NTPL BBP PP v1 Overview

Production Planning and Control
Production Execution Process

BBP Document
Presented To
For the Project
By
Mawai Infotech Ltd Confidential page 1/43

Document History
AUTHORS & PARTICIPANTS

Name Role
Mr.Ronak Chiripal Project Sponsor
Mr.Sasank Aich Proj Coordinator
Mr.Parmod Kumar Proj. Manager – NTPL
Mr. Asish Rawal Business process owner(Spinning)
Mr. Sudip Das Business process owner(Weaving)
Mr. Mayur Mehta Business process owner(Processing)
Mr. Jagdeep singh Business process owner(CSP)
Mr. Dhirendar Singh Business process owner(PPC)
Mr. Sudip Das Business process owner(PD)
Mr.Nikul Parmar Core User(Spinning)
Mr.Sandeep Mehra Core User(Weaving)
Mr.Nikhil Singh Core User(Processing)
Mr.Akhlash Kumar Core User(CSP)
Mr.Manoj Sharma Core User(PPC)
Mr.Sandeep Mehra Core User(PD)
Mr. Anil Singh Proj Manager – Mawai
Mr. Anil Singh Consultant- Mawai
REVISION HISTORY
Date Document Version Document Revision Author
Description
REVIEWED AND APPROVED BY

Name Title Date Approved
Proj Sponsor
Proj Coordinator
Proj. Manager – NTPL
Proj Manager – Mawai

Business process owner
Business process owner
Core User
Core User
Core User
IT Coordinator

Production Planning and Control 1
1 Introduction 5
1.1 Basic Documents 5
1.2 Business Scope 5
1.3 Material Master Processing 6
1.4 Planned Independent Requirement 6
1.5 Material Requirements Planning 6
1.6 Production Orders 6
1.7 Order Confirmation 6
1.8 Stock Transfers 6
1.9 Integration Considerations 6
2 Business Expectations 7
3 Organization Structure 7
3.1 Overview of PP Organizational Units 7
\
3.1.1 Naming Convention 8
3.1.2 Assignment of SAP Organizational Units 8
3.1.3 COMPANY CODE: 8
3.2 Organizational Unit: plant 9
3.2.1 Requirements & Expectations 9
3.2.2 Global Design Decisions 9
3.2.3 Naming Convention 9
3.2.4 Assignment of SAP Organizational Units 9
3.2.5 Configuration Considerations 9
3.2.6 Authorization/Security Considerations 10
4 Master Data 10
4.1 Material Master 10
4.1.1 Base unit of Measure 12
4.1.2 MRP Group 12
4.1.3 Re-order Point 12
4.1.4 MRP Type 12
4.1.5 MRP Controller 12
4.1.6 Lot Size 13
4.1.7 Procurement Type 13
4.1.8 In house Production time 13
4.1.9 Planned delivery time 13
4.1.10 GR Processing Time 13
4.1.11 Schedule Margin Key 13
4.1.12 Safety Stock 14
4.1.13 Planning Strategy Group 14
4.1.14 Availability Check Lot Size 14
4.1.15 Work Scheduling View – Key Fields Lot Size 14
4.1.16 Production Scheduler 14
4.1.17 In-house Production Time in Days 15
4.2 Bill of Material 16
4.2.1 BOM Item Number 17
4.2.2 BOM Component 17
4.2.3 BOM Component Quantity 17
4.2.4 Unit of Measure 17
4.2.5 Item Category 17
4.2.6 Header Data 18
4.2.7 Item Data 18
4.3 Work Center 18
4.3.1 Person responsible for work center 21
4.3.2 Capacity Planner 21
4.3.3 Cost center Vs Work center 21
4.4 Routing 22
4.4.1 Control Key 23
4.5 Production Version 23
4.6 Production Execution 24
4.6.1 Planning with Final Assembly under Make to Stock (Strategy -40) 24
4.6.2 Demand Management 24
4.6.3 Material Requirements Planning (MRP) 25
4.6.4 Production Orders (Shop Floor Control – SFC) 30
1. Creation of production order 31
2. Release of production order 31
3. Goods Issue for Production order 31
4. Order Confirmation (Finished or Semi Finished) 32
5. Goods Receipt against Production order (Finished or Semi Finished) 32
6. Technical Completion of Production order (TECO) 32
7. Production order Settlement 33
4.6.5 Process Flow – Make to Stock 34
4.6.6 Rework Order Processing 36
5 Business Processes 39
5.1 Product Development (PD) 39
5.2 Production Planning and Control Process (Yarn PPC) 39
5.3 Production Planning and Control Process (Towel PPC) 39
5.4 Raw Cotton Issue Process and Control (SPINNING) 39
5.5 Spinning Production Process (SPINNING) 39
5.6 Weaving Production Process (Weaving) 39
5.7 Processing Production Process (Dyeing House) 39
5.8 CSP Production Process (CSP) 39
5.9 Security Requirements / User Management 39
5.10 Organizational Changes 39
5.11 RICEFW 39
5.11.1 Reports 39
5.11.2 Interfaces 40
5.11.3 Conversions 40
5.11.4 Enhancements 41
5.11.5 Smart Forms 41
5.11.6 Workflows 41
6 Glossary 42

1 Introduction
This document states all of the conceptual results of the project NTPL. These project results were devised and
decided on by the project team and the department experts from customer NTPL Terry Towel Ltd during the
Business Blueprint project phase. This is the main concept document of the project. It is supplemented by separate
specifications for custom developments.
The content of this document forms the basis and the guidelines for the subsequent realization phase.
This document aims to describe the future business solution based on SAP software. Both IT subjects and
organizational issues that are required to understand the situation are described in it.
Any additional explanations that are only relevant when the project is in progress are given in the various project
management plan documents, which the project management team will provide on request.
1.1 Basic Documents

The Business Blueprint Document is result of process map, based on the exchange of AS-IS documents, workshops
and discussions. These documents have been submitted by NTPL and will be used as reference in finalization this
BBP documents.
1.2 Business Scope

Every company is structured in a certain way. In order to work with the SAP System, company structure has to be
represented in the system. This is done with the help of various organizational structures.
In production planning & control, products are manufactured or consumed with in a particular plant. Data about the
products is the basis for Production Planning & Control processing. Production processing with the SAP HANA
System requires that the master data has been stored in the system.
In addition to Production Planning & Control, other departments of the company such as accounting or materials
management also access the master data.
The processing of business transactions in Production Planning & Control is based on the master data.
Production Planning can be divided into the following:
 Manufacturing Planning
 Manufacturing Execution
Manufacturing Planning is the process of using a production plan and customer demand to create production
and procurement schedules for finished products and component materials. The manufacturing planning
processes include:
 Capturing accurate sales and sales forecasts/production plans for individual assemblies and products.
 Implementing production strategies for final assemblies, sub-assemblies and finished products which
are consistent with customer requirements and internal goals.
 Using planning parameters and options to create accurate production schedules for all components.
Manufacturing Execution and Control is the process of assembling or producing finished products, component
materials and recording all shop floor activities and inventory movements. The manufacturing execution and
control processes include:
 Using the production orders to control and track production activities
 Determining component requirements and reducing component inventory levels
 Tracking actual production to identify ways to decrease costs and improve the production process
Production Planning tailors supply chain optimisation for efficient production and allows NTPL to schedule and
optimise production planning, including the procurements of mandatory and non-mandatory components and
replenishments.
The Production Planning and Control module in SAP covers the following business processes:
1.3 Material Master Processing
Production planning data in a material master record is defined for a specific plant and storage location. The MRP
type, Lot Size, Strategy Group, MRP Controller, Production Scheduler, for example, are included in production
planning data. The fact that a material is assigned to a MRP Type, the materials are planned according to different
planning modes (Planning Criteria). Production planning data is divided into data that depends on the Production
Planning View.
1.4 Planned Independent Requirement
Planned Independent Requirement (P.I.R.) is the material wise production program for a plant. P.I.R. is to be created
by production after discussion with marketing department. P.I.R. is a production plan based on previous sales trend
and sales forecast.
1.5 Material Requirements Planning

System calculates the requirement dates and quantities for all the materials for a plant taking into account all the
considerations for Lead time to procure, materials required to procure etc. System creates planned orders &
Purchase requests according to the procurement type.
1.6 Production Orders

Production Order is a document which contains every information like, the process steps to be followed to produce a
material, the resource at which production has to be carried out, process time, etc. Production Order is a document
which gives the information, what to produce, when to produce, how to produce & where to produce.
1.7 Order Confirmation

Production Order confirmation determines that the production is over and the order quantity for the material is
received in the stock. At the time of confirmation the user gives a lot of information like, Yield quantity, order start
time, order finish time, GR quantity, GI quantity, Reason for variance, activity consumed etc.
1.8 Stock Transfers

In stock transfer from one plant to another, the expectation would be that we can carry out transfers from / to locations
with full trace ability. This happens when one Plant (Storage Location) requests the material from Manufacturing
Plant/or another Storage Location.
1.9 Integration Considerations
Any organization works collectively to meet certain predefined organizational goals. All the functions like Marketing,
Finance, Materials, Production, and Quality etc. should be synchronized to achieve that common objective effectively
utilizing the minimum possible resources. Therefore, in SAP it is required that organization structure in PP be
synchronized with the organization structure of FI and MM , PD modules.
The production process is well integrated with the Materials Management, Sales & Distribution, Quality management,
Controlling, Finance, Human Resource and Plant maintenance as illustrated below.

2 Business Expectations
Need to see the Product wise or Model wise tresability on the system.
 Production plan Vs Achievement report.
 Smoothly MRP Run.
 Material availability and Capacity monitor through system.
 System calculate the machine wise accurate overall effeciency (OE).
 All materials should be issued from the store based on FIFO..
 Wastage quantity should be consider in SAP.
3 Organization Structure
In the SAP system, organizational levels are structures that represent the legal or organizational views of a
company.
3.1 Overview of PP Organizational Units
Company Code:
The Company Code is the Organizational unit for which we can have an independent accounting
department within external accounting, for example, a company within a corporate group (client). In SAP, a
company code is represented by a unique 4-digit alpha-numeric for a specific client. It is the central
organizational element of Financial Accounting. At least there is one company code in a client.
The process of external reporting involves recording all relevant transactions and generating all supporting
documents required for financial statements such as balance sheets and profit and loss statements.
Note*: Company code has been defined under FI module
Plant:
A plant is an organizational unit within SAP, serving to subdivide an enterprise according to

procurement, maintenance, production and materials planning. A plant is a place where either
material is produced, or goods and services are provided. Material stocks are valued at plant level.
Different valuations can also be created at plant level (structure would be as defined by the
Materials Management module).
Storage Location:
An organizational unit facilitating differentiation between the various stocks of a material within a plant
is called a storage location. The structure would be as defined by Materials Management
Business Blueprint.

Organisational Structure for PP
Company Code
(1000)
Plant-1010 Plant-1020 Plant-1030 Plant-1040 Plant 1050

(10((GP01)
Storage Locations
MRP Capacity Person Work

Controller Planner Responsible for Scheduler
Group Work center
3.1.1 Naming Convention

Following naming convention is used to identify a Company Code in SAP.
CODE DESCRIPTION
1000 NTPL
3.1.2 Assignment of SAP Organizational Units

Company code is assigned to a company which represents whole group.
COMPANY CODE DESCRIPTION COMPANY DESCRIPTION
1000 NTPL 1000 NTPL
3.1.3 COMPANY CODE:
A company code has the following attributes:

A company code has an address.
A company code has a language.
A company code belongs to a country.
A company code has a currency.
All company codes having common GL accounts and can be maintained in company code level.
All ledgers will be updated Company code wise and Profit Center wise.

Company Name 1 Name 2 Address Country Language Currency
Code
1000 NTPL IN EN INR
3.2 Organizational Unit: plant

The plant is an organizational unit within logistics that subdivides an enterprise from the viewpoints of
production, procurement, and materials planning.
3.2.1 Requirements & Expectations

Currently all manufacturing units need to be mapped to SAP as plants and in future expansion provision
need to be provided to support Depots which are part of NTPL.
3.2.2 Global Design Decisions

 All the manufacturing units based on operating location are identified as separate plants in
NTPL.
 A plant is defined in the system by means of a four-character numeric key that is unique in the
client
 Plant has an address
 Plant is assigned with Factory calendar
 Plant is assigned to a company code
3.2.3 Naming Convention

Following naming convention is used to identify a Plant in SAP
Plant Description
Code
1010 NTPL Yarn
1020 NTPL Dyeing Yarn
1030 NTPL Weaving
1040 NTPL Process
1050 NTPL CSP
3.2.4 Assignment of SAP Organizational Units
Plant is assigned to a company code which represents separate legal entity in group.
Plant Description Company Code Description
Code
1010 NTPL Yarn 1000 NTPL Limited
1020 NTPL Dyeing Yarn 1000 NTPL Limited
1030 NTPL Weaving Unit 1000 NTPL Limited
1040 NTPL Process 1000 NTPL Limited
1050 NTPL CSP 1000 NTPL Limited
3.2.5 Configuration Considerations

A plant has the following attributes:
A plant has an address.
A plant has a language.
A plant belongs to a country.
A plant has its own material master data. You can maintain data at plant level for the following views
on a material master record in particular: MRP, Purchasing, Storage, Sales, Costing, etc.
The material stocks are managed within a plant.
Plant Name1 Name 2 Country Language Factory Address

Code
1010 NTPL Yarn NTPL Yarn IN EN Calendar
MS NTPL Limited,
1020 NTPL Dyeing Yarn NTPL IN EN Factory
MS Jodhpur Road.
NTPL Limited,
1030 NTPL Weaving Unit Dyeing
NTPL IN EN Calendar
Factory
MS Pali-
NTPL 306401
Jodhpur Road.
Limited,
1040 NTPL Process WRWeaving
Yarn
NTPL IN EN Calendar
Factory
MS Pali- 306401
Jodhpur Road.
NTPL Limited,
1050 NTPL CSP Unit
Process
NTPL CSP IN EN Calendar
Factory
MS Pali-
NTPL306401
Jodhpur Road.
Limited,
Calendar
Factory Pali- 306401
Jodhpur Road.
Calendar Pali- 306401
3.2.6 Authorization/Security Considerations
Authorization of data access and transaction processing will be restricted at plant level for core users
and end users.
 For business process owners and management, authorization will be given to access group level MIS
data
SOD Matrix will be finalized at Realization phase
4 Master Data
4.1 Material Master
NTPL will be able to plan all the production activities for every material exclusively with relevant information
structure and hence make the production planning more elaborate. The inventory is more controlled on
material basis.
 For every process each material will have a distinct material code.
 Data for each material corresponding to every business process will be contained in one master record –
Material Master.
Business Process Diagram:

Solution in SAP
 The Material Master Record for NTPL contains information on all the materials that NTPL currently
procures produces, stores or sells.
 The Material Master Record contains Production Planning data for material requirements planning;
schedule planning, and work scheduling.
 Some material data is valid at all organizational levels, while other data is valid only at certain levels.
For production planning the material data is valid at plant level.
 Materials which are to be stored in the plant must be assigned to a storage location. A material can
be stored at several storage locations. To store data specific to each storage location a relevant
material master record must be created or extended for each storage location.
Data in Material Master Record will be of the following two categories

 Descriptive nature
 Control nature
For NTPL the following views related to Production Planning will be maintained in Material Master Record.
 MRP Views – for Finish, Semi Finish and Raw Materials.

 Work Scheduling View – for Finish, Semi Finish only.
The following are key fields to be maintained in Material Master Record based upon the requirement for each
material and process.
MRP Views – Key Fields
MRP views have to be maintained for those materials which are valid for planning.
The following are some of the key fields in MRP views relevant for NTPL:

4.1.1 Base unit of Measure
Base unit of measure is the unit of measure in which stocks of the material are managed. The alternative
unit of measure can also be maintained if required. The system will automatically convert the alternative
unit of measure quantity to base unit of measure quantity for the material.
4.1.2 MRP Group
The MRP group contains all the materials from the point of view of MRP for assigning special control
parameters for the total planning run. MRP Groups will be same as following:
MTS Make to Stock

MTO Make to order
4.1.3 Re-order Point
The re-order point will be maintained only for those components which are planned using re-order
point planning.
4.1.4 MRP Type
MRP type is the key that determines whether and how the material is planned. The Company will
have the following options:
 Manual Re-order Point Planning

 Material Requirements Planning (MRP)
MRP TYPE Description
PD MRP
VM Automatic reorder point planning
ND No Planning
4.1.5 MRP Controller
The MRP Controller is the person responsible for a group of materials within Material Requirements
Planning in a plant. Any material that takes part in material requirements planning must be assigned
to an MRP controller. The Company will have different MRP Controllers for different plant where MRP
is required.
MRP Controller Description

001 PPC Yarn
002 PPC Yarn Dyeing
003 PPC Weaving
004 PPC Processing
005 PPC CSP

4.1.6 Lot Size
Lot size is the key that determines which lot-sizing procedure the system uses within materials
planning to calculate the quantity to be procured or produced. In most of the cases lot for lot order or
fixed order quantity will be used for final or sub-assemblies and also daily, weekly or monthly will be
used for the components.
Lot Size Description
EX Lot-for-lot order quantity

MB Monthly lot size
WB Weekly lot size
HB Replenish to maximum stock level
4.1.7 Procurement Type
Procurement type determines whether the material is valid for in-house production, external
procurement or both. The following options will be available:
Procurement Type Description

E In-house Production
F External Procurement
X Both procurement types
4.1.8 In house Production time
In-house production time is defined in workdays which are needed to produce the material in-house.
In this field In-house production time is independent of the order quantity.
4.1.9 Planned delivery time
Planned delivery time is the number of calendar days needed to obtain the material or service if it is
procured externally.
4.1.10 GR Processing Time
GR processing time is the number of workdays required after receiving the material for inspection and
placement into storage
4.1.11 Schedule Margin Key
Schedule margin key is the key that the system uses to determine the floats required for scheduling
an order. The following floats will be defined for NTPL against one scheduling margin key:
 Opening period
 Float after production (only in the case of in-house production)
 Float before production (only in the case of in-house production)
 Release period (only in the case of production order management)
Floats are maintained in workdays.
Schedule Margin key Description

000 Ze No Float
001 1 Day After Production
002 1 Day Before Production
4.1.12 Safety Stock
Safety stock can be defined for all materials.
4.1.13 Planning Strategy Group
Planning strategies represent the business procedures for the planning of production quantities and
dates. A wide range of production planning strategies are available in the SAP R/3 System, offering a
large number of different options ranging from pure make-to-order production to make-to-stock
production.
Scenario Planning Strategy Description

MTO 20 Make to order Production
MTS 40 planning with Final Assembly (40)
4.1.14 Availability Check Lot Size
Availability check determines how the system checks availability and generates requirements for
materials planning.
4.1.15 Work Scheduling View – Key Fields Lot Size
Work scheduling views have to be maintained for those materials which are valid for planning. The
following are some of the key fields in work scheduling views relevant for NTPL.
4.1.16 Production Scheduler
The Production Scheduler uses extensive automation to enable or simplify the definition, scheduling,
execution and control of periodically recurring tasks for the plants. The Company will be having a
different Production Scheduler for different shops in plant where production activities are carried out,
as illustrated below:
Production Scheduler Description
MX1 Mixing- Spinning
CD1 Carding- Spinning
BD1 B Draw Frame- Spinning
LP1 Lap Former- Spinning

CM1 Comber- Spinning
FN1 Finisher- Spinning
SF1 Speed Frame- Spinning
OP1 Open end- Spinning
RF1 Ring Frame- Spinning
LK1 Link winding- Spinning
PW1 Parallel Winding- Spinning
TF1 TFO- Spinning
PK1 Packing- Spinning
YD1 Yarn Dying-Yarn Dyeing
YPK Yarn Dying Packing-Yarn Dyeing
WR1 Warping-Weaving
SZ1 Sizing-Weaving
LM1 Weaving-Weaving
SR1 Grey Sharing-Weaving
RW1 Rewounding-Weaving
DY1 Dyeing-Processing
PFN Finishing-Processing
CSH Sharing-CSP
CLC Length Cutting-CSP
CLM Length Hammping-CSP
CCC Cross Cutting-CSP
CPK Packing-CSP
4.1.17 In-house Production Time in Days
If the production is lot size dependent then the following fields should be maintained or should be
updated through routing schedule update.
 Set-up Time
 Processing Time
 Interoperation Time
 Base Quantity
All the time fields here will be maintained in days.
4.2 Bill of Material

Bill of material is a structured tree of components required to make a product.
Costing of finished products becomes more structured and precise taking in to account the costs of all the constituents
required to produce the product.
Changes to existing organization

Formally structured list of materials required to produce every finished material will be maintained.
Description of improvements
Costing will be more Structured and precise.
Business Process Diagram:
Solution in SAP
A bill of material (BOM) is a structured list of the components that make up a product or assembly. The BOM
contains the following:
 Component
 Quantity
 Unit of measure
The Company has many Finished and Semi-finished products which are categorically maintained for individual
plant.

The BOM is used to calculate material cost, MRP and for goods movement.
Bills of Material Details
The Company plant has many Finish and Semi finish Materials, they categories their production process into the
following:
 Making Final Material

 Making Semi Finish Materials
MRP will be carried out for Finish Materials. For other components planning will depend upon high or low value
items or items planned specifically for orders or production plans.
It is possible that some of the Finish and Semi finish Materials may have alternative bills of material.
BOM will be used in NTPL for various situations where a Finish Materials is produced from several component
parts or materials. The BOM will contain important data for different areas of NTPL i.e.
 MRP
 Material provisions for production
 Product costing
For production in NTPL, material BOM will be created in the system. Bills of material will be created for each
Finish and Semi finish Materials at plant level.
Key Fields - Bills of Material
For NTPL the following key fields will be maintained in the bill of material:
4.2.1 BOM Item Number
This number refers to the sequence of BOM components.
4.2.2 BOM Component
The material number will be entered as components for the header material for which the BOM is to
be maintained.
4.2.3 BOM Component Quantity
The BOM component quantity of the component is to be entered in relation to the base quantity of the
product.
4.2.4 Unit of Measure
The unit of measure is copied over by default from the material master record. An alternative unit of
measure can be maintained for components entered here.
4.2.5 Item Category
The item category can be set by default for the user. It refers to the object for example – material,
document etc. The following item categories will be relevant for NTPL:

Item Category Description
L Stock Item
N Non-Value Item
4.2.6 Header Data
The following key data can be maintained in the header data:
 BOM Text - BOM Text is short text which describes the whole BOM.
 Alternative BOM text - this text describes an alternative BOM.
 Base Quantity - is set by default to one and always based on the Base Unit of Measure.
4.2.7 Item Data
The following key data is maintained for the header data:
 Component Scrap - can be maintained as a percentage. This is the percentage of scrap that occurs
during production of the material.
 Costing Relevancy - for the component can be maintained in this field. By default, all the components
will be costed for assembly in NTPL.
4.3 Work Center

Together with BOM and Routings, work centers belong to the most important master data in the production
planning and control system. Work centers are used in Routings and production orders.
Data in work centers is used for:
Scheduling
Operating times and formulas are entered in the work center, so that the duration of an operation can be
calculated.
 Costing
Formulas are entered in the work center, so that the costs of an operation can be calculated. A work center is
also assigned to a cost center. More than one work center can be linked to a single Cost Center; however a
single work center cannot be linked to more than one Cost Centers.
 Capacity planning
The available capacity and formulas for calculating capacity requirements are entered in the work center.
 Simplifying Routing maintenance
Various default values for operations can be entered in the work center.
A work center is mainly used for:
 Determining Available Capacity for a period with certain % of capacity utilization. For example, a work center is
available for 8 hours per day of production for January through April, 16 hours from May through July, shut
down for the first 2 weeks of August, and then back to 8 hours of availability from the middle of August until
year end.

 Setting up Scheduling & Capacity parameters
 Setting up different variable cost components in relation to Standard Values for a particular cost center in order
to calculate the in-process cost for production
Standard values are planned values for the execution of an operation and are maintained in the operation.
Typical standard values are, for instance, machine time, setup time, labor time, etc. The execution time, costs
and capacities are calculated in operations using formulas from the work centers and standard values from the
Routings.
In the SAP system, work centers are business objects in a plant that can represent the following real work
centers, for example:
Machines, machine groups

 Production lines
 Assembly work centers
Employees, groups of employees
The above mentioned examples are basically various „Work center categories‟ in SAP and each work center is
created with a code for certain category.
Plant Work Center Category Work Center Code (8 Char. Description (40 Char. Max.)
(0001 or 0003) Max.)
* 0001 10MS0001 work center
Note: This is an example of work center. Decision for creation parameters for work center pending from
NTPL.
 Each work center will be created for specific plant and will be assigned to a relevant cost center
 For others, work centers will be created for individual machines, for example, different process for components,
general machines, etc. Each work center will have single capacity as equal to that of individual machine.

For identical machines, working as pooled capacity to cater similar processing requirements, there will be
created single work center with capacity equal to the number of machines available in that pooled capacity. For
example, SSW (stationary spot welding) machines, etc.
For work stations where manual work, like grinding, trimming, etc. is performed by operators, there will be
created single work center of category „0003‟ – labor type. If desired, the capacity of this work center may also
be entered as equal to the number of operators.
For plating units, heat treatment, etc. will also be created as individual work center similar to processes.
Available capacity will be mentioned for each work center as per the actual no. of hours available per day to
calculate the capacity utilization & available capacity. The available capacity will be maintained either
individually for separate period, for example different months, or a single entry applicable for entire period. This
will be decided during data migration / master data creation phase.
 Work centers will be attached to routings of finished or semi-finished goods. Together with routing, it helps
system to calculate the in-process costs or variable costs related to the production of a particular product. The
in-process cost together with raw materials cost makes the basis for product costing.
Accordingly, Standard value parameters, created as a part of customizing activity, will be clubbed together under
various “Standard Value Key”. Each standard value key will be assigned to individual work center as per applicability.
Sl. No. Standard Value Description (30 Char. Max.) Assigned Parameters
Key (6 Char.
Max.)
Value 1 SAP_01 Setup Time
Value 2 SAP_02 Machine Time
Value 3 SAP_03 Labor Time
ZPACK Packing Materials & Sewing Thread
ZSTEAM Steam
ZWATER Water
ZWAGE Wages & Salaries
ZVCC Variable Contr. Charges
ZPOWER Power
ZSTORE Stores,Spares,Repair & Maint
ZDEPA Depreciation
The standard values against each parameter will be maintained within the routing as per finished or semi-finished
goods production requirement. These values will be taken by the system internally to calculate the variable costs for
the production of certain quantity of finished or semi-finished goods.
 There will be a maximum of 6 Activity types per work center to be attached to standard value parameters for
costing purpose. However different work centers may have different activity types & their rates which will be
maintained at the cost center level. For example, if one cost center is having 3 work centers and each is having
different activity rates, then the activities rates will be planned accordingly at the cost center level and will be
assigned to the work centers.
 At the time of confirmation, only few standard values will be keyed in as per actual (to be decided in Realization
phase). The actual vs. standard will be further used to calculate Man-hour Efficiency/ Production Efficiency etc.
Rest of the standard values for activities will be confirmed at planned value only.
When the Work center will be assigned to a routing, then based on the value mentioned against each standard value
in the routing, system calculates each variable cost by multiplying the planned rate of corresponding activity type.
For the details of Activity type and Activity Type Planning, refer to the blueprint document for Controlling (CO)
module.

4.3.1 Person responsible for work center
With this key, a person or group of people responsible for maintaining the master data in certain
workcenter‟s are identified and assigned to concerned plant.
The person(s) is normally not responsible for planning tasks but is responsible only for the
maintenance of the work centre parameters, like available capacity, costing data, activity types‟
assignment, cost centre etc.
The following codes for “Person Responsible for Work Centres” will be created in the system for each
plant of NTPL based on the production line responsibility:
Person responsible for Work Center Description
Z1 Spinning Team
Z2 Weaving Team
Z3 Inspecton Team
Z4 Processing Team
Z5 CSP Team
Z6 Yarn Dyeing Team
4.3.2 Capacity Planner
With this key, a person responsible for maintaining the capacity master data in certain work centers is
identified. The capacity planners are not maintained/ assigned to any plant.
The person(s) is normally not responsible for planning tasks but is responsible only for the
maintenance of the capacities, like available capacity, costing data, etc.
The following codes for “Capacity Planners” will be created in the system for NTPL based on the
production line responsibility:
C Capacity Planner Code (3 Char. Description (20 Char. Max.)

Max.)
Z1 NTPL PPC Dept
The ‘Capacity Planner Group’, required for defining & attaching the Capacity to each work center, will be same as
‘Person responsible for Work Center’.
4.3.3 Cost center Vs Work center
Capacities are differentiated according to capacity category. They are arranged hierarchically under a
work centre.
Formulas are entered in the work centre, so that the costs of an operation can be calculated. To
capture the cost of operation, a work centre is also assigned to a cost centre.

More than one work centre can be linked to a single Cost Centre; however a single work centre
cannot be linked to more than one Cost Centres.
Each work centre, created for specific plant, will be assigned to a relevant cost centre.
The following diagram shows the Work Center and Cost Center relation per manufacturing
plant, which will be created in SAP. The category of capacity will be same as that of work
center, i.e. Labor& Machine:
Work Description Cost Description (20 Char. Max.)

Center Center
(10 Char.
Max.)
10MS0001 Cutting work center 10MS0001 *
Note: This is an example of work center.
4.4 Routing
A routing is a description of operations (process steps) that has to be carried out in a specific sequence so as to
produce a material (product). A routing also contains details about the work centers at which they are carried out as
well as standard values for the execution of individual operations.
Routings are used:

To reflect the capacity required in production.
To reflect the set-up, machine and labor capacity in the production.
To capture the material needed in order to produce certain orders.
To provide operation instructions and quality inspection (as operations) in production.
To provide alternate Bills of material.
To provide alternate or parallel Sequence of operations.
Routing is created for every finished & semi-finished goods which undergo in-house manufacturing processes. The
routing data are maintained at plant level for such materials. A routing in SAP system is recognized by a Group
Number and a corresponding Group Counter.
Group number is assigned automatically by the system once the routing is created for finished or semi-finished goods.
Group counter is similar to an alternate BOM number that system assigns to the different version. The first rate routing
will have the group counter 1 whereas for subsequent creation of rate routings for the same materials will
automatically assign next group counter in serial manner. So the group number signifies particular finished or semi-
finished goods, whereas the group counter signifies different versions of the same routing.
In a routing, operations are defined in relation to a particular work center. Standard values are also defined in relation
to the Base quantity of finished or semi-finished goods for which routing is created. BOM is also attached to the
operation(s).
Similar to BOM& Routing will be created for each finished & semi-finished goods specifically for each manufacturing
plant under NTPL.

For all finished or semi-finished goods, Routing will be created with different operations linked to relevant work
center and the relevant BOM of finished or semi-finished goods will be attached.
 Each component of attached BOM will be attached to relevant operation as per the point of consumption of
components. One component can be assigned to one operation only whereas more than one component can be
assigned to a single operation. These assignments will be done purely based on actual production process.
Standard values will be maintained for a certain base quantity of finish or semi-finish goods applicable for each
individual operation. The requirement of entering standard values to a particular operation will depend upon the
Standard Value Key maintained in the work center attached to that operation.
To maintain uniformity in data for BOM & Routing of finished or semi-finished goods, Base quantity of Routing
will be kept equal to that of BOM header. All the standard values (planned values for each activity) will be
maintained in relation to the base quantity.
In case of products following single-piece flow of manufacturing process, the functionality of „Milestone
confirmation‟ will be set in the Routing by providing this control to the last operation of Routing. Rest all
operations will be set for optional confirmation per operation. In this scenario, user can directly confirm the last
operation of a routing so as to consume all components of BOM, Activities & perform GR of finished or semi-
finished goods in one shot.
To cater the requirements of in-process inspection for certain operations of Routing, those operations will be set
with related quality parameters. Upon releasing of Production order, inspection lot will be created automatically
in order to perform result recordings, defects recordings, etc. for each operation related to in-process inspection.
Different revisions (group counter) of a routing can be managed by setting the validity period.
4.4.1 Control Key
Control Keys determine which business transactions should be executed for the object that belongs to
the task list or order.
Control Key Description
PP01 Routing/Ref. op. set - internal proc.
PP02 Routing/Ref. op. set - external proc.
Routing - in-house prod. Auto. goods receipt (Milestone

PP03
confirmation)
PP04 Routing - in-house prod. with check
ZP01 Control Key Without Auto GR
ZP02 Control Key With Auto GR
4.5 Production Version

A production version determines the various production techniques that can be used to produce a
material. It defines the following information:
 Alternative BOM for a BOM explosion

 Task list type, task list group, and group counter for assignment to task lists
 Lot-size restrictions and period of validity.
 A material can have one or more production versions.
When creating or changing a material master record, you can create individual production versions at plant
level for the following materials:
 Materials allowing in-house production
 Materials only procured externally
In this case, production versions can be useful if the materials are procured externally from a subcontractor
4.6 Production Execution

4.6.1 Planning with Final Assembly under Make to Stock (Strategy -40)
As discussed in the Planning Strategy section, strategy 40 (Planning with Final Assembly) is
applicable for all the finished or semi-finished goods which are produced and kept in stock for further
delivery to different customers. The production plan will be generated by MRP run based on PIR
under Demand Management functionality of SAP. In MTS, the process always starts from planning
irrespective of any firm sales order as opposed to MTO where the trigger point is always a sales order
that is firm & created within the SAP system.
The following figure shows an overall process flow under MTS scenario:
Sales & Operation Order Settlement

Planning (SOP) (Controlling)
Make-to-Stock
Demand Process Flow
Management Order Confirmation
(PIR)
Shop Floor Control

Requirements MRP Evaluation Material Staging (SFC)
Planning (MRP) (Post MRP work) (Pull List) Production Order
Figure: Make-to-Stock Process Flow
4.6.2 Demand Management

The function of Demand Management is to determine requirement quantities and delivery dates for finished products.
To create a demand program, Demand Management uses planned independent requirements for which the planning
strategy must be defined for a product in material master. Planning strategies represent the methods of production for
planning and manufacturing or procuring a product.
As mentioned earlier, production planning for NTPL plants for all materials having strategy 40 in their material master,
will be done under Demand management.
 The planning data, called “Planned Independent Requirement” (PIR) will be created in SAP by using a data
upload facility from Excel sheet to SAP because of high volume of data. To achieve this, a custom
development will be done in SAP with custom transaction code. The development will be done for both, create
& change the PIR data. Actual developmental requirements related to this functionality will be finalized during
realization phase of project.

 Customer plan, which is normally available as 1 month firm & 2 months rolling, or 1st fortnight firm & 2nd
fortnight tentative, will first be converted into a pre-defined format of Excel worksheet. The format of Excel
sheet will be designed in line with the above-mentioned development, where daily planned production data
per product will be fed for relevant plant for a fixed period. If required, the data set can also be fed on monthly
basis.
Therefore, the data used for creating PIR will be basically customer plan; and depending on the period split, i.e.
Daily, Weekly or Monthly, the production & procurement plan will also be generated upon MRP run using
same Demand management data. This period is called as Time Bucket in SAP and will be applicable as per
customer plan/ production plan for NTPL manufacturing plants.
PIR quantity for a particular time bucket is called Scheduling Lines. The scheduling lines can be changed for
quantity, postponed to different time bucket. For each scheduling line, a history of changes can also be
viewed. Once the PIR under Demand Management is finalized, the same is saved as an input to MRP.
 A list of all the PIR can be viewed for a particular finished good or for all the finished goods under one MRP
controller over a period of time.
 PIR for all the products of one plant will be created under a single „Requirement Plan‟, where multiple items
can be fed with their schedule & quantities.
 There can be different versions of a requirement plan, if required, in order to compare the plan. However,
MRP will be run only for „active‟ version, which is „Version 00‟.
4.6.3 Material Requirements Planning (MRP)

The main function of Material Requirements Planning (MRP) is to guarantee material availability, that is, it is used to
procure or produce the requirement quantities on time both for internal purposes and for sales and distribution. This
process involves the monitoring of stocks and, in particular, the automatic creation of procurement proposals for
purchasing and production.
In MTS scenario, MRP takes the input directly from demand management and NOT from sales order as opposed to
MTO.
The following diagram shows an overall process of MRP in SAP for MTS scenario:
Demand
Management
Planned
Independent
Requirements
(PIR)
For all manufacturing plants of NTPL, MRP for top-level MTS& MTO materials (normally final finished goods for which
PIR/ Sales order created in Demand management against customer plan) will be run in order to generate the following
requirements automatically from SAP system:
Planned orders for finished goods to be produced in-house

Planned orders for semi-finished goods to be produced in-house as a dependent requirement to the finished
goods or stock transfer requirements from other manufacturing plants of NTPL.
 Purchase requisitions for raw materials to be procured externally as a dependent requirement, provided these
materials are to be planned through MRP.
 Schedule lines for scheduling agreements as a dependent requirement
Net requirements are calculated during the planning run for every material subject to MRP planning. For this
calculation, the system checks whether the requirements are covered by the storage locations' stock and
planned receipts from purchasing or Production. If the requirements cannot be covered, the planned order is
created (for make-to-stock) and purchase requisitions for externally procured components. For externally
procured components, purchase requisitions are to be created for the preferred vendor.
During the planning run scheduling is carried for the planned order to calculate the start and finish dates for the
planned order (Production).
 For every procurement proposal of in-house production items, BOM is exploded and dependent requirements
are planned also. This way all the components are planned with the requirement date and also final assembly
with relevant start and end date. Purchase requisitions or delivery schedules are created for all the
components.
 During the planning run if critical situations are recognized these have to be assessed manually in the planning
result by the MRP Controller. The system creates exception messages and if necessary, checks rescheduling.
 For NTPL planning run will be always carried out at plant level. MRP list can be generated after each planning
run.
 The MRP process will assist and relieve MRP controllers in their area of responsibility. The MRP controller is
responsible for all activities related to specifying the type, quantity and time of the requirements, in addition to
calculating when and for what quantity an order proposal has to be created to cover these requirements. The
MRP controller needs all the information on stocks, stock reservations, and stocks on order to calculate
quantities, and also needs information on lead times and procurement times to calculate dates.
In NTPL group, the planning & flow of materials within various manufacturing plants is somewhat complex. For
example, a plant „A‟ is responsible to produce final finished goods to be delivered to a customer; and to produce this
part, certain child parts are required as per BOM structure. Out of total child parts, some may be transferred from
other plant „B‟ of NTPL, some may be procured directly from vendors, and some parts are produced in-house at the
same plant „A‟ as semi-finished goods. This may also be possible that the other plant „B‟, which is the source of supply
for certain parts to plant „A‟, is producing those parts and in turn plant „B‟ also gets the required child parts in a way
similar to plant „A‟.
In this scenario, it can be realized, that by maintaining a relation for „Receiver‟ and „Supplier‟ for child parts at
respective plants, it is possible to run MRP for top-level requirements i.e. finished goods at production plant and
subsequently generating requirements automatically for „supplying plants‟, Vendors and in-house production for semi-
finished goods in a chain manner. By achieving this, running MRP at individual plants will not be required.
This objective can be achieved by using the functionality of “Special Procurement Key” in SAP where there is a
single source for plant-to-plant stock transfer. In case of multiple sources for same component to be received at
certain plant, the functionality of “Quota Arrangement” will be used, where % share amongst each source is set into
the system and during MRP, the total requirement for components under quota is split into quantities as per quota.
MRP will be scheduled to run at a pre-defined time interval in background so as to avoid hampering system
performance. The planning run type will be for Net Change Planning which is applicable for planning horizon. During
MRP run, BOM is exploded accordingly to calculate the requirements for child parts. As a result of MRP, MRP list will
be created, planned orders for finished or semi-finished goods & purchase requisition / scheduling lines for raw
materials will be created automatically by the system.
During automatic creation of planned orders for finished goods and purchase requisition for raw materials, the
quantities are set by the system based on net requirement and the process is called Netting.
Net requirement quantity for PR = Actual requirement – (available stock + open purchase orders)
Net requirement quantity for planned orders = Actual requirement – (available stock + open planned orders)
The following MRP parameters will be configured for all NTPL plants as per MRP requirements:
MRP Controller – The MRP controller is responsible for all activities related to specifying the type, quantity, and
time of the requirements, in addition to calculating when and for what quantity an order proposal has to be created to
cover these requirements.
The MRP controller needs all the information on stocks, stock reservations, and stocks on order to calculate
quantities, and also needs information on lead times and procurement times to calculate dates. The MRP controller
defines a suitable MRP and lot-sizing procedure for each material to determine procurement proposals.
Every material that is relevant to the planning run must be assigned an MRP controller number in the
material master record.
Materials having similar planning requirements can be grouped together through MRP controller. In this way,
MRP controller helps in performing many a tasks collectively as well as generating various reports. MRP run
can also be executed for a particular MRP controller level for all the materials assigned to that MRP controller.
1. MRP Group – The MRP group is an organizational object that can be used to allocate special control
parameters for planning to a group of materials.
MRP groups can be maintained separately if planning control per plant is not precise enough for the MRP
requirements and we want to allocate certain material groups control parameters different from the plant
parameters. For this purpose, MRP groups are defined with these specific control parameters and are
assigned to the material in the material master record.
MRP controller is used to group certain materials having similar planning requirements, whereas MRP
group is used to allocate planning parameters to such group.
MRP groups can be created specific for material types, like for raw materials, finished goods etc., as well as
specific to an identified group of materials. In the absence of MRP group, the planning parameters are
controlled at Plant level.
MRP group is assigned to each material within the material master but it is not mandatory unlike MRP
controller.
For NTPLmanufacturing plants, MRP will probably be run based on MRP group. And hence to have grouping
of materials based on their planning parameters, it is possible to have MRP grouping like, all MTS materials to
be planned for one customer.
With this assumption, the following MRP groups will be created for finished or semi-finished goods for each
plant:
2. Planning Horizon – This is a period for which planning run will take place. Only those materials that have
undergone a change that is relevant to MRP within the planning horizon are included in the planning run.
Such materials receive a “net change planning” indicator in the planning file in SAP.
Plant Planning Horizon

1010 300
1020 300
1030 300
1040 300
1050 300
Planning horizon will be maintained at plant level or if required, for MRP group also.
Planning horizon will be maintained as 3 months for all the plants unless specific requirements arise in the
realization phase.
3. MRP run frequency – MRP run for NTPL plants will be carried out under Total Planning as a Background
job, either for MRP controllers or MRP groups.
 Total planning run will be for all the finished goods under Make-to-Stock strategy. The total planning run
for MTS scenario will be carried out as per the frequency decided during realization phase of project.
However for a basic start, it can be set for once a week initially.
 Secondly, the old PIRs have to be re-organized i.e. the old planned independent requirements, for which
production order is already created or production is already done or the PIRs are no more required, must
be deleted. Otherwise in the MRP run, system will again create the planned orders for the existing old
PIRs. The PIR is reduced or deleted from the system automatically based on FIFO for strategy „Planning
with final assembly‟ when a sales delivery (PGI) is done for specific finished goods. If the delivery of
finished goods is not fixed in timing and quantity, PIR re-organization has to be carried out manually
before any MRP run in the system.
Using the reorganization function, planned independent requirements can be deleted that are out of date
and for which there are no customer requirements. The histories of the independent requirements can
also be deleted from the database. The reorganization function is started online with the following three
steps:
a. Adjusting requirements
When adjusting requirements, the system checks whether customer requirements exist for active planned
independent requirements that lie before the key date and the quantity of customer requirements that are
assigned. The planned independent requirement quantities that are not assigned are set to zero and are
flagged for reorganization. In this step, the system can also be set so that it deletes all inactive planned
independent requirements.
b. Reorganization
The system checks which planned independent requirements were set to zero - either by reduction or
consumption or by "requirements adjustment". Requirements records that lie before the key date and that
have the quantity zero are deleted from the database.
c. Deleting histories
Once the system has completed the reorganization process, the histories can also be deleted for the
same period. The key date for deleting histories can differ from the key date of reorganization.
4. MRP type – For all finished and semi-finished materials, the MRP type will be PD. Raw materials to be
planned based on MRP will also be set as MRP type PD. In case some materials are not related to MRP
planning or their planning to be done other than MRP, like forecast based, consumption based, etc., the MRP
type will not be PD; it will be ND for „no planning‟ and VB (Reorder planning) or VV (forecast based) for other
types of planning as per applicability.
5. Lot Sizing Procedure – MRP determines how much stock is needed to satisfy demand in the net
requirements calculation. This shortage quantity must now be covered by one or more receipts. The system
calculates the receipt quantity in the lot size calculation.
With the lot-sizing procedure it is defined how the order quantities are determined. A lot size defining the
lot-sizing procedure is assigned to every material master record applicable to materials planning to calculate
the quantity to be procured or produced. The rounding profile may also be used to round order quantities
either up or down to deliverable quantities.
The lot-sizing procedure is defined in the material master under MRP view of applicable materials.
The lot sizing procedure for all the finished & semi-finished goods for NTPLplants will be “EX – Lot-for-
LotOrder Quantity”, unless specific requirements arise in the realization phase.

Lot-for-Lot sizing procedure is to calculate requirements quantities as per planned figures. However,
production of some parts may also be following the “minimum order quantity” criteria, which means that even
though the requirement for such parts are lesser, production will always take place for certain minimum order
at least. For such materials, it is required to maintain the “Minimum Lot Size” for those materials along with the
lot-sizing procedure.
During MRP run, if the requirement quantity falls below the minimum lot size, then system automatically
creates the requirement to the minimum lot size defined in the material master. If the quantity falls above
minimum lot size, then the requirement will be created by the system as per actual calculation.
6. Number Ranges – The following internal number ranges will be configured for NTPL plants related to MRP
& procurement proposal/ documents i.e. Planned Orders, Dependent Requirements, Purchase
Requisitions, MRP Lists, Total Requirements and Simulative Dependent Requirements .
Sl. No. Plant NR ID Number Range (Internal)

From To
1 Planned order 1000000000 1999999999
2 Confirmation 0000000001 9000000000
3 Reveservation 0000000001 8999999999
4
Note: The number range can change as per NTPL.
Evaluation of planning run must be done after the MRP run to check the material planning. This process involves
the monitoring of stocks and in particular, the automatic creation of planned orders for production and purchase
requisitions for the purchasing department.
The two most basic evaluation tools in SAP are:
1. MRP Lists
The system creates MRP lists during the planning run according to how the creation indicator is set during run time of
MRP. These lists contain the planning results for the materials undergone MRP run. The MRP list always displays the
stock/requirements situation at the time of the last planning run and it also provides a work basis for the MRP
controller. Changes that are made after the planning date are not taken into consideration, because the MRP list is
static in nature and is generated as on date & time of MRP run.
MRP lists are stored in the system until they are either deleted manually or replaced by new lists from a subsequent
planning run. MRP list can be viewed collectively for all the materials for a particular MRP controller also. Run time
errors too can be analyzed by viewing the MRP list after MRP run has been completed.
2. Stock/Requirements List
In the stock/requirements list, the most up-to-date stock and requirements situation is displayed for each material. The
stock/requirement list can be viewed collectively for a particular MRP controller.

Figure: Collective Display of Stock / Requirements List
The main difference between the MRP list and the stock/requirements list is that each time the stock/requirements list
is called up; the system selects the various MRP elements and displays the most up-to-date situation. We thus always
see the current availability situation of the material in the stock/requirements list. Changes that are made after the
planning date are displayed directly; the list is, therefore, dynamic in nature.
Stock/requirements lists are not saved in a fixed state in the system, but are subject to change and only exist in the
working memory.
Planned Orders
Planned Orders are proposals for production with start and finish dates of the production. Planned Orders also can be
created for materials which will be purchased, however, Planned Order creation for purchased components are not
recommended.
Planned Orders are created automatically during the planning run executed in the system; however, Planned Order
can also be created manually, if the planner decides to do so.
Planned orders are initially scheduled with the basic dates based upon the lead times set in the assembly master
(Material Master Record). Detailed Scheduling can be done for each planned order by selecting routing associated
with assembly.
Planned orders are directly linked to the demand management plan quantity and the dependent requirements
generated for the components below. Material availability check can be performed at this level (Plan) also.
Planned Orders may be firmed manually when the planner decides to freeze the plan. So that in the next planning run
these planned orders are not affected or changed by automatic or manual planning run.
For NTPL, planned orders will always be created automatically by MRP run for all those items subject to in-
house production. These planned orders will be first evaluated by the planner and then converted, either
individually or collectively, to Production orders.
4.6.4 Production Orders (Shop Floor Control – SFC)
Production orders are a fundamental part of Production Planning and Control (PP). PP is fully integrated in the
Logistics (LO) component and has, among others, interfaces to Sales and Distribution (SD), Materials Management
(MM) and Controlling (CO).
A production order defines which material is to be processed, at which location, at what time and how much work is
required. It also defines which resources are to be used and how the order costs are to be settled. Production orders
are thus used to control production within a company and also to control cost accounting.
As soon as a planned order or other request is generated from material requirements planning (MRP), the information
is passed on to planner. The same information is passed onto shop floor control upon conversion of the planned
orders to production orders; the order-relevant data is also added to ensure complete order processing.
Production orders in SAP can be generated in the following ways:

 From a requirement generated in MRP, that is, by converting planned order to production order, either
individually or collectively.
 Using a sales order.
 Without any previous requirement, that is, by creating it manually on-line.
For NTPL plants, the planned orders created by MRP run will be converted directly to production orders in a
collective manner using standard SAP transaction. The planned orders may also be converted partially to
various production orders. In some cases, production orders can also be created manually without any
planned order, for example, Rework orders.
Related to production order, the following activities/ steps will required to be performed before confirming the orders in
system. For each of the below-mentioned activities, system sets particular „Order Status‟ to the production order, for
example, CRTD for created, REL for released, etc.
1.Creation of production order

A planned order is converted to a production order, during the conversion the production order is
automatically scheduled and all the components related to the order are picked up from the BOM. The
planned order is no longer available. Now the direct link is between the production plan quantity and the
production order itself.
Automatic missing parts list (Material availability check) can be generated if there are any missing parts in
the production order.
Order costing can be calculated after the creation of the order.
2.Release of production order
The production order which is created in an earlier process is now available for release.
During the production order creation itself, the release can be done. This option is not set for automatic
release for the company. The person responsible will release the order during the order creation or after
the order creation on a later date based upon the situation at that point of time in the plant.
Release of production order can be individual or collective.
No availability checking of the parts will be at the time of order release.
Production orders can be released if there are any missing parts.
After release of production order only, further processes: Goods Issue, Confirmations, Goods Receipt are
possible.
Order costing is done at any given point of time for this process. Planned Cost and Actual Cost can be
seen.
Printing of shop-floor documents will be done. Printing can be done any number of times as per the
requirements.
3.Goods Issue for Production order

The production orders which are released to the shopfloor are now available for goods issue.

Goods Issue can be done with reference to the production order. The system will provide a list of material
to be issued for the stores person.
Unplanned goods issue is also possible.
Goods which are issued in excess or wrongly issued can be reversed with reference to the production
order in order to have a correct costing for the order.
Back flushing can be used for automatic posting of the Goods Issue (Recommended for Make to Stock)
Decision regarding whether to use Automatic posting of Goods Issue (Back flushing) or Manual Goods
Issue against a Production order shall be taken at the time of Master data creation.
4.Order Confirmation (Finished or Semi Finished)
 Order confirmation will be done for the following action.
 Quantity in an operation that was produced as yield and scrap.
 Labour and machine times which were actually used (activity confirmation).
 Exact confirmation shortly after completion of an operation is essential for realistic production
planning and control.
 A confirmation can be partial or final for an operation in the order.
 Confirmation document is generated and can be seen. To change the confirmation one must first
cancel the initial confirmation and then confirm again for the same operation. One can do multiple
confirmations till the indicator is set for final confirmation.
 Unplanned goods issue is also possible.
 Automatic Goods Receipt (Finished or Semi Finished) will be made available for the required last
operation in the order based upon the business unit requirements. For this scenario goods will be
maintained as unrestricted / QM stock in storage locations, deliveries can be made to any customer from
the stock after QM approvals.
5.Goods Receipt against Production order (Finished or Semi Finished)
 The automatic Goods receipt will be used for the production orders.
 After the final confirmation of the operations, the quantity entered will automatically transfer to QA as
a lot or unrestricted stock.
 Goods Receipt can also be done manually.
 Goods Receipt will always be done against a production order if done manually. The Goods are
transferred to QA or unrestricted stock.
 The production order will be updated with the goods receipt status.

6.Technical Completion of Production order (TECO)

 Technical completion means ending a production order from a logistical viewpoint.
This function will be used in The Company, if the execution of an order has to be stopped prematurely or
if the order could not be executed in the required manner, then open requirements for the order
(reservations, capacities) should be deleted.
 The following actions are executed if an order is set to technically complete.
 The order will not be relevant for MRP planning.
 Reservations will be deleted.
 Capacity requirements will be deleted.
 Purchase requisitions for external operations or non-stock materials will be deleted.
 For the order and its operations system status set to Technically Completed (TECO)
7.Production order Settlement

When a production order is settled, the actual costs incurred for the order are settled to one or more
receiver cost-objects (for example, to the account for the material produced or to a production order).
Offsetting entries are generated automatically to credit the production order.
The settlement receiver determines to which cost object the actual costs of the production order are to be
settled
Creation of PIR/ Sales orders of

cutomer
Creation of Purchase
MRP Run
requisition for purchasing
Creation of Planned orders Convert PR to PO
PO send to Vendor
Convert planned order into
Production order
Release of production order
Confirmation of Production order
Goods movement ( Goods issue

& Goods Receipts)
Technically completion of
production orders
Order Settlements

4.6.5 Process Flow – Make to Stock

» Figure: Overall Process Flow – MTS

4.6.6 Rework Order Processing
It is sometimes necessary during or at end of a production process to execute additional operations in order to
improve components or products with insufficient quality. These additional processing steps are referred to as rework.
Rework costs can be assigned to the production order in which the rework has occurred, or cost center of the work
center in which the rework has occurred, or even to the parent order.
For NTPL, the rework requirements arise in three cases:

 Production has created for rework related parts, after doing GR handing over to Quality people.
 Production has completed, but during sample inspection of GR materials, Quality found some parts non-
confirming to quality requirements. In that case a specific lot is handed over back to production for
segregation and rework.
 When Finished goods / Semi finished Assembly has made and stock has been updated. Now getting some
Assembly rejected due to some parts are faulty. In that case NTPL required rework order for dismantle of the
same assemblies.
In all the cases, production will be creating a separate rework order (order type ZPRW) without material, with
a reference Routing but without any BOM.
 The rework quantity will be the quantity that has being reworked. The operation view will show the operation which
is to be carried out for rework, this operation will be assigned through the reference operation set route and the
work center where the rework is to be carried. The work center can be changed if required.
 Once the rework operation has being filled, the assignment screen will appear where one has to assign the
production order in which originally the rework has occurred or if the cost of rework is to be posted to the cost
center then the cost center will have to be specified.
 The various times taken for the rework will have to be keyed in the rework order.
 After the rework order has being created, confirmation of the rework order will have to be carried out. For
confirmation of rework orders, no material movements will take place, neither GR nor GI; only in-process costs will
be captured through activities incurred during rework process.
 If required, a separate work center for rework of type labour may be created to process the rework orders.
1 Order Types
Order types are primarily used to group orders according to application components. For NTPL, there will be
three „Order Types‟ created in SAP:
Order Category Order Type (Max 4 char) Description (Max 40 char)

10 ZBD1 B Draw Frame
10 ZCCC Cross Cutting
10 ZCD1 Carding
10 ZCLC Length Cutting
10 ZCLM Length Hammping
10 ZCM1 Comber
10 ZCPK CSP Packing
10 ZCSH Sharing
10 ZDY1 Dyeing
10 ZFN1 Finisher
10 ZLK1 Link winding
10 ZLM1 Weaving
10 ZLP1 Lap Former
10 ZMX1 Mixing
10 ZOP1 Open end
10 ZPFN Finishing
10 ZPK1 Packing
10 ZPW1 Parallel Winding
10 ZRF1 Ring Frame
10 ZRW1 Rewounding
10 ZSF1 Speed Frame
10 ZSR1 Grey Sharing
10 ZSZ1 Sizing
10 ZTF1 TFO
10 ZWR1 Warping
10 ZYD1 Yarn Dying
10 ZYPK Yarn Dyeing Packing
2 Production Scheduling Profile

Production Scheduling Profile is basically used to:
 Specify that certain business transactions are carried out in parallel in a production order. We can, for
example, create and release an order at the same time, or release an order and print the shop papers
 Make various specifications in the area of batch management
 Specify confirmation related settings
 Make Availability checks for capacity, materials etc.
 Trigger an automatic goods receipt
 Specify an overall profile for capacity levelling
The production scheduling profile is copied into the production order during order creation.
A production scheduling profile can be assigned to the finished or semi-finished materials (for in-house
production) or to a Production scheduler (Production scheduler is attached to a production scheduling profile).
The assignment to a material has a higher priority.
For NTPL manufacturing plants, the scheduling profiles will be created at plant level and possibly per order
type. The exact requirements can be addressed during realization phase only.
Plant Prd. Schdl. Profile Description

(6 Char. Max.) (40 Char. Max.)
1010 MX1 Mixing- Spinning
1010 CD1 Carding- Spinning
1010 BD1 B Draw Frame- Spinning
1010 LP1 Lap Former- Spinning
1010 CM1 Comber- Spinning
1010 FN1 Finisher- Spinning
1010 SF1 Speed Frame- Spinning
1010 OP1 Open end- Spinning
1010 RF1 Ring Frame- Spinning
1010 LK1 Link winding- Spinning
1010 PW1 Parallel Winding- Spinning
1010 TF1 TFO- Spinning
1010 PK1 Packing- Spinning
1020 YD1 Yarn Dying-Yarn Dyeing
1020 YPK Yarn Dying Packing-Yarn Dyeing

1030 WR1 Warping-Weaving
1030 SZ1 Sizing-Weaving
1030 LM1 Weaving-Weaving
1030 SR1 Grey Sharing-Weaving
1030 RW1 Rewounding-Weaving
1040 DY1 Dyeing-Processing
1040 PFN Finishing-Processing
1050 CSH Embroidry-CSP
1050 CLC Length Cutting-CSP
1050 CLM Length Hammping-CSP
1050 CCC Cross Cutting-CSP
1050 CPK Packing-CSP
3 Production Scheduler
The Production Scheduler uses extensive automation to enable or simplify the definition, scheduling,
execution and control of periodically recurring tasks for the plants. A company can have different Production
Scheduler for different shops in each plant where production activities are carried out.
As explained earlier also, for NTPL manufacturing plants, possibly two production schedulers per scheduling
profile per plant will be created; one for MTS profile &one for MTO profile. However, plant specific schedulers
may also be created, if requirements arise during realization phase.
Plant Prd. Schdlr. (3 Char. Max.) Description (40 Char. Max.) Prd. Schdl. Profile
1010 MX1 Mixing- Spinning MX1

1010 CD1 Carding- Spinning CD1
1010 BD1 B Draw Frame- Spinning BD1
1010 LP1 Lap Former- Spinning LP1
1010 CM1 Comber- Spinning CM1
1010 FN1 Finisher- Spinning FN1
1010 SF1 Speed Frame- Spinning SF1
1010 OP1 Open end- Spinning OP1
1010 RF1 Ring Frame- Spinning RF1
1010 LK1 Link winding- Spinning LK1
1010 PW1 Parallel Winding- Spinning PW1
1010 TF1 TFO- Spinning TF1
1010 PK1 Packing- Spinning PK1
1020 YD1 Yarn Dying-Yarn Dyeing YD1
1020 YPK Yarn Dying Packing-Yarn Dyeing YPK
1030 WR1 Warping-Weaving WR1
1030 SZ1 Sizing-Weaving SZ1
1030 LM1 Weaving-Weaving LM1
1030 SR1 Grey Sharing-Weaving SR1
1030 RW1 Rewounding-Weaving RW1
1040 DY1 Dyeing-Processing DY1
1040 PFN Finishing-Processing PFN
1050 CSH Sharing-CSP CSH
1050 CLC Length Cutting-CSP CLC
1050 CLM Length Hammping-CSP CLM
1050 CCC Cross Cutting-CSP CCC
1050 CPK Packing-CSP CPK

5 Business Processes
5.1 Product Development (PD)
5.2 Production Planning and Control Process (Yarn PPC)
5.3 Production Planning and Control Process (Towel PPC)
5.4 Raw Cotton Issue Process and Control (SPINNING)
5.5 Spinning Production Process (SPINNING and Yarn Dyeing)
5.6 Weaving Production Process (Weaving)
5.7 Processing Production Process (Dyeing House)
5.8 CSP Production Process (CSP)
5.9 Security Requirements / User Management
The final matrix will be prepared at the time of final preparation phase.
5.10 Organizational Changes

Not Applicable
5.11 RICEFW
5.11.1 Reports
Below is the list of critical SAP standard reports which can be used in day to day business. Also the formats given by
NTPL for custom reports are attached herewith.
Sl. No. SAP Transaction/ Report Name Key Parameters

1 CS11 - Material BOM Level By Level Assembly/Material
Plant
Alternative
Quantity
BOM Level
2 CR60 - Work Centre Information System Plant
Work Centre
Capacity Category
Fields related to work centre (Ex.
Standard Values)
3 CR06 - Cost Centre Assignment for Work Centre Plant
Work Centre
Cost Centre
Activity Types
4 CA80 - Work Centre Where used List Plant
Work Centre

Sl. No. SAP Transaction/ Report Name Key Parameters
Material
Task list Number
Operations
Control Key
5 CA51 - Task List Print List Details regarding routings maintained.
Plant
Material
Routing number
Standard value details
6 MD73 - Demand Management – Display Total Requirements Material
Version Number
Plant
Quantity
UOM
7 MD79 - Demand Management – MS Excel Interface Material
(Report directly Created in Excel Spread Sheet) Version Number
Plant
Quantity
UOM
8 CO24 - Missing Parts Info System Order
Reservation Number
Production Order number
Sales Order
Material
MRP Element (OrderNumbers)
Requirement Quantity
Committed Quantity
9 COOIS - Order Information System - Order Number
Production orders by MRP Controller Material
Scheduled Finish Date
Order Quantity
Goods Movement against Production Orders Material
Quantity
Confirmations Material
Operation Confirmations
12 Customer Oriented Report – Demand Vs Actual Need To develop
13 Customer Schedule Adherence Need To develop
14 Highlight the models for below three days inventory. Need To develop
15 Individual machine wise OE report needs to see through Need To develop
SAP system. (Common Report )
5.11.2 Interfaces
 Create reservation Screen of cotton bale issue ( No of Bale and Mixing Line ) to spinning lay down
 Machine wise Production book Confirmation Screen
 Detention booking at every machine wise and reason wise
5.11.3 Conversions
 BOM (Bill of Material)

 Work centre
 Routing
 Production Version
5.11.4 Enhancements
 Set Logic of Propose auto Batch , Speed , Count , during Confirmation
 Set Validation for Back Date Production Confirmation
Set Validation for Spinning (Good Issue = Good Receipt + By Product ) during Confirmation.
5.11.5 Smart Forms

 Create Printout of Issued Cotton Bale with Quality Parameter and Station
 Create bar Code Sticker Printout for Yarn Packages
 Create Yarn Requirement for Weaving (Pile, Ground and Weft Yarn ) Against Sale order
 Create Size Chemical Requirement for Weaving Against Sale order
 Create Bar code Sticker for Warp / Size Beam Set
 Create Bar Code Sticker for Doff Cut/ Doff Storage with Bin
 Create Printout Batch Card ( Issue Doff to Process House )
 Create Rope Plan ( create combined order for Combined Multiple Production order material to be
produce)
 Create Rope Card for Material Tracking in Process House
 Create Handover and Tackover document for CSP
 Create Size Chemical Requirement for Weaving Against Sale order
 Create Job Card at CSP House For Length Cutting process
 Create bar Code Sticker Printout for CSP Packages
 Create Printout Product Development for Specs Sheet
 Create Printout Sale order reconciliation
 Create Lap Dip Report for Processing House
5.11.6 Workflows
 Need to Create Workflow for Dyes Reservation approval Process for HOD – MD Level
 Need to Create Workflow for Extra Fabric Issue Against Sale order approval Process HOD – MD Level
 Need to Create Workflow for Change Yarn Requirement Against PPC Yarn (Based on Sort master)

6 Glossary
Standard Master Transaction in SAP PP
Term Explanation
MM01/02/03 Create , Change, Display Material Master
CS01/02/03 Create , Change , Display Bill of Material
CA01/02/03 Create ,chnage ,Display Rounting
CA01/CA02 Create/Maintain Rate Routing
CR01/02/03 Create/Change/Delete/Display Work Center
PRODUCTION PLANNING
MD61/ 62/63 Create/Change/Display Planned Independent Requirements
MD41/42 MPS - Single-Item, Single-Level/Multi-Level
MD02/03 Execute MRP
MD50 Multi-level, make-to-order planning
PRODUCTION EXECUTION
CO01/02/03 Production Order Create/Change/Display w/ Material
CO04 Re-Print Shop Papers / Production Order
CO05 Release Multiple Production Orders
MB1B Create/Display/Print/Confirm/Cancel Material Transfer order, Plant to Plant
COGI Goods issue w.error
MB1B Material Transfer, Place in Storage
MB31 Create or Copy Gds Receipt fr Prod. Order or Return
MB1A Production Order Component Issue
CO11N Daliy Production Entry (Producation Confirmation)
CO13 CANCEL Production Confirmation

Standard Reports available in SAP PP
Term Explanation
COOIS Order Information Report( It is a major information Report in PP Module

which Has different overview Screens like confirmation,Componenet,Order
Header which gives different informations according to their overviews,
MD04 Dynamic Situation of Material
MM60 List of Materials
CA60 Changes in Task List,Rest Changes can be tracked through respective

transaction or technically we have to develop a report.
CS80 Changes in BOM list
ME5A Purchase requisition list
MMBE Stock overview
MB5B Stock as on posting date
MB52 Display ware house Stock of material
MB51 Material document (for production/consumption/stock transfer reports)
Rest Details is attached as object list in which all the standard reports for PP module is available.

NTPL BBP PP v1 Overview

Uploaded by

Copyright:

Available Formats

NTPL BBP PP v1 Overview

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

NTPL BBP PP v1 Overview

Uploaded by

Copyright:

Available Formats

Production Planning and Control

Production Execution Process

For the Project

Mawai Infotech Ltd Confidential page 1/43

AUTHORS & PARTICIPANTS

REVIEWED AND APPROVED BY

Proj. Manager – NTPL

Proj Manager – Mawai

Business process owner

Mawai Infotech Ltd Confidential page 2/43

Mawai Infotech Ltd Confidential page 4/43

1.1 Basic Documents

1.2 Business Scope

1.4 Planned Independent Requirement

1.5 Material Requirements Planning

1.6 Production Orders

1.7 Order Confirmation

1.8 Stock Transfers

1.9 Integration Considerations

Mawai Infotech Ltd Confidential page 6/43

 Production plan Vs Achievement report.

 Smoothly MRP Run.

 Material availability and Capacity monitor through system.

 System calculate the machine wise accurate overall effeciency (OE).

 All materials should be issued from the store based on FIFO..

 Wastage quantity should be consider in SAP.

3.1 Overview of PP Organizational Units

Note*: Company code has been defined under FI module

A plant is an organizational unit within SAP, serving to subdivide an enterprise according to

Mawai Infotech Ltd Confidential page 7/43

Plant-1010 Plant-1020 Plant-1030 Plant-1040 Plant 1050

MRP Capacity Person Work

3.1.1 Naming Convention

3.1.2 Assignment of SAP Organizational Units

3.1.3 COMPANY CODE:

A company code has the following attributes:

Mawai Infotech Ltd Confidential page 8/43

3.2 Organizational Unit: plant

3.2.1 Requirements & Expectations

3.2.2 Global Design Decisions

3.2.3 Naming Convention

3.2.4 Assignment of SAP Organizational Units

3.2.5 Configuration Considerations

Plant Name1 Name 2 Country Language Factory Address

Mawai Infotech Ltd Confidential page 10/43

Data in Material Master Record will be of the following two categories

 MRP Views – for Finish, Semi Finish and Raw Materials.

MRP Views – Key Fields

Mawai Infotech Ltd Confidential page 11/43

4.1.2 MRP Group

MTS Make to Stock

4.1.3 Re-order Point

4.1.4 MRP Type

 Manual Re-order Point Planning

4.1.5 MRP Controller

MRP Controller Description

Mawai Infotech Ltd Confidential page 12/43

Lot Size Description

EX Lot-for-lot order quantity