Typical Production cycle in Process Industry

By R.Balaji, Infosys Technologies

The below production cycle explains the basic business flow in “Process Industry”. The flow is generally focusing
only on Production and Quality Management

Simple Production Cycle:

Consider all Raw materials are available in plant and production process yet to start, the following stages are to be
followed

1. Create Process Order

Here we are creating a process order based on the capacity of the equipments and resource availability

2. Release the Process order

Once Process order created, it has to be released for production, means system will check the
scheduling, material availability, capacity planning, etc., and then release process takes place

3. Goods issue from the Stores

Once PO got released, goods issue against the process order will takes place

4. Start processing

Product process against the PO will start

5. Confirmation Process

After production, the final out put confirmation from the process will be entered

6. Goods Receipt Process

Goods receipt process plays a major role in any business here we have to do 101 movement type and do
the postings. In goods issue process they will issue the goods against PO in 261 movement type.

7. Quality Approval and Release

Once GR from the production was made, the material will come to Quality control for approval. Here QC
person will check the material and they will do the result recording and usage decision

8. Stock will appear in Unrestricted use for SALE / Further Process

Once usage decision was made the material will automatically moved into unrestricted use. The FG is
ready for sale

By keeping above all points in mind, the following masters and transactions are required to proceed
 S. Master Trans- T-code Description Where has to be used
No action

1 √ MM01 Create Material Used for creating Recipe and further

tracking
2 √ CRC1 Create Resource Machine / set of Machines used for making
the product
3 √ C201 Create Recipe Here we are calling resource and materials
required to make the finished product
4 √ QS21 Create MIC List of specifications to be checked for that
concerned finished goods
5 √ QP01 Create Quality Plan Creating Quality Plan
6 √ COR1 Create Process Initiating Production Process by creating
Order Process Order
7 √ MIGO with Goods Issue Process Goods issue to Manufacturing unit
261
movement
8 √ CORK Confirmation Production Output confirmation Process
Process
9 √ QA32 Quality Approval QC will approve and release for further
and Usage Decision process

Step by Step Execution Process:

Scenario Explanation:

REQUIREMENTS:

For a leading Process Manufacturing Company ABC, they are selling the product “FG 1”, the raw materials and
resource requirements are listed below

Raw Materials required for making 50kg of Finished Product, FG 1 are

S.No Material Code / Material Description Quantity required Unit of Measurement

Material Type
1 RM l 1 / ROH Raw Material 1 80 Kg
2 RM 2 /ROH Raw Material 2 20 Kg
3 BP 1 / FERT Byproduct 60 L

Resources required for making 50kg of Finished Product FG1

S.No Resource Code Resource Description Capacity

1 CRC-001 Reactor 2KL
2 CRC-002 Vessel 4KL

List of MASTERS required for addressing the above scenario

1. Create Materials using MM01 transactions in the following way:

In this screen select “select views” button and extend the following fields

We have selected basic information entries field. Fill the information and finally select the General plant / storage
data and give plant as 1100 and storage as 0001 in case of Raw material.

The same procedure has to be repeated for finished goods and Co-Products, in plant storage data we have to give
Plant 1100 and storage 0004.

2. Create Resource master using CRC 1 Transactio

Here we have to mention the Person responsible and standard value type “SAP1 – Normal Production”.
Here we are planning to give the controlling area and cost center. Finally save the data. The same
procedure has to be repeated for CRC-002

3. Create Recipe using resource and material in T-code C201

In the above screen we have to enter the material we want to produce “FG 1”, and give the plant code
and profile “PI01” then enter.

In the recipe header we have to enter the status as “4” and Usage as “1” , go for Operations screen
Here we have to call the resource and the description details, for example in reactor CRC-001, the
operations like Heating and transfer process will be carried out the same has been explained in this
description field. As per standard value key we have to give the duration for the operation time and labor
time. Both will be taken for scheduling.

In the material tab, we have to enter the version for the BOM and usage details, after that we have to
enter the list of raw materials required for making 50 kg of the FG 1 product. Here co-product is
generating so we have to give the co-product “BP 1” 60 L as “Negative” producing after the process (NOT
as INPUT) and activate as Co-Product by selecting the line item and press items tab and select co-
product tab.

In the header level line item we have the base quantity i.e Finished goods quantity, give 50 and save

Now Recipe is ready.

4. Create MIC using QS21 transaction

Here give the short text, field search and int. char.desc as pH and select the Quantitative check box.
pH have some ranges so, we have to select the limits are upper and lower spec limits.

The same way we have to create temperature also

5. Now create the Quality plan using QP01

Now we are planning to create the quality plans which are to be tested before release from QC

Header data details as above

Then Go to operations and give control key as QM01, select the line item and go to inspection description
tab.

Enter the MIC details here. While entering system will ask the upper spec and lower spec limits. Enter
limits and save

Masters are ready to proceed the Production Cycle

We will start Production Cycle using transactions

1. Create Process Order using COR1

Here give the total quantity as “50” and enter the start date, system will check the scheduling and capacity
planning and finally finish date will come.

Now, once the process is over check the master data, in that we can find the created recipe group for that
material “FG 1”
Now the PO stated us “Created”

Press the Flag button and ‘Release” the PO for production. After pressing flag button, actually system will
checks material availability, scheduling, capacity planning etc., Once it is over the status of the PO will be
changed to “Released mode”

Save the Process order.

2. Goods issue against the Process order using MIGO Transaction

Goods issue generally happens from store against the PO with the movement type 261

Once goods issue from the stores is over, the document number will be generated as below
Now go to process order and check the order status “GMPS” will appear, that means Goods Movement
Posted

Now Production process was started and completed. We are going to give confirmation using CORK
transaction

3. Confirmation using CORK Transaction

Once you enter, the yield quantity you have to confirm

Here in MM01, Quality Management views we have to activate the inspection lot origin “04” for inspection
triggering while making Goods receipt using 101 transaction. The following procedure has to be adopted.

Select Inspection set up tab and activate 04 inspection type.

This activity has to be done at the time of creation of Master (MM01)

4. Goods Receipt using MIGO with movement type 101

If you check this screen the outputs finished product 1 and co product 1 with the quantities viz., 50 and 60
will be there. We have activated QM view only for FG 1 and not for BP 1 material. So once GRN was
made the material FG 1 will be automatically moved to Quality inspection and BP 1 will be moved to
“unrestricted use”.

At the time of GRN we are creating the batch for FG 1 as “FG00000001”

For BP 1 we are creating Batch as “CO00000001”. The batch can be created at the time of creation of
Process order also.

Here we are mentioning the storage location for the final products “0004”

Once GRN made the document number will be generated for Accounting updates
5. Quality Approval and Release

Now check the MMBE view, in that the material FG 1 appears in “Quality inspection”

And at the same time BP 1 in which QM was not activated, the stock appears in Unrestricted use
Result recording and Usage decision process for the Material FG 1 batch FG00000001

Go to QA32 and give the inspection lot origin as”04” and press enter

Check the status. The system status should be “RELEASED”

Press “Results” button and do result recording

After entering the actual value the final screen will be like below

Now, go to Usage decision button in the same QA32 Transaction and do accept the batch
Once you save the inspection stock details will come

Enter the stock quantity “50” to unrestricted and check the MMBE view now

Material will be moved to unrestricted use . Now sales process will start.
The above cycle is simple production process generally carried out in “Process industries”