Class 10 SCM300 REM PP PI PDF

SCM300 Supply Chain Manufacturing Overview
SCM300
Supply Chain Manufacturing Overview
THE BEST-RUN E-BUSINESSES RUN SAP

SAP AG 2003
SAP AG2003
System R/3 ERP, Enterprise Extension Set 1.10

2003/Q3
50063193
SAP AG
SCM300
-1
Appendix: mySAP Business Suite and Production
Contents:
mySAP Business Suite: Solutions, Key Areas, Components
Key Areas in the mySAP SCM Solution
Roles in Production
Components in the Key Area Production
Master Data for Production
Integration of Production in Planning
SAP AG 2003
SAP AG
SCM300
Appendix-1
Value Creation Using the mySAP Business Suite

SAP xApps
mySAP
Business Suite
mySAP
SCM
mySAP SRM
mySAP Financials
mySAP
CRM
mySAP HR
SAP
BI
Corporate Services
Operations
SAP
NetWeaver
SAP Enterprise Portal
Industry Solutions
SAP Customer Service Network
mySAP PLM
mySAP
ERP
SAP
R/3 Enterprise
Application Platform (Web AS)

People Integration (Portal)
Information Integration (BW, MDM)
Process Integration (XI)
SAP Business One
SAP AG 2003
The mySAP.com Business Suite offers cross-industry and industry-specific solutions. Cross-industry
solutions are, for example, mySAP SCM (Supply Chain Management) and mySAP PLM (Product
Lifecycle Management).
Each solution has different key areas. The mySAP SCM solution, for example, contains the key areas
SCM planning and SCM production.
Each solution and key area is technically realized using components. The key areas SCM planning and
SCM production use the components SAP R/3, SAP APO (Advanced Planning and Optimization) and
SAP BW (Business Information Warehouse).
The mySAP Business Suite is based on SAP NetWeaver, which is an open, scalable infrastructure that
allows the integration of heterogeneous environments (SAP and non-SAP components) The SAP
NetWeaver comprises the SAP Web Application Server, the portal infrastructure, the exchange
infrastructure and information integration. The SAP Web Application Server supports native Internet
technology (HTTP, XML), JAVA and ABAP.
In addition to the solutions themselves, SAP offers corresponding services: The SAP Customer Service
Network allows customers to maximize the return of investment using the mySAP Business Suite.
The SAP Customer Service Network comprises: Business Solutions Consulting (Business Solution
Design: concepts of business solutions, project management, Continuous Business Improvement);
Solutions Operations Services (technical implementation and continuous optimization); training; support
(24x7 support, EarlyWatch, GoingLive).
SAP AG
SCM300
Appendix-2
Solutions (1)
Cross-Industry
Solutions
Industry Solutions
mySAP Enterprise Portals
mySAP Aerospace & Defense
mySAP Insurance
mySAP Customer Relationship

Management
mySAP Automotive
mySAP Media
mySAP Banking
mySAP Mill Products
mySAP Supply Chain Management
mySAP Chemicals
mySAP Mining
mySAP Exchanges
mySAP Consumer Products
mySAP Oil & Gas
mySAP Supplier Relationship

Mgmt (SRM)
mySAP Engineering & Construction
mySAP Pharmaceuticals
mySAP Financial Service Provider
mySAP Public Sector
mySAP Healthcare
mySAP Retail
mySAP High Tech
mySAP Service Providers
mySAP Higher Education &

Research
mySAP Telecommunications
mySAP Services
mySAP Hosted Solutions
mySAP Business Intelligence

mySAP Product Lifecycle Mgmt
mySAP Human Resources
mySAP Financials
mySAP Mobile Business
mySAP Utilities
Infrastructure und Services

mySAP Technology
SAP AG 2003
SAP AG
SCM300
Appendix-3
Solutions (2)
Industry Solutions
mySAP Public Sector
mySAP Higher Ed. & Research
mySAP Healthcare
mySAP Insurance
mySAP Financial S. Provider
mySAP Banking
mySAP Utilities
mySAP Telecommunications
mySAP Service Providers
Service
Financial Public
Industries Services Services
mySAP Media
mySAP Retail
mySAP Mining
mySAP Oil & Gas
mySAP Pharmaceuticals
mySAP Mill Products
mySAP CP
Consumer
Industries
Process
Industries
mySAP Chemicals
mySAP High Tech
mySAP E&C
mySAP Automotive
Cross-Industry
Solutions
Discrete
Industries
mySAP Aerospace & Defense
Financial
Services
mySAP Enterprise Portals

mySAP CRM
mySAP SCM
mySAP BI
mySAP Exchanges
mySAP SRM
Best-of-Breed
Solutions for Industries
mySAP PLM
mySAP HR
mySAP Financials
mySAP Mobile Business
SAP AG 2003
SAP AG
SCM300
Appendix-4
The mySAP SCM (Supply Chain Management) Solution
Partner
Supply Chain Collaboration
Vendor
Planning
Strategy
Supply Chain Design
Supply Source
External
Procurement
Sales and
Delivery Planning
Production
Manufacturing
Delivery
Order
Fulfillment
Supply Chain Performance Management
Customer
Partner
Supply Chain Event Management

SAP AG 2003
mySAP Supply Chain Management (SCM) is a complete solution that allows a company to efficiently
plan, create and control products or services within complex logistics networks.
This solution supports a synchronized and close interaction between all departments involved (and all
people involved) within a logistics chain.
Customers, sales, production planning, manufacturing, warehouse management, purchasing, and vendors
are all included in this complete solution.
Especially the processing of cross-company processes or collaborative planning and procurement
processes, which also allow for a connection to an open market place, is a main feature of this solution.
SAP AG
SCM300
Appendix-5
Key Areas in the mySAP SCM Solution
mySAP SCM
SC Technology
Sales Processes
and
Logistics Execution
SC Networking
External
Procurement
SC Coordination
SC Planning
Manufacturing
Solution
SC Execution
Key area
SAP AG 2003
Supply Chain Technology:

Open technological framework; uses internet standards (HTML, XML, WAP)
Flexible optimization functions for optimally coordinated logistics chains
Superior logistics performance: efficient logistics planning and scheduling using the liveCache
Supply Chain Networking:
Private marketplace: company-wide information exchange, planning, coordination
Company portal: provides user-specific information via the web browser
Mobile Supply Chain Management: mobile data entry, allows for seamless information flow
Supply Chain Coordination:
Supply Chain Event Management: monitors events and processes in the logistics network
Supply Chain Performance Management: determines performance figures for process optimization
Supply Chain Planning
Supply Chain Design: design and optimization of the supply chain infrastructure
Company-wide sales and requirements planning
Supply Chain Execution
Production: supports discrete production (order-oriented or period-oriented) and process manufacturing from
planning to realization, creates feasible schedules taking into account the availability of material, capacity and
production resource/tools
External procurement: covers the whole procurement process from the purchase requisition via the source of
supply determination, to the purchase order, goods receipt, invoice verification and inventory management;
supports internet-based direct procurement; uses e-marketplaces, catalogs, rules-based procurement strategies for
automated procurement
Sales Processes and Logistics Execution: manages sales orders with offer creation, delivery date determination,
global availability check, picking, invoice documenting; transportation management with transportation planning
and vehicle scheduling; delivery tracing
SAP AG
SCM300
Appendix-6
Roles in Production
Production planner
plant manager,
MRP controller
Production scheduler
Demand
planning
Detailed
scheduling
Plant
reqmts
Industrial
engineer
Production worker
Work
scheduling
Production
Production worker
(foreman)
Docu.&
analysis
Plant manager,
quality manager
Design
engineer
SAP AG 2003
With the introduction of the mySAP Business Suite, computer-supported workplaces were created
throughout the whole process chain in production.
The roles shown on this slide are just a few of the roles required to manage shop floor control.
In addition, there are single roles for different activities (tasks), authorizations, and responsibilities
which correspond to actual daily work.
SAP AG
SCM300
Appendix-7
The mySAP Enterprise Portals Solutions

R/2
R/2
3rd
3rd
party
party
Other
Other
ERP
ERP
Systems
Systems
not SAP
Tim Brown
3.1H
SAP Components
R/3
R/3
mySAP
mySAP
Enterprise
Enterprise Portals
Portals
Web Browser Access
SEM
SEM
BW
BW
single
single point-of-access
point-of-access
Integration
Integration
Role-based
Role-based
Personalized
Personalized
( ... )
KW
KW
APO
APO
CRM
CRM
Syst
em l
Inside
imita
tion
Partner
mySAP
mySAP Partner
Marketplace
Marketplace
SAP Internet Services
other Internet Services
Outside
SAP
SAP
SAP AG 2003
The cross-industry solution mySAP EP (Enterprise Portals) is an open, role-related enterprise portal,
which allows a user to have integrated and personalized access to information, applications, and services
from internal and external sources via a web browser.
mySAP EP is the starting point for an employee to his or her daily work. It makes information and
applications available per mouse-click over an interface that is easy to understand, adjust and use. The
following characterizes mySAP EP:
Single point-of-access:
A web browser allows for central access to different applications, contents and services.
- Access is possible everywhere and anytime.
- Convenient integration of SAP and non-SAP components and applications from intranet and
internet services.
- Openness and flexibility
Personalized and role-based, individually adjustable user interface
The description above describes the mySAP EP application using a production scheduler as an example.
Based on his or her daily tasks, an employee is assigned a role with special authorizations and system
access.
A production scheduler is given access to selected functions from the SAP components R/3, APO, and
BW, and well as the option to have internet access.
SAP AG
SCM300
Appendix-8
Components in the Planning and Production Areas

Enterprise Portals: integrated access to all components
R/3
BW
...
SAP
BW
APO
SAP
R/3
Core
Interface
Plug-In
Reporting
SAP AG 2002
SAP
APO
Customer requirements
management
Production planning in the plant
Production processing
Requirements
forecast
Plant-wide planning
Quantity and capacity
requirements planning
Optimization
...
...
The SCM key areas Planning and Production mainly use the following mySAP components:
SAP R/3
SAP APO (Advanced Planner and Optimizer)
SAP BW (Business Information Warehouse)
A plug-in allows for the interfaces responsible for the integration of R/3 with BW or APO. The interface
between R/3 and APO is called a core interface (CIF).
SAP AG
SCM300
Appendix-9
Integration of Production in Planning
SCM Planning
Plnd ind. reqmts
Demand program
Cust. reqmts
Stock
MRP
B
A C D
E
Planned order
Goods issue of comp.

Execution of production
Goods receipt of product
Purchase requisition
SCM External
Procurement
SCM Production
Work scheduling
Purchase order
Goods receipt
Capacity requirements planning
Sales
Material forecast
Invoice receipt
Settlement
SAP AG 2002
Shop floor control is a central part of a complex process starting with an independent requirement
(planned or customer requirement) and ending with the goods issue of a finished product.
SAP AG
SCM300
Appendix-10
Supply Chain Planning: Overview
R/3
LIS
APO
BW
Demand Planning
(DP)
Flexible Planning
Standard SOP
SD
Global Availability
Check (ATP)
Demand
Management
Supply Network
Planning (SNP)
Material
Requirements
Planning (MRP)
Capacity Reqmts
Planning (CRP)
Production
Planning and
Detailed
Scheduling (PP/DS)
Transportation
Planning (TP/VS)
SCM Production / External Procurement

SAP AG 2002
Planning covers several steps that are executed using different components in R/3 and/or APO. It
makes sense to use both systems together for planning.
The systems are integrated via the CIF interface (CIF: Core Interface).
Demand planning uses past sales quantities to calculate the future demand program. Flexible planning
(R3), the standard SOP (R3) or demand planning (APO-DP) can all be used to do this.
Supply Network Planung (APO) allows for plant-wide planning of all procurement operations.
The demand program (determination of planned independent requirements) is usually planned in R/3.
However, planned independent requirements can also be determined in APO-DP.
Sales orders are usually entered in the R/3 System. The ATP check of a sales order can take place
globally in APO.
Material requirements planning can be executed in both systems. In R/3 capacity planning is executed
separately in a second step, while quantities and capacities are planned simultaneously in APO-PP/DS.
Production takes place based on planned orders.
Here mySAP SCM supports different production types.
SAP AG
SCM300
Appendix-11
Master Data for Planning and Production
APO
R/3
Core Interface
Master data
Plant
CIF
Initial data transfer /
transfer of changes
Master data
Location
Customer
Vendor
Material master
Product
Work center / resource /

capacity
Resource
Routing /
master recipe
and BOM
PPM
SAP AG 2002
Specific business operations for planning and shop floor control in R/3 and in APO are based on master
data from Lifecycle Data Management. Lifecycle Data Management is a key area in the solution mySAP
PLM (Product Lifecycle Management).
The master data objects from R/3 and APO are not identical.
The R/3 System is the leading system for the master data.
The APO Core Interface (CIF) allows R/3 master data to be represented by the corresponding master
data in APO. Both the initial transfer of data as well as the supply of changes made to data in APO are
achieved via the CIF.
SAP AG
SCM300
Appendix-12
Transaction Data for Planning and Production
APO
R/3
Transaction data
Transaction data
Sales orders
Planned ind. reqmts
Planned orders
Stocks
Production orders
/ process orders
Reservations
Purchase orders
Core Interface
CIF
Integration
model
Orders
- Production order
- Replenishment order
- Procurement order
...
(Distinction
based on ATP
category)
SAP AG 2002
The selection of transaction data exchanged between R/3 and APO is defined in an integration model in
R/3.
All R/3 transaction data is represented in APO by orders, which are distinguished using their ATP
category.
SAP AG
SCM300
Appendix-13
SAP AG
SCM300
Appendix-14
Summary
Contents:
Overview of production types
Additional information
SAP AG 2002
SAP AG
SCM300
8-1
Course Overview Diagram
Course Overview
Introduction
Order-Controlled Production
with Production Orders
with Process Orders
Project-Oriented Production
6
7
88
Repetitive Manufacturing
Kanban
Summary
SAP AG 2002
SAP AG
SCM300
8-2
Overview of Production Types (Basic Functions)

SFC
Order-related production
Status management
Scheduling (with, w/o time)
Capacity requirements
Costing (standard and simultaneous costing)
Cost Object Controlling Order-related
Product-related
Availability checks
Material
PRTs
Capacity
Printing of shop floor papers

Material staging using reservations
Goods issue (manual or backflush)
Confirmations of quantities, activities and
time events (var. confirmation procedure
Work in process (determination of unfinished prod.)
Goods receipt (manual or automatic)
Period-end closing
Archiving and retrieval
Mass processing
PI
REM
X
X
X
X
X
X
X
X
X
X
X
X
X
X
--(4)
X
X
-X
X
(1)
X
X
-X
(2)
---
X
X
X
X
X
X
X
X
(7)
(6)
(3)
(8)
X
X
X
X
X
X
X
X
X
X
(9)
(5)
X
---
SAP AG 2003
Legend:
SFC = Shop Floor Control = shop floor production = discrete manufacturing with production orders
PI = Process Industry = manufacturing with process orders
REM = Repetitive Manufacturing = period-based production
(1) Possible to limited extent
(2) For planned order only
(3) Backflush only
(4) Valid period only
(5) Fixed to final confirmation
(6) No reservations!
(7) No shop floor papers, only quantity papers (dispatch list) and operational method sheet
(8) Quantities and activities only
(9) For reporting point backflush only, for make-to-order only
Scheduling normally does not involve checking the capacity available.
For production/process orders, you can carry out finite scheduling (forwards with check of available
capacity).
SAP AG
SCM300
8-3
Overview of Production Types (Special Functions)

Production of configurable materials
Production with production version
Manufacture of co-products
Batch number assignment
Batch determination
Material quantity calculation
Batch-specific units of measure
Resource network
Resource selection
Engineering change management
Multi-level collective orders
Assembly orders
Order splitting
Serial number management
As-built configuration
Cross-plant production
Externl processing/external procurement
Trigger points
Phantom assemblies
Discontinued parts (simple, groups)
SFC
PI
X
X
X
X
X
-X
--X
X
X
(5)
X
X
X
X
X
X
X
X
X
X
X
X
X
X (4)
X
X
-X
X
-X
-X
X
-(7)
X
REM
X
X
(1)
(2)
(3)
-X
----X
-(6)
-X
---(8)
SAP AG 2003
(1) By-products only

(2) At goods receipt of finished product
(3) At goods issue of components
(4) Active ingredient management can be realized together with material quantity calculation
(5) Cost Object Controlling for product in standard system only
(6) At goods receipt using confirmations
(7) Not with approved process orders
(8) simple or parallel discontinuation possible
SAP AG
SCM300
8-4
Overview of Production Types (3)
Link to process control level

Interface (BAPI, RFC)
Process management
SFC
PI
REM
PP-PDC
--
PI-PCS
X
(1)
--
--
--
--
--
X
X
---X
X
X
X
X
X
X
X
X
-----
-X
X
X
-X
(Control recipes, PI sheets, process

messages)
OPC interface
Production in compliance
with GMP
Order approval
Integration with QM
Inspection during production
Inspection for goods receipt
Material identification
Material reconciliation
Batch record
Batch where-used list
Digital signature
in production
in QM
SAP AG 2002
(1) Possible using BAPI
SAP AG
SCM300
8-5
Overview of Production Types (Integration)

SFC
PI
REM
Warehouse Management System (WM)
Transport and packaging units (HUs)
Integration with QM
Inspection during production
Inspection for goods receipt
X
X
X
X
X
X
Business Information Warehouse (SAP BW)

(or LIS)
SAP AG 2002
SAP AG
SCM300
8-6
Information about Follow-Up Courses (1)

Courses on the production types
SCM310 (Production Orders)
SCM320 (Repetitive Manufacturing)
SCM340 (Process Manufacturing)
SCM350 (KANBAN)
Follow-up courses in the production environment

Courses of Product Lifecycle Management (mySAP PLM)
PLM110 (Basic Data Part 1)
PLM111 (Basic Data Part 2)
PLM115 (Basic Data for Process Manufacturing)
PLM130 (Classification System)
PLM140, PLM143, PLM146 (Variant Configuration)
LO720 (QM in Discrete and Repetitive Manufacturing)
LO721 (QM in Process Industries)
SAP AG 2003
For a complete overview of all courses offered, refer to the SAP Curriculum Plan.
You can easily find this information in SAPNet.
SAP AG
SCM300
8-7

Follow-up courses in the production environment (Cont.)
Further courses of Supply Chain Management (mySAP SCM)
Manufacturing
SCM344 (Process Management)
SCM360 (Capacity Planning)
LO955 (Batch Management)
External Procurement
SCM500 (Processes in Procurement)
LO510 (Inventory Management)
Logistics Execution
LO530 (Basic Processes in Warehouse Management)
SAP AG 2003
SAP AG
SCM300
8-8

Follow-up courses in the production environment (Cont.)
From the Business Intelligence (mySAP BI) solution
BW200 (Business Information Warehouse - Overview)
From the mySAP Financials solution
AC505 (Product Cost Planning)
AC510 (Cost Object Controlling for Products)
AC515 (Cost Object Controlling for Sales Orders)
SAP AG 2003
SAP AG
SCM300
8-9
Information on the Internet (1)

SAP Help Portal
http://help.sap.com/
SAP Service Marketplace

http://service.sap.com/
mySAP Supply Chain Management

http://www.sap.com/scm/
SAP Educational Services

http:// www.sap.com/education/
Internet Demo and Evaluation System

http:// www.sap.com/ides/
SAP Shop
http:// www.sap.com/shop/
SAP AG 2003
SAP AG
SCM300
8-10
Information on the Internet (2)

Software partners
http://www.sap.com/partners/software/
SCM interfaces:
http://()/software/integration-opportunities/
interface-certification/scm/
() PI-PCS (Process control systems PI):
http://()/scm/pi-pcs.asp
() PP-CC2 (Process control systems PP):
http://()/scm/pdc-cc2.asp
() PP-PDC (Process control systems PP):
http://()/scm/pp-pdc.asp
QM-IDI (Laboratory information systems QM):
http://()/software/integration-opportunities
/interface-certification/plm/qm-idi.asp
ArchiveLink (Archiving products BC):
http://()/software/integration-opportunities/
interface-certification/technology/bc-al.asp
SAP AG 2002
SAP AG
SCM300
8-11
References (1)
Books
See SAP Shop under Global SAP
Knowledge Shop
SAP AG 2002
SAP AG
SCM300
8-12
References (2)
Participant handbook for SCM300
(as course basis)
Online system documentation (CD-ROM)

Model company IDES (brochure)
SAP AG 2002
SAP AG
SCM300
8-13
SAP AG
SCM300
8-14
Kanban
Contents:
Kanban principle
Mapping the principle to the system
Supply areas
Production supply using control cycles
Procurement triggering
Goods receipt
Special type: event-driven kanban
Summary
SAP AG 2002
SAP AG
SCM300
7-1
Kanban: Unit Objectives
At the conclusion of this unit, you will be able to:

Explain the characteristics of the kanban principle
Describe the main steps of kanban processing
List the main functions of the kanban principle
SAP AG 2002
SAP AG
SCM300
7-2
Course Overview
Introduction
with Process Orders
6
77
8
Kanban
Summary
SAP AG 2002
SAP AG
SCM300
7-3
Main Business Scenario
A characteristic of your companys production is a

relatively constant consumption of materials.
For this reason, you want to handle the material flow
to the work centers in production of your company in
an event-driven manner.
You organize replenishment via stock transfers,
external procurement, and in-house production using
the mySAP SCM kanban functions.
SAP AG 2002
SAP AG
SCM300
7-4
Kanban Principle
Demand source
Supply source
Full
l
Ful
Material
l
Ful
Empty
Kanban = card
SAP AG 2002
In KANBAN, material flow is organized using containers, which are kept directly at the appropriate
work centers in production. Each contains the quantity of material that work center personnel need for a
certain period of time. As soon as a container is emptied at the demand source, replenishment is
initiated. The supply source for the required material can be another place in the production, an
external supplier or a warehouse. The demand source can use material from other containers until the
actual container returns to full.
The aim is for the replenishment process to be controlled from production itself, and to reduce the
manual tasks required of personnel as much as possible. This self-management process and the fact that
replenishment elements are created close to the time they are actually consumed means that stocks are
reduced and lead times shortened (replenishment is only triggered when a material is actually required
and not before).
Basically, in KANBAN, material is provided in production exactly where it is required. It remains there,
in small material buffers, ready for use. Thus, material staging does not need to be planned. Instead,
material that is consumed is replenished immediately using KANBAN.
A further advantage of KANBAN together with the SAP R/3 System is that replenishment data is
transmitted to a great extent automatically. That is, scanning the barcode on a Kanban card suffices to
transmit the data needed for procurement and to post the goods receipt upon receipt of the material.
SAP AG
SCM300
7-5
Kanban: Characteristics
Features of R/3 kanban processing
Pull production supported by the graphical kanban board
Material flow organized using containers:
Setting to Empty triggers procurement in the system
Setting to Full posts the goods receipt in the system
Master data in the control cycle guarantees self-management

of the production process (JIT call), therefore, material staging
is not planned
Minimization of the manual posting effort and administrative effort
in the system
Lean Manufacturing: process optimization with more employee
responsibility
SAP AG 2002
SAP AG
SCM300
7-6
Using Kanban in Production

Requirements
Settlement
Resource
planning
8
Goods receipt
l
Ful
Confirmation,
WIP determination
l
Ful
Availability
check
Printing
papers
Material
staging
using kanban
Production
execution
SAP AG 2002
In the general production process, the kanban principle is used within material staging.
SAP AG
SCM300
7-7
Master Data: Supply Area
Supply area 3
E
Supply area 2
D
C
Supply area 1
B
Production
Assign storage location
SA
Assign person responsible
Unloading point for ext. procurement
Where should which material be staged?

Which supply areas are necessary?
SAP AG 2002
Structure and organization of production are important when introducing KANBAN. With KANBAN,
material is staged directly in production in specific areas, known as supply areas. A supply area can be
used by one or more work centers. The supply areas act as a buffer for the necessary materials (for
example, on shelves or in marked-out areas on the floor).
The supply areas established for the shop floor are defined in the SAP R/3 System in the KANBAN
menu. In the definition, the supply area is assigned the following objects:
The supply area is a data object used to organize material flow for KANBAN, but is not an inventory
management object. Therefore, storage locations are assigned to the supply areas. Inventory
management (which is relevant, for example, for posting goods receipts) therefore takes place at the
storage location to which the supply area is assigned.
Another significant organizational prerequisite is that you create a person responsible per supply area.
If a responsible person is assigned to a supply area, this defines who is responsible at the demand source
for material processing and for monitoring stocks at the supply area. If in in-house production, a person
responsible is maintained in the control cycle, this defines who is responsible at the supply source for
replenishment, that is, for material provision and, if necessary, for delivery to the demand source. The
person responsible is assigned as an MRP controller to the supply area in Customizing for MRP.
Unloading point: Often in external procurement, the supplier does not deliver the material directly to
the supply area in production but to a certain unloading point. From here, the kanbans are transported to
the supply area. The unloading point defines where the supplier has to deliver the material (for example,
gate 1). It is printed on the kanban card or even transferred to the summarized JIT call.
Delivery address: You can maintain an address in the supply area. When creating a control cycle, this
address is transferred to the delivery address of the control cycle.
SAP AG
SCM300
7-8
Master Data: Kanban Control Cycle
Demand source
Supply source
Supply area
Delivery
Control cycle
Person
responsible
Vendor
Issuing plant
Warehouse
Requirement
The control cycle contains the data required for replenishing a

material at a supply area (for example, number of kanbans,
quantity per kanban, supply source, type of replenishment).
SAP AG 2002
To control the relationship between supply and demand source, you define a control cycle. The control
cycle defines:
The demand source (supply area)
The replenishment strategy (for example, replenishment via purchase order for external
procurement or via run schedule quantities for in-house production or via stock transfer reservations
for stock transfer)
The supply source (supplier (vendor) or issuing plant for external procurement, the responsible
person for in-house production, the storage location for stock transfer)
The number of containers (kanbans) circulating between the demand and the supply source
The quantity per container
The delivery address (when accessing the function, the plant address is automatically maintained).
Here, you can also enter detailed information required for the supply area. You can print this data
on a kanban, for example).
Printing parameters for printing the kanban
The pallet position: More precise specification of the material's position (for example, a specific
shelf section) in the supply area. The pallet position can also be printed on the kanban.
Parameters for the automatic kanban calculation
You can also delete or lock kanbans in the control cycle. You lock a kanban, for example, if it is not
to be used for a certain time as consumption within the control cycle has fallen.
SAP AG
SCM300
7-9
Production Supply Using Control Cycles
Control cycle
D 75
75
H 10
10
SA_Preprod. 1
SA_Assembly 1
SA_Assembly 2
G 75
75
E 10
10
F 25
25
75
B 10
10
E 25
25
Vendor 1
SA_Preprod. 2
Work centers in
supply areas
Materials
SAP AG 2002
A 75
Central
warehouse
E 75
75
C 10
10
Container
with
10 pieces
Vendor 2
When using KANBAN, warehouses or vendors are linked to the supply areas that are assigned to the
relevant producion storage locations using control cycles.
Since the link to material staging can also take place via in-house production within KANBAN, preassembly and final assembly can, for example, be linked using KANBAN.
SAP AG
SCM300
7-10
Setting the Kanban to Empty = Triggering

Replenishment
Production process
l
Ful
Supply area
Empty
Supply
source
Status to Empty
Ext. procurement
Stock transfer
Replenishment is
triggered
automatically:
Order
Purch.
Purch. order ...
In-house production
SAP AG 2002
The progress of production in KANBAN is controlled by setting the kanban to the appropriate status.
Usually, only the two statuses, Empty and Full are used.
If the demand source sets the status to Empty, the system creates a replenishment element, instructing
the material supply source to deliver.
Emptying a kanban does not lead to a goods issue posting! In KANBAN, goods issues are typically
backflushed when an order is confirmed (or during manual goods issue posting of an order).
You can set the status to Empty by scanning a bar code on the kanban card. To do this, you scan the bar
code using a standard bar code scanner in the transaction Kanban Signal -> Bar Code. You can also set
the status to Empty using transaction Manual Kanban Signal or in the kanban board.
SAP AG
SCM300
7-11
Setting Kanban to Full = Posting Goods Receipt
Production process
l
Ful
Goods receipt
is posted automatically
Supply area
Full
Status to Full
Supply
source
Full KANBAN
Ext. procurement
Stock transfer
In-house production
SAP AG 2002
If the demand source sets the status to Full, the system automatically posts the goods receipt for the
material with reference to the procurement element.
You can set the status to Full by scanning a bar code on the kanban card. To do this, you scan the bar
code using a standard bar code scanner in the transaction Kanban Signal -> Bar Code. You can also set
the status to Full using transaction Manual Kanban Signal or in the kanban board.
SAP AG
SCM300
7-12
Requesting Additional Kanban Containers
Event
Event
Create kanban with status Empty and a

predefined quantity
Supply source
receives request
to deliver a kanban
Empty
Full
Material delivery:
demand source
sets status to Full
Demand source sets

status back to Empty:
kanban is deleted
SAP AG 2002
Use: In event-driven KANBANB, material staging is not based on a predefined number of kanbans or a
predefined kanban quantity (as in classic KANBAN). Instead, it is based on actual material consumption.
The material is not continually provided and replenished at a supply area. It is only replenished when
specifically requested. This procedure is especially useful if, for example, requirements for a particular
material are irregular, but you still want to use the benefits of KANBAN to carry out replenishment with
a simplified procedure.
Prerequisite: You must maintain separate control cycles for event-driven KANBAN. In event-driven
KANBAN, you can also use all the functions available in the KANBAN component.
Activities:
1. With the transaction Event-driven KANBAN, or the pull list, one or more kanbans are created. The
quantity or the number of kanbans depends on the required quantity and the specifications in the
control cycle. A replenishment element is created for each kanban created depending on the strategy.
2. Replenishment is carried out.
3. The kanban is set to Full and, if necessary, a goods receipt is posted.
4. When you set the kanban to Empty (for example, using either a bar code or the kanban board), the
system deletes the kanban.
5. A new kanban is not created again until you retrigger the kanban signal using the Event-Driven
Kanban function.
SAP AG
SCM300
7-13
Plan-Controlled Production vs Kanban
Focus of the
Kanban procedure
Focus of
plan-controlled production
- Planning instrument
- Short-term replenishment
control
- Short- to long-term
requirements forecast
- Demand-based
- Date-oriented
- Event-driven
- BOM explosion
- Simple method of organization
- Lot-size calculation /
optimization
- Replenishment quantity =
current requirements
- Centralized planning and

control
- Delivery directly to demand

source
- Centralized stock
responsibility
- Decentralized stock and

procurement responsibility
- Push principle
- Pull principle
SAP AG 2002
Advantages of KANBAN:
KANBAN is a simple form of production control: the production controls replenishment itself, to a
large extent.
Manual posting effort is kept to a minimum.
The material is available directly on the shop floor. This saves the organizational effort required to
stage the material.
The production quantities correspond to actual requirements. This self-management process and the
fact that replenishment elements are created close to the time they are actually consumed means that
stocks are reduced and lead times shortened (replenishment is only triggered when a material is
actually required and not before).
SAP AG
SCM300
7-14
Kanban: Summary
The kanban procedure enables material staging in

production without external control effort.
Material supply sources can be embedded in the self
regulatingkanban control cycle, providing the material
via in-house production, external procurement, or stock
transfer.
SAP AG 2002
SAP AG
SCM300
7-15
SAP AG
SCM300
7-16
Contents:
Application areas and characteristics
Processes
Mapping repetitive manufacturing onto the system
Master Data
Integration with planning (R/3 or APO)
Planning Line Loading
Material staging
Backflush and Goods Receipt
Special cases
Settlement
Information Systems
Summary
SAP AG 2003
SAP AG
SCM300
6-1
Repetitive Manufacturing: Unit Objectives

Explain the characteristics of period-based repetitive
manufacturing
Describe the main steps of repetitive manufacturing
Explain the main functions within repetitive
manufacturing
SAP AG 2002
SAP AG
SCM300
6-2
Course Overview
Introduction
with Process Orders
66
7
8
Repetitive
Manufacturing
Kanban
Summary
SAP AG 2002
SAP AG
SCM300
6-3

Your company produces products in large numbers. The
production is quantity-based and period-based.
You belong to the team that is implementing repetitive
manufacturing for quantity-based and period-based production
during the mySAP SCM implementation. Before implementation,
you must create the whole process chain for in-house
production, which will allow your company to organize, control,
and execute production based on the mySAP SCM functions.
Important stages of repetitive manufacturing are the
dispatching of quantities at the production lines, material staging
of the components, backflush of quantities produced, and
settlement of the costs collector.
These functions are integrated with other areas in your company,
such as controlling and warehouse management. Therefore, you
must consider the many integration relationships when
implementing repetitive manufacturing.
SAP AG 2002
SAP AG
SCM300
6-4
Application Areas
Typical
Typical industries
industries
PRODUCT COMPLEXITY
Mechanical engineering,
consumer products, electronics,
and more
Takt-based
Takt-based flow
flow
manufacmanufacturing
turing
Period-based
production
Mass production
PRODUCT STABILITY
SAP AG 2002
Repetitive manufacturing is mainly used for production with high product stability and high repetition
rate as well as low product complexity.
SAP AG
SCM300
6-5
Period-Based Repetitive Manufacturing:

Characteristics (1)
Order type: - without order Quantity- and period-based production
Integration of Repetitive Manufacturing

Master Data Management
Sales
Production or Material Requirements Planning
Capacity Requirements Planning
Materials Management
Logistics Execution
Quality Management
Controlling
Business Information Warehouse
Logistics Information System
(mySAP PLM)
(mySAP CRM, SAP R/3-SD)
(SAP R/3, SAP APO)
(SAP R/3, SAP APO)
(SAP R/3 IM)
(SAP R/3 WM)
(SAP R/3 QM)
(SAP R/3 CO)
(SAP BW) or
(SAP R/3 LIS)
SAP AG 2002
SAP AG
SCM300
6-6

Characteristics (2)
Basic Functions of Repetitive Manufacturing
Scheduling
Calculation and monitoring of capacity requirements
Costing
Availability checks
Printing of dispatch list and operational method sheet
Material staging (without reservations!)
Goods issue: component backflushing by default
Goods receipt: closely linked to final confirmation
(quantities and activities)
Period-end closing (process cost allocation, overhead rates,
WIP determination, variance calculation,
cost collector settlement)
SAP AG 2002
Apart from the basic functions, repetitive manufacturing offers several other functions (see next slide).
The course SCM320 covers a selection of the most important of these functions in detail.
SAP AG
SCM300
6-7

Characteristics (3)
Enhanced Functions of Repetitive Manufacturing
Printing of operational method sheet and dispatch list with
Microsoft Office link
Reporting point backflush (milestone)
Action control
Mapping of takting to the system using takt-based flow
manufacturing
SAP AG 2002
There is an MS Office link for the printing of shop papers and quantity papers (no shop floor papers!):
MS Word can be used to print operational method sheets and MS Excel for print dispatch lists.
Beside make-to-stock production, sales-order-oriented repetitive manufacturing is also supported.
This enables, for example, dealing with configurable materials.
To determine work in progress or to post component withdrawals timelier, you can use a reporting
point procedure (only make-to-stock).
With regard to configurable materials, action control enables the automatic triggering of actions (for
example, printing the component list).
The modelling of takts along with the sequence planning it involves is represented by a separate
function: takt-based flow manufacturing.
SAP AG
SCM300
6-8
Costing
Demand program
Material forecast
SD
Indep.reqmts
Sales
orders
Stock
Planned
orders
MRP
Rep. Manufacturing
B
A C D
E
Planned orders
(RSQ)
Manufacturing
Confirmation w. stock receipt

Settlement of cost collector
Integration
with QM
Inventory
management
Capacity requirements planning
Application-wide processes
Integration
with PDC
SAP AG 2003
The complex process chain from independent requirements to the goods issue of the finished product is
reproduced in a lean version in repetitive manufacturing.
Typical features are, for example, the use of planned orders for production (Planned orders are not
converted to production orders. They only obtain the new order type run schedule quantity (RSQ)
when the production version is assigned.) as well as the confirmation of the finished product with
simultaneous backflushing of the components used.
SAP AG
SCM300
6-9
Master Data for Repetitive Manufacturing

Repetitive mfg indicator and REM profile
Material
Production version
BOM
BOM
Material BOM
Production line as work center

(or as an exception, as a line hierarchy)
Work center
Rate routing (or standard routing)

Routing
Routing
Usually one operation

Definition of production rate
(quantity per time)
SAP AG 2002
To allow a material for repetitive manufacturing, you set the Repetitive Mfg indicator in the material
master record (in the MRP4 view). This means you can use all the various production versions of this
material for repetitive manufacturing (that is, you can set the indicator Repetitive Mfg allowed for
version in the production version).
The BOM defines the planned material consumption for the components.
In the status/long text of the BOM item (Production storage location field), you can define the issue
storage location from which components are to be backflushed.
Production lines are usually created as simple work centers in SAP R/3. In the work center, you define
from when and to when the production line is available. The production line created as the work center
is entered in the production version in the Production line field. This same work center is specified in
the single operation of the routing. Production lines that have more than one work center can be
represented in a line hierarchy.
In repetitive manufacturing, the routing defines the production rate (quantity per time unit) used to
produce materials on production lines. The production quantities are scheduled according to the
production rate, and capacity requirements are calculated for this production quantity. The routing
therefore provides the basis for lead time scheduling. In repetitive manufacturing, work centers are not
usually used to describe the actual operations to be performed. Therefore, routings in repetitive
manufacturing often only have one operation. The total production rate of the line is specified in this
operation. It defines how many materials per time unit can be produced on this production line. In the
single operation, you enter the production line as the work center.
Two different routings are available in SAP R/3: standard routings and rate routings. Rate routings
are specially designed for the needs of repetitive manufacturers and can be used instead of standard
routings for organizational purposes. You can, however, also use standard routings for repetitive
manufacturing.
SAP AG
SCM300
6-10
Demo Scenario: PC Production in the Dresden Plant

Sales orders
SD
Finished goods
warehouse 0002
Confirmation
Line T-L1##
Sold-to party
PC final assembly
Stor. location PL01

Confirmation
Line T-L3##
Assembly production
Stor. location PL03
Stor. location
PL04
Material staging by stock transfer
Vendors
Material
warehouse 0001
Plant 1200 (Dresden)
SAP AG 2002
Demonstration example for repetitive manufacturing: In plant 1200, PCs and PC assemblies are
produced.
The most important material numbers used for the demo and exercises in the training system are:
T-F10##
PC Maxitec R-375 (Final assembly with make-to-order production)
T-B10##
Motherboard M-375 (Assembly production to stock)
T-B20##
Cable with earthed plug
T-B30##
Keyboard
T-B40##
TFT Monitor
T-B50##
Diskette drive
T-B60##
Harddisk
T-B70##
PC case
T-B80##
CD ROM drive
T-B90##
Modem
T-T6##
Memory (for pull list: direct transfer posting)
T-TE##
Processor M-375
Production lines:
T-L1##
Production line 1 (for production T-F10##)
T-L3##
Production line 3 (for production T-B10##)
SAP AG
SCM300
6-11
Repetitive Manufacturing: Process Flow
Settlement by product
cost collector
Requirements
10
Planning of line
loading and
capacity check
9
Final confirmation
and stock receipt
with component
backflushing
4
WIP determination
(optional with
reporting point
backflush)
Availability
check
Printing of
operational
method sheet
Printing of
dispatch list
Material staging
Production execution
SAP AG 2002
Despite the lean implementation of basic functions, a number of activities are possible in repetitive
manufacturing.
The main aspects are the planning of line loading and the (usually simultaneous) capacity monitoring.
You can, for example, use the planning table (multi-level access) to check the availability of assemblies
for the finished product.
The worker gets the information he or she needs from the operational method sheet (description of the
operation if necessary) and from the dispatch list (materials, quantities, and dates).
Material staging is done by stock transfers or KANBAN provision to the line.
During production, reporting point backflush can be used to determine work in progress.
After order processing, the finished product is confirmed to stock. This means both the goods receipt as
well as the component backflush is posted.
Costs are settled by means of a product cost colletor.
SAP AG
SCM300
6-12
Integration with Planning (R/3 or APO)
APO
R/3
Demand Planning (DP)
Flexible Planning
Demand
Management
Plnd indep.reqmt
Plnd indep.reqmt
Consumption
Sales (SD)
Sales order
Production Planning (PP)

MRP
Sales order
Supply Network Planning (SNP)

Production Planning (PP/DS)
Planned order
Repetitive
Manufacturing
Planned order
(RSQ)
Purchasing Purchase requisition

Purchase order
(MM)
Stock transp. requisition
Stock transport order
Planned order or
run schedule
quantity
Assign
Planned
order to line
Purchase order
Conversion

Deployment
SAP AG 2003
The mySAP SCM solution offers two general solution methods for integrating planning and production: planning
with the functions of the APO component
and planning with the functions of the R/3 component.
Production preparation, execution,and control is always carried out with the functions of the SAP R/3
component, but also depending on the production type. These functions include costing, material staging,
confirmation, goods movements, and settlement.
Other functions (scheduling, availability check, machine commitment, for example) can be performed using either
of the SAP components.
Between the two SAP components, the master data and transaction data (planned orders, production orders,
purchase requisitions, purchase orders, stocks, and so on) is usually exchanged via the Core Interface (CIF).
Specific events lead to the transfer of data from R/3 to APO (release, confirmation, goods receipt) and vice versa.
Sales orders are usually entered in R/3 and transferred from there to APO.
Planned orders can be generated in material requirements planning in R/3 (MRP) or in APO with the
following:
a) Supply Network Planning in APO (SNP)
This component achieves cross-plant planning in a long-term planning horizon across the whole supply and
procurement chain. Stock transport requisitions (distribution), planned orders (in-house production), and
purchase requisitions (external procurement) are generated for each production plant.
b) Production Planning and Detailed Scheduling APO (PP/DS)
This component generates planned orders and purchase requisitions in a defined, short-term time period
(production horizon) in the production plant.
What distinguishes repetitive manufacturing is that planned orders with order type RSQ (run schedule quantity)
are used for production, which means that planned orders are not converted. Only their status changes when they
are assigned to the production line.
SAP AG
SCM300
6-13
Basic Planning Strategies for Repetitive

Manufacturing
Make-to-stock production
Sales order
SD
Demand
Management
Warehouse
stock
Production line
Make-to-order production (sales order-based production)

Sales order
Sales order
Sales order
stock
SD
Production line
Configurable materials
also possible
SAP AG 2002
Make-to-stock production: You can use repetitive/flow manufacturing for pure make-to-stock
production. This means you produce products with no direct reference to sales orders. The planned
independent requirements from demand management are used as the basis for planning. Depending on
your planning strategy, the planned independent requirements from demand management can be
consumed by sales orders.
The same product is produced repeatedly over a substantial period of time. The product is not produced
in lots. Instead, a total quantity is produced in a certain period at a certain rate. Products pass through
production in a relatively steady flow.
Sales orders are filled from warehouse stock.
Make-to-order production (sales order-based production): You can use repetitive/flow
manufacturing for make-to-order production. This means you produce products with direct reference to
the sales orders. The products are stored in the sales order stock. Sales orders can be processed
separately. A planned order is created with direct reference to the sales order. Production is therefore
controlled using sales orders. The quantities produced cannot be swapped between the individual sales
orders. The produced quantities are stored specifically for the individual sales order (sales order stock)
and not in the anonymous warehouse stock. If you use variant configuration, you can plan and
manufacture configurable materials using make-to-order repetitive manufacturing.
Sales orders are filled from sales order stock.
Prerequisite: You use the strategy group in the material master record to control whether you want to
use make-to-stock or make-to-order repetitive manufacturing.
SAP AG
SCM300
6-14
Planning Line Loading: Overview
PlOrd.
PlOrd.
PlOrd.
PlOrd.
PlOrd.
Planned order
assignment using...
Optionally
R/3 planning table/
APO product
planning table
Alternative selection
(automatically)
Quota arrangement
(automatically)
SAP AG 2003
You can use any of the following three options to plan the line loading (dispatching of planned orders on
the production line):
Alternative selection:
- If only one valid production version, that is, for example, only one line, is available, you can set
the alternative selection indicator 2 in the material master (MRP4 view). Planned orders are then
automatically assigned to this line. If several lines are available, the system assigns the first line it
finds. Since this reduces your freedom when planning the line loading, we recommend using this
option only if there is only one valid production version or production line.
Quota arrangement:
- If several production lines are available but one is preferred (for example, it is always to reach full
capacity load), you can use quota arrangements to distribute the remaining quantity to the
alternative lines. To do so, you maintain the Quota arr. usage field in the MRP2 view in the
material master and trigger quota maintenance in the MRP menu under Master Data. We
recommend using quota arrangements only for rough-cut planning with additional postprocessing
in the planning table.
R/3 planning table/APO product planning table:
- As opposed to the other methods, quantities are dispatched manually or semiautomatically on the
available lines when planned orders are assigned in the R/3 planning table or the APO planning
table.
SAP AG
SCM300
6-15
Actions for Manual Planning of Line Loading

(Example: R/3)
Capacity data
Line 1
Requirement
Available
Line 2
Requirement
Available
%
h
h
%
h
h
Material data
Material A
Requirements
Available qty
Production line 1
Production line 2
Not yet assigned
PC
PC
PC
PC
PC
Due
04.09.
0
0
16
0
0
16
100
16
16
0
0
16
Due
04.09.
200
100
200
100
200
05.09.
50
8
16
150
24
16
Monitoring:
Capacity
utilization
05.09.
Activitiy:
Assign
lines
50
150
0
SAP AG 2003
The planner uses the R/3 planning table to process the master plan. He or she can check the production
quantities, change them if required, and create new production quantities (planned orders). He or she can
determine the capacity utilization of the production line as well as the availability situation of the
products. In addition, he or she can display the source of the capacity requirements (pegged capacity) by
double-clicking the capacity requirements.
Since planning in repetitive manufacturing is carried out in a quantity- and period-based manner, the
display in the planning table is quantity- and period-based. You can choose any planning period (shift,
day, week, month, planning calendar period).
In the assignment mode, the planner can assign the production quantities (planned orders) to a
production version and thus to a production line. If this was already done in MRP, he or she can also
change existing assignments. Planned orders that are assigned manually to a line obtain order type PE
(run schedule quantity) and are usually fixed. By means of the repetitive manufacturing profile, the
fixing behavior can be limited to the planning time fence per material or deactivated in general.
In addition, you can choose Materials Overview to go to a separate material overview displaying the
exception message and range of coverage situation.
Changes you make in the planning table are not written to the database unless you save them.
In the SAP APO System, similar functions are available in the product planning table. It is an
enhancement of the R/3 planning table and serves as the manual planning tool in SAP APO according to
the enhanced APO planning functions.
The graphic illustrates the general appearance of the R/3 planning tool. In an illustration of the APO
product planning table, the terms Material and Line/Capacity would have to be replaced by Product
and Resource.
SAP AG
SCM300
6-16
Material Staging Options

Pull list:
Staging from storage
location level
MM-IM Warehouse Mgmt

Inventory Management
List of kanbans to be moved

Pull list:
event-driven kanban
Kanban control
Pull list:
List of transfer requirements
Transfer orders
LE-WM Warehouse Mgmt

System
Material is ordered
Release order parts

Pick parts
Prod. order
Order-based creation of
transfer requirements
Container is ordered
Crate parts
SAP AG 2002
The SAP R/3 System has various procedures for controlling material staging.
a) Warehouse management with the component MM-IM (Inventory Management)
b) Replenishment control with the component KANBAN
c) Handling of storage bins and replenishment control with the component LE-WM
(Warehouse Management)
The pull list enables processing by means of transfer postings on the storage location level, supports
event-driven KANBAN, and enables integrating Warehouse Management (WM).
Since pick part processing is order-based, the Warehouse Management System prefers to use release
order parts for non order-based repetitive manufacturing:
Release order parts are ordered manually. Here the required quantity is calculated from the target
quantity of the components of the selected orders that have been released.
Both pick part processing and crate part processing can be used when the typical repetitive
manufacturing functions (for example, the planning table) are used by means of production orders.
SAP AG
SCM300
6-17
Backflush and Goods Receipt
Upload PDC interface
Manual entry
Product cost
collector
Goods receipt
of
finished
products
Saving backflushes
Standard actions using backflushing data
Goods issue
of components
Update statistics
Production
costs
Reduction of
PL Ord.
SAP AG 2003
The BAPI interface can be used for backflushing from PDC systems. A separate transaction (MFBF)
is available for manual entry of backflushes in the SAP R/3 System.
By posting the goods receipt for the finished products during backflushing a number of different actions
are performed by default (controlled by the repetitive manufacturing profile):
Goods issue posting for the components used (usually by backflushing)
Statistics update in the Logistics Information System (LIS) or the Business Information Warehouse
(BW)
Reduction of run schedule quantities/planned orders and the connected capacity requirements on
the production lines
Posting of production costs incurred (material costs, production activities, overhead costs) to a
product cost collector
Data entry document creation
Other optional actions (see Details in the REM backflush transaction) include the following:
consideration of setup costs for lot-size independent material quantities, posting of
component/assembly scrap, collective entry for different materials of a line, archiving of backflush
documents, pure goods issue backflush or pure activity backflush (more/less activity), reporting
point backflush, decoupled backflushing processes, aggregation as well as various postprocessing
and reversal options. In addition, sales-order based production enables backflushing with reference
to the sales order.
SAP AG
SCM300
6-18
Reporting Point Backflush

Example:
Production line 1
Work
center 1-1
Operation 10
Work
center 1-2
Work
center 1-3
Receiving storage
location
Work
center 1-4
Goods receipt
Operation 20 Operation 30 Operation 40
Goods
issues
Issuing storage location
Issuing storage location
Report. point backflush Report. point backflush
Report. point backflush with GR
SAP AG 2002
Scenario: A long production line with longer lead time exists. However, the goods issues for the first
components at work centers 1-1 and 1-2 are to be posted timely and not by backflushing with final
confirmation at the end of the production line.
During final confirmation, all components used along the production line are usually backflushed. If
there are long lead times, the goods issues for the components may be posted much later in the system
than after they have actually been withdrawn physically.
In this case, it makes sense to use the reporting point backflush to timelier post the withdrawal of
components (and production activities) after operations already completed. The above example contains
the three reporting points connected with operations 10 (work center 1-1), 20 (work center 1-2), and 40
(work center 1-4).
Prerequisite: In addition to having activated reporting point backflush in the repetitive
manufacturing profile, the relevant work centers must exist, and the operations must be available in the
routing and defined as reporting points by means of the control key.
Depending on the application, optional or required reporting point backflush is possible and makes
sense.
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Action Control
Example: Printing
the component list
for configurable material
Action control
Printing component list
for planned order
Components
available?
Issuing storage location 1
SAP AG 2002
The Actions in planned order function provides a solution for an interface to external assembly control
systems. This is used to transfer progress at the assembly line and other dependent actions to the SAP
System using a standard interface or an adjusted interface.
The following standard functions are available: BEMA BOM explosion with availability check,
BFPL Backflush planned order, BOME BOM explosion, COPD Change planned order data (e.g.
sequence number, order quantity), DLPL Delete planned order, FIKM Firm planned order
components, FIRM Firm planned order header, MAAV Availability check with BOM explosion if
necessary, NEMA Availability check without BOM explosion, PRNT Print component list, RSMA
Reset material availability check, SCHE Scheduling planned orders, Execution of custer-defined
actions, ZZXX Customer action.
You can use this function to execute one or more actions for a series of planned order simultaneously.
Without this function, you would have to execute these actions individually per planned order online.
Furthermore, action control defines which actions are allowed and the sequence in which the actions
are to be carried out The date and the time of the last action are then saved in the planned order.
Executing actions: To execute actions, you must maintain a report that transfers the customer-specific
data for the action. You can use the Execute Action transaction in the MRP menu as an example.
To print the planned order component list, the system uses the printer defined in Customizing for MRP
in the activity Procurement Proposals -> Planned Orders -> Define Layout for Component List.
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Cost Debit / Credit (Product-Related COC)

Debit
product cost collector
Material cost
Production costs
Overhead costs to material
Costing document
from material costing
Product cost collector

M 1000 100-100
E 1421 4230
1310
G Surcharge, raw material
12,000
25,000
8,500
E ... 25.000
12
11
1
10
2
9
3
8
4
7 6 5
Material
withdrawal
Processing
Processing
Confirmation
Goods
receipt
Settlement
Settlement
Credit
Credit product
product cost
cost collector
collector
GR valuation control
Settlement profile
Settlement receiver
Material stock account (quantity * standard/price acc. to valuation variant)

Plant activity account (quantity * price acc. to valuation variant)
SAP AG 2002
Actual costs at
time of
settlement
Distribution rule
Settlement parameters
Settlement account (acc. to
allocation structure)
Plant activity account
Difference account
Settlement in repetitive manufacturing is always period-based based on the costs of the product cost
collector (product-related cost object controlling).
When executing confirmations in repetitive manufacturing, the material costs for the components and
the production activities (only if a material cost estimate with price update was carried out in advance)
are automatically posted to the product costs collector during backflushing. The product cost collector is
debited with the material costs and production activities (in the repetitive manufacturing profile, you can
define whether activity backflush is to be made with reference to the material cost estimate or the
version-specific cost estimate).
Morevover, the product cost collector is credited with the valuation price (materials controlled with
standard price) or with the moving average price of the assembly (materials controlled with the moving
average price).
Overheads are not determined with reference to an operation (that is, not for each goods movement or
activity confirmation). Instead they are determined periodically during period-end closing in Controlling
by way of an overhead structure and are posted to the product cost collector. There is a separate
transaction in the Repetitive Manufacturing menu for this.
It is possible that components different to those planned are used in production or that the overhead cost
rates change. This results in variances in the product cost collector and settlement must be executed.
The aim of settlement is to completely credit the product cost collector. During settlement, the costs not
yet credited to the product cost collector are transferred; for a material that is valuated using the standard
price, the variant costs are posted to the price difference account.
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Integration with Controlling

Prerequisites for cost settlement:
Creating a product cost collector (either per material or also per
production version)
The posting of production activities must have been defined accordingly
in the REM profile. In addition, a material cost estimate with price update
must be made.
Besides the material cost estimate, version-specific preliminary costing is
possible if several production versions are used (can be activated in the
REM profile)
Carrying out cost settlement:
Debiting the product cost collector with the material costs, production
activities, and overhead costs incurred
Crediting the product cost collector to the stock account
Period-based variance calculation to price difference account
SAP AG 2002
Transaction codes for the above actions:

Create Product Cost Collector per Material [KKF6N], also per production version [KKF6M]
Material cost estimate [CK11N] with price update (marking and release) [CK24]
Preliminary cost estimate ([MF30] and [OPP3], REM profile)
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Repetitive Manufacturing: Information Systems

Basis
Order Information System
Planned orders
Controlling reports
CO objects of orders

(SAP BW) in mySAP BI
BW InfoCubes
Logistics Information System

(R/3 LIS) statistics
R/3 LIS Library
Reporting point overview
Backflush
SAP AG 2002
Repetitive manufacturing supports different evaluation methods. Beside the analyses via CO reports, a
data update is made in the Logistics Information System LIS by default (exception: planning data must
be updated manually or in a background job). A link to the Business Information Warehouse (BW)
also exists.
Evaluations based on orders are not supported since the processing is not order-related.
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Repetitive Manufacturing: Summary
The Repetitive Manufacturing application can be

used for period-based and quantity-based
production control.
The period quantities are planned as run schedule
quantities and assigned to the production lines.
The production is carried out without orders,
enabling simple production control.
The main tools for repetitive manufacturing are the
SAP R/3 planning table and the SAP APO product
planning table.
SAP AG 2002
SAP AG
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Exercises
Unit: Repetitive Manufacturing
Topic: Master Data
At the conclusion of these exercises, you will be able to:
Name the main master data for repetitive manufacturing
Explain what is special about the master data for repetitive
manufacturing
You work for a company that uses repetitive manufacturing to produce

PCs on two production lines.
You are a member of the SAP project team responsible for implementing
the functions of SAP SCM Repetitive Manufacturing.
You therefore first try to get a general overview of the basic master data
for repetitive manufacturing.
In particular, you look at the master data for the PC T-F10## (material
master, BOM, routing, and work center as well as the product cost
collector from Controlling).
1-1
First, get an overview of the menu structure for the repetitive manufacturing functions.
1-1-1 Which menu path takes you to the Repetitive Manufacturing menu?
______________________________________________________
1-1-2 Which transactions take you to Customizing for Repetitive Manufacturing?
______________________________________________________
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1-2
Name the basic Logistics master data for repetitive manufacturing.

____________________________________________________________
____________________________________________________________
____________________________________________________________
____________________________________________________________
1-3
In the Logistics folder in the R/3 menu, navigate to the material master of PC T-F10##
(## = your group number), MRP4 view, plant 1200.
Use the change mode (transaction MM02).
Name three material master settings that are specific to repetitive manufacturing:
____________________________________________________________
____________________________________________________________
____________________________________________________________
1-3-1 Display production version 0001. Check the consistency of the combination of
BOM and routing by choosing Check.
1-3-2 Which production line is entered in production version 0001?
______________________________________________________
1-3-3 Write down the group counter of the rate routing entered:
______________________________________________________
1-4
Check the material BOM for material T-F10##in the Logistics master data.
How many assemblies are on the hierarchy level directly below the finished product?
____________________________________________________________
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1-5
Display the rate routing for material F10##, plant 1200 in the Logistics master data.
1-5-1 How many different routings are displayed in the overview?
______________________________________________________
1-5-2 Select the first routing with group counter 1 and choose Operations.
What is special about the routing?
______________________________________________________
______________________________________________________
1-5-3 Name the work center involved and the production rate planned:
______________________________________________________
1-5-4 Exit the operation overview and go back to the rate routing overview.
Which work center belongs to group counter 2?
______________________________________________________
1-5-5 Write down the group counter number and compare it with exercise 1-3-3.
Note: You find the group counter number in the rate routing header data.
______________________________________________________
1-5-6 Does production version 0001 enable repetitive manufacturing with the two
routings? Give reasons.
______________________________________________________
______________________________________________________
1-6
In the Repetitive Manufacturing menu, check in the master data whether a product cost
collector already exists for material T-F10## in plant 1200. Note: To do so, you must
activate the field next to the material in the display transaction.
How many product cost collectors exist and how are they assigned?
____________________________________________________________
____________________________________________________________
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SAP AG
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Exercises
Topic: Integration with Production Planning and MRP in
the R/3 System
Create a quantity- and period-based master production schedule for
repetitive manufacturing
Interpret the results of a planning run in the stock/requirements list
In your plant 1200 in Dresden, you produce PCs. To achieve shorter

delivery times, you execute planning for assembly production (make-tostock strategy) together with the Planning without final assembly strategy
(make-to-order) for the finished product. This means that the last step of
final assembly is made only after a corresponding sales order was
received.
First, check whether the master data for materials T-F10## (PC) and TB10## (motherboard) and then create planned independent requirements.
2-1
Make sure that for the finished product T-F10## the correct settings have been made for
the strategy groups in the R/3 material master (plant 1200, MRP3 view): 50 Planning
without final assembly:
2-2
Is the material allowed for repetitive manufacturing?

Note:
Check the settings in the material master, MRP4 view and the release indicator (REM
allowed) in the relevant production versions.
2-3
Now create planned independent requirements for the finished product in your plant
1200:
Menu path:
Logistics Production Production Planning Demand Management Planned
Independent Requirements Create
Data:
Values:
Material
Plant
Planning period
SAP AG
T-F10##
1200
W
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6-29
In the next screen, choose the Sched. Lines tab. Create a planned independent
requirement with a requirements date for the next week (enter the calendar week in the
format week.year). The planned quantity should be 600 pieces. The quantity with
period indicator W is to be distributed over the individual working days. Therefore, set
the T (day format) indicator in the Splt column and confirm your entry.
Confirm warning messages that may be displayed and save your planned independent
requirements.
2-4
A sales order is received in Sales and Distribution. Now act as if you were the sales
employee and create the following sales order for the finished product T-F10##:
Menu path:
Logistics Sales and Distribution Sales Order Create
Data:
Values:
Order type
Sales organization
Distribution channel
Division
TA
1000
10
00
Sold-to party
Purch.order no.
Req.delivery date
Material
Quantity
1171
660##
Tuesday in two weeks
T-F10##
100 pieces
Save the sales order.

2-5
Plan the BOM structure of the PC in an MRP run:

Menu path:
Logistics Production MRP Planning Single-Item, Multi-Level
Use the following settings:
Material
Plant
Further settings
T-F10##
1200
2, 3, 1, 1, 1
Start the MRP run by choosing Enter twice.

Note: Multi-level planning ensures that secondary requirements are also created for
lower BOM hierarchy levels.
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2-6
Use the stock/requirements list for the finished product T-F10## in plant 1200 to
interpret the results:
Menu path:
Logistics Production MRP Evaluations Stock/Requirements List
Why is the plant stock for the material not included?
____________________________________________________________
2-7
Use the stock/requirements list for assembly T-B10## in plant 1200 to interpret the
results:
Menu path:
Logistics Production MRP Evaluations Stock/Requirements List
2-8
Double-click a planned order to display the detail data.

Why are there no pushbuttons to convert the planned order to a production order?
____________________________________________________________
____________________________________________________________
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SAP AG
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Exercises
Unit
Topic: Planning Line Loading in the R/3 System

Assign production quantities to production lines, taking capacity into
account. The production quantities either originate from MRP or they
were created manually and assigned to the production lines in the
planning table.
For the final assembly of your PC T-F10## and for the assembly of the
motherboard T-B10##, there is one production line respectively.
After the MRP and production planning in the previous exercise, the
basic dates as to quantities and periods have been determined.
As the production planner, assign the quantities to the relevant
production line.
3-1
Use the R/3 planning table for repetitive manufacturing from the repetitive
manufacturing planning menu to assign the planned orders to the production lines,
taking available capacities into account.
Call up the planning table, enter plant 1200 and select by production line. First, enter
the final assembly line T-L1##. Then choose Planning table.
Familiarize yourself with the period-based display of quantity and capacity data in the
planning table. Fields that are ready for input are shown in white, display fields are gray
as usual.
3-2
Double-click the quantity in the planning table section that is ready for input to display
the detail data for the planned order.
Which order type is assigned (F4 help)?
___________________________________________________________
3-3
Switch on the assignment mode for the quantities not yet assigned in the planning table
section that is ready for input by choosing the corresponding pushbutton.
Assign the quantity not yet assigned to the final assembly line.
Note: You cannot yet assign the planned orders for the planned quantities. The reason
for this is the planning strategy Planning without final assembly used. In this strategy,
final assembly is only allowed when sales orders are received. In this case, the planning
quantities only serve to create the relevant secondary requirements (which, however, are
planned using a make-to-stock strategy and therefore can be produced without a sales
order).
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3-4
Double-click the quantity you just assigned.

Which order type is now assigned (F4 help)?
____________________________________________________________
3-5
Look at the capacity data. Does the production line reach full capacity through the
planned order in the relevant time interval or is there still available capacity for further
orders in the same period?
____________________________________________________________
3-6
Save the line loading planning for the finished product and do exercise 3-1-3 for
assembly production (use line T-L3##, plant 1200 to access the planning table).
Why does the quantity that was already available at the beginning (plant stock) reduce
the oldest planned order?
____________________________________________________________
____________________________________________________________
Save the line loading planning for the assemblies.
Note:
Since there is only one production line for final assembly and one for assembly
production, you could also use alternative selection (material master, MRP4 view,
alternative selection indicator = 2) to plan line loading and, if required, check the
results in the planning table afterwards.
3-7
SAP AG
Optional: Create a planned order manually in the planning table. To do so, access the
planning table (line T-L3##, plant 1200) and use the function keys right at the bottom of
the planning table (not the scrollbar!) to scroll to the date Today + 1 month. Enter a
quantity of 300 pieces on line T-L3## and choose Enter to confirm.
You have manually created a planned order that can be used for production in this form.
Double-check this in the planned order details.
However, do not save.
SCM300
6-34
Exercises
Topic: Material Staging and Backflush
Use the pull list to stage components at your production line
Carry out quantity- and period-based backflushing in repetitive
manufacturing
For assembly production of motherboard T-B10##, you want to check for
missing components in the production storage location PL03 and use
stock transfer measures to stage missing components for a certain
production period.
After a production section has been completed, the quantity produced is
backflushed in the system.
Both task are within the supervisors or production schedulers area of
responsibility, whose roles you will be playing during the following
exercise.
4-1
Here, you use the pull list to execute the stock transfer from the central warehouse to the
production line. Perform component staging at assembly production line T-L3##.
4-1-1 Call up the pull list from the Repetitive Manufacturing menu. Staging is
performed for line T-L3## in plant 1200 for all requirements that are received
until Tuesday in two weeks. In this example, material staging is performed at
storage location level (note that the pull list supports further staging types:
using the Warehouse Management System or by event-driven KANBAN) by
stock transfer from the central warehouse 0001 to the production storage
location PL03.
Some steps in the pull list can be carried out automatically. Make the
following global settings:
Dialog control tab:
Field name
Value
Create replenishment proposals

Execute batch/stock determination
Stage replenishment proposals
Post replenishment elements
Print replenishment elements
Automatically
Automatically
In dialog
In dialog
In dialog
Execute the report and note the status bar.

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4-1-2 Go to the pull list. Interpret the results of the automated steps:
For which materials have planned requirements caused missing parts until
Tuesday in two weeks and how big are they?
______________________________________________________
4-1-3 For which storage location are there missing quantities?
______________________________________________________
4-1-4 At which storage location has the system found a replenishment quantity?
______________________________________________________
4-1-5 Can the complete missing quantity be covered from it?
______________________________________________________
4-1-6 You accept the system proposal. Trigger material staging for the relevant
components from warehouse 0001 to production storage location PL03 by
choosing Stage.
4-1-7 Caution! Material staging (here by means of stock transfer) is not carried out
until you save the pull list. If you need a printout of the list for the physical stock
transfer, we recommend printing it before you save (Pull list ### Print).
Save.
4-1-8 Check the stock transfer posting in the message log for the pull list (separate
transaction).
4-2
After a production unit that was predefined with regard to time and quantity and in
which you produced 90 motherboards on line T-L3## has been completed, you are to
backflush the quantity produced in the system.
4-2-1 First, create a second session of the planning table for repetitive manufacturing
(access by selection production line T-L3##, plant 1200).
4-2-2 In the first session, backflush 90 pieces of the motherboard material T-B10##
produced on line T-L3## in plant 1200. To do so, enter the data on the backflush
transaction screen. You can find it in the Backflush menu for repetitive
manufacturing. Then choose Post with correction.
4-2-3 From the following screen, explain which components of assembly T-B10##
were backflushed on the line but do not exit this display:
______________________________________________________
______________________________________________________
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______________________________________________________
4-2-4 Due to a technical defect of a machine, you needed 3.5 hours to produce 90
pieces instead of 3 hours as specified in the production rate in the routing (30
pieces per hour). To correct this, choose Actual activities.
On the following screen, select the only line offered and confirm.
On the next screen, choose the ProdTime field under Activities and overwrite the
planned value under Current to Confirm with the actual value of 3.5 h.
Choose Enter to confirm and save.
4-2-5 Go to the second session (planning table) and look at the quantities on the line
while pressing F5 (= Update). How have the planned quantities changed?
______________________________________________________
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SAP AG
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Solutions
Topic: Master Data
1-1
The Repetitive Manufacturing menu is in the Production folder.

1-1-1 On the SAP Easy Access screen, choose Logistic Production Repetitive
Manufacturing
The main master data is also in the Production folder:
SAP Easy Access screen: Logistic Production Master Data
1-1-2 SAP Easy Access screen: Tools Accelerated SAP Customizing Edit
Project
Transaction: SPRO
SAP Reference IMG Production Repetitive Manufacturing
To jump directly to Customizing for Repetitive Manufacturing, enter
transaction OPP3.
1-2
Logistics master data:

- Material master
- BOM
- Routing
- Work center (line)
1-3
SAP Easy Access screen: Logistics Production Master Data Material Master
Material Change Immediately
Material
View
Plant
T-F10##
MRP4
1200
The three settings are:

1) Repetitive manufacturing indicator
2) REM profile
3) Production version
1-3-1 On the production version detail view, choose Check in the top right-hand
corner. The consistency check has the following results:
BOM and routing exist. There are no error messages.
Exit the screen by choosing Cancel.
1-3-2 On the detail screen, you can find out that production version 0001 contains
production line T-L1##.
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1-3-3 The number varies. The group counter is also displayed on the production
version detail screen. You can find it under Planning data in the Rate-based
planning line.
1-4
SAP Easy Access screen: Logistics Production Master Data Bills of

Material Bill of Material Material BOM Display
Material
Plant
Usage
T-F10##
1200
1
The assembly indicator Asm is set for 3 BOM items.

1-5
SAP Easy Access screen: Logistics Production Master Data Routings

Routings Rate Routings Display
Material
Plant
Key date
T-F10##
1200
Today
1-5-1 Rate Routing Overview or Return

Two routings exist (two group counters).
1-5-2 In the routing overview, select the line with group counter 1 and choose
Operations.
What is special is the fact that there is only one
1-5-3 operation that contains the (entire) line T-L1## as the work center and the
production rate (30 pieces per hour).
1-5-4 Choose Goto Header overview.
In the routing overview, select the line with group counter 2 and choose
Operations.
The work center used in the second routing is T-L2##. (Note: we will not
produce anything on this work center in the following exercises.)
1-5-5 In the routing overview, select a line and choose Header. The group counter is
the same as that in exercise 1-3-3.
1-5-6 Production version 0001 only allows production according to the routing with
group counter 1 since the group counter is taken over to the production version
for a more detailed specification of the routing.
1-6
SAP Easy Access screen: Logistics Production Repetitive Manufacturing

Master Data Product Cost Collector Process Product Cost Collector
Material
Plant
T-F10##
1200
Select material T-F10## in the left part of the screen.

Two product cost collectors already exist. They are assigned to the material by means of
the production version (one product cost collector per production version).
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Solutions
Topic: Integration with Production Planning and MRP in
the R/3 System
2-1
Material Display Display Current
Material
Plant
T-F10##
1200
Strategy 50 (Planning without final assembly) has been defined.

2-2
Material Display Display Current
1) Check whether the Repetitive Manufacturing indicator has been set on the MRP4
view for both materials. It has been set.
2) Check the production version for both materials. Has the Release indicator been
set? Answer: Yes.
2-3
SAP Easy Access screen: Logistics Production Production Planning

Demand Management Planned Independent Requirements Create
For the procedure, see the exercise. No solution required.
2-4
SAP Easy Access screen: Logistics Sales and Distribution Sales Order
Create
2-5
SAP Easy Access screen: Logistics Production MRP Planning SingleItem, Multi-Level
2-6
SAP Easy Access screen: Logistics Production MRP Evaluations

Stock/Requirements List
Material
Plant
T-F10##
1200
The plant stock as well as an individual customer segment for the sales order and a
planning segment are displayed. There are planned orders for the planned independent
requirements in the planning section. One planned independent requirement has been
partly consumed by the sales order and results in a planned order in the individual
customer segment due to the MRP run.
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The plant stock and the sales order stock must never be consumed by each other. Maketo-order production always involves separate, sales order-specific inventory
management.
2-7
SAP Easy Access screen: Logistics Production MRP Evaluations

Material
Plant
T-B10##
1200
Assembly T-B10## is produced in a make-to-stock strategy, which is why the plant

stock is considered in the consumption. The secondary requirements that were created
due to the planned independent requirements as well as the relevant planned orders are
displayed.
2-8
SAP AG
Materials T-B10## and T-F10## are pure repetitive manufacturing materials

(Repetitive Manufacturing indicator is set in the material master). The planned orders
can be used for production and can therefore not be converted to production orders.
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Solutions
Topic: Planning Line Loading in the R/3 System
3-1

Planning Planning Table Change Mode
To access the planning table, enter:
Plant
Selection
1200
Production line T-L1##
Choose Planning table.

3-2
Double-click a planned order in the planning table section that is ready for input (shown
in white).
The planned order has order type KD (Individual customer order).
3-3
Activate the assignment mode for the quantities not yet assigned in the planning table
section that is ready for input by selecting the Not yet assigned line in the bottom
Material data table (to select, click on the button at the beginning of the line) and then
choosing the pushbutton displaying a truck. A symbol appears at the start of the line,
signifying that you are in assignment mode for this line.
Read the quantity in the Not yet assigned section and enter it in the field on the
production line that belongs to the same period, and confirm.
Deactivate the assignment mode again by choosing the corresponding pushbutton.
3-4
Double-click a planned order that has been assigned to the production line in the
planning table.
The planned order has order type PE (Run schedule quantity).
3-5
By dispatching a planned order on production line T-L1##, the line only reaches a
comparatively low capacity load (see planning table: capacity data in the row for
production line T-L1##).
This means, you could theoretically dispatch further quantities for the same period.
Note: The capacity data is not available on the same day as the production quantities
since the quantities are determined to the day according to availability while the
capacity load of the production line is determined to the hour and minute according to
the production date.
You can change the display from within the planning table by choosing View
Reference Dates Production Dates.
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3-6
Save the line loading planning for the finished product T-F10##.
Plant
Selection
1200

Switch on the assignment mode for the quantities not yet assigned in the planning table
section that is ready for input by selecting the Not yet assigned line and then choosing
the pushbutton showing a truck.
Read the quantities in the Not yet assigned section and enter them in the field on the
production line that belongs to the same period, and confirm.
Switch off the assignment mode again and save.
The T-B10## (which does not belong to any sales order) is on stock; the existing stock
can be used for production planning.
3-7
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Solutions
Topic: Material Staging and Backflushing
4-1

Material Staging
4-1-1 Pull List Trigger Replenishment
Staging type
Plant
Selection period
Storage location level

1200
Tuesday in two weeks
On the Planned order tab, choose:

Production line
T-L3##
Choose Global settings. On the Dialog control tab, choose:

Create replenishment proposals
Execute batch/stock determination
Stage replenishment proposals
Post replenishment elements
Print replenishment elements
Automatically
Automatically
In dialog
In dialog
In dialog
Confirm your entries and execute the report.

4-1-2 Due to the planned requirements, there are missing quantities for material TT6## until Tuesday in two weeks. The system automatically created a
replenishment proposal and determined stock for component T-T6## in storage
location 0001. The pull list shows how big the missing quantity is.
4-1-3 There are missing quantities at the production storage location PL03, where
the components for assembly production are to be staged.
4-1-4 The replenishment quantity was found in central warehouse 0001.
4-1-5 Yes, the staging quantity is equal to the missing quantity.
4-1-6 For the procedure, see the exercise. No solution required.
4-1-8 ###Log
Call up the log in the Material Staging menu, enter Today as the from-date, and
choose Execute.
The stock transfer was successfully posted in the system.
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4-2

Backflush REM Backflush
4-2-1 Choose System Create session to create another session. In the new session,
choose:
Plant
Selection
1200

4-2-2 Enter the following data on the Backflush transaction screen:
Backflush type
Backflush qty
Material
Plant
Prod.version
*)
Assembly backflush
90 pieces
T-B10##
1200
0001*)
The production version comprises the production on line T-L3##.
Choose Post with correction.

4-2-3 The current BOM was exploded during the backflush. The system determined
the materials to be backflushed in the BOM explosion. The all or nothing
principle applies, which means that all four materials displayed are backflushed.
4-2-5 Go to the second session (planning table) and choose F5 (Reaccess planning
table).
The oldest planned order quantity or quantities are reduced according to the
backflush quantity.
Explanation: For demonstration purposes, the backflush was made with a date
(today) that is before the actual production dates. The backflush quantity is
therefore interpreted as over-production that reduces later planned orders
accordingly (oldest planned orders first).
SAP AG
SCM300
6-46
Contents:
Application areas of project-oriented production
Project-oriented production: characteristics
Application-wide processes
Master data and prerequisites
Production lots
Master data for production lots (BOM, plan)
Process flow
Cost estimate for production lots
Planning of production lots
Production of production lots
Assignment of sales orders to production lots

Integration with other types of production
SAP AG 2003
SAP AG
SCM300
5-1
Project-Oriented Production: Unit Objectives

Explain the characteristics of project-oriented
production
Describe the main steps of the overall process
Explain the main functions for planning and
production using production lots
SAP AG 2002
SAP AG
SCM300
5-2
Course Overview
Introduction
with Process Orders
55
6
7
8
Kanban
Summary
SAP AG 2002
SAP AG
SCM300
5-3
Your company produces products of some kind in projectoriented production.

You belong to the team that is implementing the prerequisites of
project-oriented production as part of the implementation of
mySAP.com components. For the implementation, you must
create the whole process chain for in-house production. This will
allow your company to organize, control, and execute
production based on the mySAP SCM Production solution.
Important stages of project-oriented production are the
creation and costing of a production lot, the processing of
BOMs and routings that are related to the production lot,
planning and production based on the production lot, and
assignment of sales orders to production lots that have already
been manufactured. You can use all production types explained
in the previous units to carry out the production.
SAP AG 2002
SAP AG
SCM300
5-4
Project-Oriented Production: Characteristics (1)

Planning and Production Linked to Account Assignment
Planning and production with reference to production lot
Production lot = account assignment category (no separate
order category)
Account assignment category = WBS element
Integration of Project-Oriented Production

(mySAP PLM)
Sales
Production or Material Requirements Planning (SAP R/3, SAP APO)
(SAP R/3, SAP APO)
(SAP R/3 IM)
Logistics Execution
(SAP R/3 WM)
Quality Management
(SAP R/3 QM)
Controlling (product-oriented)
(SAP R/3 CO)
Business Intelligence (mySAP BI) or Logistics Information System
SAP AG 2002
SAP AG
SCM300
5-5

Functions of Project-Oriented Production
Production lot creation
Processing of BOMs and routings that are related to the
production lot
Production lot costing
Production lot planning for a certain period
MRP for production lot
Production of individual production lot
Progress check for production lot
Assignment of production lots to incoming sales orders
Storage (valuated project stock)
Sales order delivery
Settlement
Project-oriented cost accounting
SAP AG 2002
SAP AG
SCM300
5-6
Information Systems and Reports

Project information system
Order information system
Missing parts information system
Multilevel order reports
Business Information Warehouse (SAP BW)
SAP AG 2002
SAP AG
SCM300
5-7
Demo Scenario: Production of a Production Lot

Outbound delivery
Sales order
600034256
Sold-to party
0002 Finished goods

warehouse
Goods receipt
SD
Final assembly II
Production
plan
Production lot
2003_45
Final assembly I
Confirmation
Work center R-F##
2003_45
Work center R-E##

Confirmations
Pre-assembly II
Work center R-M##
Inbound delivery
Pre-assembly I
Work center R-V##

Stor. location PROD-1300
Material staging
by stock transfer
0001 Material warehouse
Plant 1000 (Hamburg)
SAP AG 2003
Demonstration example for project-oriented production:

In plant 1000, pumps and their assemblies (casing, shafts,...) are produced. The pre-assembly and final
assembly as well as the assembly production is carried out as make-to-order production. Due to long lead
times and the fact that sales orders come in late, production lots must be used for planning and preproduction.
Production orders are used to carry out the production. The individual parts for assembly production are
transferred via picking or the pull list from the material warehouse to production.
The most important data in the training system is:
Material numbers
T-POP
Pump
100-100
Casing
100-200
Fly wheel
100-300
Hollow shaft
100-400
Electronic
(make-to-order and make-to stock)

(make-to-stock)
(make-to-stock)
(make-to-order and make-to stock)
(make-to-stock with production version)
Work centers
1310
Pre-assembly 1
1320
Pre-assembly 2
1904
Final assembly 1
1906
Paint shop
1905
Final assembly 2
1721
Check
SAP AG
SCM300
5-8
Project-Oriented Production: Process (1)
Planning for
each production
lot
MRP per
production lot
Production of
individual
production lots
Consumption of
production lot
(such as delivery
for sales orders)
Basic data per production lot

BOM
Routing
Revenue & cost controlling

Variance calculation
based on
production lot
Production lot
costing
Activation
SAP AG 2002
Project-oriented production (SEIBAN) supports costing, planning, external procurement, in-house

production, and inventory management of products with reference to a production lot and a deferred
assignment of the production lot to incoming sales orders.
The production lot is a WBS element (account assignment object) that creates individual planning
segments in MRP.
In project definition, the Valuated project stock indicator is activated. For the WBS element, the
operative indicators Account assignment element and Billing element (for the assignment of the
production order and the account assignment of sales orders that are received later) are activated.
Production lot costing can be carried out with a specific quantity structure (BOM, routing). The result
can be activated as a specific material price (CO-PC).
In demand management, planned independent requirements are assigned to the production lot using
account assignment category Q.
Material requirements planning (R/3 MRP) creates planned orders that are converted to manufacturing
orders (usually production orders). The orders are assigned to the production lot (WBS element) and can
thus be evaluated in the project information system.
The production orders are produced, confirmed, and delivered, and a project stock (with reference to the
production lot) is created.
When sales orders are received, they access this project stock provided that the sales order items are
controlled by account assignment category Q (default) and are assigned to the production lot (WBS
element).
SAP AG
SCM300
5-9
Project-Oriented Production: Process (2)
PS
Acc.assmt cat. Q
PP
PBED
T
-POP
T-POP
SD
Production lot=
WBS element
2003_45
Jan.
100
Feb.
120
SalesOrd.
SalesOrd.
Delivery
T
-POP
T-POP
T
-POP
T-POP
Billing
T
-POP
T-POP
Mrch Apr.
130 110
MRP: Planned order

-> Convert to prod.order
MM
PP
2003_45
Prod. order
Goods receipt
SAP AG 2003
The production lot creates the link between a pre-produced material and sales and distribution,
materials management (purchasing and inventory management), and production planning and control.
SAP AG
SCM300
5-10
Production Lot Processing
Production planning
Order settlement
15
Variance calculation
14
Create delivery
Delivery to stock
WIP determination
Production lot
Plnd.ind.reqmt
13
Planned order
Master data per

prod.lot
Production order
11
Sales order is
received
Enter planned
indep.reqmt
Costing
12
Confirmations
Create production lot
Project stock
Sales order
10
9
Production lot
costing
6
7
MRP
Material staging
Order execution
SAP AG 2002
Production planning specifies the concrete quantities for production lots for the planning period
(month, quarter).
They must be entered as planned independent requirements.
With this production type, order-related BOMs and routings are often used as master data.
This master data can be provided with reference to the production lot (the same applies to sales order
BOMs and routings).
You copy existing material BOMs and routings and continuously adjust them to the customer's
requirements.
MRP creates individual planning segments per production lot.
Usually production orders are used for order execution, but repetitive manufacturing can also be
used.
Incoming sales orders (often already notified during production planning) must be assigned to the
production lots that are being produced.
In this way, the sales order assignment to the individual planning segment of the production lot in MRP
as well as the requirements consumption between the planned order and the sales order are performed.
The goods from production are delivered to a project stock from which the delivery to the customer
must take place.
WIP determination, variance calculation, and settlement are generally periodic work for Cost
Object Controlling (production lot), which are usually processed in the background.
SAP AG
SCM300
5-11
Project-Oriented Production & Project Management
PS
SD
SD
WBS element =
production lot
MM
Company
M
M
Purch. order
PP
Prod. order
SAP AG 2002
To carry out project-oriented production, you do not need to use project management (PLM-PM). You
can, however, use it within a project for the in-house production of a material.
WBS elements are usually part of a work breakdown structure in PLM_PM.
In project-oriented production, the WBS element is used as a production lot and can be used without
reference to a project.
The production lot (WBS element) creates the link between the project and sales and distribution,
materials management (purchasing and inventory mangement), and production planning and control.
SAP AG
SCM300
5-12
Project-Oriented Production: Master Data

= WBS element (account assignment object)
Project profile
Production lot
Master data for material
Material
(product and components)

Planning strategy group "S1"
BOM
Production lot-related BOMs
BOM
Master data for work center (standard

value keys, available capacities, formulas,
activity types)
Work center
Routing
Routing
Production lot-related routings
SAP AG 2002
The material to be produced must have a planning strategy group that points to a requirements class
on the sales order side for which the account assignment category "Q" (engineer-to-order
production) is defined.
Using transaction CSPB (WBS BOM Browser), you can create production lot-related BOMs from
single-level BOMs and process them.
Using transaction CA01 (Create Routing), you can create production lot-related routings from
routings and process them.
In a special selection procedure, the valid BOM and routing for MRP or the production order is
selected.
SAP AG
SCM300
5-13
Production Lot-Related BOM and Routing
Material / Plant
Production lot-related BOM
Production lot-related routing
Production lot
costing
$ $ $ $
Cost component split
Cost estimate
activation
Price per
production lot
(= per project stock)
SAP AG 2002
You can create BOMs and routings specifically for a production lot (or per WBS element to be more
precise).
In this way, you can prepare and apply special technolgies for production deviating from material BOMs
and routings.
Production lot-specific BOMs and routings are automatically transferred to production orders with
reference to the account assignment (production lot).
In Product Cost Planning (CO-PC), you can use these BOMs and routings to create "production lot
costing".
Production lot costing can be activated. Thus, a material price is defined that is used to valuate stocks
and consumption of this material instead of the standard price.
SAP AG
SCM300
5-14
Transfer of Requirements SD/PP (1)

Demand Management
Material master
Planning strategy group
SD
Customizing
Table TVEPZ
1.
2.
Sales document type

Item category
.
.
.
.
.
1
Valid planning strategies
Planning strategy
Main planning strategy
Alternative strategies
Item category group
Check for valid

requirements
type
MRP type
Requirements type
Plnd Indep. Reqmts
Cust. reqmts
SAP AG 2003
Using the planning strategy group, you assign the valid planning strategies to the material in the
material master. This is a prerequisite for finding the correct requirements type in planned independent
requirements management and in sales order management.
You maintain planning strategies (and planning strategy groups) in SAP R/3-Customizing:
Choose Production -> Production Planning -> Demand Management -> Planned Independent
Requirements -> Planning Strategy -> ...
The main strategy of the strategy group determines the default requirements type for sales orders and
for planned independent requirements.
Requirements classes are assigned to requirements types.
The requirements class is used to call up the transfer of requirements SD/PP, the MRP relevance, the
availability check in SD, the account assignment category and many further processes.
If there is no entry for the strategy group in the material master, the system uses the item category group
(Sales tab in the material master) and the MRP type to find the requirements type for the sales order.
You can explicitly proceed this way; however, it is not a good option for transferring requirements to
PPC.
SAP AG
SCM300
5-15
Transfer of Requirements SD/PP (2)
Requirements type
Planning
Customer requirements
Requirements class
Requirement
Availability check
Processing
Y/N
Transfer of requirements Y/N
Costing
Configuration
Y/N
Consumption in config.
Consumption customer
requirements/planning
(assignment)
Assembly type
Automatic reduction of pl.

independent requirements
Account assignment
category
Q
MRP
Y/N
Product allocation
Y/N
Automatic sales order

planning
PAUF
FA
Network
Costing
Y/N
Costing method
Product
Individual
Costing variant
SAP AG 2003
You maintain requirements classes in SAP R/3-Customizing:

In the IMG, choose Sales and Distribution -> Basic Functions -> Availability Check and Transfer of
Requirements -> Transfer of Requirements -> Define Requirements Classes.
SAP AG
SCM300
5-16
Sales Order/Project Stock & Collective Stock
PS
SD
SD
PS
Sales order stock
Project stock
Plant stock / collective stock
SAP AG 2002
SAP AG
SCM300
5-17
Valuated Project Stock: Quantities and Values

2003_45
Complete report of
quantities and values
on each level
$ $
4100,4100,T
-POP
T-POP
Production
Production
order
order
60002585
60002585
100-100
100-100
100-200
100-200
100-300
100-300
Vendor
1000
SAP AG 2003
Every quantity flow (MM) has a corresponding value flow in financial accounting (FI document) and
cost accounting (CO document).
All planned costs, commitment values, and actual costs (also for individual requirements stock
components) are displayed in the order or network.
Complete report of values on all production levels (unlike non-valuated stock where values from
different levels are mixed and displayed as costs for the WBS element).
For the project stock, the G/L account determination can be controlled differently to the collective
stock through separate valuation classes in the material master.
WIP is created for the orders as it is for collective stock and does not need to be calculated by results
analysis (as it needs to be for non-valuated stock).
SAP AG
SCM300
5-18
Non-Valuated Project Stock: Quantities and Values
Value check at WBS

! Incomplete costs at orders!
!! No FI documents!!
2003_45
4100,4100,T
-POP
T-POP
Production
Production
order
order
60002585
60002585
100-100
100-100
100-200
100-200
100-300
100-300
Vendor
1000
SAP AG 2003
Material components can be managed in a project stock or sales order stock (WBS element or sales
order item).
In the example, both the assembly T-POP and selected components are managed in the project stock.
Procurement for these materials (for example, the production order for T-POP) can be displayed in the
info systems for the project.
Non-valuated project stock means that quantity flows and value flows are separated. Goods issues, for
example, lead to quantity updates in the network or production order (the material is consumed).
The material movements are usually non-valuated, which means they do not create FI or CO documents.
Only the goods receipt for the purchase order creates an FI document that is assigned to the WBS
element.
In networks or production orders, this procedure results in incomplete costs for the relevant MRP level.
WIP stocks must be created by results analysis and its settlement.
SAP AG
SCM300
5-19
Collective Stock: Quantities and Values
Project
costs
2003_45
4100,4100,T
-POP
T-POP
100-100
100-100
100-200
100-200
Make-to-Stock
Production
Production
Production
order
order
60002585
60002585
100-300
100-300
Vendor
1000
SAP AG 2003
Material components that are managed in collective stock have synchronous quantity and material
flows.
Every quantity posting (for example, goods receipt, material withdrawal from warehouse, delivery)
results in a corresponding posting in FI / CO.
However, only the costs and availabilities of the directly assigned components are of interest and
visible for a project.
In the example, assembly T-POP is withdrawn from the warehouse for a price defined in the valuation
strategy.
The production order for producing T-POP and its costs are not shown in the project information system.
Only the reservation and the later goods issue of assembly T-POP to the network is displayed.
SAP AG
SCM300
5-20
Project-Oriented Production: Information Systems

Basis
(1)
Multi-level order overviews for

projects and sales orders
Orders
(1)
(1)
Project and order

structure
Missing parts - information system
Missing part record

(index record)
Controlling reports
CO objects of
orders
Key figures, historical values

(Business Information Warehouse)
BW library
(1)
Project information system
Projects
SAP AG 2002
Project-oriented production is supported by several information systems.

They differ in the way they use the order database (directly or indirectly) as well as in their results.
Systems marked with (1) are profile-controlled.
You set up the profile in Customizing for the relevant application (shop floor control, project system).
SAP AG
SCM300
5-21
Project-Oriented Production: Summary
Project-oriented production is a form of production planning

and shop floor control that has particular advantages for
make-to-order production with long lead times.
Its main characteristic is the use of production lots (WBS
elements) as account assignment objects for production
planning, external procurement, and in-house production.
Using production lots in make-to-order production enables
the planning and pre-production of individual parts,
assemblies, and products before a real sales order is
received.
SAP AG 2002
SAP AG
SCM300
5-22
Order-Controlled Production with Process Orders

Contents:
Application Areas for Process Orders
Process Order-Controlled Production: Characteristics
Application-Wide Processes
Master Data for Process Manufacturing
Structure and Elements of a Process Order
Editing a Process Order
Order creation, integration with planning
Process planning
Order processing
Order settlement
SAP AG 2002
SAP AG
SCM300
4-1
Contents (contd):
The Concept of Process Management
Elements of PI Sheets
Production in Compliance with GMP
Approved process orders
In-process quality check
Batch record
Digital signature
Information Systems
SAP AG 2002
SAP AG
SCM300
4-2
Process Orders: Unit Objectives

Explain the characteristics of order-controlled
production with process orders
Describe the individual steps in process order
management
Describe the concept of process management and use
a PI sheet to execute a process order
Explain the special functions for process order
management in the pharmaceutical area
SAP AG 2002
SAP AG
SCM300
4-3
Course Overview
Introduction
44
with Process Orders
6
7
8
Kanban
Summary
SAP AG 2002
SAP AG
SCM300
4-4
Your company is a process manufacturing company. You

produce order-related products.
You are on the project team for implementing shop floor
control functions based on process orders.
Important steps in process order management are order
creation, batch determination, scheduling, availability check,
release, transfer of control recipes to process control, material
withdrawal, confirmations, material delivery, and settlement.
To link the process control level with process control
systems and PI sheets, you must set up the process
management functions.
For the production of pharmaceutical products, you require
the following functions: order approval, material identification
and reconciliation, in-process quality checks, batch records,
and digital signatures.
SAP AG 2002
SAP AG
SCM300
4-5
Application Areas for Process Orders

Typical
Typical
industries
industries
Chemical
Pharmaceutical
Food manufacturers
()
PRODUCT COMPLEXITY
Production
Production according
according
to
to customer's
customer's reqmts
reqmts
Make-to-order
Make-to-order production
production
Batch
Batch production
production
Production campaigns
Mass production
PRODUCT STABILITY
SAP AG 2002
Process orders are used in different areas of the process manufacturing industry.
Process orders can be used for various production procedures and identified, for example, according to
the criteria product complexity and product stability.
SAP AG
SCM300
4-6
Process Order-Controlled Production:

Characteristics (1)
Order-Related Production
Order type: Process order (order type '40')
Production in charge quantities per order
Integration of Process Orders

(mySAP PLM)
Sales
(SAP R/3, SAP APO)
(SAP R/3, SAP APO)
(SAP R/3-IM)
Logistics Execution
(SAP R/3-WM)
Handling Unit Management
(SAP R/3-HU)
Batch Management
(SAP R/3-BM)
Quality Management
(SAP R/3-QM)
Controlling (order or product-oriented)
(SAP R/3-CO)
Classification system
(batch functionalities)
SAP AG 2003
SAP AG
SCM300
4-7

Characteristics (2)
Basic Functions of Process Orders
Status management
Production with production
versions
Scheduling
Calculating capacity requirements
Costing
Batch number assignment
Availability checks
Active ingredient management
Batch determination
Resource network
Resource selection
Generating control recipes for

process control level
Material staging with reservations
Confirmation of quantities,
activities, time events
(variable confirmation procedure)
Goods receipt (to stock)
Period-end closing
(process cost allocation, overhead
rate, WIP determination, variance
calculation, order settlement)
Mass processing
Printing shop floor papers

SAP AG 2002
SAP AG
SCM300
4-8

Characteristics (3)
Link to Process Control Level
Order processing with process management
Process control and flexible backflushing
In R/3:
With PI sheets
Outside of R/3:
With process control systems (link via the PI-PCS interface)
Functions for GMP-Compliant Production

Approval procedures for master recipes
and inspection plans
Approved process orders
In-process quality checks
Batch records
Batch usage
Digital signatures
SAP AG 2002
SAP AG
SCM300
4-9

Characteristics (4)
Additional Functions
Multi-level order network
Assembly orders
External procurement components
Plant-wide production (planning and production plant)
Phase-out control of material components

Alert Monitor
Process order information system
Process message reporting
Production information (SAP BW or SAP R/3 LIS)
Controlling report
SAP AG 2002
SAP AG
SCM300
4-10
Independent
requirements
Demand program
Sales
Sales orders
Costing
Stock
MRP
Planned orders
Make-to-order prod.
Process orders
B
A C D
E
Order execution
Delivery to stock
Order settlement
Material forecast
Batch record/archiving
Integration with
QM/LIMS
Inventory mgmt
Integration with
PCS
SAP AG 2002
Process order management is a central part of a complex process chain starting with a requirement
(planned or customer requirement) and ending with the goods issue of a finished product.
Process order management controls the whole process of the in-house production of products.
Process order execution is integrated with the functions of capacity requirements planning, costing, and
inventory management. In addition, there are links or interfaces to R/3 Quality Management, external
laboratory information systems (LIMS), and process control systems.
SAP AG
SCM300
4-11
Master Data for Process Orders

Batch
Batch
Material
Batch
Batch
Batch
Batch
Resource
..
.
Production version
Master recipe
Integrated
BOM maintenance
Material BOM
SAP AG 2002
Master data is data in the SAP System that remains unchanged over a long period of time. It contains
information that is used in the same manner over and over again.
The material is the central master record in logistics. In general, SAP defines a material as a substance
or commodity that is bought or sold on a commercial basis, or is used, consumed or created in
production.
A batch is a uniquely identifiable partial quantity of a material. The batches of one material are managed
separately in stock. With regard to the production process, a batch is a quantity of a material produced
during a given production run. This quantity, therefore, represents a non-reproducible unit with unique
specifications.
The master data for resources describes the means of production in the production process.
A production version determines which alternative BOM in combination with which master recipe is
used for process order manufacturing.
The master data of the master recipe describes the production of one or more materials in one
production run without relating to a particular order.
Material BOMs describe the structure of products that are produced in a company. They are usually
created and maintained from the master recipe (integrated maintenance).
SAP AG
SCM300
4-12
Material and Batch

Batch
Partial quantity of a material that is managed separately from other quantities of
the same material in stock.
A quantity of a material produced during a specific production run, which therefore
represents a non-reproducible, homogeneous unit with unique
specifications.
Material
Values:
Acidity:
Batch mgmt reqmt Total solids:
Freezing point:
Vanilla ice cream
Batch C1
Batch C2
7 - 9 pH
35 - 45 %
(-18o) - (-14o) C
Batch B3
For process order 60114
Specifications:
Specifications:
Specifications:
Acidity:
Total solids:
Freezing point :
7 pH
36 %
-18 oC
Acidity:
Total solids:
Freezing point :
9 pH
38 %
-19 oC
Acidity:
Total solids:
Freezing point :
8 pH
34 %
-17 oC
SAP AG 2002
In the SAP System, batch master records always depend on their corresponding material master records.
Batches are created for a material.
In general, the data of a material master is valid for all batches assigned to it. In contrast, a batch master
record contains data that uniquely identifies a batch and characterizes it as a non-reproducible unit.
The characteristic batch specifications are assigned using characteristics from the classification system in
the material master and are inherited by the corresponding batch master records.
If a material is to be produced and managed in batches, the batch management requirement indicator
must be set in the material master record.
A batch master record is usually created by the system in the background for certain business operations
(such as goods receipt). Users can also create batch master records directly in master data maintenance.
SAP AG
SCM300
4-13
Batch Management in Supply Chain Management
Procurement
Production
Warehouse Management
SD
Warehouse Management
KM T
KMT
A
B
Purchase
order
Warehouse
Proc.order/
prod.order
Warehouse
Batch determination
Batch
assignment
A
S
Sales
order
Batch determination
Batch
assignment
SAP AG 2002
Batch management is used in all areas of logistics. A batch can be traced across the whole supply chain,
from the receipt of the raw material to processing in production and the creation of the final product, all
the way to sales and delivery to the customer.
A batch master record can be used to assign a batch to a material at different places along the supply
chain. For example, if the partial quantity of a material produced in batches leaves a production process
(process order) with certain specifications, it is posted to stock with a batch number and can be uniquely
identified there.
If a batch is required in the supply chain with certain specifications, the batch determination function can
be used to have the system find suitable batches in stock. In production, for example, batch
determination is used in a process order to find and withdraw suitable material components for the
product to be produced.
SAP AG
SCM300
4-14
Demo Scenario: Ice Cream Production in Plant

1100
Delivery to stock
Delivery
stock 0001
Mixer
Pasteur.
& Homog.
T-IC100
T-IC200
Blast freezer
T-IC300
Packaging
line
T-IC400
Freezing
line
T-IC500
Resources
Material staging
Process control system
PI sheet
Central
warehouse
0002
Backflushing:
Confirmations of material movements
( ... )
SAP AG 2002
SAP AG
SCM300
4-15
Structure of the Process Order
Process order
Header
Material
Operation overview
Material list
Material
component
Operation
Resource
Phase
SAP AG 2003
Operations describe the different steps required during the production process. For a more detailed
description of these steps, operations are assigned phases.
An operation is assigned exactly one resource. At the same time, the resource assignment applies for all
phases assigned to the operation.
The processing sequence of the phases is defined in relationships.
The material list is made up of components representing the materials entering and leaving the
production process as well as temporarily existing materials and their planned quantities. It also defines
the assignment of these material components to phases of the order according to their appearance in the
process.
In material quantity calculation, you define formulas to calculate the material quantities to be used or
obtained in a production process, taking into account the mixing ratios of the input materials, yield ratios
of the products and remaining materials as well as specific material attributes (for example, active
ingredients).
SAP AG
SCM300
4-16
Elements of the Process Order

Order header
Assignments
Documents
Production version
Resource network
Prod. scheduler
Planned order
Sales order
Insp. lot (QM) ( ... )
Order no.
Status
Material number
Batch
Prod. qty (plnd/act.)
Dates (plnd/act.)
Plant
Doc. number
Doc. type
Header
Operation
overview
Operations
Resource
Control key
Standard values
Relationships
Ctrl. recipe destination
Char. for process

control level
Planned
Actual costs
Settlement rule
Settlement profile
Settlement receiver
Material list
Material components
Phases
Process instructions
Costs
Confirmations
Activities
Time periods
Op. quantities
Material number
Req. qty (plnd/act.)
Requirements date
Reservation
Batch
Secondary resources
Control key
Standard values
SAP AG 2003
SAP AG
SCM300
4-17
Editing a Process Order

Archiving / deleting
Order request
Process order
creation
Batch record
Process order
settlement
Availability check
Proc. order
Resource/
line scheduling
Variance calc.
Operations
Material receipts
Phases
In-process quality
checks
Process
instructions
Costs
Order
confirmations
Resource selection
Batch
determination
Material quantity
calculation
Resource
assignments
Material
components
Process order
release
Relationships
Order print
Material staging /
Material withdrawals
Send control recipes
Process messages
to diff. dest.
Edit PI sheet
SAP AG 2003
The graphic shows the main steps that are performed during process order management to control
process manufacturing in the SAP System.
The procedure involved in process order management can be divided into the following steps:
Process planning
Process order execution / process management
Completion of order
Many of these activities can run automatically or in the background so that manual processing of orders
is minimized.
WIP determination, deviation determination, and settlement are generally periodic work for Cost Object
Controlling and are usually processed in the background.
A number of settings must be made (Customizing) for each step to allow for successful order processing.
SAP AG
SCM300
4-18
Order creation options

Creating without
a planned order
Material
Production version
Master recipe
Master recipe
Material BOM
Production version
Material BOM
Process order
Create with planned order
Master recipe
Production version
Material BOM
Planned order
Process order
SAP AG 2003
For the creation of a process order and a planned order, a suitable production version is determined for
the material based on the validity period and the charge quantity range.
A production version determines which alternative BOM in combination with which master recipe is
used for production.
If a process order is created without a planned order, it takes the recipe and BOM from the production
version.
When a planned order is converted, the production version created for it is made known to the process
order and its recipe is transferred. The BOM is not reread, but rather the dependent requirements of the
planned order are converted to reservations for the process order.
SAP AG
SCM300
4-19
APO
R/3
Flexible Planning
Demand
Management
Plnd indep.reqmt
Plnd indep.reqmt
Consumption
Sales (SD)
Sales order

MRP
Sales order
Supply Network Planning(SNP)

Planned order
Manufacturing
Process order

Purchase order
(MM)
Planned or
process order
Conversion
Purchase order
Conversion
Stock transport requisition

Deployment
SAP AG 2003
The mySAP SCM solution offers two general solution methods for integrating planning and production:
Planning with the functions of the APO component
Planning with the functions of the R/3 component
Production preparation, execution and control are always performed with the functions of the R/3
component, but also depending on the production type.
Other functions (scheduling or the availability check, for example) can be carried out using either of the
SAP components.
Between the two SAP components, the master data and transaction data (planned orders, process
orders, purchase requisitions, purchase orders, stocks, and so on) are usually exchanged via the Core
Interface (CIF).
Specific events lead to the transfer of data from R/3 to APO (release, confirmation, goods receipt) and
vice versa.
Planned orders can be generated in material requirements planning in R/3 (MRP) or in APO with
a) Supply Network Planning (SNP) (plant-wide planning in a long-term planning horizon across the
whole supply chain and procurement chain) and
b) Production Planning and Detailed Scheduling (PP/DS) (Planning in a defined, short-term period
(production horizon) in a production plant)
SAP AG
SCM300
4-20
Order creation with planned orders

Planned order
Material
Material no.
no. (product)
(product)
Production
Production version
version
Requirements
Requirements quantity
quantity
Requirements
Requirements date
date
Material
Material no.
no. (component)
(component)
Requirements
Requirements quantity
quantity
Requirements
Requirements date
date
Material components
(reservations)
Order item
Process order
Inspection
lot
Inspection data
Secondary resources
Operations / phases
Material quantity
calculation
Process
instructions
Formulas
Formulas
Insp.
Insp. char.
char.
Insp.
Insp. procedures
procedures
Operations
Operations // phases
phases
Control
Control key
key
Standard
Standard values
values
Relationships
Relationships
Process
Process instruction
instruction
characteristics
characteristics
Ctrl.
Ctrl. recipe
recipe
destination
destination
Master recipe (for production version)

SAP AG 2003
Planned orders are created in material requirements planning (R/3 - MRP) or in planning in APO
(APO - PP/DS or SNP)
The creation of process orders via planned orders is the most important application form when using
the PP-PI application.
The process order data is created automatically this way.
Inspection data is copied from the master recipe when an inspection lot is generated, but not written in
the process order.
Planned orders generated in planning can be converted to process orders (and purchase requisitions to
purchase orders) by the MRP controllers (buyers) both in APO and in R/3.
SAP AG
SCM300
4-21
Process planning
Order request
Process order
creation
Resource/line
scheduling
Resource selection
Batch
determination
Material quantity
calculation
Material availability
check
Process order
release
SAP AG 2003
Process planning comprises all activities that are performed during the time between creation and release
of a process order.
The goals and methods of resource scheduling for process orders are the same as those for work center
scheduling for production orders. They can be found in the unit Order-Controlled Production with
Production Orders on the pages Detailed Scheduling (Work Center Scheduling) and Example: The
Detailed Scheduling Planning Board (APO).
The material availability check for process orders is the same as the availability check for production
orders. They are described in the unit Order-Controlled Production with Production Orders on the page
Availability Check for Material.
SAP AG
SCM300
4-22
Batch determination
Search strategy
Process order
Material list
.
.
.
Batches found in stock:

Batch C1
Dextrose equiv. 80 %
Cornstarch
.
.
.
Selection criteria
Dextrose equivalent:
75 % - 85 %
Batch C2
Batch C3
Batch assignment
SAP AG 2003
You can use the batch determination function to find batches with certain material specifications
required for production. According to specific selection criteria, the system looks for batches in stock
and selects them.
You can classify material list components in classes of the class type Batch. This is how you define
selection criteria for batch determination as characteristic values for material list components.
The actual characteristics of a batch are also specified using characteristic values.
Based on the selection criteria and a search strategy, the system looks for and selects suitable batches in
stock. An availability check is performed at batch level.
SAP AG
SCM300
4-23
Material Quantity Calculation

Ingredients
Raw material
Catalyst
Batch charact.
Concentration: 80%
Formulas
Phase quantities
Batch charact.
Potency of active
ingredient: 95%
By-product
Catalyst
Product
Yield
SAP AG 2002
In material quantity calculation, you define formulas to calculate the material quantities to be used or
obtained in a production process, taking into account the mixing ratios of the input materials, yield ratios
of the products and remaining materials as well as specific material attributes (for example,
concentration, active ingredient content).
You can also define formulas for calculating phase quantities in material quantity calculation.
You can perform active ingredient management in a process order when using batch determination and
material quantity calculation simultaneously.
SAP AG
SCM300
4-24
Order Release Functions
Order creation
Resource/line scheduling
Batch determination
Availability check
Order release
Print
documents
Create and
download
control recipes
Generate
insp. lots
Process
messages
In-process
quality
inspections
Material
withdrawal
Confirmations
Goods
receipts
SAP AG 2002
Process orders have a status management which controls the possible processing sequence of the
individual business operations. When an order is released, a status is set accordingly.
The process order must have status Released so that the business transactions for process order execution
and process management can be executed.
You can release individual phases and operations, one complete order or several orders at once.
Various activities can be triggered automatically when an order is released:
Batch number assignment for the product
Batch determination for the material components
Material availability check
Control recipe generation
Generation of an inspection lot for an in-process quality check
SAP AG
SCM300
4-25
Process Management
Process
planning
Process
order
Other
message
destinations
Process
management
Process
control
Execution
Control recipe
(process
instructions)
Process
messages
PI-PCS
Process
control system
PI sheet
SAP AG 2002
Process management is the interface between PP-PI and the systems involved in process control. Due to
its flexible structure, it can be linked to fully automated, partially automated, and manually
operated lines. Process management includes the following functions:
Receiving control recipes with process instructions from released process orders. The process
instructions define in detail the process steps to be executed and the process data to be confirmed
(using process messages).
Transferring control recipes to the corresponding process operators or process control systems
Manual processing: displaying control recipes in natural language in the form of PI sheets that can be
maintained on the screen by the process operator
Receiving, checking, and transferring process messages with actual process data from the process
control system or the PI sheet
Data is exchanged with process control systems using the interface PI-PCS.
SAP AG
SCM300
4-26
The material staging process

Material withdrawal slip
Pull list
Pick list
PI sheet
Weighing system (PI-PCS)
Backflushing
MM-IM Warehouse Mgmt

Inventory Management
List of kanbans to be moved
Kanban control
List of transfer requirements

Transfer orders
PI sheet
Weighing system (PI-PCS)
LE-WM Storage Bin Mgmt

Warehouse Mgmt System
Pick parts
Process order
Process order generates

transfer requirement
Crate parts
Container is ordered
Release order parts
Material is ordered
SAP AG 2003
The basis for material withdrawal for process orders are material withdrawal slips, pull lists, pick lists
and similar documents, as well as PI sheets and weighing systems linked via the PI-PCS interface.
The R/3 System has various procedures for controlling material staging:
b) Replenishment control with the component Kanban
c) Warehouse management and replenishment control with the component LE-WM
Management)
(Warehouse
The warehouse management system offers the three following options:

Pick parts are staged for the process order directly in the amount of the requirements quantity.
The staging of these parts for the process order can be done at a physical storage location or a dynamic
one (process order).
For this type of staging, you can create transfer requirements manually or automatically at order
release.
Crate parts are manually ordered when a crate is almost empty.
Release order parts are ordered manually. Here the required quantity is calculated from the target
quantity of the components of the selected orders that have been released. The stock situation in
production and replenishment are taken into account.
SAP AG
SCM300
4-27
Standard postings for process orders

Process control
system
PI-PCS
Process
Process messages
messages
Manually
Postings for process order

Goods issue
postings
Confirmations
PI sheet
(same as for
production orders)
- For phases and sec. res.

- For process orders
Goods receipt
postings
PI-PCS
Control
Control recipies
recipies
(process
(process
instructions)
instructions)
Process
order
Documents
Data
updates
Resulting activities
SAP AG 2003
The standard postings for process orders (goods issue, confirmation, goods receipt) can be performed
using manual data entry in the R/3 System, process messages from a PI sheet or a process control
system.
The functions and procedures for manual entry for process orders are the same as those for
production orders. They are explained in the unit Order-Controlled Production with Production
Orders (goods issue posting, order confirmation, confirmation procedures, goods receipt posting).
The process instructions of the order define which process messages are requested by a PI sheet or a
process control system.
Confirmations are entered for phases and secondary resources (and not for operations). The simplest
confirmation procedure is the confirmation for the process order.
SAP AG
SCM300
4-28
Flexible Data Entry with Process Messages
Process
order
Inventory
mgmt
QM
Batch
management
Handling unit
management
Process data
evaluation
Plant maintenance
Process
management
EBR
Process data
documentation
PI-PCS
Mail
PI-PCS
Process
messages
Process
messages
PI sheet
Process control
Process control system
SAP AG 2002
Process messages are data structures with which actual data for a process is confirmed from process
control to one or more destinations.
You can define process messages in Customizing according to your own specific requirements.
The SAP standard system contains a number of predefined message categories which enable you to
transfer actual data from process control to the R/3 System.
SAP AG
SCM300
4-29
HTML-Based PI Sheet
PI sheet
Header
PI sheet 1000000449
Process order: 1234
Received
Comment sheet
Material: XYZ test material
Comments
Operating group: W01
Control
information
Additional
information
Due to an error...
Temp: ______ C
Freq.: ______
Quantity: ____ kg
Signature: ____
Phase 10 / Instr. 10
Heat solvent
Start agitator.
Add material ABC.
Note:
Note:
Check material quality.
Record material quantity.
Stop heating and
slow down agitator.
Record insp. results

Call mat. qty calculation
Quantity:____ kg
Freq.: ______
Signature: ____
Start cooling.
Record time and temperature
every hour.
Input values
Time
10:00
11:01
Total quantity:?___
Input values
Insp. results
recording
Function call
Signature for
proc. step
Formula result
Temperature
175.0
168.3
SAP AG 2002
The SAP PI sheet favors processing on the screen, which means the process operator is to enter, confirm,
or complete data interactively.
In connection with the process instructions contained in a control recipe, the PI sheet has the following
elements and functions:
Display of information on process (control instruction, notes, and so on)
Input fields and tables for entering process data, input validation, signatures
Batch determination and batch check
Process data calculation
Function call for calling data from internal or external applications
Link to QM inspection results recording
Sequence definition for determining the processing sequence of phases
Comments on documentation and messages from process events
As of Release 4.6C, you can generate PI sheets in HTML. The browser-based PI sheet is an
enhancement of the ABAP list-based PI sheet. It gives you the advantage of a flexible, user-specific
layout definition and allows you to define frames, for example, for linking to documents, graphics, the
internet and intranet.
SAP AG
SCM300
4-30
Production in compliance with GMP
Digital
Signature
?
?
Approved recipe
Quality process
management
Approved
order
Batch record
Approved
inspection plan
Quality management
Batch management
SAP AG 2003
The guidelines on Good Manufacturing Practices (GMP) laid down by the U.S. Food and Drug
Administration (FDA) and other international institutions have become an international standard in many
areas of process industries. In particular, they must be taken into account in processes of the
pharmaceutical industry.
You can specify that a process order can only be created if an approved recipe exists. The order data
is therefore locked and cannot be changed. The approval procedure is performed in R/3 engineering
change management.
You use the material identification function to check whether the material that was picked for the
process order is completely available at the production line and will be used in the correct sequence.
You can exchange information about the product quality and analysis values between the production
plant and the laboratory or the quality assurance system. You use the R/3 Quality Management System
to do this. For batch specification, the inspection results can be automatically transferred to the class
characteristics of the batch produced.
You use the material reconciliation function to analyze and verify the ingredients and yield at the end
of the production process.
With regard to product liability, the batch record contains all planned and actual data for the production
process of a batch.
You can activate the digital signature function to execute certain business operations in the R/3 System.
SAP AG
SCM300
4-31
PI-PCS
Material Identification
PI sheet
for picking
or
Weighing
system
Process order
Note:
Picking complete?
PI sheet
for production
?
Note:
Materials complete?
Completeness check
Materials in correct sequence?
Sequence check
Process messages
XXXXXXXXXXX
SAP AG 2002
Goods issue
Batch record
Material identification is performed in the PI sheet using dynamic function calls and includes the
following:
Completeness check
Sequence check
Automatic goods issue posting (GI-posting) after successful completeness or sequence check
Automatic transfer of data from material identification to the batch record
Check that picking is complete
You use the completeness check to ensure that the materials that were picked for the process order are
staged at the production line.
You use the sequence check to ensure that the sequence of the components to be used is correct.
You can perform a completeness check or sequence check at the start of:
Production for the whole process order
An operation or a phase
SAP AG
SCM300
4-32
In-Process Checks: Scenarios
PI
Insp. Results
recording
QM
4
Insp. lot
Process planning/
process order
Process
management
1
Process
control
system
Insp. charact./
results recording
PI sheet
Lab. Information
system (LIMS)
SAP AG 2003
In an in-process quality inspection, the inspection results for the inspection characteristics of the
inspection lot are recorded when a process order is carried out.
There are several ways to record inspection results:
1. You can use process messages to record inspection results. In this case, results recording can either be
carried out automatically by a process control system or manually by the process operator who enters
the corresponding values in the PI sheet.
2. You can jump directly to QM Inspection Results Recording from within the R/3 PI sheet
3. You can use an interface to link external laboratory information systems (LIMS) to R/3 Quality
Management. R/3 QM uses this interface to transfer process instructions to the LIMS, which, in
return, sends inspection results back to R/3 QM.
4. You can also use the corresponding transactions of R/3 QM to record inspection results manually
during the production process.
SAP AG
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4-33
Specification of Batches Produced
Process order
Mixing
Granulating
Tablet pressing
Cetepharm-N
Batch 347819
Sieve size 0.15 mm

Water content 1.50 %
Potency of active
ingredient 98.5 %
Autom. value transfer
Potency of
active ingredient
98.5%
Inspection lot
SAP AG 2002
If the product is to be handled in batches, inspection results for batch specification can be automatically
copied to the class characteristics of the batch produced.
SAP AG
SCM300
4-34
Batch record
Batch 347819
Approved
Process Order
Batch
record
R/3
Archive
Batch record
Header record batch 347819
Version data
Status
Course Content
File
Version data
Archive
Link
Deviations
Documents from R/3 data
File
File
File
Attachment: data from ext. systems
File
Comments
File
Digital signature for approval

SAP AG 2003
The guidelines on Good Manufacturing Practices (GMP) specify that a batch record must be created for
every batch. With regard to product liability, the batch record contains all planned and actual data for
the production process of a batch.
A batch record consists of a current, valid version as well as a history of any older, now invalid versions.
All versions are managed with their status in the header record of the batch record.
A version of a batch record contains at most the following parts:
A document for the table of contents and version data from the batch record
A document containing any deviations that may have occurred while processing the batch
Documents for the following R/3 objects: all process orders to which the batch was assigned, the
material lists of these process orders, the PI sheets of the process orders, the process messages for
the process orders, all inspection lots for the batch
A document for entering more company-specific R/3 data
An attachment with archive data from external systems (process control systems, labels, and so on)
Comments entered for the version
Digital signatures entered for approval
You can use the SAP ArchiveLink interface to store documents in an archive system for long-term
archiving where they cannot be forged.
SAP AG
SCM300
4-35
Process Orders: Information Systems

Basis
Process orders
Process message evaluation
Process messages
Missing parts
BW InfoCubes
Logistic Information System LIS
R/3 LIS Library
Material documents
Controlling reports
CO object of order
SAP AG 2002
SAP AG
SCM300
4-36
Process Orders: Summary
The use of process orders is an order-oriented

production control option.
Process orders have specific characteristics, which
determine how they are used in the different areas of
process manufacturing industries.
An important characteristic is the option to process
orders using process management, which is realized
with the use of PI sheets and links to process control
systems (PI-PCS interface).
An additional essential characteristic is the use of
functions for GMP-compliant production.
SAP AG 2002
SAP AG
SCM300
4-37
SAP AG
SCM300
4-38
Exercises
Unit: Order-Controlled Production with Process Orders
Topic: Master Data
Name the master data that is important for process order-controlled
production
Select production versions in mass maintenance
Navigate from mass maintenance for production versions to master
recipes
Navigate from a master recipe to the BOM (integrated BOM
maintenance)
You are an employee in a company that produces food products and
alcoholic beverages. You are a member of the SAP project team and
responsible for implementing the functions of order-controlled production
with process orders.
You will first get a general overview of the basic master data.
Next you will display the master data production version, master recipe,
and BOM for the product T-FI1## Vanilla ice cream - packaged and
become familiar with the structure, basic data and navigation in these
master records.
1-1
First get an overview of the menu structure for the functions of Production Planning and
Control for Process Industries.
Which menu path takes you to these transactions?
____________________________________________________________
1-2
Name the basic master data for process order-controlled production.

____________________________________________________________
____________________________________________________________
____________________________________________________________
____________________________________________________________
____________________________________________________________
SAP AG
SCM300
4-39
1-3
Which menu paths take you to the maintenance transactions for material master records,
batches, production versions, resources, and master recipes?
____________________________________________________________
____________________________________________________________
____________________________________________________________
____________________________________________________________
____________________________________________________________
1-4
Go to mass maintenance for production versions and select the production version(s) for
the material T-FI1## Vanilla ice cream - packaged in plant1100.
1-4-1 Display the details for production version 0001.
Which task list and which BOM are assigned to each other via the production
version?
______________________________________________________
______________________________________________________
For which lot size range and which time period is the production version valid?
______________________________________________________
______________________________________________________
1-4-2 Navigate from mass maintenance in the master recipe to production version
0001.
1-4-3 Get an overview of the master recipe structure and the data in the Recipe
Header, Operations, and Materials views.
1-4-4 From the master recipe view Materials, navigate to the BOM for material TFI1##.
1-4-5 Get an overview of the data in the BOM and then go back to the master recipe.
1-4-6 Exit the master recipe and mass maintenance for production versions.
SAP AG
SCM300
4-40
Exercises
Topic: Integration with Planning Process Order
Creation with Planned Order
Execute an MRP planning run for your product
Interpret the result of the planning run in the stock/requirements list
Convert a planned order to a process order
Interpret the result of the planned order conversion in the
stock/requirements list
Display a process order, navigate in an order, and name the structure
and basic data
To become familiar with the principle of the integration of ordercontrolled production with process orders in Supply Chain Planning, you
will execute an MRP run, starting with the existing planned independent
requirements, in the R/3 System for your product T-FI1## Vanilla ice
cream packaged.
You will interpret the planning results in the stock/requirements list:
The planning run creates planned orders with regard to the planned
independent requirements.
You will then convert a planned order to a process order and interpret the
results in the stock/requirements list.
Finally you will display the newly created process order and become
familiar with the structure, navigation, and basic data in the order.
2-1
SAP AG
Display the current stock/requirements list for your material T-FI1## in plant 1100.
SCM300
4-41
Describe the current situation:

Date
MRP
element
MRP element
data
Rec. /
reqd.
qty
Available qty
____________________________________________________________
____________________________________________________________
____________________________________________________________
2-2
Perform multi-level single-item planning for your material T-FI1## in plant 1100.
2-3
After the planning run, display the current stock/requirements list.

Describe the new situation after the planning run:
Date
MRP
element
MRP element
data
Rec. /
reqd.
qty
Available
qty
Production
version
____________________________________________________________
____________________________________________________________
____________________________________________________________
SAP AG
SCM300
4-42
2-4
Display the planned order from the stock/requirements list.

2-4-1 Make a not of the planned creation dates in the Header view.
Creation of first planned order:
___________________________
Creation of second planned order: ___________________________

Creation of third planned order:
___________________________
Write down the production version selected: _______________

2-4-2 In the Assignment view, write down the responsible MRP controller.
MRP controller:
________________
2-4-3 Display the material components from the BOM explosion for the planned order.
2-5
In collective conversion, convert those planned orders within the area of responsibility
of your MRP controller ## that have a planned creation date in the current week.
Enter the following conditions for planned order selection:
Planning plant:
MRP controller:
1100
I##
Creation:
Time period of current week
Choose process order type PI01 for conversion.
SAP AG
SCM300
4-43
2-6
After planned order conversion, display the current stock/requirements list for material
T-FI1##.
Describe the new situation after the planned order conversion:
Date
MRP
element
MRP element
data
Rec. /
reqd.
qty
Available
qty
Production
version
____________________________________________________________
____________________________________________________________
____________________________________________________________
2-7
In the change mode, call the new process order from the stock/requirements list.
2-7-1 Familiarize yourself with the process order structure and the data in the views
Header, Operations (Operation Overview) and Materials (Material List).
2-7-2 Get an overview of the views in the order header.
Write down the order number: __________________________
Pay attention to status management.
2-7-3 In particular, familiarize yourself with the data in the following views:
Header General Data
Notice the quantity and date fields
Header Assignment
Write down the production scheduler: ________________________
Header Goods Receipt
Notice that you can define a batch number for the product T-FI1##.
Header Master Data
Write down the production version: ________________________
In this view you can navigate to the master recipe and the BOM.
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2-7-4 Display the operation overview of the order.

Compare the entries with the corresponding data in the master recipe.
Get an overview of the detail views of a phase.
2-7-5 Display the material list for your order.
Compare the entries with the corresponding data in the master recipe.
Notice that the Batch field is ready for input for components that are subject to
batch management requirement.
Get an overview of the detail data of a material component.
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Exercises
Topic: Process Order Release;
Processing an Order with a PI sheet
Release a process order
Generate a control recipe for a process order
Edit a PI sheet
Send process messages
Check the results of order processing
You will release your order for material T-FI1## and generate the control
recipe for the order at the same time.
You will select your control recipe in the control recipe monitor.
You will maintain the PI sheet.
You will select and send the process messages created while you were
processing the PI sheet in the message monitor.
After sending the messages, you will check the current data in the process
order, the stock/requirements list, and in inventory management.
3-1
Release your process order for the production of the material

T-FI1## in collective processing. At the same time generate the control recipe for the
order.
Enter the following criteria for order selection:
Order type:
Plant:
Production sched.:
PI01
1100
I##
Do not enter any selection criteria for the release date (or set the selection period so that
your orders scheduled release date corresponds to the selection criteria).
3-2
Display your process order now that it has been released and the control recipe has been
generated.
Find out which activities were performed when the order was released.
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3-2-1 Look at the order status. Especially pay attention to REL, CRCR, BCRQ, BASC,
MACM.
3-2-2 Header- Goods Receipt
Notice that a batch number is created automatically for the product T-FI1##.
3-2-3 Material list
Notice that batch determination was automatically executed for material
components managed in batches.
3-3
Select your control recipe in the control recipe monitor.

Send the control recipe and update the list display.
Note: In the production plant, control recipes are sent automatically in a job.
3-4
Your control recipe destination is of the type PI sheet.

Select and edit the PI sheet created when the control recipe was sent.
Maintain the PI sheet as specified in the solutions for this exercise.
3-5
Select the process messages created by maintaining the PI sheet in the message monitor.
Send the process messages.
Note: In the production plant, process messages are sent automatically in a job.
3-6
Display the process order for material T-FI1##.

3-6-1 On the header data screen, check the data on the quantity produced and on the
confirmed dates.
Notice the order status DLV and CONF.
3-6-2 Go to the operation overview and display the confirmed dates and calculated
activities for some of the phases.
3-6-3 Go to the material list and display the quantities that have been issued for some
of the materials.
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3-7
Display the current stock/requirements list for material T-FI1##.

Describe the new situation:
Date
MRP
element
MRP element
data
Rec. /
reqd.
qty
Available
qty
Production
version
____________________________________________________________
____________________________________________________________
____________________________________________________________
3-8
SAP AG
Display the stock overview for material T-FI1##.
SCM300
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SAP AG
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Solutions
Topic: Master Data
1-1
On the SAP Easy Access screen, choose Logistics Production - Process ()

The menus appear for
- Master data maintenance
- Production planning
Shop floor control
(demand planning/SOP, production planning,

MRP)
(process order; production campaign;
process planning; process management)
- Product cost planning

1-2
For more information, refer to the page Master Data for the Process Order in your
training material.
The basic master data is:
- Material and batch
- Resources
Production version
Master recipe
-BOM
1-3
SAP menu Logistics Production - Process Master Data
Material Master ()
Material Master Batch ()
Production Versions
Resources ()
Master Recipes ()
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1-4
SAP menu Logistics Production - Process Master Data Production

Versions
Plant:
1100
Choose Enter.
Material:
T-FI1##
1-4-1 Double-click the line for production version 0001

Lot size from 2000 to 10000 kg
Task list
Task list type:
Group:
Group counter:
Planning recipe
T-ICE##
1
BOM
Alternative BOM: 1
1-4-2 Choose Recipe.
1-4-3 Choose the appropriate tabs to navigate.
1-4-4 In the Materials view
Choose BOM.
1-4-5 To exit the BOM, choose Back (F3)
1-4-6 To exit the recipe, choose End (Ctrl+F3)
To exit mass maintenance for production versions, choose End (Ctrl+F3)
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Solutions
2-1
Unit:
Topic:
Integration with Planning

Process Order Creation with Planned Order
Logistics Production - Process MRP Evaluations Stock/Requirements List

Material:
Plant:
T-FI1##
1100
Choose Enter.
Date
MRP
element
MRP element
data
Rec. / reqd.
qty
Available qty
Today
STOCK
Req. date
IndReq
LSF
5000 -
5000 -
Req. date
IndReq
LSF
5000 -
10000 -
Req. date
IndReq
LSF
5000 -
15000 -
The available quantity today in the plant stock is 0 kg.

There are 3 future planned independent requirements which are not yet covered by
material requirements planning.
2-2
Logistics Production - Process MRP

Planning Single-Item, Multi-Level
Material:
Plant:
T-FI1##
1100
Choose Enter. The system displays a warning and prompts you to check the input
parameters. To start the MRP run, choose Enter again.
2-3
Logistics Production - Process MRP Evaluations Stock/Requirements List

Material:
Plant:
T-FI1##
1100
Choose Enter.
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Date
MRP
element
MRP element
data
Rec. / reqd. Available qty Production

qty
version
Today
STOCK
Plnd
Receipt
PlOrd.
Number/Stck
5000
5000
Req. date
IndReq
LSF
5000 -
Plnd
Receipt
PlOrd.
Number/Stck
5000
5000
Req. date
IndReq
LSF
5000 -
Plnd
Receipt
PlOrd.
Number/Stck
5000
5000
Req. date
IndReq
LSF
5000 -
5000
0001
0001
0001
As a result of the MRP run, the system created planned orders to cover the planned
independent requirements.
2-4
To display a planned order:

Double-click MRP element PL-AUF
Choose Display element (F7)
2-4-1 Header tab:
Creation:
Planned creation date
The creation date is used as selection criteria for the collective conversion of
planned orders into process orders.
Production version:
0001
2-4-2 Assignment tab page:

MRP controller: I##
2-4-3 To display the components:
Choose Components (F5)
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2-5
Logistics Production - Process Process Order

Process order Create With material
Material number:
MRP controller:
1100
I##
Creation:
Time period of current week
Process order type:
PI01
Choose the Execute selections (F8) icon.

The Collective Conversion of Planned Orders: List screen appears.
According to the selection criteria, the system only displays the planned order for
material T-FI1## that is chronologically first.
Select the corresponding line in the list and choose Convert.
After the conversion, the system displays the number of the process order in the lower
message bar.
Choose Back (F3) to exit collective conversion.
2-6

Environment Process Management Stock/requirements list
Material:
Plant:
T-FI1##
1100
Choose Enter.
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Date
MRP
element
MRP element
data
Rec. /
reqd. qty
Available Production
qty
version
Today
STOCK
Plnd
Receipt
PR-ORD
Number/PI01
5000
5000
Req.
date
IndReq
LSF
5000 -
Plnd
Receipt
PlOrd.
Number/Stck
5000
5000
Req.
date
IndReq
LSF
5000 -
Plnd
Receipt
PlOrd.
Number/Stck
5000
5000
Req.
date
IndReq
LSF
5000 -
0
0001
0001
0001
The planned order was converted to a process order.

2-7
To call the process order in the change mode:

Double-click MRP element PR-AUF
Choose the Change element (F8) icon
2-7-1 Choose the appropriate buttons to navigate.
2-7-2
2-7-3 Header Assignment
Production scheduler:
I##
Header - Goods Receipt

The Batch field is ready for input.
Header - Master Data
Production Version:
0001
2-7-4 Choose Operations.

Double-click the phase number to display the detail view of a phase.
2-7-5 Choose Materials.
The Batch field is ready for input for components subject to batch management
requirement.
Double-click the item number to display the detail data of a material component.
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Solutions
Topic: Process Order Release;
Processing an Order with a PI Sheet
3-1
Logistics Production - Process Process Order Process Order Release

Order type:
Plant:
Production sched.:
PI01
1100
T##
Delete the entries in the fields for date selection.

Choose the Execute selections (F8) icon.
The Release Process Order: List screen appears.
According to the selection criteria, the system only displays the process order created
above for material T-FI1##.
Choose Control recipe (release with control recipe generation).
After you have released the order and created the control recipe, choose Back (F3) to
exit the list.
3-2
Logistics Production - Process Process Order Process Order Display

Order type:
Order number
Choose Enter.
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3-2-1 to 3-2-3
The following activities were performed:
Order release:
See status REL "Released"
Control recipe generation:
See status CRCR Control Recipe

Generated
Creation of batch master record for product T-FI1##:
See status BASC "Batch assignment complete"
See the automatically created batch number in the header data screen
Goods receipt
Material availability check:
See status MACM "Material

confirmed
Batch determination for material components subject to a batch management
requirement:
See automatically assigned batch in the material list
3-3
Logistics Production - Process Process Management

Control Recipe Control Recipe Monitor
Plant:
Process order:
1100
Order number
or
Plant:
Destination address:
1100
GRP. ## ICE
Choose Enter. The Control Recipe Monitor: Overview screen appears.

The control recipe has status Created.
Select your control recipe and choose Send. After sending, choose the Refresh icon to
update the list. The control recipe must now have status Sent.
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3-4
() Process Management PI Sheet Find

or
() Process Management PI Sheet
Worklist - Maintain
Choose appropriate selection criteria, such as:
Plant:
Operating group:
1100
GRP. ## ICE
Execute (F8)
Maintain PI Sheet (F5)
Enter your signature to report the start of PI sheet maintenance. Sign with your R/3 user
name and confirm the signature with your R/3 password.
The material component to be entered for the first phase 1010 can be found in the list of
ingredients.
The quantities and batch numbers from the process order are set as the default values.
The line operator can change these values.
Enter your signature to report the end of phase 1010.
Process the other phases of the PI sheet in the same manner.
In the last phase at the end of the PI sheet, report the number of ice cream packages
produced. Enter your signature to report the end of PI sheet.
3-5
() Process Management Message Message Monitor

Plant:
Process order:
1100
Order number
Choose Enter. The Process Message Monitor: Messages screen appears.

Select all process messages and choose Send to send them. After sending, choose
Refresh to update the list. The messages must now all have status Sent.
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3-6
() Process order Display

Process order:
Order number
3-6-1 Choose Enter. The order header appears. The produced quantity and confirmed
order dates are displayed here in the General data.
After the PI sheet has been completely processed, the statuses DLV (delivered)
and CNF (confirmed) are set.
3-6-2 Choose Operations. Select one or more phases and double-click a phase number.
To display the confirmed dates, choose the Dates tab page.
To display the activities calculated from the dates, choose the Qty/activities tab
page.
You can use the Previous operation and Next operation buttons to go to the
dates of the individual phases.
3-6-3 Choose Materials.
Select one or more material components (and the individual batch records for the
materials to be handled in batches) and double-click an item number.
The General Data screen contains the component quantities withdrawn.
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3-7

Environment Process Management Stock/requirements list
Material:
Plant:
T-FI1##
1100
Choose Enter.
Date
MRP
element
MRP element
data
Rec. /
reqd. qty
Available
qty
Today
STOCK
Req. date
IndReq
LSF
5000 -
Plnd
Receipt
PlOrd.
Number/Stck
5000
5000
Req. date
IndReq
LSF
5000 -
Plnd
Receipt
PlOrd.
Number/Stck
5000
5000
Req. date
IndReq
LSF
5000 -
Production
version
5000
0001
0001
After the goods receipt, the process order no longer appears in the list. The plant stock
was raised by the delivered quantity.
3-8
Logistics Materials Management Inventory Management

Evironment Stock Stock Overview
Material:
Plant:
T-FI1##
1100
Program Execute
The batch that you produced was delivered to storage location 0001 "Delivery
warehouse" in plant 1100.
Since a corresponding setting has been made, you first get to the stock in quality
inspection in the material master.
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Order-Controlled Production with Production Orders

Contents:
Application Areas for Production Orders
Order-Controlled Production: Characteristics
Master Data for Production Orders
Structure and Elements of a Production Order
Processing a Production Order
Order creation
Integration with planning
Order processing
Order settlement
Automation
Information Systems
SAP AG 2002
SAP AG
SCM300
3-1
Production Orders: Unit Objectives

Explain the characteristics of order-controlled
production with production orders
Describe the main steps for managing production
orders
Describe the main functions for managing
production orders
SAP AG 2002
SAP AG
SCM300
3-2
Course Overview
Introduction
33
with Process Orders
6
7
8
Kanban
Summary
SAP AG 2002
SAP AG
SCM300
3-3
Your company produces order-related products of some kind.

You belong to the team that is implementing production orders
in Production Planning and Scheduling. To implement
production orders, you must create the whole process chain
for in-house production to allow your company to organize,
control, and execute production for a plant based on the
mySAP SCM Production solution.
You want to include functions for these important steps in
order-related production: order creation, scheduling, release,
execution, confirmation, and settlement; printing shop-floor
papers; material withdrawal; and goods receipt.
These functions are integrated with other areas in your
company, such as controlling and warehouse management.
Therefore, you must consider the many integration
relationships when implementing production orders.
SAP AG 2002
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3-4
Order-Controlled Production: Characteristics (1)

Order-Related Production
Order type: Production order (order type "10")
Production in order lot sizes (see lot-sizing procedure)
Integration of Production Orders

(mySAP PLM)
Sales
(SAP R/3, SAP APO)
(SAP R/3, SAP APO)
(SAP R/3 IM)
Logistics Execution
(SAP R/3 WM)
Quality Management
(SAP R/3 QM)
Controlling (order or product-oriented)
(SAP R/3 CO)
SAP AG 2002
SAP AG
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3-5
Document Type
Orders
Material documents
Accounting documents
Order Category
PP production order
PP process order
PP network
CO internal order
CO production order
CO model order
PM maintenance order
Order Type
Production order (internal number assignment)

Production order (external number assignment)
Production order (special processing)
SAP AG 2003
R/3 R/3 R/3 R/3 R/3 R/3 R/3 R/3 R/3 R/3 R/3 R/3 R/3 R/3 R/3 R/3 R/3 R/3 R/3 R/3
Document Type, Order Category, Order Type
In the SAP system, you use the document type to distinguish between business transactions.
Orders are one type of business transactions.
The order category is used to distinguish between the various orders that are used in the different
applications.
The client-specific order category definitions for each application cannot be changed.
Within an application, users can define order types for an order category.
The order type controls various processes and functions:
Number assignment
Setting default values
User-defined status management
User-defined field control (not for production orders in ERP Release )
You make all necessary settings in Customizing.
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3-6

Basic Functions of the Production Order
Status management
Scheduling
Calculating capacity requirements
Costing
Availability checks (material, PRT, capacity)
Printing shop floor papers
Material staging via reservations
Confirmation of quantities, activities, and time events
(variable confirmation procedure)
Period-end closing (activity-based costing, overhead cost rates, WIP
determination, variance calculation, order settlement)

Mass processing
SAP AG 2002
A number of functions are available for production orders, which allow for complex support of
production (see following slides).
The course SCM310 covers a selection of the most important functions in detail.
SAP AG
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3-7

Extended Functions of the Production Order
Production based on production version (for example, production
lines)
Engineering change management (ECM) and order change
management (OCM)
Multi-level order network
Assembly orders
Serial numbers and as-built configuration
Order splitting
External processing operations and external procurement
components
Plant-wide production (planning and production plant)
SAP AG 2002
SAP AG
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3-8

Extended Functions of the Production Order
Trigger points (start workflow, ...)
Scrap planning, management and rework
Phase-out control, material components
Quality inspection during production
Batch number assignment (product)
Batch determination (components)
Transport and packaging units (HU)
SAP AG 2003
SAP AG
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3-9

Link to Process Control Level
Order processing via PP-PDC - Interface:
Downloading of orders
Uploading of confirmations

Alert Monitor (SAP APO)
Production information (SAP_BW or R/3_LIS)
Order progress report (multi-level for sales orders)
Controlling report
Batch where-used list and batch records
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3-10
Plnd ind.
reqmts
Demand program
Costing
Sales
Sales orders
Stock
Planned
orders
MRP
Make-to-order prod.
B
A C D
E
Production orders
Order execution
Delivery to stock
Order settlement
Material forecast
Archiving
Integration with
QM
Inventory mgmt
Integration
with PDC
SAP AG 2002
Production order management is a central part of a complex process chain starting with an
independent requirement (planned or customer requirement) and ending with the goods issue of a
finished product.
Production order management controls the whole process of in-house production of products and is
integrated in the functions of capacity requirements planning, costing and inventory management.
Furthermore there are links or interfaces to quality management as well as external systems.
Production order management uses the following system elements: ALE, workflow, Customizing,
text processing, factory calendar, classification, communication, and graphics.
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3-11
Master Data for Production Orders

Master data for material
Material
(product and components)
BOM
BOM
Material or order BOM
Master data for work center (standard

value key, available capacity, formulas,
activity types)
Work center
Routing
PRTs
Routing
Operations, standard values, control key,

trigger points
Master data for PRT (material,

equipment, document, misc.)
SAP AG 2002
The material to be produced must have the procurement type in-house production (X,E).
The BOMs are single-level BOMs. A special selection procedure chooses the valid BOM.
The routings are normal routings. A special selection procedure chooses the valid routing.
Work centers are assigned in the routing of the operations.
Production resources/tools are assigned in the routing of the operations.
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Demo Scenario: Pump Production in Plant 1000

Outbound delivery
0002 Finished goods
warehouse
Sold-to party
Goods receipt
SD
Final assembly II
Final assembly I
Confirmation
Work center R-F##
Work center R-E##

Confirmations
Pre-assembly II
Work center R-M##
Inbound delivery
Pre-assembly I
Work center R-V##

Stor. location PROD-1300
Material staging
by stock transfer
0001 Material warehouse
Plant 1000 (Hamburg)
SAP AG 2003
Demonstration example for production with production orders:

In plant 1000 pumps and their assemblies (casing, shafts, ...) are produced. The final and pre-assembly as
well as assembly production take place in the warehouse and partially as make-to-order production. The
production is organized based on the workshop principle. The individual parts for assembly production
are transferred via picking or the pull list from material stock to production. During confirmation of the
assembly, the stock receipt of the assembly is posted directly to the storage location, which is assigned to
the final assembly production line. Components for final assembly that are not produced at the assembly
production lines are transferred via the pull list from material stock.
The most important data in the training system are:
Material numbers
R-F1##
Pump
(make-to-order and make-to-stock prod.)
R-B1##
Casing
(make-to-stock prod.)
R-B2##
Stock
(make-to-stock prod.)
R-B3##
Shaft
(make-to-order and make-to-stock prod.)
R-B4##
electronics (make-to-stock production with production version)
Work centers
R-V##
Pre-assembly 1
R-M##
Pre-assembly 2
R-E##
Final assembly 1
R-L##
Paint shop
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R-F##
R-P##
SAP AG
Final assembly 2
Check
SCM300
3-14
Production Order Processing

Order request
Archiving / deleting
Order settlement
Order creation
15
Order header
Operations
(1)
Goods receipt
WIP
determination
Material
components
Production
Tools
12
Upload from
PCD system
(1)
Machine
reservation
(1)
13
Confirmation
Availability
checks
14
Variance
calculation
(1)
16
Planning
Target
Actual
Costs
100
20
50
11
Download to
PDC system
Order print
(1)
10
SAP AG 2003
Order release
Material staging
9
Material withdrawal
posting
(1)
The production order goes through a number of individual activities.

Many of these activities can run automatically or in the background so that manual processing of
orders is minimized.
WIP determination, variance calculation, and settlement are generally periodic work for Cost
Object Controlling, which are usually processed in the background.
A number of settings available in Customizing allow you to successfully perform each step in order
processing.
(1) These functions can be automated.
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Elements of a Production Order

Order header
Order number
Plant
Operation sequences
Standard sequence
Other sequences
Operations
Work center
Control key
Standard values
Settlement rule
Document link
Costs
Settlement profile
Settlement receiver
Planned
Actual
Doc. number
Doc. type
Material components
Material number
Quantity
Requirements date
PRTs
PRT number
PRT category
Number of PRTs
Trigger points
Capacity splits
Functions
Individual machine
Individual person
Confirmations
Quantities
Times
Order-related COC
SAP AG 2002
The order structure represented can be enhanced by certain elements.

At least one operation is required. If necessary, the system creates one automatically.
You have the choice of whether to assign material components, production resources/tools and
trigger points to the operation.
You can create several (parallel) operation sequences.
You can make a selection from several alternative sequences.
Suboperations are permitted within an operation.
Costs are determined at operation level, submitted at order header level and a settlement rule is created
for the orders only for order-related COC.
You can link production orders to documents in the Document Management System (DMS)
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Order Creation Options

Create without routing and BOM
Create with routing and BOM
Order
Plan
Create with routing

Plan
Order
Material BOM
Order
Create with planned order
Planned order
Order
Plan
SAP AG 2002
Operations, material components and PRTs are usually taken from the routing and the BOM.
You can enter data manually.
When a planned order is converted, the BOM is not reread.
If not otherwise specified in the routing, the components of the BOM are assigned to the first
operation.
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CIF
R/3
APO
Flexible Planning
Demand
Management
Sales (SD)
Plnd indep.reqmt
Plnd indep.reqmt
Consumption
Sales order

MRP
Sales order
Supply Network Planning (SNP)

Planned order
Production
Planned or
production order
Production order

Purchase order
(MM)
Purchase order

Conversion
Conversion

Deployment
SAP AG 2003
The mySAP SCM solution offers two general solution methods for integrating planning and production: planning
with the functions of the APO component
and planning with the functions of the R/3 component.
Production preparation, execution and control are always performed with the functions of the R/3 component,
but also depending on the production type. Such functions include costing, release, material staging,
confirmation, goods movements, and settlement.
Other functions (scheduling, availability check, machine commitment, for example) can be performed using either
of the SAP components.
Between the two SAP components, the master data and transaction data (planned orders, production orders,
purchase requisitions, purchase orders, stocks, and so on) are usually exchanged via the Core Interface (CIF).
Specific events lead to the transfer of data from R/3 to APO (release, confirmation, goods receipt) and vice versa.
Planned orders can be generated in material requirements planning in R/3 (MRP) or in APO with the
following:
a) Supply Network Planning in APO (SNP)
This component achieves cross-plant planning in a long-term planning horizon across the whole supply and
procurement chain. Stock transport requisitions (distribution), planned orders (in-house production), and
purchase requisitions (external procurement) are generated for each production plant.
b) Production Planning and Detailed Scheduling APO (PP/DS)
This component generates planned orders and purchase requisitions in a defined, short-term time period
(production horizon) in the production plant.
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The course SCM210 covers the Core Interface (CIF) in detail.

The courses SCM220 to SCM260 cover the planning tools in detail.
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Order Creation with Planned Orders

Planned order
Material
Material no.
no. (product)
(product)
Requirement
Requirement quantity
quantity
Requirements
Requirements date
date
Material
Material no.
no. (component)
(component)
Requirement
Requirement quantity
quantity
Order item
Inspection lot
Material components
Production order
Inspection data
Inspection
Inspection
characteristics
characteristics
Inspection
Inspection values/
values/
characteristics
characteristics
Operations
Task
Task list
list no.
no.
Work
Work center
center
Control
Control key
key
Standard
Standard values
values
PRTs
PRT
PRT no.
no.
Requirement
Requirement qty
qty
Control
Control key
key
Routing
SAP AG 2002
Planned orders are created in material requirements planning (R/3 - MRP) or in planning in APO
(APO - PP/DS or SNP)
The creation of production orders via planned orders is the most important application form in the
whole PP application.
The production order data is created automatically this way.
Inspection data is copied from the routing when an inspection lot is generated, but not written in the
production order.
Planned orders generated in planning can be converted to production orders (and purchase requisitions
to purchase orders) by the MRP controllers (buyers) both in APO and in R/3.
SAP AG
SCM300
3-20
Order Release Functions

Order header
Operations
Order creation
Material
components
Production
Tools
Costs
Plan
Target
Actual
100
Scheduling
20
50
Availability check
Order release
Print
document
Material
withdrawals
Processing
Confirmation
Goods
receipts
Settlement
SAP AG 2002
The order release is the basis for the processes that follow the production order (printing order
documents, material withdrawal, and so on).
Production orders are managed via status.
When an order is released, a status is set accordingly.
An availability check can be executed automatically.
You can release an individual operation, a whole order or several orders together.
A function is also available for the mass release of operations or orders (see the section "Mass
Processing").
SAP AG
SCM300
3-21
Detailed Scheduling (Work Center Scheduling)
Goals
Creation of a feasible work center schedule for executing

operations of production orders
Ensuring the time-based availability of capacities
Optimum work center scheduling
High capacity load utilization with shortest possible op. lead times
Optimum processing sequence and dates
Material availability, low stock levels
Minimum setup/clean-out costs
Methods
R/3
Capacity Requirements Planning (CRP)

Planning board (continuous with regard to time)
Tabular capacity planning table (period-oriented)
Use of the order information system
Mass planning in the background
APO Production Planning/Detailed Scheduling (PP/DS)

Simultaneous material req. and capacity req. planning
Product planning table (period-oriented)
DS planning board (continuous with regard to time)
Optimization procedure
SAP AG 2003
Detailed scheduling (work center scheduling) can be done both in R/3 (capacity requirements
planning) and in
APO (PP/DS).
A prerequisite for all methods of detailed scheduling is long-term or medium-term capacity
requirements planning.
You can use the order information system to create a list of the operations for each work center.
You can only do so if you create a special profile in Customizing beforehand.
The course SCM360 deals with capacity requirements planning in detail.
SAP AG
SCM300
3-22
Planning board Edit
Goto
Functions
Extras
Settings
System
Help
APO DS Planning Board, Planning Version 000

Optimize ...
New schedule
Deallocate
Strategy
Scheduling log
Resource chart
Resource
Short description
Check production II
Check production II (machine)
Final assembly II (labor cap.)
Final assembly I (labor cap.)
Final assembly I (machine cap.)
Paint shop (labor cap.)
Paint shop (machine cap.)
Product chart
Product
Prod. Description
Scheduling or rescheduling
of operations:
Confirmation of
requiredcapacities
Metal (APO)
Pillar (APO)
Lagertrger (APO)
Antriebselektronik (APO)
Shaft (APO)
Shaft (APO)
Laufrad (APO)
Casing (APO)
Pump (APO)
Operation chart
Order no.
Op.
Oper. description
Staging by picking
Einpressen Laufrad in G
Paint casing
Shaft built in casing
Final assembly of pump
Delivery to stock
Staging by picking
Einpressen Laufrad in G
Paint casing
Start
Inbox-Microsoft Outlook
SAP Logon 610
APO DS-Planning board
Change planned indep. reqmts
Exploring E:\Developm...
SAP AG 2003
SAP AG
SCM300
Microsoft PowerPoint (...
Hardcopy - Hrdcpy
APO APO APO APO A APO APO APO APO APO APO APO APO APO APO APO APO APO
Example: The Detailed Scheduling Planning Board

(APO)
3-23
Availability Checks (Material, Capacity, PRT)

Warehouse 3
Order header
A
Material
Operations
Material
components
Warehouse 2
Production
Tools
Costs
Req. quantity/date
Planning
20
100
Target
50
Actual
Material
Checking control for production orders

Inspection results
Time 1
12
11 1
10
2
9
3
8
4
765
12
11 1
10
2
9
3
8
4
765
Order
creation
Confirmed quantity or capacity

Missing part record (index)
Status FMAT, FKAP, FFHM
(missing part, capacity, ...)
Time 2
Change
Release
Processing
Confirmation
Goods receipt
SAP AG 2003
Production orders can be checked individually or with mass processing at different times, manually or
automatically.
Check instructions control the availability check.
Inspection results
Assignment of confirmed quantity

(Partial quantities can be confirmed)
Material shortage status
Missing part record
Depending on the control, the check is done either in R/3 or in APO.
SAP AG
SCM300
3-24
Shop Floor Papers (Standard - List Types)
Reports
Forms
PSFC_OBJ_LIST
PSFC_PRINT_LAY
Operation control ticket
PSFCOPCT
PSFC_STD_LAYOUT
Job ticket
PSFCJOBT
PSFC_STD_LAYOUT
Time ticket
PSFCTIME
Confirmation slip
PSFCCONF
PSFC_STD_LAYOUT
Pull list
PSFCPICK
PSFC_STD_LAYOUT
Goods withdrawal slip
PSFCGISS
PSFC_STD_LAYOUT
PRT overview
PSFCPRTL
PSFC_STD_LAYOUT
KANBAN card
PSFCKANB
PSFC_KANBAN
Object list
Document distribution
PSFC_STD_LAYOUT
PSFC_DOCLINK_DIST
DDS_COVER_PLO
SAP AG 2003
The standard system provides various lists.

For each order, a maximum of 20 lists may be called up.
It is possible to plot originals of documents using document distribution.
SAP AG
SCM300
3-25
The Material Staging Process

Material withdrawal slip
Pull list
Pick list
Backflushing
MM-IM Warehouse
Management
Inventory management
List of kanbans to
be moved
Kanban control
List of transfer
requirements
Transport request
LE-WM Warehouse Management
Pick part
Prod. ord.
Production order generates

transfer requirement
Container is called
Crate part
Material is called
Release order part

SAP AG 2002
The basis for material withdrawal for production orders are material withdrawal slips, pull lists, pick
lists and simular documents.
The R/3 System has various procedures for controlling material staging.
b) Replenishment control with the component KANBAN
c) Warehouse management and replenishment control with the component LE-WM
(Warehouse Management)
The warehouse management system offers the three following options:
Pick parts are staged for the production order directly in the amount of the requirements quantity.
The staging of these parts for the production order can be done at a physical storage location or a
dynamic one (production order).
This is typical for high value parts, such as shafts, casings, and so on.
Crate parts are manually ordered when a crate is almost empty.
This is typical for small parts in containers, such as screws and nails.
Release order parts are manually ordered. Here the required quantity is calculated from the target
quantity of the components of the selected order that has been released.
This is typical for paint, for example.
SAP AG
SCM300
3-26
Production Order: Goods Issue Posting

Reservation
Material
Stock quantity
Consumption stat.
...
Point of consumption:
Order
Cost center
G/L accounts
Goods issue
Goods issue slip
G/L accounts:
Stock account
Consumption acc.
...
Material
document
Acctg
document
Cost acctg
document
SAP AG 2002
The goods issue posting (GI) is executed for a consumption of a material component for a production
order.
The following functions are executed when a goods issue is posted.
- Storage location-related update of stock and consumption fields
- Reduction of reservations (for planned withdrawal)
- Determination of actual costs (evaluation) and update of order
- Generation of material documents, accounting documents and cost accounting documents
- The material document describes the goods movement from the materials management (stock)
point of view.
- The accounting document describes the goods movement from the financial accounting point of
view.
- The cost accounting documents serve various cost analysis purposes.
- When you display the material document, you can branch to the other documents.
- A goods issue document can be printed.
The GI posting is controlled via a movement type (261), to which each posting refers.
This can take place manually or automatically.
SAP AG
SCM300
3-27
Order Confirmation: Process Chain

Production order
Operation 0010
Operation 0020
Upload PDC interface
.
.
.
Manual entry
Operation 9999
Saving confirmations
Confirmations
Orders
Different functions are executed

using the confirmation data
Actual costs
Capacity
requirements
Material
documents
HR data
SAP AG 2002
Confirmations are an important basis for update control and a resulting capacity requirements
planning.
Therefore, exact, real-time confirmations are especially important.
Order confirmation is used for entering activities carried out within your company for an order.
Confirmations from PDC systems are possible via a PP-PDC interface.
SAP AG
SCM300
3-28
Confirmation Procedures
Order-related confirmations
Operation-related confirmations
Confirmations for
production order
Time ticket /confirmation slip

confirmation
Time event confirmation
Collective / quick entry
Start setup
Milestone confirmation
Finish setup
Start processing
Finish processing
Progress confirmation
SAP AG 2002
There are different confirmation procedures.

Each procedure realizes different requirements that a company may have.
Depending on the application, one or more procedure may be used.
For the most part, the two main types are operation-related and order-related confirmations.
SAP AG
SCM300
3-29
Interfaces: Overview
MM
PP
PPPDC
HR
PM
PS
PPKAN
Plant
data recording
PP
PP
PI
WM
MM
QM-IDI PP-REM PP-CAD PI-PCS WM-LSR MM-MOB

interinterinterinterinterinterface
face
face
face
face
face
PDC interfaces
Time
recording
QM
R/3
PM
PS
Kanban
data
data
rerecording cording
Inspect.
processing
(LIMS)
Material
data
recording
CADintegration
Process
control
Warehouse
control
Mobile
data
entry
Subsystem
SAP AG 2003
PDC interfaces (plant data collection) serve to exchange data between R/3 and subsystems (usually
plant data collection systems).
The PP-PDC interface has been specifically developed for production control.
For further information on this interface, see:
http://www.sap.com -> Partners -> Software -> interface certification -> integration scenarios ->
interface reference
Call up PP-PCD Plant Data Collection - R/3 Shop Floor Control.
SAP AG
SCM300
3-30
Production Order: Goods Receipt Posting
Order
Material
Stock quantity
Trans. requirement
G/L accounts
Goods receipt slip
Goods receipt
G/L accounts:
Stock account
Plant activity
Messages
Material
document
Acctg
document
Cost acctg
document
SAP AG 2002
The goods receipt posting (GR) realizes the stock receipt of a product produced using a production
order.
The following functions are executed when a goods receipt is posted.
- Generation of material documents, accounting documents and cost accounting documents
- The material document describes the goods movement from the materials management (stock)
point of view.
- The accounting document describes the goods movement from the financial accounting point of
view.
- The cost accounting documents serve various cost analysis purposes.
- When you display the material document, you can branch to the other documents.
- A goods receipt document can be printed.
- Update of the delivered quantity in an order
- Evaluation of the receipt
- Credit to order
- Update of plant activity
The GR posting is controlled via a movement type (101), to which each posting refers.
SAP AG
SCM300
3-31
This can take place manually or automatically.
SAP AG
SCM300
3-32
Cost Debit/Credit (Order-Related COC)

Order debit
Material costs
Production costs
External activity
Process costs
Overhead costs (material)
Material
withdrawal
Production order
M
E
V
X
G
Processing
Processing
1000 100-100
1421 4230
1310
External processing
300900
Surcharge, raw material
12,000
25,000
8,000
12,000
8,500
Goods
receipt
Confirmation
12
11
1
10
2
9
3
8
4
7 6 5
Order
Order
settlement
settlement
Archiving/
deleting
Credit production order

WE valuation control
Settlement profile
Settlement receiver
Material stock account (quantity * standard/price it. valuation variant)

Plant activity account (quantity * price it. valuation variant)
Actual costs at
time of
settlement
SAP AG 2002
Distribution rule
Settlement parameter
Settlement account (according
to allocation structure)
Difference account
The manner in which a production order is credited and debited depends on the variant of cost object
controlling (COC) selected in Controlling.
Both order-related and product-related execution is possible.
Order settlement credits the order.
Settlement is usually periodic.
It is controlled via a settlement profile.
It makes sense to use order-related COC for the following:
Flexible production environment
Flexible product range
Cost management of individual production lots
If cost controlling is required for each order
High setup costs
For in-house production of materials, it is generally best to use standard price control.
For more information about cost object controlling, see the courses AC510 or AC515.
SAP AG
SCM300
3-33
Cost Debit/Credit (Product-Related COC)

Order debit
Material costs
Production costs
External activity
Process costs
Overhead costs (material)
Material
withdrawal
Product cost collector

M
E
V
X
G
Processing
1000 100-100
1421 4230
1310
External processing
300900
Surcharge, raw material
12,000
25,000
8,000
12,000
8,500
Goods
receipt
Confirmation
12
11
1
10
2
9
3
8
4
7 6 5
Order
settlement
Archiving/
deleting
Credit product cost collector

WE valuation control
Settlement profile
Settlement receiver
Distribution rule
Material stock account (quantity * standard/price it. valuation variant)

Plant activity account (quantity * price it. valuation variant)
Actual costs at
time of
settlement
SAP AG 2002
Settlement parameter
Settlement account (according
to allocation structure)
Difference account
Settlement is period-oriented based on the costs of the product cost collector.

In this case, there is no order settlement for the individual production order.
The production order also does not have any costs or any settlement rule.
It makes sense to use product-related COC for the following:
Make-to-stock production
Repetitive production, mass production
Sales order controlling only in profitability analysis
SAP AG
SCM300
3-34
Mass Processing (HVOM)

Knowledge Work Bench Citrix ICA Client
Program
Edit
Goto
System
Help
Mass Processing: Production Orders

List
Profile
Standard profile
Selection
Mass processing
Function
Selection at header level

Production order
to
Material
to
Production plant
to
Planning plant:
to
Order Type
to
MRP controller
to
to
Sold-to party
to
Sales order
to
Sales order item
to
WBS element
to
Sequence number
to
to
Priority
Status selection profile
System status
excl.
and
excl.
Selection at operation level

to
Work center
to
Plant
Selection profile
System status
excl.
and
excl.
Selection at component level

Component
Plant
Storage location
Selection profile
System status
excl.
and
No function
Complete
Set user status / Delete
Print
Release
Calculation
Picking
Material availability
Log display
Confirmation
Complete technically
Scheduling
Generate capacity
requirements
WM material staging
excl.
Execute immediately
background processing
Generate function
indicator
Function-specific
parameters
Options
Start
SAP Logon 46A
Order information system: Detail ...
Mass processing f....
SAP AG 2003
Mass processing is available for production orders.

It is integrated in the order information system (COOIS) and works quickly and without dialog.
You can start mass processing with the options execute immediately, generate function indicator, or
background processing.
If orders are only marked, these indicators must be processed later with the program
COWORKDISPATCH.
A log book is kept for background processing (application log).
SAP AG
SCM300
3-35
Order Network
BOM structure
Order Structure
Finished
Finished product
product
Order
Order 11
52
Component 1
52
Assembly 1
Component 2
Assembly 3
Component 3
Assembly 4
Component 5
Order 2
52
Assembly 2
Order 3
Order 4
52
Component 4
Order 5
Component 6
SAP AG 2003
Order networks have the following advantages:

reduction of planning, administration and maintenance tasks
high transparency of complex order structures
clear overview of the relationships between orders
direct access to individual orders by double-clicking
cross-order execution of functions for the entire order network (date and quantity changes,
availability checks, releasing orders, confirmations)
Each component with the special procurement key "52" leads to an order in the order network.
All orders have the same order type.
The leading order can be created with an internal or external number.
Individual orders can be added or deleted.
You can choose to have automatic stock postings in the intermediate steps.
SAP AG
SCM300
3-36
Information Systems for Order Management

Info. systems
Basis
(1)
Multi-level order overview

for sales orders
Orders
(1)
(1)
Order structure
and operations
Missing part
record (index record)
Controlling reports
CO object of order

mySAP BI (BW)
BW InfoCubes
Production information system PPIS

as part of R/3 LIS
(logistics controlling system)
R/3 LIS Library
SAP AG 2002
There are several information systems for production orders.

They differ in the way they use the order database (directly or indirectly) as well as in their results.
Systems marked with (1) are profile-controlled. You set up the profiles in Customizing under
Production Control -> Information Systems.
If the systems are used for list creation in individual production orders, you can control the profile for
each order type in the order type-dependent parameters (T399X).
From the systems mentioned above, you can display capacity evaluations, batch where-used lists, and
other lists.
SAP AG
SCM300
3-37
Production Orders: Summary
The use of production orders is an order-oriented

production control option.
Production orders have specific characteristics based on
how they are used in different industries and branches.
An important characteristic of production orders is that
they are used in discrete industries.
The numerous special functions allow for a wide range of
applications.
SAP AG 2002
SAP AG
SCM300
3-38
Exercises
Unit:
Topic: Integration with Planning Order

Creation with Planned Orders
Order Structure
(SCM300 Exercise 1)
Material Requirements Planning (SAP R/3 MRP or SAP APO PP/DS)

Conversion of Planned Orders to Production Orders
Order Structure
Your company consistently uses automatic material requirements planning
based on SAP R/3 or SAP APO.
As the production manager, MRP controller or production scheduler, you
therefore create a large number of production orders based on planned orders
generated by the automatic material requirements planning run.
In this exercise, you will generate planned orders based on planned
independent requirements, convert them to production orders (individual and
collective conversion) and familiarize yourself with the order structure.
1-1
In this first step, adjust the interface and functionality of the stock/requirements list for
your requirements.
The stock/requirements list (SAP R/3) or the product view
(SAP APO) are important tools for the daily work of the
MRP controller and the production scheduler.
Choose: SAP menu Logistics Production Production Control Control

1-1-1 Choose the Individual access tab and select with the following:
Material
Plant
SAP AG
R-F1##
1000
SCM300
3-39
1-1-2 Assign the navigation profile for a production scheduler.
Environment Navigation profile Assign
Choose:
A Settings for User dialog box appears with several tabs.

You are already on the
General settings tab. Enter the following values:
Checking rule for ATP display:
PP
Navigation profile:
SCM310_01
Save the settings.

1-2 Check the stock/requirements situation for the materials.
R-F1##
Finished product
R-B3##
Assembly
and
Write down the current, non-restricted plant stock:

R-F1##
_______________________
R-B3##
_______________________
and
1-3 Use the following menu path in Sales to enter a sales order for the product R-F1## with
the order quantity 1 piece.
Choose: SAP menu Logistics Sales and Distribution Sale s Order
Create
Use the following requirements parameter:
Order Type
Sales organization
Distribution channel
Division
Sales office
Sold-to party
Ship-to party
PO number
Req. delivery date
SAP AG
OR
(standard order)
1000
10
(final customer sales)
00
(cross-division)
1000
(Frankfurt)
1000
(Becker Company, Berlin)
1000
(Becker Company, Berlin)
GR##_001
Current date + 1 month
SCM300
3-40
If the system suggests a different delivery date, confirm

this by choosing the symbol.
Save the order and write down the order number and item.
Order number: _______________________
________
1-4 Perform multi-level material requirements planning (single-item) for the product RF1xx.
Use the following data:
Processing key
NETCH
Create purchase requisition 3
(only planned orders)
Delivery schedules
(none)
Create MRP list
(always)
Planning mode
(normal mode)
Scheduling
(lead time scheduling)
Do not select anything else.

Choose: SAP menu Logistics Production MRP Planning
Single-Item, Multi-Level
1-5
Check the stock/requirements situation again for the materials

R-F1## and R-B3##
Planned orders must have been generated!
SAP AG
SCM300
3-41
1-6 Choose a planned order for the material R-F1##..

Number of the planned order: ___________________________
1-6-1 Display the details for the planned order from the stock/requirements list.
Choose: Double-click the order number.

1-6-2 Choose the Header tab, and make a note of the planned dates.
Order start date:
___________________________
Order finish date :
___________________________
Opening date:
___________________________
Availability date:
___________________________
Does the planned order have a production version?

Answer:
_____
1-6-3 Choose the Assignment tab to find the responsible production scheduler.
Production scheduler: _____
1-6-4 Display the material components (dependent requirements) of the planned order.
Choose:
Components.
1-6-5 Convert the planned order with the total quantity to a production order of the
order type PP01.
To do this, follow the menu path in production control.
Choose: SAP menu Logistics Production Production control Order
Create From Planned Order
Save the production order!
Write down the number of the production order created.
Number of the production order:
SAP AG
________________
SCM300
3-42
1-6-6 Is the converted planned order still in the stock/requirements list?

Answer: _____
Planned orders can also be converted to production orders
from the stock/requirements list.
To do this, choose the planned order by double-clicking it.

Choose Production Order.
1-6-7 Check the header in the production order (on the Assignment tab).
Here the planned order number is still visible.
1-7 Convert several planned orders to production orders at the same time.
Use collective conversion to do this.
Create Collective Conversion of Planned Orders
Select the planned orders to be converted with the following parameters:
Planning plant:
1000
MRP controller
0##
Material
R-F1##
Order Type
Order type
Limit the selection date (to one month before or one month after the current date)
Select the planned orders to be converted and choose
Convert.
Write down the numbers of the planned orders you converted:

Planned order no. ___________
Production order no. ________________
Planned order no. ___________
Production order no. ________________
Planned order no. ___________ Production order no. ________________

SAP AG
SCM300
3-43
2 In one of the production orders you generated, look at the individual data segments, screens,
and data fields.
Write down any questions you may have about the meaning of the
data fields
and ask the trainer.

Change
2-1 Order header screens
Choose:
Goto Header
Choose the appropriate tab for the screen.

General
Assignment
Goods receipt
Control
Dates/quantities
Master data
Long text
Also notice the settlement rule of the order.
Choose: Header Settlement Rule
2-2 Overview of operation sequences
Choose:
Goto Overviews Sequence overview
2-3 Operation sequence details

Choose:
SAP AG
Sequence Details
SCM300
3-44
2-4 Operation overview
Choose:
Goto Overviews Operations
2-5 Operation screens (choose operation 0010)
Choose:
Operation Operation details

2-6 Material components - Overview
Choose:
Goto Overviews Components
2-7 Material component screens (choose component 0010)
Choose:
Component Component details

Item 0010 General data, description
2-8 Production resource/tool overview for operation 0010
Choose:
Go to the operation overview and choose operation 0010.

Choose the pushbutton PRT (production resources and tools) in the lower
toolbar.
SAP AG
SCM300
3-45
2-9 PRT screens (choose PRT 0010)
Choose:
Production Resource/Tool Details Production Resource/Tool

Item 0010
General data, quantities, dates
2-10 Document overview
Choose:
Goto Overviews Documents
2-11 Display the document info record (choose the first document).
Choose:
Document Display document info record
Choose the appropriate tab for the screen

2-12 Display the original document (look at both originals in the document overview of the
order)
Choose:
2-13 Costs
Choose:
SAP AG
Document Display original document

Itemization
Analysis
(cost elements)
Cost component split
(cost components)
Goto Costs Itemization Analyze Cost Component Split
SCM300
3-46
Exercises
Unit: Order-Controlled Production with Production
Orders
Topic: Order Release and Order Processing
(SCM300 Exercise 2)
Order release
Printing Shop Floor Papers
Material staging
Material withdrawal
Backflushing
Your company uses production orders to control production. As the
production manager or production scheduler, you are responsible for
shop floor control, and as an employee in production, you work based on
production orders.
In this exercise you will perform the whole management process for a
production order. It starts with the release of production orders and ends
with the goods receipt of the material produced.
You will use the order information system to control this whole process.
1
Perform collective production order release for all orders with your production
scheduler number.
Notice the default release period.
Choose: SAP menu Logistics Production Production control Control

Collective Release
SAP AG
SCM300
3-47
1-1
1-2
On the Selection tab, use the following parameters to select:

List
Order Headers
Profile
Collective Release
Production plant
1000
Order Type
Order type
0##
System status
REL
(exclusive)
On the Mass processing Release tab, make the following settings:

Function Release
Execute function immediately
Function parameters:
1-3
1-4
Order release
Select all production orders and start the release (mass processing).
Choose:
Start the selection.
Choose:
Mass Processing Execute
Check the release log for any errors.

Choose: Mass Processing Log of last MP
or
Order.
1-5
Check the status changes in one of the production orders.

What is the new status? Answer: ______
SAP AG
SCM300
3-48
Print all the shop floor papers for all the released orders of your production scheduler
number.
2-1
Use mass processing to print the production orders.

Choose: SAP menu Logistics Production Production Control
Control Print
2-1-1
On the Selection tab, use the following parameters to select:
2-1-2
List
Order Headers
Profile
Order print
Production plant
1000
Order Type
Order type
0##
Status selection profile
PP00008
On the Mass processing Printing of shop floor papers tab, make the
following settings:
Function Printing of shop floor papers
Execute function immediately
Function parameters: Original print
The print mode original print prints all of the operations of the order
that are not printed and are released.
2-3
SAP AG
Select all production orders and start printing (mass processing).
Choose:
Start the selection.
Choose:
Mass Processing Execute
SCM300
3-49
2-4
Check the print log for any errors.

Choose: Mass Processing -> Log of last MP
or
Order.
2-5
Use transaction SP01 to display and check the printing results.

Choose: System Services Output controller
Use your user name and the current date to select.
2-6
Check the status changes in one of the production orders.

What is the new status? Answer: _____
Perform material staging and the goods issue posting for all the released orders of your
production scheduler number.
3-1
Create a pick list for staging the material components of the order in stock.
Choose: Sap menu Logistics Production Production control Goods
Movements Material Staging Pick
3-1-1 First select the orders with the following parameters:
Profile
000002 (standard pick profile)
Plant
1000
Order Type
Order type
0##
3-1-2 Use the Pick function to post the goods issues and save the results.
Select all of the components in the list and choose Pick.
Note: If there is not enough stock to perform a material

withdrawal, use transaction MB1C, movement type 561, to
perform an other goods receipt for the material.
Post a sufficient quantity.
SAP AG
SCM300
3-50
To display errors, choose Environment ->Errors in picking.
3-2
Look at the update in an order (documented goods movements, withdrawal

quantities, actual costs)
3-3
Check the status change in the production order.

What is the new status?
Answer:
_____
Choose one of the orders processed so far for material R-F1## to perform confirmations.
Order number: _____________________
4-1
Perform a final confirmation (quantity and time) for operation 0070. Use the
operation-related confirmation for the progress confirmation.
Confirmation Enter For Operation Progress Confirmation
This type of operation-related confirmation confirms all

operations automatically and by quantity.
4-2
Display the confirmations performed for the order.

Choose: SAP menu Logistics Production Production control
Confirmation Display
Choose Enter.
4-3
SAP AG
Look at the update (actual quantities, status, costs) in the order (order header,
operations).
SCM300
3-51
4-4
Check the material stock for material R-F1##.

Material stock: ______________
Information System Stock Overview
4-5
Was the stock receipt posted automatically?

Answer: _____
4-6
Is the order still in the stock/requirements list?

Answer:
4-7
_____
Check the status change in the production order.

Answer:
_____
_____
Post a goods receipt for the whole order quantity of a different production order for
material R-F1##.
Choose: SAP menu Logistics Production Production control Goods
Movements Goods Receipt
The movement type for the goods receipt from production

can be found in the menu.
5-1-1 Go to the detail screen for the posting and check the data.
Choose: Copy and Detail.
5-1-2 Generate the overview for the goods receipt posting.
Choose:
Copy.
5-1-3 Save the goods receipt posting.

Material document no. ___________
SAP AG
SCM300
3-52
5-2
Check the update of the delivered quantity in the order.

Answer: _____
Use the order information system to check the order progress for all production orders
of your production scheduler number.
Choose: SAP menu Logistics Production Production Control Information
System Order Information System
6-1
6-2
Select the orders with the following parameters:

List
Order Headers
Profile
(no profile)
Layout
/SCM310_001
Production plant
1000
Order Type
Order type
0##
Are the orders that have already been delivered displayed?

Answer:
6-3
_____
Call up the order information system again with the following lists in the
selection screen (all other data remains the same)
6-3-1 List Documented Goods Movements
6-3-2 List Operations
6-3-3 List Object Overview
For technical reasons, the system hides the layout and

displays profile 000000000001.
In the list generated, you can expand individual objects
(operations, components) of an order.
SAP AG
SCM300
3-53
SAP AG
SCM300
3-54
Solutions
Unit: Order-Controlled Production with
Production Orders
Topic: Integration with Planning
Order Creation with Planned Orders
Order Structure
(SCM300 Exercise 1)
1-6-2 Answer:
no
1-6-6 Answer:
no
SAP AG
SCM300
3-55
SAP AG
SCM300
3-56
Solutions
Unit: Order-Controlled Production with
Production Orders
Topic: Order Release and Order Processing
(SCM300 Exercise 2)
1-5
Answer:
REL
2-6
Answer:
PRIN
3-3
Answer:
GMPS
4-5
Answer:
Yes
4-6
Answer:
no
4-7
Answer:
CNF
DLV
5-2
Answer:
DLV
6-2
Answer:
Yes
SAP AG
SCM300
3-57
SAP AG
SCM300
3-58
Course Overview
22
Introduction
with Process Orders
6
7
8
Repetitive
Manufacturing
Kanban
Summary
SAP AG 2002
SAP AG
SCM300
2-1
Introduction
Contents:
mySAP SCM - Production Types
SAP AG 2003
SAP AG
SCM300
2-2
Introduction: Unit Objectives

Name the production types supported within
mySAP SCM
SAP AG 2003
SAP AG
SCM300
2-3
The mySAP SCM (Supply Chain Management) Solution
Partner
Vendor
Planning
Strategy
Supply Chain Design
Supply Source
External
Procurement
Sales and
Delivery Planning
Production
Manufacturing
Delivery
Order
Fulfillment
Supply Chain Performance Management
Customer
Partner
Supply Chain Event Management

SAP AG 2003
mySAP Supply Chain Management (SCM) is a complete solution that allows a company to efficiently
plan, create and control products or services within complex logistics networks.
This solution supports a synchronized and close interaction between all departments involved (and all
people involved) within a logistics chain.
Customers, sales, production planning, manufacturing, warehouse management, purchasing, and vendors
are all included in this complete solution.
Especially the processing of cross-company processes or collaborative planning and procurement
processes, which also allow for a connection to an open market place, is a main feature of this solution.
SAP AG
SCM300
2-4
mySAP SCM - Production Types (1)

Make-to-order prod.
Order-controlled production with production order
Lot
Lot
Lot
Lot
Lot
Lot
Unit 3
Work center
Process manufacturing
Resource
Project-oriented
production
Production
lot
07/15
Sales
order
Order-controlled production with process order
Unit 4
Project-oriented production with production lots
Unit 5
08/20
SAP AG 2003
Depending on the manufacturing process, product complexity, stability of production and further criteria,
a manufacturing company has various requirements with regard to shop floor control.
For this reason, mySAP SCM supports a variety of production types.
SAP AG
SCM300
2-5
mySAP SCM - Production Types (2)

Repetitive
manufacturing
Production line
Kanban
l
ful
u ll
full
Period and quantity-oriented production

Not order-related
Unit 6
Replenishment-controlled using stock transfer,

external procurement, in-house production via
self-controlled control cycle
Unit 7
empty
Kanban
SAP AG 2003
SAP AG
SCM300
2-6
Introduction: Summary
Various production types are available within

mySAP SCM.
SAP AG 2003
SAP AG
SCM300
2-7
SAP AG
SCM300
2-8
Course Overview
Contents:
z Course Goals
z Course Objectives
z Course Content
z Course Overview Diagram
z Main Business Scenario
SAP AG 2002
SAP AG
SCM300
1-1
Course Goals
This course will provide you with:

z A basic understanding of the positioning,
integration and functions in the Production area
within mySAP SCM
z An overview of the production types supported
within mySAP SCM
SAP AG 2003
SAP AG
SCM300
1-2
Course Objectives
At the conclusion of this course, you will be able to:

z Describe basic shop floor control procedures and
functions in mySAP SCM
z Understand basic scenarios in the SAP System
SAP AG 2002
SAP AG
SCM300
1-3
Course Content
Preface
Unit 1
Course Overview
Unit 2
Introduction
Unit 3
Unit 4
Unit 5
Unit 6
Unit 7
KANBAN
Unit 8
Summary
Appendix: mySAP Business Suite and Production
SAP AG 2003
SAP AG
SCM300
1-4
1
11
Course Overview
Introduction
with Process Orders
6
7
8
Repetitive
Manufacturing
Kanban
Summary
SAP AG 2002
SAP AG
SCM300
1-5
z Your company implements the mySAP Business

Suite.
z You are either a member of the project team
responsible for implementing the shop floor control
functions or you are in the production department.
z You will use various scenarios to get an overview
of the possibilities and functions of the production
types supported in mySAP Supply Chain
Management.
SAP AG 2003
SAP AG
SCM300
1-6
Copyright
Copyright 2003 SAP AG. All rights reserved.

No part of this publication may be reproduced or transmitted in
any form or for any purpose without the express permission of
SAP AG. The information contained herein may be changed
without prior notice.
All rights reserved.
SAP AG 2003
Trademarks:
Some software products marketed by SAP AG and its distributors contain proprietary software
components of other software vendors.
Microsoft, WINDOWS, NT, EXCEL, Word, PowerPoint and SQL Server are registered
trademarks of Microsoft Corporation.
IBM, DB2, DB2 Universal Database, OS/2, Parallel Sysplex, MVS/ESA, AIX, S/390,
AS/400, OS/390, OS/400, iSeries, pSeries, xSeries, zSeries, z/OS, AFP, Intelligent Miner,
WebSphere, Netfinity, Tivoli, Informix and Informix Dynamic ServerTM are trademarks of IBM
Corporation in USA and/or other countries.
ORACLE is a registered trademark of ORACLE Corporation.
UNIX, X/Open, OSF/1, and Motif are registered trademarks of the Open Group.
Citrix, the Citrix logo, ICA, Program Neighborhood, MetaFrame, WinFrame, VideoFrame,
MultiWin and other Citrix product names referenced herein are trademarks of Citrix Systems, Inc.
HTML, DHTML, XML, XHTML are trademarks or registered trademarks of W3C, World Wide Web
Consortium, Massachusetts Institute of Technology.
JAVA is a registered trademark of Sun Microsystems, Inc.
JAVASCRIPT is a registered trademark of Sun Microsystems, Inc., used under license for technology
invented and implemented by Netscape.
MarketSet and Enterprise Buyer are jointly owned trademarks of SAP AG and Commerce One.
SAP, SAP Logo, R/2, R/3, mySAP, mySAP.com, and other SAP products and services mentioned herein as well as
their respective logos are trademarks or registered trademarks of SAP AG in Germany and in several other
countries all over the world. All other product and service names mentioned are the trademarks of their respective
companies.
SAP AG
SCM300
-2
Course Prerequisites
Required
SAPSCM (mySAP Supply Chain Management
Overview)
Recommended:
SCM200 (Supply Chain Planning Overview)
PLM100 (Lifecycle Data Management)
SAP AG 2003
SAP AG
SCM300
-3
Target Group
Participants:
This course is intended for project team members
and key users (people from the specific
departments) who are responsible for introducing
shop floor control with mySAP SCM.
Duration: 3 days
SAP AG 2003
Notes to the user

The training materials are not teach-yourself programs. They complement the course instructor's
explanations. Your material includes space for writing down this additional information.
SAP AG
SCM300
-4

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SCM300 Supply Chain Manufacturing Overview

Supply Chain Manufacturing Overview

THE BEST-RUN E-BUSINESSES RUN SAP

System R/3 ERP, Enterprise Extension Set 1.10

Appendix: mySAP Business Suite and Production

Value Creation Using the mySAP Business Suite

SAP Enterprise Portal

SAP Customer Service Network

Application Platform (Web AS)

mySAP Enterprise Portals

mySAP Aerospace & Defense

mySAP Customer Relationship

mySAP Mill Products

mySAP Supply Chain Management

mySAP Consumer Products

mySAP Oil & Gas

mySAP Supplier Relationship

mySAP Engineering & Construction

mySAP Financial Service Provider

mySAP Public Sector

mySAP High Tech

mySAP Service Providers

mySAP Higher Education &

mySAP Hosted Solutions

mySAP Business Intelligence

Infrastructure und Services

mySAP Public Sector

mySAP Higher Ed. & Research

mySAP Financial S. Provider

mySAP Service Providers

mySAP Oil & Gas

mySAP Mill Products

mySAP High Tech

mySAP Enterprise Portals

The mySAP SCM (Supply Chain Management) Solution

Supply Chain Collaboration

Supply Chain Collaboration

Supply Chain Performance Management

Supply Chain Event Management

Key Areas in the mySAP SCM Solution

Supply Chain Technology:

The mySAP Enterprise Portals Solutions

Web Browser Access

other Internet Services

Components in the Planning and Production Areas

Integration of Production in Planning

Plnd ind. reqmts

Goods issue of comp.

Capacity requirements planning

Supply Chain Planning: Overview

SCM Production / External Procurement

Master Data for Planning and Production

Work center / resource /

Transaction Data for Planning and Production

Course Overview Diagram

Overview of Production Types (Basic Functions)

Printing of shop floor papers

Overview of Production Types (Special Functions)

(1) By-products only

Overview of Production Types (3)

Link to process control level

(Control recipes, PI sheets, process