The Overall Flow For SAP PP

What are the stages in PP?

The PP flow consists of planning and execution as described.
Here is the flow of PP in simple language:
First of all demand is generated for the product to be produced through demand
management. It calculated the quantities to produce and the time for the final
assembly.
The data from demand management is transferred to MRP. The data from demand
mgt can come from Customer Sales Order (firm) or Planned Order (forecast).
The MRP checks for the availability of material at various stages of BOM. In case
material is not available MRP generated planned order and Purchase requisition for
production of components in house and procurement from vendor respectively.
The planned orders are converted into production order by the planner and the
purchase requisition are converted into purchase order by the purchaser.
Production in charge converts the planned order to production order and carries out
the production activities once the order is released for production. Production is
carried out as per the operation steps provided in the routing. Work centers are also
mentioned with each operation in the routings where these operations are to be
carried out.
Once the production is completed production confirmation is done and goods
movement (delivery created) takes place.
Capacity planning is yet another part of PP which planes the capacities for various
work centers. MPS is another tool which is used to plan out the master products. If
MPS is to be run the inputs are provided from demand management to MPS. And
the out put from MPS is then feed into MRP.

Total Planning & Netch, Netpl, Neupl

What is the difference in between total planning & netch, neupl, netpl?
By : Sankaran
1. Regenerative planning (NEUPL): System plans all the materials that are
contained in the planning file
2. Net change planning (NETCH) or Net change planning in the planning horizon
(NETPL): The system only plans materials that have undergone a change relevant
to MRP since the last planning run.
NETCH: In net change planning only those materials are planned for which the net
change planning indicator in the planning file has been set as a planning file entry.
The system usually sets the indicator automatically as soon as a change is made to
the material that is relevant to MRP.
NETPL: The system only plans materials that have undergone a change that is
relevant to the planning run within the period which you defined as the planning
horizon. The system sets the net change planning horizon indicator automatically
for these materials
Remember the following point : The changes cause an entry in the planning file to
be made:
Changes to stock, if these change the stock/requirements situation of the
material
Creation of purchase requisitions, purchase orders, planned orders, sales
requirements, forecast requirements, dependent requirements or
reservations
Changing to fields that are relevant to the planning run for these receipts and
issues or in the material master
Deleting receipt or issue quantities

Production Cycle: 1. PIR (Planned Independent Reqmt. - MD61)

2. MD02 - MRP Run
3. MD04 - Stock Requirement List
Tips: MD04 - Inconsistencies after PGI - SDRQCR21
4. CO40 - Convert Planned Orders to Production Order OR CO01
Create Production Order
5. Here in Production Order - Schedule Order, Release order
6. MIGO / MB1A - Goods Issue against Order (Mvmt Type 261)
7. CO11N - Production Operation confirmation
Tips: Add An Entry Field In CO11n
8. MIGO / MB31 - GR against Prd order
9. CO02 - Technical completion of order
10. KO88 - Order Settlement

Listed here are some common used planning strategies :Strategy 10 in summary :1. Sales Order creation - no impact.
2. Goods Receipt - reduce the planned independent requirement during MRP run
For e.g. if PIR is 100, quantity remained as 100 in PIR, however during MRP
run,
100 will not be included in the MRP planned as stock is available.

3. Delivery - minus the quantity for the oldest planned independent in demand
management.
For e.g. if PIR is 100 and delivery 90, PIR becomes 10 (withdrawal 90).
10 LSF Make-to-stock production
independent

KSL Sale from stock without

requirement reduction

Choose this strategy if you want production to be determined by a production plan

(Demand Management) and if you do not want sales orders to influence production
directly.
You must maintain the following master data for the finished product:
Strategy group 10 on the MRP screen.
Item category group (for example, NORM) on the Sales Organization screen.
Availability check field in Customizing so that you perform an availability
check
without replenishment lead times (in the standard system, you must enter 02
here).
In net requirements planning according to strategy 10, the order does not create a
requirement; the sales order is displayed, but does not generate planned orders.
The planned independent requirement is reduced during processing of the goods
issue.
Old quantities can still be retrieved by using either
Goto -> Schedule line history in Demand Management, or by using the total
requirements list
(Evaluations -> Display total requirements from the Demand Management menu).
The quantities issued are displayed in the Withdrawal quantity field.
The system always reduces the oldest planned independent requirements unless the
consumption fields (Consumption mode, Fwd consumption per., Bwd consumption
per.) are maintained in the material master or in the MRP group.
11 BSF Gross planned independent requirements KSL Sale from stock without
independent
requirement reduction

Strategy 11 in summary :1. Sales Order creation - no impact.

2. Goods Receipt - minus the quantity for the oldest planned independent in
demand management.
For e.g. if PIR is 100 and delivery 90, PIR becomes 10 (withdrawal 90).
3. Delivery - no impact as delivery is issue from sales order.
This strategy is particularly useful if you need to produce, regardless of whether
you have stock or not. For instance, steel or cement producers might want to use
this strategy because they cannot shut down production; a blast furnace or a cement
factory must continue to produce, even if this means having to produce to stock.
You need to maintain the following master data for the finished product:
Maintain strategy group 11 on the MRP screen.
Set the Mixed MRP indicator to 2 on the MRP screen.
Maintain the item category group (for example, NORM) on the Sales
Organization screen.
Maintain the Availability check field so that you perform an availability check
without the replenishment lead time (checking group 02 in the standard
system).
Strategy

10

Stock is taken into account

Yes

11
No

Reduction of planned independent

requirements takes place during goods issue for ... goods receipt for a
production
the delivery order (discrete
production),
for a planned order
(repetitive
manufacturing), or for a
purchase
order (trading goods).

20 KE

Individual sales order without

consumption

Strategy 20 in summary :1. Sales Order creation is the only impact.

2. Demand management not in used.
In make-to-order production, a product is produced specifically for an individual
sales order. This planning strategy is used when planning of the (parent) product is
not required or not possible. Neither Demand Management is involved in this
process, nor is there an allocation mechanism. Orders are taken as they come. This
strategy represents a production procedure in which each product is only produced
once, although over time the same or similar production processes are repeated.
Each product is specifically produced for an individual customer so that the
finished product is rarely placed in stock.
You also must maintain the following master data settings for the finished product:
Strategy group 20 on the MRP screen
Item category group (such as NORM) on the Sales Organization screen
Sales Order -> MRP -> Customer Stock Finished Product -> Delivery ----+
^
|
|
|
+-------------------------------------------------------------------------+
Reduction
40 VSF

Planning with final assembly

KSV Sales order with consumption

Strategy 40 in summary :1. Stocks on hand reduces the PIR during MRP run.
e.g. if stock is 100 and PIR is 100, MRP run will not prompt 100 for
procurement.
if stock is 0 and PIR is 100, MRP run will prompt 100 for procurement.
2. Sales order creation reduces the PIR.
e.g. if PIR is 100, sales order 90, PIR becomes 10 (withdrawal 90).
3. Delivery reduces the Sales Order.

This strategy is probably the most widely used make-to-stock strategy. It makes
sense to use this planning strategy if you can forecast production quantities for the
final product.
Planned independent requirements are consumed by incoming sales orders so that
the master plan is always adjusted to suit the current requirements situation. This
means that the important feature of this planning strategy is that you can react
quickly to customers requirements. The smoothing of the master plan is less
important.
You must maintain the following master data for the finished product in the
material master:
Strategy group 40 on the MRP screen.
Consumption parameters (Consumption mode, Bwd consumption, Fwd
consumption) to allow
consumption of independent requirements. If no consumption parameters are
maintained in the
material master, the system uses default values are taken from the MRP
group.
To control consumption, you maintain a consumption mode as well as a
consumption period.
Item category group (for example, NORM) on the Sales Organization Data screen.
Four important points :1. Planned independent requirements are used to trigger the procurement and
production of
the necessary assemblies and components before receipt of the sales orders.
2. As soon as the sales order is received, it consumes the planned independent
requirements.
3. An ATP (available to promise) logic during sales order processing will checks
whether
sufficient planned independent requirements have been planned to cover the
sales order.
4. Requirements from the sales orders are passed on to production and can lead to
changes
made to procurement if the requirements from the sales orders exceed the
planned
independent requirement quantities. If there is insufficient coverage of
components

(the sales order quantities exceed the planned independent requirement

quantities), the
sales orders cannot be confirmed. The system therefore automatically adjusts the
master
plan. Planned independent requirement quantities that are left unconsumed
increase the
warehouse stock of the finished product.

Explain the steps of production order with external operation.

Following are the steps.
External Operation Processing
1. For a production material (1001), one raw material (2001) is assigned.
2. Production process of 1001 is having four operations 10, 20, 30 and 40.
3. In this 10, 30, and 40 are internal operations and 20 is external operation (subcontracting).
4. To address this, we created a dummy material (non-valuated) and named as
1001-20 (Finished product number + Operation to be performed).
5. This 1001-20 should form part of the component in BOM of 1001. That is BOM
of 1001 will have components as raw material 2001 and this dummy material
1001-20. In routing, assign this dummy material 1001-20 to operation 20.
6. During BOM creation, you should remove costing relevancy for the item 100120.
7. In routing, operation 20 is created with a work center (which is external
operation work center) with external operation control key.
8. In operation details, for external processing, assign the info record of external
processing.
9. Info record of external processing has to be created for vendor with relevance to
the operation to be performed externally with vendor. (We are using material group
field in the external processing in routing operation).
10. When create production order with above set up, system will create Purchase
Req for external operation. This has to be converted to purchase order.

11. Now, this dummy material should be kept as 5000 or 6000 in stock using 561.
When Purchase order is raised, required quantity has to be moved to vendor using
541. When we do goods receipt the stock with vendor shall come down. With this,
we can monitor the material (with dummy material number) stock with vendor
(please note we can see only quantity and not value) .
12. When we do GR for external purchase order, we receive only the operation
performed. (So, conversion cost to vendor shall be paid).
13. After ensuring GR is done, order confirmation of operation 0020 has to be
done. (here we capture the quantity and also the valuation of material in production
order).

The following are the business scenario:

- For some service activities we have to send some
materials or machines etc outside to a vendor
- After some activities (value addition) there it will come
back to my shop floor or warehouse.
What will be the actual procedure to execute the
operation so that I can track the material movement which
is going outside and coming back?
Go through these steps for subcontracting step by step method:
There are two types of subcontracting relevant for PP module:
1. Operation subcontracting
2. Assembly subcontracting.

Assembly subcontracting:
Total product can be given for subcontracting.
We have to give the raw materials to vendors and they would
supply the assembly.
This can be done with special procurement type 30 with
procurement type F.
In that case you need to create X (FG) and their child parts
(A/B/C).
You need to do the following setting for the same1) FG material master Special Procurement type 30 in MRP-3.
2) During MRP run select indicator 3 for create purchase
requisition.
3) Convert PR into PO and maintain item category L and explode
the BOM
4) In Sub-Con Purchase order, System will collect automatically its
child parts.
5) Transfer the material by Mvmt-type 541 referring the Purchase
order to the Vendor. This will give a Mat Doc Number.
6) You can receive the complete FG thru simple MIGO process
mentioning.
Operation subcontracting:
Within in-house production if some capacity bottleneck exists in
any operations then you can assign this job to some vendors to
carryout this job in his premises and supply us the semi-finished
part. This can be done via control key example PP02 (external
processing control key and activate the subcontracting Check box
in routing).
Option1:
1) In Control key PP02 enable external processing and in the
routing in the operation detail enable external processing under
radio button sub contract.
2) In Order type dependent parameter T code OPL8 enable
reservation / PR creation - 3 (immediate reservation / PR creation)

during release / confirmation.

3) Create Info record T code ME2O only for vendor no material
combination. (You are not going to issue material for the vendor
through SAP) system will not allow through ME2O since it is
operation subcontract.
4) Run MRP it will not create PR directly since the it is enable in
OPL8 only after release.
5) Do the In-house operation then confirm the in -house operation
in CO11n. Once the previous operation is confirmed PR is
generated automatically.
6) Then Convert PR to P.O. In purchase order only operation
description will appear. since no component is assigned. And the
order type will be F.
7) Then make separate DC (Gate pass). Consult your MM guy for
this.
8) If any component is assigned to the operation. Do stock
transfer to Vendor storage location till such time it comes to
factory again.
9) While return from vendor do MIGO against the P.O and it will
come settle in prod order.
10) Payment to the vendor is through service record entry
concept. Consult MM gut for this.
Option 2:
1) You have to create separate material master for that operation.
Treating that it will be a different material
2) Create Vendor master with Material and Vendor combination
3) Create BOM with header material and this material as item for
the header.
4) Create Routing for the header material with only one operation
with control key PP02.
5) Assign the item material to this operation.
6) Run MRP this will create PR automatically. Then convert PR to
PO
7) Send material to the vendor through ME2O
8) Do the GR MIGO the item will come have header material and it
will automatically update in unrestricted stock.
9) Payment to the vendor will be with different not as service
entry concept consult MM guy for this.

Explain briefly about work scheduling and use of Forward and backward
scheduling?

A routing can be scheduled using the following scheduling types:

Forward scheduling: The system schedules forward starting from the basic start
date.
Backward scheduling: The system schedules backward starting from the basic
finish date.
"Today" scheduling: The system carries out forward scheduling using the current
date as a basic start date.
No scheduling: The individual operations are not scheduled.
Based on the floats before and after production, the system calculates the
scheduled start and finish and enters these dates in all operations.
The scheduling type determines which basic dates you have to enter. The following
table shows the dates you must enter for the individual scheduling types as well as
the dates that are then calculated using scheduling.
If you enter both basic dates, the system will make sure that the dates determined
using forward or backward scheduling are within the specified period. If necessary,
it will apply reduction measures.
Example Data
Material shortage date
01.08 (Friday)
Planned delivery time of the material
10 days (calendar days)
Processing time for purchasing
1 day (workdays)
Goods receipt processing time
2 days (workdays)
Opening period
10 days (workdays)
Workdays = Monday to Friday, no bank holiday Scheduling
Material shortage date plus processing time for purchasing plan plus planned
delivery time =

delivery date 01.08. (Friday) plus 1 workday + 10 calendar days = 14.08.

(Thursday)
Delivery date plus goods receipt processing time =
availability date 14.08. (Thursday) plus 2 workdays = 18.08. (Monday)

Q1) Explain the Functionality (Usage & Limitations) of T-code COGI

Ans:
COGI transaction code used for Automatic Goods Receipts - Error handling for
Backflush materials.
Backflush means: Determines whether the back flush indicator is set in the
production order. Here, a 3-level hierarchical logic is applied:
1. In the routing, the backflush indicator is set in the component assignment.
2. In the material master record, the backflush indicator has the characteristic
"Always backflush".
3. In the material master record, the backflush indicator has the characteristic
"Work center decides", the indicator being set in the work center.
We use COGI to check & clear error record occurred during backflushing or
automatic goods receipt.
When we use auto GI (Backflush) & Auto GR in production order then sometime
some goods movement may will get failed due to some reasons. So at that time
these failed goods movement records will be captured by system & can be viewed
in COGI transaction.
You can check detailed description of error by individual record here & can
reprocess it as per error.
Transaction: COGI

Q2) Difference Between COGI & MF47

I can find post process record occurring due to back flush problem such as
component shortage or storage location and so on. But there was nothing
when I used COGI. I checked the table AFFW for COGI, no records. What is
the reason?
Ans:
To use COGI in REM Activate "Create Individual postprocessing records" check
box at rem profile SPRO IMG Reference Settings.
Now you can see the Error records at COGI same as MF47.
As you know, COGI has some more features. But if you clear/delete the record
at MF47, the same will be deleted/cleared at COGI also.
Transaction: MF47

What are the use of Group bom? - By Vikram

A bom WITHOUT A PLANT IS CALLED GROUP BOM.
Group BOM:
If you create a material BOM without reference to a plant, the BOM is valid
throughout your company. To do this, you leave the Plant field blank. The system
checks whether material masters exist. There are no system checks for plant data.
However, you can also create a group BOM, without reference to a plant. For
example, a designer maintains a group BOM during the design phase of a product,
then the BOM is allocated to one or more plants for production purposes.