assignment 8: the production business process in sap

Molde University College. IBE430 Business Processes, Fall 2018 by Bjørn Jæger

EXERCISE

Assignment 8: The Production Business Process in SAP

You are playing the role of several workers at the factory plant in Dallas USA. The

factory is a part of the multi-national Global Bike Incorporated (GBI). The product

you are going to produce is a red touring bike.

The Assignment consists of the following Exercises:

Exercise PP0: General Introduction to Production

Exercise PP1: Request Production of 10 bikes

Exercise PP2: Authorize Production

Exercise PP3: Issue Raw Materials

Exercise PP4: Create Products

Exercise PP5: Receive Finished Goods


EXERCISE

Exercise PP0: Introduction to Production

PP0-A)

PP0-B)

Describe the three major types of master data used by the Production Process

What is the time to assemble one skateboard according to the example in the

book? (Check Figure 5.4 p. 104)

Assume the Assemble operation takes too much time. You, as the Production

Manager, finds that workers to do the assembly in an inefficient way, each spending

time to decide what to do first. You develop a more detailed description consisting of

four assembly operations numbered 21, 22, 23 and 24 to be used instead of operation

20. The new structured operations are scheduled to take half the time of the previous

assembly operation. See Table 1.

Operasjons-

nummer

Arbeidsstasjon Arbeidstid

i minutter

Operasjon Materialer som skal benyttes

21 230 Assembly 0,5 Insert the 8 bolts through the

holes in the board.

Insert the bolts from the top side.

Bolt (material number Bolt100)

Board (material number STDK2200)

22 230 Assembly 0,5 Turn the board upside down.

Put a riser pad over the bolts at

the front and at the back.

Riser pad (material-number RPAD320)

23 230 Assembly 0,5 Put on the «Standard Truck

Assembly» unit onto the riser pad

at the front and at the back.

Standard Truck Assembly (material-

number STTA2100)

24 230 Assembly 1,5 Fasten a nut on each of the 8 bolts Nuts (material number NUT150)

Table 1: Detailed Assemble Operations 21-24 substituting Operation 20

PP0-C)

PP0-D)

PP0-E)

What is the time to assemble one skateboards according to Table 1?

What is the time to make 50 skateboards? (Tip: Do as in Table 5-1 Production

Time Calculation, but instead of operation 20 use operations 21, 22, 23 and 24)

What is the production capacity in number of skateboards per hour?


EXERCISE

The rest of the Exercises is related to Global Bike Company

in SAP

Exercise PP0-F) Use SAP to display the BOM of the Bike

Task Display BOM for the red touring bike and the components of the Touring Aluminum Wheel

Assembly within the finished bike BOM. Draw the BOM on paper.

Name (Position) Cathrine VanderBos (Plant Manager)

Logistics ► Production ► Master Data ► Bills of Material ► Reporting ► BOM Explosion ► Material BOM ► BOM Level by Level

Menu path

Field Name Data Entry

Material DXTR3### (Deluxe Touring Bike (Red))

Plant DL00 (Plant Dallas)

Alternative BOM (leave empty)

BOM Application PP01 (Production General)

Valid From Today's Date

Required qty. 1

Select the "Execute" icon: . You get a list similar to the one below.

The first column labeled "Lv" shows the BOM level of each item.


EXERCISE

PP0-F) Draw a graphical multi-level BOM figure for the bike using the

same style as the Multi-Level BOM shown in lecture 8. I.e. Make a figure

based on the two levels shown in the screen "Display BOM Level by Level" in

SAP.

When you are done, click on the exit icon twice to return to the SAP Easy

Access Menu, and then to get back to initial mode.

Exercise PP0-G: Get BOM information from SAP to Excel

Task Display the BOM for 20 red touring bikes, and export the information to Excel.

Name (Position) Cathrine VanderBos (Plant Manager)

Use the same menu as in Exercise PP1:

Logistics ► Production ► Master Data ► Bills of Material ► Reporting ► BOM Explosion ► Material BOM ► BOM Level by Level

Menu path

Also, use the same information as in Exercise PP1, but now for 10 bikes:


Material DXTR3### (red Touring Bike)


EXERCISE


Alternative BOM (leave empty)

BOM Application PP01 (Production General)

Valid From Today's Date

Required qty. 10

Select the "Execute" icon:

Get the information from SAP into Excel by using the -icon at the upper left

corner.

In the pop-up, select the MHTML format, Press Enter

Specify where to save the Excel file (one of your catalogs) and press

Confirm any questions asked (typically "Allow the file to be stored"), i.e. in

Norwegian press “Tillat” button:

Excel will start automatically displaying the BOM-information

PP0-G) Insert a formula in Excel that sums the number of components for all th

e10 bikes. Hand in a copy of your Excel – screen showing the calculated sum.

NOTE: The sum must include the parts in level 2 Touring Aluminium Wheel

Assembly. (The answer is not 250).

When you are done, quit Excel. In SAP, click on the exit icon twice to return to

the SAP Easy Access Menu, and then to get back to initial mode.


EXERCISE

Exercise PP1: Request Production

First, check how many bikes you have in your Finished Goods Inventory

Also, check if you have enough components in the raw materials storage / component

storage to produce 10 bikes.

Use the SAP menu "Stock/Requirements list" menu (MD04). See Figure 5.16 page 120 in the

book. It shows you:

1. How many bikes you have in stock

2. All current requirements for this bike

-- including planned orders, production orders, and also sales orders, purchase orders.

Name (Position) Chatrine VanderBos (Plant Manager)

Logistics ► Materials Management ► Inventory Management ►

Environment ► Stock ► Stock/Requirements List

See Figure 5.16 page 120 in the book.

Enter your Material: DXTR3### For Plant: DL00

The number you have in stock is displayed in the first line in "Available Qty".

You get something similar to: (If several lines are displayed, just ignore them)

How many bikes do you have in stock?

No matter how many you have, assume that you need 10 more.

Find how many components you need to produce 10 bikes by looking at your

BOM in PP0, check if you have enough components by using the SAP

“Stock/Requirements List” menu as above for each component.

Fill in the columns

- Quantity needed for 10 bikes (from the BOM shown in PP0)

- Quantity Available in Stock (Use SAP Stock/Requirements List)

Item (part) Material Quantity

needed for

1 bike

Quantity needed

for 10 bikes

Quantity

Available in

Stock

Eventual

Quantity

Missing

Menu path


EXERCISE

Logistics ► Production ► MRP ► Planned Order ► Create

Planned Order Profile: Stock Order

Then click on or press Enter

In the Create Planned Order: Stock order screen, enter:

Touring Frame-Red TRFR3### 1

Derailleur Gear

assembly

DGAM1### 1

Touring Seat Kit TRSK1### 1

Touring Handle Bar TRHB1### 1

Pedal Assembly PEDL1### 1

Chain CHAN1### 1

Brake Kit BRKT1### 1

Touring Aluminium

Wheel Assemble

TRWA1### 2

Packing PCKG1### 1

Warranty Document WDOC1### 1

NOTE: If you miss any of the materials, i.e. a positive number

in the right hand column, you must get enough materials into

stock before proceeding. Go to the Appendix at the last page for

a shortcut to get materials into stock (In a real-life situation, you

would have to run the Procurement process to buy missing

components.)

When you are done, quit Excel. In SAP, click on the exit icon to return to


Request Production of 10 bikes by creating a Planned Order

Request Production by creating a Planned Order for 10 red touring bikes. (This is part of Material

Requirements Planning (MRP) in SAP.)

Name (Position) David Bloomberg (Warehouse Manager)


EXERCISE


Material DXTR3### (Check that the bike is specified and not a component)

Planning Plant DL00 (Plant Dallas)

Order Quantity 10

Basic Dates

End

Start

Opening

Set one week from today as the order finish date

(leave blank, will be filled by SAP)

(leave blank, will be filled by SAP)

Producing Plant DL00 (Plant Dallas)

Stor. Location FG00

Press Enter You will get a screen similar to:

Save the Planned Order.

What is the number of the "Planned Order" that will be created?

When you are done, quit Excel. In SAP, click on the exit icon to return to the SAP Easy


Check that the Planned Order is displayed in your Stock/Requirements List

Logistics ► Materials Management ► Inventory Management ► Environment ► Stock ►

Stock/Requirements List


EXERCISE

Enter your Material: DXTR3###, for Plant: DL00

Find the Planned Order in the «Stock/Requirements List», what Date is displayed in the first

column?



Exercise PP2: Authorize Production

Exercise Authorize Production

Task Authorize Production by creating a Planned Order based on a Planned Order

Name (Position) Chatrine VanderBos (Plant Manager)

Logistics ► Production ► Shop Floor Control ► Order ► Create ► From Planned Order

Menu path

Fill in your Planned Order number (unless it is already filled by default).

Fill in Order type PP01 (Standard production order) to get:

Then, select or press Enter to get a screen similar to the one below.

The message: is displayed at the bottom of the screen,

meaning the Planned Order is converted into a Production Order (The Planned

order does dot exist anymore).

As a production manager you verify thhat the data is OK.

You save the Production Order.


EXERCISE

What is the number of your "Production Order"?



Check that the Production Order is displayed in your

Stock/Requirements List

Logistics ► Materials Management ► Inventory Management ►

Environment ► Stock ► Stock/Requirements List

Enter your Material: DXTR3###, for Plant: DL00

What is displayed at the line where the Planned Order was in the

«Stock/Requirements List»?




EXERCISE

Exercise PP3: Issue Raw Materials to Production Order

Exercise Use SAP to register issuing raw materials

Task: Based on the Production Order number, you requests SAP to display the list of materials to

be issued.

Name (Position) Tim Jones (Warehouse, see page 116 in the book by Magal & Word)

Logistics ► Materials Management ► Inventory Management ► Goods

Movement ► Goods Issue

This will produce the following screen

Fill in:


Movement Type 261 (Consumption for order from warehouse)


Then click on the button to get the screen below. In the screen,

Order corresponds to the Production Order Number. Enter your Production

Order Number, then press Enter


EXERCISE

You get the Enter Goods Issue Selection Screen displaying the materials

quantities needed:

Tim (you) must enter the Storage Location in the SLoc column to register

where you pick each component: (explained page 117 in Magal&Word)

Item Material Storage Location (SLoc):

Touring Aluminium Wheel Assemble TRWA1### SF00

Touring Frame-Red TRFR3### RM00

Derailleur Gear assembly DGAM1### RM00

Touring Seat Kit TRSK1### RM00

Touring Handle Bar TRHB1### RM00

Pedal Assembly PEDL1### RM00

Chain CHAN1### RM00

Brake Kit BRKT1### RM00

Warranty Document WDOC1### RM00

Packing PCKG1### RM00

Then select the Adopt icon , you will get a screen like:


EXERCISE

Then Save the issue of components/raw materials

What is the Document number for Goods Issue of components?



Exercise PP4: Create Products

Exercise Use SAP to confirm the Production Process

Name (Position) Mark McKendry (Shop Floor – see page 117 in Magal&Word)

After the materials have been issued to the Production Order in the previous

step, the actual production takes place. You can assume that the complete

production has been completed.

Now, Mark (you) confirm the completion of the Production Order in SAP.

Logistics ► Production ► Shop Floor Control ► Confirmation ► Enter ► For Order

Menu path

Enter your Production Order number and click on or Enter.


EXERCISE


Confirmation Type

Yield to conf. Enter the quantity you produced: 10

(See figure 5.14 page 118 in Magal&Word)

Save

What is the message by SAP when you saved the updated Production

Order?



Exercise PP5: Receive Finished Goods

Exercise Use SAP to register when you receive the 10 bikes in the finished goods storage

Task:

Name (Position) Tim Jones (Warehouse – see page 117-119 in Magal&Word)

Logistics ► Materials Management ► Inventory Management ► Goods

Movement ► Goods Receipt ► For Order

(If you get “Transaction MB31 is obsolete (SAP Note 1804812)” just ignore

it)

Menu path


Document Date Today's date

Posting date Today's date

Movement type 101 (Goods receipt for order into warehouse)

Order Your Production Order number


EXERCISE

Check the status of your Production Order:

Logistics ► Production ► Shop Floor Control ► Order ► Display


Storage Location FG00 Finished Goods

Print Select Print:

Click on the button . You should a screen similar to:

Check the box Deliv. Compl. circled by red above.

Click on the Adopt icon to accept the details.

You should get a screen like:

Save the Goods Receipt

What is the message from SAP when you saved the goods receipt?




EXERCISE

Enter your Production Order number, then click on or Enter. In the "Production order Display:

Header" screen, select the sheet named "Dates/Qties" to get a similar screen as:

How many bikes are «Delivered»?

Check your Stock/Requirements List

Logistics ► Materials Management ► Inventory Management ► Environment ► Stock

► Stock/Requirements List

How many bikes do you have in stock according to the Stock/Requirements list?



Congratulations, you have completed the SAP Production

Exercises


EXERCISE

Appendix: Get enough bike components in Inventory to start production (do this only if you did not have enough components in PP1) Usually, the purchasing department in Dallas would buy enough raw materials from vendors to fill the inventory so that the production process can be started. In this exercise, we bypass the procurement process by updating the SAP system stock overview to have 100 pieces of each component in the storage location.

Logistics ► Materials Management ► Inventory Management ► Goods Movements ► Goods Receipt ► Other

You get:

Enter today as both Document Date and Posting Date, Movement Type 561 (Receipt per initial

entry of stock balances into unr.-use), Plant DL00, and leave Storage Location blank. Then, press

Enter or click on .


EXERCISE

You get the “Enter Other Goods Receipts:New Item”-screen.

Enter the data in the table below. (Tip: you can speed up the typing by copy and paste the values in each

column. Remember to replace ### with your number)

(NOTE: All materials are stored in the raw materials storage RM00 in Dallas, except the touring wheel assembly in

the first line in the list. The touring wheel assembly is stored in the Semi-Finished Good - SF00 – storeage location.)

Material Quantity SLoc

1 TRWA1### 100 SF00

2 TRFR3### 100 RM00

3 DGAM1### 100 RM00

4 TRSK1### 100 RM00

5 TRHB1### 100 RM00

6 PEDL1### 100 RM00

7 CHAN1### 100 RM00

8 BRKT1### 100 RM00

9 PCKG1### 100 RM00

10 WDOC1### 100 RM00

Save the Goods receipt. Click on the exit icon to return to the SAP Easy Access Menu, and

then to get back to initial mode. Continue with the exercises.

assignment 8: the production business process in sap

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