Configuring Make-to-Order Production – Semifinished Goods Planning and Assembly (1BM)

You use this configuration item to define a number that is assigned to the MRP controller. The MRP controller is a person or a group of persons responsible for monitoring material availability. You can use the number entered here, for example, to select the planning results per MRP controller. Every material that is relevant to the planning run must be assigned an MRP controller number in the material master record.

Define a number that is assigned to the MRP controller.

You use this configuration item to edit and check the lot-sizing procedure. You use the lot-sizing procedure to determine how the system is to calculate the reorder quantity in the planning run. The planning run executes the materials planning for all materials or assemblies that have the necessary entries in the planning file. A lot size defining the lot-sizing procedure is assigned to every material master record applicable to materials planning. The lot size is defined in the configuration by the combination of the lot-sizing procedure and the lot-size indicator.

Three procedures for lot sizing are available:

• Static lot-sizing procedures
• Period lot-sizing procedures
• Optimizing lot-sizing procedures

Note

You use the lot-size indicator to define the procedure.

The following parameters are also available for controlling the lot-sizing procedure:

• Scheduling indicator

  For period lot sizes, you can use the indicator for scheduling to determine which of the following applies to the availability date:

  • It is to be set to the first requirements date in the period
  • It is to be set to the beginning of the period
  • It is to be set to the end of the period
  • The period start represents the beginning of the planned order and the period end represents the availability date (repetitive manufacturing)
• Interpretation of the delivery times
  • For the lot-sizing procedure, you can also define whether the period start is to be interpreted as the delivery date or as the availability date using the indicator, interpretation of the calendar times.
  • Note

    The Scheduling and Interpr.deliv.times indicators are mutually exclusive.
• Indicator for the splitting quotaFor the quota arrangements, you can determine whether the requirements quantities are to be distributed to several items, that is, whether they are to be split. With the splitting quota arrangement, requirement quantities are not simply allocated to the smallest quota rating. Instead, they are distributed among various sources using the following formula:

  Quantity for source of supply X = (Quota of source X * reqmts quantity): (Sum of all quotas)

• Overlapping indicator

  The overlapping indicator along with the cycle time in the material master record are used to split the planned orders into several partial quantities whereby the in-house production time overlaps by the cycle time.

• Lot-sizing procedure for make-to-order production

  In make-to-order production, you can use the Lot size for make-to-order production indicator to determine whether:

  • The order quantity is to be calculated using the exact lot size
  • The order quantity is to be calculated using the exact lot size and the system is also to take the rounding quantity or the minimum and maximum lot size into account
  • The order quantity is to be calculated using the lot-sizing procedure defined for the short-term area
• Maximum stock level variant

  The system only displays the maximum stock level variant field in the lot-sizing procedure, Replenishing to maximum stock level. The indicator only has an effect in connection with reorder point planning taking external requirements into account and in connection with material requirements planning and controls how the system calculates lot sizes.

In the SAP standard system, the lot-sizing procedures are preset.

SAP recommends that you use the lot-sizing procedures in the standard system.

• If necessary, adjust the number of periods for the period lot size to the SAP standard delivery.
• If you are using reorder point planning taking external requirements into account, check how the system is to calculate lot sizes using the lot-sizing procedure, Replenish to maximum stock level, and enter the appropriate indicator in the Maximum stock level variant field.
• If necessary, define new lot-sizing procedures.
• If necessary, maintain further parameters.

You use this configuration item to define the special procurement keys that, in addition to the procurement type, control the procurement and storage of a material. The special procurement type always refers to a procurement type. You can also define how the system treats the material as a component during the BOM explosion using control indicators.

The procurement type external procurement is defined for raw materials. If a material is to be procured via a consignment order, you assign the special procurement type consignment to the material in the material master record.

• A material appears in several BOMs as a component because it is assembled in finished products in in-house production. It is procured from an alternative plant if no dependent requirements exist for the material.
• The same material, on the other hand, is also sold from stock to customers, who need the material as a replacement part, for example. In this case, the material can be procured by stock transfer because with planned independent requirements (customer requirements, in this case), procurement you cannot use withdrawal from an alternative plant.
• You can do this by creating a special procurement key using the stock transfer special procurement type and by selecting the indicator for withdrawal from alternative plant. You assign this special procurement key to the appropriate material in the material master record.

The following special procurement types are defined in the SAP standard system:

• For the procurement type, in-house production
  • Phantom assembly

    A phantom assembly is a logical grouping of materials. These materials are grouped and managed together for a certain reason (for example, from the engineering point of view). However, a phantom assembly is not actually produced. Therefore, phantom assemblies pass the dependent requirements directly to the lower BOM level.

  • Production in another plant

    In this type of special procurement, material components are produced in a plant other than the planning plant.

    If you want to use this special procurement type, you must maintain a special procurement key by choosing planning plant → production plant for each relationship.

  • Withdrawal in alternative plant
    • In this type of special procurement, the material components are withdrawn in a different plant to the planning plant.
    • If you want to use this special procurement type, you must maintain a special procurement key per planning plant → withdrawal plant relationship.
    • This special procurement key is used to displace the stocking level of a BOM. If you use the planning strategy planning without final assembly, the system only assembles the assemblies that lie one BOM level below the finished product before any sales order has been received. If you want the stocking level to be even further down the BOM structure, the components receive the special procurement key 'Phantom in planning'. Assemblies with this special procurement key are not assemblies until sales orders at finished product level actually exist.
• For the procurement type 'External procurement'.
  • Consignment

    You use this special procurement key to carry out consignment processing for a material. Consignment is a business process in which the vendor provides material at the customer. The costs are incurred by the vendor.

  • Subcontracting
    • You use this special procurement type to carry out subcontracting with a material.
    • In subcontracting, components are staged at an external vendor and are used to produce the required assemblies.
  • Stock transfer
    • Here, materials are ordered from the receiving plant and are delivered by the delivering plant. The requirement is determined in the receiving plant.
    • If you want to use this special procurement type, you must maintain a special procurement key per receiving plant → delivering plant relationship.
  • Withdrawal in an alternative plant
    • In this type of special procurement, material components are withdrawn from a different plant to the planning plant.
    • If you want to use this special procurement type, you must maintain a special procurement key per planning plant → withdrawal plant relationship.

Checking the special procurement key

If you want to procure a material that is a BOM component in a way other than those in the standard special procurement types, you can define a special procurement type by selecting the following fields:

• If you select Phantom item, the system uses a phantom assembly in the BOM explosion for a material that is used as a component in a BOM, regardless of which type of special procurement has been set. The phantom assembly characteristics can be combined with any other special procurement type.
• If you select Withdrawal from an alternative plant, the system procures a material that is used as a component in a BOM by withdrawing it from an alternative plant. This only occurs if dependent requirements exist and is not dependent on the special procurement type defined.

If you use storage location MRP and production or procurement is carried out directly for the storage location, you must create the following special procurement key:

• In-house production (procurement type 'E', special procurement 'E')
• External procurement (procurement type 'F', special procurement blank)

The special procurement type is assigned in the material master record per material.

You use this configuration item to define the MRP areas for subcontractors. An MRP area represents an organizational unit for which you can perform material requirements planning separately. In this step, you can define the MRP areas for subcontractors. By using subcontracting MRP areas, you can define single subcontractors that are planned separately during MRP planning.

There are three types of MRP areas:

• Type 01 for Plant

  You define this kind of MRP area in the Define MRP Areas for Plant/Storage Locations step.

• Type 02 for Storage Locations

  You define this kind of MRP area in the Define MRP Areas for Plant/Storage Locations step.

• Type 03 for Subcontractors

  You choose this type if you would like to define an MRP area for a subcontractor. You can only assign one subcontractor to an MRP area of the subcontractor type. You do not have to create a corresponding MRP area segment in the material master record of the components. The assignment happens implicitly based on the existence of the MRP area for the subcontractor.

If you do not create a corresponding MRP area segment in the material master record, the MRP covers all requirements in the subcontracting MRP area by stock transfer reservations from the plant MRP area using a lot-for-lot lot sizing procedure.

If more sophisticated planning is required for the subcontracting MRP area (for example, special requirements regarding lot-sizing or special procurement processes like third-party procurement), you need to create a corresponding MRP area segment in the material master record.

• When a new material master record is created for a component, the planning file entry* is created automatically in the MRP area for the subcontractor.
• If material master records already exist for the components, you need to start the Create Planning File Entries app so that the planning file entry can be created in the MRP area for the subcontractor.

To define a new subcontracting MRP area, proceed as follows:

1. In the MRP area overview, choose New Entries.
2. Enter a number and description of the MRP area. You can enter an alphanumeric number for the MRP area, but it must contain at least five characters.
3. Enter the plant.
4. Choose Subcontractor to assign the subcontracting vendor to the subcontracting MRP area.
5. Assign a subcontractor to an MRP area by entering the supplier number in the Subcontr. field.
6. Save the entries and choose Back.

Note

New entries in the quality system (Q system) won't be transported into the production system (P system). This means you have to enter your new entries manually in the P system.

You use this configuration item to define the MRP areas for plant and storage locations. An MRP area represents an organizational unit for which you can perform material requirements planning separately. In this step, you can define the MRP areas for plants and storage locations. By using storage location MRP areas, you can define single storage locations or groups of storage locations that are excluded from MRP planning on plant level or that have to be planned separately.

There are three types of MRP areas:

• Type 01 for Plant
  • The plant MRP area initially contains the plant together with all its storage locations and stock with subcontractors.
  • When you have defined MRP areas for storage locations and you have assigned the materials, the plant MRP area is reduced by exactly this number of storage locations, as they are now going to be planned separately.
  • If you have not assigned a material to a storage location MRP area, that is, you have not created an MRP area segment in the material master record, the material will continue to be planned in the plant MRP area.
  • If you have defined MRP areas for subcontractors, it is not necessary to assign the materials to the MRP area. The assignment happens implicitly based on the existence of the MRP area for the subcontractor. The plant MRP area is reduced by exactly this number of subcontractors, as they are now going to be planned separately.
• Type 02 for Storage Locations
  • You choose this type for MRP areas that consist of one or more storage locations. A storage location can only be assigned to one MRP area. You also need to enter a storage location as a receiving storage location. This storage location must, however, belong to the MRP area.
  • Create a corresponding MRP area segment in the material master record.
• Type 03 for Subcontractors

  You define this kind of MRP area in the Define MRP Areas for Subcontractors step.

To define a new MRP area, proceed as follows:

1. In the MRP area overview, choose New Entries.
2. Enter a number and description for the MRP area. You can enter an alphanumeric for the MRP area, but it must contain at least five characters.
3. Enter the MRP area type, the plant, and the receiving storage location (based on the MRP area type).
4. Navigate to the dependent view to define the dependent object for the relevant MRP area. Choose Assign storage locations if you want to define an MRP area of the type storage location.
5. Assign one or several storage locations to an MRP area of the type storage location.
6. Save the entries and choose Back.

You specifically want to plan the requirements for components of an assembly line. To do this, you define an MRP area of the type storage location and assign the storage location from which you are taking the components that are required on the line.

You use this configuration item to assign material types to task list types to enable the creation of routings for materials of this type.

SAP recommends using the assignments contained in the standard SAP system. Only make new assignments if the standard assignments do not cover all of your needs. For task list type Q (inspection plan), only the standard material types FERT, HALB, ROH, and HAWA are available.

Check the assignments of material types to task list types. If needed, assign new material types to the task list types.

You use this configuration item to define several selection priorities for every selection ID. You assign the selection criteria to every priority. The system automatically selects a task list that matches the selection criteria.

Selection criteria are, for example:

• Task list type
• Task list usage
• Task list status

If no alternative task list can be found, the system continues the search using the selection criteria assigned the next lowest priority.

Note

In shop floor control, the selection ID is defined for each order type in the order-dependent parameters.

Define the following for every selection ID:

• Selection priority
• Task list type
• Task list usage
• Task list status

You use this configuration item to assign orders to order types. You have to assign every order to an order type. The order category (= 40, process order) is a fixed setting and cannot be changed. The order categories are predefined in the SAP system and characterize the technical properties of the orders. The order category defines, for example, the transactions you can use to process an order.

The order type defines the following:

• Order residence time

  You define how long completed orders remain in the SAP system before they are archived.

• Status management

  An order can run through several statuses*. The status controls which business-related operations* are permitted with an order.

• Number assignment

  You have to assign a number range to each order type. If you create a new order type by copying an existing one, you can either keep the number range assignment or choose a different one.

Note

In addition to the general order parameters at client level, there are also parameters at plant level, which you can process in the configuration step under Shop Floor Control → Master Data for Process Manufacturing → Define Order-Type-Dependent Parameters.

Order types are preset in the standard delivery of the SAP system.

1. Classify the orders with regard to their defining characteristics (for example, order category or number range).
2. For each order category, define whether you want to use status management.
3. If necessary, define your own order types. To do so, copy an existing order type and adjust the data as necessary.

You use this configuration item to define the parameters that are valid for each order type and plant.

The parameters are split up as follows:

Here, you define the data that influences master data selection or order master data maintenance. The screen contains the following indicators:

• The production version defines if the production version is selected automatically or manually.
• The recipe selection ID defines the priorities according to which the recipe is selected.
• You can activate the entry tool for operations to help you when you create operations.

• General
  • Substitute MRP controller/substitute production supervisor. These are proposed when you create process orders if an MRP controller or production supervisor are not specified in the material master, or if there is no reference to material.
  • Reservation/Purch.Req. specifies whether certain order objects (operations, components) are relevant to MRP.
  • Collective requisition enables collective purchase requisition per order for externally processed operations or non-stock items.
• Bill of Material
  • Application defines how the BOM alternatives are selected.
  • Batch determination
  • Search procedure defines how batch determination is to take place.
• Quality Inspection

  Inspection type defines how a quality inspection is to be carried out.

• Status Change Documents
  • Here, you define whether you want change documents to be written if a status change occurs. You also define the level at which the change documents are written:
  • A status change document documents the following:
    • Which status has been changed
    • Who changed the status
    • Whether the status has been activated or deactivated
    • In which transaction the status change has been carried out
  • In the process order*, you can define the status at the following levels:
    • Order header
    • Operation
    • Material component
• Status change documents can thus be defined independently of each other, at each of these four levels.
  Note

  If you have defined these parameters such that status change documents are written for a particular order level, the SAP System only writes a status change document for a status change from this point in time if the order (or operation/component) has been created since the status change documents have been activated.
• Documentation of Goods Movements

  You can specify that goods movements are to be documented with reference to an order.

• Cost Accounting

  Here, you define the parameters relevant for cost accounting, such as costing variants for planned and actual costs and a results analysis key.

• Distribution Role

  Default (distribution) role defines an automatically generated distribution role for CO settlement.

You use this configuration item to create production scheduling profiles for specific plants.

In a production scheduling profile, you can:

• Specify that certain business transactions or processes are to be carried out in parallel in a production or process order
  • Order release at the time the order is created
  • Generation of document link from the material master when the order is created
  • Generation of document link from a BOM when the order is created
  • Scheduling upon order release
  • Generation of document link from the material master upon order release
  • Generation of document link from a BOM upon order release
• Specify whether only partial quantities are to be confirmed at the time of an availability check
• Specify that an automatic goods receipt is to take place
• Specify that in the case of the confirmation:
  • No short quantities are to be updated
  • No excess quantities are to be updated
  • Neither short nor excess quantities are to be updated
  • An adjustment of the operation and component quantities to the actual values is to take place
• Make various specifications in the area of batch management:
  • Automatic batch creation when an order is opened
  • Branching to batch classification when a batch is changed
  • Extended batch classification via Customer Function Call
  • Generation of a batch split record in the production order for each batch that is found
• Specify settings regarding transport:
  • Specify that only transport requirements are to be created if transport requirements can be generated for all the components of the operation
  • Specify that either the committed quantities or the required quantities are to be taken into account when transport requirements are generated
  • Specify that the creation of transport requirements is to take place automatically
• Specify which order type is to be suggested depending on the business process
• You can assign a production scheduling profile to a:
  • Material (Work Scheduling screen in material master)
  • Production supervisor

Note

• The assignment to a material takes higher priority.
• The production scheduling profile is adopted in the production or process order at the time the order is opened.

1. Create the necessary production scheduling profiles.
2. Assign the profiles to the appropriate materials or production supervisors.

You use this configuration item to define the production supervisors for your plants. In addition, you can assign a control profile to each production supervisor. By assigning production supervisors to materials within the application, you can define responsibilities for a material within production activity control.

1. Create your production supervisors.
2. If necessary, assign profiles to your production supervisors.

In this configuration item, you can define task list usages to assign routing to various work areas. You can create several task lists with various usages for the production of a material. In work orders, you can assign order types* to usages. The system uses the usage in an order for automatic task list selection.

You can specify that a routing is to be used only for Plant Maintenance or for goods receipt.

Define task list usages.

You use this configuration item to define a collection of default values for task list headers and operations.

You can minimize the maintenance of task list data as follows:

• Data from the material master is proposed
• Data from the work center can be referenced or copied
• Data from the profile is proposed

You can enter a profile in routing maintenance. The values from this profile are proposed when you create a new routing or routing object, such as a header or an operation. This data can either be saved or overwritten.

The profile contains default values for the status or for the operation increment.

Note

The values you maintained in the material master or the work center will be proposed before any values from the profile.

1. Determine the default values that can reduce the amount of maintenance work in your company.
2. If necessary, define several profiles.
3. Maintain the default values for routing maintenance.