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SAP University Alliances - e4s - Production: Production Process

Step 3

 

Production Planning enables the production within a plant to be planned while, at the same time, taking product and capacity constraints into account. The goal is to increase throughput and to reduce product stock. This results in a feasible master production schedule.

A. Instructions

The following video (powered by Datango) is an example only. Please click on the "Change planning order into production order" link:

Video Demo: Change planning order into production order

 

B. The Situation

You are listening to a chat between a staff member/colleague and a trainee.

Member of Staff:

"You have learned how the production for making the tables works and how you have to input the master data into the SAP-system. I will now describe how we transform this process in our administration.

Assuming, there is a customer's order for 20 tables coming in.

As soon as the client's order has been transferred into the SAP-system and the purchasing department carries out the disposition, a purchase requisiton and an purchase order is created.

Besides the purchase requistition we have to create a planned order. This planned order goes to the production respectively is worked on further by the production department. The planned order is the hint, based on the information from the production department, that there is something to be produced. It is of real importance to know what the material is, in our case the table, and what amount of goods we want to produce as well the dates of production.

It must, of course, be clear, if the table can be produced at all. Just imagine that our capacities are not sufficient - in working hours or machinery hours. Then we definitely have to inform our customer.

In the production department the planned order is examined. The planned order then is transformed to a production order, as soon as the check has had a positive result. Then the production order is checked again. To do that twice makes it more secure. At this stage it is important not to forget to order the material or to check if it has already arrived and no material is missing.

As soon as all these checks have been carried out and there are no objections against the production of our tables the production order will be unblocked. The production can start.

As soon as the tables have been produced a Confirmation will be required in the SAP-system. This feedback comes directly from the production level itself. The man or women working on the machine will directly carry out that confirmation in the SAP-system. They will inform us how many of the number of tables, mentioned in the production order, have really been produced. It might be that not all the tables that should have been produced within a time limit have really been produced. A cause for that might be a machine, that failed or faulty, damaged material, etc.

After the confirmation has been saved in the SAP-system the movement changes in the company's storage will automatically be posted out. The raw material and the auxiliary supplies will be deleted from the storage and the tables will be entered on the books. From now on the tables are in stock and can be sold and delivered."

 

C. Tasks

Exercise 1: Open the Production Scenario Overview / Structure and study the entire process.

Exercise 2: Read through the Production Process Task: Exercise 2 to finish the process.

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