Business Blueprint

Production Planning of
Rockman Cycle Industries Ltd
Created by: Date of creation: Changed by: Date of the last changes: Version: Manu Khanna, Swapnil Kr. Baishya 11/07/2003 Manu Khanna, Swapnil Kr. Baishya 28/07/2004 4.7 ENTERPRISE

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Sign Off Date

Signature Customer

Signature Consulting

Table of Contents
1. INTRODUCTION............................................................................................................................................................................5 1.1. PURPOSE...................................................................................................................................................................................5 1.2. SCOPE........................................................................................................................................................................................5 1.3. KEY BUSINESS BENEFITS.....................................................................................................................................................5 2. ORGANIZATION............................................................................................................................................................................6 2.1. GENERAL EXPLANATION.............................................................................................................................................................6 2.2. NAMING CONVENTION.................................................................................................................................................................7 2.3. DEFINITION OF ORGANIZATIONAL UNITS....................................................................................................................................7 2.4. CROSS-APPLICATION/CENTRAL ORGANIZATIONAL UNITS.....................................................................................11 3. MATERIAL GROUPING - FINISHED PRODUCT AND SEMI-FINISHED PRODUCTS.................................................13 3.1 CODING LOGIC FOR FINISHED PRODUCTS:-................................................................................................................................13 GROUP..............................................................................................................................................................................................13 AUTO CHAIN...................................................................................................................................................................................13 GROUP..............................................................................................................................................................................................13 3.1. SEMI FINISHED PRODUCT:.................................................................................................................................................13 GROUP..............................................................................................................................................................................................14 AUTO CHAIN...................................................................................................................................................................................14 GROUP..............................................................................................................................................................................................14 ALL THE FINISHED PRODUCTS AND WIP ARE TO BE ASSIGNED TO ONE OF THESE MATERIAL GROUPS. IN FUTURE MORE MATERIAL GROUPS CAN BE ADDED OR DELETED THROUGH CUSTOMIZING FOLLOWING THIS SEQUENCE.............................................................................................................................................................................15 4. MATERIAL CODING SYSTEM.................................................................................................................................................15 4.1. CODING LOGIC FOR AUTO CHAIN FINISHED GOODS:................................................................................................15 CODING LOGIC FOR CYCLE CHAIN FINISHED GOODS:....................................................................................................17 CODING LOGIC FOR CYCLE HUB FINISHED GOODS:.........................................................................................................18 CODING LOGIC FOR AUTO HUB FINISHED GOODS:...........................................................................................................18 4.2. CODING LOGIC FOR AUTO CHAIN WIP PARTS:.............................................................................................................19 4.3. CODING LOGIC FOR CYCLE CHAIN WIP PARTS:...........................................................................................................20 4.4. CODING LOGIC FOR AUTO HUB WIP PARTS:.................................................................................................................20 4.5. CODING LOGIC FOR CYCLE HUB WIP PARTS:..............................................................................................................21 5. MATERIAL BOM.........................................................................................................................................................................21 5.1. MULTIPLE BOM........................................................................................................................................................................21 5.2. VARIANT BOM..........................................................................................................................................................................22 5.3. SELECTION OF ALTERNATE BOM....................................................................................................................................22 5.4. ESSENTIAL PRODUCTION SCRAP.....................................................................................................................................23 5.5. QUESTIONS MATERIAL BOM :..................................................................................................................................................24 6. WORK CENTER...........................................................................................................................................................................28 6.1. PERSON RESPONSIBLE FOR THE WORK CENTER.........................................................................................................29 6.2. CAPACITY...............................................................................................................................................................................30 6.3. SHIFT AND SHIFT SEQUENCE............................................................................................................................................30 Page 2 of 77

6.4. QUESTIONS: WORK CENTERS.....................................................................................................................................................31 6.5. QUESTIONS: SHIFT SEQUENCE...................................................................................................................................................34 6.6. QUESTIONS: PRODUCT DATA MANAGEMENT..................................................................................................................34 6.7. QUESTIONS: ECR/ECO.............................................................................................................................................................34 6.8. QUESTIONS: CAPACITY..............................................................................................................................................................35 6.9. CAPP FORMULA........................................................................................................................................................................35 7. ROUTING......................................................................................................................................................................................35 7.1. QUESTIONS: ROUTINGS..............................................................................................................................................................37 7.2. REPETITIVE MANUFACTURING PRODUCT COST COLLECTORS..................................................................................................39 8. DEMAND MANAGEMENT.........................................................................................................................................................41 8.1. QUESTIONS: SALES AND OPERATIONS PLANNING.....................................................................................................................43 8.2. DEMAND MANAGEMENT...........................................................................................................................................................44 8.3. QUESTIONS: MASTER PRODUCTION SCHEDULING.....................................................................................................................45 9. PRODUCTION PLANNING AND PROCUREMENT PLANNING- MRP............................................................................48 9.1. MRP CONTROLLER....................................................................................................................................................................48 9.2. PRODUCTION PLANNING AND PROCUREMENT PLANNING......................................................................................49 10. PLANNED ORDERS PROCESSING........................................................................................................................................50 11. PRODUCTION ORDER CREATION......................................................................................................................................51 11.1. CONVERSION OF PLANNED ORDER...............................................................................................................................52 11.2. EVALUATIONS: LOGISTICS INFORMATION SYSTEM.................................................................................................................53 12. RELEASE OF PRODUCTION ORDER...................................................................................................................................53 13. CAPACITY REQUIREMENTS PLANNING..........................................................................................................................54 14. REPETITIVE MANUFACTURING.........................................................................................................................................57 14.1. QUESTIONS: CONVERSION OF PLANNED ORDER.....................................................................................................................59 14.2. QUESTIONS: CREATING/PROCESSING PRODUCTION ORDER....................................................................................................59 14.3. QUESTIONS: PRINTOUT OF PRODUCTION ORDER....................................................................................................................60 14.4. QUESTIONS: MATERIAL STAGING............................................................................................................................................60 14.5. QUESTIONS: CAPACITY REQUIREMENTS PLANNING................................................................................................................60 14.6. CAPACITY DISPATCHING AND LEVELING................................................................................................................................61 14.7. PRODUCTION ORDER EXECUTION...........................................................................................................................................61 14.8. GOODS ISSUE PROCESSING FOR PRODUCTION ORDERS..........................................................................................................61 14.9. PRODUCTION ORDER EXECUTION...........................................................................................................................................62 14.10. QUESTIONS: CAPACITY REQUIREMENTS PLANNING..............................................................................................................62 14.11. CAPACITY DISPATCHING AND LEVELING..............................................................................................................................63 14.12. PRODUCTION ORDER EXECUTION.........................................................................................................................................63 14.13. PRODUCTION ORDER EXECUTION.........................................................................................................................................64 14.14. PRODUCTION ORDER CONFIRMATION...................................................................................................................................65 14.15. PROCESSING OF GOODS RECEIPTS FROM PRODUCTION.........................................................................................................65 15. QUESTIONS: REPETITIVE MANUFACTURING................................................................................................................66 15.1. PROCESSING OF MASTER PRODUCTION SCHEDULE.................................................................................................................66 15.2. MATERIAL STAGING................................................................................................................................................................67 15.3. PROCESSING THE PULL LIST....................................................................................................................................................67 16. REPORTS.....................................................................................................................................................................................68 17. ANNEXURE I...............................................................................................................................................................................70

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18. ANNEXURE II.............................................................................................................................................................................72 19. ANNEXURE III...........................................................................................................................................................................73 20. ANNEXURE IV........................................................................................................................................................................75

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1. Introduction

1.1. PURPOSE
The purpose of the Business Blueprint is to document the detailed System and Business Process Requirements, and to implement the SAP R/3 System based on those by Rockman Cycle Industries Limited (RCIL). This document summarizes the proposed decisions associated with implementation as they relate to the configuration of SAP.

1.2. SCOPE
The Implementation Scope includes the following SAP R/3 Sub-Modules in Production Planning: 1.2.1. MASTER DATA Material master Bill of material Work center Routing 1.2.2. PRODUCTION PLANNING Demand management 1.2.3. MATERIAL REQUIREMENT PLANNING

1.2.4. PRODUCTION CONTROL Order Control Goods movement Confirmation 1.2.5. CAPACITY PLANNING & SCHEDULING

1.3. KEY BUSINESS BENEFITS

The SAP System will provide the following Key Business Benefits: 1.3.1. General SAP will provide Access to Real-Time, On-Line Information with timely processing. SAP will offer stronger, more robust Reporting Tools.
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Saps Integrated Database eliminates the need for data replication and stand-alone systems, while decreasing the chance for human errors. This will reduce non-value-added work while improving overall data integrity and give broader information access. SAP is Packaged Software, which is readily scalable. As such, the SAP software will serve as a facilitator of future growth. 1.3.2. PP-Related Entire Production Planning and Control process will be captured for the first time in a computerized SAP R/3 system. Part numbers for semi finished product defined, so that stock valuation at various WIP stages can be done through SAP. Material requirement planning will be performed through a much accurate MRP run process in SAP. Material will be planned from the finished products till the raw material stage. For the Material Type Production resources, consumables and tools, consumption based planning will be undertaken. Planned Scrap outcome of the production process will be accounted through the SAP system automatically and back-flushed to Scrap store. Capacity planning, Production scheduling with the Rockman Shift sequence will be performed through SAP. Product Costing to be obtained through SAP. Standard SAP reports will be generated for all production processes. All the Work Centers in PP are assigned to Cost center. All the production costs will automatically get accumulated in the cost centers. All the PP master data will be loaded on to the system resulting in generation of the planned costs of the production processes. Actual production can be confirmed in the system, which will generate the actual costs. Variance in the planned and actual costs can be identified and the desired improvements can be effected in order to improve and further control the production process. This is only possible through the integration of the various modules.

2. ORGANIZATION

2.1. General Explanation

In SAP an organizational structure consists of the following units: Client Company code Plant Storage location Purchasing organization Sales organization The client is the top level. Several company codes can be assigned to it. In turn, several plants can be assigned to a company code, and several storage locations assigned to a
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plant.

2.2. Naming Convention

Proposed Organization structure for Rockman is as follows: Client Company Code Plants Cycle Hub and Chain Auto Components and Chain Storage Locations Incoming Raw material WIP Store Finished Goods Rejection Rework Scrap Hero store 300 RCIL C000 A000 A100, C100 A200, C200 AC00, AC10, AH00, CC00, CC10, CH00, CH10 A300, C300 A400, C400 A500, C500 A600, C600 C700

2.3. Definition of Organizational Units

Client In commercial, organizational, and technical terms, self-contained units in an R/3 System with separate master records and its own set of tables. A client can, for example, be a corporate group. Company Code The smallest organizational unit for which a complete self-contained set of accounts can be drawn up for purposes of external reporting. This involves recording all relevant transactions and generating all supporting documents for financial statements such as balance sheets and profit and loss statements. A company code can, for example, be a company or subsidiary Plant An organizational unit serving to subdivide an enterprise according to production, procurement, maintenance, and material planning aspects. It is a place where either materials are produced or goods and services provided. Storage Location An organizational unit allowing differentiation between the various stocks of a material in a plant.
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Organization Structure- Production Planning, Rockman Cycle Limited:

Client 300 Client 300

Industries

Purchase Org Purchase Org

Company code RCIL Company code RCIL

Sales Org Sales Org

Auto Business Area Auto Profit Centre Group Auto Plant A000 (Excise) With Tool Room

Cycle Business Cycle Profit Centre Group

Auto Hub Profit Center

Cycle Plant C000 ( Non -Excise)

Gen Store C100 Raw Mat. C200 WIP HubB ef Plat CH00 WIP Hub Aft Plat

Cycle Chain Profit Center

Auto chain Profit Center

Gen Store A100 Raw Mat. A200 WIP Hub AH00 Fin.Good s A300 Rejecti n A400

Cycle Hub Profit Center

WIP Chain Soft

WIP Chain Hard

WIP Chain Soft

WIP Chain Hard

Fin.Good s C300

Rejecti n

Rewor k C500

Rewor k A500 Scrap A600

Hero Store C700

Scrap C600

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2.3.1. Questions:

Company

Q: 1) Do you want to structure the company into one or more separate legal entities? A: No Q: 2) Do you have foreign companies? A: No Q: 3) Which companies are going to work with which chart of account? A: Rockman Cycle with RCIL chart of account Q: 4) In which currencies are the transactions posted in the companies? A: Indian Rupee 2.3.2. COMPANY CODE Questions:
Q: 1)

Which legal entities (company codes) will you have and in which countries?

A: Rockman Cycle in India Q: 2) Which companies are required to use a statutory chart of accounts for reporting purposes? A: Rockman Cycle India Limited. Q: 3) Will a different chart of accounts be used for consolidation purposes? A: No Q: 4) Specify the different levels of consolidation (for example, by country, by region). A:By Country and Plant

2.3.3.Controlling Area Questions:

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Q: 1) Are you using one centralized controlling system or do you follow a decentralized approach with several independent-controlling systems A: One Controlling Area Q: 2) Provided that company codes use the same chart of accounts and fiscal year variant: Which company code(s) do you want to assign to your controlling area(s)? A: RCIL Q: 5) If you wish to have unified Controlling, which currency or currencies are you planning to use? A: The Controlling area currency shall be INR Q: 6) On which currencies should your Controlling be based? A: INR Q: 7) Which companies are going to work with which chart of account? A: Rockman Cycle with RCIL chart of account 2.3.4. Questions: Q: 1) Are all plants in the same country? List the plants and countries. A: Yes .The plants are located in India, city Ludhiana. There are two plants Auto plant and Cycle plant. Q: 2) Will negative Stocks be allowed in any plants? If yes, specify the plants. A: No Negative stocks will not be allowed in any plant. Q: 3) Do you need special plants for your maintenance work apart from the common logistics plants? A: No Q: 4) Which enterprise entities carry out production and what do they produce? A: The production is carried out by the following plants:Auto Plant manufactures wheel hub, crank case, and chain for motorcycles. Cycle plant manufactures hub and chain for Cycle. Plant

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Q: 5) How does material move between plants (for example, using purchase orders or not)? What are the requirements you have to fulfill concerning reporting, transport papers, etc.? A: There is no movement of raw material between the plants. Q: 6) outline all facilities/locations that create, distribute, or store inventory. A: There are two facilities where inventory is created Auto and Cycle plants. Each of these plants will have finished goods store, Raw material store, WIP store, Rejection store, Rework store and Scrap yard. Q: 7) Does the manufacturing/distribution process for a product differ such that the inventory value/cost structure is different at each facility/plant? If so, please explain how. A: Yes. Because of different product mix differ from .the manufacturing/distribution process

2.4. CROSS-APPLICATION/CENTRAL ORGANIZATIONAL UNITS

General Explanation An organizational unit serving to subdivide an enterprise according to production, procurement, maintenance, and material planning aspects. It is a place where either material is produced or goods and services provided. All data that is valid for a particular plant, as well as for the storage locations belonging to it, is stored at plant level. This includes, for example, MRP data and forecast data. Naming Convention It is being proposed that the following number of plants will be created 1. Auto Plant Code-A000 2. Cycle Plant Code-C000 Definition of Organizational Units An organizational unit serving to subdivide an enterprise according to production, procurement, maintenance, and material planning aspects. It is a place where either material is produced or goods and services provided. Assignment of Organizational Units All data that is valid for a particular company code, as well as for the plants and storage locations assigned to it, is stored at company code level. This includes, for example, accounting data and costing data if valuation is at company code level.
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Changes to existing Organization It had been proposed that two plants be created (A000, C000) and assigned to the company code RCIL. Various storage locations for finished goods, raw material, WIP, scrap, rework will be created and assigned to each plant. 2.4.1. CALENDAR Requirements/Expectations Factory calendar needs to be maintained in the system. In this the working days are to be defined and the holidays. This information is used in various modules. Country wise calendars are already maintained in the system. The Rockman factory calendar is being created with the Id RK. The following holidays are being maintained specific to Rockman Cycle Industries Limited: Birthday of Guru Govind Singh Republic Day Holi Baisakhi Independence day Janmastam Gandhi jayanti Vijaya dashmi Diwali Vishwakarma Puja Birthday of Sri Guru Nanak dev

The Factory Calendar needs to be updated each year based on the decided holidays. The Factory Calendar acts as the basis for Capacity Planning as it defines the working days in a year. In SAP there are two type of holidays. Holidays are to be created and then assigned to the factory calendar. 2.4.2. UNITS OF MEASUREMENT Requirements/Expectations Units of measure are required to facilitate the procurement and management of various items in multiple order units. General Explanations The unit of measure is utilized to describe the unit in which items are procured or stored. There are over 220 different units of measure provided by SAP. System Configuration Considerations Units of measure to be used must be entered in the Purchase Requisition and Purchase Order
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in SAP. Special Considerations Units of measure that have been used in the past will be configured in SAP if they do not exist already.

3. MATERIAL GROUPING - FINISHED PRODUCT AND SEMIFINISHED PRODUCTS

The following material grouping has been defined for the finished and semi-finished products at Rockman Cycle Industries Limited in the SAP. The Material Grouping is for the Reporting purpose.

3.1 Coding Logic for Finished Products:GROUPING LOGIC: FA-FINISHED PRODUCT, AUTO PLANT FC- FINISHED PRODUCT, CYCLE PLANT NUMBER RANGE: AUTO CHAIN AUTO COMP CYCLE HUB CYCLE CHAIN FINISHED PRODUCT:
AUTO COMP P17 model P21 model P40 model P60 model P70 model GRO UP FC21 FC22 FC23 FC24 FC25 AUTO CHAI N DRIVE CAM GROU P FA01 FA02

FA01-FA20 FA21- FA40 FC01-FC20 FC 21-FC40

GROUP FA21 FA22 FA23 FA24 FA25

CYCLE HUB THIN FRONT THIN REAR OVAL FRONT OVAL REAR THICK FRONT THICK REAR PARALLAL FRONT PARALLAX REAR WHEEL CHAIR CART WHEEL PAIRED HUB

GROUP FC01 FC02 FC03 FC04 FC05 FC06 FC07 FC08 FC09 FC10 FC11

CYCLE CHAIN X 1/8 NORMAL X 1/8 HD X 3/32 BUSHLESS X 3/32 WITH BUSH 1/2X 1/8 BUSHLESS

3.1. SEMI FINISHED PRODUCT:

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GROUPING LOGIC: SA- SEMIFINISHED PRODUCT, AUTO PLANT SC- SEMI FINISHED PRODUCT, CYCLE PLANT NUMBER RANGE: AUTO CHAIN AUTO COMP CYCLE HUB CYCLE CHAIN : : : : WA01-WA20 WA21- WA40 WC01-WC20 WC 21-WC40

AUTO COMP CASTED MACHINED PAINTED MOLTEN METAL

GROUP WA21 WA22 WA23 WA24

CYCLE HUB BLANK TUBE SSHELL WITHOUT PLATING PLATED SHELL PAINTED SHELL HUB CUP PLAIN DUST WASHER HUB CONE AXLE LOCKNUT OUTER NUT DOME NUT WASHER HUB SPACER REDUCED BARREL DUST WASHER WITHOUT COATING ZP/CWH SHEET NUT SPL.TYPE

GROUP WC01 WC02 WC03 WC04 WC05 WC06 WC07 WC08 WC09 WC10 WC11 WC12 WC13 WC14 WC15 WC16

CYCLE CHAIN SOFT COMPONENTS HARDENED COMPONENTS

GR OU P WC21 WC22

AUTO CHAIN

GROU P WA01 WA02

SOFT COMPONENTS HARDENED COMPONENTS

WC17

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All the Finished products and WIP are to be assigned to one of these material groups. In future more material groups can be added or deleted through customizing following this sequence.

4. MATERIAL CODING SYSTEM

The following material coding system is defined for all finished products and WIP at Rockman Cycle Industries Limited: Total number of digits will be 8 for all material types

4.1. CODING LOGIC FOR AUTO CHAIN FINISHED GOODS:

Number Range for finished goods Auto Chain: - 71000001 to 71999999

X X

XX XXXX

7 FOR FINISHED GOODS

1 FOR SECTION AUTO CHAIN

01 OE DRIVE CHAIN 02 OE CAM CHAIN 11 RM DRIVE CAHIN 12 RM CAM CHAIN

NUMBER OF LINKS

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CODING LOGIC FOR CYCLE CHAIN FINISHED GOODS:

Number Range for finished goods Cycle Chain: - 73000001 to 73999999

XXXX

7 FOR FINISHED GOODS

3 FOR SECTION CYCLE CHAIN

MATERIAL GROUP
1 FOR 1/8 NORMAL 2 FOR 1/8 HEAVY DUTY 3 FOR 3/32 BUSH LESS 4 FOR 3/32 WITH BUSH 5.FOR 1/8 CHAMFFERED

PACKING
0 LOOSE SINGLE PIECE 1 PACK SINGLE PIECE 2 LOOSE FOUR PIECE 3 20 PIECE LOOSE SINGLE 4 25 PIECE LOOSE FOUR PIECE 5 50 PIECE LOOSE SINGLE PIECE 6 50 PIECE PACK SINGLE PIECE 7 100 PIECE LOOSE SINGLE PIECE 8 100 PIECE PACK SINGLE PIECE

REPRESENTS NO OF LINKS 0001 to 9999

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CODING LOGIC FOR CYCLE HUB FINISHED GOODS:

Number Range for finished goods Cycle Hub: 74000001 to 74999999

X X

XX

XXXX

7 FOR FINISHED GOODS

4 FOR SECTION CYCLE HUB

MATERIAL GROUP
01 THIN FRONT 02 THIN REAR 03 OVAL FRONT 04 OVAL REAR 05 THICK FRONT 06 THICK REAR 07 PARALLAX FRONT 08 PARALLAX REAR 09 WHEEL CHAIR 10 CART WHEEL 11 PAIRED HUB

RUNNING NUMBERS 0001.TO

CODING LOGIC FOR AUTO HUB FINISHED GOODS:

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Number Range for finished goods Auto Hub: -

72000001 to

72999999

X X

XX

XXXX

7 FOR FINISHED GOODS

2 FOR AUTO HUB

MATERIAL GROUP
21 FOR P17 22 FOR P21 23 FOR P40 24 FOR P60 25 FOR P70 RUNNING NUMBERS 0001 TO 9999

CODING LOGIC FOR WIP COMPONENTS:-

4.2. CODING LOGIC FOR AUTO CHAIN WIP PARTS:

Number Range for Semi finished goods Auto Chain: 51000001 to 51999999

XXXX

5 FOR WIP 5 FOR WIP

1 FOR SECTION AUTO CHAIN 1 FOR SECTION AUTO CHAIN

1 DRIVE CHAIN DRIVE CHAIN 21 CAM CHAIN 2 CAM CHAIN

1 HEAT TREATED HEAT TREATED 21 SOFT 2 SOFT

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RUNNING NUMBERS 0001 TO 9999 RUNNING NUMBERS 0001 TO 9999

4.3. CODING LOGIC FOR CYCLE CHAIN WIP PARTS:

Number Range for Semi finished goods Cycle Chain: - 53000001 to 53999999

X X

XX

XXXX

5 FOR WIP GOODS 5 FOR WIP GOODS

3 FOR SECTION CYCLE CHAIN 3 FOR SECTION CYCLE CHAIN

MATERIAL GROUP MATERIAL GROUP 01 FOR SOFT COMPONENTS

01 FOR SOFT COMPONENTS 02 FOR HARDENED COMPONENTS 02 FOR HARDENED COMPONENTS

RUNNING NUMBERS 0001 to 9999 RUNNING NUMBERS 0001 to 9999

4.4. CODING LOGIC FOR AUTO HUB WIP PARTS:

Number Range for Semi finished goods Auto Hub: - 52000001 to 52999999

X X

XX

XXXX

5 FOR WIP GOODS 5 FOR WIP GOODS

2 FOR SECTION AUTO HUB 2 FOR SECTION AUTO HUB

MATERIAL GROUP MATERIAL 21 FOR CASTED GROUP COMPONEN

21 FOR CASTED COMPONEN 22 FOR MACHINED COMPONENT 22 FOR MACHINED COMPONENT 23 FOR PAINTED COMPONENT 23 FOR PAINTED COMPONENT 24 FOR MOLTEN METAL 24 FOR MOLTEN METAL

REPRESENTS RUNNING 0001 TO 9999 REPRESENTS RUNNING 0001 TO 9999

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4.5. CODING LOGIC FOR CYCLE HUB WIP PARTS:

Number Range for Semi finished goods Cycle Hub: - 54000001 to 54999999

X X

XX

XXXX

5 FOR WIP GOODS 5 FOR WIP GOODS

4 FOR SECTION CYCLE HUB 4 FOR SECTION CYCLE HUB

MATERIAL GROUP MATERIAL 01 FOR BLANK GROUP

01 FOR BLANK 02 FOR TUBE 02 FOR TUBEWITHOUT PLATING 03 FOR SHELL 03 FOR SHELL SHELL WITHOUT PLATING 04 FOR PLATED 04 FOR PLATEDSHELL SHELL 05 FOR PAINTED 05 FOR PAINTED SHELL 06 FOR HUB CUP PLAIN 06 FOR HUB WASHER CUP PLAIN 07 FOR DUST THIN/THICK 07 FOR DUST WASHER THIN/THICK 08 FOR HUB CONE 08 FOR HUB CONE 09 FOR AXLE 09 FOR AXLE 10 FOR LOCKNUT 10 FOR LOCKNUT 11 OUTER NUT 11 OUTER NUT 12 FOR DOME NUT 12 FOR DOME NUT 13 FOR WASHER 13 FOR WASHER 14 FOR HUB SPACER 14 FOR HUB SPACER 15 FOR REDUCED BARREL 15 FOR REDUCED BARREL 16 FOR DUST WASHEWITHOUTCOATINCWH/ZP. 16 FOR DUST WASHEWITHOUTCOATINCWH/ZP. 17 SHEET NUT SPECIAL TYPE 17 SHEET NUT SPECIAL TYPE

REPRESENTRUNNING NUMBERS. 0001 TO 9999 REPRESENTRUNNING NUMBERS. 0001 TO 9999

5. MATERIAL BOM
A formally structured list of the components that make up a product or assembly. The list contains the object number of each component, together with the quantity and unit of measure. You can create the following BOMs in the SAP system: Material BOMs Equipment BOMs Functional location BOMs Document structures Order BOM

5.1. Multiple BOM

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One product can be manufactured from alternative combinations of materials depending on the quantity to be produced (lot size). The product is represented by a number of alternative BOMs (alternatives). The differences between the alternative BOMs are only small. Usually the only difference is in the quantity of individual components. In SAP R/3 configuration we will be using Multiple BOM for Outer plate in Cycle Chain as it is being produced through 3 various strips of different widths while the end product is the same. A multiple BOM groups together several BOMs that describe one object (for example, a product) with different combinations of materials for different processing methods

5.2. Variant BOM

The term "variant" refers to changes to the basic model of a product. These changes occur when components are left out or added. If you are producing several similar products that have a lot of common parts, you can describe these products using a variant BOM. This is the case, for example, if you replace one material component with another to make a different product. Variants can also differ by containing different quantities of a component. You create the new BOM as a variant of an existing BOM. Variant BOM In M/s Rockman variant BOM can be created in case of Cycle chain and Auto chain as the final products vary with only the number of links getting changed.

5.3. SELECTION OF ALTERNATE BOM

During MRP run the alternate BOM will be selected automatically based on lotsize/production version. Planned orders get created .In the planned order ATP check to be carried out for
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material. In case material is not available, alternate BOM maintained under a different version is selected manually and ATP check is performed. The planned order is converted to production order. The above-mentioned procedure to be confirmed during testing with data.

5.4. ESSENTIAL PRODUCTION SCRAP

The essential scrap generated in the production process will be included as by-products in the Bill of material. The same will be back flushed to the scrap storage location when the order is confirmed. For inclusion in the bill of material, part numbers have been defined for the different types of scrap generated in production for both the plants. The coding logic defined for the scrap part number is as below: X X X XXXX Running Numbers Section (10 Auto Chain, 20 Auto Hubs, 30 Cycle Chain, and 40 Cycle Hub) 0 Production/1 General Auto Scrap/ 2 General Cycle Scrap 8 Denoting Scrap Example: 80100001 or 80200001 or 80300001 or 80400001; 81000000, 82000000 Requirements/Expectations To define a uniform BOM applicable to both Production, Costing and inventory management functionality of the organization. The same BOM will be used in various functionality's of Production say for example BOM explosion during Production planning MRP run. BOM explosion during production confirmation while back flushing. General Explanations A BOM is a formally structured list of the components that make up a product or assembly. The list contains the object number of each component, together with the quantity and unit of measure. BOMs are used in their different forms in various situations where a finished product is assembled from several component parts or materials In the case of BOM, simple BOM, variant BOM, multiple BOM will be used as applicable. Multi-level BOMs will be created for various products manufactured in plants A000 and C000.The first level will contain all the finished products, which are dispatched to the customer and then the second level and so on. The last level down the line will have raw materials procured from outside for the purpose of manufacturing finished or semi-finished components. Naming/Numbering Conventions Each BOM for a finished product will have the finished product code as the header.
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Each BOM for a WIP will have the WIP code as the header. Description of Improvements Creation of consistent and uniform master data, for example bill of material, and activities across the organization for the purpose of Costing, Production and Inventory Management purpose. Putting the same data say for example the methods of production, time required for production etc for each and every material at one place. Description of Functional Deficits In some cases both Variant and multiple BOM are required for production. For example certain product will be a variant BOM with reference to a BOM which represent the most standard BOM of that product. As in SAP it is not possible to have both variant and multiple BOM for the same header material it is required to decide which functionality (Variant/ Multiple) is required to greater extent and then accordingly choose one of them and manage without other functionality. Approaches to covering Functional Deficits To make up for the limitation mentioned above it will be required to decide which is a more suitable and required functionality to decide on the BOM type to be created. Authorization and User Roles The functions of BOM creation, Change, Deletion will be available only with the designated person/group of person within each plant. Similarly display mode to available for end-users working on the functionality.

5.5. Questions Material BOM :

Q:

1) In which context do you use bills of material?

A: [X] Material Requirements Planning [X] Execute Production [X] Goods Movements (to Help Data Entry) [X] Product Costing [X] Development/Engineering/Design [X] Documentation [X] Others Q: 2) Do you need to use different BOMs for different applications, such as Production, Engineering, Plant Maintenance, and Costing (BOM usage)? A: Yes BOM's used will differ based on its applications. Q: 3) Do you use group BOMs for engineering/design and copy or assign them to plants at implementation?

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A: Group BOMs for engineering / design need to be implemented and on final approval by the customer assigned / copied at plant level. In the product Development stage Engineering BOM to be created and used, and after approval from the customer it has to be copied and converted to a Production BOM. Q: 4) What change management functions do you require? How do you want to define the validity of BOMs (based on date/freely definable parameters)? Must existing change histories be transferred to the R/3 System? A: BOM's validity to be confirmed based on Engineering Change Management. Q: 5) Do you use other validity types (such as serial number, time period, or customer) in addition to the "Valid from" date to control the validity of your BOM changes? A: No. Presently other methods for validity confirmation are not being used. Q: 6) Describe the change process for material BOMs. A: In the BOM changes to be made based on the customer requirement. Presently changes are not recorded. Q: 7)For what reasons you need a complete history of your BOM changes? (documentation, different technical states in operational areas, other)? What types of BOMs? From what point in time (initial released status, other)? A: Yes , Record all the changes that effecting the BOM. This to be implemented for all Material BOM's from the initial release. Q: 8) Describe the process for creating and adding to material BOMs. Include release procedure/status, notifications, responsibilities, authorizations, involved systems, Engineering Change Management, and so on. A: On receiving the new drawing from the customer Engineering/Design BOM to be created. On approval of that customer Engineering / Design BOM to be copied to Production BOM. Engineering Change Management to be implemented for release and validity control. Responsibilities and authorizations to be finalized by the respected department heads. Q: 9) Describe the change process for material BOMs. Include release procedure/status, notifications, responsibilities, authorizations, involved systems, engineering change management, revision levels, synchronization with current production orders, other. A: BOM to be changed and validity to be based on date or lot size. Also the Engineering Change Management to be used for recording changes and allocating revision levels and responsibilities and authorizations to be finalized by the respected department heads. Q: 10) Do you want to use BOM to represent several similar materials (closed variant, BOM)?

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A: Yes. This can be used for Cycle chain, Cycle hub and Auto chain. Similar type of material can be represented by a variant BOM. Q: 11) Do you have several alternative BOMs for a material, depending on the manufacturing procedure or lot size, for example (multiple BOM)? A: Yes. There are alternative BOM for a material depending on manufacturing procedure. Q: 12) Do you have products with a large number of variants? Do you need Variant Configuration? A: No. Variant configuration will not be required. Q: 13) Which BOM maintenance functions do you require (copy functions, mass changes, and so on)? A: Copy functions and Mass change functions will be required for BOM maintenance. Q: 14) What structure do your BOMs have? How many levels are there? How many components are there on each level? A: Structure of BOM is multi-level. The levels vary depending on the material. The numbers of components also vary depending on the material. Q: 15) Do your single-level BOMs represent production levels and do you keep your BOM header materials in stock? If not, do you produce non-stock items, or are some assemblies just used as structural elements in a BOM? A: Yes, Single-level BOMs represent production levels. Header material are kept in stock depending on the components. Q: 16) Do you have different BOMs for a material in different plants? A: No. In different plants different kinds of materials are manufactured. Q: 17) Which item categories (stock items, non-stock items, documents, texts) do you use? A: Mainly Stock item categories will be used. Q: 18) Do you use sub-items? A: No Q: 19) Do you have recursive BOMs (the product contains a component with the same material number as the superior assembly)? A: No. Recursive BOMs are not needed.

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Q: 21) Is an integration to external systems such as CAD systems or local PDM systems needed to transfer BOM data to the R/3 System? Please define your requirements for integration (online, batch, controlled redundancy, post-processing in R/3, other). A: No Q: 22) If you use alternative items (one component can be replaced by another one), how do you want one of several alternatives to be determined automatically? A: If alternatives exist then the selection to be done based on most economical process depending on machine and tooling. Q: 23) Do you require mass changes for BOM maintenance? Please explain. A: Mass changes are not preferred. BOMs to be changed manually one at a time. Q: 24) If you use alternative BOMs (several BOM structures exist parallel for the same product at the same time), how do you want one of several alternatives to be determined automatically (by production version, lot size, or time)? A: BOM alternative to be selected based on the time and lot size. Q: 25) Do you produce co-products? A: Yes. Co-products are used in case of Cycle Hub blanking operation and Cycle chain for manufacturing inner plates. In blanking operation for hub, three blanks and two nuts are produced in the same stroke of the press machine. Similarly, for inner plate, four standards and three chamfered are produced in the same stroke of the press machine. Q: 26) Approximately how many finished products and assemblies (header materials with BOMs) do you have? A: C Hub C Chain A Chain A Hub Finished Goods 492 134 7 48 = 682 Assemblies 400 49 24 59 = 532 This list may change as it is in process. Q: 27) Explain for what purposes you use phantom assemblies. A: Phantom assemblies are not used. Q: 28) Do you plan and cost the scrap expected in production? Please explain. A: Yes. Scrap is planned and costed in production. In the operations (blanking & piercing), planned scrap is generated.

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6. WORK CENTER
Requirements/Expectations Processing of the work centers involves the maintenance of the following data: Basic Data Capacity data Scheduling data Costing data General Explanations The work centers represent the different processing centers or production line responsible for the production of the finished product. The work center master data is divided into different screens like, basic data, capacity overview, capacity header, scheduling, cost center, defaults etc. The different screens are controlled by the work center category, whereas the capacity data is differentiated according to the capacity category. The basic data view includes the description of the work center, the task list usage and the standard value key. The usage describes the usability of the work center in routings or other task lists. The standard value key supports the parameters which represent the individual operational segments like machining and labor etc. The capacity view contains all the data for the availability of the capacity and the different formulas for the capacity requirement calculation. The scheduling view contains the scheduling data. The cost center view contains the costing data. Naming/Numbering Conventions Each work center/production line would be identified by their alphanumeric codes. The first two letters denotes the location of the work center/production line (plant wise), the next two alphabets will denote the abbreviated type of the machine, and the last three running numbers denote the number of the work center/production line. Special Organizational Considerations All the work centers in Rockman Cycle are in two plants A000 and C000. The work centers that will be created as production lines (work center category) are for electroplating operation, Paint shop, assembly etc. and as individual machines for all other operations like machining, pressure die casting etc Each of these work centers will have capacity data, scheduling data and a cost center attached to it. Changes to existing Organization After implementation of SAP the plants has to adopt to the new work enter codes/production lines codes as proposed to be used in the system, and capacity evaluation, production scheduling and routing to be based on the defined work centers/lines.

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Description of Improvements Maintaining the work center master data is critical for routing and scheduling production. However, this data can also be used for different analyses including capacity evaluation, roughcut capacity planning etc. Because of the central availability of the data, different business applications can access this data and redundant data maintenance is avoided. Authorization and User Roles Authorization of Work center creation edition or deletion will be as per the authorization matrix in Annexure.

6.1. PERSON RESPONSIBLE FOR THE WORK CENTER

General Explanation The person or a group of people who are responsible for maintenance of master files work center. Naming Convention Within each of the four manufacturing divisions there will be separate persons responsible based on the section. In Cycle chain and Auto chain there are Soft component, Hard component, Assembly sections and Packing section. One person will be made responsible for each of these areas. In Auto components there are Pressure Die casting, Machining, Painting, and Assembly section. In Cycle Hub there are unplated component, Plating section, Assembly/ Packing section. There will be separate persons responsible for each of these sections with in the four manufacturing divisions.
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Definition of Organizational Units Rockman Cycle has four manufacturing divisions. They are Cycle chain, Cycle Hub, Auto Chain and Auto components. In each of these manufacturing divisions will have separate persons responsible for each Work Center.

6.2. CAPACITY
Capacity planning comprises the following partial components: Capacity evaluation In the capacity evaluation, available capacity and capacity requirements are determined and compared with each other in lists or graphics. Capacity leveling The objectives of capacity leveling are: Optimal capacity commitment Selection of appropriate resources In most applications, you can use two types of planning table (graphical and tabular versions) to display the capacity situation and to carry out capacity leveling.

6.3. SHIFT AND SHIFT SEQUENCE

The available capacity of a shift is defined by the following data: Shift start, shift end, break times Capacity utilization rate Number of individual capacities

Shift start, shift end and break times can be manually maintained in capacity. You can however also use shift Shift definition In a shift definition you define the start, finish, break times, and validity period of a shift. Shift sequence

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In a shift sequence, you define how shifts follow another on a daily basis for the duration of a Cycle. You use shift definitions to do this. If you change the working times, you only have to change the shift definition, not the available capacity in all the work centers affected. The system changes the available capacity automatically. Changes to the shift sequence only serve as an aid to entering intervals in capacity, and do not affect existing available capacity. The following graphic illustrates the principle of shift definitions and shift sequences :

6.4. Questions: work centers

Q: 1) Do you have different types of work centers and what are the differences between them (e.g. labor work centers, machine work centers, production line)? A: Yes. Mainly two types of work centers will be used Machine and Labor. Q: 2) To what other master data are your work centers linked (cost center etc.)? A: Each work center will be linked to a cost center. Q: 3) To determine the execution time, the capacity requirement and the costs you require standard values. Which ones (labor time, machine time, set-up time etc.)?

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Standard values that will be used are set-up time, machine time, labor time; change over time and inter-operation time.
A:

Q: 4) Should default values be maintained in the work center, which can be transferred into routings? A: Yes. Control Key and standard value unit to be transferred from work center to routings. Q: 5) Do you use a human resources management system? In what way is it used? A: Yes. In case of Cycle Hub piece rate and salaried systems both are used. In case of Auto chain salaried system is used. HR module will not be implemented during SAP implementation. Q: 6) Will you require capacity planning for your work centers/resources? A: Yes. Capacity planning is required for work center and routings. Q: 7) Does every work center have a standard capacity or do you maintain shift intervals? A: Shift intervals are maintained for each work center. Shift intervals vary for the work canter and will have to be defined accordingly. Q: 8) Are work center hierarchies required for capacity evaluation? A: Yes Q: 9) Are certain types of maintenance work always carried out by external contractors? If so, please list and describe these types of maintenance work. A: Yes. Maintenance work are carried by external contractors is Overhauling of generators, major modification of machines, replacing of major assemblies of machines and maintenance precision equipment for testing. Q: 10) PM/CS: In case of time-reported jobs, is contractors' work measured prior to payment being made? A: Not Applicable. Q: 11) PM/CS: Are the external resources planned? A: Not Applicable Q: 12) Are you going to be scheduling labor resources within your networks? (If yes, use work centers.) A: Not Applicable.

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Q: 13) Will you be doing cost planning on networks? (If yes, you will need work centers.) A: Not Applicable. Q: 14) Do you tend to plan labor resources at a department or individual level? (For both, consider the work center capacity and HR assignment configuration requirements). A: Not Applicable. Q: 15) It is possible to have a work center that includes both people and machines. Do you have multiple uses for your work centers? A: No. Either the work center is machine or labor. Q: 16) The work center controls the formula for controlling scheduling. Do you have special work center scheduling requirements? A: Special scheduling requirements for work center are applicable in case of welding operation in case of cart wheel. In all other cases there are no special scheduling requirements. Q: 17) Work centers provide the basis for capacity planning. Do you want to manage capacities for your projects? A: No. Q: 18) Will you be using PP and PS functionality? (If yes, carefully consider the integration and processes between the PP and PS work centers for capacity planning.) A: Only PP functionality will be used. PS functionality will not be used. Therefore no integration will be required. Q: 19) To determine the execution time, the capacity requirement and the costs you require standard values. Which ones (labor time, machine time, set-up time etc.)? A: Standard values that will be used are set-up time, machine time, labor time, change over time and inter-operation time. Q: 20) Should default values be maintained in the work center, which can be transferred into routings? A: Yes. Control Key and standard value unit to be transferred from work center to routings. Q: 21) Do you use a human resources management system? In what way is it used? A: Yes. In case of Cycle Hub piece rate and salaried systems both are used. In case of Auto chain salaried system is used. HR module will not be implemented during SAP implementation. Q: 22) Will you require capacity planning for your work centers/resources?
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A: Yes. Capacity planning is required for work center and routings. Q: 23) Does every work center have a standard capacity or do you maintain shift intervals? A: Shift intervals are maintained for each work center. Shift intervals vary for the work canter and will have to be defined accordingly.

6.5. Questions: Shift Sequence

Q: 1) Will you require in addition to the standard capacity a more precise capacity? If yes, define your shifts and intervals. A: In the case of three shifts the shift timings are as follows: Shift Start 1st Shift 2nd Shift 3rd Shift 6 am 14 p.m. 22 p.m Shift End 14 p.m 22 p.m. 6 a.m. Break* 1 hr 1 hr 1 hr

For machines which are automatic no breaks are scheduled. 1 hr break time includes 30 minutes lunch, 2 tea breaks of 10 minutes each and cleaning

6.6. Questions: PRODUCT DATA MANAGEMENT

Engineering Change Management Q: 1) Do you use engineering change requests (ECRs) and engineering change orders (ECOs) to change master data objects? A: No. Presently in the company Engineering Change requests and Engineering change orders are not being used to change master data. Q: 2) Do you want to extend the standard features of Engineering Change Management? A: No. Q: 3) Which objects (such as material master records, BOMs, task lists, and documents) do you want to change using engineering change management? A: Engineering Change Management to be used for changing BOMs.

6.7. Questions: ECR/ECO

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Q: 1) Do you use engineering change requests (ECRs) and engineering change orders (ECOs) to change master data objects? A: Presently ECRs and ECOs are not being used for changing master data records.

6.8. Questions: Capacity

Q: 1) Which capacity categories will you require (for example, labor, machine, process unit)? A: Labor and Machine. Q: 2) Will you use pooled capacities (for example, energy, flexible labor groups)? A: No.

6.9. CAPP Formula

Questions: Q: 1) Will you want to calculate your standard values with given formulas and methods? A: formulae are included in the annexure. Yes. Standard SAP formulas will be used for Set up, processing and Labor. The

7. ROUTING
Requirements/Expectations Routings are used as a method of identifying tracking and controlling changes to routings. Creation and editing of routings for all the materials produced in-house using discrete manufacturing. General Explanations A routing is assigned to a specific plant, which is defined in the routing header. However, you can assign individual operations of a routing to a different plant, if one or several operations are to be carried out in another plant. The plants specified in the individual operations and the one specified in the routing header must belong to the same company code. Naming/Numbering Conventions Each routing will be maintained for the Finished good/WIP, as the header material. Special Organizational Considerations Routing are created and maintained by the Manufacturing Engineering group within each company. Current routings are very basic and do not capture material or time costs. At Rockman routings per product would be created.
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Changes to existing Organization None at present Description of Improvements Online and close monitoring of the production, scheduling, capacity requirement calculation and costing will be done for which at present there is no system. Description of Functional Deficits Need to be able to use a standard routing for an entire class of items. Approaches to covering Functional Deficits Test system to see if functionality exists.

ROUTING MATERIAL ASSIGNMENT

Notes on further Improvements Online and close monitoring of the production, scheduling, capacity requirement calculation and costing will be done for which at present there is no system. Authorization and User Roles Authorization of Routing creation edition or deletion will be as per the authorization matrix to be defined. Components are assigned to operations in routing from the Bill of Material of the Header material.

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ROUTING AT ROCKMAN CYLE INDUSTRIES LIMITED(RCIL) As the production scenario in RCIL is mainly discrete manufacturing so the components will move from one operation to another only in lots. So there will be sequential operations only and no overlap. However in repetitive manufacturing, where there is a single piece flow, continuous flow of material to take place between operations.

7.1. Questions:
A: [X] For production control [X] For Costing [ ] For documentation [X] For quality inspection

Routings

Q: 1) For which business processes do you require routings?

Q: 2) Do you have different production methods for the same material (e.g. dependent on the lot size)? Are there several routing alternatives for one material? A: Yes. Several routings are available for one material in Cycle chain. Q: 3) Do you require parallel or alternative sequences of operations within a routing?

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A: No. Standard routings will be used. Q: 4) Do you want to schedule the routings in order to determine the dates for all operations? A: Yes. Q: 5) Do you have operations for which you envisage external processing, that are that your vendor will process? A: [ ] Only internal processing possible [ ] Only external processing possible [X] Internal and external processing possible Q: 6) To determine the execution time, the capacity requirement and the costs you require standard values. Which ones (labor time, machine time, set-up time etc.)? A: Labor time, machine time, set-up time and material change over time to be considered as the standard values for capacity requirement and cost calculation. Q: 7) Which objects do you want to allocate to the operations? A: [X] Components [X] Production resources and tools [ ] Trigger points [ ] Inspection characteristics Q: 8) Do you want inspection operations in your routings? A: Yes, Inspection operations to be provided at important stages only. Q: 9) Will you require special user-defined fields in your routing for information and printing purposes? A: No. Q: 10) What requirements do you have regarding routing management (copy functions, mass changes etc.)? A: Only copy functions to be used for routing management. Q: 11) Will you be measuring quality during the production process? A: Yes 7.1.1. Reference Operation Set

Questions: Q: 1) Are sequences of operations used that remain constant, and which should be used as templates (reference operation sets)?
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A: No. 7.1.2. Questions: Q: 1) Will you maintain production resources/tools that are used during the processing of your materials? A: Yes. All major production resources/tolls used for material processing to be maintained. Q: 2) What kind of production resources/tools do you require? A: [X] Material [ ] Document [X] Equipment [ ] Others Q: 3) Do you require inventory management for your production resources/tools? A: Yes. Production Resources and Tools

7.2. Repetitive Manufacturing

Product Cost Collectors

Questions: Q: 1) If you are working with period-based controlling, do you want to have one cost collector for each production method or for each material? A: One Product cost collector for each material. 7.2.1. Rate Routing

Questions: Q: 1) For which business processes do you require routings? A: [X] For production control [X] For Costing [ ] For documentation [X] For quality inspection Q: 2) Do you have different production methods for the same material (e.g. dependent on the lot size)? Are there several routing alternatives for one material? A: No.
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Q: 3) Do you require parallel or alternative sequences of operations within a routing? A: Rate routing will be used. Q: 4) Do you want to schedule the routings in order to determine the dates for all operations? A: Yes. Q: 5) Should capacity requirements be created for the operations? A: Yes, capacity requirements to be created for the operations based on the routings Q: 6) Do you have operations for which you envisage external processing, that are that your vendor will process? A: [ ] Only internal processing possible [ ] Only external processing possible [X] Internal and external processing possible Q: 7) To determine the execution time, the capacity requirement and the costs you require standard values. Which ones (labor time, machine time, set-up time etc.)? A: Labor time, machine time, set-up time and material change over time to be considered as the standard values for capacity requirement and cost calculation. Q: 8) Which objects do you want to allocate to the operations? A: [X] Components [X] Production resources and tools [ ] Trigger points [X] Inspection characteristics Q: 9) Do you want inspection operations in your routings? A: Yes. Only major inspection operations will be considered as a part of routing. Q: 10) What requirements do you have regarding routing management (copy functions, mass changes etc.)? A: Copy Functions only will be used. Q: 11) Will you be measuring quality during the production process? A: Yes 7.2.2. Questions:
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Reference Rate Routing

Q: 1) Are sequences of operations used that remain constant, and which should be used as templates (reference operation sets)? A: No.

8. DEMAND MANAGEMENT
General Explanations PRODUCTION FLOW AS WILL BE IN SAP The function of demand managementPROCESS is to determine requirement quantities and delivery dates PRODUCTION PROCESS FLOW AS WILL BE IN SAP for finished products and important assemblies. The result of demand management is the socalled demand program.
Sales andhave operations In order to create the demand program, you first to define the planning strategy to be planning for Material represent the various methods of used for planning a certain product. The planning strategies MC87 Transfer Reqm to production for planning and manufacturing or procuring a product. Using these strategies, you can decide whether production is to be triggeredDemand by sales orders Management only (make-to-order production) or whether it is to be triggered irrespective of sales orders MC74 (make-to-stock production). Or, you may want both sales orders and stock orders in the demand program. If the production time is relatively long in relation to the standard market delivery time, you may want to produce the Demand product or, at least, certain assemblies before any Management sales orders exist. In this case, the sales quantities are preplanned (for example, with the aid of Planned Independent the sales forecast). Requirement MD61

The demand program is created in the form of planned independent requirements. Demand management uses planned independent requirements and customer requirements. Customer requirements are created in sales order management. Explanations of Functions and Events Material Requirements Information is transferred into demand management from several sources (i.e. planned Planning MD02 independent requirements, planning scenario, etc). Demand management can be carried out based on any one of several inputs; the product group, planning material, predefined variant, Dep.Requirement characteristics, planned independent requirements or direct transfer. It is necessary to specify Planned Order any or all of the following; the material, product group, plant, data, requirements plan and requirement parameters. After the origin of the requirements data has been selected it may be Reservations processed by either; standard SOP, flexible planning or forecast and can be either total planning or single item planning. After the requirements data is processed the requirements
Production Order Convert Individual Collective Purchase requisition Schedule Lines

Purchase order Order Release

Confirmation Page 41 of 77

Goods Movement To FG Store

and the planned independent requirements are saved. Demand management is then carried out by either one or several of; total planning, single item planning, interactive planning and planning scenario. Changes to existing Organization Since this is not presently done at Rockman Cycle (in the form of Demand Management) there will, presumably, be changes in job functions, specifically with regards to the Master Scheduling.

EXPORT ORDERS EXECUTION PLANNING

Create Sales Order VA01 Page 42 of 77

MRP Made to Order Planning Multi Level MD50 on order receiving

Convert Planned Order to Production Order for WIP and FG Individual / Collective CO40 / CO41

Convert Planned Order for Raw material to Purchase Req. MD14 / MD15

Release Production Order for Execution CO02 Material Availability Check Capacity Check

Purchase Requisition to Purchase Order convert Or Schedule lines

Print Production Order CO04N Order Print Production

Confirm Production Order CO15

8.1. Questions: Sales and Operations Planning

Standard SOP Q: 1) Do you want to carry out medium to long-term planning of sales and production quantities for your finished products? A: Yes. Medium to long-term planning for finished goods to be carried out based on the customer requirement/ schedules.
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Goods Movement Finished Goods to FG Store Scrap to Scrap Store Automatic by Backflushing

Q: 2) At what level do you want to carry out sales and operations planning? A: [X] Material [ ] Product group Q: 3) At what intervals do you want to carry out sales and operations planning? A: SOP to be carried out at yearly, monthly and daily basis based on the requirement. Q: 4) Which sources are used in determining sales quantities? A: [X] Sales information system [X] Profitability analysis (CO/PA) [X] Forecast [ ] Sales plan of a product group [ ] Sales and Operations planning of a product group Q: 5) Is capacity availability checked at this planning level? A: Capacity availability check will not be done at this planning level.

8.2. Demand Management

Questions: Q: 1) Which planning strategies do you use to plan production quantities and dates? A: [X] Make-to-stock production [X] Make-to-order production [ ] Planning with final assembly [X] Planning without final assembly [ ] Planning on assembly level [ ] Planning with planning material [X] Assembly orders [ ] Characteristics planning [X] Other Q: 2) How do you create your planned independent requirements? A: [X] Manual entry of quantities and dates [ ] Transfer of material forecasts [X] Transfer SOP results [ ] Transfer long-term planning results Q: 3) At which level do you want to maintain planned independent requirements? A: [X] Material
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[ ] Product group Q: 4) Do you also want to create customer requirements in demand management transactions (in case, for example, the SD module is not used)? A: Yes.

8.3. Questions: Master Production Scheduling

8.3.1. MRP Planning File Entry

Q: 1) In what time intervals do you want to divide your planning horizon? A: Backward 30 days and forward 30 days. 8.3.2. Questions:
Q:

Master Production Scheduling - Total Planning

1) Should materials that affect the value added, or that use up critical resources, be planned separately and not include planning of the dependent components? A: Critical resources and its dependent requirements should be included in the planning run Multi-level planning to be carried out. Q: 2) Should enterprise areas/organizational units (storage location, for example) within a plant be planned separately (MRP area)? A: No. Q: 3) In which time intervals are planning runs carried out? A: Planning runs to be carried out on weekly basis as a standard. Q: 4) Should planning runs be carried out online or as background jobs? A: Planning runs to be carried out online. Q: 5) Which MRP procedure is used to plan the material requirements (MRP type)? A: [X] Material requirements planning for BOM items [X] Manual reorder point planning for tooling and spares. [X] Automatic reorder point planning for production consumables based on consumption pattern [ ] Forecast-based planning [ ] Time-phased materials planning
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Q: 6) Which scope should the planning run have, that is, which type of planning run is required? A: [X] Net change planning [X] Net change planning in the planning horizon Q: 7) How is the demand for externally procured materials met? A: [ ] Planned orders [X] Purchase requisitions [X] Scheduling agreements Q: 8) Should only the basic dates be determined for the newly created planned orders or should an additional lead time scheduling be carried out, which also determines the capacity requirements. A: [X] Basic scheduling for planned orders [X] Lead time scheduling and capacity planning Q: 9) Which procedure are you using for lot-size calculation? A: [ ] Statistic lot-sizing procedure [ ] Periodic lot-sizing procedure [X] Optimizing lot-sizing procedure Q: 10) Is it necessary to represent planned orders as collective orders for the purpose of common scheduling? A: No. Q: 11) Are MRP lists required? A: Stock requirement list will be used instead of MRP list. 8.3.3. Questions: Material Requirements Planning

Material Requirements Planning - Individual Q: 1) Should the planning run be single or multi-level? A: Planning run to be Multi-level. Q: 2) Which scope should the planning run have, that is, which type of planning run is required? A: [X] Net change planning
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[X] Net change planning in the planning horizon Q: 3) How is the demand for externally procured materials met? A: [ ] Planned orders [X] Purchase requisitions [X] Scheduling agreements Q: 4) How is the scheduling carried out? A: [ ] Basic scheduling for planned orders [X] Lead time scheduling and capacity planning Q: 5) Which procedure is used to calculate lot sizes? A: [ ] Statistic lot-sizing procedure [ ] Periodic lot-sizing procedure [X] Optimizing lot-sizing procedure Q: 6) Are MRP lists required? A: The MRP list always displays the stock/requirements situation at the time of the last planning run and it will be required as it provides a work basis for the MRP controller. Q: 7) Will the planning result be processed further after the planning run? A: Yes. 8.3.4. Material requirements planning - evaluation

Questions: Q: 1) Who is responsible for checking the results of requirements planning at your company? A: MRP controller. It is proposed that in each section of the two plants viz. Cycle Hub, Cycle chain, Auto Hub, Auto Chain each will have one MRP controller. Questions: Conversion of Planned Order Q: 1) Which procurement objects do you want to be created during the conversion? A: [X] Production order [ ] Process order [X] Purchase requisition Q: 2) How do you want the planned orders to be converted?
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A: [X] Individual conversion [X] Collective conversion (online or in background) [X] Partial conversion Q: 3) which criteria do you want to be taken into account during conversion (for example, MRP controller, release date, material, sales order)? A: For the conversion of planned orders into account we will be mainly taking MRP controller and material into account.

9. PRODUCTION PLANNING AND PROCUREMENT PLANNING- MRP

General Explanation Material requirements planning take current and future sales as its reference points. The planned and, depending on planning strategy, actual requirements trigger the MRP calculation. In MRP the requirements include sales orders, planned independent requirements, material reservations, the dependent requirements created by exploding the BOM and so on. In case of in-house production the system creates planned orders for planning of production quantities. When planning is complete planned orders can be converted into production orders. In case of external procurement the system creates either a planned order or directly creates a purchase requisition or a schedule line for a pre-existing scheduling agreement for planning the external purchase order quantity. MRP RUN AT ROCKMAN CYCLE INDUSTRIES LIMITED: At Rockman Cycle, for regular products MRP will be run once a week, based on the requirement by the customers. Based on this requirement for all the finished products and the Dependent requirements will get generated using transaction code MD02. In case there are changes to this requirement then MRP to be run on weekly basis. But for export orders, MRP will be only run based on the Sales orders, using the transaction code- MD50. For Regular Orders: For Export Orders: MD02, Once a week MD50, only on receipt of sales orders.

CONSUMPTION BASED PLANNING: Consumption based planning is based on consumption values and uses forecasts or statistical procedures to determine future requirements. Consumption based planning is characterized by its simplicity and is mainly used for low value items. Manual reorder point planning is a typical process in consumption based planning. For Production consumables consumption based planning is to be carried out based on the decided levels in M/s Rockman.

9.1. MRP Controller

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General Explanation The MRP component assists the MRP controller in his area of responsibility and relieves the controller of routine material monitoring. General Explanation MRP Controller is the person responsible for a group of components in Material Requirement Planning in a plant or company. Material that takes part in MRP must be assigned to a MRP controller. The field for MRP Controller is located in the MRP 1 view of the Material Master. The MRP controller is responsible for all activities, for specifying the type, quantity and time of the requirements and he must also calculate when and for what quantity an order proposal has to be created to cover these requirements. He needs all the information on stocks, stock reservation and stock on order to calculate quantities and he needs all the information on lead times and procurement times to calculate dates. The MRP controller determines a suitable MRP and lot-sizing procedure by material to determine procurement proposals. The most common lot-sizing procedures are available in the system and can easily integrate user-defined formulas. Naming Convention For MRP controlling, it is proposed that there be one MRP controller in each section viz. Auto Hub, Auto Chain, Cycle Hub, Cycle Chain, within the two plants A000 and C000 respectively The proposed codes to be used in SAP are as below: Section: MRP Controller Auto Hub Auto Chain Cycle Hub Cycle Chain 500 600 700 800

Definition of Organizational Units he MRP controller is the person responsible for a group of materials in MRP in a plant or company. A material that takes part in material requirement planning must be assigned to a MRP Controller Rockman Cycle has four manufacturing divisions based on the products. They are Cycle chain, Cycle hub, Auto chain and Auto components. Each of these areas will have a separate MRP controller. MRP to be run separately in the four areas independently.

9.2. PRODUCTION PLANNING AND PROCUREMENT PLANNING

9.2.1. SALES AND OPERATIONS PLANNING

PRODUCT GROUP

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Q: 1) Do you have products to be grouped into product groups for planning (for example, due to similar procurement methods or because they are manufactured on the same bottleneck machine)? A: No. SOP to be carried out for Material. Questions: Rough-cut Planning Profile Q: 1) In medium to long-term planning do you use a rough-cut planning profile for resource leveling? A: No. Monthly plans are used for planning of resources. 9.2.2. Planning Type

Questions: Q: 1) Do you require self-defined planning table views? A: Standard Planning table for SOP to be used for Sales and Operations Planning 9.2.3.
Q:

Questions: QUOTA ARRANGEMENT

1) Will you maintain specific vendor quotas (for example 70 % from vendor A, 30% from vendor B) for your materials? If yes, how many quota arrangements are you currently maintaining? A: Yes.
Questions: Production Lot

Q: 1) Do you have various manufacturing processes for an assembly and do you want to calculate the costs of the various manufacturing processes separately and compare them with each other? A: Yes. In case of Cycle Chain for the manufacturing of Inner plate 3 manufacturing processes exist such that the assemblies are costed differently.

10. PLANNED ORDERS PROCESSING

Requirements/Expectations SAP will be able to process a planned order into a Purchase Requisition or, in the case of this process, a Production Order. When processed, RCIL expects that there will be a link between the original requirement and the newly created purchase requisition or production order. General Explanations Manually:
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The MRP controller enters a planned order manually. He determines which material is to be procured, the required quantity, the date required, and whether the material is to be procured externally or internally. Automatically: During the planning run, the system automatically determines the materials to be procured as well as the required quantity and the required date. Explanations of Functions and Events After the planned order is created either manually or automatically a planned order profile is allocated and data is processed. The data would include: material, plant, order quantity and basic order dates. This will trigger the processing of material components, schedule the planned order, edit account assignment and process the source of supply. The system will check component and capacity availability and if needed, capacity leveling can be carried out. Saving the planned order creates a purchase requisition, planned load, creates dependent requirements and allows the processing of the planned order. Special Organizational Considerations Planned orders for production items will be processed as production orders with external procurement (for subcontract) and as standard production orders Changes to existing Organization Presently planned orders are being converted to purchase requisitions and/or production orders manually (in most cases). SAP will facilitate the performance of this task by allowing the Planner to convert the planned order to a purchase order or production order instead of creating the order manually. Authorization and User Roles Authorizations will be defined as per Annexure.

11. PRODUCTION ORDER CREATION

Requirements/Expectations This function supports the production of goods in-house using the production order or work order concept. The different functions involved are: Order creation Order release Inspection lot processing Goods issues Order confirmation Goods receipt Order settlement General Explanations For creation of a production order, the data that is to be entered includes the material number of the finished good to be produced, the plant, the WO/production order number and the order type to start with. The properties and the control parameters are to be customized for the order
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type for that product's manufacturing. Here, among the other things it will be decided whether the WO will have external no. or internal number. Then subsequently the order quantity and the planned start or the finish dates depending on whether it is forward or backward scheduling is to be entered. At the time of order creation, the system copies the BOM and the Routing of the finished good to be produced and schedules the order. At this point of time, the system performs the availability check for the raw materials and PRTs, checks the capacity creates the inspection lot and does the preliminary costing and creates the order. Explanations of Functions and Events During the course of the production order processing, we can track down the different data related to the scheduling, capacity utilisation, material availability, inspection lot processing, preliminary costing, goods issues, order progress confirmations, tools receipt and order settlement. Special Organizational Considerations For the implementation of the production of finished goods, a special order type has to be created and customized for different control parameters. All the necessary organizational units like plants and storage locations responsible for in-house manufacture of finished goods. Description of Improvements All the data that is related to processing of one particular finished good lot is systematically available. This data can be subjected to different kind of high level analyses for decision making. Lot of redundant data entry at various levels and manual maintenance of several reports is eliminated.

11.1. CONVERSION OF PLANNED ORDER

Requirements/Expectations RCIL expects that planned orders will be automatically generated as a result of the MRP run. RCIL also expects that the RCIL MRP Controllers can manually create planned order. The ability for RCIL MRP Controller to choose whether or not to FIRM the order at the time of the order conversion (Y/N). Ability to automatically "pull in" routing data specific to where item is to be produced. General Explanations If material requirements planning have already created a planned order for the production of the material, the system takes over the basic dates of the planned order into the production order. It then determines the scheduled start and finish of the production order in a new scheduling run. If necessary, the system carries out reduction measures. Explanations of Functions and Events Planning is carried out. Planned Order is created. Category of Planned order is determined.
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Select Planned Orders to be converted. Planned Orders are converted into Production Orders either Collectively or Manually. Purchase Requisitions are created, where necessary. Questions: Conversion of Planned Order

11.2. Evaluations: Logistics Information System

Evaluations: Logistics Information System Q: 1) Which analysis system is defined in your company? A: [X] Logistics Information System (LIS) [ ] Business Information Warehouse (BW) [ ] Non-SAP System

12. RELEASE OF PRODUCTION ORDER

Requirements/Expectations Release of the production order is an important business function, which controls things like the goods issue for the order, confirmation of the order progress etc. Here either individual production operations or the order itself can be released. General Explanations The production order release function is to be exercised in each production order, in the transaction menu of the order header, after the creation of the production order. This function sets the "released" status in the order header Explanations of Functions and Events After the creation of the production order, the individual operations or the order header itself can be released as per the release date specified in the material master scheduling margin key. Releasing of the production order is an important business function, which enables different functions like goods issue of the raw materials etc. At the time of release, some messages can be setup in the customizing, which can restrict the release of the order subject to some conditions. These conditions can be shortage of raw materials, capacities or PRTs. ORDER CONFIRMATION A confirmation documents the processing status of orders, operations, sub-operations and individual capacities. It is an instrument for controlling orders. With a confirmation you specify The quantity in an operation that was produced as yield, scrap and the quantity to be reworked How much work was actually done Which work center was used for the operation Who carried out the operation

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Exact confirmation shortly after completion of an operation is essential for realistic production planning and control. The following business transactions can be executed via confirmations: Updating order data (for example, quantities, activities, dates, status) Back flushing of components Automatic goods receipt (for one operation per order max.) Capacity reduction in the work center Updating costs based on confirmed data Updating MRP-relevant excess or missing quantities in the order You can enter confirmations for An order- to be entered daily An operation- to be done before period closing for inventory valuation of WIP. A sub-operation An individual capacity in an operation An individual capacity in a sub-operation For scrap, rejection, reworks, operation confirmation will be done. PRINTOUT OF PRODUCTION ORDER Requirements/Expectations This function controls the printing of the shop papers, such as the operation confirmation slips, time tickets etc. General Explanations The printing of the different shop papers is controlled by the settings made in the control key attached to the individual production operations Explanations of Functions and Events The printing of the different shop papers is triggered after the release of the production orders to enable the persons responsible for the different tool manufacturing operations for the execution of the operations.

13. CAPACITY REQUIREMENTS PLANNING

CAPACITY EVALUATION Requirements/Expectations During this stage, actual production which has been done need to be informed to all concerned authorities in the organisation. At the same time the quantities of the components as well as the activities which are getting consumed for the purpose of production need to be declared in order to have a correct picture of the inventory, WIP and The updated actual costs incurred in the production.

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General Explanations This is one of the most vital functionality in SAP and is well integrated with MM and CO module of SAP. This includes confirmation of production, thereby updating WIP. Confirmation of the amount of scrap generated. While confirmation system also proposes the amount of components and raw materials required for the production based on BOM explosion. These components and raw material can then be back flushed, i.e., issued for the purpose of production form a storage location (Back flushing storage location). At the same time for the purpose of amount of labour cost or machine hour rate etc. can be booked on production using actual activities confirmation known as activity back flushing. Description of Improvements This will update the cost and inventory on line thereby automating the production costing process completely which is manual as well as not on line. The inventory update will be useful by every user for example for sales & dispatch department, for the next shop for his planning as well as better production planning. Quality Inspection during Production When you create and release a production order, the R/3 System automatically creates an inspection lot and provides you with shop papers for the quality inspection. You can also create an inspection lot manually before the production order is released. In a quality inspection during production you can plan numerous inspections for an operation by using inspection points. This allows you to constantly monitor the production operation. You record characteristic results. If there are partial quantities (subsets) with varying characteristics, you can divide the total quantity for the production order between partial lots, based on the inspection points. You can document any defects that are found using defect data. To manage a defect that has been identified, together with the corrective action required in the R/3 System, you create and process a quality notification. You make a usage decision for each partial quantity and the total quantity of the inspection lot. At this point you can confirm the inspection activities that took place when results were recorded, or when the usage decision was made, to the production-planning department. If no defects were found by the quality inspection, you post goods receipt. This updates the stock quantities and the stock value of the goods produced. Quality Inspection for a Goods Receipt from Production The R/3 System can create a new inspection lot at goods receipt, for example for the final inspection, and if required can post the material to inspection stock. A quality inspection for a goods receipt from production is similar to the inspection during production. The main differences are as follows: You do not use inspection points and partial lots. You record costs in a QM order. To complete the inspection, you make a usage decision for the goods receipt quantity. The inspection lot quantity that has been accepted is posted to unrestricted-use stock. You can make special postings for quantities that have not been accepted.
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BACKORDER PROCESSING

Backorder processing can be called up directly from the initial menu for Shop Floor Control or from the missing parts information system. From the initial menu: a. Choose Logistics Production Shop Floor Control Control Backorder processing Material. b. Enter the material number of the material to be processed and also the plant and choose . From missing parts info system: a. Position the cursor on the corresponding line. b. Select Environment Backorder processing. When you call up backorder processing, the system calculates the ATP quantities. The system displays the plant stock, any existing storage location stock and also any open sales orders. The texts for the receipt and issue elements are analogous to the stock/requirements list. The different stocks (individual customer stock and so on) and storage locations are listed in separate sections. EVALUATIONS LOGISTICS INFORMATION SYSTEM Requirements/Expectations Data analysis in the Shop Floor Information System is based on statistical data that is updated to the information structures from shop floor control. General Explanations In the standard system, the following information structures are available in the Shop Floor Information System. For example, when back flushing in repetitive manufacturing, various data can be updated in the logistics information system. You can analyze the values in the LIS from the main menu of repetitive manufacturing. The following statistics are available: Goods receipt statistics The system creates statistics for the updated actual production and scrap quantities. The system also records the planned quantities in this statistic. However, you must trigger a separate function to update the planned quantities (see Updating Planned Quantities). Reporting point statistics The system creates statistics for the recorded back flush quantity per reporting point. Material consumption statistics The system creates statistics for the recorded component requirements and the actual component consumption. Production cost statistics The system creates an evaluation for the recorded product costs.
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Explanations of Functions and Events The Logistics Information System includes the shop-floor information system. When the LIS update function is activated, all the shop floor control data starts updating the various analyses of the SFIS. These analyses are available under different information structures. Description of Improvements A lot of benefits can be reaped from the shop floor information system in the long run for the manufacturing function. Particularly the reports for the manufacture of the finished products and its components their costs involved, work centre evaluation reports can be used in higher-level decision-makings.

PROCESSING A PRODUCTION ORDER

Convert Planned Order to Production Order CO40 / CO41

Availability Check

Capacity Check

Order Release CO 05

Order Print CO04N

Order Processing on Shop Floor

Order Confirmation CO15 / CO11N

Goods Receipt FG and Scrap Automatic to respective store

Order Settlement

14. Repetitive Manufacturing

Questions: Creating/Processing Production Order
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Q: 1) Do you require different order types in order to, for example, control the automatic selection of routings in various ways, predefine costing data in various ways or specify strategies for batch determination? A: Order type to be selected on the initial screen for creation of production order to control the processing of the order. Q: 2) On creating a production order various different master data can be transferred. Which criteria do you take into consideration in the selection (for example, validity, lot size range)? A: Both validity and lot size can be used as selection criteria for master data to be transferred into the Production order. The master data could also be selected manually based on the requirement. Q: 3) Is it necessary to manually change or complete certain data from the order? A: Yes. Q: 4) To determine the production dates and capacity requirements of the operations within an order, you must schedule the order. Which types of scheduling do you want to use? A: [X] Backwards [ ] Day's date [ ] Forwards [ ] Only capacity requirements Q: 5) Do you require capacity availability check during order creation? A: Yes. Q: 6) Do you require material availability check during order creation? Should this check be carried out for individual or for all components of an order? A: Yes. This check to be carried out for all components of an order. Q: 7) Do you have operations that are processed externally, that is to say not carried out in your own company but given to a vendor who does the work in his own workshops (e.g. with subcontracting processes or capacity bottlenecks)? A: Yes. There are components which are subcontracted in Cycle Hub. Hubs are externally processed for plating, painting etc. mainly for export requirement. 8) Do you require collective orders in order to carry out functions simultaneously for a set of orders (for example, release, schedule, quantity change, Back flush, calculations)?
Q:

A: Individual and collective order processing will be used as required.

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Q: 9) Do you create and release in one step? A: No.

14.1. Questions: Conversion of Planned Order

Q: 1) Which procurement objects do you want to be created during the conversion? A: [X] Production order [ ] Process order [X] Purchase requisition Q: 2) How do you want the planned orders to be converted? A: [X] Individual conversion [X] Collective conversion (online or in background) [X] Partial conversion Q: 3) Which criteria do you want to be taken into account during conversion (for example, MRP controller, release date, material, sales order)? A: MRP controller and Material.

14.2. Questions: Creating/Processing Production Order

Release of Production Order Q: 1) With which procedure do you want to release production orders? A: [X] Individual release [X] Collective release Q: 2) Do you release complete orders or single operations? A: Release of complete order is carried out. Q: 3) Do you require material availability check during order release? A: [ ] No availability check [X] User decision availability shortage [ ] Refusal on availability shortage Q: 4) Do you require capacity availability check during order creation? A: Yes.
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Q: 5) It is possible to trigger certain functions automatically after the order release (for example, creation of transport requirements, creation of inspection lots, printout of orders, and creation of serial numbers). Do you want to make use of this? A: Yes

14.3. Questions: Printout of Production Order

Q: 1) Do you print production documents (e.g. operation control ticket, job ticket, pull list, confirmation slip, time ticket)? A: Printed production documents operation control ticket, job ticket, pull list, confirmation slip, time ticket will be used as required. Q: 2) What kind of documents do you need? A: [X] Original print [ ] Reprinting

14.4. Questions: Material Staging

Staging of Material for Production Q: 1) Do you wish to issue stock material for production/process orders from just one or from several storage locations? A: Stock Material for production is issued from several storage locations viz, WIP storage and raw material storage. Q: 2) Will the material provision occur from warehouse management (control Cycle records)? A: No.

14.5. Questions: Capacity Requirements Planning

Capacity Evaluation Q: 1) Which order type do you want to use for capacity evaluation? A: [X] Production order [ ] Process order [ ] Maintenance order [X] Planned order
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[X] Others

14.6. Capacity Dispatching and Leveling

Questions: Q: 1) Do you want to assign available capacities to order operations? A: Yes Q: 2) Which type of planning table do you want to use? A: [X] Planning table [ ] Graphic planning table [ ] Both directions Q: 3) Which planning strategies will you use for Sequencing? A: [ ] Dispatch at earliest point in time [ ] Dispatch at best possible set up time [ ] Entry of dates on dispatch [ ] Setup time optimization [X] No Sequencing [ ] Other

14.7. Production Order Execution 14.8. Goods Issue Processing for Production Orders
Questions: Q: 1) Do you want to enter the withdrawal of material components for your order manually or post it automatically on the order confirmation (back flush)? A: Goods issue processing type (manual or automatic) can both be used. Components for which the back flush indicator is set will be processed automatically. Q: 2) It is possible to withdraw to an order those materials which are not listed as components in the order. Are such unplanned withdrawals possible? A: Yes Q: 3) Can planned goods issue quantities differ from the actual quantities? What then happens with the material reservation? A: No.
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Q: 4) Are there any components in your company that require batch handling? Is batch determination used? A: No batch handling scenario exists. Q: 5) Which mechanism is used to activate a goods issue (for example, a pull list)? A: Goods issue slips, material staging lists, pick lists and other similar documents for the basis of material withdrawal for production orders. Q: 6) When is the withdrawal posted to an order? A: Goods issue processing type (manual or automatic) can both be used. Components for which the backflush indicator is set will be processed automatically on the confirmation of the first operation.

14.9. Production Order Execution

Questions: Q: 3) When and how are operations/orders confirmed? A: Production Order will be confirmed when the production order has been executed on the Shop floor. Confirmation for order, milestone confirmation, and progress and operation confirmation will be used as required. Q: 4) When are goods issues and goods receipts processed? A: In case of components/materials for which the back flush indicator is set, good issue and goods receipt may take place on order confirmation. However for other components goods issue to the shop floor might take place also through the use of issue slips.

14.10. Questions: Capacity Requirements Planning

Capacity Evaluation Q: 1) Which order type do you want to use for capacity evaluation? A: [X] Production order [ ] Process order [ ] Maintenance order [X] Planned order [X] Others

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14.11. Capacity Dispatching and Leveling

Questions: Q: 1) Do you want to assign available capacities to order operations? A: Yes Q: 2) Which type of planning table do you want to use? A: [X] Planning table [ ] Graphic planning table [ ] Both directions Q: 3) Which planning strategies will you use for Sequencing? A: [ ] Dispatch at earliest point in time [ ] Dispatch at best possible set up time [ ] Entry of dates on dispatch [ ] Setup time optimization [X] No Sequencing [ ] Other

14.12. Production Order Execution

14.12.1. Goods Issue Processing for Production Orders Questions: Q: 1) Do you want to enter the withdrawal of material components for your order manually or post it automatically on the order confirmation (back flush)? A: Goods issue processing type (manual or automatic) can both be used. Components for which the backflush indicator is set will be processed automatically. Q: 2) It is possible to withdraw to an order those materials which are not listed as components in the order. Are such unplanned withdrawals possible? A: Yes Q: 3) Can planned goods issue quantities differ from the actual quantities? What then happens with the material reservation? A: No. Q: 4) Are there any components in your company that require batch handling? Is batch determination used? A: No batch handling scenario exists.
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Q: 5) Which mechanism is used to activate a goods issue (for example, a pull list)? A: Goods issue slips, material staging lists, pick lists and other similar documents for the basis of material withdrawal for production orders. Q: 6) When is the withdrawal posted to an order? A: Withdrawal is posted during order confirmation.

14.13. Production Order Execution

Questions: Q: 3) When and how are operations/orders confirmed? A: Production Order will be confirmed when the production order has been executed on the Shop floor. Confirmation for order, milestone confirmation, and progress and operation confirmation will be used as required. Q: 4) When are goods issues and goods receipts processed? A: In case of components/materials for which the back flush indicator is set, good issue and goods receipt may take place on order confirmation. However for other components goods issue to the shop floor might take place also through the use of issue slips. Questions: Q: 1) Do you process backorders (orders which can't be shipped when they're requested)? A: Yes Q: 2) How do you resolve missing parts situations? A: [X] Acceleration of replenishment [X] Assignment of available quantities [ ] Change of previously confirmed quantities [ ] Use of interchangeable parts [ ] Other Q: 3) Do backorders receive priority over normal deliveries (sales)? A: No

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14.14. Production Order Confirmation

Questions: Q: 1) There are various ways of entering back flushes in an order. Which do you want to use? A: [X] For order [X] For operation (time ticket) [ ] For operation (time event) [ ] For operation (progress confirmation) [ ] For operation in collective entry Q: 2) Which data must be confirmed (quantities, dates, personnel data, scrap, etc)? A: Quantities, rework, scrap and date. Q: 3) Should material withdrawals for a production order be automatically posted during confirmation (back flushing)? A: Yes, but depending on the ABC category of the material. Q: 4) Should goods issue be posted automatically to the storage location while back flushing an operation? A: Yes. Q: 5) Do you use plant data collection (PDC)? A: No. Q: 6) Should the back flush be entered using a barcode scanner? A: No.

14.15. Processing of Goods Receipts from Production

Questions: Q: 1) What requirements do you have with regard to the quantity of goods received? A: [X] Receipt of whole quantity [X] Receipt of a partial quantity Q: 2) Do you tolerate variances viz. viz. the planned quantity of a goods receipt? A: [X] Under delivery [X] Over delivery
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[X] Exact number only Q: 3) Is the "delivery completed" indicator to be set automatically? A: No. Q: 4) Do you want to initially post inward movements into the warehouse/stores to "stock in quality inspection"? A: No. Q: 5) Which mechanism do you use to trigger a goods receipt? A: Goods receipt is posted upon confirmation of the last operation. Q: 6) When do you post the goods receipt in the case of an order? A: The good receipt is posted on the confirmation of an order. Q: 7) Are batches to be created at the time of a goods receipt? A: [X] No batches [ ] Batches (manual creation) [ ] Batches (automatic creation) Q: 8) Are serial numbers to be created in the case of a goods receipt? A: No. : Evaluations: Logistics Information System Q: 1) Which analysis system is defined in your company? A: [X] Logistics Information System (LIS) [ ] Business Information Warehouse (BW) [ ] Non-SAP System

15. Questions: Repetitive Manufacturing

15.1. Processing of Master Production Schedule

15.1.1. Production Planning in the Planning Table

Q: 1) Which type of scheduling do you want to use?

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A: [X] Lead time scheduling [ ] Sequencing (tact-based scheduling) Q: 2) Which combination of the planning tools will you use? A: [X] Planning table [X] Planning table with graphic planning table [ ] Planning table with Sequencing [ ] Sequencing Q: 3) How will you create run schedule quantities? A: [X] MRP Run [ ] Manually [ ] Other Q: 4) How will you assign the production version to the production line? A: [X] Automatically [X] Manually [ ] Quota arrangement Q: 5) Are your products produced on several production lines? In the planning table, will you want to monitor the capacity load over several production lines? A: Yes.

15.2. Material Staging 15.3. Processing the Pull List

Questions: Q: 1) Are your production storage locations separate from the central warehouses? A: No. Q: 2) Is material consumed constantly (KANBAN replenishment) or is consumption irregular (pull list)? A: Consumption is irregular. Q: 3) Which replenishment strategies will you use in the pull list? A: [X] Direct stock transfer [ ] Stock transfer reservation
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[ ] Creation of kanban replenishment elements [ ] Creation of WM transfer requirements [ ] Creation of WM transfer order Q: 4) Will you want to print the pull list? A: Yes. Scrap: Q: 29) Do you produce co-products during the same process as the main product? (These items are treated as material credit memos for costing and reduce manufacturing costs.) A: Yes. Co-products are produced in case of Cycle Hub blanking operation and Cycle chain Blanking operation for production of inner plates. Q: 30) Lead time offset: Are all your components to be staged at the same time? A: No. All the components will be staged at different operations as per the manufacturing requirement.

16. REPORTS
The following standard reports are to be used in the Production Planning module:

TRANSACTIN CODE
MMSC CRO5 CR06 CR07 CA60 MD73

PURPOSE
This report allows a user to easily create, or view, storage location views for a material. This report produces a list of all work centers. This report produces a list of all cost center assignments. This report produces a list of all work center capacity. This report enables you to list changes to individual routing fields in the sequence which they occurred. In the "Total Requirements Display", you can check and, if necessary, change the planning figures. With this evaluation function you can list all the planned independent requirements that exist for a particular material or a product group. From this total requirements display, you can access more detailed information or you can branch into the change mode. In the stock/requirements list, the most up-to-date development of stocks and requirements is displayed. The layout of the list on the screen is the same as that of the MRP list.

MD04

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MD05

Once you have carried out the planning run for the material via single-item or total planning and where you have also specified that an MRP list is to be created, you can then display one of the lists with the function individual display. Proceed as follows: Starting from the menu screen of material requirements planning, select Evaluations -> MRP list ->Individual display. The initial screen for the Individual Display of MRP List appears. Enter the material number and the plant and press ENTER. The MRP List screen now appears with an overview of the Individual Lines. With the collective display, all planned orders which correspond to the specified selection criteria are displayed; for example, all planned orders of a certain MRP controller. The results of long-term planning are simulative planned orders at finished product level for the long-term planning version of the demand program. Simulative dependent requirements and receipts are created for the components. Simulative capacity requirements are also created for materials that are produced in-house. Separate MRP lists are also created for long-term planning. In the long-term planning menu, the stock/requirements list is also available as well as the planning situation as an individual layout. With the evaluation, "Pegged requirements", you can retrace which requirements are the source of which order proposals and which independent requirements (especially sales orders) will be affected if an order proposal is cancelled or if its date or quantity is changed. With the function, "Pegged requirements", you can determine which requirements and order proposals caused the current stock/requirements situation. This information is particularly useful when you have to find out which independent requirements (especially sales orders) are endangered if planned orders are cancelled or if they cannot be delivered on time. This report shows a list of production orders according to the selection criteria entered. The material produced, the order schedule dates, the status of the order, and more are shown for each production order. From this list, the user can view the components and operational information for each order. This report is one that is standard delivered with the information systems, and in standard it does not include any totals listing. Using this report requires that certain info structures are active to reflect current data. This report shows a list of missing parts according to the selection criteria. You can use the missing parts information system to display the missing parts list for a selection of materials, or for all materials. It is possible to restrict your selection to a specific plant, MRP group or requirements data. The Production Order Information System offers various list types in reporting. Their layout can be adapted to suit your requirements. The information displayed in the production order information system as well as the layout of the information is controlled via an overall profile, which you can enter on the initial screen. The overall profile contains several subordinated single profiles. They contain information regarding selection criteria and layout of lists. Overall Profiles Your company may have so many materials that you will not always know whether a specific material already exists in the material master. You can find this out with the help of the materials list. Cap. Planning Evaluation by Work Centers Load Page 69 of 77

MD06

MS07

MD09

CO20

CO24

CO26

MM60

CM01

CM02 CM05 CM21 MCP3 MCP7 MCRE MCRI

Cap. Planning Evaluation by Work Centers Orders This report list displays all work centers and capacities with overload in the next 60 calendar days. This is a report of capacity leveling evaluation-work center view Report for Production order analysis Report for work center analysis Material usage analysis report Product cost analysis report

17. ANNEXURE I

Shift Sequence - Cycle Chain Shift Start Shift I Shift II Shift III General Shift Overtime Shift Day Overtime Shift Night 6:00 AM Shift End Break 2:30 PM 30 MIN Break Time 11:45-12:15 8:00-8:30 Days/Week 6 6

2:30 PM 11:00 PM 30 MIN 10:00 PM 8:30 AM 6:00 AM 6:00 PM 6:00 AM 5:00 PM 30 MIN 6:00 PM 30MIN 6:00 AM 30MIN

11:45-12:15 11:45-12:15 8:00-8:30

6 6

Shift Sequence - Cycle Chain-Hardening Plant

Shift Start Shift I Shift II Shift III 6:00 AM

Shift End Break 2:00 PM

Days/Week 7 7 7

2:30 PM 11:00 AM 10:00 AM 6:00 AM

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Shift Sequence - Cycle Hub Shift Start Shift I Shift II 6:00 AM Shift End Break 2:30 PM 30 MIN Break Time 12:30-1:00 PM 8:00-8:30 PM Days/Week 6 6

2:30 PM 11:00 AM 30 MIN

General Shift Overtime Shift Day Overtime Shift Night

8:30 AM 6:00 AM 6:00 PM

5:00 PM 30 MIN 6:00 PM 30MIN 6:00 AM 30MIN

12:30-1:00 PM 12:30-1:00 PM 8:00-8:30 PM

Shift Sequence - Cycle Hub Nickel Plant

Shift Start Shift I 7:00 AM Shift Sequence - Cycle Hub Zinc Plant

Shift End Break 7:00 PM NO BREAK

Shift Start Shift I 6:00 AM Shift II

Shift End Break 2:00 PM NO BREAK

2:00 PM 10:00 PM " Shift Sequence - Auto Hub PDC,Machine,Paint Sections

Shift Start Shift A 6:00 AM Shift B

Shift End Break 2:00 PM NO BREAK

2:00 PM 10:00 AM NO BREAK Shift C 10:00 PM Shift Sequence - Auto Hub Page 71 of 77 6:00 AM NO BREAK

Assembly,Despatch Section

Shift Start Shift A 6:00 AM Shift B

Shift End Break 2:30 PM 1:00-1:30 PM

2:30 PM 11:00 AM 8:00-8:30 PM

18. ANNEXURE II
Work Center Formulae
The execution time of an operation is defined as the sum of the set-up time and the processing time. The is expressed in the following formula F=SET+RUN*LOT/B The meaning of the formula parameters and the origins of their values are given in the table below. Formula parameter B LOT RUN SET Meaning Base Quantity Lot Size Processing time for base Quantity Set-up time Origin General Operation Value General Operation Value Standard Value Standard Value

Calculations With Several Formulas Since the program adds together the times of the two segments, you can use two formulas, F1 and F2 for the segment. Operation segment set-up: Operation segment processing: F1=SET F2=RUN*LOT/B

The execution time of an operation is here defined as the sum of the times for setup F=SET+RUN*LOT/B+SET*((LOT-1) DIV SI

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The meaning of the formula parameters and the origins of their values are given in the table below. Formal Parameters B LOT SI RUN SET SET2 Meaning Base quantity Lot size Setup interval Processing time for base quantity Setup time before processing Setup time during processing Origin General operation value General operation value Standard value or formula constant Standard value Standard value Standard value

The setup interval is here the number of items that are produced before setup is repeated. You can assign just one operation segment, for example the processing segment, a formula to calculate the execution time of the whole operation. Calculation with several formulas Operation segment set-up: Operation segment processing: F1=SET F3=RUN*LOT/B+SET2*((LOT-1)DIV SI)

19. ANNEXURE III

PRODUCTION STRATEGY The following Production Strategies were proposed, presented and discussed:
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1. Make to Stock Net requirement Planning (10) 2. Make to Order (20) 3. Make to Order without final assembly (50) Auto Chain Division For Auto Chain division, Make to Order without final assembly (50) will be used, with MRP being run on a weekly basis by the sectional MRP controller, based on the schedules provided by the customer. Auto Hub Division For Auto Hub division, Make to Stock strategy (10) will be used, with MRP being run on a monthly basis by the sectional MRP controller, based on the schedules provided by the customer. Cycle Chain Division For Cycle Chain division, all export items would adopt a Make to Order strategy (20) , where as all the domestic items will adopt a Make to Stock strategy (10). MRP run to be on a weekly basis by the sectional MRP controller. The MRP run will be based on the sales order, Planned independent requirement (MD02), taking into consideration the existing stock for WIP and raw material. For Export orders, MRP run by sales order to be used (MD50-Make to Order Planning with Multi-Level).The MRP run only after actual creation of the sales order in the system. The PIR quantities will be as per quantities given by the sales department, on a weekly basis. These PIR quantities will include both OEM and replacement market requirements and will be based on experience. Cycle Hub Plant For Cycle Hub Plant, all export items would adopt a Make to Order strategy (20), where as all the domestic items will adopt a Make to Stock strategy (10). MRP run to be on a weekly basis by the sectional MRP controller, based on the schedules provided by the customer. There will be one MRP controller for all the divisions of Auto Chain, Auto Hub, Cycle Chain and Cycle Hub mentioned above as the sectional MRP controller. The MRP run will be based on the MRP controller within each of the four divisions. Based on the MRP run schedule lines will be generated for raw material having scheduling agreement with respect to the vendors otherwise purchase requisitions will be generated. For items in the general store in both the plants, consumption based planning will be used, with the MRP area as Storage location. For this maximum and minimum stock levels will be defined.

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20.

ANNEXURE IV

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