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Quality ManagementQuality Management SystemSystem

Doc Id: Business_Blueprint_PP_1.0

BUSINESS BLUEPRINT

KAY BOUVET ENGINEERING PVT.LTD.

MY SAP ERP IMPLEMENTATION PROJECT

PP MODULE

SANDESH L.BONDE MR.KHANWILKAR

SAP Consultant-PP, B.P.O.ADROIT INFOTECH PVT. LTD. PUNE. K.B.E.P.L.

Date of issue : Issue 1, Template Version : 1.0 of 36Reviewed by: Kishor Joshi Approved by : Atul Joshi

Confidentiality Clause: Adroit InfoTech reserves the copyright on all material and ideas in this document. No material should bereproduced in any form (electronic or written), in part or whole without the express consent of Adroit InfoTech. The contents of this

document are strictly confidential and should not be shared with any other company without the prior permission of Adroit InfoTech.

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MODULES TO BE IMPLEMENTED

NO. MODULE

1 PP MODULE

2 QM MODULE

3 SD MODULE

4 FI MODULE

5 MM MODULE

6 CO MODULE

7 PS MODULE




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CONTENTS

No. TopicPage numbers

Start

1. PURPOSE 04

2 PRE REQUISITIES 04

3 ORGANIZATIONAL STRUCTURE 04

4 MATERIAL MASTER 07

A) BILL OF MATERIAL 09

B) WORK CENTER 11

C) ROUTING 15

5. PRODUCTION PLANNING- DEMAND MANAGEMENT 19

6. PRODUCTION PLANNING -MRP 20

7 MRP CONTROLLER 22

8 CAPACITY PLANNING 22

9 PRODUCTION PLANNING 25

10 PRODUCTION PROCESS EXECUTION 28

11 SAP PROCESS FLOW 31

12 PP STANDARD REPORT 32

13 ANNEXTURE 1 33

14BUSINESS PROCESS OWNER’S ACCEPTANCE SIGNOFF (BBP)

35

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1) PURPOSE:-

This document describes the proposed blue print for SAP Implementation at Kay BouvetEngineering Pvt. Ltd. (KBEPL). It outlines all the business processes associated withinthe scope of implementation. The intent of the document is to define the TO-BE modelfor the process for which an AS-IS study was conducted during the knowledge gatheringphase.The production planning within SAP (PP) would encompass all activities relating toMaterial Requirement Planning (MRP) and processing through production. It would

include master data maintenance and the controlling transactions needed for the same.

The document is a collaborative effort between the implementation team of AdroitInfoTech Pvt.Ltd., Pune and the Core Team of Kay Bouvet Engineering Pvt. Ltd. The

document also represents the agreement of the core team to the proposed processes inindividual modules of the project and also of the deviations, where an agreement needsto be reached on the process change. The blueprint aims to cover all the businessprocesses within the scope of the project and in case there are any processes which arenot covered for lack of clarity, better solution, etc these would be detailed as additions tothe blueprint as and when they are ready.

2) PRE- REQUISITIES:-

MASTER DATA & ORGANIZATIONAL DATA

We are required to have essential master and organizational data to perform the activity,such as the data reflects the organization structure of K.B.E.P.L. and master data thatsuits its operational focus.Following are the lists of data required.

• Organizational Structure

• Material Master

• BOM

•

Work center.*9369*-3

• Routing

3) ORGANIZATIONAL STRUCTURE:-

3.1 AS-IS AT KBEPL

At present no formal organizational structure exists at Kay Bouvet Engineering Pvt.Ltd.




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3.2 TO-BE AT KBEPL

B0

COMPANY

A company is an organizational unit in accounting, which represents a business

organization according to the requirement of commercial law in a particular country. Inthe SAP system, consolidation function in financial accounting is based on companies.

COMPANY KAY GROUP

COMPANY NAME KAY BOUVET ENGINEERING PVT.LTD.




CLIENT

COMPANY CODE

PRODUCTION PLANT

STORAGE LOCATION

WORK CENTER

EQUIPMENT

KAY GROUP

KBEL

KB01 KB03KB02

SL 01 SL 03SL 02

WC 01 WCWC 02

EQ EQEQ

Capacity

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For Production Planning Module, Plant and Storage Locations are the one’s which arerelevant. Detailed Organization Structure would be covered in more detail in FI (Finance)

Module, MM (Material Management) Module and SD (Sales and Distribution) Module.

COMPANY CODE

• Under the company, there will be 1 Company Code.

• A company code is an organizational unit of external accounting for which a

complete, self contained set of accounting can be created. This includes the entry

of all transactions that must be posted and creation of all items for legal

individual financial statements, such as the balance sheet, profit and lossstatements.

• The company code will be created in the system for KBEPL will be as under.

No. Company Code Name of the Company

1 KBEL Kay Bouvet Engineering Pvt.Ltd.

PLANT

• A plant is an organizational unit which subdivides an enterprise according to

production, procurement, maintenance and material planning.

• It is the place where materials are produced or goods and services are provided.

• A plant s assigned to company.

• A plant also has following in SAP ERP:

An Address

A LanguageA Country Assignment

A Work Day Calendar

• A plant is assigned to company.

• Purchasing

• Organization and sales organizations are assigned to plants.




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No. Plant Code Name Of the Plant Code

1 KB01 KBEPL Unit I

2 KB02 KBEPL Unit II

3 KB03 KBEPL Unit III

STORAGE LOCATION

• A location within a plant where inventory is stored.

• In KBEPL following locations are decided for Logistics.

No. Storage Location Type of Storage Location

1 KB11 FINISHED GOOD

2 KB12 SEMI FINISHED GOOD

3 KB13 SALES RETURN, REWORK & SUBCONTRACTING

4 KB14 RAW MATERIAL

5 KB15 GENERAL STORES

6 KB16 SCRAP STORES

4) MATERIAL MASTER:-




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• The material maser contains all the information of the material that a company

procures produces, stores and sells.

• The entire production process outlined for KBEPL can be described as follows:

I) Material planning through Customer Schedule.

II) Material Requirement Planning.

III)Production Execution.

IV) Dispatching.

PROCESS FLOW CHART AT KBEPL

VA01 MMBE MD61 MD02NO

OR1




ReceivingSales Order

StockAvailability

Planning Raw MaterialAvailability

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NO YES

ME21N

MIGO MB1C

CO01

QA11

MB1

C

VL01N

4 A) BILL OF MATERIAL

AS-IS AT KBEPL




Quality Check

Production

Quality Check

Goods Readyfor Dispatch

Procurement

PP

SD

MM

QM

Delivery toSales Order

Issue toProduction

Dept.

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Every component either a finish good or semi-finish goods will have complex BOM.

TO-BE / SAP-PROCESS AT KBEPL

For KBEPL it would be a Multi-Level BOM structure.

4. A.1 SCOPE OF THE DOCUMENT

The Scope of the document is restricted to Creation, Change and Display of Bill of

materials for Finished Materials, Semi finished Materials.

4. A.2 GENERAL EXPLANATION

• BOM is formally structure lists of components that makes of product or assembly.

• The lists would contain object no. of each component, together with the quantity

and unit of measure.

4. A.3 EXPLANATIONS FUNCTIONS AND EVENTS

4. A.3.1 BUSINESS PROCESS DETAILS

BOM’s are used in their different forms in various situations where a finishedproduct is produced from several components parts or materials. The data storedin the Bill of materials serves as basis for production planning activities such as

• In material requirements planning (MRP) Bills of Material are used to

calculate procurement or in-house production quantities for materials.

• In Production orders Bills of material are used for planning the issue of materials.

• During Production order confirmation, the BOM is used to update finished

goods stock of the parent material and back flush actual consumption of

component material.

• Stores personnel use the BOM goods issue of components for in-house or

sub-contracting applications.

• Product costing uses the BOM to calculate the costs of materials required for

a specific product.




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4. A.3.2 BOM STRUCTURE

BOM Structures are of two types:-1) Single-Level BOM structure.

2) Multi-Level BOM structure.

BOM Structure for KBEPL:-

• For KBEPL it would be a Multi-Level BOM structure:-

• In KBEPL, BOM is having only one usage, i.e. it would be production BOM.

• Every component either a Finished Good or a Semi Finished Good will have a

BOM.

• BOM will have each component that goes into product and for which productionand planning dept. wants to plan.




Item 1 Item 2 Item 3

Child Part

Multi Level BOM

Single-Level BOMSingle-Level BOM

ASSEMBLY

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• MRP will consider stock of raw material while net requirement calculation and MRP

controller decide whether the raw material can procure from outside or to cratepurchase order for the same.

REPORTING CONSIDERATIONS

• CS11 – Explode BOM Level by Level

• CS12 - Explode Multi level BOM

• CS13 – Summarized Bill of Material

LIST OF BUSINESS PROCESS PROCEDURES (BPP)

• CS01 – Create Bill of Material

• CS02 – Change Bill of Material

• CS03 – Display Bill of Material

• CS20 – Mass Changes

•

B) WORK CENTER:-

AS-IS AT KBEPL

Labor and Machines are work centers. Capacity utilization of all machines is 100%

In all Plant shift is for 8.00 Hrs.


Accordingly Capacity Category (labor or machine) will be used. Capacity Utilization of

each work center will be used as 100%.

Shift Timings of Work centers to be fixed according to plants (All shifts will be

maintained for each work center).

The creation, Change and Display of Work Centers will be done plant wise.

B.1 GENERAL EXPLANATION

• All machines and labors will be created in SAP as work centers masters.

• These masters will have the capacity availability details in terms of number of shifts, shift sequences, work breaks, and the cost center data.

• Following types of Work Centers would be created:




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1.Lathe Machines 9. Welding Machine.

2.Drilling Machines 10.Plasma Cutting Machine

3.Shaping Machines 11.Shearing Machine

4.Boring Machines 12.Hand Cutting Machine

5.Bending Machines 13.Pug Machines

6.Vertical Slotting Machine 14.Oven

7.Milling Machines 15.Profile Cutting Machine

8.Hack Saw Machine 16. Grinders.

DATA IN WORK CENTER WILL BE USE FOR

• Scheduling: - Operation times and formulas entered in the work center, so thatthe duration of an operation con be calculated.

• Costing: - Required costing formulas are entered in the work center, so that the

costs of an operation can be calculated. A work center is also assigned to a costcenter.

THE WORK CENTER WOULD SERVE THE FOLLOWING PURPOSES VIZ.

• To determine which machine or manpower is to be used in an operation.

• To calculate costs and dates for an operation.

• Work center can contain multiple types of capacity categories like Machine, Setupand Labor.

• Standard value key defined in the work centers will identify the parameters to becaptured. The typical standard values are setup time, machine time, labor time

etc. This can be maintained in Minutes etc.

• Work centers will be assigned to a cost center and there will be activity typesdefined in these cost centers. Activity types are evaluated for each cost center

and period with a charge rate that consists of a fixed portion and a variable(work-related) portion. These activity types determine the charge rate with which

costing is to be carried out for internal standard values viz., machine hours, setuptime and labour hours defined in the controlling module.

• The available capacity will be taken from the work centre in which is maintainedshift schedule and shift sequence.




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WORK CENTER CODIFICATION

UNIT I

O. MACHINE NAME

(MACHINE SHOP)

CODE NO. MACHINE NAME

(FABRICATION SHOP)

CODE

1. Horizontal Boring Machine,H160

1HBMH160 1. Welding Machine, TIG 01 1WMTIG01

2 Plaino Miller Machine, Heller 1PMHELLR 2 Welding Machine, TIG 02 1WMTIG02

3. Horizontal Boring Machine,Skoda

1HBSKODA 3. Welding Machine, CO2 01 1WMCO201

4. Horizontal Boring Machine,H80

1HBMCH80 4. Welding Machine, CO2 02 1WMCO202

5. Vertical Turret Lathe,VTL 1VTLATHE 5. Plate Bending, Upto 15mm 1PBEND15

6. Radial Drilling Machine,RDM5 1RDMRDM5 6. Shearing Machine,upto5mm 1SHEARM5

7 Radial Drilling Machine,Universal

1RDMUNIV 7 Hand Gas Cutting Machine,1 1HGCUT01

8 Radial Drilling Machine, 1RDRILLM 8 Hand Gas Cutting Machine,2 1HGCUT02

9 Lathe Machine,CL-6QMT 1LM06QMT 9 Hand Gas Cutting Machine,3 1HGCUT03

10 Lathe Machine,CL-7QMT 1LM07QMT 10 Hand Gas Cutting Machine,4 1HGCUT04

11 Shaper Machine 1SHAPERM 11 Hand Gas Cutting Machine,5 1HGCUT05

12 Vertical Sloting Machine,SL-9 1VSMCSL9 12 Hand Gas Cutting Machine,6 1HGCUT06

13 Milling Machine 1MILLING 13 Hand Gas Cutting Machine,7 1HGCUT07

14 Hand Gas Cutting Machine,8 1HGCUT08

15 Hand Gas Cutting Machine,9 1HGCUT09

16 Hand Gas CuttingMachine,10

1HGCUT10

17 Pug Machine,01 1PUGMC01






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20 Electrodes Drying Oven 1OVEN001

UNIT II

NO. MACHINE NAME(MACHINE SHOP)

CODE NO. MACHINE NAME(FABRICATION SHOP)

CODE

1. Radial DrillMachine,Imported01

2RDRIL01 1. Welding Transformers,1 to 33

2WTRAN01 to2WTRAN33

2 Radial Drill

Machine,Imported02

2RDRIL02 2 Welding Rectifier,01 2WRECT01

3. Stand Drill,01 2SDRIL01 3. Welding Rectifier,02 2WRECT02

4. Magnet Drill,01 2MDRIL01 4. Pug Machines, 1 to 11 2PUGMC01to2PUGMC11

5. Magnet Drill,02 2MDRIL02 5. Hand Grinder (7”), 1 to 14 2HGRI701 to2HGRI714

6. Magnet Drill,03 2MDRIL03 6. Hand Grinder (4”), 1 to 4 2HGRI401 to2HGRI404

7 Hand Drill,01 2HDRIL01 7 Table Grinder 2TBGRI01

8 Hand Drill,02 2HDRIL02 8 Shaft Grinder 2SHGRI01

9 Hydraulic Hack Saw 2HYHSW01 9 Straight Grinder 2STGRI01

10 Hyd. Pipe Bender 2HYPBD01 10 Electrodes Drying Oven 2OVEN002

11 Power Press 2PPRES01 11 Heating Torch,01 2HTORCH1

12 Pipe Cutter 2PCUTT01 12 Heating Torch,02 2HTORCH2

13 Lathe Machine 2LATHEMC 13 Plate Bending Machine 2PBENDMC

14 Sheet Cutter 2SHETCUT1 14

UNIT III

DIVISION I

NO. MACHINE NAME(MACHINE)

CODE NO. MACHINE NAME(FABRICATION)

CODE

1. Lathe Machine,01 3LATHM01 1. Welding Machines, 1 to26

3WELDM01 to3WELDM26

2 Lathe Machine,02 3LATHM02 2 Pug Machines, 1 to 14 3PUGMC01 to3PUGMC14

3. Lathe Machine,03 3LATHM03 3. Profile Cutting Machine 3PROFCM1

4. Lathe Machine,04 3LATHM04 4. Grinders, 1 to 20 3GRIND01 to3GRIND20

5. Lathe Machine,05 3LATHM05 5. Plate Bending & RollingMachine, 32 mm

3PBEND32

6. Lathe Machine,06 3LATHM06 6. Plate Bending & RollingMachine, 80 mm

3PBEND80




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7 Lathe Machine,07 3LATHM07 7

8 Shaping Machine,01 3SHAPRE1 8

9 Shaping Machine,02 3SHAPRE2 9

10 Radial Drilling Machine,01 3RDRIL01 10



13 Hack Saw Machine 3HACKS01 13

DIVISION II

NO. MACHINE NAME (MACHINE) CODE

1. Radial Drilling Machine ( COLB) 3RDRIL04

2 Radial Drilling Machine (To Be Install) 3RDRIL05

3. Boring Machine ( BFT 180) 3BMFT180

4. Boring Machine ( FB180 To Be Install) 3BMFB180

5. Boring Machine (BFT110 To BE Install) 3BMFT110

6. Vertical Turret Lathe ( To Be Install) 3VTLATHM

7 Milling Machine (Make BHOLE) 3MMBHOLE

8 CNC Gas Cutting Machine ( To Be Install) 3CNCGMC


• CR08 – Work Center Hierarchy Report

• CR06 – Work Center Assignment to Cost Centers

• CR07 – Work Center Capacities

• CR60 – Work Center information system


• CR01 – Creation of Work Center

• CR02 – Change of Work Center

• CR03 – Display of Work Center

• CR21 – Create Work Center Hierarchy

• CR22 – Change Work Center Hierarchy

• CR23 – Display Work Center Hierarchy

• CA85 – Replace

• CA80 – Work Center Where used list

C) ROUTING:-




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AS-IS AT KBEPL

For manufacturing one component, various machines are used; multiple work center

assignments are there.


While creating the production order user can select the routing by selecting theproduction version which contains that routing number.

C.1 GENERAL EXPLANATION

• A routing is a description of which operations have to be carried out in whichorder to produce a material which can be a Finish Product or a Semi-Finish

Product to be manufactured in-house.• Routing contains information about the work centers where the individual work

steps are carried out.

• Routing also contains the planned times for carrying out the operations (standardvalues).

C.2 ROUTING WOULD ALSO SERVE THE FOLLOWING PURPOSES VIZ.

For work scheduling which uses routing as a basis for operation planning and productioncontrol. The routing thus answers the questions like:

• Where the production is done?• How long it will take?

• What are the materials and tooling required?

• Components required for operation will be attached to operation as per BOM

norms.

• System will automatically group all the routings of a material under a groupnumber and this group number will be internal number generated by the system.

• Operation unit will be maintained in the units on which the output is measured

and monitored and hence it will vary from operation to operation in a routing.

• Any additional information on operation, routing will be maintained at therespective long text area.




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• All manufactured items will have routings (detailed routing for discrete

production) created in the system.


• CA51 – List of Routings for product/plant

• CA60 – Display Changes

• CA80 – Work Center Where Used List


•

CA01 – Creation of Routing• CA02 – Change of Routing

• CA03 – Display of Routing

• C223 – Create Production version

C.3 COST CENTER

DEFINITION

A cost center is part of an organization that does not produce direct profit and adds tothe cost of running a company.




Cost Center

Price Activity

TypeRouting

CostsFormulas

Work

Formula Std. Value

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EXAMPLE

Formulas

ACTIVITY TYPE

• A unit in a controlling area that classifies the activities performed in a cost center.

• Activity types in production cost centers are machine hours or finished units.




Cost Center Production

Price ActivityType

Work Center

Set up time

Op.qty.*Labor r time

Op.qty.*Mach.

time

Routing

100Rs/Hr. RVE

50RS/Hr. LAB

25RS/Hr. MAC

Setu time

Labor time

Mach.time

Costs

SET= 1 Hr.* 100 Rs./Hr.=100 Rs.LAB= 2 pcs.*2 Hr.* 50 Rs./Hr.=200 Rs.MAC=2 Pcs.*3 Hr.*25 Rs./Hr.=150 Rs.

Std. Values

1 Hr

2 Hr

3 Hr

Op.

10

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• Work centers only have an available capacity on working days. In order to

calculate the available capacity, a factory calendar has to be maintained, in whichthe working days are defined.

• You define the work start, work finish and break times for all work centers in a

shift definition.

• In shift sequences, you maintain the sequence of individual shift definitions for allshift sequences.

• The cost center that you want to assign the work center must exist and belong tothe same controlling area as the work center plant.

• At KBEPL we would be defining 3 Activity Types: 1) Machine, 2) Setup, 3) Labour

5) PRODUCTION PLANNING-DEMAND MANAGEMENT:-

5.1 AS-IS AT KBEPL

• Schedule from the customer is on the basis of planning for the Production.

• At times they also receive Customer Order instead of the Schedule; hence theyare using that Customer Order as a reference for production planning.

• Scheduling is done on the basis of customer order which can be monthly /

Quarterly.

• Schedule is then forwarded to the Purchase Dept. who is triggering theProcurement Cycle for Raw material / Semi-finish components / Bought-Out-Parts(BOP) etc. And meanwhile the BOP are received the PPC Department is preparesthe monthly production schedule for each item at FG level for all these

requirements. This gives a day wise item wise schedule for delivery of the FG.• The detailed Monthly production schedule is then circulated to all the concerned

departments in the plant for their necessary action.

• When PPC makes the monthly production plan they manually ensure that the planis as per the capacity of the plant.

• Purchase Dept. also schedules the delivery with the Vendor based on thisschedule received from Customer.

• Raw material and other required components for the production is received at

production to initiate the production activity.

5.2 TO-BE / SAP-PROCESS AT KBEPL

• Production schedules will be created by the system based on the base of PIRinput in the demand management.

• Requirements would be entered in Demand Management. The demandmanagement is the process of entering the requirements of a material that needsto be produced for future sales.

• Customer orders received will be entered in the Sales Module and the datatransfer to Production Planning module is done by the system.

• The requirements will be entered for a finished Product. The system considers therequirements entered in the demand management as the requirement quantities.




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• Based on the strategy selected for a material, the system considers other

elements like Sales order, stock etc before arriving at the net quantity that needsto be produced.

• Parameters like Plant, Requirements type (which will be based on the strategy),

For Net requirement planning (LSF), planning period etc. will be made as defaultfor each user who creates the demand.


• MD63 – Display Independent Requirements


• MD61 – Create Independent Requirements

• MD62 – Change Independent Requirements• MD73 – Display Total Requirement

6) PRODUCTION PLANNING-MATERIAL REQUIREMENT PLANNING.

6.1 AS-IS AT KBEPL

• Presently KBEPL is doing the Material Requirement Planning manually.

• They will collect the norms from Quality Management and the same will becirculated to Material management with order quantity and having time to timefollow up with stores people as per planning.\


• Planning procedures automatically generate order proposals to purchasing and toproduction. SAP planning procedures can be divided into Material Requirements

Planning.

• The main function of Material Requirements Planning is to give the guarantee of material availability to the shop floor.

• The output of MRP may either be procured or produced.

SOME SALIENT FEATURES OF MRP INCLUDE

• Planned Orders, Schedule lines and Purchase requisitions are generated.• The production or procurement quantity shall be based on the lot sizing

procedure specified for that material in the material master. In order to meetthese requirements, MRP calculates procurement quantities and dates as well asplans the corresponding procurement elements.

• The procurement element in the planning run is the planned order or, for external

procurement, the purchase requisition. Both the procurement elements areinternal planning elements that can be changed, rescheduled or deleted at any

time.

• If a material is produced in-house, the system also calculates the dependentrequirements, that is, the quantity of components required to produce the

finished product or the assembly, by exploding the BOM. If a material shortage




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exists, planned orders are created at every BOM level to cover proposedrequirements.

• For external procurement, the system then converts these planned procurement

elements into exact schedule lines set against schedule agreements. Materialsthat are procured externally trigger the purchasing procedure.

• The quantities made available by production or by external procurement areplaced in stock and or managed by inventory management.and are managed by Inventory Management.

CARRYING OUT THE MRP RUN

• MRP shall always be run at multi-level.

• This essentially means that the system explodes the Bill of Material for a material

and generates dependent requirements for assemblies and components.• These components are also planned to cover dependent requirements.

• If the components also have BOMs, the system explodes these BOMs also and

plans the components.

• The system repeats this process until all BOM levels have been exploded.

• While BOM explosion is carried out, the system will check for the status andvalidity of the BOM and shall consider only the specific BOM with active status

and which falls within the defined validity period.

• In specific cases where the dependent material schedule finish date falls laterthan the start date of its higher level material, the system will show exceptionmessages at the MRP list of the dependent material The user shall manuallyreschedule the higher-level material production to suit the schedule of the

dependent material. All materials will be grouped as per the department (as perMRP controller) using the specific material so as to enable each group to viewstock situations of materials relevant to their department. However, MRP shall berun at the material level or Plant level only.

• The systems shall assign number ranges for planned orders at each plant. If

Minimum and Maximum lot size specifies for material in the material master andthe system will create planned order quantities within the above range. In case

where the net requirement exceeds the maximum lot size, the system will createmultiple planned orders.

The possible values which are envisaged to be used in MRP run are:

• Processing key-NETCH

• Create purchase requisition-1,2,3• Delivery schedules-Schedule lines

• Create MRP list-MRP list

• Planning mode-Normal mode

• Scheduling-Lead time scheduling.

The net requirements calculation is carried out in MRP in the planning run after theplanning file check and at plant level. The system checks whether it is possible to coverrequirements with the plant stock and fixed receipts already planned. In the case of a

shortage the system creates a procurement proposal.




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•

MD01 – Total Planning Run (Plant Level)• MD02 – MRP Run (Single Item Multi Level)

• MD03 - MRP Run (Single Item Single Level)

• MD20 – Create Planning file entry

• MD04 – Display / Stock requirements situation

• MD05 – Display MRP List

• MD16 – Collective display of planned orders

• MD14 – Individual conversion of planned orders

• MD15 – Collective conversion of planned orders

• MDUM – Convert Planned order into Purchase requisitions

List of Transaction Codes related for Long Term Planning:

• MS31 – Create Planning Scenario

• MS32 – Change Planning Scenario

• MS33 – Display Planning Scenario

• MS01 – Total Planning Run (For Long Term Planning)

• MS02 – MRP Run, Single Item Multi Level (For Long Term Planning)

• MS04 – Stock Requirement List (Long Term Planning)

7) MRP CONTROLLER:-

7.1 AS-IS AT KBEPL

• At present the MRP is run by the respective Department, whosoever is in theneed of the material.

7.2 TO-BE / SAP-PROCESS AT KBEPL

We shall be defining an MRP Controller.

• Any material which takes part in Material Requirement Planning will be assigned

to a MRP Controller.

• The Heads of different sections would be the MRP controllers of their respectiveMRP areas.

• The identification of the MRP controllers in the SAP system is through a three digit

numeric code.

• For that purpose, the proposed naming convention of the respective heads will beas follows:

001002003

8) CAPACITY PLANNING:-




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AS-IS AT KBEPL

Production in Charge is checking the availability of machines & manpower capacity.Weekly preparation of plan on the basis of monthly plan for each machine, anddisplaying the same. (Fine tuning on daily basis for urgencies)As per production plan, machine load is calculated. Based on this man powerrequirement is generated. If short for the plan, check for overtime to meet the plan.


For each planned order/Production order, system will generate the capacity load on that

machine, which can be viewed at any point of time. For checking the manpowercapacity, manpower will be defined as work center of capacity category labor.Accordingly as per the availability of machine, user will convert the planned order intoproduction order, selecting the suitable production version which contains the routingnumber in which that work center is used.

As per the weekly plan, requirements will be given in the system in demandmanagement on weekly basis for a whole month together at the beginning of the month.

And MRP will be run on the basis of this weekly plan once in a month (at the beginningof the month).MRP Will be run on the Plant level.

8.1 PROCESS REQUIREMENT

• Check the Capacity Load on each work center• According to the load on each machine do the Production Planning

• Long term capacity planning to check the available manpower and machines. And

on the basis of this make a decision of either procuring new machine ormanpower

8.2 SCOPE OF THE DOCUMENT

The scope of this document is to check the capacity load on each work center andaccording to the Production planning.

8.3 PROCESS FLOW

8.3.1. GENERAL EXPLANATION

The economic use of resources is an objective for many areas of a company. Thecomponent Capacity Planning (PP-CRP) is available for this purpose.

Capacity planning comprises the following partial components:

CAPACITY EVALUATIONIn the capacity evaluation, available capacity and capacity requirements aredetermined and compared with each other in lists or graphics.




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CAPACITY LEVELING

The objectives of capacity leveling are:

• Optimal capacity commitment

• Selection of appropriate resources in most applications, you can use two types of

planning table (graphical and tabular versions) to display the capacity situationand to carry out capacity leveling.

EXPLANATIONS FUNCTIONS AND EVENTS

BUSINESS PROCESS DETAILS

Capacity planning supports planning in all its phases:

• long-term rough-cut planning

• medium-term planning

• short-term detailed planning

8.3.2 PROCESS FLOW




Requirements given indemand management

for finished materials

MRP PLANNINGRUN (PLANT LEVEL)

Planned Order createdwith capacity load on

work centermentioned in routing

of that material

Check the total load

on that machine

If load is more on any

work center thanmove the planned

order to other workcenter or change theproduction dates of that planned order

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• CM01- Work Center Load

• CM02 – Orders• CM50 – Work Center View

•

LIST OF BUSINESS PROCESS PROCEDURES

• CM21 – Planning Table (Graphical)

• CM22 - Planning Table (Tabular)

9) PRODUCTION PLANNING:-

AS-IS AT KBEPL

Production is based on sales order qty.


For the machining/fabrication after receiving the material will be reserved for the

processing (as per schedule) through the manual created production order (Work

Order).After that user will book the actual production of that material against thatproduction order.

T-Code: - CO01 /COOIS

9.1 PROCESS REQUIREMENT

Order from on the basis of detailed planning and shop floor execution. All the

intermediates and final product manufacturing will have an order to control its execution.

The document covers details about following for orders all leve




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• Order creation(Conversion from planned Order or manual creation)

• Lot Size (Production Planned Quantity)

•

Selection of Order type (Separate Order Types for each Plant)• Selection of production version (Different Production version for different Routing)

• Order Release (Approval for Production Order Execution)

• Inspections lot generation

• Material availability check

Using the order it is expected to control the above said process in shop floor. The Major

expectations from having an order would be

• Scheduling• Capacity requirements analysis

• Material Reservation

• Controlling goods movements

• Booking quantities produced and activities used

• Tracking the cost


The Scope of the document is to create the production orders for Semi finished and

finished products

ORDER TYPES

• Production order with specific order type will be created for each businessprocess, as per requirement. For each Production Plant, separate Order types willbe created. Each Order Types will have the different number range.

• Production Order of forming Material will be created manually. For rework thisalso separate order type will be created to differentiate it with other orders.




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9.2.1 PRODUCTION ORDER DESIGN FLOW

No

Yes




Production orderfrom R/3 MRP

Planned orderw.r.t.material/Production

Scheduler/Plant

Selection of

Productionversion

If no productionversion (Valid BOM,Routingautomatically copiedto production order)

Availability checkduring production

order creation

Decision for

production order

creation with

missing

parts/capacity

Productionorder creation& Release of orders.

Maintain

production

Maintain Routing

Master Data i.e.Operation time in

each operation,

components.

Maintain Work Center

Master Data.ie.

individual capacity,

capacity utilization,

Factory calendar,

Linkage to cost center.

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• COOIS – Production Order Information system

• MB25 – Material Reservation list• CO24 – Missing Part list


• MD04 - Stock/Requirement list

• CO01 - Production order Creation

• MD04 - Plan order to Production order creation directly.

• CO02 - Production order change

• CO03 - Production order Display

• CO40 – From Planned Order

• CO41 – From Planned Order (collectively)

10) PRODUCTION PROCESS EXECUTION:-

Execution of each production stage is controlled by its orders. The Step involved in

Production order execution are listed below

• Goods issue

• Production Execution start

• Item consumption entry

• Confirmation

• Order settlement

• Technically Completion (TECO)


The scope of this document is of execution of production order for manufacturing of

Semi Finished Good & Finished Good.




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10.2 PROCESS FLOW

GENERAL EXPLANATION

A Production order defines which material is to be produced, at which location, at whattime and how much work is required. It also defines which work centers are to be used

and how the order costs are to be settled.

GOODS ISSUE

Before you can start producing a material, all the necessary material components haveto be issued from stock via goods issues. The delivery to stock of the manufacturedmaterial is documented in the system via a goods receipt. Both types of goodsmovement trigger the following transactions in the system:

• A material document is created to record the goods movement.

• The stock quantities of the material are updated.

• The stock values are updated in the material master record and thestock/consumption accounts are updated.

ORDER CONFIRMATION

A confirmation documents the processing status of orders, operations, sub- operationsand Individual capacities. It is an instrument for controlling orders.With a confirmation you specify

• The quantity in an operation that was produced as yield, scrap and the quantity

to be reworked

• How much work was actually done

• Which work center was used for the operation

• Who carried out the operation




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After confirmation of production order, following activities takes place in system

• A reduction in the capacity load on the resource

•

An update of the costs, based on the confirmed data• An update of the order vs. production, such as times or order status

• Yield quantity, scrap qty, reason for variance accounting.

• Goods Receipt and Goods Issue

ORDER SETTLEMENT

When a production order is settled, the actual costs incurred for the order are settled toone or more receiver cost-objects (for example, to the account for the materialproduced).

TECHNICALLY COMPLETION OF ORDER

• Technical completion is the completion of a Production order from the logistics

point of view. It is also used when termination of an order is to be done

prematurely, or if the order was not properly executed and want to delete open

requirements of the order (for example, reservations, and capacity

requirements).

• Technically completion of order is necessary from costing point of view. Unless

and until order is technically complete, costing person can’t do the rest of the

costing activities.




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• Technical completion of order is possible to do in mass.

11) SAP PROCESS FLOW:-

Logistics General

Production Planning

Master Data

Material

Create Material

Change MaterialDisplay Material

Bill of Material

Create BOM

Change BOM

Display BOM

Work Center

Create Work Center

Change Work Center

Display Work Center

Routing

Create Routing

Change RoutingDisplay Routing

MRP

MRP Run

Total MRP

Single item Multiple Level

MRP List

Stock Requirement List.

Planned Order

Individual conversion to

production order

Collective conversion

production order.Production

Order

Production Order

Create

Change

Release

Order

Confirmation

Production

Confirmation

Partial Confirmation




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Final Confirmation

TECO-Completed

.

12) PP STANDARD REPORTS:-

Sr.No. Report Name Report Description T-Code

1 Order Information System The order information system isa tool for shop floor control with

a reporting function forproduction orders and planned

orders.

COOIS

CO28

2 Stock Overview Existing stock overview MMBE

3 Stock / Requirement List Dynamic Listing of current stock MD04

4 Order Progress Report CO46

5 Missing Part Information System Missing Part List Check CO24

6 Material Consumption This report can be used for

analyzing the actual materialusage against plan inmanufacturing process.

MCRE

7 Material List Standard material report MM60

8 BOM Explosion Report on Multi-Level BOM CS12

9 Where-Used List Material Responsible for givinginformation related to Bill of

Materials. Comparison of BOM

between two Materials

CS15

10 Order Information System:

Order View Report

CO26

11 Collective Display of Planned

Orders

MD16

ANNEXURE 1 – PROCESS MAPPING FOR PP




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D – Direct fit, W – Work around, N – Not in SAP, C – Customization

ACTIVITY STEP DATA INPUT DATA

OUTPUT

T-CODE

IN SAP

FITN

ESSD/W/N/C

RESPONSIBILITY/

AUTHORIZATION

R

EMA

R K

S

PROCESSING

SYSTEM (SAP,NON-SAP)

Material

Master

Bill of Material

Drawingrequired

Create BOM CS01 D/C MRP Controller SAP

WorkCenter

Codificationrequired

CreateWork Center

CR01 D/C MRP Controller SAP

Routing Set of operations

Create Routing CA01 D/C MRP Controller SAP

DemandManage

ment

Productio

nPlanning

Require

customerorder

includingdrawing.

Production

Schedules willbe created

MD61 D/C MRP Controller SAP

MRP Run MaterialAvailability

(eitherprocured orproduced)

MD02 D/C MRP Controller SAP

CapacityPlanning

Check thecapacityload oneachmachine.

Weeklypreparation of plan on thebasis of monthly plan

for eachmachine

CM01 D/C MRP Controller SAP

Production/Work

ordercreation

Sales order Actualproduction of

that materialagainst thatproductionorder.

CO01 D/C MRP Controller SAP

Production processexecution

Production/Work Order

Goods issue

Item

consumption

entry

Confirmation

CO11MB31

D/C MRP Controller SAP




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Order

settlement

TechnicallyCompletion

(TECO)




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BUSINESS PROCESS OWNER’S ACCEPTANCE SIGN OFF (BBP)

The Business Blue print (BBP) proposed by Business Process Consultant based on theinformation given by KBEPL representative in the ‘As Is’ workshops conducted. Theproposed solution covers all the existing business requirement of KBEPL developed basedon best practice functionalities supported by SAP. This document will be the base forconfiguring SAP for Production system.

INFORMATION APPROVED BY

Sr.No. Name Designation Date Signature

1 Mr. Uday Gidaveer Production In charge

2 Mr.Sawant Production In charge

3 Mr. Kaushal Production In charge

K.B.E.P.L. MANAGEMENT REPRESENTATIVE


1 Mr.P.B.Khanwilkar V.P.

2 Mr.Manish Ojha Project Manager

ADROIT INFOTECH MANAGEMENT REPRESENTATIVE


1 Mr.Kishor Joshi Delivery Manager

2 Mr.Ravindranath KC Project Manager

INFORMATION PREPARED AND PROPOSED BY


1 Mr.Sandesh Bonde SAP-PP Consultant

Date of issue : Issue 1, Template Version : 1.0 of 36

63917855-kbepl-pp-bbp

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