This all-new, extended second edition provides readers with a detailed introduction to the tasks associated with industrial operations as well as highly detailed descriptions of the core processes of SAP PP (mySAP ERP 2005 Release). The various processes of discrete manufacturing are explained clearly in the following contexts: What are the business requirements? How can they be implemented using SAP? Which configuration steps are necessary and what are their effects? With step-by-step instruction and detailed, expert guidance, this book enables you to successfully implement and apply SAP PP in your own company. You’ll also benefit from exclusive content devoted to exploring possible scenarios and the vast potential of mySAP SCM (APO) integration.

The book is intended for consultants, implementation project teams, and employees involved in production. In addition, numerous real-world examples and a comprehensive glossary make this book a must-have reference.

Highlights

• Industrial Operations Tasks
• Production Planning and Control in mySAP ERP
• Organizational Structures
• Master Data
• Sales and Operations Planning
• Demand Management
• Material Requirements Planning
• Long-Term Planning
• Production Order Creation
• Capacity Requirements Planning
• Production Execution
• Supply Chain Management and Integration with SAP APO

About the Author(s)

Dr. Jörg Thomas Dickersbach works as a Solution Architect for SCM at SAP AG. Dr. Gerhard Keller is a shareholder and partner at Bonpago GmbH, Germany, and works in the discrete manufacturing and financial services industries. Klaus Weihrauch is a responsible project manager in the area of Best Practices for mySAP SCM at SAP AG.

Table of Contents

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