Production planning master data

It is made from the following list of subassemblies semi-finished products and raw materials These materials already exist in the Material Master: Item Code Material Description Material

Production Planning – Master

Data

Scenario

Global Bikes Inc (GBI) was founded in 2001 following the merger of two bicycle

manufacturers, one based in the US and the other in Germany GBI has three lines of business: deluxe and professional touring bikes, men‟s and women‟s off-road bikes, and bike accessories

GBI sells its bikes to a network of specialized dealers throughout the world, and it procures its raw materials from a variety of suppliers globally

GBI has two manufacturing facilities, one in the US and one in Germany It also has three additional warehouses, two in the US and one in Germany

GBI has more than 100 employees globally The organization uses SAP ERP to support its processes

Organisational Units

During the implementation of SAP R/3 once the business processes to be implemented are determined the next stage is to define the organisational units Organisational units are areas of the company where various business processes are implemented Different

processes can use different organisational units The organisational units used in

Production Planning are Client, Company Code, Plant and Storage Location

Company Code

A company code is an independent accounting unit Balance sheet and profit and loss

statements that are required by law are created at the company code level In our scenario

the company code will be US00

Plant

A plant produces goods, renders services or makes goods available for distribution It has

attributes such as:

A storage location defines where materials are stored A plant could have more than one storage location The storage locations in our scenario is FG00

A summary of the organisational units used in our scenario are illustrated below

Display Level BOM Report

Multi-Create Work

Centres Create Routings

Material Master

The Material Master contains all the information on all the material that a company procures, produces, stores and sells It is used by all of the Logistics components in the

R/3 System such as purchasing, inventory management, materials planning, invoice

verification, and so on

Information stored in the Material Master can describe the component as well as how it

should be treated in the business processes Materials with similar basic attributes are

grouped together by material type This means you can manage your materials according

to their business requirements

Creating Material Master records

We are going to define a new Finished Product, The Mongoose Mountain Bike with item

code ORMG1### (Where ### is the last 3 digits of your SAP user id.)

It is made from the following list of subassemblies (semi-finished products) and raw

materials (These materials already exist in the Material Master):

Item Code Material Description Material Type

ORWA1### Wheel Assembly Semi-Finished Product

DGAM1### Gear Assembly Semi Finished Product

ORWH1### Aluminium Wheel Raw Material

BOLT1### Socket Head Bolt Raw Material

We will now create the Material Master record for the Mongoose bike

01 Choose Logistics => Production => Master Data => Material

Master => Material => Create (general) =>Immediately

The Create Material (Initial Screen) appears

02 Type the following information about the Finished Product:

Your screen appears as follows:

03 Press <ENTER> to accept the values

The Select Views dialog box is displayed (or click on the button on the

Application Toolbar) In SAP, the information stored in the Material Master record is

divided into different views so that a user can request to look at only the information that is

of interest to him/her Each user department has its own view of a material master record For example, data that relates to the accounting department is stored in the accounting

view and data that relates to material planning is stored in the MRP view A view can extend to one or more screens For example, the MRP view has several screens

04 Click to select the following six views:

Basic Data 1 Sales : Sales Org Data 1 Sales : Sales Org Data 2 Sales : General Plant Data General Plant Data/Storage 1 Accounting 1

05 Make sure that the “Create views selected” option is ticked, then Press

<ENTER> to accept the views

06 You now need to specify the organisational elements relevant to this material

In the Organisational Levels box, type:

Storage Location: FG00 Finished Goods

Sales Organisation: UE00 US East

Distribution Channel: WH Wholesale

Check that the four codes above have been entered correctly before pressing <Enter>

Press <ENTER>

07 The Create Material screen for Finished Products will be displayed If the “Basic

data 1” tab is not selected, click on it to select it

08 Type the following information about material ORMG1### :

Basic Data 1

Description: Mongoose Mountain Bike

Base unit of measure: EA (Each)

Material group: BIKES (Finished bikes)

Division: BI (Bicycles)

Lab/office: 001 (Laboratory 1)

Gross Weight: 8000

Net Weight 8000

Weight Unit G (Grams)

Sales : Sales Org 1

Tax classification 0 (Exempt)

(Note : There are three of these to be entered You may have to use the

scroll bars to view them all)

Sales : General Plant Data

Availability check 02 (Individual reqmts)

Trans gp 0001 (Palettes)

Loading grp 0002 (Handcart)

Accounting 1

Valuation Class 7920 (Finished product)

Price Control S (Standard)

Standard Price 1500

09 Click to save your document (or type CTRL-S)

If you get the message “Prices have been recalculated”, Save again

You should now be back at the Create Material (Initial Screen) with the following message on the Status Bar “Material ORMG1### created” If you do not see this

message check with your tutor !

Changing Material Master records

We will now make a change to one of the existing Semi-Finished Products, the Off Road

Wheel Assembly

10 Choose Logistics => Production => Master Data => Material

Master => Material => Change =>Immediately

11 Enter Material ORWA1### and press <enter>

12 Select the Basic Data 1

MRP 1

and General Plant Data/Storage 1 views

13 In the Organisational Levels dialog box, enter

DL00 Dallas

SF00 Semi-finished goods Press <enter>

The Change Material (Semifinished Product) screen appears

14 Click on the MRP1 tab

15 Change the ABC Indicator to “B”

16 Save the updated material record

Note the message at the bottom of the screen:

Displaying Material Master records

We will now display one of the existing Raw Materials, the Tire

17 Choose Logistics => Production => Master Data => Material

Master => Material => Display => Display Current

18 Enter Material ORTR1### and press <enter>

19 Select the Basic Data 1

Purchasing Accounting 1

and Costing 1 views

20 In the Organisational Levels dialog box, enter

DL00 Dallas

Press <enter>

The Display Material (Raw Materials) screen appears

21 Click on the Purchasing tab

What Purchasing Group does the material belong to ?

22 Return to the Standard menu

Bill of Materials (BOM) The BOM is a complete formally structured list of components that make up a product or

assembly The list contains the item number of each component together with the quantity

and unit of measure It creates the relationships between an assembly and all of its direct

components

The structure of the bicycle can be represented using a Bill-of-Material

The BOM for the Mongoose Mountain Bike can be represented as follows:

This BOM shows how the bicycle is assembled from raw materials For example, to make

the subassembly ORWA1### we use 6 different raw materials In the next process 2

units of ORWA1### are combined with 1 unit of subassembly ORFR1### and 1 unit of

DGAM1### to make the final product Each component has its own material master

Defining the Bill of Materials

You are now ready to define the Bill of Materials for our Mongoose bicycle You will define the Bill

for the finished product, the bills for the subassemblies are already defined in the BOM master data file

23 Choose Logistics => Production => Master Data => Bills of Material => Bill of

Material => Material BOM => Create

The Create material BOM : Initial Screen appears

24 Type the following data:

Material : ORMG1###

Plant : DL00

BOM usage : 1 (Production)

Your screen appears as follows:

25 Press <ENTER>

The General Item Overview screen appears

26 Enter the data for the components of the Finished product ORMG1### as follows :

Item Category (ICt) Component Quantity

Do not enter the unit of measure

27 Press <ENTER> to display the component description, unit of measure and other data

28 Click to save your data

The Initial Screen will be displayed with the message „Creating BOM for material

ORMG1###’ on the Status bar

You can now check the material structure by displaying a Multi-Level BOM :

29 Return to the Standard menu,

30 Choose Information Systems => General Report Selection =>

Logistics – General => Logistics Basic Data => Bill of

Material => Display Multilevel BOM

31 Type Material ORMG1###, Plant DL00, BOM Usage 1, Application PP01,

Required qty 1

32 Click to execute the report

The report should appear similar to the screen below

You can drill down to view the details of any component

33 Double click a component number to drill down

34 Click or to return to the SAP standard menu

Work Centres

Now that we have defined the materials to be used

in making a bicycle, we need to define the location and sequence in the plant in which the

manufacturing processes take place

A work center is where an operation or activity is carried out within a plant It can represent a

geographical location or a particular machine in a dept Examples : Lathe 2,

Line A, Group 12 Work centres are used in

routings, costing calculations, and scheduling

36 Type the following data :

Plant : DL00 (Dallas)

Work center : WC1-###

Work center category : 0001 (Machine) Your screen should appear as follows:

37 Press <ENTER> to continue

The Basic Data screen is displayed

38 Type Assembly as the work center description,

000 as the Person Responsible,

001 as the Usage SAP1 as the Standard key value

Click on the Costing tab and enter Cost Centre NAPR1000

39 Click to save your data

You will return to the Create Work Centre: Initial Screen

40 Repeat this process for the remaining three work centres In all cases use the same

data as for WC1 and the following descriptions:

You now need to produce a Work Center List to check that you have entered the data correctly

42 Type /nCR05 in the Command Field on the Standard Toolbar

43 Press <ENTER>

The Work Center List selection screen is displayed

44 Select all work centers in Plant DL00, Work Center WC*-### (wild card) and execute the

report

/nCR05

Routings

A routing contains the operations to be performed, their sequence and the various work centers

involved to manufacture an item

45 Choose Logistics => Production => Master Data => Routings =>

Routings => Standard Routings => Create

The Create Routing: Initial Screen appears

46 Type the following data:

Material: ORMG1###

Plant: DL00

47 Press <ENTER> to accept the data

The Create Routings : Header Details screen appears

48 Type 1 for the Usage field (Production)

and 3 for the Status field (Released for Costing)

Your screen appears as follows, the Group number will be assigned by the system

49 Press <ENTER> to accept the values

50 Click on the Applications Tool Bar to display the Operation

Overview screen

51 Type the details of each operation as follows :

Operation Work Center Control Description

0010 WC1-### PP01 Assemble Raw Materials

0020 WC2-### PP01 Final Assembly

0030 WC3-### PP01 Paint

0040 WC4-### PP01 Final Test

52 Click to save your data

You now need to produce a Routing Report to check that we have entered the data

correctly

53 Type /nCA51 in the Command Field on the Standard Toolbar

The Task List selection screen is displayed

55 Type Task List Type : “N” (Routing)

Material “ORMG1###”

to review the routings

56 Execute

Materials List Report

57 Go to transaction MM60, the Materials List

58 Enter *1### in the Material field The “*” is a wild-card character which means :

include all materials whose code ends with ###

Enter DL00 as the plant

59 Execute the report

60 This report uses the standard “SAP List Viewer” format

Note all the options on the applications toolbar

61 With the help of the Information button, try some of the options

END OF WORKSHOP - RETURN TO SAP MENU Useful Transaction Codes

MM01 Create Material Master

MM02 Change Material Master

MM03 Display Material Master

CR05 Workcentre List Report

MM60 Material List Report