Put a screen shot of the resulting Actual / Plan / Varian Report from Step 16 and the Production Order number and 3 material document numbers in this submission folder.
CASE STUDY CASE STUDY Production Planning and Execution (PP) This case study explains an integrated production planning and execution process in detail and thus fosters a thorough understanding of each process step and underlying SAP functionality. Product S/4HANA 1809 Global Bike GUI 7.50 Level Undergraduate Graduate Beginner Focus Production Planning and Execution Authors Bret Wagner Stefan Weidner Version 3.3 Last Update May 2019 MOTIVATION The data entry requirements in the production planning exercises (PP 1 through PP 6) were minimized because much of the data already existed in the SAP system. This stored data, known as master data, simplifies the processing of business transactions. Examples for this were material master data, bills of materials, and routings. In this case study, we will create consumption values for a finished product to plan and process a complete manufacturing cycle. PREREQUISITES Before you use this case study, you should be familiar with navigation in the SAP system. In order to successfully work through this case study, it is not necessary to have finished the PP exercises (PP 1 through PP 6). However, it is recommended. NOTES This case study uses the Global Bike data set, which has exclusively been created for SAP UA global curricula. Process Overview Learning Objective Understand and perform a manufacturing process cycle. Scenario In order to experience a complete manufacturing process you will take on different roles within the Global Bike Group, e.g. production supervisor, shop floor worker and plant manager. Overall, you will be working in the Materials Management (MM) and the Production Planning and Execution (PP) departments. Employees involvedJun Lee (Production Supervisor) Hiro Abe (Plant Manager Dallas) Lars Iseler (Production Order Worker) Susanne Castro (Receiving Clerk) Sanjay Datar (Warehouse Employee) Michael Brauer (Shop Floor Worker 4) Jamie Shamblin (Cost Accountant) Time 140 min Before you can start forecasting demand for your touring bike product group, changes in the material master record of the bikes needs to be maintained. Afterwards you will create a 12-month sales and operations plan (SOP) for your product group, receive the production relevant goods from the warehouse storage location and issue them to the production order. To conclude the process, the production is confirmed as complete, the finished goods are received into the warehouse and costs assigned to the production order are analyzed. Table of Contents Process Overview2 Step 1: Change Material Master Record4 Step 2: Change Routing7 Step 3: Display Product Group10 Step 4: Create Sales and Operations Plan12 Step 5: Transfer SOP to Demand Management17 Step 6: Review Demand Management19 Step 7: Run MPS with MRP21 Step 8: Review Stock/Requirements List24 Step 9: Convert Planned Order into Production Order27 Step 10: Receive Goods in Inventory29 Step 11: Issue Goods to Production Order31 Step 12: Review Production Order Status34 Step 13: Confirm Production Completion36 Step 14: Receive Goods from Production Order38 Step 15: Review Costs Assigned to Production Order40 Step 16: Settle Costs of Production Order41 PP Challenge45 Step 1: Change Material Master Record Task Prepare a material master record for Demand Planning. Short Description In order to plan Global Bike’s deluxe touring bikes (black, silver and red) prepare their material master records by changing the MRP 3 and Forecast view. Name (Position) Jun Lee (Production Supervisor) Time 20 min To change a material’s view, follow the menu path: Logistics ► Production ► Master Data ► Material Master ► Material ► Change ► Immediately Menu path In the Material field, find and select your red Deluxe Touring bike first. If you do not remember its material number, position your cursor in the Material field and click on the search icon or press F4. Make sure you are on the Material by Material Type tab. Select Material Type Finished Product (FERT) and enter *### in the Material field. Remember to replace ### by your three-digit number given by your instructor, e.g. *005 if your number is 005. Then, press Enter and select the red Deluxe Touring bike with a double click. F4 Finished Product *### When your material number (DXTR3###) is entered in the Material field, click on or press Enter. DXTR3### On the following pop up, select MRP 3 and Forecasting. Then, press Enter or click on . MRP3 Forecast Enter in the following pop up as Plant DL00 (Dallas) and as Stor. Location FG00 (Finished Goods). Then click on Enter or on DL00 FG00 In the MRP3 tab, enter Strategy group 40 (Planning with final assembly), Consumption mode 1 (Backward consumption only) and Bwd consumption per. 30. Press Enter to continue to the Forecasting tab. 40 1 30 If the following warning message shows up, press Enter again. On the Forecasting tab, select Initialization pds 12, uncheck Reset automatically, check Param.optimization, select Optimization level F (Fine), Alpha factor 0.20, Beta factor 0.10, Gamma factor 0.30, and Delta factor 0.30. Compare your entries with the screen capture shown below. 12 Reset automatically Param.optimization F 0.20 0.10 0.30 0.30 Historic consumption values already have been entered into the Global Bike system. You can view them on the Forecasting tab, select . If you do not see the Total consumption column, press on . Within the table you will see the Corrected Total Consumption for the periods 04.2014 to 03.2018. These values form the base for later forecasts within this case study. Please note that within a productive system these values would have been updated based on the goods moved out of the warehouse. Click on to return to the overview. Click on to save your entries for the red bike. Repeat the same procedure for the silver and the black deluxe touring bike material master. Start with the silver bike (DXTR2###), then modify the black bike (DXTR1###). DXTR2### DXTR1### Click on to return to the SAP Easy Access screen. Step 2: Change Routing Task Change a routing for a finished good. Short Description Change the routing for your red Deluxe Touring bike. Name (Position) Jun Lee (Production Supervisor) Time 15 min After the operational steps are defined, the components that make up the bikes must be allocated to the individual operations. This is a progressive process where each operation builds off the materials that were used in production during a previous operations. Component allocation To change a routing, follow the menu path: Logistics ► Production ► Master Data ► Routings ► Routings ► Standard Routings ► Change Menu path Enter the material number for your red Deluxe Touring bike (DXTR3###). In the Plant field, enter Global Bike’s Dallas plant number (DL00). Please ensure that the Group field is empty. Then, press Enter or click on . DXTR3### DL00 Note: A routing can be defined using the routing group and group counter. Moreover, the routing contains reference to the material whose production it describes, and, in addition to the standard sequence, can contain parallel or alternative sequences. Alongside the standard values, the routing also contains the time elements that are relevant for scheduling operations. Each operation in the routing may contain its own base quantity, to which these time elements may refer. Choose and select the materials TRFR3### as well as TRSK1###. Afterwards, choose . TRFR3### TRSK1### In the following pop up, click .Choose operation 0020 and press Enter. Back on the Material Component Overview screen, you see that now both components have been assigned to operation 0020. 0020 Repeat the same process for the other components and assign them to operations as shown below. Component Operation TRHB1### (touring handle bar) 0030 TRWA1### (touring aluminum wheel assembly) 0040 DGAM1### (derailleur gear assembly) 0040 CHAN1### (chain) 0050 BRKT1### (brake kit) 0060 PEDL1### (pedal assembly) 0070 WDOC1### (warranty document) 0100 PCKG1### (packaging) 0100 TRHB1### TRWA1### DGAM1### CHAN1### BRKT1### PEDL1### WDOC1### PCKG1### Save your entries with . Click on to go back to the SAP Easy Access Menu. Step 3: Display Product Group Task Display a product group. Short Description Display the product group (product family) for all your Deluxe Touring bikes. Name (Position) Jun Lee (Production Supervisor) Time 5 min A product group (product family) supports high-level planning. This way, it is not necessary to delve into the minutia of creating planning forecasts for every material in the company. Product group To display the deluxe touring bike product group, follow the menu path: Logistics ► Production ► SOP ► Product Group ► Display Menu path In the Display Product Group: Initial Screen, in the Product group field find and select your group for deluxe touring bikes. In order to do so, press the search icon (or pressed F4), enter ###* in the Material description field. Remember to replace ### with your three-digit number, e.g. enter 009* if your number is 009. Enter DL00 as Plant. Then, press Enter or click on to display the search results. You should see ten product groups already defined for your set of material master data (compare with the screen shown below). ###* DL00 Double-click on the line for deluxe touring bicycles to select the group. Now that the correct product group (PG-DXTR###) is filled in, make sure Plant DL00 is selected as well. Then, press Enter to display the product group details. PG-DXTR### DL00 On this screen you can see that this product group defines proportions for three different bikes: the black, silver and red deluxe touring bike. For the black bike a share of 40% will be considered and 30% for the silver and the red bikes each. Click on to return to the SAP Easy Access screen. Step 4: Create Sales and Operations Plan Task Create a sales and operations plan for a product group. Short Description Create a 12-month sales and operations plan (SOP) for your product group. Name (Position) Jun Lee (Production Supervisor) Time 20 min A sales and operations plan (SOP) is a planning tool used to consolidate data for forecasting future sales and production levels as well as the methods needed to meet those requirements. In this task, our SOP will be based on historical consumption values taken from a fixed period. This is in contrast to forecasting within a real-life system which would base the prediction on previous periods and their respective consumption. Sales and operations plan To create an SOP, follow the menu path: Logistics ► Production ► SOP ► Planning ► For Product Group ►