the components is another element of the production order cost. Overhead is calculated periodically.The costs of the internal activities are a function of the activity types, formulas, standard values, quantities, and so on. An example of an internal activity is the labor cost for setup. Material cost for the components is another element of the production order cost. Overhead is calculated periodically.

20. WIP and Variance Calculation in Lot-Based Cost Object Controlling If you do lot-based product controlling Work in Process is valuated at actual costs. The work in process is calculated as the difference between the debit and credit of an order as long as the order does not have the status DLV (delivered). In lot-based product controlling the variances are not calculated until the order has the status DLV (finally delivered) or TECO (technically completed). This means that at the time the order has reached this status, the system no longer interprets the difference between the debit and the credit as work in process but as a variance. In lot-based product controlling, orders never have work in process and variances at the same time. If you do lot-based product controlling Work in Process is valuated at actual costs. The work in process is calculated as the difference between the debit and credit of an order as long as the order does not have the status DLV (delivered). In lot-based product controlling the variances are not calculated until the order has the status DLV (finally delivered) or TECO (technically completed). This means that at the time the order has reached this status, the system no longer interprets the difference between the debit and the credit as work in process but as a variance. In lot-based product controlling, orders never have work in process and variances at the same time.

21. Settlement of Order (Example) For materials that are controlled according to the standard price, the goods receipt into the warehouse occurs on completion of production at the standard price. This usually results from a standard cost estimate that has been released. The credit of a cost object is the result of the quantity delivered to the warehouse, multiplied by the standard price. On goods receipt, the system automatically posts �stock to stock change� in accounting. During settlement, the value of the total variance is posted to a price difference account in Financial Accounting. The value of the total variance is also updated in the material ledger. You can settle the variance categories to the cost-based profitability analysis (CO-PA). Only the variances determined with target version 0 are relevant for settlement to the profitability analysis. You settle to the cost-based profitability analysis according to variance category and cost element group. You control the variance categories in the profitability analysis in value fields. For materials that are controlled according to the standard price, the goods receipt into the warehouse occurs on completion of production at the standard price. This usually results from a standard cost estimate that has been released. The credit of a cost object is the result of the quantity delivered to the warehouse, multiplied by the standard price. On goods receipt, the system automatically posts �stock to stock change� in accounting. During settlement, the value of the total variance is posted to a price difference account in Financial Accounting. The value of the total variance is also updated in the material ledger. You can settle the variance categories to the cost-based profitability analysis (CO-PA). Only the variances determined with target version 0 are relevant for settlement to the profitability analysis. You settle to the cost-based profitability analysis according to variance category and cost element group. You control the variance categories in the profitability analysis in value fields.

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