PP Questions Frequently asked Q1.

What is the difference between by-product and co-product and how do you differentiate them in a BOM? Ans1. In case of Co-product costs are settled with a apportionment structure. In case of By-product the price of this y-product is credited to the order or the material stock account of the lead material ein! manufactured. Co-Product as well as y-product are defined as B"# Components$Items. Both of them ha%e ne!ati%e quantities. & 'ot all ne!ati%e quantity items fall under these cate!ories(). *hen B"# is created for F+,- . you can see one indicator in C"#P"'+'- /+-AI01 screen for co-product. 2ou need to define the co-products with this special indicator. Co product must costin! %alue. must ha%e a settlement rule and mandatory with main product. B2 product has no costin! and settlement rale. Bulk product....#,P run can not consider the ulk product. Co product and By-product are oth marked in ne!ati%e Qty in B"#. But the way differentiate in any industry is that if you are !oin! to accept the orders for a ne!ati%e product in B"# and !oin! to plan for it then it has to e Co-Product. Because it has a cost %aluation. If you are not !oin! to plan for it and will sell in open market or discard it as per situation then it has to e By-product. Q2. How to configure the p anning ca endar for the !"# ca cu ation where goods are shipped e$ery other wor%ing day? Ans3 4se -ransaction #/56 and define calculation rule for e%ery other workin! day. Check the lot si7e settin!s in "#I8 and maintain rele%ant data in ##,. Q&. What are a the settings done for configuring integration of ## with '()O? Ans3 Assi!nin! of Cost center to work center. Assi!nin! Acti%ity type to work center. 1tandard Cost estimate. Costin! ,un. "rder settlement. Product costin!. Q*. Where can you find +ead ## Master in ,!# -##.? 2ou will find in master data ta pa!e of production header data o%er%iew. C"95 - ,ead PP #aster /ata. Also from Functions menu you will !et ,ead PP #aster /ata. -his means that you want the system to re-update the production order with the latest B"# structure.

Q/. What are some important tab es used in ## ? Ans3 For orders3 C4AF:/ dialo! structure for order headers and items AFP" - "rder item AFF0/ "rder3 /ialo! ta le for order sequences &AFF0) #"P+, "peration for production order ;B+/ Capacity requirements AF,4 "rder completion confirmations ,+1B ,eser%ation$/ependent ,equirements AFF</ 1tructure of P,-=s in orders 1"P+, 1u -operations 1AF,4 1u -operation confirmations 1;B+/ Capacity requirements for su -operation #,P ta le is #/-B. For PI3 CA4F: - AF:C "peration within an order AFF- "rder Process Instructions AFF: "rder process instruction %alues 1ome other ta les of interest3 P0;". #AP0 . P0A1. Q0. How +e1uirements - #(+2 ,a es Order2 )ustomer +e1uirement. are reduced after they are produced? Ans3 ,eqmts are reduced automatically after /eli%ery is made to the Particular "rder &In case of 1trate!y 11. the PI,s are consumed after the >, for Production "rder) Q3. (f you ha$e re eased #rdn order today and it had gone to shop f oor. 4e5t day it was found that there is shortage of materia . What wi you? !ns6 /o a%aila ility check. 2ou will !et missin! parts list. Procure those missin! parts. -hen confirm the production order. "ne more thin! you can do. chan!e customi7e settin! so that user cannot release if parts are missin! durin! order release.

Q?. How to insert an inspection chec%point at the end of an operation? !ns6 If in process sample is to e defined. assi!n inspection type 9@ in the #aterial #aster. -hen create #ICs and assi!n them in the ,outin!s. 1ystem automatically !enerates the Inspection 0ots. Q7. )an any body e5p ain me why wor% schedu ing $iew is re1uired for semi finished and finished products? -Because we8 mention a detai s in M+# $iews.? Ans3 *e need to maintain workin! schedulin! %iew in order to make that finished or semi finished !oods a%aila le for production as we assi!n production scheduler and production scheduler profile in this %iew. if not maintained con%ersion of planned order to production will not e possi le. Q19. What are the cuto$er acti$ities fo owed for ## modu e? Ans3 Production Plannin! $ #aster data3 For Production plannin!. only master data shall e mi!rated to 1AP. In the 1st 1ta!e. there is no master data. Followin! is the master data elements rele%ant for PP3 - Bill of materials - ,outin!. - *ork Centres. -ransaction data3 As of the cut off date. ideally there should not e any work in process. All the open production orders should e closed and semi finished !oods should e dismantled and should e added to ,aw materials. -his strate!y should e followed for all production orders where lead time to complete the production order is not lar!e. 1ince. the production orders are for lon!er duration and it is not possi le to dismantle the product and add it to in%entory. followin! can e the strate!y for mi!ratin! the data to 1AP3 - Create a material master for the work in process and set the standard price as the cost incurred for that product &ie. *ork in process) - Create a ill of material &which will e used only for this production order) includin! this material and other materials still to e consumed. - Create ,outin! for rest of the production process. - Brin! the work in process material into in%entory as of the cut off date. - Create the production orders in 1AP for the *ork in process and issue materials to production order. Complete the production process after the cut off date of the proAect.

Q11. ,ubcontracting (n ,!# Below are the steps of su contractin!3 1. For a production material &1991). one raw material &5991) is assi!ned. 5. Production process of 1991 is ha%in! four operations 19. 59. @9 and 89. @. In this 19. @9. and 89 are internal operations and 59 is eBternal operation &su contractin!). 8. -o address this. we created a dummy material &non-%aluated) and named as 1991-59 &Finished product num er C "peration to e performed). 6. -his 1991-59 should form part of the component in B"# of 1991. -hat is B"# of 1991 will ha%e components as raw material 5991 and this dummy material 1991-59. In routin!. assi!n this dummy material 1991-59 to operation 59. D. /urin! B"# creation. you should remo%e costin! rele%ancy for the item 1991-59. E. In routin!. operation 59 is created with a work center &which is eBternal operation work center) with eBteranl operation control key. ?. In operation details. for eBternal processin!. assi!n the info record of eBternal processin!. F. Info record of eBternal processin! has to e created for %endor with rele%ance to the operation to e performed eBternally with %endor. &*e are usin! material !roup field in the eBternal processin! in routin! operation). 19. *hen create production order with a o%e set up. system will create Purcha ,eq for eBternal operation. -his has to e con%erted to purchase order. 11. 'ow. this dummy material should e kept as 6999 or D999 in stock usin! 6D1. *hen Purchase order is raised. required quantity has to e mo%ed to %endor usin! 681. *hen we do !oods receipt the stock with %endor shall come down. *ith this. we can monitor the material &with dummy material num er) stock with %endor &please note we can see only quantity and not %alue) . 15. *hen we do >, for eBternal purch order. we recei%e only the operation performed. &1o. con%ersion cost to %endor shall e paid). 1@. After ensurin! >, is done. order confirmation of operation 9959 has to e done. &here we capture the quantity and also the %aluation of material in production order).

Q12. )an anybody te me how a process has to be gi$en to subcontracting? ,uppose2 ( ha$e & operations 1. wea$ing 2. dyeing &. cutting : pac%ing if no 2 process -i.e ;yeing. has to be gi$en to subcontracting2 what process shou d i fo ow ? Ans3 -he followin! process to e followed for su contractin!. 1. Item code &material master) to e created at the sta!e of efore dyein!. 5. Item code &material master) to e created after /yein! as su contracted item.&F@9) @. Bill of material to e created for the material &5) callin! for material &1) 8. Info record and source list to e created for material &5) with the correspondin! %endor 6. P" to e released for material &5) D. Alon! with P" the material &1) to e issued to %endor E. "n receipt of material when >, is made the stock with %endor will !et updated. Q1@. )omponent scrap in percent3 Percenta!e of scrap that occurs durin! production of the material if the material is a component. 4se 3 Component scrap is used in #,P to determine the quantities of components required. *hen eBplodin! &B"#). the system increases the required quantities of the component y the calculated scrap quantity. +Bample ,equired quantity 599 pieces Component scrap 19G 1crap quantity 59 pieces -herefore. 559 pieces are required. Operation scrap6 1crap that is eBpected in one operation for the quantity of a component to e processed. 4se3 -his entry is used to o%erride the assem ly scrap for materials of hi!h %alue. If operation scrap is maintained. you a%oid the situation where y too much of the material is planned in #,P for the components of su sequent operations. Procedure3 If you make an entry for operation scrap. you must also select the operation scrap net indicator &'et field). !ssemb y scrap6 Percenta!e scrap that occurs durin! production of the material if the material is an assem ly. 4se -he assem ly scrap is used in materials plannin! to calculate the lot si7e of the assem ly. -he system increases the quantity to e produced y the scrap quantity calculated. Procedure3 If the material is an assem ly. specify the percenta!e scrap as required. +Bamples If the quantity to e produced is 599 pieces and you specify an assem ly scrap of 19G. you are reckonin! with a scrap quantity of 59 pieces. As a result.559 pieces are produced.

4et +e1uirements # anning -19. -his plannin! strate!y is particularly useful in mass production en%ironmentsH it is often com ined with repetiti%e manufacturin!. 2ou should choose this strate!y if you want production to e determined y a production plan &/emand #ana!ement) and if you do not want sales orders to influence production directly. "ne of the most important features of this plannin! strate!y is that it ena les you to smooth the demand pro!ram. +Bamples from Industry I 1trate!y 19 is used in the customer packa!ed !oods industry ecause it is possi le to plan the demand for ice cream %ery easily. for eBample. while a sin!le order should not affect production. I 1trate!y 19 is also used for products with seasonal demand where production needs to e smoothed. Prerequisites 2ou must maintain the followin! master data for the finished product3 I 1trate!y !roup 19 on the #,P screen. I Item cate!ory !roup &for eBample. '",#) on the 1ales "r!ani7ation screen. I A%aila ility check field in Customi7in! so that you perform an a%aila ility check without replenishment lead times &in the standard system. you must enter 95 here). <ross +e1uirements # anning -11. -he make-to-stock strate!y !ross requirements plannin! is particularly useful in mass production en%ironmentsH it is often com ined with repetiti%e manufacturin!. -his strate!y is particularly useful if you need to produce. re!ardless of whether you ha%e stock or not. For instance. steel or cement producers mi!ht want to use this strate!y ecause they cannot shut down productionH a last furnace or a cement factory must continue to produce. e%en if this means ha%in! to produce to stock. -his strate!y is also frequently used if there is a #aterial ,equirements Plannin! system in a le!acy system that needs to e linked to ,$@ which ser%es as a production eBecution system. -he le!acy system calculates a specific production plan. which has to e eBecuted. re!ardless of the stock situation in ,$@. +Bamples from Industry <ea%y-duty industries such as steel manufacturin! & last furnace) and the cement industry. Prerequisites 2ou need to maintain the followin! master data for the finished product3 I #aintain strate!y !roup 11 on the #,P screen. I 1et the #iBed #,P indicator to 5 on the #,P screen. I #aintain the item cate!ory !roup &for eBample. '",#) on the 1ales "r!ani7ation screen. I #aintain the A%aila ility check field so that you perform an a%aila ility check without the replenishment lead time &checkin! !roup 95 in the standard system).

What8s the difference between process order and production order? "hese are differences between +=M>;iscrete> and #rocess manufacturing. ,+#3 Production is ased on the planned orders. Plannin! and manufacturin! is ased on period wise. 'ormally sin!le products ein! manufactured for a lon!er period of time . 'ormally production are carried out on a sin!le production line &repetiti%ely). Product costin! and settlement is done throu!h product cost collector. Planned orders are known as ,un schedule quantities. #eans quantity which is ein! manufactured in a certain period. Planned orders are sufficient to carry out production at shop floor area. #aster data includes production %ersion. product cost collector and rate routin!. #aterials will e issued anonymously to production lines means without reference to planned orders. /iscrete3 Production ased on the production orders Plannin! and manufacturin! depends on production orders. Products chan!ed frequently. Production is carried out on different production lines &scattered- discrete). Product costin! and settlement is done throu!h production orders. Planned orders are stock type later con%erted into production orders. Production orders are required. Production %ersion and product cost collector are not mandatory. #aterials will e issued always with reference to production orders. #aster /ata includes ,outin!s and B"#s. P,"C+113 1) Batch "riented process manufacturin!. 5) Process order ased manufacturin!. you copy the process descri ed in a master recipe and adAust it to the actual production run. @) It is primarily desi!ned for the chemical. pharmaceutical. food and e%era!e industries as well as the atch-oriented electronics industry. 8)-he inte!rated plannin! of production. waste disposal. and transport acti%ities within a plant. 6) #aster /ata includes #aster ,ecipes and resources. D) Process #ana!ement3 In this area. you coordinate the communication etween PP-PI and process control durin! the eBecution of a process order. '=!"?+=,

..............................................PP ........PP-PI II a%aila ility check for P,-- 2es& PP) 'o&PP-PI) II "rder splittin!................... 2es& PP) 'o&PP-PI) II -ri!!er point................. ....2es&PP) 'o&PP-PI) II "rder appro%al.... .............'" & PP) 2es&PP-PI) II process mana!ement & control receipe and PI sheet)............................ '" & PP) 2es&PP-PI) II di!ital si!nature..................'" & PP) 2es&PP-PI) II material qty calculation....... .'" & PP) 2es&PP-PI) I I PP&discrete ) As the name descri es this is used where one work center is used for many orders and we need to schedule the orders dependin! on the requirement. Best eBample is in a en!ineerin! industry lathe can e used for many purpose. hence one order may e for a chair or other order may e for a ta le. in oth cases say the le! is manufactured in lathe. <ence oth order is routed throu!h lathe. Both end product is different. For implementJit is not complicated. ut not as simple as ,epetiti%e PP-PI -his is used mainly in a process industry where in process is usually atch mana!ed and we need to use PI sheet &operates enters the production and consumption. shift in char!e to appro%e the qty and >,$>I happens in ack!round). and the atch has to e authori7ed efore confirmin! the product. -his is usually in a pharma industry. For implementJit is complicated if PI sheet is in%ol%ed ,epetiti%e manufacturin! -his is used in a industry where product is continues and only one product is produced for lon! duration. 'o much controls are required. For implementJit is simple What is ! ternati$e BOM? <eader material ha%in! alternati%e component with either same or different item data. Q. What is )O(,? C""I1 is Production order information system.It !i%e the detail information a out production order.*e can !enerate %arious production report with help of differant option !i%en in a 0ist and 0ayout. Q.How costing is done in pp or how u wi %now the cost of a product which is manufactured in our p ant? -here are different methods of doin! product cost estimate. e.!.. 1td. cost estimate or %aria le cost estimate. From the B"# and routin! the total no of components used for that product is calculated usin! the price mentioned in accountin! %iews and from routin!s each operation cost is

Calculated from the acti%ity types defined in work-centers. Collecti%ely this cost is displayed in Product cost estimate as cost of manufacture in the -.code C; 11n. In case of %aria le cost. all the %aria les are considered for the production order and the actuals are considered for calculatin! the product cost. It is also possi le to ha%e cost estimates and actual costs from which we can find the %ariances. Q ;o you need a comp ete history of your BOM changes? If you want to %iew all history of B"# Chan!e pl7 refer --Code C1?9 it include oth short teBt K lon! teBt. Q How is sender and recei$er when we sett e the #rocess order in M"O? After completion of the "rder. we settle the order. when we settle it the order is settled to a material incase of a #-1 scenario and to sales order incase of a #-" scenario. <ere you need to settle it a!ainst a Cost center. 1ettlement profile in the order type controls it. 1ettlement profile you need define sender and recei%er. sender for a "rder is always order and recei%er is Cost center. Q What are the main contro s in M+#? Q. What is bac%-f ush? What are the benefits of bac% f ush? Backflush is the automatic process in which system perform the auto >ood Issues resultin! into sa%in! in the manual interference and there y cost. *e acti%ate it in "peration o%er%iew. *orkcenter and #aterial master. But settin! in the material master has hi!h priority. Q. )an any body te me integration between pp with fi2mm2sd.? PP inter!rates with all the modules and asic inte!ration. etween ## is master data &material master record). For 1/ while deli%erin! the stock. sales order consumes the stock&%a91) And fico calculates the cost of machine and manpower and all other cost includin! material costs *hat do you mean y Production 1upport.with some eBamplesL *hat is milestone confirmation L

*hat structure do your B"#s ha%eL <ow many le%els are thereL <ow many components are there on each le%elL Q. What are different M+# types? -he differnt types of plannin! procedures are 1. #P1 - #aster Production 1chedulin!. 5. #,P - #aterial ,euquirements plannin!. @. Consumption ased plannin! - &there are two types) i) Forecast ased plannin!. ii) ,eorder point plannin! a) #anual ,eoderpoint plannin!. ) Automatic reorderpoint plannin! 1. #,P - P/3 5. Consumption ased plannin!3 a. ,e order point plannin!3 - *hen the stock le%el reaches the reorder point set takin! ,0- into consideration. the procurment order is created automatically without onsiderin! PI, or CI,. . Forcast ased plannin!3 - here procurment is ased on forecat. c. -ime ased plannin!3- <ere procurment is done in re!ular inter%al. @. #P13 - this is set for critical material which are eBcluded from #,P. 8. '" #,P3 6. #,P in eBternal plannin!3 - -his is set when an additional plannin! tool like AP" is set and plannin! is done in AP". *hat are the tools used in 1AP PP support proAectL what is the diff. etween '+-C<.'+-P0 A'/ '+4P0 what=s the difference etween #,P %s #P1L *hat r different reduction strate!ies in 1AP PPL why their is need of production %ersionL Q. How you can imp ement new production order type? 1. /efine order type - "PM< 5. Assi!n serial num er @. "rder type dep. parameter - opl? 8. 1chedulin! parameter - opu@ 6. Confirmation parameter - opk8 L

D. A%aila ility check control N opAk Q. what is ead time2 p anning time2 p anning fence time? 0ead -ime 33 It is the total time required. y which product is ready for use &manufacturin! time Cinspection C handlin!.. etc) Plannin! -ime Fence3 It is the time hori7on which can restrict the application area of the #,P. that is . there will not e automatic chan!es to the /ates and quantities within this Plannin! time fence .durin! plannin! run. It starts from current date to the num er of days in future specified as plannin! time fence as in work days. +Bample OOO suppose . today is 1@ Manuary. and your plannin! time fence is 6 days . then there will not e any automatic chan!es durin! plannin! run etween 1@ Man-to 1? Manuary. And one day efore the plannin! time fence . that is on 1E Manuary in our eBample .the planned orders are automatically !et confirmed . Q *hat happens at the ack!round when #,P runs takes place mention stepsL 1. Check plannin! File +ntry 5. 'et requirements Calculation @. 0ot si7e calculation 8. 1chedulin! 6. 1ource determination D. B"# eBplosion 1. 1ystem checks the Plannin! file entry. 5. 1ystem do the net requirement calculation y considerin! lot si7e. scrap. roundin! profile.If the stock is less system create procurement proposal. @. /urin! the net requirement calculation system considers plant stock. firmed receipts. issues. 1afety stock also considered. 8. If the result is ne!ati%e qty system will create planned or procurement proposal. 6. 1chedulin! is carried out for planned or procurement proposal. D. 1ystem eBplodes B"#. Q Q# Flow how it occursL Q 'et I/ Indicator durin! the scrapL Q PI sheets and typesL Q Batch #ana!ement Confi! stepsL

Q /ifference etween /iscrete n ProcessL