8/11/2019 SAP R3 ch_6

1/15

SAP R/3Business Blueprint

Chapter 6

Production Logistics

8/11/2019 SAP R3 ch_6

2/15

Production Logistics

(P.L.)Is the SAP solution for a modern

production planning and control

systemIt provides quick deliverability

It is flexible

Offers high level of performance forthe planning and control of the totalmaterial flow

8/11/2019 SAP R3 ch_6

3/15

MRP IIMRP II is a internationally recognised

planning concept

Shortcomings with MRP II: Planning is treated separate from managing

actual production activities

The approach does not provide support for other

current initiatives

P.L., along with its links to R/3, is an

implementation that effectively overcomes

these two shortcomings

8/11/2019 SAP R3 ch_6

4/15

Production Logistics

Production

Organisa-

tional

Units

Supply

Chain

Scenarios

Business

Process

Business

Objects

8/11/2019 SAP R3 ch_6

5/15

Production by Lot SizeA make-to-order strategy that allows a

company to produce several customerrequirements in one lot

The strategy is to be responsive to customerdemands while keeping stock andproduction runs to a minimum

Production work orderscontrols therequirements and what to produce

=> noncustomer order-specific production

8/11/2019 SAP R3 ch_6

6/15

Production by Lot Size IIScenario flow:

Sales and operation planning

Demand management

Material requirements planning

Creation, release, and execution of the

production work order

8/11/2019 SAP R3 ch_6

7/15

Repetitive

ManufacturingRefers to production of identical or

similar products on high-volume

production linesProduction schedules are used to

manage production (instead ofproduction work orders)

The schedules gives which products tomanufacture and in which sequence

8/11/2019 SAP R3 ch_6

8/15

Repetitive

Manufacturing IIScenario flow:

Sales and operation planning

Demand management

Customer demands and long term

production plans

Creation, release, and execution of themaster schedule

8/11/2019 SAP R3 ch_6

9/15

Make-to-Order

ProductionStrategy for individually managing the

production associated with specificcustomer sales orders

Production and procurement costs aretracked to individual sales orders

This results in detailed reporting and

analysis of the planned and actual costs foreach order

Same scenario flow as Prod. by Lot Size

8/11/2019 SAP R3 ch_6

10/15

Process Manufacturing The SAP R/3 scenarios for process

manufacturing manage the planning,execution, and control activities for process-oriented manufacturing

The Reference model contains differentscenarios, including: Continuous production

Manufacturing in a continuous process over time

Discontinuous production Manufacturing in stages

Regulated production

Requires that the process orders meet rigorous qualitystandards and legal requirements

8/11/2019 SAP R3 ch_6

11/15

Process Manufacturing IIScenario flow:

Sales and Operation Planning

Demand Management

Generation of long-term production plans andmaster schedule

Computation of material flow

Production is managed by the production order

Material is received from or issued to productionand the process order is completed and closedout.

8/11/2019 SAP R3 ch_6

12/15

Project-Related

Engineer To Order The engineer-to-order manufacturers

require a system that synthesises the best

from Production Management

Project Management

The project-related, engineer to order

scenario, describes a process for managingthe production of complex items

8/11/2019 SAP R3 ch_6

13/15

Project-Related

Engineer To Order IIScenario flow:

Establish a project structure to quote a

customer job Detail cost plans are developed and

integrated into a budget

The project is the released for processing

8/11/2019 SAP R3 ch_6

14/15

Quality Management

for Goods Receipt from

Production

This scenario integrates the goods

receipt transaction into an enterprisewide quality system

It can be used in any environment to

support quality improvement programs

8/11/2019 SAP R3 ch_6

15/15

Quality Management

for Goods Receipt from

Production II

Scenario flow:

Goods receiving function

R/3 uses data from that function to generate the

Quality Management order

The Q.M. order is used to control the inspection

process and record results When all results are recorded, the Q.M. order is

closed and inventory lot is moved into stock-

keeping area or next step in production