Thursday, 26 January 2017

Manufacturing Process in SAP Production Planning




PP-Discrete:  Required where there will be discrete orders passing through a work center, here the capacity planning plays major role. i.e. if you have a lath machine, many orders are going through this lathe m/c and schedule plays very important role w.r.t lath as well as the product as the product has to go through many work center. Every time the product many not be same can be different, but same work center can be used for many products.
PP-PI: Mainly concerned with quality parameters and Process management i.e control recipe is configured in this module. But the difference is the o/p is almost same, you will not change the product, but every step is very important to achieve the product quality. And it is entered by operator and approved by shift supervisor through control recipe function.
PP-REM: Mainly to reduce the data input by person working in SAP and in this case we are bother by the period end costing and not the each order level costing as the process is repetitive and one order is sufficient for the whole life.
 



Characteristics of discrete, process and repetitive manufacturing types:

Characteristics of production type
Discrete Manufacturing (SFC)
Process Manufacturing (PP-PI)
Repetitive Manufacturing (REM)
Product stability / complexity
Complex production process with intermediate storages
Complex production process and generally without bulk intermediate storage (mostly continuous-flow and liquid-based production)
High-volume or mass production, highly stable and without any production complexities
Production flow
Order-based and with intermediate storage
Order-based and mostly used in producing materials that flow, such as liquids, (or that can't disassemble)
Lean (simple) manufacturing
Change-over from one product to another
Frequent
Frequent
Infrequent
Make-to-stock and make-to-order production method
Supported
Supported
Supported
Batch management
Yes
Yes (extensive utilization)
Yes
Active ingredient management
Not available
Available
Not available
Material quantity calculation
Not possible
Possible
Not possible
Completion confirmation (backflush)
For individual operations or orders
For individual operations or orders
Period-based confirmation with backflush
Order-related production
Yes (production order)
Yes (process order)
No (planned orders)
Production-based
Lot size-based production
Lot sized-based production
Period- and quantity-based production
Cost object controlling
Order-based costing
Order-based costing
Period-based costing (using product cost collector)
Process management
Yes (process integration)
Yes (process management)
No (operational method sheet)



Tuesday, 17 January 2017

Consumption Based Planning in SAP



In Consumption Based Planning, SAP uses the past consumption data to calculate the future requirements. There are three procedures within MRP:

1. Re-order point planning
2. Forecast based planning
3. Time phased planning


Re-order point planning

§  Procurement is triggered when the sum of plant stock and firmed receipts fall below the reorder point
§  The reorder point is calculated as the material demand during replenishment lead time
§  The Safety Stock (SS) takes care of both excess material consumption within the replenishment lead time and additional requirements that may occur due to supply delays.


Where:
z = service factor based on desired service level
L = average lead time
σD =standard deviation of demand
D = average demand
σL = standard deviation of lead time

We can use Manual Reorder Point or Automatic Reorder Point

§  Manual Reorder Point: The planner manually enters the reorder point and the safety stock in the individual material master record. It corresponds to the MRP type VB.

§  Automatic Reorder Point: The system calculates the reorder level and the safety stock level using past consumption data of the material to forecast future requirements. It corresponds to the MRP type VM.



 Forecast based planning: 

Forecast-based planning is also based on material consumption. Like reorder point planning, forecast-based planning operates using historical values and forecast values and future requirements are determined via the integrated forecasting program. However, in contrast to reorder point planning, these values then form the basis of the planning run. The forecast values therefore have a direct effect in MRP as forecast requirements.
The forecast, which calculates future requirements using historical data, is carried out at regular intervals. This offers the advantage that requirements, which are automatically determined, are continually adapted to suit current consumption needs. The forecast requirement is reduced by the material withdrawal so that the forecast requirement quantity that has already been produced is not included in the planning run again.

§  It is also based on historical data -the past material consumption data- and future requirements are determined by the forecasting program
§  Here the forecast values are used in MRP as the forecast requirements
§  Based on the consumption pattern the system changes the forecast requirements for future
§  MRP type needs to be entered as VV

Time phased planning:

§  In this MRP procedure, the date of the planned requirement should coincide with a known date, such as the date when the supplier delivers
§  Requires that the material forecasting be completed for the material
§  MRP type needs to be entered as R1
§  This is used specially in case if the planning cycle is known.
§  The materials planned using this is given an MRP date in the planning file.
§  This date is set when creating the material

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