Production Planning with SAP S4HANA (Jawad Akhtar) (z-library.sk, 1lib.sk, z-lib.sk)
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SAP PRESS is a joint initiative of SAP and Rheinwerk Publishing. The know-how offered by SAP specialists combined with the expertise of Rheinwerk Publishing offers the reader expert books in the field. SAP PRESS features first-hand information and expert advice, and provides useful skills for professional decision-making. SAP PRESS offers a variety of books on technical and business-related topics for the SAP user. For further information, please visit our website: http://www.sap-press.com. Jawad Akhtar, Martin Murray Materials Management with SAP S/4HANA: Business Processes and Configuration 2019, 946 pages, hardcover and e-book www.sap-press.com/4711 Justin Ashlock Sourcing and Procurement in SAP S/4HANA 2018, 503 pages, hardcover and e-book www.sap-press.com/4551 Jandhyala, Kusters, Mane, Sinha Sales and Operations Planning with SAP IBP 2018, 499 pages, hardcover and e-book www.sap-press.com/4589 Sandy Markin, Amit Sinha SAP Integrated Business Planning: Functionality and Implementation (2nd Edition) 2018, 504 pages, hardcover and e-book www.sap-press.com/4615
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Jawad Akhtar Production Planning with SAP S/4HANA®
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Dear Reader, In my experience, editors at SAP PRESS often fulfill many roles: engineers, quarter- masters, translators, even surgeons! When working with an all-star author like Jawad Akhtar, an editor can assume a new identity: a supporter and a collaborator. Jawad is perhaps one of our most self-directed authors. Even when the book is planne for nearly 1,000 pages, Jawad still provides stellar work on a tight schedule. His atten- tion to detail is keen and his commitment is unwavering. Meanwhile, I’ve been doing the production planning. The materials (a stunning manu- script) are in place, the personnel (our expert production department) is ready, and the machinery (our printers and shippers) is standing by. My role as Jawad’s editor is to stay keyed into every part of the manuscript preparation process, maintaining an open line of communication and coordination to make sure that this behemoth of a book gets to the printer in one piece. Weeks or months later, you’re holding the end product. So how’d we do? What did you think about Production Planning with SAP S/4HANA? Your comments and suggestions are the most useful tools to help us make our books the best they can be. Please feel free to contact me and share any praise or criticism you may have. Thank you for purchasing a book from SAP PRESS! Meagan White Editor, SAP PRESS meaganw@rheinwerk-publishing.com www.sap-press.com Rheinwerk Publishing • Boston, MA
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Notes on Usage This e-book is protected by copyright. By purchasing this e-book, you have agreed to accept and adhere to the copyrights. You are entitled to use this e-book for personal purposes. You may print and copy it, too, but also only for personal use. Sharing an electronic or printed copy with others, however, is not permitted, neither as a whole nor in parts. Of course, making them available on the Internet or in a company network is illegal as well. For detailed and legally binding usage conditions, please refer to the section Legal Notes. This e-book copy contains a digital watermark, a signature that indicates which person may use this copy:
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Imprint This e-book is a publication many contributed to, specifically: Editor Meagan White Acquisitions Editor Emily Nicholls Copyeditor Julie McNamee Cover Design Graham Geary Photo Credit Shutterstock.com/1022087803/© NavinTar Production E-Book Hannah Lane Typesetting E-Book III-satz, Husby (Germany) We hope that you liked this e-book. Please share your feedback with us and read the Service Pages to find out how to contact us. ISBN 978-1-4932-1795-3 (print) ISBN 978-1-4932-1796-0 (e-book) ISBN 978-1-4932-1797-7 (print and e-book) © 2019 by Rheinwerk Publishing, Inc., Boston (MA) 1st edition 2019 The Library of Congress has cataloged the printed edition as follows: Names: Akhtar, Jawad, author. Title: Production planning with SAP S/4HANA / Jawad Akhtar. Description: 1st edition. | Bonn ; Boston : Rheinwerk Publishing, 2019. | Includes index. Identifiers: LCCN 2018060658 (print) | LCCN 2018061550 (ebook) | ISBN 9781493217960 (ebook) | ISBN 9781493217953 (alk. paper) Subjects: LCSH: Production planning--Data processing. | SAP HANA (Electronic resource) Classification: LCC TS155.6 (ebook) | LCC TS155.6 .A3884 2019 (print) | DDC 658.5002/18--dc23 LC record available at https://lccn.loc.gov/2018060658
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Contents Acknowledgments .............................................................................................................................. 27 Preface ..................................................................................................................................................... 29 PART I Core Production Planning Concepts 1 Introduction to Production Planning with SAP S/4HANA 37 1.1 Production Planning and Control ................................................................................. 38 1.1.1 Production Planning Overview ........................................................................ 38 1.1.2 Characteristics of Production Types ............................................................... 40 1.1.3 Processes in Production Planning and Control ........................................... 47 1.1.4 Product Cost Controlling .................................................................................... 49 1.2 Comparison Table of Production Types ..................................................................... 50 1.3 SAP Integrated Business Planning ............................................................................... 55 1.4 Summary ................................................................................................................................. 57 2 Organizational Structure in SAP 59 2.1 Breaking Down the Structure into Units ................................................................... 59 2.1.1 Client ......................................................................................................................... 61 2.1.2 Company Code ...................................................................................................... 62 2.1.3 Plant .......................................................................................................................... 63 2.1.4 Storage Location ................................................................................................... 65 2.1.5 Material Requirements Planning Controllers ............................................. 66 2.1.6 Capacity Planners ................................................................................................. 67 2.1.7 Production Schedulers ........................................................................................ 67 2.2 SAP Calendar .......................................................................................................................... 68 2.2.1 Public Holidays ...................................................................................................... 697
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Contents2.2.2 Holiday Calendar .................................................................................................. 70 2.2.3 Factory Calendar .................................................................................................. 70 2.3 Summary ................................................................................................................................. 72 PART II Production Planning Configuration 3 Discrete Manufacturing Configuration 75 3.1 Material Master ................................................................................................................... 76 3.2 Bill of Materials .................................................................................................................... 78 3.2.1 Define Bill of Material Usages ......................................................................... 78 3.2.2 Allowed Material Types in the Bill of Materials Header ......................... 79 3.2.3 Bill of Material Status ......................................................................................... 80 3.2.4 Bill of Material with History Requirement .................................................. 81 3.2.5 Item Category in Bill of Material ..................................................................... 81 3.2.6 Variable Size Item Formulas ............................................................................. 82 3.2.7 Bill of Material Explosion Types ...................................................................... 83 3.2.8 Bill of Material Selection (Order of Priority) ................................................ 83 3.3 Work Center .......................................................................................................................... 84 3.3.1 Work Center Category ........................................................................................ 84 3.3.2 Field Selection in the Work Center ................................................................. 85 3.3.3 Formulas for the Work Center ......................................................................... 87 3.3.4 Standard Value Key ............................................................................................. 89 3.3.5 Location Groups .................................................................................................... 92 3.3.6 Control Key for Operations ............................................................................... 94 3.4 Routing .................................................................................................................................... 95 3.5 Production Order Configuration .................................................................................. 97 3.5.1 Maintain Order Types ......................................................................................... 98 3.5.2 Number Ranges .................................................................................................... 100 3.6 Order Type-Dependent Plant Parameters ............................................................... 101 3.6.1 Planning .................................................................................................................. 102 3.6.2 Implementation ................................................................................................... 104 3.6.3 Cost Accounting ................................................................................................... 1068
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Contents3.7 Production Scheduling Profile ....................................................................................... 106 3.8 Default Values for the Generation of Operations ................................................ 109 3.9 Availability Check ................................................................................................................ 110 3.9.1 Define the Checking Group ............................................................................... 111 3.9.2 Define the Checking Rule ................................................................................... 112 3.9.3 Define the Scope of Check ................................................................................. 112 3.9.4 Define the Checking Control ............................................................................ 114 3.10 Scheduling .............................................................................................................................. 116 3.10.1 Scheduling Types for Production Orders ...................................................... 117 3.10.2 Scheduling Parameters for Production Orders ........................................... 118 3.10.3 Scheduling Margin Key ....................................................................................... 119 3.11 Reduction Strategy ............................................................................................................. 121 3.12 Confirmation ......................................................................................................................... 122 3.12.1 Process Overview .................................................................................................. 123 3.12.2 Parameters for Order Confirmation ............................................................... 124 3.12.3 Single Entry Screen for Confirmation ............................................................ 128 3.12.4 Time of Confirmation .......................................................................................... 130 3.13 Reason for Variances .......................................................................................................... 130 3.14 Trigger Points ........................................................................................................................ 132 3.15 Define Print Control ............................................................................................................ 132 3.16 Background Jobs .................................................................................................................. 133 3.17 Summary ................................................................................................................................. 134 4 Process Manufacturing Configuration 135 4.1 Master Data in Process Industries ................................................................................ 136 4.1.1 Master Recipe Profile ........................................................................................... 136 4.1.2 Task List Assignment to Material Types ....................................................... 138 4.1.3 Task List Status ...................................................................................................... 138 4.2 Order Type-Dependent Parameters ............................................................................ 139 4.2.1 Master Data ............................................................................................................ 140 4.2.2 Planning ................................................................................................................... 1419
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Contents4.2.3 Implementation ................................................................................................... 142 4.2.4 Cost Accounting ................................................................................................... 143 4.3 Production Scheduling Profile ....................................................................................... 143 4.4 Process Management ........................................................................................................ 144 4.4.1 Key Terminology ................................................................................................... 145 4.4.2 Standard Settings and Tools ............................................................................ 147 4.5 Process Messages ................................................................................................................ 149 4.5.1 Create a Process Message Characteristic ..................................................... 150 4.5.2 Process Message Destination .......................................................................... 150 4.5.3 Process Message Categories ............................................................................ 151 4.6 Process Instruction Category ......................................................................................... 155 4.6.1 Process Instruction Types .................................................................................. 155 4.6.2 Using a Wizard or Process Instruction Assistant ....................................... 164 4.6.3 Creating a Self-Defined Process Instruction Category ............................ 168 4.6.4 Creating a Self-Defined Process Instruction Characteristic ................... 170 4.7 Control Recipe/Process Instruction Sheets .............................................................. 173 4.7.1 Create a Control Recipe Destination ............................................................. 174 4.7.2 Scope of Generation ............................................................................................ 176 4.8 Background Jobs .................................................................................................................. 177 4.8.1 Background Job for Sending Control Recipes ............................................. 177 4.8.2 Background Job for Sending Process Messages ......................................... 178 4.8.3 Background Job for Deleting Process Messages ........................................ 179 4.9 Process Manufacturing Cockpit .................................................................................... 179 4.10 Summary ................................................................................................................................. 182 5 Repetitive Manufacturing Configuration 183 5.1 Repetitive Manufacturing Profile ................................................................................ 184 5.1.1 Repetitive Manufacturing Production Type ................................................ 184 5.1.2 Reporting Points ................................................................................................... 186 5.1.3 Automatic Goods Movements ........................................................................ 186 5.1.4 Reporting Points Confirmation and Kanban .............................................. 187 5.1.5 Activities Posting .................................................................................................. 18810
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Contents5.1.6 Separated Backflush ............................................................................................ 188 5.1.7 Process Control ...................................................................................................... 189 5.1.8 Firming Planned Orders ...................................................................................... 190 5.1.9 Automatic Stock Determination ..................................................................... 190 5.1.10 Batch Determination Procedure ...................................................................... 190 5.1.11 Reduction in Planned Order Quantities ........................................................ 191 5.1.12 Reduction Period ................................................................................................... 191 5.1.13 Create New Planned Orders on Goods Receipts Reversals ..................... 192 5.1.14 Online Error Correction ....................................................................................... 192 5.1.15 Reprocessing Errors Log Maintenance .......................................................... 193 5.1.16 Movement Types for Stock Postings .............................................................. 193 5.1.17 Naming the Repetitive Manufacturing Profile ........................................... 194 5.1.18 Summary of Repetitive Manufacturing Profile Settings ......................... 194 5.2 Scheduling Planned Orders ............................................................................................. 196 5.3 Display ...................................................................................................................................... 197 5.3.1 Entry Parameters for a Planning Table .......................................................... 198 5.3.2 Maintain Rows Selection ................................................................................... 198 5.4 Material Staging .................................................................................................................. 199 5.5 Global Settings for Confirmation and the Logistics Information System ...................................................................................................................................... 200 5.6 Operational Methods Sheet ........................................................................................... 201 5.7 Summary ................................................................................................................................. 202 PART III Production Planning Workflows 6 Production Planning for Discrete Manufacturing 205 6.1 Process Overview ................................................................................................................. 206 6.2 Master Data ............................................................................................................................ 207 6.2.1 Material Master .................................................................................................... 208 6.2.2 Bill of Materials ..................................................................................................... 215 6.2.3 Work Center ........................................................................................................... 220 6.2.4 Routing ..................................................................................................................... 230 6.2.5 Production Version ............................................................................................... 24211
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Contents6.3 Production Order Management ................................................................................... 246 6.3.1 Header Data ........................................................................................................... 248 6.3.2 Operations Overview .......................................................................................... 249 6.3.3 Standard Trigger Points ..................................................................................... 252 6.3.4 Components Overview ....................................................................................... 254 6.3.5 Reread Master Data ............................................................................................ 255 6.3.6 Statuses ................................................................................................................... 255 6.3.7 Scheduling .............................................................................................................. 256 6.3.8 Availability Checks ............................................................................................... 261 6.4 Release Production Order ................................................................................................ 266 6.4.1 Automatic Release ............................................................................................... 267 6.4.2 Individual Release ................................................................................................ 267 6.4.3 Collective Release ................................................................................................. 268 6.5 Printing .................................................................................................................................... 269 6.6 Material Withdrawal ......................................................................................................... 272 6.6.1 Goods Issuance against the Production Order ........................................... 273 6.6.2 Picking List .............................................................................................................. 275 6.6.3 Backflush ................................................................................................................. 276 6.7 Confirmation ......................................................................................................................... 279 6.7.1 Confirmation at the Operations Level .......................................................... 281 6.7.2 Progress Confirmation ....................................................................................... 284 6.7.3 Confirmation for Order ...................................................................................... 284 6.7.4 Confirmation Cancellation ............................................................................... 285 6.7.5 Display Confirmation .......................................................................................... 285 6.8 Goods Receipt ....................................................................................................................... 286 6.8.1 Goods Receipt: Manual Process ...................................................................... 286 6.8.2 Goods Receipt: Automatic Process ................................................................. 288 6.9 Postprocessing ..................................................................................................................... 289 6.9.1 Reprocessing Goods Movements ................................................................... 289 6.9.2 Cost Calculation ................................................................................................... 291 6.10 Settlement and Completion ........................................................................................... 291 6.11 Additional Functions and Information Systems ................................................... 293 6.11.1 From Planned Order: Individual Conversion ............................................... 293 6.11.2 From Planned Orders: Collective Conversion ............................................. 293 6.11.3 Production Order Creation without a Material ......................................... 29412
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Contents6.11.4 Mass Processing .................................................................................................... 294 6.11.5 Information Systems ........................................................................................... 296 6.12 Summary ................................................................................................................................. 298 7 Production Planning for Process Manufacturing 299 7.1 Process Manufacturing Overview ................................................................................ 300 7.2 Master Data in Process Manufacturing ..................................................................... 302 7.2.1 Material Master .................................................................................................... 303 7.2.2 Bill of Materials ..................................................................................................... 304 7.2.3 Resource .................................................................................................................. 304 7.2.4 Production Version ............................................................................................... 304 7.2.5 Master Recipe Creation ...................................................................................... 305 7.3 Characteristics ....................................................................................................................... 312 7.4 Process Management ........................................................................................................ 316 7.4.1 Elements in Process Management ................................................................. 318 7.4.2 Integrating Process Management .................................................................. 318 7.4.3 Process Instructions ............................................................................................. 319 7.4.4 Process Instruction Sheet .................................................................................. 321 7.5 Process Order Execution ................................................................................................... 330 7.6 Process Management in Action ..................................................................................... 332 7.6.1 Creating and Releasing a Process Order ....................................................... 332 7.6.2 Generating a Control Recipe ............................................................................. 333 7.6.3 Downloading and Sending a Control Recipe ............................................... 335 7.6.4 Maintaining Process Instruction Sheets ....................................................... 337 7.6.5 Completing Process Instruction Sheets ........................................................ 340 7.6.6 Sending Process Messages ................................................................................ 340 7.7 Execution Steps .................................................................................................................... 343 7.7.1 Repository for Standard XSteps ....................................................................... 343 7.7.2 Importing the Standard XSteps Library ......................................................... 344 7.7.3 Switching from Process Instructions to Execution Steps ........................ 345 7.7.4 General Information ............................................................................................ 346 7.7.5 Parameters .............................................................................................................. 34713
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Contents7.7.6 Valuation ................................................................................................................ 347 7.7.7 Control Recipe Destination ............................................................................... 348 7.7.8 Process Instructions ............................................................................................ 349 7.8 Process Messages Evaluation ........................................................................................ 357 7.9 Process Manufacturing Cockpit .................................................................................... 359 7.10 Summary ................................................................................................................................. 360 8 Production Planning for Repetitive Manufacturing 361 8.1 Overview ................................................................................................................................. 362 8.1.1 Roles of Repetitive Manufacturing in Planning and Production .......... 362 8.1.2 Repetitive Manufacturing Process Flow ....................................................... 363 8.2 Master Data ........................................................................................................................... 365 8.2.1 Material Master .................................................................................................... 367 8.2.2 Bill of Materials ..................................................................................................... 368 8.2.3 Work Center (Production Line) ........................................................................ 368 8.2.4 Routing .................................................................................................................... 377 8.2.5 Production Version .............................................................................................. 383 8.3 Material Requirements Planning in REM ................................................................. 387 8.4 Planning Table ...................................................................................................................... 390 8.4.1 Parameters Selection .......................................................................................... 390 8.4.2 Creating a Repetitive Manufacturing Planned Order .............................. 394 8.4.3 Capacity Planning ................................................................................................ 398 8.4.4 Changes and Evaluations .................................................................................. 399 8.4.5 Range of Coverage ............................................................................................... 400 8.5 Material Staging .................................................................................................................. 401 8.5.1 Current Situation ................................................................................................. 402 8.5.2 Trigger Replenishment ....................................................................................... 403 8.5.3 Collective Availability Check ............................................................................. 405 8.6 Production List ...................................................................................................................... 405 8.7 Confirmation ......................................................................................................................... 407 8.7.1 Overview ................................................................................................................. 40714
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Contents8.7.2 Assembly Confirmation ...................................................................................... 409 8.7.3 Component Confirmation ................................................................................. 411 8.7.4 Activities Confirmation ...................................................................................... 411 8.7.5 Actual Assembly Confirmation ........................................................................ 411 8.7.6 Separated Backflush ............................................................................................ 415 8.7.7 Postprocessing of Components ....................................................................... 416 8.7.8 Collective Confirmation ..................................................................................... 416 8.8 Reversals and Scrap ............................................................................................................ 417 8.8.1 Document-Specific Reversal ............................................................................. 418 8.8.2 Document-Neutral Reversal ............................................................................. 420 8.8.3 Repetitive Manufacturing Actual Assembly Scrap .................................... 420 8.8.4 Repetitive Manufacturing Actual Component Scrap ............................... 421 8.8.5 Repetitive Manufacturing Actual Activity Scrap ........................................ 422 8.8.6 Reset Reporting Point Confirmation .............................................................. 422 8.9 Costing Activities (Cost Object Controlling) ............................................................ 422 8.10 Heijunka ................................................................................................................................... 424 8.11 Reporting ................................................................................................................................. 425 8.11.1 Document Log Information .............................................................................. 425 8.11.2 Reporting Point Statistics .................................................................................. 426 8.12 Summary ................................................................................................................................. 427 PART IV Production Planning Tools 9 Batch Management 431 9.1 Batch Management Overview ....................................................................................... 431 9.2 Batch Level and Batch Status Management ............................................................ 433 9.2.1 Define the Batch Level ........................................................................................ 433 9.2.2 Batch Number Assignment ............................................................................... 435 9.2.3 Creation of New Batches in the Production Process ................................ 436 9.2.4 Batch Creation for Goods Movement ............................................................ 437 9.3 Master Data in Batch Management ............................................................................ 438 9.3.1 Activate Batch Management in the Material Master .............................. 43815
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Contents9.3.2 Batch Classification ............................................................................................. 439 9.3.3 Assigning Classification in the Material Master ....................................... 442 9.4 Business Processes of Batch Management .............................................................. 443 9.4.1 Create a Batch Master Manually .................................................................... 444 9.4.2 Changing a Batch ................................................................................................. 448 9.4.3 Deleting a Batch ................................................................................................... 448 9.4.4 Automatic Creation of a Batch in Goods Movement ............................... 448 9.4.5 Stock Overview ..................................................................................................... 450 9.5 Batch Determination ......................................................................................................... 452 9.5.1 Define Condition Tables .................................................................................... 453 9.5.2 Define the Access Sequence ............................................................................. 456 9.5.3 Define Strategy Types ......................................................................................... 457 9.5.4 Batch Search Procedure Definition ................................................................ 458 9.5.5 Batch Search Procedure Allocation and Check Activation ..................... 460 9.5.6 Batch Search Procedure for Production Orders ......................................... 460 9.5.7 Creating Sort Rules .............................................................................................. 461 9.5.8 Maintaining Condition Records ...................................................................... 462 9.5.9 Stock and Batch Determination ...................................................................... 464 9.5.10 Business Process ................................................................................................... 465 9.6 Recurring Inspection and Expiration Dates ............................................................. 467 9.6.1 Quality Management Master Data Checklist ............................................. 468 9.6.2 Business Processes .............................................................................................. 471 9.7 Batch Derivation .................................................................................................................. 474 9.7.1 Configuration Basics ........................................................................................... 475 9.7.2 Classification in Material Master ................................................................... 475 9.7.3 Business Processes .............................................................................................. 483 9.7.4 Reporting ................................................................................................................ 486 9.8 Batch Traceability of Work in Process Batches ...................................................... 487 9.8.1 Configuration Settings ....................................................................................... 487 9.8.2 Master Data Setup ............................................................................................... 490 9.8.3 Business Processes .............................................................................................. 491 9.8.4 Work in Process Batches Reporting ............................................................... 497 9.9 Batch Information Cockpit .............................................................................................. 499 9.10 Electronic Batch Record .................................................................................................... 501 9.11 Summary ................................................................................................................................. 50316
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Contents10 Sales and Operations Planning 505 10.1 Standard Sales and Operations Planning ................................................................. 506 10.1.1 Overview .................................................................................................................. 506 10.1.2 Information Structures ....................................................................................... 512 10.1.3 Planning Methods ................................................................................................ 515 10.1.4 Planning Types in Standard Sales and Operations Planning ................. 516 10.1.5 Distribute Key Figures ......................................................................................... 522 10.1.6 Working with Macros .......................................................................................... 526 10.2 Flexible Planning ................................................................................................................. 527 10.2.1 Creating a Self-Defined Info Structure .......................................................... 528 10.2.2 Planning Hierarchy ............................................................................................... 534 10.2.3 Planning Type ........................................................................................................ 536 10.2.4 Working with Self-Defined Macros in Flexible Planning ........................ 540 10.2.5 Row Attributes in a Planning Type ................................................................. 543 10.2.6 Planning in the Planning Table ........................................................................ 544 10.2.7 Additional Features of Planning Tables ........................................................ 550 10.3 Version Management ........................................................................................................ 551 10.3.1 Copy a Version ....................................................................................................... 551 10.3.2 Delete a Version .................................................................................................... 552 10.3.3 Scheduling a Copy Version or Scheduling a Delete Version ................... 553 10.4 Forecasting ............................................................................................................................. 553 10.4.1 Forecasting View in the Material Master ..................................................... 554 10.4.2 Forecast Models .................................................................................................... 558 10.4.3 Forecast Profile ...................................................................................................... 560 10.4.4 Forecast Strategy .................................................................................................. 562 10.4.5 Using the Forecast Profile .................................................................................. 564 10.4.6 Weighting Group .................................................................................................. 566 10.4.7 Splitting Indicator ................................................................................................. 566 10.5 Rough-Cut Planning Profile ............................................................................................ 567 10.5.1 Create a Profile ...................................................................................................... 568 10.5.2 Pegged Requirements ......................................................................................... 571 10.6 Events ........................................................................................................................................ 572 10.6.1 Create Events ......................................................................................................... 573 10.6.2 Assignment of Events ......................................................................................... 574 10.6.3 Events in Planning ................................................................................................ 57617
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Contents10.7 Mass Processing in Sales and Operations Planning ............................................. 578 10.7.1 Planning Activity .................................................................................................. 579 10.7.2 Setting Up a Mass Processing Job .................................................................. 579 10.7.3 Scheduling the Mass Processing Job ............................................................. 580 10.8 Standard Analysis in Flexible Planning ..................................................................... 581 10.9 Summary ................................................................................................................................. 584 11 Demand Management 585 11.1 Elements of Demand Management ............................................................................ 586 11.1.1 Consumption Modes and Logic ....................................................................... 586 11.1.2 Determining the Requirements Type ............................................................ 588 11.1.3 Availability Check and Total Replenishment Lead Time ......................... 592 11.2 Strategies for Make-to-Stock Production ................................................................ 593 11.2.1 Strategy 40: Planning with Final Assembly ................................................. 594 11.2.2 Strategy 30: Production by Lot Size ............................................................... 596 11.2.3 Strategy 10: Net Requirements Planning .................................................... 599 11.2.4 Strategy 11: Gross Requirements Planning ................................................ 601 11.2.5 Strategy 52: Planning with Final Assembly and without MTO ............ 602 11.2.6 Strategy 63: Planning with a Planning Material and without MTO ... 604 11.3 Strategies for Make-to-Order Production ................................................................ 605 11.3.1 Strategy 20: Make-to-Order Production ...................................................... 607 11.3.2 Strategy 60: Planning with a Planning Material ....................................... 609 11.3.3 Strategy 50: Planning Without Final Assembly ......................................... 610 11.4 Strategies for Assemble-to-Order ................................................................................ 612 11.4.1 Strategy 81: Assembly Processing with Planned Orders ........................ 613 11.4.2 Strategy 82: Assembly Processing with Production Orders ................... 616 11.5 Strategies for Planning Components ......................................................................... 618 11.5.1 Strategy 70: Planning at Assembly Level ..................................................... 619 11.5.2 Strategy 59: Planning at Phantom Assembly Level .................................. 620 11.6 Production with Variant Configuration .................................................................... 62118
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Contents11.7 Create a Custom Requirement Class ........................................................................... 624 11.7.1 Copy Standard Requirements Class ............................................................... 626 11.7.2 Create a Requirements Type and Add the Requirements Class ........... 627 11.7.3 Create a Planning Strategy ................................................................................ 627 11.7.4 Create a Strategy Group and Include the Newly Created Planning Strategy ................................................................................................. 628 11.7.5 Assign Strategy Group to a Material Requirements Planning Group ..................................................................................................... 628 11.8 Business Processes in Demand Management ......................................................... 629 11.8.1 Planned Independent Requirements ............................................................. 629 11.8.2 Customer Independent Requirements .......................................................... 634 11.8.3 Planning for Independent Requirements ..................................................... 635 11.8.4 Stock/Requirements List for Independent Requirements ...................... 635 11.8.5 Total Independent Requirements: Evaluation ............................................ 636 11.8.6 Total Independent Requirements: Reorganization ................................... 638 11.8.7 Planned Independent Requirements: Reduction ....................................... 640 11.9 Summary ................................................................................................................................. 641 12 Foundations of Material Requirements Planning 643 12.1 Process Overview ................................................................................................................. 644 12.2 Deterministic Replenishment Procedures ................................................................ 651 12.2.1 MRP Type PD .......................................................................................................... 652 12.2.2 MRP Type VB .......................................................................................................... 656 12.2.3 MRP Type VM ......................................................................................................... 659 12.2.4 MRP Type V1 ........................................................................................................... 662 12.2.5 MRP Type V2 ........................................................................................................... 662 12.2.6 MRP Type D1 .......................................................................................................... 663 12.3 Stochastic Replenishment Procedures ....................................................................... 664 12.3.1 MRP Type VV .......................................................................................................... 664 12.3.2 MRP Types R1 and R2 .......................................................................................... 66819
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Contents12.4 Configuring Material Requirements Planning Types .......................................... 669 12.5 Lot Sizing Procedures ........................................................................................................ 672 12.5.1 Static Lot-Sizing Procedures ............................................................................. 674 12.5.2 Periodic Lot-Sizing Procedures ......................................................................... 676 12.5.3 Optimum Lot-Sizing Procedures ..................................................................... 677 12.5.4 Configuring Lot Size ............................................................................................ 678 12.6 Rounding ................................................................................................................................. 681 12.7 Scrap .......................................................................................................................................... 683 12.7.1 Assembly Scrap ..................................................................................................... 684 12.7.2 Component Scrap ................................................................................................ 684 12.7.3 Operations and Component Scraps in Bill of Materials .......................... 685 12.7.4 Scrap in Routing ................................................................................................... 686 12.8 Safety Stock ........................................................................................................................... 686 12.8.1 Static Safety Stock ............................................................................................... 687 12.8.2 Safety Stock Availability .................................................................................... 688 12.8.3 Dynamic Safety Stock with Range of Coverage Profile ........................... 689 12.8.4 Safety Stock and Safety Time ........................................................................... 694 12.9 Scheduling .............................................................................................................................. 695 12.9.1 Scheduling In-House Production .................................................................... 695 12.9.2 Basic Date Determination ................................................................................. 695 12.9.3 Planned Order Dates ........................................................................................... 697 12.9.4 Scheduling External Procurement ................................................................. 698 12.9.5 Forward and Backward Scheduling ............................................................... 699 12.10 Procurement Proposals .................................................................................................... 700 12.10.1 Planned Orders ..................................................................................................... 701 12.10.2 Planned Order Profile .......................................................................................... 706 12.10.3 Purchase Requisitions ........................................................................................ 706 12.11 Configuration Settings for Material Requirements Planning ......................... 706 12.11.1 Material Requirements Planning Activation .............................................. 707 12.11.2 Scope of Planning Configuration .................................................................... 707 12.11.3 Plant Parameters Configuration ..................................................................... 707 12.11.4 Material Requirements Planning Group Configuration ......................... 708 12.12 Summary ................................................................................................................................. 71120
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【One-Line Pitch】
A configuration-first field manual for SAP production planning in S/4HANA, covering discrete, process, and repetitive manufacturing from master data through order execution. Best for SAP PP consultants, production planners, and implementation teams who need to set up and run manufacturing in S/4HANA.
【Book Arc】
- **Opening (~0%–11%)**: Frames production planning within S/4HANA and integrated business planning, then establishes the organizational backbone—client, company code, plant, storage location, MRP controllers, capacity planners, and the factory calendar that all later configuration depends on.
- **Early (~14%–36%)**: The configuration core. Walks through discrete manufacturing setup (material master, BOMs, work centers, routing, scheduling, confirmation, variance reasons), then process manufacturing (master recipes, process management, process messages and instructions, control recipes), then repetitive manufacturing profiles and planning tables.
- **Middle (~39%–50%)**: Shifts from configuration to workflow. Details discrete manufacturing execution—production order management, release strategies, scheduling, availability checks, goods movements, settlement—and process manufacturing execution, including process order release, control recipe generation, and process instruction sheets.
- **Late (~50%+)**: Continues into repetitive manufacturing workflows and the remaining execution topics; excerpts thin out here, so later chapters are only partially mapped.
- **Ending**: Excerpts do not cover the closing chapters in detail; expect summary and reference material rather than new conceptual ground.
【Key Takeaways】
- **Organizational structure is the prerequisite for everything else** (Opening): Plant, storage location, MRP controller, and factory calendar settings determine how planning and scheduling behave downstream—get these wrong and every later step inherits the error.
- **Master data is the real configuration surface** (Early): Material master, BOMs, work centers, routings, and production versions are where most PP behavior is actually defined, not in transaction screens.
- **Discrete, process, and repetitive manufacturing are parallel tracks, not one path** (Early–Middle): Each has its own master data objects (routings vs. master recipes vs. repetitive profiles) and its own order type, so readers should identify their industry model early and follow that track.
- **Process manufacturing adds process management on top of standard PP** (Middle): Process messages, process instructions, control recipes, and instruction sheets extend the order into shop-floor execution—this is the most specialized and least skippable material for process industries.
- **Scheduling and availability checks are where planning meets reality** (Middle): Scheduling types, margin keys, reduction strategies, and availability checks determine whether a released order can actually be executed on time.
- **Confirmation and variance handling close the loop** (Early–Middle): Confirmation parameters, time of confirmation, and reason-for-variance codes feed cost calculation and settlement, linking production back to controlling.
- **Background jobs and print control are operational necessities** (Early): Sending control recipes, processing messages, and deleting stale messages require scheduled jobs—easy to overlook during implementation.
- **The book is configuration-heavy by design** (Throughout): Expect step-by-step customizing paths rather than conceptual theory; it assumes you have system access and a sandbox.
【Reading Tips】
- **Identify your manufacturing type first**, then read only the matching configuration and workflow chapters (discrete: Ch. 3 & 6; process: Ch. 4 & 7; repetitive: Ch. 5 and its workflow counterpart). Reading all three linearly is unnecessary unless you support multiple models.
- **Deep-read the master data sections** (material master, BOM, work center/routing, master recipe). These repay careful attention because errors propagate through every subsequent transaction.
- **Skim the table of contents and summary sections** to build a mental map before diving into configuration steps; the book is long and reference-oriented.
- **Keep a sandbox open** and follow configuration steps hands-on—this is a doing book, not a reading book.
- **Treat process management (process messages, instructions, control recipes) as advanced material**; if you are in discrete manufacturing, you can defer or skip it.
【Coverage Limits】
This guide is based on stratified excerpts covering roughly the first half of the book (front matter through process manufacturing execution). Later chapters on repetitive manufacturing workflows and any closing reference material are only partially represented, so the guide understates their content.
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nd the machinery (our printers and shippers) is standing by. My role as Jawad’s editor is to stay keyed into every part of the manuscript preparation process...
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