Production
General Overview
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SAP Overview
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SAP Business Processes - Production
PP – Production Planning
Sales and Operations Planning
Demand Management
Master Production Schedule
Material Requirements Planning
Planned Orders
Production Orders and Purchase Requisitions
MM – Materials Management
Purchasing
Goods Receipt
Invoice Verification
FI – Financial
Payment Processing
Inventory Valuation
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Business Processes
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Organizational Levels
Client - Unit with its own data, master records and own
set of tables
Company – Independent accounting unit within a client
Plant – Organizational logistics unit
Storage Location – Separates material stocks within
a plant
Purchasing Organization – A legal procurement
entity
Purchasing Group – A buyer or group of buyers
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SAP IDES Organizational Structure
Client
801
1000 2000 3000
Germany Great Britian United States
1300 1000
Frankfurt Hamburg
0001 0002 0003
Material Finished Goods Goods Receipt
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SAP Stored Data
Data Dictionary
Meta Data
Data on the structure of User Tables
User Data
Master Data
Data that does not change much
Examples include Vendors, Customers, Material
Transaction Data
Data that pertains to events and actions
Examples include Purchase Orders, Invoices, Production
Orders
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Manufacturing Master Data
Material Master
Contains data on every item bought, sold, built, used in the business.
Heart of the SAP system
Bill of Material (BOM)
Hierarchical structure of components to build a product
Work Center
A physical place or group were work activity takes place
Routing
The path taken through various work centers in the assembly of a
component or product
Cost Center
A logical area of cost behavior for labor, setup and machine time
associated with activity that can be assigned to work centers.
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Material Master Data
The material master is the heart of the SAP system.
Any item maintained (bought, sold, produced, stored)
must be in the material master.
Material Master Consists of data such as:
Material ID, Material Description, Unit of Measure,
Weight, Standard Cost, Average Cost, Production Time,
Lead Time, Material Type, Inventory Level, Planning Type
Material Master has many views that can be updated by
various areas depending on their use of the data.
Production
Purchasing
Accounting
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Material Master Views
Basic Data Purchasing
Material Resource Planning Sales
Stocks in Inventory Work Scheduling
Accounting Quality Management
Storage Forecasting
Warehouse Management Classification
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Material Master Data
Purchasing data for ordering
Inventory management data for posting goods
movement and managing inventory
Accounting data for material valuation
MRP data for Material Requirements Planning
Data is used by many areas of the business
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Material Master Basic 1 Data View
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Material Master Purchasing View
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Material Master Accounting View
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Material Master Storage Location View
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Material Master Plant Stock View
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Material Master Plant Data Store View
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Material Master MRP 1 View
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Material Master MRP 2 View
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Material Master Org Levels
Data valid for the entire company
Material No, Desc, units of measure
Data valid for a plant
Purchasing, MRP, forecasting, work scheduling
Data valid for a storage Location
Storage Bin configuration and types
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Some Different Material Types in SAP
Raw Materials
Operating Supplies
Semi-finished Goods
Finished Goods
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The Material Type controls the following:
Whether the material is intended for a specific purpose, for example,
as a configurable material or process material
Whether the material number can be assigned internally or
externally
The number range from which the material number is taken
Which screens appear and in what sequence
Which departmental data you may enter
What procurement type the material has; that is, whether it is
manufactured in-house or procured externally, or both
Which accounts are posted when posted to stock or leaves
inventory
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The Industry Sector controls the following:
Mechanical Engineering
Plant Engineering
Chemical Industry
Controls which screens and in which order
Controls display of industry-specific fields
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Bill of Material
Structured list of components that make up a product or assembly
Single Level
A BOM in SAP can consist of multiple Single Level BOMs
Header
Item Item
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The BOM is used in:
MRP
Explodes the product demand to its lower level assemblies and
purchased components
Work Scheduling
Exploded demand is used to determine production schedules
Procurement
Exploded demand can drive purchase requisitions and lines
items for blanket purchase orders.
Product Costing
Exploded relationships can be used to roll up costs of lower
level assemblies and components
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Sample of BOM using Wagon Parts
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SAP Create BOM Level I - Wagon
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SAP Create BOM Level II – Axle Assembly
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BOM – Graphical View
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