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PROJECT SMART
PP-PI
Contents
OVERVIEW 3
MASTER DATA
♦ Resources 4
♦ BOM 6
♦ Recipe 6
STOCK TRANSFERS 20
• SAP Terminology 20
• Movement Types 20
• Stock Transfer 21
ANNEXURES 33
OVERVIEW
With the component PP-PI (Production Planning for Process Industries), SAP provides an
integrated planning tool for batch oriented process manufacturing. The following figure
illustrates various functionality offered by PP-PI.
T H E P P-PI L O G IST IC C H A IN
M aterial
a terial fore cas t
forecast S a les/D istrib u tio n
P re lim in ary p lan n in g
relim
MRP
Capacity planning
S to ck
Costing
P la nn ed o rd er
In w a rd s to ck m o ve m en t
G o od s is su e
MASTER DATA
Resources
A resource is used to carry out an operation within a production run. If we want to specify
where an operation is to be carried out, we must enter a resource in this operation. The
resource contains information on the location or area within a plant at which a particular
processing step is carried out. A resource can represent machine or labor resources, for
example, a reactor or an operator.
A standard task list / recipe consists of a series of work steps. To determine where or with
what resources an operation or activity is to be carried out, we must specify a resource.
To simplify the maintenance of operations, we can enter default values for them in a
resource. These default values are transferred into the operation when the resource is
allocated.
The term "capacity" refers to the ability to perform a task. In the R/3 System, capacities
define the output that processing units and people, among other things, can provide within
a certain time period. Several capacities can be assigned to one resource, distinguished
by their categories.
In PP-PI the BOM is referred to as Material list and forms part of the recipe.
The BOM or material list contains all the material components required during the
production run, together with their quantity specifications.
RECIPE
In the master recipe, we describe the processes to be used for producing materials in our
plant as well as the resources and ingredients required for production.
Just like material master records, bills of material and work centers, the master recipe is
considered as master data. It describes the processing steps required to produce a
material or provide a service in the process industries.
The master recipe is a resource-specific recipe, used for the preliminary planning of
production processes, and contains the specifications for manufacturing one or more
materials in non-discrete manufacturing processes. It contains operations and data on the
primary and secondary resources required, material allocations, operation texts and
standard values for operations. In a master recipe, you can plan the use of:
· Resources
Project SMART Ghaghra Sugar Ltd. 6/37
Compiled by ISD, DSCL
Production Planning – Process Industry Users’ Manual
· Materials
· Capacities
· Costs
· Quantities
required for the process.
The entire list of recipes for all the plants including the Bill of Materials is listed in
Annexure II.
In a process order, the process described in a master recipe is copied and adjusted to the
concrete production run.
♦ Releasing: The process order is to be released before actual production is carried out.
It is only after the process order is released that the material needed for production is
reserved.
♦ Saving: When the order is saved, the system generates a no. which is to be noted for
further reference.
The number range of process orders for each plant is detailed in Annexure - III.
♦ Overhead calculation:
The total cost of indirect expenses, indirect labor, and indirect materials (indirect
costs) are termed as overheads. Overhead is allocated to the cost objects by
means of overhead rates that have been defined in CO module.
♦ Settlement: When settlement is carried out, the actual costs incurred for the process
order, are settled to one or more receivers (such as the material to be produced).
Participants’ Notes:
Note: Option is available to create a process order by copying an existing order (Enter the
no. of the existing order in the field copy from Process order.
Participants’ Notes:
1. In creation mode, you can release the process order by selecting Process
OrderFunctionsRelease or by clicking on
It is also possible to release the order after saving it. You can directly access this screen
by typing COR5 in the Command Line Box.
1. Process Order: Enter the Process Order no. to be confirmed. The main screen for
confirmation appears.
5. Change the Execution start and Finish execution dates and times.
6. Enter the Posting Date. This date is the date of production. For e.g: for a production of
6000 QTL of Gomti Sugar M-30 from 23.12.01 6:00 AM to 24.12.01 6:00 AM, the
posting date would be 23.12.01.
The initial screen for overhead calculation appears. Enter the following data.
Note: Enter Controlling area as 5000, when accessing this screen for the first time.
The overheads are calculated and the completion message appears. Click on to
return to main screen.
V . Settlement
Participants’ Notes:
Stock Transfer
BUSINESS AREA
Business areas are primarily used to facilitate external segment reporting across
company codes, covering the company's main areas of operation (product lines,
branches).
PLANT
STORAGE LOCATION
MOVEMENT TYPES
When you enter a goods movement in the system, you must enter a movement
type to differentiate between the various goods movements. A movement type is a
three-digit identification key for a goods movement. The following table contains
examples of movement types.
A list of business areas, plants, storage locations and movement types relevant to
production planning is given in Annexure V.
Material produced in one plant through a process order may need to be consumed
in another plant (e.g: Power) or sold through another plant (e.g: Bagasse). In some
other situations, the stock needs to be moved between storage locations to enable
further transactions to be performed on it (e.g: Gomti Sugar)
To enable this cross plant, SAP provides manual goods movements to be done
between plants or between storage locations.
Stock Transfer
Click on Save icon to save the document and post the transaction.
1. Costs :
Note: During creation phase, select Process Order Function Determine Costs
Various options for comparison of Planned Vs Actual costs are available.
Note: Before an order is confirmed, through the same menu path, the planned
(Budgeted) costs can be viewed.
3. Production Reports
Note: In these reports, we can view the information at different levels viz.
Company, plant, material, order or date. Standard analyses viz. ABC,
Comparison, Classification etc. are also available.
4. Cost Sheet
This report provides the cost sheet as required by Accounting / MI for all the
semi-finished / finished products. The information includes direct and indirect
costs, compiled in a monthly format.
Information for the previous month and the total record till this date of the year
are also provided for comparison and analysis.
5. Quantity Efficiency
This report provides the per ton consumption quantities of all the input material
required to produce the semi-finished / finished product, there by providing an
indication of the process efficiencies.
Project SMART Ghaghra Sugar Ltd. 24/37
Compiled by ISD, DSCL
Production Planning – Process Industry Users’ Manual
Information for the previous month and the total record till this date of the year
are also provided for comparison and analysis.
Participants’ Notes:
ORDER REVERSAL
Before doing order cancellation, reverse the order settlement and overhead
calculations.
Order : Number of the process order for which the overheads are
to be loaded.
Period : Financial period
Fiscal year. : Financial year.
The initial screen for overhead calculation appears. Enter the following data.
Note: Enter Controlling area as 5000, when accessing this screen for the first time.
Order : Number of the process order for which the overheads are to be
loaded.
Period : Financial period
Fiscal year. : Financial year.
• Select Overhead Calculation Reverse. The overheads are calculated and the
A warning message appears asking you to confirm your intent to cancel the
order. Click on Yes.
Click on Save icon. Enter the text for reason of cancellation and click on to
cancel the order.
Note: Open the Process Order Confirmation display (Tcode: XXXX), select
the cancellation entry and click on Goods Movement to determine
whether all the reversals have been successfully posted.
Note: Before proceeding with the goods movement, reverse the Process Order
Settlement and Calculation of Overheads as illustrated above.
• Enter the Document Date and the Posting Date as required. The
posting date has to be the same as that of the order confirmation
posting date.
• Enter the following data:
Delivery Note: -/-
Doc Header Text: -/-
Movement Type: 101 for Production increase
102 for Production reduction
Plant: Plant of production
Stor. Location: Concerned Storage Location
• Click on Enter.
• On the details screen, modify the quantity as desired and click on
icon.
• Enter the following string in the text field.
-/-/-/xxx
Note: xxx is a string of 3 characters. You can input your own 3 chracter
string to help you identify the transaction later.
Note: Open the process order in the display mode (Tcode: COR3) to
confirm the change, and then proceed to calculate overhead costs and
order settlement, as illustrated above.
Note: Open the process order in the display mode (Tcode: COR3) to
confirm the change, and then proceed to calculate overhead costs and
order settlement, as illustrated above.
Adopt the same method as Case II, changing the movement type to 531 (for
additional production) or 532 (for reduction in production).
USEFUL INFORMATION
• Material Stock: Use this report to verify the total stock available across plants
for a given material.
Logistics Materials Management Inventory Management
Environment Stock Stock Overview (Tcode: MMBE)
ANNEXURE I – RESOURCES
ANNEXURE II
SEQUENCE OF ACTIVITIES, PRINCIPLES AND STOCK TRANSFERS
1. DM Water Production
2. Steam 45 KG Production
3. Steam 21 KG Production
4. Power Internal Generation (Power through DG Set if required)
5. Mixed Juice Production
6. Loose Sugar Production
7. Gomti Sugar Packing (all grades)
Some of the materials are moved across plants for either consumption or sale.
Depending on the business area, the materials have to be either manually moved
across plants or moved manually through stock transfer posting.
SGSU GMIL
GSPP
GSSC