sap overview & pp-pc integration

8/10/2019 SAP Overview & PP-PC Integration

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2014 WIPRO LTD | WWW.WIPRO.COM | CONFIDENTIAL1

SAP


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SAP Overview

SAP Background

SAP Integration & Data Structures

Overview of SAP Production Planning (PP)

Reporting in SAP


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SAP Background


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What Does SAP Stand For?

Systems

Applications and

Products in Data Processing

(Or in German

Systemanalyse

Und

Programmentwicklung)


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Flexible:Configuration of the SAP modules to suit business needs

Real-time:

Updates information immediately in the system as the data is saved

Provides improved access to real-time, integrated information

Reduces operational costs

Audit Trail:All transactions can be tracked to the person entering or

changing data by their SAP user ID

Online: Display information and reports as you need themIntegrated:

Provides an enterprise with a common business language and the ability to develop global

processes and data structures

Increases the coordination of departments

Business workflow orientation versus stand-alone applications

Real-time ripple effect of data through all business functions

Seamless integration of data between business functions (e.g., automatic financial postings based

on transactional processing in all modules)

One-time data entry ensuring data consistency and reliability

Audit

Trail Online

Flexible Real-time

Integrated

SAP Integration



Real-time access

to information

Consistency of

processes acrossproducts and

regions

Reduction in cycle

time

Benefits

Integrated SAP backbone

SAPs strength is built around an integrated data platform

ProductLines

Regions

Latin

America

Asia Mid

East

Europe

Product 1

Product 2

Product 3

Product 4

Spares

Corporate

Mfg.HR

Quality

FinanceNorth

America



Types of Data in SAP R/3

Organizational Data

- Validation, check tables (e.g., ABAP Tables,

Source Code Tables)

Master Data

- Static data (e.g., material, vendor, Cost Center,

G/L Account, etc.)

Transaction Data(Movement Data)

- Data created by business activities (e.g., requisitions,

Purchase Orders, G/L postings)

- Document Principle: 1 business transaction = 1 SAP

document


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SAP structuresimplified

R/3 INSTANCESHARED PROGRAMS

R/3 Code

Custom ABAPs

Language Files

CustomersSuppliers

Materials

Products

CoA

R/3 CLIENTSHARED DATA

Sales Organization

Purchasing Organization

Plant

Project

Controlling Area

Profit Center HierarchyCost Center Hierarchy

COMPANYLEGAL ENTITY


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The Document Principle

Single version of the truth

Enterprise visibility

Summary to detail views

Complete auditability

Documents



How SAP Transaction Work

Harman International Industries | Confidential | December 22, 201412

Master Data Records

Accessed

Purchase

Order

SAP Data

TablesAccessed

xxxx

xxxx

xxxx

xxxx

xxxx

xxxx

xxxx

xxxx

xxxx

xxxx

xxxx

xxxx

xxxx

xxxx

xxxx

SAP Transaction

Performed

Data Created for

Reporting and Analyzing

SAP Document Created

whenever stock is moved

or money is received

Examples of

Documents:

Customer orders

Goods issue

Productionorders

Vendor invoices

Data tables

are files that

contain codes

and other

information.



Integrated SAP concept - Overview

Strategicpurchasing

Invoiceverification

Assetsaccounting

SalesProductionMaterialsManagement

Purchasing

Accounting

MaterialsManagement

Raw materials Finished products

GLaccounting

MRP

Billing

MRP

Overheadcost management Controlling

Operativepurchasing

Accountspayable

Production

Jobpreparation

Work

scheduling Engineering

WarehouseGoods

receiptVendor

Inventoryaccounting

Internalaccounting

Inventoryaccounting

Warehouse Shipping Customer

Strategicsales

Operativesales

Accountsreceivable


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SAP Integrated concept

Strategicpurchasing

Invoiceverification

Assetsaccounting

SalesProductionMaterialsManagement

Purchasing

Accounting

MaterialsManagement

Raw materials Finished products

GLaccounting

MRP

Billing

MRP

Overheadcost management Controlling

Operativepurchasing

Accountspayable

Production

Jobpreparation

Work

scheduling Engineering

WarehouseGoods

receiptVendor

Inventoryaccounting

Internalaccounting

Inventoryaccounting

Warehouse Shipping Customer

Strategicsales

Operativesales

Accountsreceivable

I t ti i K B fit f i t t d



Integration is Key - ex. Benefits of integrated

order to cash

The SAP Universe

Strategic Benefits Heightened understanding of customer

needs and profitability

Improved brand performance information

and greater clarity of global/regional brand

profitability

Improved management decision-making

across businesses due to greater clarity and

timing of information Improved organizational flexibility (e.g.

shared services, regional/global

management structures)

Tactical Benefits Reduced sales expense through cross-

selling

Improved cash collection enabled by

reduction in cycle time

Reduced working capital due to lower

inventory levels

Improved order fulfillment accuracy

Reduced back office expense due to

streamlined inter-company processing and

standardized reporting

Reduced cost of ownership



The Document Principle

Single version of the truth

Enterprise visibility

Summary to detail views

Complete auditability

Documents



Order fulfillmentthe value of integration

1997

Packing

Shipping Point

Deadline monitoring

Availability check

Creating deliveries

Goods issue

Transfer

Picking

Picking confirmation

Transportation

Planning Point

Sales Order

Loading

Shipping papers

The sales order controls the follow up

activities in logistics

Real time information is delivered to

warehouse and transportation

management regarding materials

and quantities that must be picked,

packed and shipped

Allows shipments to be consolidated

for execution for better efficiency

Enables splitting of orders for actual

fulfillment at the site where materials

are stored

Monitoring of the delivery of the sales

order throughout the process is enabled

with out of the box integration with

materials management

Order

Management

Delivery/POD

Transportion

Execution

Inventory

Materials

Mgt

POD

95

PC

Proof Of

Delivery

Order to Cash transformation the value of


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Order to Cash transformationthe value of

integration

Once the delivery activities have takenplace and a goods issue or POD has

been posted, the financial accounts are

immediately (real-time) updated

Integration with the front end

quotation and order management

ensures accuracy and timeliness of

bill presentment

Allows service personnel to quote

and issue bills for service

Links between sales, delivery, and

finance are preserved for future

analysis via drill-down or adjustments

Incentive &

CommisionMgt

Invoicing

Adjustment

Management

Accounts

ReceivableProfitability

Analysis

Balance Sheet

XX XX

Billing

Due List

Delivery

OrderQuotation

Updated

XYZ 60PC

Sales Price 300 USDCost 100 USD

Order #2077Delivery

Requirements

Stock

Balance Sheet

XX XX

Billing

Due List

Billing

Due List

Delivery

OrderQuotation

Updated

Delivery

OrderQuotation

Delivery

OrderOrderQuotationQuotation

Updated

XYZ 60PC

Sales Price 300 USDCost 100 USD

Order #2077Delivery

Requirements

Stock



SAP R/3 Integration

R/3

FIFinancial

Accounting

COControlling

PSProjectSystemWF

Workflow

ISIndustrySolutions

MMMaterials

Mgmt.

HRHumanResources

SDSales &

Distribution

PPProductionPlanning

QMQuality

Manage-ment PM

Plant Main-tenance

CSCustomerService Integrated Solution

Client / Server

Open Systems

ECEnterpriseControlling

AAAssetAccounting



PP Business Concepts

Order Settlement

Production

Cycle

Goods Receipt

(inward stock movement)

Order Processing

Production Order

Planned Order

MRP

Material Forecast (SOP)

Production

Order

Demand Management

Completion Confirmation

PurchasingCycle

BOMs

Routings

1

7

6

5

3

2

8

4

BOMs

Routings

9Sales

Cycle



Organizational Data

Is the foundation which must exist within SAP R/3 before any PP

business processes can be modeled or executed Defines the companys organizational and physical entities

Plant

Storage Location

Company Code



Organizational Data

What functionality does Organizational Data provide in Production

Planning? Allows materials, equipment, and planning to be the unique responsibility

of an individual or group

Since many individuals or groups may use similar data types, the

Organizational Data allows them to select only that data which is their

responsibility Using the key, these individuals or groups may display, process, or print

information en masse

PP Production Orders and Organisation


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PP Production - Orders and Organisation

Structures

Valuation Area

Company Codes

Controlling Area

Company

Sales Organization Purchasing Organization

Plants Demand Management Production Control MRP Inventory Management Production Order

Storage Locations / Batches / Special Stock


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Production Planning

MRP Controller

Run MRP and Create

Production OrderWarehouse

Produce

Skate

Sharpener

Receive

Goods to

Inventory

Ship Goods

to Customer

Production Order

Skate Sharpener

Production

Production Quantity

1,000

Start Date Jan. 6,

2003

Finish Date Feb. 1,

2003

Components

Forklift


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Factory Calendar

Material Master

Work Centers

Bills of Materials Routings

Production Resources and Tools

CAPP Formulas

PP - Data in Production

Master Data

Production Orders

Completion Confirmations

CO Object (Cost Collector)

Goods Movements (Receipt/Issue)

Transaction Data


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Master Data

Is staticdata which represents things (like account, cost center,

material, vendor and employee numbers) rather than events (whichwould be transaction data)

Is a central repository built in layers with each SAP R/3 module adding

its specific data to information already created by other modules

Is input to SAP R/3 transactions

Production Scheduler

Work CenterMaterial Masters

Bill of Materials

Routing


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PP Bills of Material

ITEM Co-product

Scrap

MRP data

Recursiveness

...

SUB-ITEM

- Quantities

- Installation point

HEADERStatus

Texts

Usage

...


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Product costing

Unit costing

Standard costing

Maintenance plan

Maintenance order

PP Integration of BOMs in the System

Material

Documents

Bill of material

Routings

PR/T

Work centers

Roughcut profile

ECM

Std trigger pts

Cost centers

Purchasing

Warehouse

Material requirements planning

Planned orders

Production orders

Controlling

Master Data

Plant Maintenance

Production

Materials Management

Sales order (for

variant configuration)

Sales and Distribution

BOM


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Material

PP BOM Categories

Equipment

BOM

Material

Master

Record

Material

BOM

Document

BOM

Equipment

Document

Document

Equipment

Master

Record

Document

Information

Record


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Transaction Data

Is dynamicdata, meaning it is typically changed or created many

times in one day Records a business activity or event

Product Costing

Order Type

Sales and Operation Planning (SOP)

Materials Requirements Planning (MRP)

Production Order

PP I i P i


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PP Integration Points

Planned Order

Production Order

Goods Issue

Goods Receipt

Purchase RequisitionMRP

Order Settlement

Completion

Confirmation

Sales Order

Sales Order

Processing

Stock Inventory

Shipping

Purchase Order

Goods Receipt

Actual Cost Update

G/L Account Update

SD FI/COPP

MM


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PP Inv. Management - Overview

Warehouse

Management

Accounting

Requirement

Production

(Internal Procurement)

Material Requirements

Planning

Transfer

Posting

Purchasing

(External Procurement)

Goods Receipt

Sales and Distribution

Invoice

Verification

Invoice

DemandStocks

Forecast

Goods

Issue

PP I M G d M


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PP Inv. Management - Goods Movement

Ad hoc.

Inventory Inventory

Transfer

Posting

Goods

Issue

Goods

Issue

ConsumptionSamples Sales Order

Goods

ReceiptDelivery Production

PP I M t


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PP Inv. Management

Inventory Management

GoodsIssue

From

Warehouse

From

Consignment

MaterialDocument

------ --------- ------ ---------- ------

Reservation

------ --------- ------ ---------- ------

ProductionOrder

------ --------- ------ ---------- ------

BOM

------ --------- ------ ---------- ------

ToConsumption

Cost Centre

AssetProjectSales Order

Scrap

Sampling

PP I M t T f P ti


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PP Inv. Management - Transfer Posting

1000

Company Code

2000

Company Code

Plant

1000

Plant

2000

Stor. Loc.2000Stor. Loc.1000

Stock Transfers

Stor. Loc.1000ConsignmentStore

Transfer Postings

Master

----- ------ ------------ - ----- --

------- ------- ---------

Product

789

Master

----- ------ ------------ - ----- --

------- ------- ----- ----

Product

123

Unrestricted

Use

Quality

Inspection

PP Inv. Management - Stock Fields in the


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PP Inv. Management Stock Fields in theMaterial Master

Plant: CSPLTotal =

Consignment in QIConsignment StockIn TransferReturns StockBlocked StockIn Quality InspectionRestricted Use Stock

Unrestricted Stock

Storage Location: Main

Total =

Consignment in QIConsignment StockIn TransferReturns StockBlocked Stock

In Quality InspectionRestricted Use StockUnrestricted Stock

Consignment in QIConsignment StockIn TransferReturns StockBlocked StockIn Quality InspectionRestricted Use Stock

Unrestricted Stock

Storage Location: FRPR

Total =Consignment in QIConsignment StockIn TransferReturns StockBlocked StockIn Quality InspectionRestricted Use Stock

Unrestricted Stock

Storage Location: WMST

Total =

PP I M t St k O i


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Open POs

Production

Orders

Reservations

WM StockMat. Movements

Display Material

PP Inv. Management - Stock Overview

Material XYZUOM pc

Unrestricted Quality ReservedUse Inspection

Total 10,000 2,400 550

COMP1 10,000 2,400 550

PLANT1 6,600 2,000 0

STOR1 2,000 0 0

STOR2 2,000 1,500 0

STOR3 2,600 500 0

PLANT2 3,400 400 550

STOR1 400 200 0

STOR2 0 200 550

STOR3 3,000 0 0


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Production Planning (PP)

1. Demand Management

2. FG & RM Planning

4. Prod. Order Execution

5. PO Close-out & Reporting

3. Prod. Order Preparation

- Maintain customer forecast

- Evaluate raw material forecast

- Run planning and evaluate results

- Convert planned orders into production orders and

purchase requisitions into purchase orders

-Link production orders and sales orders

-Finish final scheduling of orders

- Print shop floor documents

- Control components supply

- print labels

- post components consumption and finished goods

receipts

- Control and confirm PO bookings (qty and value)

- Close and settle production order

- Reports : usage & production

Costing

Master data

Pl i L l
http://localhost/SAP-Knowledge%20Transfer/SAP%20Knowledge%20Transfer/Mfg/Planning/44%20-%20Demand%20-%20Procedures.dochttp://localhost/SAP-Knowledge%20Transfer/SAP%20Knowledge%20Transfer/Mfg/Planning/44%20-%20Planning%20-%20Procedures.dochttp://localhost/SAP-Knowledge%20Transfer/SAP%20Knowledge%20Transfer/Mfg/Planning/44%20-%20PO%20preparation%20-%20Procedures.dochttp://localhost/SAP-Knowledge%20Transfer/SAP%20Knowledge%20Transfer/Mfg/Planning/44%20-%20PO%20preparation%20-%20Procedures.dochttp://localhost/SAP-Knowledge%20Transfer/SAP%20Knowledge%20Transfer/Mfg/Planning/44%20-%20Planning%20-%20Procedures.dochttp://localhost/SAP-Knowledge%20Transfer/SAP%20Knowledge%20Transfer/Mfg/Planning/44%20-%20Demand%20-%20Procedures.doc


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Planning Levels

Profitability Analysis Revenue Plans Sales Plans (Quantities)

Sales and Operations Planning Sales Plan

Production Plan

Master Planning Demand Program

Adjusted Master Plan

Material Requirements Planning Dependent Requirements

Master Plan

Procurement Plan

CO/PA

SOP

MPS

MRP

OK?

OK?

OK?

OK?

Product 1

Product Group

Region 1 Region 2

Assembly 2

Part 2Part 1

Assembly 1

Product 2Feedback/Corrections

PP S&OP Planning


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PP S&OP - Planning

May June July

Q

UA

N

T

I

T

Y

T I M E

Sales plan

Production plan

SOP provides a method for:

Sales planning

Production planning

Feasibility estimates

Capacity estimate

PP S&OP Planning Cycle


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PP S&OP - Planning Cycle

SOP

Sales Plan

Production PlanSIS

Forecast

Cons.

History

Forecast

Manual

Manual

COPA

CO

MM

SD

Transfer

Demand Management

Synchronous to Sales

Stock Level = 0

Target Stock Level

Target Days Supply

Manual

DISAGGREGATION

of Product Group

PP Independent Functional Data Flow


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Reservations

Warehouse

Independent

Requirements MRP

Demand

Management

SD

Processing

Production

Order

Order

Processing

Scheduling

Agreement

PurchasingFunction

( PO)

Invoice

Verification

PlannedOrder ConvertPlanned

Order

Dependent

Requirements

Final

Costing

Capacity

Planning

Warehouse

Purchase

Requisition

External Procurement

In-House

Production

PP - Independent - Functional Data Flow

PP Production Procurement Types


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PP Production - Procurement Types

ProductionOrder

------------------------------- --------- --- --

--------- --------------------------

In-House Production

PurchaseRequisition

------------------------------- --------- --- --

--------- --------------------------

External Procurement

PP Production - External Procurement


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Environment

Goods / Service

Receipt

PO

Created

Invoice

VerificationRequirement

Source

Determined

Vendor

Selected

Purchase

History

Invoice

PO

Delivery

MRP

Payment

Source ListQuota Arrangement

Outline Agreement

Info Record

PP ProductionDoc. Category, Order Category,


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g y, g y,Order Type

Document Category Orders Inventory Accounting Documents Financial Accounting Documents

Order Category

PP Production PS Network PM Maintenance Order CO Internal Order CO Production Order CO Model Order CO Results-Analysis Order

Order Type Production Order (Internal Number Assignment) Production Order (External Number Assignment)

Production Order (Specific Procedures)


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PP Production - Definitions in the Production


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Order

What is Produced?

For what Dates?

What Quantities are to

be Produced?

For Whom is Production

Being Carried Out

(Cost Object)?

What Resources and

Methods are Used?

What Costs are Involved

in Production?

- Products

- Activities

- Planned Order Dates

- Basic Order Dates

- Scheduled Dates

- Confirmed Dates

- Release- Start

- Finish

- Planned Order Quantity

- Production Order Quantity

- Material (Stock)

- Cost per Item

- Order- Asset

- Material Usage

- Production Resources/tools

- Inspections

- Planned Costs

- Actual Costs

PP Production - Maintain and Allocate Factory


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yCalendar

Maintain PublicHolidays

1.

Maintain PublicHoliday Calendar

2.

Maintain FactoryCalendar

3.

Allocate FactoryCalendar

4.

Public Hol. 1Definition

Public Hol. 2Definition

Public Hol. nDefinition. . .

Public Holiday CalendarDefinitionID: 08

Public Hol.-1. . .Public Hol.-n

Factory CalendarDefinitionID: P5

Public Hol. Calendar ID 08Plant Public Hol. DefinitionExceptions

Plant PP01


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PP MRP - Materials Planning Procedures

AutomaticReorder Point

Manual

Reorder Point

Forecast-Based Planning

Reorder PointPlanning

Consumption-Based Planning

PlanningProcedures

DeterministicMRP


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PP MRPConsumption Based MRP and

Deterministic MRP Differences

Deterministic MRP

MRP Including BOM Explosion Using the forecast for unplanned

additional requirements

Using the forecast for the

total requirements MPS represents a separate planning run

Consumption-Based MRP Manual reorder point planning

Automatic reorder point planning

Forecast-based planning

Start Delivery

Date Date

No Materials Planning

Reorder Point

Safety Stock

PP Capacity Planning - Environment


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PP Capacity Planning - Environment

Available capacity

10 20 30 40 50

Scheduling

t

Capacity requirementst

Basic data Production planning PM / PS

Capacity evaluation / leveling

Planned orders

Production orders

Process orders

SOP orders

Plant maint.

Projects

Calendar

ArbeitsplanRouting

TskLstGrp C 1

10 Center 1

20

30

Bill of material

MaterialMaterial

A

PP Capacity Planning - Elements of Capacity


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Planning

Available

Capacity

Scheduling

CapacityRequirements

Capacity

Levelling

CapacityEvaluation

PP Repetitive Manufacturing Process


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Setup Master Data

Planning

Backflushing

Capacity Planning

Reporting Tools (Evaluation)

Cost Controlling

Intro to Repetitive Manufacturing

Intro to Repetitive Manufacturing in SAP

Repetitive

Manufacturing

with

Cost Collector

PP Repetitive Manufacturing Process


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PP Industry Examples of Repetitive


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Stencil

&Paste

Process

BareBoards

Pick & PlaceMachine

Oven

Finished

PrintedCircuit

Boards

Chips,

Capacitors,

Resistors

Component

Reels

Manufacturing

Repetitive Manufacturing with Cost Collector


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Repetitive Manufacturing with Cost Collector

Planning Table

(Run Schedule)

Create RS Planned Orders

(Background)

Backflush

(GR, GI, AP)Reduce RS Planned Orders

(Background)

Cost Collector

Planning Table

(Run Schedule)

Backflush

(GR, GI, AP)

Create RS Planned Orders

(Background)

Cost Collector

Reduce RS Planned Orders

(Background)

Repetitive Manufacturing

with Cost Collector

MRP

Normal Planned Orders (Optional)

PP Repetitive Manufacturing


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PP Repetitive Manufacturing

Production line Production line

Make-to-order repetitive manufacturing

S.order

SDSD

Production line Production line

Make-to-stock repetitive manufacturing

Demand

management


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PP Material Staging and Backflushing


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PP Material Staging and Backflushing

Production line

BIOS RAM Processor

Motherboard

Board

Reporting Point Backflushing


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Reporting Point Backflushing

B C D

A

WIPStock

Mat AProduction Line

reportingpoint10

reportingpoint40

20 30

Component A

Component B

Component C

PP Repetitive vs. Discrete


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Workcenters Workcenters

1 2 3 4

Input

Output

1 2 3

5 6

Product

A

Product

B4




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- Products changefrequently

- Production in restricted productionlots

- Varying sequence of work centers(complex routings)

- Semi-finished products often putinto interim storage

- Material staged with reference toproduction lot / order

- Release procedure- Completion confirmation for

individual operations or orders

- Order-based cost controlling

Discrete Manufacturing Repetitive Manufacturing

- Same product produced over a loperiod of time

- Period-based planning

- Steady flow through production

(simplified routings)- Semi-finished products often

directly processed without interistorage

- Components are staged at lines,with no reference to production l

- Reduced administrative effort (noreleaseprocedure)

- Completion confirmation based operiods (backflushing)

- Period-based cost controlling


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0

1

2

3

4

5

6

Category 1 Category 2 Category 3 Category 4

Chart Title

Series 1 Series 2 Series 3


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0 1 2 3 4 5 6

Category 1

Category 2

Category 3

Category 4

Chart Title

Series 3 Series 2 Series 1


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Sales

1st Qtr 2nd Qtr 3rd Qtr 4th Qtr


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1

2

3

4

5


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