Jawad Akhtar works as the SAP Leader for Business Sales and Delivery at IBM Pakistan. He earned a chemical engineering degree from Missouri University of Science and Technology (USA) in 1996. He has more than 18 years of professional experience and has completed several large-scale SAP implementations and rollout lifecycles. He has led large teams in his roles as an SAP integration manager and SAP project manager, and has also been proactively involved in business development and solution architect roles. He is the technical advisor to SAPexperts and is a prolific contributor to SearchSAP, where he shares his views on logistics, supply chain management (SCM), product lifecycle management (PLM), and project management.

You can view his profile on LinkedIn at [...] You can also contact Jawad via email at jawad.[...] or Twitter [...]

Configure master data, manufacturing profiles, work centers, and more

... Acknowledgments ... 25

1 ... Production Planning Core Concepts ... 27

1 ... Introduction ... 29

... Goals of This Book ... 29

... Target Audience ... 30

... Structure and Content ... 31

... Organizational Structures in SAP ERP ... 35

... Breaking Down the Structure into Units ... 35

... Production Planning in SAP ERP ... 44

... Product Costing ... 59

... SAP Calendar ... 61

... Summary ... 66

... Configuration Specifics for Manufacturing Types ... 67

... Configuration Basics of Discrete Manufacturing ... 69

3.1 ... Material Master ... 70

3.2 ... Bill of Materials ... 72

3.3 ... Work Center ... 78

3.4 ... Routing ... 87

3.5 ... Production Order Creation ... 89

3.6 ... Order Type-Dependent Plant Parameters ... 94

3.7 ... Production Scheduling Profile ... 99

3.8 ... Default Values for the Generation of Operations ... 101

3.9 ... Availability Check ... 102

3.10 ... Stock and Batch Determination ... 108

3.11 ... Scheduling ... 108

3.12 ... Reduction Strategy ... 114

3.13 ... Confirmation ... 115

3.14 ... Reason for Variances ... 124

3.15 ... Trigger Points ... 125

3.16 ... Define Print Control ... 126

3.17 ... Background Jobs ... 127

3.18 ... Process Integration ... 128

3.19 ... Summary ... 128

... Configuration Basics of Process Manufacturing ... 129

4.1 ... Master Data in Process Industries ... 130

4.2 ... Order Type-Dependent Parameters ... 134

4.3 ... Production Scheduling Profile ... 136

4.4 ... Process Management ... 138

4.5 ... Process Messages ... 143

4.6 ... Process Instruction Category ... 150

4.7 ... Control Recipe/Process Instruction Sheets ... 164

4.8 ... Background Jobs ... 169

4.9 ... Process Management Configuration: At a Glance ... 171

4.10 ... Process Management: Configuration and Implementation Roadmap ... 172

4.11 ... Process Manufacturing Cockpit ... 174

4.12 ... Summary ... 177

... Configuration Basics of Repetitive Manufacturing ... 179

5.1 ... Repetitive Manufacturing Profile ... 180

5.2 ... Scheduling Planned Orders ... 192

5.3 ... Display ... 193

5.4 ... Material Staging ... 195

5.5 ... Global Settings for Confirmation and the Logistics Information System ... 196

5.6 ... Operational Methods Sheet ... 197

5.7 ... Summary ... 198

3 ... Production Planning Workflow by Production Type ... 199

... Production Planning for Discrete Manufacturing ... 201

6.1 ... Process Overview ... 202

6.2 ... Master Data ... 203

6.3 ... Production Order Management ... 243

6.4 ... Release Production Order ... 265

6.5 ... Printing ... 268

6.6 ... Material Withdrawal ... 271

6.7 ... Confirmation ... 278

6.8 ... Goods Receipt ... 285

6.9 ... Postprocessing ... 288

6.10 ... Settlement and Completion ... 292

6.11 ... Production Order Batch Traceability Using Work in Process Batches ... 293

6.12 ... Additional Functions and Information Systems ... 304

6.13 ... Summary ... 309

... Production Planning for Process Industries ... 311

7.1 ... Process Manufacturing Overview ... 312

7.2 ... Master Data in Process Manufacturing ... 314

7.3 ... Process Management ... 327

7.4 ... Process Order Execution ... 341

7.5 ... Process Management in Action ... 343

7.6 ... Execution Steps (XSteps) ... 354

7.7 ... Process Manufacturing Cockpit ... 367

7.8 ... Process Messages Evaluation ... 368

7.9 ... Miscellaneous Cross-Manufacturing Topics ... 370

7.10 ... Summary ... 371

... Production Planning for Repetitive Manufacturing ... 373

8.1 ... Overview ... 374

8.2 ... Repetitive Manufacturing Master Data ... 377

8.3 ... Material Requirements Planning in Repetitive Manufacturing ... 400

8.4 ... Collective Availability Check ... 404

8.5 ... Operational Method Sheet ... 405

8.6 ... Planning Table in Repetitive Manufacturing ... 406

8.7 ... Material Staging ... 414

8.8 ... Production List ... 419

8.9 ... Confirmation ... 421

8.10 ... Reversals and Scrap ... 430

8.11 ... Collective Confirmation ... 435

8.12 ... Costing Activities (Cost Object Controlling) ... 436

8.13 ... Reporting ... 437

8.14 ... Summary ... 438

4 ... Production Planning Workflow Tools ... 441

... Sales and Operations Planning ... 443

9.1 ... Standard Sales and Operations Planning ... 444

9.2 ... Flexible Planning ... 467

9.3 ... Maintaining Version Management ... 492

9.4 ... Forecasting ... 495

9.5 ... Rough-Cut Planning Profile ... 502

9.6 ... Events ... 507

9.7 ... Mass Processing in Sales and Operations Planning ... 513

9.8 ... Standard Analysis in Flexible Planning ... 517

9.9 ... Summary ... 520

... SAP Demand Management ... 521

10.1 ... Planning Strategy ... 522

10.2 ... Planned Independent Requirements ... 531

10.3 ... Customer Independent Requirements ... 536

10.4 ... Summary ... 544

... Material Requirements Planning ... 545

11.1 ... Process Overview ... 546

11.2 ... Scrap ... 561

11.3 ... Safety Stock ... 564

11.4 ... Material Requirements Planning Procedures ... 567

11.5 ... Consumption-Based Planning ... 572

11.6 ... Forecast-Based Consumption Planning ... 577

11.7 ... Types of Planning Runs ... 581

11.8 ... Scheduling ... 585

11.9 ... Procurement Proposals ... 591

11.10 ... Executing Material Requirements Planning ... 597

11.11 ... Configuration Settings for Material Requirements Planning ... 605

11.12 ... Material Requirements Planning Run Analysis ... 610

11.13 ... Planning Calendar ... 621

11.14 ... Material Requirements Planning Areas ... 623

11.15 ... Summary ... 631

... Long-Term Planning ... 633

12.1 ... Long-Term Planning Master Data and Planning Data ... 634

12.2 ... Long-Term Planning: Business Process ... 639

12.3 ... Further Options in Long-Term Planning ... 647

12.4 ... Evaluate Information Systems for Long-Term Planning ... 654

12.5 ... Summary ... 659

5 ... Optimizing Production Planning ... 661

... Special Procurement Types ... 663

13.1 ... Overview ... 664

13.2 ... Phantom Assembly ... 666

13.3 ... Direct Production ... 667

13.4 ... Direct Procurement ... 672

13.5 ... Stock Transfer (Interplant Transfer) ... 676

13.6 ... Withdrawal from Alternate Plant ... 679

13.7 ... Production in Alternate Plant ... 681

13.8 ... Subcontracting ... 683

13.9 ... Consignment ... 688

13.10 ... Pipeline Material ... 691

13.11 ... Summary ... 691

... Capacity Requirements Planning ... 693

14.1 ... Process Overview ... 694

14.2 ... Capacity Requirements and Capacity Evaluation ... 696

14.3 ... Finite Scheduling ... 711

14.4 ... Dispatching ... 713

14.5 ... Capacity Planning Table ... 730

14.6 ... Summary ... 737

... Classification ... 739

15.1 ... Classification System ... 740

15.2 ... Assigning the Material Class to the Material Master ... 746

15.3 ... Finding Objects in Classes ... 749

15.4 ... Assigning an Equipment Class to Equipment ... 751

15.5 ... Summary ... 754

... Co-Products and By-Products in Production Processes ... 755

16.1 ... Check in Material Master ... 757

16.2 ... Bill of Materials ... 760

16.3 ... Process Order ... 762

16.4 ... Goods Issue ... 764

16.5 ... Confirmation ... 766

16.6 ... Goods Receipt ... 768

16.7 ... Documented Goods Movement ... 770

16.8 ... Cost Analysis ... 771

16.9 ... Summary ... 773

... Digital Signature ... 775

17.1 ... Configuration Steps to Set Up a Digital Signature ... 776

17.2 ... Digital Signature in Action ... 783

17.3 ... Digital Signature Logs ... 788

17.4 ... Application of Digital Signature in SAP ERP Components ... 789

17.5 ... Summary ... 791

6 ... Monitoring and Evaluation ... 793

... Early Warning System ... 795

18.1 ... Overview ... 795

18.2 ... Exceptions ... 797

18.3 ... Set Up Periodic Analysis ... 804

18.4 ... Schedule an Early Warning System ... 806

18.5 ... Early Warning System in Action ... 808

18.6 ... Exception Analysis ... 811

18.7 ... Summary ... 814

... Reporting in SAP ... 815

19.1 ... The Basics of Reporting ... 816

19.2 ... Order Information System ... 818

19.3 ... Missing Parts Information System ... 833

19.4 ... Standard Analysis Reports ... 834

19.5 ... Data Browser ... 843

19.6 ... QuickViewer ... 848

19.7 ... SAP Query ... 852

19.8 ... Assign a Transaction Code to a Query ... 855

19.9 ... Summary ... 856

... Integration of Production Planning with Logistics Functions ... 857

20.1 ... Integration Prerequisites ... 858

20.2 ... Integration Aspects of Production Planning with Quality Management ... 860

20.3 ... Integration of Production Planning with Materials Management ... 875

20.4 ... Integration of Production Planning with Sales and Distribution (Make-to-Order Production) ... 882

20.5 ... Integration of Production Planning with Sales...