Honda Atlas Cars Pakistan Limited

SAP ERP Implementation

Process Definition Document

Production Planning : Master Data/ Pre
Configured Data
PDD01
Table of Contents

1 Document Management.......................................................................................................3
1.1 VERSIONING.................................................................................................................................. 3
1.2 APPROVALS................................................................................................................................... 3
1.3 DISTRIBUTION LIST......................................................................................................................... 4
1.4 GLOSSARY OF TERMS.................................................................................................................... 5
1.5 LEGEND......................................................................................................................................... 5
2 Process Details.................................................................................................................... 6
2.1 OVERVIEW..................................................................................................................................... 6
2.2 PROCESS MODEL........................................................................................................................... 8
2.3 PROCESS STEPS........................................................................................................................... 8
3 Design................................................................................................................................ 11
3.1 KEY DESIGN DECISIONS............................................................................................................... 19
3.2 INTEGRATION CONSIDERATIONS.................................................................................................... 20
3.3 GAP ANALYSIS............................................................................................................................ 20
4 Standard Reports............................................................................................................... 20
5 WRICEF............................................................................................................................. 21

421808476.doc 2/21
 1 Document Management

Date Created: 14.10.2014

Created By: Ahmed Salman Khan

1.1 Versioning
Version
Revision Date Summary of Changes Revised By
Number

01 15.10.2014 Ahmed Salman Khan

02 30.10.2014 Ahmed Salman Khan

1.2 Approvals
This document requires the following approval signatures:

Name Title Signature Date

Muhammad Ashraf Power User

Muhammad Sohail Nawaz Power User

Jamshaid Tahir Power User

Amir Nazir Business User

Sajid Hameed Business User

Muhammad Saghir Business User

Noman Siddiq Business User

Wajid Ali IT Key User

Project Manager
Syed Arif Ali
HACPL
Project Manager
Hashim Abbasi
IBM

421808476.doc 3/21
 1.3 Distribution List

Name Title

Amir Nazir Business User

Sajid Hameed Business User

Muhammad Saghir Business User

Noman Siddiq Business User

Wajid Ali IT Key User

Syed Arif Ali Project Manager HCPL

M. Hashim Abbasi Project Manager IBM

421808476.doc 4/21
 1.4 Glossary of Terms

 Master Data

 BOM

 Routing

 Work Center

 Production Version

1.5 Legend

The following symbols have been used to describe the process maps:

Process Start/End SAP Process

Manual Activity Decision

Document Database Update

Process Execute Document Filing

Reference Sub-Process

421808476.doc 5/21
2 Process Details
2.1 Overview of Master Data

Master Data is the data that remains constant over the time in system. The SAP Production
Planning (PP) Master Data required for the implementation of SAP Production Planning in
HACPL are as follows:

 Bill of Material (BOM)

 Work Center

 Routing

 Production Version

2.2 Bill of Material (BOM)

A Bill of Material is a complete, formally structured list of the components that make up a
product. The list contains the material code of each component, together with the quantity and
unit of measure. The components can be stock or non-stock materials, which in turn can be
described using material BOMs

The Bill of Material serves the following purpose:

421808476.doc 6/21
  Material Requirements Planning (MRP) explodes (calculates all the materials and the
quantities required) for Bills of Material on particular dates to calculate order quantities
for materials.

 For inventory management, by creating reservation for the components once Process
order is created and for enabling goods issue.

 At the time of Product costing, to calculate the costs of materials required for a Specific
product.
 The Plant and BOM usage must be maintained for the Material whose BOM is being
created. The BOM usage must be set as “1” which is for Production BOM and Plant
should be entered as “9000” which is for HAPCL. By default the BOM will be valid from
the date it is created unless changed by the user.

 In the BOM, the base quantity must be maintained. The base quantity is the quantity
against which the BOM is being defined. The materials being used and their quantity are
defined as per the base quantity.

 BOM status will be active by default (1). It means that it will be considered for Production
Planning, Production Execution and for costing purpose. The component quantities must
be maintained with respect to the base quantity of the header material. The default unit
of measure of the component will be the base unit of measure.

 BOM for HAPCL products will be created in SAP with reference to Beam. Multi-Level
bom will be used for HACPL. First level will be created for CBU. Second level bom will
be created for Engine assembly. Third level bom will be created for painted Shell. Forth
level Bom will be created for Shell assembly. Fifty level bom will be created for Press
parts. Sixth level bom will be created for Molding parts. Each of these bom level can
contain multiple Raw Materials. Assembly parts will be assigned to their parent
assembly.

421808476.doc 7/21
 2.3 Process Model

2.4 Process Steps

Step Module Transaction Transaction Description

01 Production Planning CS01 Create

02 Production Planning CS02 Change

03 Production Planning CS03 Display

421808476.doc 8/21
3 Process Detail

3.1 Work Center

A Work Center is where activities and processes are carried out. This means that work center
will be categorized as:

 Major pieces of equipment and persons involved in the production process

 In SAP it will be defined as machines and capacities will be associated with each work
center

Data managed in the work center serves as a basis for scheduling, capacity requirements
planning, and costing. Work Center are assigned to operations in Routing which is copied into
production orders indicating in which work center of the plant a processing step is carried out.
Work center provide general control data for the master recipe / master recipe operations they
are used in.

Work center are created with a work center category. The work center category controls the
screen sequence and field selection.

A standard naming convention has to be established for work center.

 Work center will be defined to determine where key operations are carried out.
 Work center will be defined to determine capacity requirements and to collect activity
costs.
 Shift definitions and sequences will be defined to simplify available capacities.
 Cost centers will be defined and linked to work center.
 The standard work center category of “machine” will be used.
 Standard formulas will be defined to calculate capacity and scheduling requirements.

A new Standard value “SAP1" key will be created for HAPCL which will consist of following
activities types.

 Labor
 FOH

 Deprecation

 Indirect Material

 Electricity

 License Fee

Work Center Capacities

421808476.doc 9/21
Capacity is the ability to perform a specific task with reference to time. It is defined in terms of
machine hours or production hours. Capacities can be entered and changed in work centers as
well as independently. Formulas for calculating capacity requirements for an operation are
maintained in work centers.

Shifts

Following shifts detail will be used in HAPCL

H1 Eight hours shift Start time 8:00 am to 5:15 pm with 60 minutes break.

H2 Eight hours shift Start time 5:15 pm to 1:00 am with 60 minutes break.

H3 Eight hours shift Start time 1:00 am to 8:00 am with 60 minutes break.

The shifts will be assigned to the Production work centers as required.

Scheduling

The scheduling function calculates the production dates and capacity requirements. In HAPCL
scheduling formulas will be defined on the work center based on which the system will propose
the Production Start Date and the End Date.

The formula that will be used for Scheduling will be:

(Operations Quantity x Machine Time) / Base Quantity

The Machine Time i.e. the Processing Time will be maintained for each product individually in its
Routing.

Person Responsible

The Person Responsible is a key to distinguish the management of work centers. If required, in
HAPCL we will maintain different Person Responsible for work centers. Production Line and
Packaging Line will have different Person Responsible.

Plant Code Person Responsible

1000 100 A-PR
101 Section In charge
102 HOD

421808476.doc 10/21
 103 SR-GM-PP

3.2 Process Model

Plant Work Center Name Description
1000 11110 Molding Assembly
1000 11108 Pressing Assembly
1000 11101 Welding Assembly
1000 11102 Paint Assembly
1000 11103 PO Paint
1000 11104 Engine Assembly
1000 11105 Assembly Final Assembly

3.3 Process Steps

Transaction
Step Module Transaction
Description

01 Production Planning CR01 Create

02 Production Planning CR02 Change

03 Production Planning CR03 Display

3.4 Routing
A Routing is a description of which operations (process steps) have to be carried out and in
which order to produce a material (product). As well as information about the operations and the
order in which they are carried out, a routing also contains details of the work centers at which
they are carried out, and also the required production Work Center tools (includes jigs and
fixtures). Standard values that have been defined in a Work Center are maintained in routings
for the execution of each Work Center as an individual operation, by having the number of hours
required in producing a certain quantity. All data in the Routing would be the basis of a
Production Order.

421808476.doc 11/21
 3.5 Process Steps

Transaction
Step Module Transaction
Description

01 Production Planning CA01 Create

02 Production Planning CA02 Change

03 Production Planning CA03 Display

4 Process Detail

4.1 Production Version

A production version determines which alternative BOM is used together with which master
recipe to produce a material. An alternative BOM is defined if multiple formulations exist to

421808476.doc 12/21
manufacture same semi-finished or finished material. Similarly, if a same material could be
produced using more than one Work Center, multiple Master Recipes would exist. Both the
instances would require the creation of multiple production versions.

4.2 Process Steps

Transaction
Step Module Transaction
Description

01 Production Planning C223 Create

02 Production Planning C223 Change

03 Production Planning C223 Display

5 Process Detail

5.1 Sales and Operation Planning

Sales Forecast is the amount of sales (in units or rupees) a company expects to achieve during
some future period under a given marketing plan and expected market conditions. The sales
forecast identifies the amount of units that are likely to be sold and/or the value of what is likely
to be sold.
Sales Forecast is used for transferring data to Production, which will be maintained by
Marketing Department of HACPL. Currently, marketing department in HACPL prepares an
annual sales plan and then convert it into a monthly sales plan.
This sales plan is currently transferred to production department which in turn converts it into
daily production plans. Production department can change the sales plan and send it back to
marketing department if there is any capacity or materials shortage. Once this plan is agreed
between marketing and production department this sales plan will become the input for MRP
run .

Planning Hierarchy
Planning Hierarchy is a user-defined combination of characteristics from an information
structure that is used in Sales & Operations Planning. It allows top-down and bottom-up
planning and the integration of centralized and decentralized. The expected levels of the
hierarchy at HACPL are:
 Plant
 Material

421808476.doc 13/21
 5.2 Process Model
Process End
Process End

421808476.doc 14/21
 5.3 Process Steps

Transaction
Step Module Transaction
Description

Create Planning
01 Create Planning Hierarchy MC61
Hierarchy

Change Planning
02 Change Planning Hierarchy MC62
Hierarchy

Display Planning
03 Display Planning Hierarchy MC63
Hierarchy

Create Sales /
04 Create Sales / Production Plan MC93
Production Plan

421808476.doc 15/21
 Transaction
Step Module Transaction
Description

Change Sales /
05 Change Sales / Production Plan MC94
Production Plan

Display Sales /
06 Display Sales / Production Plan MC95
Production Plan

Transfer to Demand Transfer to Demand

07 MC90
Management Management

Step Create Work Center

Description
Create a new Work Center.
Triggers

Dependencies

Roles PP Power User

Step Change Work Center

Description
Edit or Delete an existing Work Center.
Triggers

Dependencies

Roles PP Power User

Step Display Work Center

Description
Display an existing Work Center.
Triggers

Dependencies

Step Create Bills of Material

421808476.doc 16/21
Description
Create a new Bill of Material.
Triggers

Dependencies

Roles PP Power User

Step Change Bills of Material

Description
Edit or Delete an existing Bill of Material.
Triggers

Dependencies

Roles PP Power User

Step Display Bills of Material

Description
Display an existing Bill of Material.
Triggers

Dependencies

PP Power User
Roles PP Production Engineer
PP End User

Step Create Routing

Description
Create a new Routing.
Triggers

Dependencies

Roles PP Power User

Step Change Routing

421808476.doc 17/21
Description
Edit or Delete an existing Routing.
Triggers

Dependencies

Roles PP Power User

Step Display Routing.

Description
Display an existing Routing.
Triggers

Dependencies

PP Production Engineer
Roles PP Power User
PP End User

Step Create Production Version

Description
Create Production Version
Triggers

Dependencies

PP Production Engineer
Roles
PP Power User

Step Create / Change / Display Sales / Production Plan

Description
Create Plan in Flexible Planning
Triggers

Dependencies

PP Production Engineer
Roles PP Power User
SD Power User

421808476.doc 18/21
Step Transfer to Demand Management

Description
Transfer to Demand Management.
Triggers

Dependencies

PP Production Engineer
Roles
PP Power User

5.4 Key Design Decisions

Production Plan. Production Plan Info-structure will be transferred to PIR via Demand
Management.
The Planning Hierarchy in Sales and Operations Planning (S&OP) will be Pant and Material
number.
Each material produce in house or purchase through sub contracted has a unique semi-
finished material number.
Sales Plan will be the basis for Production Plan.
FERT, HALB and ROH material type will be used for production planning.
Production storage location will be used to store and consume all kind of materials relevant
to production.
FOH,Labor,Indirect Materials,Electricity will be used as activity types.
Production Plan will mention the planned finish date of the production.

5.5 Integration Consideration

 Material has been extended (assigned) to the required Storage Locations.

 Material Master Views are properly maintained.

421808476.doc 19/21
 5.6 GAP Analysis

6 Standard Reports

S. No. Report Name T-Code

01 Bom Level by Level CS11

02 Multi Level Bom CS12
03 Summarized Bom CS13
04 Bom Where Used List CS15
05 Work Center Information CR60
06 Word Center List CR05
07 Work Center Assignment to Cost Center CR06
08 Work Center Capacities CR07
09 Work Center Hierarchy CR08
10 Production Version C233
11 Routing Work Center CA80

421808476.doc 20/21
7 WRICEF

Object Type
S. No. Description
(RICEF)

1 Niguri Report PP R01

2 Production Plan Report PP R02

421808476.doc 21/21