Intro S4HANA Using Global Bike Slides PP en v3.3
Intro S4HANA Using Global Bike Slides PP en v3.3
Software used
• S/4HANA 1809
• Fiori 2.0
Model
• Global Bike
Prerequisites
• No Prerequisites needed
Authors
Bret Wagner
Stefan Weidner
Babett Ruß
Target Audience
Beginner
Learning Objectives
• Production Planning
• Manufacturing Execution
Discrete Manufacturing
Repetitive Manufacturing
KANBAN
PP Organizational Structure
PP Master Data
PP Processes
• Material Planning
• Production Planning
• Manufacturing Execution Process
Innovations in S/4HANA
Client
• An independent environment in the system
Company Code
• Smallest org unit for which you can maintain a legal set of books
Plant
• Operating area or branch within a company
Manufacturing, distribution, purchasing or maintenance facility
Storage Location
• An organizational unit allowing differentiation between the various stocks of a material in a plant
Company
Global Bike Inc. Global Bike Germany GmbH Code
Miscellaneous Miscellaneous
Assembly Assembly
Inspection Inspection
Client GBI
Material
Routing
• BOM and routine are like a cooking recipe
• BOM = ingredients and routing = steps in the recipe
Work Center
Product Group
Single-Level
Single-Level
Finished Bike
Frame Chain
Derailleur Gear
Brake Kit
Assembly
Finished Bike
Single-Level
Wheel Frame Derailleur Seat Handle Bar Pedal Chain Brake Doc. Pack.
Tire
Tube
Wheel
Hex nut
Lock
Bolt
Multi-Level
An object that defines items in a BOM according to criteria, such as the object type of the component, for
example, material master record or document info record.
Item Categories
• Stock Item
• Non-stock Item
• Variable Material – Sheet of steel
• Document Item
• Text Item
© 2019 SAP SE / SAP UCC Magdeburg. All rights reserved. 16
Routing
Series of sequential steps (operations) that must be carried out to produce a given product
Routings contain:
• What, Where, When, How
Routing – Operation 20
• Attach seat to frame
Time
• 1 minute
A location within a plant where value-added work (operations or activities) are performed
• Work Centers can represent
People or Groups of People
Machines or Groups of Machines
Assembly Lines
Capacities used in
• Capacity requirements planning (CRP)
• Detailed scheduling
• Costing
Work centers capture and use the following Resource Related data
• Basic Data
Person Responsible, Location of Work Center
• Scheduling Information
Queues and Move Times (interoperation), Formula Keys
• Costing Data
Cost Center, Activity Types
• Personnel Data
People, Positions, Qualifications
• Capacity Planning
Available Capacity, Formulas, Operating Time
• Default Data
Control Key, Standard Text Key
© 2019 SAP SE / SAP UCC Magdeburg. All rights reserved. 21
Product Group
Aggregate planning that groups together materials or other product groups (Product Families)
Production Order
Demand
Management
Detailed Planning
MPS
MRP
Manufacturing Procurement
Execution Process
Order
Settlement
Manufacturing Execution
Manufacturing Procurement
Execution Process
Order Manufacturing
Settlement Execution
Forecasting Models
• Trend
• Seasonal
• Trend and Seasonal
• Constant
Selecting a Model
• Automatically
• Manually
Information Origination
• Sales
• Marketing
• Manufacturing
• Accounting
• Human Resources
• Purchasing
Intra-firm Collaboration
• Institutional Common Sense
The planning of requirement quantities and requirement dates for finished products and important assemblies,
and definition of the strategy for planning and producing or procuring a finished product.
Demand management can be done manually or based on previous planning results such as sales planning,
SOP, and forecast.
The results of Demand Management is called the Demand Program, it is generated from our independent
requirements - PIR - Planned Independent Requirements and CIR - Customer Independent Requirements
Forecast Sales
Planned Customer
Independent Independent
Requirements Requirements
Demand
Program
MPS / MRP
Strategies
• 10 – Net Requirements Planning
• 11 – Gross Requirements Planning
• 30 – Production by Lot Size
• 40 – Planning with Final Assembly
Strategies
• 20 – Make to Order Production
• 50 – Planning without Final Assembly
• 60 – Planning with Planning Material
MPS allows a company to distinguish planning methods between materials that have a strong influence on profit
or use critical resources and those that do not
In MRP, the system calculates the net requirements while considering available warehouse stock and scheduled
receipts from purchasing and production
MRP is used to ensure the availability of materials based on the need generated by MPS or the Demand
Program
• 5 Logical Steps
Net Requirements Calculation
Lot Size Calculation
Procurement Type
Scheduling
BOM Explosion
Procurement
Shortage
Proposal
Stock
Safety Stock
Static
• Based on fixed values in the Material Master
Periodic
• Groups net requirements together from multiple periods
Optimised
• Calculates the optimum lot size for a several periods of net requirements
External Procurement
• Purchase Requisition
• Purchase Order
• Schedule Line
Internal Procurement
• Planned Order
• Production Order
• Process Order
Requirements
Planned Order Date
Purchase Requisition
Finished Product
Assembly 1
Semi-Finished Good
Raw Material
Component
Zeit
Whether or not a material is planned using MRP or Consumption Based is determined by the MRP Type on the
MRP1 screen of the Material Master
PD – MRP VB – Reorder-Point
VSD – Seasonal MRP VV – Forecast Based
RP – Replenishment
Lot
Size
Reorder
Point
Safety Stock
Replenishment
Lead Time
MRP
In-House External
Planned Order
Production Procurement
Convert to
Production Purchase
Orders Requisitions
Capacity
Production Planning Schedule
Proposal and Release
(Planning/Other)
Shop Floor
Documents
Order
Settlement
Goods
Issue
Goods
Receipt Completion
Confirmation
Production orders are used to control production operations and associated costs
• Production Orders define the following
Material produced
Quantity
Location
Time line
Work involved
Resources used
How to costs are settled
How
Components
What
How many
Time Line
Calculates the production dates and capacity requirements for all operations within an order
• Determines a Routing
Operation specific time lines
Material Consumption Points
• Material Master
Scheduling Margin Key (Floats)
• Work Center
Formulas
Standard Inter-operation Times
Automatic check to determine whether the component, production resource tools, or capacities in an order are
available
• Can be automatic or manually executed
• Determines availability on the required date
The time between scheduling and releasing an order is used for company checks and any preparation needed
for the processing of the order
Once an order has been released it is ready for execution, we can at this time
• Print shop floor documents
• Execute goods movements
• Accept confirmations against the order
Shop Floor Documents are printed upon release of the Production Order, examples would be:
• Operation-based Lists
Time Tickets, Confirmation Slips
• Component-based Lists
Material Withdrawal Slips, Pull List (consumption list)
• PRT Lists
Overview of PRT’s used and in which operations
• Multi-Purpose Lists
Operation Control Ticket, Object Overview
When a production order is created it references a BOM to determine the necessary components to produce the
material.
Upon release of the order (or operation) you can withdraw the reserved materials from inventory
• Reservation is updated
• Inventory is updated
• Costs are assigned to the order as actual costs
Confirmations are used to monitor and track the progression of an order through its production cycle
• Confirmation can be done at the operation or order level
Exact confirmation shortly after completion of an operation is essential for realistic production planning and
control
Acceptance of the confirmed quantity of output from the production order into stock
Consists of settling the actual costs incurred in the order to one or more receiver cost objects
• Receivers could include: a material, a cost center, an internal order, a sales order, a project, a network, a fixed asset
Settlement Rule
• Automatically assigned on creation of order, the parameters are used to define this rule
Has one or more distribution rules assigned to it
Distribution rules defines: cost receiver, settlement share, settlement type
80 100 20
Costs analyzed
• Primary
Materials
External Processing
• Secondary
Production, Material, and Administrative Overhead
Labor
1) The Functional relationship between Bill of Material (BOM), Routing and Production Version has been changed
to streamline future release/revision process .
2) The ERP Engineering Workbench is not the future target architecture. It will not be updated, but will still work
at a functional level in the system.
3) MRP has been optimized for the SAP HANA real time database and is called MRP LIve. All MRP relevant data
is read directly from the system instead of being stored in a separate table in ERP.
4) Sales & Operations Planning (SOP) is replaced by Integrated Business Planning (IBP).
5) Material Number Field length is extended from 18 characters to 40 characters. This will appeal to many
different customers
Engineering Workbench is not the target architecture anymore and will not receive any further updates
• was used in GBI for BOM and Routings
• required to use alternative UIs, e.g. in Fiori, Web UI or GUI to maintain BOMs and Routings.
Sales & Operations Planning (SOP) replaced by Integrated Business Planning IBP
• Sales & Operations Planning (SOP) is a forecasting and planning tool for setting targets for sales and production based on
historical, current, or estimated data used for long-term strategic planning, not short-term tactical planning
• SOP is often performed on aggregated levels such as product groups and work-center hierarchies.
• IBP supports all SOP features plus
advanced statistical forecasting,
multi-level supply planning,
Collaboration and optimizing tools,
an Excel-based UI, and Web-based Uis
The key capabilities of SAP IBP for Sales & Operations are as follows:
• Future production analytics will be based on SAP HANA, core data services (CDS) views aggregating transactional data
dynamically, and powerful analytical UIs for multi-dimensional reporting. With this, it will be possible to replace the current
logistics information system (LIS).