Handbook for SAP PP in S/4HANA : Production Planning and Execution in SAP S/4HANA

If you're looking to increase your knowledge of one of the core modules of SAP S/4HANA, this is the book for you. Settle in and let a long-time SAP professional guide you through the SAP Production Planning and Execution module. Author Himanshu Goel begins by explaining the nuts and bolts of production planning in SAP S/4HANA, before delving into various manufacturing methodologies such as discrete manufacturing, repetitive manufacturing, and process industry. He'll then walk you through setting up master data such as the material master, bill of material, work center, routing, and production version. You'll then learn, step-by-step, how SAP PP processes are established from production order-based manufacturing to process order-based manufacturing. This book explains the complex concepts of production planning and execution in a straightforward manner and makes for an invaluable guide for SAP PP users from production planners to shop floor managers and even junior/mid-level SAP PP consultants. After reading this book, you'll fully understand the concepts of SAP PP, and have insight into the latest developments in S/4HANA. What You Will Learn Understand master data in SAP PP Study production planning; i.e., SOP and demand management Explore discrete and repetitive manufacturing Acquire knowledge on Process Industry Who Is This Book For Production planners, shop floor managers, and junior or mid-level SAP PP consultants who are looking to understand the concepts of SAP PP in SAP S/4HANA. Table of Contents 5 About the Author 13 Acknowledgments 14 Chapter 1: Introduction 15 What Is SAP? 15 Introduction to ERP 16 The History of SAP 17 Introduction to SAP Production Planning 18 Manufacturing Industry Types 21 Discrete Manufacturing 21 Process Manufacturing 21 Business Case 25 Summary 27 Chapter 2: Master Data in SAP PP 28 Master Data 28 Material Master 30 Material Number 32 Industry Sector 32 Material Types 32 Material Description 34 MRP1 View 39 MRP2 View 46 MRP3 View 50 MRP4 View 53 Work Scheduling View 55 Bill of Materials 58 Work Center 66 Basic Data View 69 Default Values View 71 Capacities 74 Scheduling 81 Costing 83 Routing 86 Production Version 96 Production Version Migration for BOM 100 Summary 101 Chapter 3: Sales and Operations Planning 102 What Is Sales and Operations Planning (S&OP)? 102 Standard SOP 104 Product Group 105 Create a Product Group 106 Create a Plan for the Product Group 110 Create a Production Plan Automatically 111 Transfer to Demand Management 117 Sales Plan for Material of PG Members 117 Planned Independent Requirements in Demand Management 120 Summary 121 Chapter 4: Demand Management 122 What Is Demand Management? 122 Planned Independent Requirements 122 Customer Requirements 128 Planning Strategies 129 Key Planning Strategies 129 Make-to-Stock Strategies 130 Strategy 10, Make-to-Stock 130 Strategy 11, Make-to-Stock 135 Strategy 40, Planning with Final Assembly 138 Make-to-Order Strategies 142 Strategy 20, Make-to-Order 142 Strategy 50, Planning without Final Assembly 145 Summary 145 Chapter 5: Material Requirements Planning 146 What Is Material Requirements Planning? 146 Planning Time Fence 148 Materials Requirements Planning 149 Steps in the MRP Run 149 Check Planning File Entry 150 Automatically Creating a Planning File Entry 152 Net Requirement Calculation 155 Material Requirements Planning (MRP) 156 Master Production Scheduling (MPS) 157 Consumption-Based Planning 157 Reorder-Point Planning 158 Forecast-Based Planning 158 Time-Phased Planning 158 Lot Size Calculation 159 Procurement Type 161 Scheduling 163 BOM Explosion 163 MRP Procedures 164 Master Production Scheduling 164 Planning Time Fence 165 Consumption-Based Planning 166 Reorder Point Planning 166 Forecast-Based Planning 168 Time-Phased Planning 170 How Do You Run MRP? 171 Total Planning Run 172 Single Item, Multi-Level MRP Run 174 Single Item, Single-Level MRP Run 175 MRP Control Parameters 176 Processing Key 177 MRP Live 183 Running MRP Live 188 Summary 189 Chapter 6: Procurement Proposals 190 Planned Orders 190 Header View 195 Assignment View 196 Master Data View 198 Schedule Planned Order 199 Material Availability Check 200 Convert a Planned Order to a Production Order 205 Convert in Stock Requirement List 205 Individual Conversion 209 Collective Conversion 209 Summary 212 Chapter 7: Capacity Requirement Planning 213 What Is Capacity Requirement Planning? 213 Availability Capacity 214 Capacity Requirements 219 Capacity Evaluation 221 CM01 - Load 221 Standard Overview 223 CM04 - Evaluate Backlog 226 CM05 - Evaluate Overload 229 Capacity Leveling 230 Summary 237 Chapter 8: Discrete Manufacturing 238 What Is Discrete Manufacturing? 238 Production Orders 239 Create a Production Order Manually 239 Convert a Planned Order to a Production Order 240 Change/Display Production Order 246 General View 249 Assignment View 254 Goods Receipt View 255 Control View 257 Dates/Quantities View 258 Master Data View 259 Operations Overview 261 Components Overview 262 Material Availability Check 263 Capacity Availability Check 265 Order Costing 265 Settlement Rule 265 Order Release 267 Goods Issue to a Production Order 267 Confirmation 269 Operation Confirmation 269 Order Confirmation 275 Display Confirmation 277 Cancel Confirmation 278 Goods Receipt for Production Order 278 Status Management 280 System Status 280 User Status 280 Technical Completion of a Production Order 281 Close a Production Order 281 Co-Products and By-Products 282 Automatic Goods Movement at Order Confirmation 289 Rework Order 292 Scrap 292 Summary 293 Chapter 9: Repetitive Manufacturing 294 What Is Repetitive Manufacturing? 294 Repetitive Manufacturing with Make-to-Stock 294 Repetitive Manufacturing with Make-to-Order 295 Master Data for Repetitive Manufacturing 295 Material Master 296 Bill of Materials 297 Rate Routing 297 Production Version 299 Product Cost Collector 301 Standard Cost Estimate 304 Planning Table 308 Create a Planned Order Using the Planning Table 311 Convert Quantities to Production/Process Orders 312 Move Quantities Along the Time Axis 312 Pull List 314 REM Confirmation 316 Reporting Point Backflush 318 Scrap in Repetitive Manufacturing 320 Post-Processing of Error Records 320 Summary 322 Chapter 10: Process Order Management 323 What Is Process Order Management? 323 Master Data for the Process Industry 324 Material Masters 324 Bill of Materials 326 Resources 327 Production Version 328 Master Recipes 329 Master Recipe Header 331 Operations and Phases in a Master Recipe 332 Bill of Materials in Master Recipes 334 Material Quantity Calculations 335 Process Management 338 Control Recipes 338 Control Recipe Destinations 339 Process Instructions 340 Manufacturing Execution with Process Order Management 343 Create Process Order 343 Control Recipe Monitor 346 Maintain PI-Sheets 349 Send Process Messages 352 Summary 354 Chapter 11: PP/DS in S/4HANA 355 What Is Production Planning and Detailed Scheduling? 355 Master Data for PP/DS 356 Locations 356 Material Master 358 Advanced Planning View 358 Procurement/PP-DS 359 Demand 363 Lot Size 366 Goods Receipt/Goods Issue 367 Location-Dependent Shelf Life 368 Product Master in APO 369 Work Center/Resource 371 Production Data Structure 374 Planning Run with MRP Live 376 Production Planning Run 376 Product View in PP/DS 379 Convert Planned Orders 382 Detailed Scheduling Board 383 PP/DS Optimizer 387 Fiori Application for Production Scheduling Board 388 Resource Planning Table 389 Alert Monitor 390 Plan Monitor 390 Summary 390 Chapter 12: Demand-Driven Material Requirements Planning (DDMRP) 391 What Is Demand-Driven Material Requirements Planning (DDMRP)? 391 Why Is DDMRP Needed? 392 Components of Demand-Driven Material Requirement Planning 392 Calculation of Buffer Zones 394 DDMRP in SAP 397 Setup in the Material Master 397 Schedule Product Classification (DD) 399 Mass Maintenance of Products (DD) 401 Schedule Lead Time Classification of Products (DD) 402 Schedule Buffer Proposal Calculation 404 Manage Buffer Levels 406 Replenishment Execution by On-Hand Status 408 Replenishment Planning by Planning Priority 410 Summary 411 Chapter 13: Predictive MRP 412 What Is Predictive MRP? 412 Prerequisites for pMRP 413 Create the Planned Independent Requirements 414 Schedule pMRP Simulation Creation 414 Define Flexible Constraints 420 Process pMRP Simulations 422 Summary 432 Chapter 14: Reporting and Analytics 433 Materials List 433 Report for Bill of Materials 435 Explode: Level-by-Level BOM 435 Explode Multilevel BOM 437 Where-Used List: Material 440 Multiple Material Where-Used List 441 Report for Work Center 443 Work Center List 443 Cost Center Assignment 445 Stock/Requirements List 446 MRP List 451 The Order Information System 451 Order Headers 452 Components 453 Operations 453 Confirmations 454 Documented Goods Movements 454 Fiori Apps 454 Monitor Material Coverage (F0247) 455 Manage Material Coverage (F0251) 456 Monitor External Requirements (F0246) 456 Manage External Requirements (F0250) 457 Monitor Internal Requirements (F0263) 458 Manage Internal Requirements (F0270) 459 Monitor Production Orders or Process Orders (F0266A) 460 Manage Production Orders or Process Orders (F0273) 460 Display MRP Master Data Issues (S23OP) 461 Capacity Scheduling Table (S21OP) 462 Explode Bills of Material (S23OP) 463 Monitor Capacity Utilization (S21OP) 464 Summary 464 Index 465