SAP ECC 6.

0 - PP Module
SAP ECC 6.0

SAP the company was founded in Germany in 1972 by five ex- IBM Engineers.

SAP R/3
S - System
A Applications
P Products

SAP System Applications and Products in Data Processing

The R/3 means Real time and 3 means 3-tiers.

But now the SAP R/3 product name has been changed into SAP ECC (ERP Central
Component), the latest version - SAP ECC 6.0

SAP ECC 6.0 has different Application Modules.

SAP enables a company to change its fragmented and invisible processes into
transparent & integrated processes. Others SAP Key Benefits are:

A real time platform that provides accurate and easy to use Management Information
System
Provides information transparency and increase decision making capability
Enables global management and information sharing among companies, divisions and
business units.
Reduced or eliminating non-value-adding work
SAP ECC 6.0 Application Modules

SD Sales & Distribution

MM Material management
PP Production Planning
QM Quality Management
PM Plant Maintenance
HR Human Resources
FI Finance & Accounting
CO- Controlling
AM Asset Management
PS Project System
WF Work Flow
IS Industry Solutions
Project SHAKTI

Project SHAKTI is a project undertaken to implement SAP at all the units of L&T Power
through L&T Infotech.

The following process of SAP are taken into consideration for Project SHAKTI at L&T MHI
Boilers Pvt. Ltd.

Description Process Area

Posting to Finalization PTF
Planning to Control PTC
Procure to Pay PTP
Quality Assurance and Control QAC
Document Management System DMS
Order to Cash OTC
Environment Health and Safety EHS
Project Monitoring and Control PMC
Manufacture to Deliver MTD
Asset Lifecycle Management ALM
Manufacture to Deliver (MTD)

Standardization, monitoring and controlling of all manufacture to deliver processes will

be achieved via PP (Production Planning and Control) module of SAP.

MTD processes which are being addressed in Project SHAKTI are as follows:

Process Description
Number
MTD010_B Production Planning, Scheduling and Control
MTD020_B Material Requirement Planning Project based
MTD040_B Material withdrawal process from Stores
MTD060_B Incorporation of Master data changes into Production order
MTD080_B Shop floor execution, activity confirmation and data capturing
MTD110_B Rework and Rejection processing
Company Code

Definition

It is a smallest organizational unit of Financial Accounting for which a complete self-

contained set of accounts can be drawn up for the purpose of internal and external
reporting.

Company Codes are not optional within SAP and are required to be defined.

It is used to structure the business organization from a financial accounting

perspective.

Characteristics

Represents a legal/tax entity

Level of external reporting or legal sets of books
Inter-linked transactions within a Company

A company code is assigned to:

Credit control area for credit management

Controlling area for cost accounting
Chart of depreciation for Asset management
Calculation procedure for Indirect Tax Calculation
Company Code

Structure

Code Name
1000 EPC-Power
1200 L&T Power Limited
1600 L&T MHI Turbine Generator Private Limited
1800 L&T MHI Boiler Private Limited
Plant

Definition

It is a place where either materials are produced or goods and services provided.

Plant is an organizational unit serving to subdivide an enterprise according to Production,

procurement, maintenance, and materials planning aspects.

Use

If the Valuation Level is the plant:

The material stocks are valuated at Plant level

Possible to define the material prices for each Plant
Each Plant can have its own account determination
The material stocks are managed within a Plant

Material Requirement Planning

Material requirements are planned for each Plant

Each Plant has its own MRP data.
Analyses for materials planning can be made across Plants

Production and Costing

In Costing, Valuation Price are defined only within a plant

Structure

The company code plant assignment will be done as per the table below:

Sr. Plant Plant Description Assigned to Company

No. Code Code
1 1000 EPC Office-Vadodara 1000

2 1001 EPC Project Site1 1000

3 1600 LMTG Plant Hazira 1600

4 1610 LMTG Office Vadodara 1600

5 1800 LMB Plant Hazira 1800

6 1810 LMB Office Faridabad 1800

7 1820 LMB office Vadodara 1800

8 1830 LMB Office Mumbai 1800

Storage Location

Definition

Storage Location is the place where stock is physically kept within a plant.

Storage location is an organizational unit that allows differentiation of stocks within a

plant.

Use

Storage locations are always created for a plant

There may be one or more storage locations within a plant

Physical inventories are carried out at storage location level

Stocks are managed only on a quantity basis and not on a value basis at storage
location level

A storage location has a description and at least one address

It is possible to store material data specific to a storage location

Structure
Plant Storage Description
location code
BMS1 LMB Main store
BRM1 LMB RM store1
BMN1 LMB Maint store
BQA1 LMB Quality Store
BFG1 LMB FG store
BSA1 LMB Shop store A
1800 (LMB Plant Hazira)
BSB1 LMB Shop store B
BSC1 LMB Shop store C
BSD1 LMB Shop store D
BSE1 LMB Shop store E
BSF1 LMB Shop store F
BSCR LMB Scrap Yard
1810 (LMB Office Faridabad) BFS1 LMB Faridabad SL1
1820 (LMB office Vadodara) BVS1 LMB Vadodara SL1
1830 (LMB Project Site1) BPS1 LMB Project SL1
 Company Code
1800

LMB Plant - Hazira LMB Office - Faridabad LMB office - Vadodara LMB project - Site1
1800 1810 1820 1830

BMS1 BRM1
LMB Main Store LMB RM Store

BMN1 BQA1
LMB Maint. Store LMB Quality Store

BFG1 BSA1
LMB FG Store LMB Shop Store A

BSB1 BSC1
LMB Shop Store B LMB Shop Store C

BSD1 BSE1
LMB Shop Store D LMB Shop Store E

BSF1 BSCR
LMB Shop Store F LMB Scrap Yard
SAP ECC 6.0 PP Module

The Production Planning & Control (PP) module of SAP takes care of Master data
needed like

Material Master (MM)

Bill Of Material (BOM)

Work Center

Routing

Production Resource & Tool (PRT)

Material Master

Definition

The material master (item Master) contains information on all the materials that a
company procures, produces, stores and sells.

It is the companys central source for retrieving material-specific data. This information
is stored in individual material master records.

Materials with the same basic attributes are grouped together and assigned to a
material type like

Raw material
Semi-finished material
Finish material
Consumables
Tools
Components
Packaging material
Spare parts
Assets
Attributes of a material are stored in various views of Material Master.

Basic data views

Sales views
Purchasing views
MRP views
Work Scheduling View
Quality management view

These views are maintained by persons belonging to respective functional departments.

Person responsible for defining the planning and production related attributes of
material master will extend the MRP1, MRP2, MRP3, MRP4, and Work Scheduling views
of material master.

Work scheduling view is created only for in-house manufactured items. (& not for
purchased items).

Data contained in Material Master with respect to PP Module (Production Planning and
Control) is used for material requirements planning, scheduling, and work scheduling.
Major planning and production specific data that we maintain in the material master
specifies the following:

Material Requirement Planning procedure, where we specify relevance of MRP and MRP
Controller for the material

B01 COIL MRP CONTRLR

B02 PANEL MRP CONTRLR
B03 HEADER MRP CONTRLR
B04 PIPE MRP CONTRLR
B05 RAW MATL MRP CNTLR
B06 BOUGHT OUT MRP CLR
B07 SUBCONTR MRP CNTRL

The lot sizing procedure to be used

DY Dynamic lot size creation

EX Lot-for-lot order quantity
FS Fixing and splitting
FX Fixed order quantity
HB Replenish to maximum stock level
MB Monthly lot size
TB Daily lot size
WB Weekly lot size
 Procurement type

E In-house production
F External procurement
X Both procurement types

Lead times, where we specify the In-house production time, planned delivery time etc
to calculate scheduled dates

The planning strategy to be used for planning the material i.e. Make to Stock or Make
to Order.

Production scheduler and production scheduling profile is used to schedule the

production order of a material with specific attributes
Bill Of Material (BOM)

Definition

The bill of material is a complete, formally structured list of the components that make
up a product or an assembly.

The list contains the item number of each component, together with the quantity and
unit of measure.

A group of parts that is assembled, and that forms either a finished product or a
component of a finished product, is an assembly.

A single-level bill of material describes an assembly by means of components and their

quantities.

An assembly with components that are themselves assemblies is a multi-level bill of

material.
The data stored in Bill of Material serves as a basis for various activities such as,

Material Requirement Planning process explodes bills of material on a certain date to

calculate cost-effective order quantities for materials

Material Provisions for production: The production storage location can be specified in
the bill of material for each component

The production planner uses bills of material as a basis for operation planning and
production control (Work Scheduling)

For Procurement, Reservation and goods issue

Product Costing: To calculate the cost of the materials required for a specific finished
product.
Work Center

Definition

A work center is where an operation or activity is carried out within a plant.

work centers are business objects that can represent the following real work centers,
for example:

Machines, machine groups

Production lines
Assembly work centers

Data in work centers is used for

Scheduling

Operating times and formulas are entered in the work center, so that the duration of
an operation can be calculated.
Costing

Formulas are entered in the work center, so that the costs of an operation can be
calculated. A work center is also assigned to a cost center.
Capacity planning

The available capacity and formulas for calculating capacity requirements are entered
in the work center.
Routing

Definition

The routing (PPS) is a description of which operations (process steps) have to be

carried out and in which order to produce a material (product).

It also contains the information about the operations and the order in which they are
carried out.

A routing also contains details about the work centers at which they are carried out as
well as about the required production resources and tools (includes jigs and fixtures).

Routings (PPS) enable to plan the production of materials (products). Therefore,

routings are used as a template for production orders as well as a basis for product
costing.

In a routing you plan

The operations (work steps) to be carried out during production

The activities to be performed in the operations as a basis for determining dates,
capacity requirements, and costs
The use of materials during production
The use of work centers
The use of Production resource & tools
The quality checks to be carried out during production.
Production Resources & Tools (PRT)

Definition

Production resources/tools (PRTs) are the capacities you require to perform an operation
at a certain work center

It is a movable operating resource used in operation to perform production.

Example: Tools, jigs & fixtures etc.

Production resources and tools are assigned to production orders for which they are
required

The system provides a function, with which you can check whether the production
resources/tools that you require for the order are available.

The PRT requirements are determined with respect to

the timeframe in which the PRT is required

the quantity of the PRT required

the usage value of the production resource/tool

Terminology Used

MRP Material Requirement Planning

A set of techniques that uses bill of material data, inventory data, and the master
production schedule to calculate requirements for materials. It makes recommendations
to release replenishment orders for material.

The main function of material requirements planning in SAP is to guarantee material

availability, that is, it is used to procure or produce the requirement quantities on time.

This process involves the monitoring of stocks and, in particular, the automatic creation
of procurement proposals for purchasing and production.
Terminology Used

Planned Order

It is an output of the MRP process which triggers the initiation of in-house production.
It is a proposal generated by the system. It specifies when material required for the
production should be made available and in what quantity.

Planned order has the following characteristics:

It is not binding and does not therefore trigger procurement directly, but it serves
for planning purposes.
It can be changed or deleted at any time (exceptions: planned orders for direct
production and for direct procurement).
Whether a material will later be produced in-house or procured externally is left
open.
For materials produced in-house, it specifies the basic dates for production.
Terminology Used

Purchase requisitions

These are the internal documents used to request purchasing department to procure a
particular quantity of a material or a service for a particular date.

Purchase requisitions are either created manually by the department responsible or

automatically by MRP. It can have release procedure.

Production Order

A production order defines which material is to be processed, at which location, at

what time and how much work is required.

It also defines which resources are to be used and how the order costs are to be
settled.

Production orders are used to control production within a company and also to control
cost accounting.
Terminology Used

Production Order Type

An order type contains control information that is needed for managing the order.
Every order is to be assigned to an order type. Each order type can have a separate
number range.

The various order types and their number range lengths are identified by business as
below;

Production Production Order Number Range No. of Digits in

Order Code Description Number Range
BFB1 FABRICATION ORDER_LMB 100000000 - 199999999 9
BRW1 REWORK ORDER_LMB 200000000 - 299999999 9
BCT1 CUTTING ORDER_LMB 300000000 - 399999999 9
BSP1 SPECIAL ORDER_LMB 10000 - 19999 5
BRP1 REPAIR ORDER_LMB 20000 - 29999 5
BTS1 TESTING ORDER_LMB 30000 - 39999 5
Terminology Used

Reservation
It is a request to the warehouse to keep materials ready for withdrawal at a later date
and for a certain purpose. This simplifies and accelerates the goods receipt process.

A reservation for goods issue can be requested by various departments for various
account assignment objects (such as cost center, order, asset, etc.)

The purpose of a reservation is to ensure that a material will be available when it is

needed. It also serves to simplify and accelerate the goods issue process.

Pick Slip
It is the list of material with qty. to pick with respect to reservation.

Cost Center
General or operating accounts are known in SAP as Cost Centers. Cost Centers are
budgeted on the fiscal year.

Cost Center Cost Center Description

82330 COIL SHOP E
82340 COIL SHOP F
82510 HEADER SHOP (FAB)
82521 PIPE (FAB)
82615 PANEL C (FAB)
82700 PANEL D (FAB)
Terminology Used

Transaction Code

Transaction let users to create, change or display data or run a report in SAP. For each
process there is a code.
Process Steps - Production Planning & Scheduling
Process Steps - Material Requirement Planning
Click on the
Log On
 User
LMBTEST06
Password - lntmhi
Create Material
Access Transaction by
Via Menu : Logistics > Production > Master Data > Material Master > Material >
Create General
Via Code : MM01
Field Name R/O/C User Action & Value

Material R Enter the Material No.

Industry Sector R Select from Possible Entries

Material Type R Select from Possible Entries

R - System Requirement, O - Optional, C - Conditional

Click here for
Possible
entries
Click here for
Basic Data 2
View
Basic Data 2 Screen is mainly use to
link Engineering Drg. Reference.
Click here for
View List
Click here for
MRP 2 View
Click here for
MRP 3 View
Click here for
MRP 4 View
Click here for Work
Scheduling View
Create Bill of Material
Access Transaction by
Via Menu : Logistics > Production > Master Data > Bill of material > Material BOM > Create
Via Code : CS01
Field Name R/O/C User Action & Value
Material R Enter the Material No.
Plant R Select from Possible Entries
BOM Usage R Select from Possible Entries
Valid From O Default Current Date
R - System Requirement, O - Optional, C - Conditional

Press Enter - Twice

Field Name R/O/C User Action & Value
Component R Enter the Material No.
Quantity R Enter the Quantity
Item Category R Select from Possible Entries
R - System Requirement, O - Optional, C - Conditional
Create Work Center
Access Transaction by
Via Menu : Logistics > Production > Master Data > Work Centers > Work Center > Create
Via Code : CR01
Field Name R/O/C User Action & Value
Plant R Select the plant code
Work Center R Enter the work center code
Work Center Category R Select from possible entries
R - System Requirement, O - Optional, C - Conditional
 Formula for cal.
total time required
for each one
FORMULA
SAP001 Setup
SAP002 - Machine * Operation quantity / Base quantity / Operation splits
SAP003 - Labor * Operation quantity / Base quantity / Operation splits
Create Routing
Access Transaction by
Via Menu : Logistics > Production > Master Data > Routings > Routing > Standard Routing > Create
Via Code : CR01
Field Name R/O/C User Action & Value
Material R Enter the material Code
Plant R Select the plant code
Key Date O Default current date
R - System Requirement, O - Optional, C Conditional

Press Enter
Transaction Code List

Business
Business Process Step T Code Activity
Process
CS01 Create BOM
BOM Create Change
CS02 Change BOM
CS03 Display BOM
BOM _Display CS11 Display BOM Level by level
CS12 Multilevel BOM

Master Data CA01 Create Routing

Routing Create Change
Creations CA02 Change Routing
Routing _Display CA03 Display Routing
CR01 Create Work Center
Work Center_Create_Change_Delete
CR02 Change Work Center
CR03 Display Work Center
Work Center Display
CR05 Work center List
 Transaction Code List

Business
Business Process Step T Code Activity
Process
Running Material Requirement Planning for
MD51 Project
Execute MRP
MD02 MRP - Single-item, Multi-level -
MD03 MRP-Individual Planning-Single Level
MTD020_B
Material MD05 Individual Display Of MRP List
Requirement
MD06 Collective Display Of MRP List
Planning Project
Based MD04 Display Stock/Requirements Situation
Evaluate MRP Results
MD07 Current Material Overview
MD09 Pegged requirement List for an MRP List
MD4C Multilevel Order progress Report
Transaction Code List

Business Process Business Process Step T Code Activity

CO40 Convert Planned orders to Prdn Orders
CO41 Coll. Conversion of Planned Orders to Prdn Orders
MD14 Individual Conversion of Planned Order to PRs
MD15 Collective Conversion Of Plnd Ordrs.
CO47 Order comparison
MD11 Create Planned Order
Create_Change_Release_Complete
MD12 Change/Delete Planned Order
Production Orders
CO01 Create production order
MTD010_B
Production Planning, CO07 Create order without a material
Scheduling and CO10 Production order with project
Control
CO02 Change Production Order
CO05N Release Production Orders
COHV Mass Processing Production Orders
MD13 Individual Display of Planned Orders
MD16 Collective Display of Planned Orders
Display_Print Production Orders CO03 Display Production Order
COOIS Production order information system
CO04N Print Production Orders
 Transaction Code List

Business Process Business Process Step T Code Activity

MB21 Create a Material reservation
MB22 Change Material Reservation
MTD040_B Process MB23 Display a Material Reservation
for Material
Material Reservation and Withdrawal MB25 View Material Reservation List/ Reports
Withdrawal from
Stores MB26 Create Pick list-Against many Production orders
CO27 Pick List against a Production order
ZMTD_MTLRES Material Reservation list
ME51N Create a Manual Purchase requisition
Create Change PR
ME52N Change a Manual Purchase requisition
Display Purchase Requisition ME53N Display a Manual Purchase requisition
Purchase Requisitions Report on Purchase requisitions (General
reports) ME5A General Display of PR List (Closed, Released etc)
ME54N Individual Release of Purchase requisition
Purchase Requisition Release
ME55 Collective Release of Purchase requisitions
WBS Work Breakdown Structure

A work breakdown structure (WBS) is a model of the work to be performed in a

project organized in a hierarchical structure. The WBS is an important tool which
helps you keep an overview of the project:

It forms the basis for organization and coordination in the project.

It shows the amount of work, the time required, and the costs involved in the
project.
It is the functional basis for further planning steps in a project, such as process
planning, cost planning, scheduling, date and capacity planning, or costing, as well
as project control.

Example: Project Def. 1st Level 2nd Level WBS 3rd Level WBS
11001A - 12 - 100 - 0001

11 Vessel 100 Header With Stub & attachments

12 Furnace 200 Coil & Tube
13 Super Heater 300 - Furnace Panel with attachments
14 Reheater 400 Pipe with attachments
15 Economizer