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LEARNING FOR THE PRACTIONER SESSION

Production Planning starts as the demand arise as it needs the raw material to fulfill which is called Bill ofMaterial

Routing is the sequence of activities that are performed in order to execute the production.

Work center is the location where the activities for the production are performed. Legacy system is the traditional way of doing the process which is now obsolete as because of the

introduction of ERP.

Material mastercomplete information of materialsa. Raw Materialb. Semi- Finishedc. Finishedd. PRT(production resource and tools)(Secondary to support)

Work Centrewhere actual work happens. Cost Centerwhere cost is incurred (in work centers only) In Legacy it is called machine in sap WorkCentre. Bill of MaterialsIt consists of the complete information about the components or the inputs that go in

producing the product.

Production planningPlanning for the production orders by designing the complete production process. Capacity PlanningPlanning for the capacity in order to meet the demand. Which is nothing but Material

Requirement Planning which includes Material Master Data, MRP Procedures, and Scheduling? Production

Order cycle

Material ManagementBasically deals with the material master. Quality ManagementIt manages the quality of the product and the production process. The quality is

controlled.

Sales and DistributionIt deals with sale and distribution of the product. ControllingThe cost involved in work centers are controlled through controlling. Integration with SapS & D- sales order, MRP is carried out- PR is created to generate stock for delivery,

MM-purchase requisition for material- Material received in unrestricted stock confirming the production, PP-

product manufacturing.

Flexible planning by looking at the past data to predict the future-Sales and operation planning- replace byAPO.

Period based Manufacturingsame product is produced over the period of time. Discrete ManufacturingDifferent products are produced.

Project based Manufacturing

ship and building where the end product is important. Process Manufacturingfor oil and pharmaceutical companies which deals with the peculiar process in

manufacturing.

Work SchedulingIt lines up the production process without it one cannot start production Material master have 29 views but with PP has 5 Views- Back data view MRP (1-4),Sales view, Purchasing

view, Plant Storage Data View , Accounting View.

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Re order pointThe point where the order is placed before the material is completely replenished becauseof the lead time in delivering it.

MRP controllerTo control the full production Lot sizeit is to fix the lot that needs to be produced Safety stockAs there may be deviation in demand hence one always needs to keep some extra stock to

meet the uncertainty in demand that is called safety stock.

Strategy groupThere are the strategic level decision that whether to follow Made to stock and Made toorder approach of production.

Production schedule profileIt is similar to what is routing. Serial number profileSerial number is assigned to the items produced for identity. Bill of materialconsist of header(parent) and BOM item(child) Headervalid for whole BOM Item-only for specific component under the Parent. BOM ValidlyEvery material has a unique expiry (as it changes with time) after which it becomes useless.

Work center used for costing, scheduling, capacity planning. Organization Structure

o Cliento Company codeo Plant

Work scheduling is important as without which one cannot do product scheduling. Routing datais maintained as header for entire routing and item for specific components. Sales and operation planningbased on the past data the forecasting and planning is done for future. Demand Managementit is to define required quantities and delivery date of final products. Planned Independent Requirements (PIR)The individual demand planed and managed. Material Requirement Planning (MRP)It is nothing but Right material at right time at the right place. Net Requirement Calculation in MRP: Plant stock-safety stock + receipts-requirements quantity =Available

stock.

Lot sizing procedures-o Static,o Periodic,o Optimizing procedures (Daily, weekly, and monthly). Optimizing is not used these days.

MRP SchedulingBackward and forward scheduling can be defined or automatic scheduling Backward scheduling is widely used these days i.e. go back from the delivery date and the schedule

accordingly.

Production Lead time schedulingIn order to calculate the exact production dates on the routing setting. Master Production Scheduling (MPS)Process flow for critical materials.

o A class materials- High cost Low consumption.o B-class materials- Medium cost Medium consumption.o C class material - Low cost, High consumption.

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Production orderUsed to control and monitor production and contains description of material etc. Manual production order creation it copies routing information from the master data with reference to

the materials.

Production order Confirmationmonitors quantity, activity, amount needed, work center, actual dates, whocarried out, yield and scrap, actual values for corresponding standard values etc.

Planned costit is automatically calculated whenever production orders are changed and created. Actual Costit is calculated on the cost to incur-the difference which is the variance. Production order managementScheduling, availability to check of components, capacity, assigning serial

no. etc.

Codes:o CA01-Production order creation- Header and item.o CA02-changeo CA03-displayo CA40-planned to productiono CA41-caculate conversion of production to planned

Release orderIt is given in order to release the material from the storage location. MIGOgoods receipt after confirmation of operations. TECOTechnical competition which means ending a production order from the viewpoint of logistics. Typical errorsInvalid material no, Invalid plant, Invalid order type, Print shop floor papers without release

of the order, confirmation of production order without release , confirming the production order without

preceding order not confirmed etc.

Shop Floor PrintingIt is the instruction to the shop floor people- It is for the internal accountability. BacklashAutomatic goods release as some materials are always needed and need not be granted

permission to release every time.

Order settlement it is the internal scheduling in the organization with interdependence on each otherdepartment. The requirement of one department to another department is like an order therefore everyone

proceeding in the process is a customer. It helps in understanding that within the organization how much

resources are allocated, utilized, and how much is the difference in meeting that requirement. Helps to

understand the bottlenecks. This also helps in knowing whether the budget has overshoot or is under control.

SUBMITTED BY:

PRAKASH JESWANI

SECTION- C

SEAT NO- 6

ID-13A1HP033