Let’s move on to Work Centers, another component for the Product Master Record.
Work Centers are used in the following applications:
- Routings (Production Planning)
- Networks (Project System)
- Inspection plans (Quality Management)
- Maintenance routings (Enterprise Asset Management)
A work center is generally a specific geographical location in the plant. For example, a specific machine or department in a plant.
As we also need to define "who" is doing the work, we need to create work centers. A work center in SAP S/4HANA could be a person, a group of persons, a machine, a group of machines or the combination of both.
A work center is where an operation or an activity is carried out in a plant. It therefore specifies where production ultimately takes place.
Let’s discuss 2 Work Center topics in detail, capacities and costing.
Work Center Capacities
The available capacity of the work center and the data needed to calculate the costing of work completed is stored in the work center. The default values define data that has to be transferred into the operation of the routing or are used as a reference.
The capacities that are available to a work center are explicitly specified in the work center. In this case, you may certainly use more than one capacity for each work center. For example, you can assign both machine capacity and labor capacity to a work center.
Work Centers contain the available working time. Moreover, formulas specify how long the capacities will be loaded by a certain operation.
Work Center Costing
Since the work center provides working time, it also generates internal costs for labor. To calculate the costs, the work center is assigned to a cost center. As we have heard in the Controlling section, a cost center provides different output. This output is named activity type. To differentiate labor processing time, machine time, and setup time related to different costing rates, we assign the different activity types to the work center in the costing tab.