OpenSAP Byd4

Week 3: Product Manufacturing
Unit 1: Production Process

Production Process
Production process in its business context
Design Specify Plan Produce Deliver

Product Production Supply Planning Production Supply Control
Development Master Data
▪ Define new ▪ Define production ▪ Plan material and ▪ Plan and release ▪ Deliver finished
product process and resources orders products
▪ Hand over required material ▪ Create and ▪ Replenish
components and resources release demand components
from design ▪ Availability of ▪ Manufacture
planning and product
execution models for
supply planning and ▪ Inspect finished
production goods
▪ Monitor production
© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 2
Production Process
Key benefits of production process
▪ Closely integrated with other SCM planning and purchasing functions

▪ Provides planners with comprehensive decision support
▪ Inventory valuation
▪ Integrated quality process
▪ Integrated batch management
▪ Analytics

Production Process
Work center overview
Master Data Process

Planning and Production Product Data Execution Production Control
Master Data
Overview Overview Overview Overview
Production Bills of Material Products Production Requests
Production Models Services Production Orders
Logistics Task Folders Product Catalogs Task Control
Engineering Change Orders Reports Monitoring
Product Specifications Automated Actions
Identified Stock Reports Reports
Source Determination
Product Groups
Reports
Production Process
Summary
▪ Production process in SAP Business ByDesign

▪ Key benefits of production process in SAP Business ByDesign
▪ Production-relevant work centers and views

Thank you.
Contact information:
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Unit 2: Production Master Data
Production Master Data

production goods
Contents
▪ Production Bill of Material
▪ Production Bill of Operations
▪ Production Model

Production bill of material
Example: BoM for a cartridge

▪ Bill of material (BOM) is a structured list
of all components Variants
▪ Can have multiple variants

▪ Integrated engineering change order Cartridge
(ECO) process
Ball
Ball x x x x x x x x
Ball
carrier
Ball carrier
x x x x x x x x
Stem
Stem plastic
x x x x
Stem steel x x x x
Ink
Ink black
x x
Ink blue x x
Ink green x x
Ink red x x
Legend: = BoM = Item group = Item

Production bill of operations
A bill of operations (BoO) is a description of how a product is to be produced. The BoO consists of
operations with attached resources and execution instructions.
▪ Operation
▪ Activity
▪ Sequence
▪ Branching
▪ Connection Branching
▪ Mark Sequence 1
Operation 2a Operation 3a
Start Operation 1 Operation 4 End

Sequence 2
Operation 2b Operation 3b

System demo
▪ Creation of BoM
▪ Creation of BoO
▪ Creation of production model

Production model in its business context
Product Planning and Production Master Data Supply Chain Planning and Control
Development 2
Released
Bill of Material Planning Model 6 Production Proposal
1 5 (RPM)
Product
Design Production Model
Engineering 4 BoO
…
Change Order BoO

ST Op 1 Op n EN
BoM
ST Op 1 … Op n EN
Product BoO
ST Op 1 … Op n EN
BoM
Production Task
Specification BoM
Production Lot
3
Product
5 Released 6 Production Order
Bill of
Model Execution
Operations Production Request
Model (REM)
Properties
Manufacturing Execution

Summary
Master data to enable production processes in SAP Business ByDesign:

▪ Production bill of material usage and creation
▪ Production bill of operations usage and creation
▪ Production model usage and creation

Thank you.
Unit 3: Production Planning
Production Planning

production goods
Production Planning
Contents
▪ Material Requirements Planning
▪ Production Proposals
▪ Material Flow
▪ Resource Loading

Production Planning
Material requirements planning (MRP)
Net Requirements ▪ Production receipts create dependent requirements

Calculation as per the component requirements from the
production model
Lot Size
Calculation ▪ Multi-level planning plans for all the material in the
same planning area, down to the lowest level of the
BOM chain
Reuse Calculation
Deletion of
Obsolete Receipts
Creation of
New Receipts
Creation of
Material Flow

Production Planning
Production proposals
Production Proposal
Duration : Fixed + Variable Time
Start Time Stamp End Time Stamp
The duration of a planning operation is calculated by adding the fixed (setup, tear down) & variable (produce, final
inspection) duration of activities in a production execution operation to the scheduling buffer of the resources.

Production Planning
Material flow
The material flow shows the entire pegging network between the demand and supply entities, starting from the
independent demand, such as the sales order or forecast, or from the highest demand known in the pegging network.

Production Planning
Resource load
Resource
Available Capacity and Load Profile Capacity
Resource
Load
Today
CW 09 CW 10 CW 11 CW 12 CW 13 CW 14 CW 15 CW 16 CW 17 Time
The resource load view helps find out which resources have load issues.

Production Planning
System demo
▪ Multi-level material requirements planning (MRP)

▪ Evaluation of planning result
▪ Resource loading

Production Planning
Summary
▪ The need of MRP run and the parameters that control it

▪ The MRP run result across multi-level BOM chain
▪ The linkage between receipt elements of parent and child components using material flow
▪ The basics of resource loading

Thank you.
Unit 4: Production Execution
Production Execution

production goods
Contents
▪ Production Requests
▪ Production Orders
▪ Production Tasks and Production Task Execution
▪ Process Automation in Production
▪ Projected Material Flow
▪ Replenishment and Removal Process

Production requests
▪ Upon release of a production proposal, a production request will be

created which represents a demand in production
▪ The production request contains the same segment structure as the
production model
▪ From a production request, a production order is created

Production orders
▪ The order structure can contain operations for production (‘Make’),

quality assurance (‘Check’), and replenishment of components (‘Supply’)
▪ The planned quantity, the scrap factor, as well as earliest start and latest
end of the production order can be changed manually as long as the
production order has not been released
▪ Before releasing the production order, the user can check the availability
of components by clicking ‘Stock and Demand Overview’
▪ When the production order is released, the production lot and the tasks
are created. The production order becomes read only

Production tasks and production task execution
▪ Tasks are created for the corresponding folders. Supply, Make, and Check tasks
are all production tasks
▪ For Supply and Check operations, own tasks are generated upon release,
independent of the task generation strategy
▪ If quality control is embedded in the production order, the Check task that is
created is always the last task, because the system currently supports final
inspection in production
▪ When the task with input and output products has been confirmed, the input
component inventory is reduced and the output product inventory increases
▪ When all the confirmations are done on Task, the status should be set to ‘finished’
▪ When all the tasks in the production lot have been completed, the production lot is
completed too

Process automation in production
Release Production Release Production Release Production Confirm Close

1 Proposal, Create 2 Request, Create 3 Order, Create 4 Production 5 Production
Production Request Production Order Production Tasks Task Lot
Supply Production Production Production

Worker
Planner Manager Manager Manager
Including dispatching
production tasks to designated
task folders and triggering
supply to production Execution /
Supply Production Production
Production
Planning Control Production Control Control
Control
MDRO MDRO MDRO MDRO

Mass Order Mass Order Mass Lot
Planning Creation Release Closure
Runs Run Run Run
Worker
BC Setting BC Setting BC Setting
Immediate Production Immediate Production Immediate Production
Order Creation Order Release Lot Close
Automated Release of Production Proposal, Confirm Production Task,
1 Automated Create & Release of Production Request, 2 Automated Close of
Automated Create & Release of Production Order Production Lot

Projected material flow
▪ The Projected Material Flow view provides detailed information about quantities of products at a specified time and
location
▪ The calculated quantities shown in the Projected Material Flow view are based on the current inventory, including
allocations, expected incoming materials, and expected outgoing materials
Replenishment and removal process
Replenishment can be used to replenish raw materials to the production supply area or replenish
the picking area with inventory from the high rack.
Removal can be used to move finished goods from the production output area to the warehouse
There are three ways to trigger replenishment and removal:

▪ Manual replenishment and removal
▪ Automatic and scheduled replenishment and removal
▪ Replenishment with reference

System demo
▪ Production Proposal  Production Request

▪ Production Request  Production Order
▪ Production Order: Supply & Demand View
▪ Production Order  Production Task
▪ Production Task Confirmation

Summary
▪ Understand the production execution capabilities of SAP Business ByDesign

▪ Understand the replenishment and removal process

Thank you.
Unit 5: Deep Dive Sessions
Deep Dive Sessions
Contents
Section 1:
▪ Product Definition
▪ Product Engineering
Section 2:
▪ Resource Load and Load Leveling
▪ Top-Down and Bottom-Up Propagation

Deep Dive Sessions

production goods
Deep Dive Sessions
Product definition
Define Model Specify Sell

Import Variants
Specify Include in
Manage Define Define from External
Variants Sales
Product Properties Variants Configuration
Manually System Order
Product Engineering
Design Adapt Handover
Import Design Create Release

Adapt Product
Product Product Create Product
from CAD Design
Design Design BoM
Systems Versions
Manually Versions

Deep Dive Sessions
System demo
1. Product Properties
2. Product Design to Production BoM

Deep Dive Sessions
Contents
Section 1:
▪ Product Definition
▪ Product Engineering
Section 2:
▪ Resource Load and Load Leveling

Deep Dive Sessions
Resource load and load leveling
Material Plan
Search for Available Capacity and Load Profile Load Profile After Load Leveling
Available Capacity
Today Today
Load Leveling
Check Latest
Requirement Date
Handle
Capacity Issues CW … CW 10 CW 11 CW 12 CW 13 CW 14 CW 15 CW 16 CW 17 Time CW … CW 10 CW 11 CW 12 CW 13 CW 14 CW 15 CW 16 CW 17 Time
Load Leveling Horizon

Mid-point
Scheduling
Resource Capacity Resource Load Load Leveling

Top-Down/Bottom-Up
Propagation

Deep Dive Sessions
Top-down and bottom-up propagation
Capacity
Demand
Resource 3
Production Proposal Production Proposal
Time
Capacity
Bottom-Up
Resource 2
Load Leveling
Production Proposal Production Proposal

Time
Top-Down
Capacity
Vendor
Purchase Proposal Purchase Proposal

Time

Deep Dive Sessions
System demo
▪ Resource Load and Load leveling


Deep Dive Sessions
Summary
▪ The product design functionalities in SAP Business ByDesign

▪ Resource load leveling options
▪ Proposal rescheduling options

Thank you.
Unit 6: Supporting Concepts
Supporting Concepts
Contents
▪ Product Specification
▪ Batch Management Using Identified Stocks

Supporting Concepts
Product specification (1)
Product specification allows companies to easily define and maintain individual customer requirements and
product variants, and is fully integrated in the end-to-end business process from sales order entry through
supply planning, production and procurement to outbound delivery.
Order to Cash Flow
Determine Confirm a
Processing
Creating Approve ship-from Initiate Create Finalize
Create a Approve Create a
Outbound
Customer Create a warehouse Transfer Release
sales quote sales order a sales location / an a warehouse task and an invoice an
a sales Delivery
Invoices
with product with product supplier and outbound warehouse outbound
quote order task post goods requests invoice
check delivery request delivery
specification specification issue
availability
Creating Sales Creating Sales Initiating Outbound Processing Outbound Creating Customer
Quotes Orders Delivery for Deliveries with Tasks Invoices
Shipment from
Your Own Site

Supporting Concepts
Product specification (2)
Product Specification
Identified Stock
n
Inventory

Supporting Concepts
Batch management using identified stocks (1)
Product Specification
Identified Stock Type Batch Managed
Enabled
Batch Yes No
Lot Yes No
Optional Specified Stock No Yes
Mandatory Specified Stock Yes Yes
Null No No
Material ID Batch Managed? Business Requirement Identified Stock Type

Product_1 Yes Make-to-Stock Only Batch / Lot
Make-to-Stock &
Product_2 Yes Mandatory Specified Stock
Make-to-Order
Product_3 No Make-to-Stock Only Null
Make-to-Stock &
Product_4 No Optional Specified Stock
Make-to-Order

Supporting Concepts
An identified stock can have the following categories of stock linked to it:
▪ Unrestricted Stock (UR)
▪ Restricted Stock (R)
▪ Inspection Stock
The system performs the following ad-hoc movements when there is a change in the identified stock status:
Status Change Movement for Change of Stock
From To
Active Blocked No Stock Movements
Active Obsolete All Stock (UR & Inspection) Will Be Moved to R
Blocked Active No Stock Movements

Blocked Obsolete All Stock (UR & Inspection) Will Be Moved to R
Obsolete Blocked No Stock Movements

Supporting Concepts
Once a product is identified as batch managed, it is mandatory to enter the batch number across all processes
that involve inventory management.
Some key processes…

▪ Inbound
▪ Outbound Three interesting features of batch
▪ Production management in SAP Business ByDesign are:
▪ Internal logistics
▪ Physical inventory count ▪ Batch-specific UOM conversions
▪ Over-the-counter sale ▪ Minimum shelf life consideration
▪ Point of sale ▪ Expiry date consideration
▪ Materials in projects
▪ etc…

Supporting Concepts
System demo
▪ End-to-end flow of ‘Sell from Stock’

Supporting Concepts
Summary
▪ The batch management functionality in SAP Business ByDesign

▪ The end-to-end process of making / selling / procuring specific goods

Thank you.

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Week 3: Product Manufacturing

Unit 1: Production Process

Design Specify Plan Produce Deliver

▪ Closely integrated with other SCM planning and purchasing functions

© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 3

Master Data Process

▪ Production process in SAP Business ByDesign

© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 5

Design Specify Plan Produce Deliver

▪ Production Bill of Material

▪ Production Bill of Operations

© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 3

Example: BoM for a cartridge

▪ Can have multiple variants

Legend: = BoM = Item group = Item

Start Operation 1 Operation 4 End

© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 5

© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 6

Change Order BoO

© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 7

Master data to enable production processes in SAP Business ByDesign:

© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 8

Design Specify Plan Produce Deliver

▪ Material Requirements Planning

© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 3

Net Requirements ▪ Production receipts create dependent requirements

© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 4

Duration : Fixed + Variable Time

Start Time Stamp End Time Stamp

© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 5

© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 6

© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 7

▪ Multi-level material requirements planning (MRP)

© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 8

▪ The need of MRP run and the parameters that control it

© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 9

Design Specify Plan Produce Deliver

© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 3

▪ Upon release of a production proposal, a production request will be

© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 4

▪ The order structure can contain operations for production (‘Make’),

© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 5

© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 6

Release Production Release Production Release Production Confirm Close

Supply Production Production Production

MDRO MDRO MDRO MDRO

© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 7

There are three ways to trigger replenishment and removal:

© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 9

▪ Production Proposal  Production Request

© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 10

▪ Understand the production execution capabilities of SAP Business ByDesign

© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 11

© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 2

Design Specify Plan Produce Deliver

Define Model Specify Sell

Import Design Create Release

© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 4

© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 5

© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 6

Load Leveling Horizon

Resource Capacity Resource Load Load Leveling

© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 7

Production Proposal Production Proposal