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PP Component Short Description SAP AG

2 December 1999

Copyright

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SAP AG PP Component Short Description

December 1999 3

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4 December 1999

Contents

PP Component Short Description .....................................................................6Production Planning and Control ................................................................................................ 7Basic Data....................................................................................................................................... 8

Bills of Material (see LO-MD-BOM)............................................................................................ 9Work Center ............................................................................................................................. 10Routing ..................................................................................................................................... 11CAPP-based Calculation of Standard Values .......................................................................... 12Production Resources/Tools .................................................................................................... 13

Sales & Operations Planning...................................................................................................... 14Master Data .............................................................................................................................. 15Sales Plan................................................................................................................................. 16Production Plan ........................................................................................................................ 17Distribution Requirements Planning ......................................................................................... 18

Production Planning.................................................................................................................... 19Material Forecast...................................................................................................................... 20Demand Management .............................................................................................................. 21Master Production Scheduling ................................................................................................. 22Long-Term Planning (Simulation)............................................................................................. 23

Capacity Planning........................................................................................................................ 24Scheduling................................................................................................................................ 26Capacity Loads......................................................................................................................... 27Capacity Evaluation.................................................................................................................. 28Capacity Leveling ..................................................................................................................... 29

Material Requirements Planning................................................................................................ 30Basic Data ................................................................................................................................ 31Planning Execution................................................................................................................... 32Procurement Proposal.............................................................................................................. 33Planning Evaluation.................................................................................................................. 34

Production Orders ....................................................................................................................... 35Order Planning ......................................................................................................................... 36

Header / Operation.............................................................................................................. 37Components ........................................................................................................................ 38Production Resources/Tools ............................................................................................... 39Trigger points ...................................................................................................................... 40

Order Processing...................................................................................................................... 41Order Close .............................................................................................................................. 42

Kanban.......................................................................................................................................... 43Control Cycle - Kanban ............................................................................................................ 44Kanban Control......................................................................................................................... 45Kanban Board........................................................................................................................... 46Creation of Master Data ........................................................................................................... 47Evaluations ............................................................................................................................... 48

Repetitive Manufacturing............................................................................................................ 49Run Schedule Header .............................................................................................................. 50Planning for Repetitive Manufacturing ..................................................................................... 51

Planning Run Schedule Quantities ..................................................................................... 52


December 1999 5

Planning............................................................................................................................... 53Creation of Master Data ........................................................................................................... 54Evaluation................................................................................................................................. 55

Assembly Processing ................................................................................................................. 56In Repetitive Manufacturing...................................................................................................... 57In Production by Lots................................................................................................................ 58

Production Planning for Process Industries ............................................................................ 59Basic Data ................................................................................................................................ 60

Resources ........................................................................................................................... 61Master Recipe ..................................................................................................................... 62

Process Order .......................................................................................................................... 63Order Execution .................................................................................................................. 64Order Closing ...................................................................................................................... 65

Capacity Planning..................................................................................................................... 66Process Management............................................................................................................... 67

Process Message................................................................................................................ 68Control Recipe..................................................................................................................... 69PI Sheet............................................................................................................................... 70

Process Data Documentation................................................................................................... 71Process Data Evaluation .......................................................................................................... 72

Plant Data Collection................................................................................................................... 73Work Order Time Recording..................................................................................................... 74Work Order Time Recording (PM Order) ................................................................................. 75Personnel Time Recording....................................................................................................... 76Project Time Recording ............................................................................................................ 77

Information System ..................................................................................................................... 78Reporting .................................................................................................................................. 79Planning.................................................................................................................................... 80Interface to Logistics Information Library (LIL) ......................................................................... 81Data Collection ......................................................................................................................... 82Early Warning System.............................................................................................................. 83


PP Component Short Description

6 December 1999

PP Component Short Description


Production Planning and Control

December 1999 7

Production Planning and ControlDefinitionThe PP System is a component of the R/3 System and is a highly integrated application softwarecovering all business functions in production planning and control. The performance of thecomplete system is achieved by integrated modules that each cover a logical group of functions.

Interfaces exist between the PP System and the following areas:

• Sales and Distribution (SD),

• Materials Management (MM)

• Controlling (CO)

• Project System (PS) and

• Personnel Planning (PD).

All modules are real-time applications, that is, quantities and values are saved directly meaningthat all users of the system have access to the same data which is always up-to-date.

Selection CriteriaThe functions in the Production Planning and Control system provide a far-reaching solution forplanning the demand program (type and quantity of product) as well as production. The planningof production includes procurement, warehousing and the transport of materials and intermediateproducts.


Basic Data

8 December 1999

Basic DataDefinitionThis component comprises the basic administrative and technical functions of Sales &Operations Planning (SOP).

Selection criteriaIf you intend to use Sales & Operations Planning, you must select this component.


Bills of Material (see LO-MD-BOM)

December 1999 9

Bills of Material (see LO-MD-BOM)DefinitionA bill of material is a complete, formally structured list of the components that make up an object.It contains the name, quantity, and unit of measure of each component.

Different forms of bills of material are used wherever an end product is assembled from severalcomponent parts or materials. Depending on the industry sector, they may also be referred to asrecipes, lists of ingredients, and so on.

Bills of material (BOMs) contain important master data for a number of organizational areaswithin a company, such as:

• materials planning

• staging of materials for production

• product costing

• plant maintenance

In the SAP System, you can create the following bills of material:

• material BOM

• equipment BOM

• functional location BOM

• document structure

• sales order BOM

Selection criteriaYou require this component if you want to use the SAP R/3 System to plan production, or if youwant to maintain bills of material for technical objects in plant maintenance. You also require thiscomponent if you want to organize comprehensive documents in the form of documentstructures.


Work Center

10 December 1999

Work CenterDefinitionA “work center” is an organizational unit where an operation is carried out, therefore, producingan output of work.

You assign a work center to a cost center for a specific time period.

With a work center, you can

• specify which machines or people are positioned in the operations.

• determine costs, capacities and dates for the operations.

Selection criteriaIf you choose these components, you can assign qualifications, positions and people from thePersonnel Planning and Development module (PD) to a “work center”.


Routing

December 1999 11

RoutingDefinitionA routing describes a sequence of work steps and resources required to produce a materialwithout reference to an order. Routings are used as a reference for production orders.

You can use the following routing types in Production Planning and Control:

• routings and reference operation sets

• rate routings and reference rate routings

You enter planned times for the execution of individual operations (standard values) in a routing.These standard values are the basis for lead time scheduling, product costing and capacityplanning. You use these values in a production order and can change them there, if necessary.

Selection criteriaYou need to select this component if you want to plan production in your company using the R/3System.

In addition to the routings in the PP module, the following are further task list types in the R/3System:

• master recipes (PP-PI)

• networks (PS)


CAPP-based Calculation of Standard Values

12 December 1999

CAPP-based Calculation of Standard ValuesDefinitionThe calculation of standard values with CAPP (CAPP = computer aided process planning)provides machine support for work scheduling to determine standard values in a routing.Formulas and tables are used for the calculation.

Selection criteriaIf you choose this component, you can have the system calculate standard values in a routing.


Production Resources/Tools

December 1999 13

Production Resources/ToolsDefinitionProduction resources/tools (PRT) are moveable operating resources used to form objects, suchas tools and fixtures, or used to check size, structure and efficiency, such as measurement andinspection devices. A production resource or tool can also be a document, such as a technicaldrawing or an NC program.

You assign production resources/tools to operations in task lists or orders where they arerequired.

Routing

Operation 10

Operation 20

Operation 30

PRT 1

PRT 2

Selection criteriaYou must select this component if you require production resources/tools to carry out operations.You can monitor the usage of production resources/tools as well as control their requirementsplanning.


Sales & Operations Planning

14 December 1999

Sales & Operations PlanningDefinitionSales & Operations Planning (SOP) is a flexible forecasting and planning tool with which sales,production, and other supply chain targets can be set on the basis of historical, existing, and/orestimated future data. Rough-cut planning can also be carried out to determine the amounts ofthe capacities and other resources required to meet these targets.

SOP supports both the high-level planning of complex planning hierarchies and the detailedplanning of finished products. Thus, either a top-down or a bottom-up approach to planning ispossible. The system can be configured either such that target key figures set at oneorganizational level are distributed automatically and consistently to all the other organizationallevels in the hierarchy (for example, to all distribution channels, materials, and plants in aparticular sales organization), or such that each level is planned separately.

Sales & Operations Planning is made up of two elements: standard SOP and flexible planning.Standard SOP comes largely preconfigured with the system. Flexible planning offers multipleoptions for customized configuration. Planning in standard SOP is based on product grouphierarchies and is always carried out level by level. Flexible planning is carried out on hierarchiescontaining any chosen organizational levels (for example, sales organization, distributionchannel, material, and plant). Moreover, in flexible planning the content and layout of planningscreens can be defined by the users.

Selection criteriaThis component focuses on standard SOP.

To run SOP in a distributed environment, select also Application Link Enabling (ALE).


Master Data

December 1999 15

Master DataDefinitionThis component comprises the master data you need as the basis for production planning forprocess industries. Master data is data that remains unchanged over an extended period of timeand is used in the same manner for similar objects. The following table contains the PP-PIspecific master data together with the components corresponding to it in discrete manufacturing.

Master data in PP-PI Corresponding component in discrete manufacturing

Resource Work center

Master recipe with material list Routing and bill of material (BOM)

Selection criteriaChoose this component if you want to use PP-PI in your company.


Sales Plan

16 December 1999

Sales PlanDefinitionUsing this component, you set sales targets for product groups or finished products. Plannedsales quantities can be passed on to Demand Management.

Selection criteriaIf you intend to use the standard SOP element of Sales & Operations Planning, select thiscomponent.


Production Plan

December 1999 17

Production PlanDefinitionUsing this component, you set the production quantities that are required to meet your salestargets. Planned production quantities can be passed on to Demand Management.

Selection criteriaIf you intend to use the standard SOP element of Sales & Operations Planning, select thiscomponent.


Distribution Requirements Planning

18 December 1999

Distribution Requirements PlanningSee Distribution Requirements Planning [Ext.]


Production Planning

December 1999 19

Production PlanningDefinitionIn Master Planning, the production quantities are defined for a certain interval.


Material Forecast

20 December 1999

Material ForecastDefinitionThe Material Forecast uses material consumption to calculate forecast values that can betransferred to demand management or consumption-based MRP. They are used as the basis forcreating the demand program and/or for calculating the reorder point and safety stockautomatically.

Selection CriteriaChoosing this component allows you to execute the forecast either as a mass forecast or as anindividual forecast. When maintaining planned independent requirements or the material masterrecord, you can also execute individual forecasts interactively for the material processed. Ifrequired, you can change the result of the forecast in a graphic.


Demand Management

December 1999 21

Demand ManagementDefinitionIn Demand Management, the future requirement quantities and dates are defined for finishedproducts and important assemblies. The strategy to be used for planning andproducing/procuring a certain finished product is also determined in demand management. Theresult is the demand program.

Selection CriteriaIf you select this component, you can either create the demand program manually and/or you canprocess preceding planning results (from sales planning, SOP, material forecast).


Master Production Scheduling

22 December 1999

Master Production SchedulingDefinitionIn Master Production Scheduling, those parts or products which greatly influence company profitsor which take up critical resources are marked as master schedule items and are planned withextra attention. Master schedule items may be finished products, assemblies, or even rawmaterials.

The SAP System supports a series of functions for master production scheduling to make itpossible to plan master schedule items carefully and, therefore, precisely.

These functions include:

• separate planning run for master schedule items

• planning time fence and fixing logic

• interactive planning

• special evaluation layout for master schedule items

Selection CriteriaIf you select this component, you can achieve a more exact capacity planning for critical partsand thus, you can improve the quality of planning.


Long-Term Planning (Simulation)

December 1999 23

Long-Term Planning (Simulation)DefinitionIn Long-Term Planning, various versions of the demand program can be created which areplanned in MRP and in capacity planning to calculate their effects (in simulative mode) on thefuture master plan. The system calculates capacity requirements, activity requirements for thecost centers and the number of purchased parts required.

The basis for long-term planning is provided by the operative PP basic data (including bills ofmaterials, routings and work centers).

Selection CriteriaIf you select this component, you can create an annual planning or a rolling quartarly planning, topreview the future stock and requirements situation. This means that you can make earlydecisions on whether other work centers are going to have to be used to cope with bottlenecks,or whether additional machinery will have to be purchased to reach the sales target.

Long-term planning can also be used to gain an overview of future requirements for materialsthat practically plan themselves in the oprerative process, such as reorder point materials, bulkmaterial or KANBAN materials.

The results of long-term planning can also be used by the purchasing department. They use theinformation on the future requirements quantities to estimate future orders. This provides themwith a basis for negotiating delivery schedules and contracts with vendors.


Capacity Planning

24 December 1999

Capacity PlanningPurposeThe economic use of resources is an objective for many areas of a company. The component“Capacity Planning” is available in the R/3 System for this purpose.

Capacity planning supports planning in all its phases:

• long-term rough-cut planning

• medium-term planning

• short-term detailed planning

IntegrationCapacity planning is integrated in the following applications:

• Sales and Distribution (SD)

• Production Planning and Control (PP)

• Sales & Operations Planning (PP-SOP)

• Requirements Planning (Master Production Scheduling and Material RequirementsPlanning PP-MRP/MPS)

• Long-term Planning (PP-LTP)

• Shop Floor Control (PP - SFC)

• Repetitive Manufacturing (PP-REM)

• Process Industries (PP-PI)

• Plant Maintenance (PM) and Service Management (SM)

• Project System (PS)

Capacity planning can be flexibly adjusted to planning demands and to the area of responsibilitywithin the company.

FeaturesCapacity planning comprises the following partial components:

• Capacity evaluationIn the capacity evaluation, available capacity and capacity requirements are determinedand compared with each other in lists or graphics.

• Capacity levelingThe objectives of capacity leveling are:

– Optimal capacity commitment

– Selection of appropriate resources


Capacity Planning

December 1999 25

In most applications, you can use two types of planning table (graphical and tabularversions) to display the capacity situation and to carry out capacity leveling.

In some applications such as Repetitive Manufacturing (PP-REM) or Sales andOperations Planning (PP-SOP), there are application-specific planning tables forcapacity leveling.


Scheduling

26 December 1999

SchedulingDefinition“Scheduling” is carried out in capacity planning using standard times from task lists. You canchoose between lead time scheduling, which does not take the capacity loads into account, andfinite scheduling, which does.

Selection CriteriaYou should choose this component if you work with orders, for example, in production. You candetermine the capacity requirements for orders.


Capacity Loads

December 1999 27

Capacity LoadsDefinitionThe “capacity load” is a result of a comparison between the requirements of a certain capacityand its available capacity. Capacity requirements are expressed as a percentage of availablecapacity.

Selection CriteriaYou must select this component if you want to use capacity planning because it contains thenecessary settings and the master data for this area.


Capacity Evaluation

28 December 1999

Capacity EvaluationPurposeYou can use capacity evaluations to analyze capacity loads in your company. You can adjust theanalyses for each user according to the planning level, planning horizon and the area ofresponsibility. Available capacities and capacity requirements can be selected according tovarious criteria and cumulated using any period split you choose.

You can use work center hierarchies to cumulate the available capacities of production workcenters and their capacity requirements to superior planning work centers.

IntegrationCapacity evaluation is a part of Capacity Planning.

Features• You can execute various evaluations in the capacity evaluation online or in batch.

– You get an overview of the load situation of selected work centers using the standardoverview [Ext.].

– You can use the detailed capacity list [Ext.] to display the orders that cause the capacityrequirements at work centers.

– You can use the variable overview [Ext.] to display any capacity planning data you wish.

The various evaluations can be displayed both in tabular and graphical form. The SAPGantt diagram gives you an overview of the dates of the operations at a work center.

• From all of the evaluation lists, you can either display or change work centers and capacities[Ext.]. From the detailed capacity list you can also process orders and confirmations [Ext.]and display stock/requirements lists [Ext.].

• You can use the EXCEL interface to export the evaluation lists and continue working withMicrosoft Excel [Ext.].

ConstraintsIn the capacity evaluation you can display the planned capacity requirements and the remainingcapacity requirements.

You cannot display the following capacity requirements in the capacity evaluation.

• Actual capacity requirements

• Split capacity requirements that are assigned to individual capacities of a capacity

• SOP requirements

You can display this data in the extended evaluation [Ext.]. However, there are no changefunctions available in the extended evaluation; for example changing work centers and orders.


Capacity Leveling

December 1999 29

Capacity LevelingPurposeCapacity leveling is used in various areas of a company and at different planning levels with thefollowing objectives:

• High capacity load

• Adherence to dates

• Short lead times

• Low stocks

The objectives of capacity leveling include:

• Leveling overloads and underloads at work centers

• Achieving optimum commitment of machines and production lines

• Selecting appropriate resources


Material Requirements Planning

30 December 1999

Material Requirements PlanningDefinitionThe main function of Material Requirements Planning is to guarantee material availability, that is,it is used to procure or produce the requirement quantities on time both for internal purposes andfor sales and distribution. This process involves the monitoring of stocks and, in particular, theautomatic creation of order proposals for purchasing and production.

Materials planning can be split into two main procedures, consumption-based planning and MRP.Multi-plant planning is also possible.

Selection CriteriaIf you select this component, you can make sure that the correct material is available forproduction in sufficient quantity and on time.

To make this possible, materials planning aims at optimizing the following:

• service level

• minimizing costs and capital lockup


Basic Data

December 1999 31

Basic DataDefinitionThe Basic Data for material requirements planning includes, for example:

• MRP controller

• lot-sizing procedure

• special procurement types

Selection criteriaYou must select this component as you cannot carry out material requirements planning withoutany basic data.


Planning Execution

32 December 1999

Planning ExecutionDefinitionExecution of material requirements planning for all materials or assemblies whose requirement orstock situation has changed since the last planning run.

You can carry out the planning run at two levels - either for a particular plant, with all relevantmaterials being planned at the corresponding plant (total planning), or for a single material orproduct group (single-item planning).

Selection CriteriaThe selection of this component is necessary to be able to carry out the planning run.


Procurement Proposal

December 1999 33

Procurement ProposalDefinitionThe Procurement Proposals specify the quantities and dates that are automatically calculated inMRP or that are manually created by the MRP controller which are required to cover futurerequirements.

Procurement proposals can be created for internal procurement (in-house production) and forexternal procurement.

Selection CriteriaThe selection of this component is necessary to be able to carry out planning.


Planning Evaluation

34 December 1999

Planning EvaluationDefinitionThis component provides the following evaluations for checking the planning results:

• MRP list (also as collective display for mass evaluations)

• current stock/requirements list (also as collective display for mass evaluations)

• comparison of the MRP list and the stock/requirements list

• planning situation (self-configurable evaluation)

• planning result (self-configurable evaluation)

• comparison of the planning situation and the planning result

• pegged requirements

• order report

Selection CriteriaThis component is necessary for monitoring and processing the planning results. In addition tothe standard evaluations, you can also create and perform self-configurable evaluations.


Production Orders

December 1999 35

Production OrdersDefinitionA production order specifies

• what is to be produced

• the production dates

• where the capacity load is to be dispatched

• the production costs

Material costsMaterial overhead costsProduction costsProduction overheads

Work center

Times

Control data

Texts

PRTs

Materials

Quality assurance

Op. 10RTG

Order

BOM

Scheduling

CostingCapacity Planning

Production/Assembly

t

10 20 N

Startdate

Finishdate

Machine

Cap

acity

Labort t

Op. 10Op. 20

As soon as a planned order or an internal request exists from previous planning levels (MRP),shop floor control adds order-specific data (such as dates and quantities) to the already existentinformation.

Selection criteriaIf you want to use production orders, you need to select this component.


Order Planning

36 December 1999

Order PlanningDefinitionThis component deals with the planning stages in the production order. The following businesstransactions are carried out before the order is released:

• A routing is selected, a bill of material is exploded, reservations are generated, plannedcosts are determined, capacity requirements are generated for work centers, and non-stock components and externally processed operations are created for purchaserequisitions.

• Scheduling:When a production orders is created it is automatically scheduled, using the basic orderdates as starting points. You can specify that the order should automatically berescheduled if changes occur in the order that are relevant to scheduled. You can alsomanually trigger scheduling at any time.



Header / Operation

December 1999 37

Header / OperationDefinitionThis component contains the main order elements of a order. The most important productiondata needs to be specified during order creation. If this data already exists in the form of masterdata, it is automatically copied into the production order.

The header data of the material includes

• the material number of the material to be produced

• the order quantity

• the basic start / finish date (depending on scheduling type)

• the expected scrap quantity

• the order priority

• the order status

• the plant in which the material is to be produced.

The operation overview screen includes

• the operation and sub-operation numbers, which specify the sequence in whichoperations are to be processed

• the work centers at which the operations are to be carried out

• the current status of the operations

• the start and finish dates of the operations

• the control key of the operations

• a short description of the operations.



Components

38 December 1999

ComponentsComponents are materials that are required in production. They need to be specified in theproduction order. If they have already been maintained as master data, they are automaticallycopied into the order.

In a production order, components have to be allocated to an operation. All components, thathave not been allocated to an operation in the routing, are automatically allocated to the firstoperation during order creation. You can, however, reallocate components from one operation toanother.



Production Resources/Tools

December 1999 39

Production Resources/ToolsDefinitionProduction resources/tools (PRT) are moveable operating resources used to form objects, suchas tools and fixtures, or used to check size, structure and efficiency, such as measurement andinspection devices. A production resource or tool can also be a document, such as a technicaldrawing or an NC program.

You assign production resources/tools to operations in task lists or orders where they arerequired.

Routing

Operation 10

Operation 20

Operation 30

PRT 1

PRT 2

Selection criteriaYou must select this component if you require production resources/tools to carry out operations.You can monitor the usage of production resources/tools as well as control their requirementsplanning.


Trigger points

40 December 1999

Trigger pointsDefinitionA trigger point is an object that can be allocated to an operation in order to trigger a function (forex. release / insert operation(s), create orders, trigger workflow tasks).

It can trigger a function

• if a particular status is (de-)activated in a particular operation

• manually when the operation is confirmed

Selection criteriaThis is an optional component. You should, however, select it if you want to

• automate the release of operations in predefined intervals

• trigger rework during completion confirmation

• use workflow tasks

If you want to use production orders, you need to select this component.


Order Processing

December 1999 41

Order ProcessingDefinitionThis component deals with the execution stage of the production order. The following businesstransactions are carried out after the order is released::

• Shop floor papers:You can print the documents required for carrying out the production order, such as:

− operation control ticket

− job ticket

− pick list

− time ticket

− confirmation slip

• Goods movements:In order to start producing a material, you need to first take the required materialcomponents out of stock. You deliver the finished product back into stock and post acorresponding goods receipt. It is, however, possible to post goods movementsautomatically when you confirm an operation or an order (backflushing of components,automatic goods receipt of finished product).

• Confirmation:Confirmation of actual order data, such as scrap, yield, processing time, etc.



Order Close

42 December 1999

Order CloseDefinitionThis component comprises the following steps carried out during process order execution:

• Process order settlement

• Archiving of process orders


To be able to settle a process order, you must choose the special functions for processmanufacturing within Product Cost Controlling.


Kanban

December 1999 43

KanbanDefinitionKANBAN production control is a technique for controlling production and material flow based ona modular backward linking of operations in production. The replenishment or production of amaterial is only triggered when a production level actually requires the material. KANBAN canalso be implemented for organizing internal or external production according to the ‘supermarketprinciple’.

Selection CriteriaThe aim of KANBAN is to create a self-regulating environment controlling production andprocurement, and to reduce the manual administrative effort required in production as far aspossible, paving the way for shorter lead times and zero inventories.

The success of KANBAN depends on the following conditions:

• A relatively constant consumption level of the kanban part within a period that is greaterthan the replenishment lead time of the kanban.

• Minimum setup times and reliable production along with many small lots within a shortperiod.


Control Cycle - Kanban

44 December 1999

Control Cycle - KanbanDefinitionThe kanban control cycle defines the relationship between the supply source and the demandsource. The control cycle defines the replenishment strategy assigned, the number and contentsof the circulating containers, the kanban (card) print, the delivery address and so on.

Selection CriteriaIf you use KANBAN production control, you must select this component as it plays a central rolein the KANBAN philosophy.


Kanban Control

December 1999 45

Kanban ControlDefinitionKANBAN is controlled by the kanban signal which triggers the status change for the containers.The most important status changes are setting the containers to ‘full’ and ‘empty’.

The kanban signal is usually triggered by scanning a bar code. When a container is empty, thesystem receives the necessary data for the control cycle and for replenishment via the bar codeand automatically carries out the postings required to trigger replenishment. When a container isfull, the goods receipts for the replenishment are posted automatically depending on yoursettings.

Selection CriteriaThe selection of this component is required for triggering the signal for replenishment or forpassing on information on the container status within the control cycle.


Kanban Board

46 December 1999

Kanban BoardDefinitionThe Kanban Board displays the control cycles sorted according to the supply areas to which theyare allocated. For each control cycle, all the containers in circulation are displayed with theirrespective status.

Selection CriteriaIf you select this component, the supply source and the demand source receives a detailedoverview of the container circulation. The kanban board can also be used for triggering thekanban signal.


Creation of Master Data

December 1999 47

Creation of Master DataDefinitionThe Backflushing transaction for repetitive manufacturing with production cost collector providesthe following options:

• posting goods receipts with automatic reduction of the open master plan

• posting goods issues

• posting actual costs to production cost collector

• updating statistics

The following options are available for backflushing in repetitive manufacturing without aproduction cost collector:

• posting goods receipts

• posting goods issues

• confirmations


Evaluations

48 December 1999

EvaluationsDefinitionEvaluations in repetitive manufacturing provide the following information:

• pull list

• reporting point overview (goods in process)

• component reprocessing list

• document log

• CO reports

Statistics and analyses can also be accessed from the Logistics Information System:

• goods receipt statistics

• reporting point statistics

• material consumption analysis

• production costs analysis


Repetitive Manufacturing

December 1999 49

Repetitive ManufacturingDefinitionThe SAP Repetitive Manufacturing component can be used for the purposes of productionplanning and control within a repetitive manufacturing environment. This procedure supportsproduction types that flow through production over longer periods.

Repetitive manufacturing has the following characteristics:

• master plans created and processed based on periods and quantities and releasedautomatically for production

• easy-to-use backflushing functions based on quantities

• dispatching to production lines

• combined capacity and quantity planning

• range of coverages (days’ supply)

• multi-order material provision

• no firmed material allocations

• period-based Controlling


Run Schedule Header

50 December 1999

Run Schedule HeaderDefinitionA Run Schedule Header must be created before a material can be planned in repetitivemanufacturing. It is used for planning and settling finished and semi-finished products that areproduced repetitively over a longer period.

The run schedule header contains no production quantities nor does it contain any dates. Bothquantities and dates are planned using run schedule quantities assigned to the run scheduleheader.

RS headers can be created with or without a production cost collector. Costs can be settled:

• via a production cost collector per run schedule header

• via a production cost collector that is created for several run schedule headers

• via production orders


Planning for Repetitive Manufacturing

December 1999 51

Planning for Repetitive ManufacturingDefinitionThe basis of the planning activities in Repetitive Manufacturing is the master plan. This plan isdisplayed in the form of a periodic planning table providing an overview of all run scheduleheaders, materials, product groups as well as production lines and groups of production lines.

All important information such as capacities, available quantities and so on are displayed in thisplanning table which can be created automatically in the planning run and processedinteractively.


Planning Run Schedule Quantities

52 December 1999

Planning Run Schedule QuantitiesDefinitionThe Run Schedule Quantities specify the production quantities for a run schedule header that areproduced in a certain period. Actual data and cost settlement data are collected by the productioncost collector.

Planning with run schedule quantities is especially useful if:

• a product is produced repetitively over a long period of time

• the same routings and therefore the same work centers are used for the production of aproduct family (production organized by production lines)


Planning

December 1999 53

PlanningDefinitionIn this type of planning, partial orders are created for certain dates, depending on the runschedule header. These partial orders correspond to the standard planned orders that have to beconverted into production orders. The planning procedure and also cost settlement is identical tothat used for production orders.

Planning with partial orders is especially usefull when:

• producing complex, multi-level products each with a separate routing which are to besettled separately.

• each production lot is to be settled separately using a production order

This process corresponds to the usual PPC procedure with production orders, supplemented byadditional functionality.


Creation of Master Data

54 December 1999

Creation of Master DataDefinitionThe Backflushing function provides the means for automatically posting goods receipts for theproduct as well as backflushing the goods issue for the components.

Cost accounting for KANBAN (in-house production) can be controlled differently depending onthe replenishment element used to control the control cycles.

• In the process with run schedule quantities, the costs are collected at a so-calledproduction cost collector and can be settled periodically by product costing.

• In manual KANBAN, the costs are also collected at a cost collector.

• In replenishment control with production orders, the costs are assigned to the productionorder.


Evaluation

December 1999 55

EvaluationDefinitionThis component provides the following tools for evaluating KANBAN:

• error display

• plant overview

• evaluations from other areas

Using the error display, you can display all errors and you can delete the corresponding errormessages.

The plant overview provides you with an overview of the production progress of each controlcycle either per plant or per plant plus certain selection criteria.

Selection CriteriaThe selection of this component is necessary if you want to carry out evaluations for KANBANproduction.


Assembly Processing

56 December 1999

Assembly ProcessingDefinitionAssembly Processing makes it possible to quote more reliable dates to the customer in make-to-order production. Since, in make-to-order production, the finished product is not normally held instock, assembly processing allows you to automatically check the availability and capacity atcomponent level when processing sales orders. For this purpose, the system automaticallycreates a procurement element (such as a planned order) when creating a sales order.

Due to the close cooperation between SD and PP, any changes coming from production to eitherdates or quantities are immediately reflected in the sales order. Vice versa, any changes made tothe sales order are also automatically passed on to production.

Selection CriteriaThis component is especially useful for make-to-order production (with and without variantconfiguration), for example, the production of PCs or automobiles. Here, repetitivemanufacturing, production by lots and projects are supported.


In Repetitive Manufacturing

December 1999 57

In Repetitive ManufacturingDefinitionIn assembly processing with Repetitive Manufacturing, production control is carried out using theplanning and control tools from the repetitive manufacturing module. A planned order is createdwhen creating the sales order. This means that you can use repetitive manufacturing for make-to-order production whereby the backflush of the run schedule header is posted directly to thesales order.

Selection CriteriaAssembly processing in repetitive manufacturing is especially useful when several of thefollowing criteria are applicable:

• If the production process of the finished product is simple with clear productionprocesses.

• If the production of the assemblies is carried out in a constant flow through theproduction lines.

• If simple routings are used, or if assembly can be carried out without routings.

• If the components are provided at the production lines on an anonymous basis. Thecomponents are procured using Kanban production techniques, consumption-basedplanning, or the planning strategy, ‘assembly planning’, for example.

• If the production control effort is to be kept to a minimum and backflushing is to be simplified.


In Production by Lots

58 December 1999

In Production by LotsDefinitionIn assembly processing for Production by Lots, production control is carried out using productionorders. When creating a sales order, a production order is created automatically (or a plannedorder is created that can be converted into a production order).

Selection CriteriaThis component is especially useful for complex production procedures. The process withproduction orders means that you can carry out production control:

• using collective orders

• using the status management of the production order

• using various business operations at operation level

It makes sense to implement assembly processing with production orders in the following areas:

• process flow production

• manufacture of co-products

• production with parallel production lines


Production Planning for Process Industries

December 1999 59

Production Planning for Process IndustriesDefinitionThe PP-PI component (Production Planning for Process Industries) is an integrated instrumentfor the planning and execution of batch-oriented process manufacturing.

• PP-PI is primarily designed for the chemical, pharmaceutical, food and beverageindustries, as well as the process-oriented electronics industry. PP-PI supports:

• the integrated planning of production, waste disposal, and transportation within a plant

• the integration of plants within the company:

− vertically by means of a continuous flow of information, ranging from central businessapplications to process control

− horizontally by the coordination of planning between production plants, recycling,waste disposal facilities, and production laboratories.

Selection criteriaChoose this component, if you want to use your system for the planning and execution of batch-oriented process manufacturing. When choosing this component, you not only decide for the PP-PI specific subcomponents but also for the higher-level planning components PP-PI uses incommon with discrete manufacturing.

• Sales & Operations Planning

• Master Planning

• Material Requirements Planning

In some areas, PP-PI uses data provided by other components. You also need to select thesecomponents if you want to use PP-PI. These areas are:

• Material master (Logistics - General, Basic Data) and materials management for theplanning of input materials required and products to be manufactured

• Batches (Logistics - General) for batch-oriented manufacturing

Additional optional functions and possibilities of integration are available if you select thecorresponding components from the following areas together with PP-PI:

• Classification System (Cross-Application Functions) enabling you to search or selectclassified data more easily

• Engineering Change Management (Logistics - General) enabling you to create a changehistory as well as to implement a release procedure

• Variant Configuration (Logistics - General) enabling you to create different productionvariants using maximum master formulas (recipes)

• Quality Management enabling you to carry out in-process inspections

• Controlling enabling you to carry out order settlement


Basic Data

60 December 1999

Basic DataDefinitionThis component contains the master data you require as a basis for production planning indiscrete manufacturing. This is data that remains unchanged over a longer period and is alwaysused in the same manner.

Selection criteriaYou need to select this component if you want to plan production in your company using the R/3System.


Resources

December 1999 61

ResourcesDefinitionResources are objects and persons involved in the production process which have capacitiesallocated to them.

Resources are allocated to operations and phases in the master recipe and process order. Theyare used as the basis for the calculation of costs, capacity requirements, and dates.

The resource corresponds to the work center in discrete manufacturing. However, for processmanufacturing you can also create a resource network to specify the sequence in which theresources are to be used.



Master Recipe

62 December 1999

Master RecipeDefinitionMaster recipes describe the company-specific application of manufacturing procedures withoutrelating to a specific order. They are mainly used for the manufacture of products. However,they can also describe the clean-out or changeover of a processing unit.

The data scope of the master recipe in the R/3 System was defined in accordance with theinternational standards of the European Batch Forum (EBF), the norms working committee formeasuring and control techniques in the chemical industry (NAMUR) as well as in accordancewith standard S88 of the Instrument Society of America (ISA).

From the planning view, the data contains the following information:

• the individual steps in the production process (operations and phases) in the sequence inwhich they are to be carried out as well as planned durations and other activities(standard values)

• the resources required for the individual steps in the production process

• the ingredients required for production (material list)

• instructions for in-process quality inspections (for example, inspection characteristics)

In addition, the master recipe contains parameters relevant to the control of the productionprocess (process instructions). These parameters are specified during process planning andhave to be communicated to process control.

The master recipe is used as the basis for the process order.



Process Order

December 1999 63

Process OrderDefinitionProcess orders are the main element used for the detailed planning and execution of processmanufacturing.

A process order describes the production of materials in a production run or the output of aservice. It is generated from the master recipe and contains all the information specified duringprocess planning.

You use a process order to plan the quantities, dates, and resources of the manufacturingprocess, to control process order execution, and to define rules for the account assignment andsettlement of the costs incurred.



Order Execution

64 December 1999

Order ExecutionDefinitionThis component comprises the central processing steps involved in process order execution.

Process planning comprising

• Process order creation– selecting a master recipe– creating reservations or copying them from planned orders– calculating planned costs– creating capacity requirements for the resources

• SchedulingStarting with the basic order dates, the system automatically schedules the processorder when you create it. In addition, it can later be rescheduled automatically ormanually whenever changes relevant to scheduling have been made.

• Release of process order

Process order execution and process management

• Creating and downloading control recipes (optional)

• Printing shop floor documents

• Carrying out material withdrawalsWithdrawing material components required in the manufacturing process in the form ofgoods issues from the warehouse.

• Recording confirmations

• Carrying out in-process quality inspections (optional)

• Posting goods receiptsDelivering the manufactured product to the warehouse by posting a goods receipt.


You only create control recipes during process order execution if you want to use PI sheetsand/or process control systems. In this case, you must also select the correspondingcomponents from Process Management.

If you also want to carry out in-process quality inspections for your orders, you must select therelevant components from Quality Management.


Order Closing

December 1999 65

Order ClosingDefinitionWhen a production order is settled, the actual costs incurred for the order are settled to one ormore receiver cost-objects (for example, to the account for the material produced to a salesorder). Offsetting entries are generated automatically to credit the production order.



Capacity Planning

66 December 1999

Capacity PlanningDefinitionCapacity planning is an instrument used to determine the available capacity and capacityrequirements and to carry out capacity leveling.

Capacity planning supports

• long-term planning

• medium-term planning

• detailed planning


Process Management

December 1999 67

Process ManagementDefinitionProcess management is the interface between the PP-PI component (Production Planning forProcess Industries) and process control. Due to its flexible structure, it can be linked toautomated, partially automated and manually operated lines. Process management comprisesthe following functions:

• receiving control recipes with process instructions from released process orders

• transferring control recipes to the corresponding line operators or process controlsystems

• editing process instructions in natural language (PI sheet) so that they can be displayedand maintained on the screen by the line operator

• receiving, checking, and transferring process messages with actual process data

• manual entry of process messages


Process Message

68 December 1999

Process MessageDefinitionProcess messages are structures that are used to transfer actual process data from processcontrol to one or more message destinations of the following types:

• R/3 function module or component, such as inventory management

• user-defined ABAP/4 tables, for example, for evaluation purposes

• users of the SAPoffice mail system, such as the shift leader

• external functions, such as a process control system.

Process messages are used to update existing data records, as well as to generate batch andproduction records. The content of the process messages can be determined individually byassigning characteristics and characteristic values. The content as well as message destinationsare predefined specifically for a plant.

Process messages can either be created when an R/3 PI sheet is maintained or they can bereceived by external systems (via the interface PI-PCS). Process management transfers them tothe destinations defined there.


Control Recipe

December 1999 69

Control RecipeDefinitionA control recipe contains all information required for the execution of a process order by a certainprocess control system or line operator. It contains:

• information on the processing steps to be carried out during process control

• information on the actual data to be reported

Information relevant for process control is maintained in the process order in the form of processinstructions. The content of process instructions can be determined individually by assigningcharacteristics and characteristic values.

After the process order or the corresponding phases have been released, the processinstructions are bundled into control recipes and transferred to the destinations (control system oroperator) which have also been maintained in the order.


PI Sheet

70 December 1999

PI SheetDefinitionIn a PI sheet, the process instructions contained in a control recipe are edited for display andmaintenance on the screen. The PI sheet enables the exchange of information between PP-PIand line operators in lines that are operated manually (either totally or partially).

Depending on the process instructions contained in the control recipe, the PI sheet supports thefollowing functions:

• display of control information in natural language

• recording of actual process data

• calculation of values

• reporting entered and calculated values using process messages

• recording inspection results by jumping directly to QM

• calling R/3 function modules to access, for example, order confirmation, documentmanagement or material quantity calculation


Process Data Documentation

December 1999 71

Process Data DocumentationDefinitionDuring process data documentation, lists of order-related and batch-related process data aregenerated and stored in an optical archive. This enables the creation and storing of an ElectronicBatch Record (EBR), which cannot be manipulated.

The archived lists are generated based on international standards such as those defined in theguidelines on Good Manufacturing Practices (GMP). Customer-specific enhancements arepossible.


Process Data Evaluation

72 December 1999

Process Data EvaluationDefinitionThis component comprises the following functions for the evaluation of process data:

• the shop floor information system which you can use to analyze the following data:

− resources

− business transactions

− materials

− process orders

− material consumptions

− product costs

• process message evaluation which you can use to

− display message data using SAP Business Graphics

− transfer message data to Microsoft EXCEL for further processing

• the possibility to call process data for evaluation from the database using external tools(required interface software: ODBC)


Plant Data Collection

December 1999 73

Plant Data CollectionDefinitionPlant data collection comprises the collection and display of plant data (that is, labor-related andmachine-related messages), including check, processing, editing, evaluation, and transfer.

The aim of plant data collection is to obtain up-to-date information on machine utilization, ordersituation, quality, etc. as well as to maintain statistics.

Selection criteriaUsing plant data collection only makes sense if you connect an external subsystem (such asPDC) via standard interfaces, the SAP standard communication channels.


Work Order Time Recording

74 December 1999

Work Order Time RecordingDefinitionThe aim of work order time recording is the collection and evaluation of all time-related messagesthat are created when a production order is executed. The target standard times are comparedwith the actual times.

Selection criteriaUsing work order time recording only makes sense if you connect an external subsystem (suchas a time recording system) via standard interfaces, SAP’s standard communication channels.


Work Order Time Recording (PM Order)

December 1999 75

Work Order Time Recording (PM Order)DefinitionThe aim of work order time recording is the collection and evaluation of all time-related messagesthat are created when a maintenance order is executed. The target standard times arecompared with the actual times.

Selection criteriaUsing work order time recording only makes sense if you connect an external subsystem (suchas a time recording system) via standard interfaces, SAP’s standard communication channels.


Personnel Time Recording

76 December 1999

Personnel Time RecordingDefinitionThe aim of labor time recording is the collection and evaluation of all labor-related messages(such as, comes, goes, short business trip). This data is the basis for time-related paymentssystems.

Selection criteriaUsing labor time recording only makes sense if you connect an external subsystem (such as atime recording system) via standard interfaces, SAP’s standard communication channels.


Project Time Recording

December 1999 77

Project Time RecordingDefinitionThe aim of project time recording is the collection and evaluation of all time-related messagesthat are created when a project is executed. The target standard times are compared with theactual times.

Selection criteriaUsing project time recording only makes sense if you connect an external subsystem (such as atime recording system) via standard interfaces, SAP’s standard communication channels.


Information System

78 December 1999

Information SystemDefinitionThe Shop Floor Information System can be used at a variety of levels in the decision-makingprocess as an instrument for monitoring, controlling and planning your business operations.It is a flexible tool for collecting, aggregating and analyzing data from the area of production. Theinformation system allows you to view all information in the operative application from a widerange of perspectives. You can also define the level of detail in which you wish to see theinformation.

The Shop Floor Information System contains informative key figures which help you topermanently monitor the key aims in production (short lead times, good on-time deliveryperformance, good capacity load utilization, low costs) and so be in a position to take necessaryaction in good time. Data from the area of Kanban can also be analyzed in the informationsystem.

The data is evaluated either by means of standard analyses or flexible analyses. Flexibleplanning, the Early Warning System and the Logistics Information Library are integrated in theShop Floor Information System.Tools are available in Customizing, which allow you to apply a self-defined structure to yourinformation system and tailor it to meet your own specific requirements.

The Shop Floor Information System is part of the Logistics Information System (LIS) which alsoincludes the Purchasing Information System and Inventory Controlling. All information systems inLIS make use of the same techniques for analyzing data and they all have the same userinterface.

Selection CriteriaUse of the Production Planning and Control component is a prerequisite for the Shop FloorInformation System component. It is also possible, however, to include external data (e.g. fromnon-SAP systems).

If you select the Shop Floor Information System component while you are in the ProductionPlanning and Control application itself, then you do not need to select the Logistics InformationSystem component at Logistics General level.


Reporting

December 1999 79

ReportingDefinitionThe reporting component comprises the standard analyses and flexible analyses of the ShopFloor Information System. The standard and flexible analyses enable you to analyze andevaluate data which is written to the Shop Floor Information System.

• Standard analysesThe standard analyses are based on statistical data from production and provide a widerange of options for evaluating data. A great variety of functions are available as part ofthe standard analyses. These functions enable you to target specific key figures and toanalyze them in detail (e.g. ABC analysis, cumulative frequency curve, correlation curve,previous year comparison, planned/actual comparison, etc.). You can specify the level ofdetail in which you wish to view the information. The values for each list can also beviewed graphically.

• Flexible analysesFlexible analyses allow you to group together and aggregate key figures yourself, and tocreate reports very easily. This makes use of functionality in the Report Writer. Differentdisplay types enable you to vary the layout of your reports.


Planning

80 December 1999

PlanningDefinitionThe planning functionality of the LIS information systems is integrated into the central componentSales & Operations Planning (SOP).

Sales & Operations Planning (SOP) is a flexible forecasting and planning tool with which sales,production, and other supply chain targets can be set on the basis of historical, existing, and/orestimated future data. Rough-cut planning can also be carried out to determine the amounts ofthe capacities and other resources required to meet these targets.

SOP supports both the high-level planning of complex planning hierarchies and the detailedplanning of finished products. Thus, either a top-down or a bottom-up approach to planning ispossible. The system can be configured either such that target key figures set at oneorganizational level are distributed automatically and consistently to all the other organizationallevels in the hierarchy, or such that each level is planned separately.

Sales & Operations Planning is made up of two elements: standard SOP and flexible planning.Standard SOP comes largely preconfigured with the system. Flexible planning offers multipleoptions for customized configuration. Planning in standard SOP is based on product grouphierarchies and is always carried out level by level. Flexible planning is carried out on hierarchiescontaining any chosen organizational levels. Moreover, in flexible planning the content and layoutof planning screens can be defined by the users.

Selection CriteriaThis component focuses on flexible planning.

To run SOP in a distributed environment, select also Application Link Enabling (ALE).


Interface to Logistics Information Library (LIL)

December 1999 81

Interface to Logistics Information Library (LIL)DefinitionThe Logistics Information Library (LIL) helps you to create, classify and find key figures in thearea of Logistics and is integrated in all information systems of the Logistics Information System(LIS) as an individual menu option.

The Logistics Information Library uses simple search strategies which enable you to access allkey figures in the LIS information systems. The LIL also offers you the option of cataloging andstructuring key figures.

The LIL also allows you to access key figures that are not integrated in any key figure systemand those that have been created specifically for your own business purposes. The LIL enablesyou to integrate reports, transactions, information systems and tables from different areas ofLogistics, such as Purchasing, Sales and Production.

It is possible to search for and call up a specific key figure, without knowing the exact name ofthe report, the transaction code or the menu path.


Data Collection

82 December 1999

Data CollectionDefinitionThe data collection component (Logistics Data Warehouse) is central to the Logistics InformationSystem (LIS) and is integrated in all LIS information systems.

The functionality in this component allows you to define and construct your own Logistics DataWarehouse. This takes place in the data collection component. Variable data structures are usedto ensure that the varying requirements of different user groups and applications are satisfied.The so-called self-defined information structures play a key role in this process. A variety of toolsallow these structures to be filled with customer-specific data (even external data).

In addition, the data collection component contains functions which allow you to define the way inwhich statistical data from the application is written to the information system. Update groups andupdate rules are also available to help you with your definition.

Selection CriteriaSelection of the data collection component is a prerequisite for using all other components in thelogistics information systems.


Early Warning System

December 1999 83

Early Warning SystemDefinitionThe Early Warning System aids the decision-making process by enabling you to select andmonitor weak points in production processes. The Early Warning System is integrated in theShop Floor Information System. The key figures of the Shop Floor Information System form thebasis for the analysis.The Early Warning System allows you to search for exceptional situations and thus helps you todetect and rectify potential problems at an early stage.

You can define your own exceptional situations in the form of ‘exceptions’, as well as theconditions for subsequent follow-up processing. If an exceptional situation occurs, then you canbe informed automatically by mail or fax, for instance, or you can view the critical data in thesystem. The display of the critical data is supported by various visualization techniques.

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