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SAP PP/QM

Configuration
INDEX

1. OVER VIEW:- 4

2. GETTING INTO THE CONFIGURATION AREA OF SAP 8

3. MASTER DATA CONFIGURATION - BOM 12

3.1 Define BOM Usage 12

3.2 Define Default Values for item status 16

3.3 Define Allowed Material type for BOM Header 20

3.4 Define BOM Status 23

3.5 Define Item Category 26

3.6 Define Allowed item type for BOM Item 30

3.7 Define Explosion types 33

3.8 Define Order of Priority 36

3.9 Define Application 40

3.10 Define Alternative Determination for Multiple BOM 44

3.11 Alternative determination in related application Area 46

3.12 Define User-specific setting 47

4. WORK CENTER 50

4.1 Define Work center Category 51

4.2 Define Field Selection 54

4.3 Define Task List usage 58

4.4 Define Parameters 61

4.5 Define Standard Value 65

4.6 Determine Person Responsible 69

4.7 Define Control Key 71


5. CAPACITY PLANNING 76

5.1 Define Capacity Category 76

5.2 Determine Capacity Planner 78

5.3 Define Shift Sequence 81

5.4 Define Formula Parameters for Work centers 88

5.5 Define Formula for Work centers 91

5.6 Define Factory calendar 95

5.7 Define Default Capacity 106

5.8 Define Work center screen sequence 109

6. ROUTING 112

6.1 Define Standard value description in operation over view 113

6.2 Define Routing Status 115

6.3 Define Task List usage 117

6.4 Define Reduction Strategy 119

6.5 Define User Fields 123

6.6 Define Routing Selection Automatic 127

7. SUMMARY:- 130
1. Over view:-

Production Planning module configuration and relevant


reports are demonstrated in this book.

PP module contains three types of manufacturing methods.

o Discrete

o Repetitive

o Process Industries.

Discrete: -

Discrete production method is applicable to the manufacturing


setup where small lots are manufactured with frequent
changes in the settings.

Manufacturing is accounted through Production orders.

Repetitive: -

This method is applicable, where products are manufactured


with least change or no change in the manufacturing process
over a long period of time.

Manufacturing is accounted through backflush.

Process Industries: -

It is similar to the Discrete but instead of routing, It uses


master recipe where in Process messages are maintained.

It is more appropriate to the food industries and processing


units where instructions are used during the process.
Manufacturing is accounted through process orders.

Configuration setting in PP module can be classified as below.

• Master Data related settings

• Planning Related Settings

• Production Execution related settings

We will discuss about the Master data related configuration


setting in detail.

Important Master data in PP module are

• Bill Of Material

• Work center

• Routing

Bill Of Material (BOM):-

BOM can be defined as “a list of required components along


with the required quantity essential to make any product”.

Important Technical details related to BOM are

Application of BOM

Usage of BOM

Status of BOM

Selection of BOM
Configuration setting related to BOM will enable to align the
BOM master data in line with the business requirement blue
print document.

Work Center:-

Machines, group of labour, processing unit are defined as


work center in SAP.

Work center contains the

Capacity Requirements

Scheduling details

Costing details

Configuration setting related to work center will enable to


define the SAP system according to the business requirement
blue print document.

Routing:-

Sequence of operation, work centers to be used and the


duration required for each operation to manufacture the
product is defined in routing.

Important Technical details related to Routing are

Usage of Routing

Status of Routing

Selection of Routing
Configuration settings related to Routing will enable to align
the Routing master data in line with the business requirement
blue print document.

Friends, the configuration settings related to each master data


are explained in detail.

Example:-

BOM

Item category configuration


Automatic alternate selection of BOM
Configuration of BOM usage
Configuration of allowed item type for BOM

Work Center

Configuration of field selection in work center


Configuration of formula to schedule and calculate cost
Configuration of standard value key
Configuration of shift sequence

Routing

Configuration of Automatic Routing selection


Configuration of Routing usage
Configuration of reduction strategy
Configuration of user defined fields in Routing
2. Getting into the Configuration area of SAP

BACKGROUND

To make the configuration in SAP, one has to have


authorization to perform transaction in configuration mode.

It is the place where every details are maintained to make the


transaction happen as per the business mapping.

SCENARIO
It is required to configure various settings in SAP.

INSTRUCTIONS
To do configuration, first one has to logon to the system, and
go to the IMG mode. How to logon to IMG mode is explained
below. From next document onwards, it is mentioned as IMG.

How to get in to the SAP IMG mode?

1. Type spro in the SAP main screen dialog box,


2. Click
3. Click on
Note:- Production related configurations are available under
Node.

4. Click
5. You are inside the IMG for Production Planning Module.

If the menu path is mentioned as “IMG” in the further


topics, you have to follow the above step to reach this place.
3. Master Data Configuration - BOM
3.1 Define BOM Usage

BACKGROUND

This configuration setting enables to define Bill Of Material


(BOM) usage.

BOM usage defines the usage of BOM in specific application


area in the SAP.

Example, there can be a separate BOMs for

Ø Design,

Ø Production

Ø Costing.

In this way, each area is dealing only with the specific data it
requires.

Example:

Ø The design BOM includes all the components of the


product and their technical data from the design point of
view. This BOM is generally not linked to any order.

Ø The production BOM contains all the items required from


the production and assembly point of view. Only items
relevant to production, for which production data (such
as the issue storage location) can be entered, are
required. A production BOM does not contain any
packaging materials required in the shipping department.
SCENARIO

Create new BOM usage.

Note:-

Standard BOM usage available with SAP is sufficient. However


any new BOM usage can be created.

INSTRUCTIONS
Follow the Menu Path: IMG → Production → Basic data → Bill
of materials → General data à BOM Usage à Define BOM
Usage

1. Click

2. Click

3. Enter usage value; it can be either numeric or alphabet.


It is suggested to be numeric.
4. Select +,- or . to indicate to which area this BOM is
meant for like Production, Engineering, Spare, Plant
Maintenance, Sales or for costing relevancy.

Note:-Based on this, during BOM explosion, entire


dependent requirements are also planned,

5. Enter Usage text

6. Click Save

Impact of this configuration in Master Data /


Transaction

When creating the BOM, key defined here will appear in the
BOM Usage field.

According to the requirement, BOM usage key has to be


selected during BOM Creation.

Click Match code or F4 in BOM usage field, to select the


desired BOM usage.

Transaction code to create BOM is CS01


3.2 Define Default Values for item status

BACKGROUND

This configuration setting enables to define default values for


item status.

Every item in the BOM can be defined whether it is subjected


to
Costing

Sales

Production

Spare part

This configuration setting is used to indicate whether the BOM


component along with the BOM usage.

Ø is to be considered for costing in this BOM or not,

Ø is relevant to sales (normally used in Variant


configuration),

Ø is a spare part

Ø is related to Production

SCENARIO

Set the default value for items in BOM.

INSTRUCTIONS
Follow the Menu Path: IMGàProductionàBasic dataàBill of
materialsàGeneral dataàBOM usageàDefine default values
for the item status

1. Click

2. Click

3. Enter Usage value

4. Update the following fields


Field Name Description Value
BOM usage Field defining the Enter value e.g. 1
BOM usage
Prod Indicating that the Make tick in the
BOM item is related check box
to Production
Eng/des Indicating that the Leave blank.
BOM item is related
to Engineering and
Design
PM Indicating that the Leave blank
BOM item is related
to Plant
Maintenance
Sales Indicating the item Leave blank.
is related to Sales Normally used in
and it will appear variant
in the sales order. configuration.
Relevan Relevant to costing Select X , indicating
relevant to costing.

5. Click Save .

Impact of this configuration in Master Data /


Transaction

Example:-

BOM usage defined 1 indicating relevant to production. The


item status as configured such that all items

Ø are relevant to production

Ø can be relevant to costing

In this example, the indicators are checked as follows:

Ø The Indicator: item relevant to production cannot be


deselected (required entry). In the BOM maintenance
functions, this indicator is set automatically for all items
and cannot be cancelled.

Since the item can be relevant to costing, the default value


X (fully relevant to costing) can be set for the Indicator for
relevance to costing. This value can be overwritten in the
BOM maintenance functions.

BOM item level default setting will appear as per the setting
done here.
3.3 Define Allowed Material type for BOM Header

BACKGROUND

This configuration setting enables to control the creation of


BOM to the specific material types.

This configuration is done to the combination of BOM usage


and Material type.

When a new bill of material is created, the system checks the


material type as follows:

§ The fully qualified (non-generic) entries are checked first.


The generic entries are checked afterwards.

§ You can define that the use of the material type in


combination with Creation of BOM with respect to material
type can be controlled.

Example, it may not be allowed to create BOM for Raw


material. (Material type ROH).

Creation of BOM to material type ROH can be restricted in the


system.

SCENARIO

Creation of BOM for Material type ROH should not be allowed.

INSTRUCTIONS

Follow the Menu Path: IMGàProductionàBasic dataàBill of


materialsà General dataàDefine allowed material type for
BOM header
Click

Follow the below steps to create new entries.


1. Click

Update required and optional fields:

Field Name Description Value


BOM Usage ### BOM usage according 1 for production
to the application BOM
Material type Header Material type Enter ROH
header to which BOM
creation has to be
restricted
Allowed Select the symbol Select Negative
indicator to mention symbol to
allowed or not allowed RESTRICT BOM
creation.

### Generic entry “*” can be made instead of a specific BOM


usage. This indicates, it is applicable to all possible BOM
usages.

2. Click Save .

Impact of this configuration in Master Data /


Transaction

When a new bill of material is created, the system checks the


material type as follows:

§ Non-generic entries are checked first. The generic entries


are checked afterwards.

Error message will be displayed when creating BOM for RAW


material.
3.4 Define BOM Status

BACKGROUND

This configuration setting enables to define BOM status.

BOM status is used to define whether the BOM can be used by


any application area or not.

Example: -

Ø In the costing areas in a company, the BOM is exploded


according to the application. While defining the BOM
status, usage in costing area will be defined.

Ø In MRP, the following indicators are checked directly from


the definition of the BOM status:

- Explosion in MRP

- Released for orders

MRP only reads BOMs whose BOM status has at least one of
these indicators.

BOM status defines whether

The BOM is active or inactive.

SCENARIO

BOM need to be created for certain for product whose BOM


can be finalized only after some trial and error.
While it is in preparation it is required not to be used by any
application. Status “In preparation” has to be created.

INSTRUCTIONS

Follow the Menu Path: IMGàProductionàBasic dataàBill of


materialsà General dataàDefine BOM status

1. Click

…..continuation of the above screen’s right side balance


portion

2. Click

3. Enter usage value. E.g. 6.


4. Leave all the check box as EMPTY.

5. Mention description as “In preparation”

6. Click Save .

Impact of this configuration in Master Data /


Transaction

BOM with status 6 can not be used for any application.


3.5 Define Item Category

BACKGROUND

This configuration setting enables to define item category.

The item category defines the attributes and functions of a


BOM item. It controls field and screen selection for detail
screens in BOM maintenance.

BOM can contain different type of items related to


manufacture the finished product. There are

Ø Pipeline items – i.e. items which are received


through a pipeline from supplier not related to
inventory

Ø Stock items – i.e. materials are always issued from


stock which are relate to inventory

Ø Document item – i.e. Documents are referred in the


BOM as a item trough the Document Management
System (DMS)

Ø Text item – i.e. brief note about the material usage


can be maintained as a Text item. This will be
useful in a long BOM to indicate any specific
assembly.

The above different items are defined through item category in


the BOM.
SCENARIO

Define item category to meet the situation as per the below


example.

Example: - An Item code may be defined as a normal item in


the material master. The same item code for one specific BOM
has to be treated as a phantom material.

In such a situation, item category inside the item detail of the


BOM will be mentioned as a phantom assembly. It is now
applicable only to this BOM.

Let’s look at the standard setting for item category.

Item categories defined by SAP will be sufficient in most of the


cases. If required, any new item category can be created.

INSTRUCTIONS

Follow the Menu Path: IMGàProductionàBasic dataàBill of


materialsà Item dataàDefine item category

1. Click
2. click

3. Update the following fields

Field Name Description


Item category Desired item category to be
mentioned in the BOM
Inv.Mgmt Relevant to Inventory
management
TxtItem It is text item
Vsl Variable size item
Document Item To mention Document
Cls Item To mention as Class item,
used in Variant configuration
PM Str To mention as PM structure
element
IntraM To mention Intra Material
normally used in Master
Recipe-PPPI
+/- sign Negative value allowed in the
BOM or not? This is required
to indicate the by product.
SubI To indicate sub items are
supported.
Item Ctrl Sequence of Item detail
screen.

4. Select check boxes according to the business


requirement

5. Mention Item category Text

6. Click Save .
Impact of this configuration in Master Data /
Transaction

While creating the BOM, required item category may be


selected.
3.6 Define Allowed item type for BOM Item

BACKGROUND

This configuration setting enables to control the item type


which can be entered as a component in the BOM.

Restriction to BOM item level can be done.

Example: - It may be required NOT to allow any Finished


Goods material type (FERT) to be a member of the BOM.

SCENARIO

It is required to restrict FERT material to be the member of the


BOM.

INSTRUCTIONS

Follow the Menu Path: IMGàProductionàBasic dataàBill of


materialsà Item dataàDefine allowed material type for BOM
items

1. Click
2. Click

3. Update the following fields

Field Name Description


BOM usage BOM usage to define the
application area
Mat tpe header Header material type to which
this restriction is to be
applicable
Material type BOM Item type inside the BOM to
item be restricted.
Allowed + sign to permit and –sign
NOT to permit

4. Click Save .

Impact of this configuration in Master Data /


Transaction
While creating the BOM, only allowed component type in this
setting are allowed to be a member of the BOM item.
3.7 Define Explosion types

BACKGROUND

This configuration setting enables to define how the


component in Bill Of Material is to be exploded during
processing.

This configuration setting governs BOM Component

• To be considered for planning or not

• To be considered in Long Term Planning or not

• Phantom assembly is to be planned or not

• Direct production should be activated or not

SCENARIO

For Long term planning, by default all the BOM items are
considered.

If there are more items in a BOM and it is required to plan


only very specific items in the LTP.

Then at BOM level against the item, LTP off indicator can be
set. Now during LTP run, only relevant items are planned in
LTP and all items are planned in MRP run.

INSTRUCTIONS
Follow the Menu Path: IMGàProductionàBasic dataàBill of
materialsà Item dataàDefine Explosion types.

1. Click

Follow the below steps to create new entries.

2. Click

3. Update the following fields


Field Name Description
Explosion type BOM Explosion type, free
entry.
Description Description of the Explosion
type key.
Phan.off Phantom assembly is not
applicable to this item if this
indicator is set.
Plng off Material components are not
planned till the Sales order is
created to this BOM item if this
indicator is set
DP Off Direct production functions are
switched off if this indicator is
set.
LTP Off This will exclude the item in
LTP calculation if this indicator
is set.
Indi/Coll It is to specify, whether to
group the dependant
requirement together or not

4. Maintain the entries in the check box as per the


requirement

5. Click Save

Impact of this configuration in Master Data /


Transaction

BOM Item level explosion type can be defined. Key defined


here will appear in the screen to select.
3.8 Define Order of Priority

BACKGROUND

This configuration setting enables to define order of priority for


Bill Of Material to be selected during MRP and Production or
process order creation.

Different Bill Of Material can be created for

• Production

• Costing

• Engg / Design

Selection priority must be defined to pickup the right Bill Of


Material to the right application.

Link between this configuration and Master Data is


established as below:-

• Selection priority will be defined through selection id.

• Selection id will have the sequence of BOM usage.

• BOM usage will be mentioned in the BOM

• Selection id of BOM will be mentioned in the order type


and MRP plant Parameter.
SCENARIO

There are more than one BOM (BOM usage) They are

1 for Production,

2 for Engg/Design

3 for Costing.

It is required to define the order of selection for BOM.

INSTRUCTIONS

Follow the Menu Path: IMGàProductionàBasic dataàBill of


materialsà Alternative determinationàDefine order of priority
for BOM usage.

1. Click
Click to create additional order of priority for BOM
usage.

2. Update the Following fields


Field Description
Selection Id Selection ID numeric
number to be entered.
Selection Priority With in this selection
ID, priority to be
mentioned
BOM usage With in this selection
ID and Priority,
relevant BOM usage to
be selected.

3. Click Save .

Impact of this configuration in Master Data /


Transaction

During MRP run, production order or process order creation


BOM selected according to this selection id priority.
3.9 Define Application

BACKGROUND

This configuration setting enables to define BOM Application.

BOM application controls use of BOM in a specific area.

Areas like MRP run, cost estimate calculation etc.. will use the
BOM of its own respective BOM application.

SCENARIO

BOM display at multiple levels (transaction code CS12) can be


done for different BOM application. It is required to display
only the costing BOM to certain users. Separate BOM
application to be created to display the BOM related only to
costing.

Note: - BOM with usage for costing should be available. i.e.


with the right usage for costing.

INSTRUCTIONS

Follow the Menu Path: IMGàProductionàBasic dataàBill of


materialsà Alternative determinationàDefine Applications

1. Click
To view the details, select the line and click

2. Update the Following fields


Field Description
BOM Application Enter any four digit BOM
application area
Description Enter description
Selectin ID Selection ID through which
BOM selected
Alternative Det.Multi.BOM To select for alternative BOM
if multiple BOM is available.
Tick this check box
Production Version If there is a production
version, that is used as a
selection criteria.
MRP explosion Leave Blank
Rel planned orders Leave Blank
Release costing Tick this check box
Other check boxes Leave Blank

3. Click Save .

Impact of this configuration in Master Data /


Transaction

When displaying the BOM through transaction code CS12,


Right BOM usage will be displayed according to the settings
maintained here. In this example, with BOM application, only
the costing BOM will be displayed.
Press F4 in BOM application, where all the available setting
will be displayed.
3.10 Define Alternative Determination for
Multiple BOM

BACKGROUND

This configuration setting enables to define automatic


selection of right Bill Of Material during MRP and production
order or process order creation, when there are more than one
Bill Of Material to a material.

SCENARIO

Specific alternative BOM for some materials are to be exploded


during the MRP and other production order process for
specific duration.

INSTRUCTIONS

Follow the Menu Path: IMGàProductionàBasic dataàBill of


materialsà Alternative determinationàDefine alternative
determination for multiple BOM.

1. Click
Follow the below steps to create new entries.

2. Update the Following fields


Field Description
Material Enter material code number
to which alternate BOM is to
be exploded
Plant Plant where it is applicable
BOM Usg BOM usage
Valid From From date of BOM explosion
Alt BOM Alternate BOM number which
is to be exploded.

3. Click Save .

Impact of this configuration in Master Data /


Transaction

Right BOM according to the setting here will be exploded


during MRP and Production processing.
3.11 Alternative determination in related
application Area

BACKGROUND

Similar to the above alternate defining in production area, for


other areas like Inventory, MRP, Costing, Sales and
Distribution and Plant Maintenance can be maintained.

Only the menu path is given here and the rest of the settings
are similar to above.

INSTRUCTIONS

Follow the Menu Path: IMGàProductionàBasic dataàBill of


materialsà Alternative determinationàAlternate
determination in related application area

àDefine alternate determination for inventory


àProduction
àMRP
àCosting
àSales and distribution and
àPlant maintenance
3.12 Define User-specific setting

BACKGROUND

This configuration setting enables to configure the parameters


specific to the user.

Following parameters

Item category

Item increment

BOM Reporting specification are can be set for a specific


user.

INSTRUCTIONS

Follow the Menu Path: IMGàProductionàBasic dataàBill of


materialsà Define user-specific settings

Click

To view more details, select the required row and click

Click to create new entries


Select the entries and tick the check box as shown above.

Field name Field value and description


User Name of the user to whom the
default settings are to be
done.
Item increment While creating the BOM,
incremental number to be
displayed.
Mat. Item cat. Item category to be displayed
by default.
While using the where used
list query, this check box in
the selection box will appear
as ticked by default.
While using the where used
list query, this check box in
the selection box will appear
as ticked by default.

Click

Impact of this configuration in Master Data /


Transaction

User SAPUSER when creating the BOM, this default setting


will appear. This will help to reduce BOM creation time.
4. Work Center

Machines may be referred as work center. It is defined as the


place where operations are carried out.

Apart from machine, group of persons (e.g. in maintenance


department, certain group of people may be employed for any
machinery movements etc.) may be treated as a labor work
center.

Data in work center used for

Ø Scheduling – start and end of operation

Ø Costing – Cost incurred during production

Ø Capacity planning - to plan the required capacity

Let’s see the configuration related to Work center.


4.1 Define Work center Category

BACKGROUND

This configuration setting enables to define work center


category.

Work center category is the major classification of work center


by SAP. E.g. Machine, processing unit, labor are defined as a
different work center category.

Work center category controls the field selection inside the


work center.

SCENARIO

Create a work center category to mention skilled labor work


center category.

INSTRUCTIONS

Follow the Menu Path: IMGàProductionàBasic dataàWork


centerà General Data àDefine work center category.

1. Click
2. Click

3. Update the Following fields


Field Description
Cat Capacity category. Any new
value may be entered. E.g.
ZLAB
Description Description of the desired
capacity category. E.g. Skilled
Labour category
Field Selection Contains the fields required to
this capacity category. Enter
standard SAP value according
to the capacity category. E.g.
0001
Screen sequence Sequence of tab screen to be
appeared in the work center
master data. Enter the
standard SAP value. E.g. 0001

4. Click Enter
5. Select Created capacity category

6. Double Click

7. Click

8. Enter Application – Area in SAP where this work center


category can be used. E.g. P – Routing; C - Master
Recipe; Q - Quality task list etc.

9. Note:- If this work center category is to be applicable to


all, maintain all the entry in this application field.

10. Click .

Impact of this configuration in Master Data /


Transaction

When creating the work center for skilled labor, work center
category is to be mentioned as it is a mandatory entry.
4.2 Define Field Selection
BACKGROUND

This configuration setting enables to make the field in work


center master data as

Mandatory

Optional

Highlight

Hide

Field selection will be used to make certain field as mandatory


entry or to hide certain fields during creation of work center
master data.

SCENARIO

Make field person responsible for work center category 0007


as mandatory field.

INSTRUCTIONS

Follow the Menu Path: IMGàProductionàBasic dataàWork


centerà General Data àDefine field selection.

1. Click
2. Double click Basic data

3. Double click Person responsible

4. Click Field selection Req. radio button for the required


work center category. Contents column indicate the work
center category.
Note:- From this screen it may be noted that person
responsible entry is mandatory for work center category
0001,0002 and 0008

5. Click to add more entry.

6. Enter content 0007 or any work center category.

7. Click radio button Req.


8. Click

9. Click

Impact of this configuration in Master Data /


Transaction

When work center with category 0007 is created, person


responsible field become mandatory.

Note:- Field selection procedure is same for Routing as well.


4.3 Define Task List usage

BACKGROUND

This configuration setting enables to define the task list usage


to the work center.

Usage of work center specific to the task list (i.e. only in the
master recipe or Routing) can be defined to restrict its usage.

SCENARIO

Define the task list usage to the work center category 0007 to
be used in Routing and in Reference Operations set only.

INSTRUCTIONS

Follow the Menu Path: IMGàProductionàBasic dataàWork


centerà General Data àDefine task list usage.

1. Click
2. Select

3. Double click Task list type

4. Click
5. Update the Following fields
Field Description
Task List type N for Routing and S for
Reference Operation set

6. Click Save .

Impact of this configuration in Master Data /


Transaction

When creating Work center usage is to be mentioned as 001.

Once this is maintained, then it will not be possible to use this


Work center in Master Recipe or in Rate routing.
4.4 Define Parameters

BACKGROUND

This configuration setting enables to define Parameter


(activities) for formula.

Parameter is one of the required settings to calculate the


conversion cost incurred in the Work center during
manufacturing.

Work center while in use can consume

• Power

• Labour

• Setup time

• Depreciation

• Steam etc.

The above costs incurred during conversion will be captured


through the activity. Parameter is the structure to capture this
activity.

This will be assigned to the standard value key. Standard


value key will be assigned in the work center.

SCENARIO

Create a Parameter. Note:- Standard SAP setting is sufficient.


Let us discuss the creation of new parameter.
INSTRUCTIONS

Follow the Menu Path: IMGàProductionàBasic dataàWork


centerà General Data àStandard ValueàDefine Parameters.

1. Click

2. Click
3. Update the Following fields
Field Description
Parameter Parameter to hold the value.
Any alphanumeric six digit
may be entered. E.g. LABOUR
Origin Place where from the value is
to be taken. E.g. To indicate
value to be taken from task
list maintain 2 in this field.
Short key word Short description
Key work Key word to identify
Dimension Dimension of the parameter.
E.g. Any thing related to
Duration may have TIME as
dimension.
Standard Value Unit Unit of this parameter. E.g.
Time dimension may have
unit as MIN.

Note: - If any parameter for which there is no unit, it may be


mentioned as no unit.
4. Click Save .

Impact of this configuration in Master Data /


Transaction

Link between the parameter and the master data is as below.

a. This parameter will be assigned to the standard value


key.

b. Standard value key will be attached with the work center.

c. Work center will be attached in the task list. I.e. in the


routing or in the master recipe.

d. Standard value (i.e. duration of labour hours required)


will be maintained in the task list as a master data.
4.5 Define Standard Value

BACKGROUND

This configuration setting enables to define the standard value


key.

Standard value key is very essential to capture the cost


incurred in the work center.

Standard value key will contain the activities. One standard


value key can contain up to six activities. Each activity refers
to the cost.

Example:-

• Production cost

• Set up cost

• Labour cost

• Quality Cost

• Power cost

• Steam cost

One work center can have only one standard value key.

SCENARIO

Create a standard value key to have the activities of setup,


machine, labor, and over head.
INSTRUCTIONS

Follow the Menu Path: IMGàProductionàBasic dataàWork


centerà General Data àStandard ValueàDefine standard
value key.

1. Click

2. Click
3. Update the Following fields
Field Description
Standard value key Enter any alpha numeric to
indicate standard value key.
E.g. STD1
Description Maintain standard value key
description. E.g.
setup/machine/labor/Power
Parameter Maintain the parameters. Up
to six parameters can be
maintained.
Tick this check box to
generate formula.

4. Click Save .
Impact of this configuration in Master Data /
Transaction

When creating the work center, standard value key STD1 to be


mentioned.
4.6 Determine Person Responsible

BACKGROUND

This configuration setting enables to define the person


responsible for work center.

Every work center will have a responsible person to schedule


the work load to that machine and to monitor the working
hours and output from that work center.

This field can be used for reporting purpose also.

SCENARIO

Create a work center responsible person.

INSTRUCTIONS

Follow the Menu Path: IMGàProductionàBasic dataàWork


centerà General Data àDetermine person responsible

Click

Click
Update the Following fields
Field Description
Plant Name of the plant e.g. IND6
Person Responsible Three digit alpha numeric
entry to mention the
responsible person to the
work center. E.g. INP
Person responsible description Detailed description of the
person responsible. E.g. In-
charge Processing Unit

Click Save .

Impact of this configuration in Master Data /


Transaction

When creating the work center, person responsible has to be


entered.
4.7 Define Control Key

BACKGROUND

This configuration setting enables to define control key.

Control key governs

• Scheduling of operation

• Cost calculation for an operation

• Capacity calculation for an operation

• Confirmation for an operation

Control key is mapped with the work center in the task list
(i.e. in the routing and in the master recipe).

SCENARIO

Create a control key with confirmation as mandatory and it


should calculate the cost and capacity, it should also schedule
the operation.

INSTRUCTIONS

Follow the Menu Path: IMGàProductionàBasic dataàWork


centerà Routing Dataà Define control key

1. Click
2. Click
3. Update the Following fields
Field Description
Control Key Enter any alphanumeric four digit
key. E.g. YP01
Description Maintain description of this control
key. E.g.
Sch/Cost/Capreq/Confreq/AutoGR
Indicators Tick the check box as shown above
in the screen.
Tick in the Check box will perform
the respective function to the
operation / phase which is having
this control key.

4. Click Save .
5. Click to maintain any long text to this
control key.

6. Maintain the long text.

7. Click Save .

8. Click

9. Click if you get the Other language screen.

10. Click Save .

Impact of this configuration in Master Data /


Transaction

Link between control key and Transaction:-

Control key is attached in the task list with work center


for each operation
While performing order creation, confirmation, MRP run
system will behave according to this configuration
setting.
5. Capacity Planning
5.1 Define Capacity Category

BACKGROUND

This configuration setting enables to define the capacity


category.

Capacity category will differentiate the type of capacity used in


the work center.

Capacities can be

• Machine

• Labor

• Processing unit

Capacity category and capacity details are assigned to the


work center.

SCENARIO

Create a capacity category.

INSTRUCTIONS

Follow the Menu Path: IMGàProductionàBasic dataàWork


centerà Capacity Planningà Define capacity category

1. Click

2. Click
3. Update the Following fields
Field Description
Category Capacity category. E.g 001
Description Description of capacity
category e.g. machine

4. Click Save .

Impact of this configuration in Master Data /


Transaction

Capacity category is to be mentioned in the capacity header


detail in the work center.
5.2 Determine Capacity Planner

BACKGROUND

This configuration setting enables to define the capacity


planner.

Capacity planner is the person who is responsible to plan and


schedule the specified capacity.

SCENARIO

Create a capacity planner.

INSTRUCTIONS

Follow the Menu Path: IMGàProductionàBasic dataàWork


centerà Capacity Planningà Determine capacity planner

1. Click
2. Click

3. Update the Following fields


Field Description
Planner Enter capacity planner. E.g.
IN6
Description Enter capacity planner
description. E.g. Processing
unit plan

4. Click Save .

Impact of this configuration in Master Data /


Transaction

Capacity planner is to be mentioned in the capacity header


detail in the work center.
5.3 Define Shift Sequence

BACKGROUND

This configuration setting enables to define shift sequence.

Shift sequence is used to define the specific working pattern.


I.e. weekly holidays, number of shift and working hours of
each shift.

Work center capacity is calculated from its working hours


defined in the capacity header details of the work center.

There are mainly three ways to define capacity for each work
center.

• Normal capacity

• Available Interval capacity

• Interval and shifts

Normal capacity is defined through the working hrs and break


in the capacity header

Available interval capacity is the capacity available for any


specific duration; it is defined at the capacity header detail

Interval and shifts is defining the shifts in which the machine


or industry works.

SCENARIO

Create a shift sequence with two shifts a day and Thursday


and Friday as weekly holiday.
INSTRUCTIONS

Follow the Menu Path: IMGàProductionàBasic dataàWork


centerà Capacity Planningà Available capacityà Define shift
sequence

1. Click

2. Click

3. Update the Following fields


Field Description
Grouping Enter shifting grouping. E.g.
SG
Description Enter description E.g. Special
Grouping

4. Click two times

5. Select the Grouping

6. Double Click

7. Click

8. Update the Following fields


Field Description
Break Enter the Break name. E.g.
IN6B
Break Number Enter the break number E.g. 1
Description Description of break. E.g.
First shift break
Start Break start time
End Break end time

9. Click (Complete all the break required as explained


above)
10. Click

11. Select the break 1 line

12. Double click

13. Click

14. Update the Following fields


Field Description
Shift Enter shift name. E.g.1SHF
Shift text Enter shift definition. E.g.
First shift
Start date Starting date of the shift
End date End date of the shift
Start time Starting time of the shift
End Time End time of the shift
Break Enter the Break schedule. E.g.
IND6

15. Click

16. Select the 1SHT line

17. Double click

18. Click
19. Update the Following fields
Field Description
Sequence Enter the sequence No. E.g.
01
Shift No. Shift number in the sequence.
E.g. 1
Description Description of the shift
sequence. E.g. Two shift per
day
Day1 to Day 7 Maintain the desired shift
definition the day to follow.
E.g. 1SHT and 2SHT in all
days except Thursday and
Friday.

20. Click

21. Click Save .

Impact of this configuration in Master Data /


Transaction

This shift sequence can be maintained as an interval of


available capacity.
This can be maintained in the work center capacity header
detail.

Once this is assigned, working days and hours to this work


center will be as per this shift sequence.
5.4 Define Formula Parameters for Work centers

BACKGROUND

This configuration setting enables to define the parameter for


the formula.

Formulas are to be defined to calculate

Cost

Capacity requirements

Schedule the operation

Formula parameter will be used in the formulas. Formulas are


used in the work center capacity view, scheduling view and
costing view to

Calculate capacity

Schedule the operation

Calculate the activity cost.

Note:-

This configuration is similar to defining the parameter


explained above. However it is reproduced for your quick
reference here also.

SCENARIO

Define formula parameter.


INSTRUCTIONS

Follow the Menu Path: IMGàProductionàBasic dataàWork


centerà Capacity Planningà Work center formulasà Define
formula parameter for work center

1. Click

2. Click

3. Update the Following fields


Field Description
Parameter Parameter to hold the value.
Any alphanumeric six digit
may be entered. E.g. LABOUR
Origin Place where from the value is
to be taken. E.g. To indicate
value to be taken from task
list maintain 2 in this field.
Short key word Short description
Key work Key word to identify
Dimension Dimension of the parameter.
E.g. Any thing related to
Duration may have TIME as
dimension.
Standard Value Unit Unit of this parameter. E.g.
Time dimension may have
unit as MIN.

Note: - If any parameter for which there is no unit, it may be


mentioned as no unit.

4. Click Save .

Impact of this configuration in Master Data /


Transaction

Formula parameter defined here will be used in the formulas.


5.5 Define Formula for Work centers

BACKGROUND

This configuration setting enables to define the formulas.

Formulas are used in

• Calculate capacity requirement

• Schedule the start and end of the operation

• Calculate the cost

Formulas will be assigned in the work center capacity view,


scheduling view and in costing view.

SCENARIO

Create the formula to calculate the machining time.

Note: - standard formula given by SAP will meet many


requirements. Let’s discuss the creation of formula.

INSTRUCTIONS

Follow the Menu Path: IMGàProductionàBasic dataàWork


centerà Capacity Planningà Work center formulasà Define
formula parameter for work center

1. Click
2. Click

3. Update the Following fields


Field Description
Formula Key Enter formula key. E.g.
SAP002
Description of the formula key Enter description
Formula Maintain the formula. Mostly
SAP defined formula would be
sufficient. Let us discuss the
SAP Standard formula and
understand it. Any new
formula can be created similar
to it.
4. Parameter defined here are

SAP_02 Machine value from routing


SAP_09 Operation quantity- value from routing field
operation qty.
SAP_08 Base Quantity – value from routing field base
quantity
SAP_11 Operation split – value from routing field split

Above formula defined to calculate the machining time,

Machine time * Operation Quantity / Base quantity /


Operation Split

5. Indicators:-

Field name Field description and value


Tick in this check box
indicates, this formula is
generated in the system.
Tick in this check box
indicates, this formula can be
used to calculate cost.
Tick in this check box
indicates, this formula can be
used to calculate capacity
requirements in MRP.
Tick in this check box
indicates, this formula can be
used to calculate PRT
requirements.
Tick in this check box
indicates, this formula can be
used for scheduling
operations.

Impact of this configuration in Master Data /


Transaction

Formula is used in work center capacity, scheduling and


costing views.
5.6 Define Factory calendar

BACKGROUND

This configuration setting enables to define the Factory


calendar.

Factory calendar will contain the entire working day and


holiday details for a specific plant.

Factory calendar will be attached to the capacity header.


Factory calendar will be referred while scheduling the
operations.

SCENARIO

Define factory calendar for plant IND6.

INSTRUCTIONS

Follow the Menu Path: IMGàGeneral settings à Maintain


Calendar

Note: - Factory calendar will be defined directly in the client. It


will not be captured and transported through Transport
Management.

Click
First Holiday calendar has to be maintained. There are two
holiday calendar,

1. Public holidays
2. Specific Holiday calendar

Steps involved in Calendar maintenance are

• Create public holidays

• Create Holiday calendar and assign the public holiday in


the holiday calendar

• Create Factory calendar and assign the Holiday calendar


in the factory calendar.

Then the holiday calendar will be assigned to the factory


Calendar.

Let’s now maintain public holidays.


Select Radio button Public holidays

Click

Click
Select

Click

Click
Click

Create all public holiday by repeating the above explained


steps.

Click

Select

Click

Click
Enter calendar id. E.g. I6 to indicate it is for IND6 Plant

Enter description of the calendar. E.g. Holiday Calendar for


IND6 plant.

Enter valid from year and To year. E.g. From 2005 to 2025
Click

Select the required public holidays to be assigned to the


holiday calendar.

Click
Click
Note: - Whenever the calendar maintenance are saved, system
will give the message as shown above.

Click

Note: - To delete the assignment select the required holiday


and click

Click two times

Click

Click
Click
Maintain the entry as above.

Click

Click

Click three times to reach the main IMG menu.


5.7 Define Default Capacity

BACKGROUND

This configuration setting enables to define the default


capacity category for a plant.

By defining the default capacity, for work center and resource,


if the capacity is not defined, system will consider this default
capacity detail.

SCENARIO

Define default capacity category for plant IND6.

INSTRUCTIONS

Follow the Menu Path: IMGàProductionàBasic dataàWork


centerà Capacity Planningà Define default capacity

Click
Update the Following fields
Field Description
Plant Enter the name of the plan.
E.g. IND6
Category Capacity category. E.g. 001

Click

Maintain the details as shown above.


Note: - this is the master data can be maintained inside the
each resource or work center in capacity header details.
5.8 Define Work center screen sequence

BACKGROUND

This configuration setting enables to define the screen


sequence for work center.

Screen sequence setting controls the sequence of appearance


of screen while creating the work center master data.

Work center contains the following important tab screens

• Basic view

• Default values

• Capacity

• Scheduling

• Costing

SCENARIO

Create a different screen sequence for work center category


ZLAB.

INSTRUCTIONS

Follow the Menu Path: IMGàProductionàBasic dataàWork


centerà Setup work center screen sequence

1. Click
2. Enter work center category ZLAB

3. Click

Field Description
No Sequence number in which
tab screens are to be
displayed
Man Mandatory. Entry to be made
in this tab screen if this check
box is ticked.

Note: - Normally this setting is not at all disturbed, except


making some tab screen as mandatory.

Click
Impact of this configuration in Master Data /
Transaction

While creating the work center the sequence of Tab screen will
appear as per the configuration setting done here.
6. Routing

Routing explains how the product is to be manufactured. It


may be compared to a process sheet in the conventional
system. It contains

Ø Operations to be carried out during manufacturing

Ø Use of material during production

Ø Use of work centers

Ø Quality checks to be carried out during production


6.1 Define Standard value description in
operation over view

BACKGROUND

This configuration setting enables to define a key to hold the


standard text to be used in the routing operation.

If any common operation description is to be referred in the


task list (routing or in the master recipe), a standard key
containing the text can be used.

SCENARIO

Create a standard value key text for Routing.

INSTRUCTIONS

Follow the Menu Path: IMGàProductionàBasic


dataàRoutingà Control dataà Define standard value
description in operation over view

1. Click

2. Enter task list type N for routing

3. Click

4. Click

5. Update the Following fields


Field Description
Language EN to denote English
1st SV Txt upto 6th SVTxt First standard value text up to
value 6th standard value text value.
Text entered will appear in the
routing operation.

6. Click Save .

Impact of this configuration in Master Data /


Transaction

While confirming the operation these texts will appear against


the activity type.
6.2 Define Routing Status
BACKGROUND

This configuration setting enables to define the routing status.

Routing status helps to use the routing only for specified


purpose. I.e. Routing use can be restricted only for costing
purpose till the costing trial is completed.

Routing status can be

In Process

Released for costing only

Released for production

Selection of routing during production order or process order


creation is based on the routing selection.

Routing status has to be maintained in the routing header.

SCENARIO

Create a routing status.

INSTRUCTIONS

Follow the Menu Path: IMGàProductionàBasic


dataàRoutingà General dataà Define routing statuses

1. Click
2. Click

3. Update the Following fields


Field Description
Status number Enter numeric value
Description Description of the status
number. E.g. Under creation,
or only for costing.
RelInd Released Indicator, when this
is set, routing will be used in
Orders.
Costing Indicates, task list is released
for costing.
Consistency Chk Consistency check is carryout
automatically when saving.

4. Click Save .

Impact of this configuration in Master Data /


Transaction

While creating the routing status is maintained.


6.3 Define Task List usage

BACKGROUND

This configuration setting enables to define task list usage.

Task list usage defines the specific purpose of routing.

There are four important usage of Routing.

• Production usage

• Costing only

• Sales and Distribution

• Universal ( all purpose)

It is possible to control the usage of routing according to its


usage.

SCENARIO

Define routing usage for multi purpose usage.

INSTRUCTIONS

Follow the Menu Path: IMGàProductionàBasic


dataàRoutingà General dataà Define routing usage

1. Click
2. Click

3. Update the Following fields


Field Description
Usage Enter the usage number. Any
numeric number. E.g. 1
Description Description of the usage. E.g.
Universal

4. Click Save .

Impact of this configuration in Master Data /


Transaction

Usage of Routing has to be mentioned while creating routing


6.4 Define Reduction Strategy

BACKGROUND

This configuration setting enables to define reduction strategy.

Reduction strategy defines the sequence of compressing the


time or duration to meet the production dates.

Reduction strategy can reduce the following times which are


involved in scheduling

• Queue time

• Move time

• Over lapping

• Split

Reduction strategy will be employed when the calculated lead


time in scheduling is longer than the time between the basic
dates (required start date and finish date is the basic date),
the system will carry out reduction measures to reduce the
lead time.

Reduction is carried out step by step. After each reduction


measure, the system checks whether the calculated dates are
within the basic dates. If this is the case, no further reduction
measures are carried out.

SCENARIO

Create a reduction strategy.


INSTRUCTIONS

Follow the Menu Path: IMGàProductionàBasic


dataàRoutingà Operation dataà Define reduction strategy

1. Click

2. Click

3. Update the Following fields


Field Description
Plant Enter the plant to which
reduction strategy is to be
created. E.g. IND6
Reduction strategy key Any number to identify the
reduction strategy. E.g. 1
Reduction strategy Description of Reduction
strategy. E.g. Over al
reduction for IND6

4. Click
5. Select the Reduction strategy key entered above

6. Double click

7. Click

8. Update the Following fields


Field Description
Re Reduction Level. E.g. 1
Reduction Queue Enter the % of reduction in
queue time
Transport Tick the check box to indicate
the reduction in move time
Overlap Tick the check box to indicate
the reduction in move time
Split Tick the check box to indicate
the reduction in move time

Note: - Repeat the above step as different level as shown


below.
9. Click Save .

Impact of this configuration in Master Data /


Transaction

This reduction strategy can be maintained in the Routing.


6.5 Define User Fields

BACKGROUND

This configuration setting enables to define user fields.

User field can be used in the operation heading in the task list
to define your own reference data.

Maximum of six fields can be defined through the user field.

SCENARIO

Create user defined field.

INSTRUCTIONS

Follow the Menu Path: IMGàProductionàBasic


dataàRoutingà Operation dataà Define user fields

1. Click
2. Click

3. Update the Following fields


Field Description
Field Key Enter the name of the field.
E.g. OPERDT
Description of the field key Enter the description. E.g.
Operation detail user field
Maintain the text field as shown above

Impact of this configuration in Master Data /


Transaction

User field may be maintained at Routing operation header


level. Below screen shows the user field, where the details of
created by and other details can be maintained.
6.6 Define Routing Selection Automatic

BACKGROUND

This configuration setting enables to configure the automatic


selection of routing (Task list).

Task list has to be selected automatically during

• Production order creation (Routing)


• Process order creation (Master recipe)
• Cost estimate calculation
• MRP run

Routing is essential to

• Calculate the conversion cost

• Calculate the capacity requirements

• Schedule the operation

• To schedule the material at right time in MRP

SCENARIO

Define Automatic routing selection.

INSTRUCTIONS

Follow the Menu Path: IMGàProductionàBasic


dataàRoutingà Routing selectionà Select automatically
1. Click

2. Click

3. Update the Following fields

Field Description
ID Selection id. E.g. 01
Selection Priority Priority of selection in this ID.
E.g. enter from 1,2 …
Task List type Mention the task list type. E.g.
N for routing, 2 for master
recipe
Usage Enter the Usage of this task
list. E.g. 1
Status Enter the status of this task
list. E.g. 4

Note: - Repeat the above with the same id as shown below.


Impact of this configuration in Master Data /
Transaction

In the order type dependant parameter and MRP plant


parameter configuration

Selection id 01 will be mentioned.

While performing the transaction (creation of process order or


production order or MRP run), automatic selection of routing
will be performed in the following sequence:

• First system will search task list type routing as per the
sequence 1

• System will search for routing with usage 1

• System will search for routing with status 4

If the above search fails, system will go to the next sequence in


the same selection id. I.e. sequence no. 2 in our above shown
screen shot.

• system will search task list type routing as per the


sequence 2

• System will search for routing with usage 1

• System will search for routing with status 2


7. Summary:-

We have discussed the Master data related configuration


settings.

You must be able to configure master data in SAP according to


the business requirement in the following areas

Bill Of Material

Work center

Routing

Friends, please note that the most of the configuration settings


related to master data are common to manufacturing types

Discrete

PPPI

Repetitive

The terminology only differs in the various processes.

For E.g. Routing is called as master recipe in PP-PI and in


repetitive routing is called as rate routing.

Discrete PPPI Repetitive

Routing Master Recipe Rate Routing

Work center Resource Production line