Production Planning and Control with SAP

Dr. Joerg Thomas Dickersbach works as a Solution Architect for supply chain management at SAP AG. His work focuses on project reviews, critical implementation projects, and workshops on specific SCM-related subjects. Since 1998, Joerg Thomas Dickersbach has been engaged in modeling and implementing logistical processes in the industries of discrete manufacturing, high technology, consumer goods, chemicals, and pharmaceuticals using SAP programs. He worked as a consultant for five years at SAP Deutschland AG & Co. KG and IMG AG. Having been awarded a doctor's degree by Prof. Dr. August-Wilhelm Scheer, Dr. Dipl.-Kfm. Dipl.-Ing. Gerhard Keller was responsible for method development and the structuring of reference processes for the mySAP ERP system (formerly R/3 system) at SAP AG. Gerhard Keller is a shareholder and partner of Bonpago GmbH, Germany (www.bonpago.de), where he is responsible for value-based consulting and advanced evelopment of concepts and new approaches in the areas of strategy, processes, and IT for industrial enterprises and financial service providers. In addion to that, he is an associate lecturer for process management and architectures in the information management section of the Central European Master of Business Administration (CeMBA) program at the European School of Management (ESCP-EAP). Klaus Weihrauch joined SAP in 1990 where his work focuses on the production planning and control solution (PP). Among other things, Klaus created the data and process model for the R/3 component, PP, and was responsible for the production planning area in the context of AcceleratedSAP. Klaus Weihrauch currently manages projects in the area of best practices for mySAP SCM in which preconfigured solutions for supply chain management are created.

1. Introduction ... 15
... 1.1 Goal ... 15
... 1.2 Target Audience ... 16
... 1.3 Structure and Content ... 16
... 1.4 Restrictions ... 17

2. Tasks in Industrial Operations ... 19
... 2.1 Technical Tasks ... 19
... 2.2 Business Tasks ... 34
... 2.3 The Production Area in Industrial Operations ... 44
... 2.4 Characteristics of Production Type Creation ... 51

3. Production Planning and Control in mySAP ERP ... 57
... 3.1 SAP PP in the Context of mySAP ERP ... 57
... 3.2 Processes in Production Planning and Control ... 60
... 3.3 Production Types ... 62

4. Organizational Structures ... 77
... 4.1 Meaning of Organizational Structures ... 77
... 4.2 Organizational Structure Overview in mySAP ERP ... 79
... 4.3 Planners in Design and Work Scheduling ... 84
... 4.4 MRP Controller, Capacity Planner, and Production Scheduler ... 85

5. Master Data ... 89
... 5.1 Master Data Overview ... 89
... 5.2 Material ... 90
... 5.3 BOM ... 97
... 5.4 Work Center ... 107
... 5.5 Routing ... 123

6. Sales and Operations Planning ... 139
... 6.1 Process Overview ... 139
... 6.2 Basic Technical Principles in Sales Planning ... 145
... 6.3 Planning Table ... 159
... 6.4 Forecast ... 173
... 6.5 Event ... 178
... 6.6 Resource Leveling Using a Rough-Cut Planning Profile ... 181
... 6.7 Transfer to Demand Management ... 184
... 6.8 Mass Processing ... 186

7. Demand Management ... 191
... 7.1 Process Overview ... 191
... 7.2 Time-Based Disaggregation ... 195
... 7.3 Planning Strategy ... 197
... 7.4 Editing Planned Independent Requirements ... 205

8. Material Requirements Planning ... 211
... 8.1 Process Overview ... 211
... 8.2 Influencing Factors in Material Requirements Planning ... 216
... 8.3 MRP Procedures ... 230
... 8.4 Executing Material Requirements Planning ... 246
... 8.5 Scheduling ... 255
... 8.6 Procurement Proposals ... 262
... 8.7 Analysis ... 267
... 8.8 Plant Parameters and MRP Group ... 272

9. Long-Term Planning ... 275
... 9.1 Process Overview ... 275
... 9.2 Planning Scenario ... 277
... 9.3 Executing Long-Term Planning ... 282

10. Production Order Creation ... 287
... 10.1 Process Overview ... 287
... 10.2 Production Order ... 289
... 10.3 Conversion from the Planned Order ... 306
... 10.4 Interactive Production Order Creation ... 308
... 10.5 Scheduling ... 309
... 10.6 Availability Check ... 326

11. Capacity Requirements Planning ... 337
... 11.1 Process Overview ... 337
... 11.2 Capacity Requirements and Capacity Evaluation ... 338
... 11.3 Checking Capacity Availability ... 347
... 11.4 Finite Scheduling ... 353
... 11.5 Dispatching ... 354
... 11.6 Capacity Planning Table ... 371

12. Production Execution ... 379
... 12.1 Process Overview ... 379
... 12.2 Releasing the Production Order ... 380
... 12.3 Material Withdrawal ... 384
... 12.4 Confirmation ... 391
... 12.5 Goods Receipt ... 397
... 12.6 Settlement ... 400
... 12.7 Completion ... 402

13. Supply Chain Management and Integration with SAP APO ... 403
... 13.1 Supply Chain Management with SAP APO ... 403
... 13.2 Integration Scenarios ... 406
... 13.3 Technical Integration ... 408

Appendix ... 413
... A Glossary ... 415
... B List of Transactions ... 453
... C List of Abbreviations ... 463
... D Literature ... 465
... E The Authors ... 469

Index ... 471