PP End User Manual

PRODUCTION PLANNING
USER MANUAL
Submitted to
Hyderabad Chemicals Limited

Hyderabad
By
Sita Corp India Pvt Ltd.

Version 1.0
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Production Planning – User Manual
DOCUMENT INFORMATION
Project Name Document Name Document Location
Project Moves Ahead Production Planning User Manual
DOCUMENT HISTORY
Version Document Name Date Author Reviewed BY Change
Control
1.0 Production Planning
User Manual
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TABLE OF CONTENTS
1.....................................................................PRODUCTION PLANNING - OVERVIEW
....................................................................................................4
1.1 Introduction to SAP and ERP concept....................................................4
1.2 Views with in SAP..............................................................................4
1.3 SAP’s Production Planning...................................................................5
1.4 AYSIC PP - Organization Structure.......................................................6
2 SAP LOGIN......................................................................................8
3 PRODUCTION PLANNING - MASTER DATA.........................................20
3.1 Material Master................................................................................20
3.2 Bill of Material.................................................................................47
3.3 Work Center....................................................................................59
3.4 Routing..........................................................................................81
3.5 Production version...........................................................................98
4 DEMAND MANAGEMENT...............................................................107
4.1 Create Demand Management – Pipes & Tubes....................................107
4.2 Change Demand Management – Pipes & Tubes..................................111
4.3 Display Demand Management – Pipes & Tubes...................................115
5 MRP-MATERIAL REQUIREMENT PLANNING......................................119
5.1 MRP Run at Plant Level...................................................................119
5.2 MRP Run at Material Level...............................................................140
6 CAPACITY PLANNING....................................................................148
6.1 Capacity Evaluation........................................................................148
6.2 Capacity Leveling...........................................................................157
7 SHOP FLOOR EXECUTION..............................................................162
7.1 Create Production Order..................................................................162
7.1.1 Convert Planned Order to Production Order....................................162
7.1.2 Create Production Order Manually.................................................175
7.2 Production Order Release................................................................180
7.3 Production Order Confirmation.........................................................189
7.4 Production Order Cancellation..........................................................199
8 RESERVATION & COST CENTER CONSUMPTION...............................214
8.1 Reservation...................................................................................214
8.1.1 Create Reservation......................................................................214
8.1.2 Change Reservation....................................................................219
8.1.3 Display Reservation.....................................................................222
8.2 Material Transfer (Transfer Posting)..................................................225
8.3 Scrap Generation through Cost Center..............................................239
9 REPORTS.....................................................................................244
9.1 Production Order Information System...............................................244
9.2 Daily Production Report..................................................................254
9.3 Stock Reports................................................................................257
9.3.1 Stock on Posting Date..................................................................257
9.3.2 Warehouse Stock........................................................................260
9.3.3 Material Document List................................................................263
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1 PRODUCTION PLANNING - OVERVIEW
1.1 Introduction to SAP and ERP concept

 The concept of Enterprise Work Center Planning (ERP) software:- ERP is a
form of Client/Server software that integrates different functional areas. These
include:
 Sales and Distribution (SD)
 Materials Management (MM)
 Production Planning (PP)
 Financial Accounting (FI)
 Controlling (CO)
 Human Resource (HR)
 Plant Maintenance (PM)
 Project System (PS)
 Quality Management (QM)
 The architecture of SAP-based systems is an interesting contrast to typical

organizational 2-tier and 3-tier systems. The functionality and integration in
SAP reduces the need for extensive interface development between different
functional software, as in many older systems.
 SAP achieves integration of different business processes through the following

ways:
 Integration using a single database and data model;
 Integration between different applications i.e., the functional modules
 Integration with 3rd-party software and desktop applications, such as Word,
and Excel
1.2 Views with in SAP
 There are several views of SAP, from both the developers and the user’s
perspectives. These views include the:
 Functional view: which is enables the user to access and use the functions
within SAP.
 The “Configuration” view: Which is mostly accomplished through SAP’s
Implementation Guide (IMG). This is used primarily used by SAP consultants
in configuring SAP.
 The ABAP Workbench: is used by developers to create code routines in the
ABAP language that add new functionality to SAP.
1.3 SAP’s Production Planning

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The Production Planning and Control in SAP addresses the planning and production
control needs of AYSIC, on a day-to-day basis (i.e. tactical or operative level) as
well as in the medium and Long Term (Strategic Planning).
The production execution and reporting functionality of PP Module helps to map

AYSIC Production scenarios and capture essential information originating in the
plants for their steel business in Production Planning for Discrete Industries. This
information will assist the management to optimize their operations by closing the
feedback loop.
PP module components (Demand Management, MRP, Capacity evaluation and

Leveling) support planning at multiple levels and integrate with other functional
modules (e.g. Sales & Distribution, Controlling, Materials Management) based on
the planning objectives. These will help AYSIC to synchronize the higher-level sales
and profitability targets with manufacturing objectives.
The PP logistics flow and applications in the module, proposed to implement at

AYSIC, are elaborated below and in the following sections of this document.
SAP Production planning process diagram:
1.4 AYSIC PP - Organization Structure
AYSIC Organization structure
Enterprise Structure
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The Company Code:

Company Code Description
1000
The plant have been bifurcated and codified in the following:
Plant
Code Description
1000
2000
3000
4000
The Storage Location have been bifurcated and codified in the following:
Storage Location
Code Description
1100 Raw Material Store
1200 Semi Finished Store
1250 Production Store
1300 Finished Goods Store
1301 FG 2nd Quality Store
1310 Return Goods Store
1400 Spare Parts Store – Common
1401 Spare Parts Store – Mechanical
1402 Spare Parts Store – Electrical
1403 Spare Parts Store – Production
1500 Lubricants Store
1501 Gas Storage Store
1502 General Items Store
1503 Tools Stores Store
1504 Safety Store
1505 Packing Stores
1600 Scrap Stores
1700 Recycle Stock Store
 Company Code: - A company code is an independent accounting unit that

represents an individual company. It has a set of Profit/Loss Statements and
one balance sheet.(Ex: 1000 - Al Yamamah Steel Industries Company)
 Plant: - This Organizational unit serves to subdivide an enterprise according

to production, procurement, maintenance, and materials planning aspects. It
is a place where either material is produced or goods and services provided.
 Storage Location: -Storage location is an organizational unit allowing the

differentiation of material stocks within a plant. All data referring to a
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particular storage location is stored at storage location level. There may be

one or more storage locations within a plant. This applies mainly to storage
location stocks.
2 SAP LOGIN
Purpose
This documentation contains an overview of logging on to SAP systems, navigating

on the user interface, personalizing user settings, and information about
accessibility.
Logging On to / Off the Portal
You can log on to the portal from any client machine, with the user name and
password you use to access the company network, as defined in the corporate
server. Contact your administrator if you have any problems or questions.
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The SAP Logon is a Windows program, which you use to log on to SAP systems on
your Windows PC. It mediates between the SAP system and the SAP GUI user
interface. The SAP Logon displays a list of available SAP systems.
Double-click the SAP Logon icon on your desktop, SAP Logon Pad will appear
as screen given below:-
Using SAP Easy Access
Click a portal desktop icon or URL provided by your administrator to open

the portal browser.
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Enter Client
Enter User ID
Password
Language
After entering Client, User ID, Password select Enter.

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Access SAP through following options
1. Using Transaction Code in command field
Enter Transaction Code
Select Enter , system will execute the given transaction
2. Creating Folder under favorite

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To create folder, right click

on favorites and choose
Insert Folder
Give the folder name as per

your grouping of transaction
code
Inserting Transaction Codes under Favorite Folder

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Right click on favorite folder

and choose Insert
Transaction Code

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3. By Area Menu
In SAP Menu, choose

respective area and
transaction to execute
transaction
Creating New Session

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Clink on this Icon
At a time maximum 6 sessions can be opened, but it is advisable to keep minimum

session open as it affects system performance
Ending Current Session
Clink on this Icon
Go to System 
End Session
Search Transaction Code

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Clink on this Icon
System will open

search menu. Enter
T Code, which you
want to search
Back / Exit / Cancel

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Function of Function of Function of

this icon is this icon is this icon is
to go back to exit from to terminate
to previous current all entered
screen at screen / data
the time of transaction
transaction
Help (Information required for particular field or transaction)
Help on a field: - Explanation of the use of a particular field in cases where the
field labels is not self-explanatory.
Position the cursor on the field and choose or press the F1 key.
Help on a system message Explanation of a notification message, a warning, or

an error message in cases where the message short text is not self-explanatory
Click the message short text or position the cursor on the message short text and
choose or press the F1 key.
Input Field Help
F4 help opens up a dialog box and provides selection options of the field.
Clink F4 to know the

possible entries in the
system or to identify
the code. System will
provide the search
help to find the details
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Logging Off (Log of SAP)
To Log off, select

system  log off
If you want to end your portal session, it is recommended that you click Log Off in
the masthead, and not simply close your browser. Closing the browser leaves the
portal still working, until it times out.
Command Fields:
/N = Terminate Current Session
/O = Keep Current Session & Open new Session
/NEX = Terminate All the open sessions & Logoff without warning.
SU53 = If Authorization is missing (Keep screen shot of SU53 after
executing Transaction & send to Help Desk)
3 PRODUCTION PLANNING - MASTER DATA

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3.1 Material Master
Overview:
A material master contains all the information related to materials that procured,
produced, sold and stored. Material master has various views. Each function i.e.
Manufacturing, Purchase etc, has its own view of the material master. The material
master views relevant for Manufacturing are
 Basic Data
 MRP views
 Work Scheduling View
 Plant Data Storage 1
 Plant Data Storage 2
Basic data views are maintained at client level and MRP data & Work Scheduling
views are maintained at a Plant level.
Material master Create transaction is used for creating a ‘New Material Code’ as well
as for ‘Creating a specific view for a specific organization entity’ e.g. Creating an
MRP view for a new manufacturing plant although the MRP data already exists for
other manufacturing location.
Basic Data: Views- Specify the Material description, Base Unit of measure, Material
Groups & Product hierarchy
MRP 1: View – Specifies MRP procedure, Lot sizing procedure and stocking norms
MRP 2: View – Specifies Procurement time, Safety stock requirements and Lead
times
MRP 3: View – Is relevant only for Demand management and sales planning
MRP 4: View – Specified Stock deployment rules in DRP, Discontinuation of material
Work Scheduling – Specifies the data relevant for Production order like Delivery
tolerances etc.
Plant Storage data1 – If the unit of issue is different than the base unit of measure
then, specifies the unit of issue in the plant data storage.
Plant storage data 2 – Profit center will be maintained in the plant data storage 2.
Profit center is equal to plant code i.e. 1000
Material Types Applicable for Pipes & Tubes:-
Description Number Range

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Sr. Material From To Status

No
Type
1 RM10 Raw Mat-Metal Ferro-1000 11000000000 11099999999 Internal
2 RM11 Raw Mat-Metal NonFer-1000 11100000000 11199999999 Internal
3 RM12 Raw Mat.- Secondary-1000 11200000000 11299999999 Internal
4 SF10 Semi Finished Mat-1000 14000000000 14099999999 Internal
5 SP10 Spare Part-1000 11400000000 11499999999 Internal
6 SR10 Second Qua Fin Goods-1000 13100000000 13199999999 Internal
7 SR11 Scrap Materials-1000 13000000000 13099999999 Internal
9 GN10 General Item-Factory-1000 11700000000 11799999999 Internal
10 GN11 Lubricants-1000 11800000000 11899999999 Internal
11 NV10 Non-Valuated materials- 16000000000 16099999999 Internal
1000
Material Master Create

Material master Creation Procedure
Access transaction by:
Via Menus SAP Menu  Logistics  Production Process  Master Data

 Material Master  Material  Create (General)
Via Transaction Code MM01

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Material Number- Do Not Enter Material as

this is internal number range
Choose Industry Sector – M Mechanical Industry
Material Type-Semi finished Material SFM
Field Name Description R/O/C User Action and Comments

Values
Material Key Identifying No need to enter the
Material number
Industry Specify branch of R Mechanical Industry
Sector industry to which
material is
assigned
Material Specify the R Specify the material Material type is as
Type material type type per plant and user
need to specify the
correct material
type to create the
materials
Change Leave Blank
Number
Copy from Similar materials Leave Blank, unless new
Material for which the material is based on the
system obtains existing materials
selected values
R = Required, O = Optional, C = Conditional
Press Enter.
On pop up screen ‘Select View(s)’, check the appropriate boxes

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Select views as
per material
type.
Click on the views needed.
Note- The material type controls the material views. Therefore, specific material types
will not contain certain views.
Press Enter
On pop up screen ‘Organizational Levels’, enter information in the fields as

specified in the below table:
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Enter Plant Code, where

material is need to open
Enter Storage location,

where material stock will
maintain

Values
Plant Plant R 1000 – Al-Yamamah Enter plant where
Identification Steel Industry material will be
Key company maintained
Stor. Storage location R Enter respective
Location identification key storage location
code
Press Enter
Screen will go in to Basic Data 1 view

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Enter Material Description: Up to 40

Characters.
Stock keeping unit of measure
Sales Division
Specify the gross weight & net

weight
Press Enter
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Screen will go in to Basic Data 2 view (Tab)
Press Enter
Screen will go to MRP 1 View (Tab)

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Enter the type of MRP you want the

material to be allocated (PD-MRP)
Enter Re Order Point for CBP

materials only
Person responsible for handling

MRP group of materials in
company or plant
Select the Lot sizing procedure

which suites the requirement
(e.g. EX- Lot-for-lot order
quantity)
Field Description R/O/C User Action and Comments

Name Values
MRP Type Material Requirement R PD for all In house
Planning: -Key produced materials
Identify the nature of
planning of materials VB for packing materials
Re-Order Re-Order Point- C Specify the Re-Order
Point Identify the re-order point in case of CBP MRP
level of the materials. type i.e. VB MRP type it
is mandatory
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MRP MRP Controller- R Choose relevant MRP

Controller Responsible person controller from list
for material
requirement planning
Lot Size Lot Size- Key identify R EX – Lot for lot for all in
the base to calculate house produced
the quantity materials
HB- Replenish up to
maximum stock level for
packing materials
Rounding Rounding Value- O Specify the rounding
Value Value to which the value to the material
system rounds up the
procurement quantity
Press Enter

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Specify the Procurement Type

E-In house
F-External
X-Both
Default receipt storage location
The backflush indicator is used

for automatic goods issue for a
component is carried out during
confirmation
Specify the in house production

time
Key that the system uses to

maintain the floats required for
maintaining the scheduling an
order

Values
Procurement Procurement type – R Specify the procurement
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Type The fields defines type of the material

whether your F-External Procurement
material is produced E-In house production
or procured in your X-Both
plant
Prod. Stor. Production Storage O Specify the default

Location Location – Default storage location
goods receipt
location for the
material
Backflush Back flush – O Select Always backflush In case of finish
Indicator is used for -1 foods, Back
automatic goods flush is not
issue for the required.
component is carried
out during
confirmation
In house In-house production O Specify the in house In-house
Production time – production time of the production time
material in days is independent
Specifies the time in of the order
workdays needed to quantity.
produce the material
in-house
SchedMargin Schedule Margin Key R Maintain the SMK for the
Key – materials as ‘000’
Key that the system
uses to determine
the floats required
for scheduling an
order.
Press Enter

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Select the strategy to which you

want to associate the material with.
In the manufacturing plants no data
should be maintained for this field
Select the availability check rule

from the list

Values
Strategy Strategy Group - O Strategy group will be
Group The planning maintained only for
strategy Finished materials
represents the
procedure used for
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planning a
material.
Availability Availability check – R Daily Requirement – ‘01’
Check Specifies whether
and how the
system checks
availability and
generates
requirements for
materials planning.
Press Enter

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Specify the selection method as

3- always selection with
production version
Select collective
requirements only - 2

Values
Selection Selection Method – O Selection by Selection by
Method production version – production
Indicator determining
3 version is
the selection of the
applicable only
alternative BOM when
in the tubing
requirements are
mill
exploded in material
requirements planning
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Individual/coll. Individual / Collective - O Collective

Dependent Requirement – ‘2’
requirement indicator
for individual and
collective requirement
Press Enter
Screen will go to Work Scheduling View (Tab)

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Specify production Scheduler
Specify production Scheduling

profile
Specify production Scheduler

Values
Production Production O Specify the Production
Scheduler Scheduler- Scheduler production Scheduler will be
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responsible for a scheduler maintained for in

material in house produced
production activity materials
control
Prod.Sched.Profile Production O Specify the Production

Scheduling Profile production scheduling profile
scheduling profile will be maintained
for in house
produced materials
Batch Batch management O Specify batch Specify the batch
Management management management, all
indicator FG & SFG materials
are managed by
batch management
Press Enter
Screen will go to Plant Storage/Loc.1 View (Tab)

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Press Enter
Screen will go to Plant Storage/Loc.2 View (Tab)

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Specify profit center

Values
Profit Center Specify the profit R Specify plant In AYSIC, profit
center for the plant specific profit center center is equal to
plant.
System will ask for Save.

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Select Yes. Material will create after selecting yes
System will show the message with material number as material 15000000213 created.
Change Material master

Material master Change Procedure
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Via Menus SAP Menu  Logistics  Production  Master Data 

Material Master  Material  Change  General
Enter Material Number

Values
Material Key Identifying Enter the material Enter the
Material number material
number to
change the
relevant master
date.
Enter the material number which company needs to change the data.
Select Enter.
Press Enter.
On pop up screen ‘Select View(s)’, check the appropriate boxes

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Select the view

as per master
data contents
need to change.
After selection, system will bring you to relevant screen. Change the data and save. Selection
process is same as the material master-creation procedure.
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Enter plant where the material exist
Select Enter
Make the changes as per requirement.
Select save . Material master changed.

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Display Material Master-

Material Master  Material  Display
Select Enter
Enter the material
Select enter to choose tabs

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Select the views to

display
Select enter. System will ask organization data.
Enter the plant & storage location to display the views

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Display the material master views.
3.2 Bill of Material

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Overview:
A bill of material is a complete, formally structured list of the components that make up a
product or assembly. The list contains the object number of each component, together with
the quantity and unit of measure. The components are known as BOM items
Bills of material (BOMs) contain essential master data for integrating materials management
and production control.
Create Bill of Material:
Via Menus SAP Menu  Logistics  Production  Master Data  Bill of

material  Bill of material  Material BOM
Via Transaction Code CS01
Enter Plant code, where BOM need to create
Select BOM Usage
Select BOM valid date

Values
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Material Material Code R Specify the material

number for that you
want to maintain the
BOM.
Plant Plant – Key R Specify the plant where
uniquely you want to create BOM
identifying the
plant
BOM Usage BOM Usage - R Production = ‘1’
This key defines
the area (such
as production,
costing, sales &
maintenance)
where a BOM
can be used
Change Number Change Number

Valid From Valid From R The date from BOM is
valid
Press Enter
Screen will go to General Item Overview
Select header icon

Name Values
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Header O Select header icon to

Header ( ) move to header screen
and maintain base
quantity
Enter Base quantity

Values
Base Quantity Base Quantity – O Specify the base System default
The quantity of Quantity for materials or will be per base
main material for system default will come unit of measure
which you are i.e. per base unit
going to maintain
BOM
Select item icon in above screen.

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Screen will go to General Item Overview
Select Item Category
Enter BOM Component
Enter UOM of component
BOM Component quantity (Comp. qty

should be the reference of BOM header
qty)

Values
Ict Item Category – R Specify the item All production
Categorizing the category BOM
item in BOM i.e. Stock Item – ‘L’ component are
stock item, non Non Stock Item – ‘N’ stock item
stock item etc
Component Component – R Specify the BOM
Material Number of Component
the component
Quantity Quantity – Qty of R Specify the BOM
Component component qty with
reference to BOM base
qty
Un Unit – R Specify the UOM of UOM can be
Component Unit component as per given base unit or
measure component qty alternate UOM
of component
Use the same steps for other BOM component.

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Select all BOM component by select all icon . After selecting, the icon system will select
all components as shown in below screen
Select item detail to component specific data.
Select Status/Lng Text for entering storage location data.

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Enter Storage Location

Values
Prod. Stor. location Production O Specify the issue
Storage Location storage location for
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– Issue Storage the material

Location
Follow same steps for other BOM components
Select Item overview to go back to component overview screen

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Select save button to create material BOM.
Material BOM created.

Change Bill of material:

material  Bill of material  Material BOM Change
Select Enter
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Enter Material
Number
Enter Plant
Select BOM Usage
Select BOM valid

date
Select Enter
User can make the changes in BOM
Make the changes in BOM and save.

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Display Material BOM

material  Bill of material  Material BOM Display
Select Enter
Enter Material
Number
Enter Plant
Select BOM Usage
Select BOM valid

date
Select Enter
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BOM will display the material

BOM information
Material BOM Displayed.
3.3 Work Center
Overview:
A Work Center is an organizational unit where a production work step is carried out for
producing an output. The Work Center defines where and by whom an operation is to be
carried out. A cost center is assigned to each Work Center in the Work Center master
record.
Create Work Center:
Via Menus SAP Menu  Logistics  Production  Master Data  Work

Centers  Work Center  Create
Via Transaction Code CR01
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Double Click on CR01 T code

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Enter Plant in which work center need to create
Work center Name is identifier of work

center
Enter Work center category

Name Values
Plant Plant – key uniquely R Specify the plant where
identifying the plant Work Center need to
belong
Work Work Center – R Enter Work Center name
Center Identifying the Work
Center with code
Work Work Center R Specify the Work Center Machine –
Center Category – Key category. 0001 is taken
category identify the type of Machine – ‘0001’ for AYSIC Work
Work Center i.e. Centers
processing unit,
machine etc
Plant Plant – Reference Keep Blank.
Copy Plant If you want to copy plant
& Work Center then use
Copy from Copy from Work Keep Blank.
Work Center – Reference If you want to copy, then
Center copy Work Center give reference Work
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Center
Work Center description up to 40 Char
Specify the person responsible for Work Center
Enter usage of Work Center i.e. used in Routing
Specify the standard value key as per

activity monitored at Work Center
Choose must be entered for all activity

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Values
Description Work Center R Specify the Work
Description – Work Center description
Center Description up
to 40 Character
Person Person responsible – R Specify the person
Responsible Responsible person for responsible for Work
maintaining Work Center
Center
Usage Usage – Key identify in R Usage – 009 all task
which type of task list, list type
this Work Center is
going to use.
Standard Standard Value Key – O Specify the standard
Value Key Key identify the value key
parameters going to
use in Work Center
Select Default value tab

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Choose Control Key as PP01, this will

be default for the work center and
this will copy in routing
Enter Parameters UOM. This is required

to calculate the parameters values

Values
Control Key Control Key - O Specify the control key
Determines which for the Work Center as
business PP01
transactions
should be
executed for the
object that belongs
to the task list or
order (for example
scheduling or
costing).
UOM Parameters UOM O Specify the UOM of

parameters.
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Select Capacities tab
Specify the capacity category as machine unit

(001).
Formula to calculate the capacity

requirement of the work center

Values
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Capacity Category Capacity Category R Processing Unit as

- Key that processing category
describes capacity for all AYSIC Work
in more detail. The Centers
capacity category
enables you to Specify the Machine
determine whether Time – ‘001’
it is processing
unit or labor
capacity
Other Formula Other Formula – O Specify the other
formula for formula as ZNRC01
capacity
requirement for
internal processing
After entering, the capacity category and other formula select enter to move to detailed
capacity screen or select

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Specify the capacity planner group

for the work center.
Specify the factory calendar ID.
Specify the work center capacity

Unit of measure
Enter the machine availability time

for the day (start time & end time)
also mention length of breaks
Specify the capacity utilization &

No. of indiv. Cap.
Select work center for finite scheduling

Values
Capacity Planner Capacity Planner R Specify the capacity
Group – planner group for the
Key referring to Work Center.
the capacity
planner group,
which is
responsible for
planning this
capacity.
Factory Calendar Factory Calendar O Specify the factory

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ID ID calendar for Work

Center.
Active Version Active Version of O Specify the active
available capacity version of the capacity
Base unit of Base Unit of R Specify Unit of
meas. measure for measure for Work
capacity Center capacity
Start Start Time O Start time for the Day wise, start
Work Center & end time for
the Work
Center
Finish Finish Time O Finish time for Work Day wise, start
Center & end time for
the Work
Center
Length of breaks Length of breaks O Mention the break
time if Work Center is
not available in that
time
Capacity Capacity Utilization R Specify the capacity
Utilization utilization % of Work
Center
No of Individual No of Individual R Specify the no of Work
capacity capacity Center with same
capacity
Relevant to finite Relevant to finite O If Work Center is used
scheduling scheduling in capacity planning
then specify the tick
for finite scheduling
Select enter or return to capacity tab

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Select Scheduling Tab

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Specify the scheduling capacity category
Enter Scheduling formula (this is basis

for calculating start & end date)

Values
Capacity Capacity Category – O Specify the Work
Category Work Center Center scheduling
scheduling capacity category
category
Machine Time – 001
Setup Time Specify the setup time O Setup time – YS0013
Processing Processing Formula- O Specify the

Time Scheduling formula to scheduling formula
calculate the start & for the Work Center
end date for YS0001– Processing
processing time formula
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Select Costing Tab
Enter valid start & end date for

cost center
Specify the production cost

center for the work center
Specify the activity types & Unit &

Formula for individual activity.
Main function of this assignment to
calculate the activity cost
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Values
Start Date Start Date – R Specify the valid start
Valid start of cost date of cost center
center
End Date End Date- R Specify the valid end
Valid end date for date of cost center
Work Center
Cost Center Cost Center – R Specify the cost center
Key uniquely for the Work Center.
identifying a cost
center
Activity Type Activity Type – R Specify the activity type

Activity types as per the parameters of
describe the standard value key
activity produced
by a cost center
and are measured
in units of time or
quantity.
Activity Unit Activity Unit- R Specify the UOM of
Measuring UOM of activity
activity
Formula Formula – R Specify the formula for
Formula to activity
calculate the
activity quantity
Select save to create Work Center.
Change Work Center:

Centers  Work Center  Change
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Double Click on CR02 T code
Enter Plant where resource belongs
Resource Name is identifier of resource

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Values
Plant Plant – key R Specify the plant where
uniquely Work Center need to
identifying the belong
plant
Work Center Work Center – R Enter Work Center name
Identifying the
Work Center with
code
Select Enter
Select the view, where you want to make the changes.
Make changes and save. Work Center data changed.

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Display Work Center:


Centers  Work Center  Display
Select CR to display the Work Center

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Enter Plant where work center belongs
Work center Name is identifier of work center
Select to display the Work Center.

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Select tabs to display Work Center views.
3.4 Routing
Overview:
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A routing is a description of which operations (processing steps) have to be carried out and in
which order to produce a material (product).
In a recipe we specify,
 The operations (work steps) to be carried out during production.
 The Work Center used.
 Based on the Work Center standard values for the execution of individual operations i.e.
the activities to be performed in the operations as a basis for scheduling, capacity
requirements and costs.
 The component materials required at an operation (optional).
 The required production Work Centers and tools (includes jigs and fixtures) at each
operation (optional).
 The quality checks to be carried out during production (optional).
Create Routing:

Routing  Routing  Standard Routing  Create
Via Transaction Code CA01
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Double click on Routing

– CA01
On enter T Code in command field

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Enter material number for which you

want to create routing
Enter Plant, where routing need to

create
Enter Key date-Valid start date of routing

Values
Material Material – R Enter material number to
Key identify the create Routing
material number
Plant Plant – R Enter plant code, where
Key identify the Routing need to Create
plant code
Key date Key date – R Enter the valid start date
Valid date for of Routing
Routing
Enter
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Specify the status of routing i.e. released or created
Specify the routing usage i.e. 1-Production
Specify capacity planner group

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Values
Status Status – Key R Specify the Routing
identify the status as releases
Routing status i.e. 4-released
release or created
etc
Usage Usage - Key R Routing will be going to
identify the area used in production
where this routing 1-Production
will be used
Planner Group Planner Group – O Specify the planner
Key identify the group for the Routing
capacity planner
group
Enter
Specify the work center Specify the control key
Enter Operation Description
Specify base quantity
Step 1- Select the Work Center where first operation to be performed for operation number
0010. Maintain the description and base qty for the first operation detailing
If there are multiple operation performed at different Work Centers, then use same steps as
given above for all Work Centers.
Example: Tube Mill Operation
Field Name Description R/O/C User Action and Values Comments

Work Center Work Center is R Specify the work center
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place where where operation are

operation are performed
performed
Control Key Control the R Specify the control key for Control key
behavior of work the operation will copy from
center Work Center.
Operation Describe the R Describe the operation
Description operation description
Base Quantity Base Quantity – R Specify the base quantity
Operation base as per hour output
quantity
Enter
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Specify the Setup time, Machine

Time, Labor hrs, Indirect hrs

Values
Setup Time Specify the Setup R Specify the setup time
time for the operation
Machine time Processing time for R Specify the processing
the operation unit time. Maintain the
processing time hourly
and maintain the base
quantity as per hour
output.
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Labor Time Labor time for the R Labor time is equal to

operation machine time.
Overhead Over head is equal R Specify the overhead
to machine hrs times
Select Enter
If material is processed in more than one Work Center then perform same procedure for
another Work Center.
Select Save to create Routing
Change Routing:

Routing  Standard Routing  Change
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Double click on routing create

CA02, T Code

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want to change routing
Enter Plant, where routing need

to change
Select Enter
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Select the operation,

where you need to
change the data
Make the changes as per requirement.
If you want to change operation timing, select operation
Select operation details.

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Enter the revised

operation timing etc.
After changes save Routing
Display Routing:

Routing  Standard Routing  Display
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Double click on routing

display CA03
Enter

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want to Display routing
Enter Plant
Select Enter
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Select the operation,

where you need to
change the data
Routing displayed.
3.5 Production version
Overview:
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The production version determines the different production techniques that can be used to
manufacture a material.
A material may have several Bill of material (BOMs) that determine the components used in its
production. The production process can also be described in various recipes. Data on the
different methods or techniques used to produce the material is recorded in production versions
that are assigned to the material.
Production versions allow you to cater for different situations:
 Production using different Work Centers (for example two different production lines)
 Production of the same product using different BOMs (alternative BOMs – for example
concurrently valid old and new BOMs for a particular assembly)
Individual production quantities can be assigned to the different production versions, in order, for
example, to achieve a balanced utilization of the various alternative production lines. This can
be done by the user on an interactive basis, or automatically within the framework of the
planning run.
Via Menus SAP Menu  Logistics  Production  Production Version

Via Transaction Code C223
Enter T Code in command field

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Enter material number to

create production version

Values
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Plant Plant – Key R Specify the plant

identify the plant
Material Material – Key R Specify the material
Specify the
Material
Select Enter
Select Create to create production version.

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Specify Material
Specify the production version code & desc.

Values
Plant Plant – R Specify the plant where
Key identify the production version will
plant be maintained
Enter
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Enter ‘From Lot size’ Enter ‘To Lot size’
Enter ‘Valid from’ Enter ‘Valid from’
Enter group
Enter Routing Group Counter
Select alternate BOM & Usage will come

as per selection of alternate BOM

Values
From Lot Size From Lot Size – O Specify the from lot size
Key identified the of the material
production
version’s lower
limit of quantity of
the material
To Lot Size To Lot Size – Key O Specify the to lot size of
identified the the material
production
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version’s Upper
limit of quantity of
the material
Task List Type Task list type – O Specify the task list type
Key identify the of the material. Choose
type of the task Routing as a task list
list
Group Group – O Choose Routing group of
Key identifies the the materials
Routing
Group Counter Group Counter – O Choose Routing group
Key Identify the for the material
group counter of
Routing group
Alternative Alternative BOM- O Choose alternate BOM
BOM Key identifies the for production version
alternate BOM of
the material
BOM Usage BOM Usage – Key O BOW usage will come as
identify the BOM per selection of alternate
usage of BOM
alternative BOM
and also identifies
the area of BOM
i.e. used in
production ,
costing etc
Select Check for consistency check of production version i.e. assigned routing
and BOM will exist in specified lot size & valid date criteria
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Message will appear in screen that Task list & BOM exist.
Select cancel to come back in detailed screen.

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Select Save to production version overview screen
Production version saved for the material.
Change Production Version:-
Production version change procedure is same as creation explained above. In

change production version, user needs to modify the existing production version.
Display Production Version:-
Production version displayed through material display & production version display
list
4 DEMAND MANAGEMENT
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4.1 Create Demand Management – Pipes & Tubes
Overview:
The function of Demand Management is to determine requirement quantities and

delivery dates for finished products assemblies. Customer requirements are created
in sales order management. To create a demand program, Demand Management
uses Planned Independent Requirements and customer requirements.
Planned Independent Requirement indicates a planned requirement quantity for a

finished product / Semi finished product in a period of time.
The make-to-stock production strategies plan production or procurement using
planned independent requirements, which can be created from sales or forecast
figures.
Finished Pipes & Tubes, Clips, Steel Strap & Sheets will be planned with strategy 40
(Planning with final assembly).
Demand Management, production department will enter monthly quantity after

receiving the sales plan. This plan will be entered for finished goods.
Via Menus SAP Menu  Logistics  Production  Production

Planning  Demand Management  Planned
Independent requirement
Via Transaction MD61
Code
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Double click the T Code
OR
Enter T Code on command field

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Enter Material Code
Specify the plant

code
Specify Version
Specify the planning Period as Month
From - Planning Start Date of

Production Demand To - Planning End date of Production
demand

Values
Material Material – R Specify the material Only finished
Key identify the number to maintain the goods material
material number demand quantity will be planned.
Plant Plant – R Specify the plant when

demand will be given
Key Identify the
Plant
Version Version – R Specify the demand

Key identifying the Version
demand version 00 – Requirement Plan
number
From From – R Enter Start date of

Start date of demand planning
period to evaluate
To To – R Enter the end date of

End of period demand planning
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Planning Planning Period – R Specify the planning In AYSIC,

Period Define the period as Daily ‘D’. monthly
calendar periods production
for entering the demand will
requirement date enter for
Finished goods
Enter
After select enter, new screen will come where user will enter monthly demand
quantity.
Enter monthly target quantity

Values
Planned Qty Planned Quantity – R Enter monthly planned
quantity for the material
Monthly target
quantity
Select Save to generate the monthly demand for the material

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4.2 Change Demand Management – Pipes & Tubes
If there is any change in production plan. Production department can change the
planned quantity for the period. Demand
Via Menus SAP Menu  Logistics  Production  Production

Planning  Demand Management  Planned
Independent requirement
Via Transaction MD62
Code
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Double click the T Code MD62
OR

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Enter Material Code
Specify the plant code
Specify the planning Period as Month
From - Planning Start Date of To - Planning End date of Production demand

Production Demand

Values
Material Material – R Specify the material
Key identify the number to change the
material number demand quantity

Key Identify the
Plant

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period to evaluate

Planning Planning Period – R Specify the planning

Period Define the period as monthly ‘D’.
calendar periods
for entering the
requirement date
Enter
After select enter, new screen will come where user will modify monthly
demand quantity.
Enter monthly target quantity

Values
Planned Qty Planned Quantity – R Enter New change
quantity for the month
Monthly target
quantity
Select Save to change the monthly demand for the material

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4.3 Display Demand Management – Pipes & Tubes
To display demand program,
Via Menus SAP Menu  Logistics  Production  Production Planning

 Demand Management  Planned Independent
requirement
Via Transaction Code MD63
Double click the T Code MD63
OR
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Enter Material Code
Specify the plant code
From - Planning Start Date of

Production Demand To - Planning End date of Production demand

Values
Material Material – R Specify the material
Key identify the number to Display the
material number demand quantity

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Key Identify the
Plant

period to evaluate

Enter
After select enter, new screen will come where can check the demand .
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5 MRP-MATERIAL REQUIREMENT PLANNING
Overview:
Materials requirement planning is an important process of the R/3 system, which

plans all the materials automatically after MRP run.
The important functions of MRP are:

1. Net Requirements Calculation (Qty to be produced / procured)
2. Scheduling (Start & End dates of production)
3. Raw materials planning based on Bill of material.
4. Purchase requisition generation (for materials procured from outside) with Qty
and dates
Through the above functions, MRP answers the important questions, of which
material to be produced / procured, what qty and when (dates).
5.1 MRP Run at Plant Level
MRP run at plant level will select all MRP relevant material inside the plant and plan
accordingly. MRP run at plant level will be executed at the start of every month.
This will create planning proposal of all finished materials to raw materials.
MRP will generate planning proposal, which include planned orders & purchase
requisitions.
Via Menus SAP Menu  Logistics  Production  MRP  Planning 

Total Planning  Online
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Double Clink on T Code MD01
Or
Enter T code in Command field
To access MRP run at plant level

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Enter Plant where MRP run take place
Enter MRP Control

Parameters as
Processing Key – NETPL
Create Purchasing Req. – 2
(Purchasing requisition in
opening period)
Schedule Lines – 3 (Schedule
line)
Create MRP List – 1 (MRP
List)
Planning Mode – 3 (Delete &
recreate planning date
Scheduling – 2 (Lead time
scheduling)
Enter Planning Date
Select parallel processing &

Display materials
Specify the User exit Key &

User exit parameter
Field Name Description R/O User Action and Comments

/C Values
Plant Plant – R Enter Plant where you to
Key uniquely run MRP
identifying the
plant
Processing Key Processing Key – R Enter processing key as NETPL will plan
NETPL – Net change only those
Specify the planning in planning materials which
processing key of horizon will come on
MRP the defined
planning
horizon.
Create purchase Create purchase R Enter create purchase
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req. requisition – Key requisition in opening

specifying the period ‘2’
creation indicator
for the purchase
requisition
Schedule Line Schedule Line – R Enter create schedule
Indicator that line ‘3’
control the
generation of
schedule line in
MRP run
Create MRP list Create MRP List – R Enter Create MRP list ‘1’.
Indicator control This will generate the
the MRPP list for report of MRP list
all planned orders
Planning Mode Planning Mode – R Enter Planning Mode as This will
Define how the ‘3’ delete and recreate consider old
planning proposal planning data. planning data
from last run and recreate
dealt. new planning
proposal
Scheduling Scheduling – R Enter ‘2’ as scheduling Lead time
Decide the indicator. scheduling will
scheduling perform for in
procedure for house produced
planned order materials
Planning Date Planning Date – R Take current date as
Date on which planning date
planning is carried
out
Parallel Processing Parallel Processing R Check the box of parallel
– processing to increase
Key which improve the performance time of
the processing planning run
User Exit Key Specify the user R Specify the user exit key
exit Key for MRP run
User Exit Key Specify the User R User exit key parameter
parameter exit key parameter should be same as User
exit key
Select Enter and system will give below message as please check input parameters
Select Enter and system will again ask for confirmation

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Select continue
System will process all MRP relevant materials.
System will show below planning result

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MRP result will show

the MRP parameters
which are used for
planning

the statistics of
planning proposal i.e.
New Planned Order,
Deleted planned order,
purchase requisition
created etc
MRP planning result will show the number new planned orders created, new
purchase requisition created etc
Display MRP List
Via Menus SAP Menu  Logistics  Production  MRP  Evaluations

 MRP List
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Double Click on T Code MD05
MRP List Initial Screen

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Enter Material to
check the MRP list
Enter Plant where you

have run the MRP

Values
Material Material – R To check the MRP list of
Key identifying the the particular material-
material Enter Material Number
Plant Plan- R Enter plan to check the
Key uniquely MRP List
identifying the
plant
Select enter/continue to view MRP List

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MRP list displayed for selected material.
Display Stock Requirement List:-
Via Menus SAP Menu  Logistics  Production  MRP  Evaluations

 Stock Requirement List
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Enter Material to check

the Stock requirement
list
Enter Plant
Select Enter/Continue
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Stock requirement list will display the current situation of the materials. It update on each transaction
related to the material.
To view Order report, select in MRP list
Select Continue
Select change tree icon to view in below format

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Select Hide tree button close over view screen
Again stock requirement list will display.
The following is the meaning of the fields displayed in the list:

1. Date:
This date refers to the ‘Requirements date’ on which the material should be
available for
a. FG  Dispatch date to the Customer
b. Raw Materials  Start of production of the FG.
2. MRP Element:
This field denotes the ‘Demand’ or ‘Supply’ line item.
The demand line items for an FG material are:

a. IndReq  Independent Requirements (Forecast line items)
b. CusOrd  Sales Order (Customer PO)
c. Delvry  Delivery (When a delivery has been created for a sales order)
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The Supply line items for an FG are:

a. PldOrd  Planned Order for In-House Items
b. PurReq  Purchase Requisitions for items traded items
c. PurOrd  Purchase Orders converted from Purchase Requisitions
The Demand line items for a Raw material or Semi-finished products are:
a. DepReq  Dependent Requirements arising from the parent materials
b. SubReq  Subcontractors Requirements for goods to be supplied to Sub-
contractor (
The Supply line items for a Raw material or Semi-finished products are:
a. PldOrd  Planned Order for In-House produced items like cells, electrodes etc.
b. PurReq  Purchase Requisitions for items procured from vendors
c. PurOrd  Purchase Orders converted from Purchase Requisitions
d. ShpgNt  Shipping Notifications for Stock in transit
3. MRP Element data:

Against each MRP element, the system displays the details of the Supply or the
Demand line item.
MRP MRP Element data

Element
CusOrd Sales Order number and Item
number
Ind Req VSF (this means that it is a
forecast line item)
Delvry Delivery Document number
PlndOrd Planned Order number
PurReq Purchase Requisition number
PurOrd Purchase Order number
ShpgNt Shipping Notification number
DepReq Parent material number
4. Rec./ Required Qty:

This field displays the following two types of quantities:
a. Demand line item quantity:
The qty required against the demand MRP element.
All these quantities are denoted by a negative (-) sign.
b. Supply line item quantity:

The qty required against the supply MRP element.
All these quantities are denoted by a positive (or no negative) sign.
5. Available Qty:
This field displays the current stock in the first line.
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In each MRP element line, the system displays the forecasted stock situation for
each date, after subtracting the stock against demand line items and adding the
stock against the supply line items
6. Re-scheduling date:
Explained along with ‘Exception message’ section.
7. Exception messages:
One of the most important fields in the stock requirement list is the ‘Exception
message’ field.
Each time an MRP run is performed, the system encounters various materials,
which require the attention of an MRP controller or the ‘Purchase Personnel’.
The messages instruct that an abnormality has occurred in the date or qty
calculation and requires you to correct the line items manually.
There are 8 Exception groups, each containing a set of exceptions. Most of them
can be ignored as they will seldom occur and do have impact on date / qty
calculation.
Some of them are very important and requires the user action.
Procedure to access the planned orders:

From the stock/Requirement list, click on the ‘lens icon’ of the planned order as
shown below:
Choose Lens Icon of planned

order
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The following window will be display:
Click on the ‘Display’ icon .
The screen ‘Display planned order: stock order.

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Plan Order will display the order quantity, start date, end date & master data details.
Select back to return to stock requirement list.
The ‘Stock / Requirements List’ screen will appear.

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If there is change in plan order then Click on refresh icon to display the latest status of the
stock, plan order etc.
Click on refresh button
How to display the MRP results of both the parent materials and child materials?
From the ‘Stock / Requirements List as of HH:MM hrs’ screen, click on the ‘Show Overview icon’
.
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A small window opens in the left side of the screen.
Click on the icon to display the BOM components.
All the child material used in the parent material will appear, as shown below:
Click on each material, to display the stock requirements list for that material.
5.2 MRP Run at Material Level

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MRP run at Material level will plan materials with all MRP relevant dependent materials. MRP
run at material level will be executed whenever there is change in production plant i.e.
demand quantity. This will create planning proposal of all finished materials to raw
materials.
MRP will generate planning proposal, which include planned orders & purchase requisitions.
Via Menus SAP Menu  Logistics  Production  MRP  Planning 

Single Item, Multi-Level

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Enter Material
Enter Plant where MRP run take place
Enter MRP Control Parameters

as
Processing Key – NETPL
Create Purchasing Req. – 2
(Purchasing requisition in
opening period)
Schedule Lines – 3 (Schedule
line)
Create MRP List – 1 (MRP List)
Planning Mode – 3 (Delete &
recreate planning date
Scheduling – 2 (Lead time
scheduling)
Select process control

parameters

Values
Plant Plant – R Enter Plant where you to
Key uniquely run MRP
identifying the
plant
Processing Key Processing Key – R Enter processing key as NETPL will plan
NETPL – Net change only those
Specify the planning in planning materials,
processing key of horizon which will come
MRP on the defined
planning
horizon.
Create Create purchase R Enter create purchase
purchase req. requisition – Key requisition in opening
specifying the period ‘2’
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creation indicator
for the purchase
requisition
Schedule Line Schedule Line – R Enter create schedule
Indicator that line ‘3’
control the
generation of
schedule line in
MRP run
Create MRP Create MRP List – R Enter Create MRP list ‘1’.
list Indicator control This will generate the
the MRPP list for report of MRP list
all planned orders
Planning Mode Planning Mode – R Enter Planning Mode as This will
Define how the ‘3’ delete and recreate consider old
planning proposal planning data. planning data
from last run and recreate
dealt. new planning
proposal
Scheduling Scheduling – R Enter ‘2’ as scheduling Lead time
Decide the indicator. scheduling will
scheduling perform for in
procedure for house produced
planned order materials
Planning Date Planning Date – R Take current date as
Date on which planning date
planning is carried
out
Parallel Parallel Processing R Check the box of parallel
Processing – processing to increase
Key which improve the performance time of
the processing planning run
Select Enter and system will give below message as please check input parameters
Select Enter and system will again ask for confirmation

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Select continue
System will display the planning result.
To save planning result select save .
System will ask next stopping point. If we select continue as ‘plan up until stopping point’
then system will show next level.
If we select process without stopping, then MRP will plan all dependent materials then show
the result
If we select cancel-planning run, then system will terminate planning run
Select Continue .
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System will show the next level
Select save to plant next level
Select proceed without stopping.
Please select continue to plan dependent materials

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MRP statistics shows

the materials planned,
and exception list

the MRP parameters
which are used for
planning

the statistics of
planning proposal i.e.
new Planned Order,
Deleted planned order,
purchase requisition
created etc
Check the planning result in MRP list and stock requirement list.
To check the stock requirement list perform same steps as mentioned 5.1
6 CAPACITY PLANNING
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The economic use of Work Centers is an objective for many areas of a company.
The component Capacity Planning is available for this purpose. Capacity evaluation
& leveling is the part of capacity planning.
6.1 Capacity Evaluation
You can use capacity evaluations to analyze capacity loads in your company. You
can adjust the analyses for each user according to the planning level, planning
horizon and the area of responsibility. Available capacities and capacity
requirements can be selected according to various criteria and cumulated using any
period split you choose.
In the capacity evaluation, available capacity and capacity requirements are

determined and compared with each other in lists or graphics.
Check capacity load at Work Centers
Via Menus SAP Menu  Logistics  Production  Capacity Planning 

Evaluation  Work Center View  Load
Via Transaction Code CM01
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Select Load to evaluation capacity
Via Transaction
Select enter
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Enter selection
criteria to
evaluate capacity.
Enter Capacity
planner & Plant
Select standard view

Values
Work Center Work center- Key O Enter the Work Center
uniquely name, where you want
identifying the to check the capacity
work center /
Work Center
Capacity Capacity Planner O Enter the capacity User have a
Planner Group Group – Key planner to evaluate the option of
identifying the capacity evaluate the
capacity planner capacity at
capacity
planner group
or work center
wise
Plant Plant – R Enter the plant where
Key uniquely you want to check the
identifying the capacity situation
plant
Select standard overview to check the capacity situation

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Report will
display the week
wise capacity
requirement in
work center
User can evaluate the capacity in day wise & month wise
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To change the evaluation

period select setting 
general
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User can define the period as per his requirement. After deciding the periods select
continue
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To view the detailed information of each date then select day & capacity
details/period
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Select detailed /period
User can display the detailed evaluation of the process. Also user can take the
graphical view by selecting the icon.
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6.2 Capacity Leveling

Capacity leveling is used in various areas of a company and at different planning
levels with the following objectives:
 High capacity load

 Adherence to dates
 Short lead times
 Low stocks
The objectives of capacity leveling include:
 Leveling overloads and under loads at work centers

 Achieving optimum commitment of machines and production lines
 Selection of appropriate Work Centers
Via Menus SAP Menu  Logistics  Production  Capacity Planning 

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Capacity Leveling  Work Center View Capacity planning

table
Via Transaction Code CM21
Select Capacity planning table
Via Transaction
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Select enter
Enter selection
criteria to
evaluate capacity.
Enter Capacity
planner & Plant

Values
Work Center Work center- Key R Enter the Work Center
uniquely name, where you want
identifying the to check the capacity
work center /
Work Center
Plant Plant – R Enter the plant to check
ad perform capacity
Key uniquely leveling
identifying the
plant
Capacity Capacity Category O Enter capacity category
Category – as 001-Machine
Key uniquely
identifying the
capacity category
Capacity Capacity Planner R Enter the capacity User have a
Planner Group Group – Key planner to evaluate the option of
identifying the capacity evaluate the
capacity planner capacity at
capacity
planner group
or work center
wise
Capacity leveling function will show the capacity situation of planned & Production
Order. User can firm the Production Order and book the capacity by allocation the
Production Order.
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Select Execute
Capacity planning table will planned order & Production Orders in pool, which are
not firmed
To make firming the planned order or Production Order, first user needs to analyze
the capacity situation and then book the Work Centers.
For booking select the operation from pool and select dispatch.
System will allocate where capacity is available.
After planning select save to affect changes in planning.
Again, evaluate the capacity in capacity evaluation.

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7 SHOP FLOOR EXECUTION
MRP will generate the planning proposal in form of planned order & Purchase
requisition. Department person will take the planned order and convert it into
Production Order for start production process.
Planning department is responsible for Pipes & Tubes, Steel Straps, Sheets, Clips &
Skelps. Below List containing the Pipes & Tubes production Process
1. Skelps Production
2. Pipes & Tubes Production
3. Steel Straps Production
4. Clips Production
5. Sheets Production
MRP will generate the planned order only for those materials, which are part of Bill
of Materials.
All Materials are handled through batch management. In case of Skelp batch
number is equal to Coil Number and in case of finished goods batch number is
equal to production order number.
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7.1 Create Production Order
MRP will generate the planned order for the month. Respective user will convert the
planned order into Production Order. At the time of conversion, user can split the
quantity as per production version/production line.
7.1.1 Convert Planned Order to Production Order
Via Menus SAP Menu  Logistics  Production  MRP  Evaluation 

Stock/Requirement List
Enter transaction code in command screen
Enter Material number
Enter Plant

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Values
Material Material: Key R Enter the material to Specify the
identifying the know the stock material which
material requirement list is produced in
house
Plant Plant – Key R Enter the plant where to Specify the
uniquely stock requirement list plant where the
identifying the material is
plant produced
Select Enter to view stock requirement list
Stock requirement list will

show the current position of
the material. Select the
planned order, which you
want to convert into
Production Order
Click on the lens of planned order element in stock requirement list
New screen will come which will display the information of planned.
Now you can convert planned order to Production Order fully and partially. If material is
produced in more than one line, then always choose partially otherwise choose fully.
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For Full Conversion choose (Convert planned order to Production Order fully)
For Partially Conversion choose (Convert plan order to Production Order

partially)
Step 1-
Convert planned order Production Order fully
Click on the Production Order icon ( )
Target quantity of material
Production Order will

show the basic dates &
scheduled dates
Scheduling type – Backward

scheduling
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After selecting Production Order icon, Production Order - creation process will start. System
will bring user to Production Order creation.
Production Order contains below mentioned information.

Target Quantity of Material
Master data (BOM & Routing & Production version)
Controlling date
Production Order scheduling parameters
TO Check the Components to be required Production Order select below mentioned icon
Production Order: material list will come
Material list Quantity of input materials
Storage location of input a

materials
Production Order - material list contains the list of materials with quantity required to
produce output material i.e. header material
It also specifies the issue location and creates reservation number for the same. Material list
will copied from BOM.
To view operation select operation icon

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Production Order: Operation Overview shows the details of operation sequence. It will
contain the operation timing of each operation. In addition, it will contain the information of
material issue details.
To come back on header screen Select back icon or header Icon.

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Select save button to create Production Order.

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Select refresh to update stock requirement list

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Production Order number appears in stock requirement list with ‘PrcOrd’ as MRP
Element
Production Order number will appear in stock requirement screen.
Step 2-
Convert planned order to Production Order partially
Click on the Production Order icon ( )

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Enter the partial quantity

of the material
In the Create Production Order screen, user can change the quantity. Then system will
convert the mentioned quantity into Production Order.
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Mention new quantity
After mentioning the new quantity, select Generate to create Production

Order
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System has created the

Production Order but
Production Order number
will come after save.
Select save to create Production Order
Production Order created.

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Select Back
Again, select refresh to update Production Order
Now system will display the Production Order & planned Order. Because we have converted
partial quantity
7.1.2 Create Production Order Manually
This process will be used in case of immediate change in plan or new material is
coming in between the month.

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Via Menus SAP Menu  Logistics  Production  Production Order 

Create
Via Transaction Code CO01
Enter Transaction Code in Command Screen and select continue/enter.
Enter Plant

Values
Material Material Number – R Enter the material for
Key uniquely that Production Order
identifying the number need to create
material
Plant Plant – Key R Enter the plant where
uniquely you want to create
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identifying the Production Order

plant
Select Enter
Enter target quantity of

the material
Enter Finish Date for the

Production Order

Values
Target Qty Target Quantity – R Enter the target quantity
Figure identifying of the materials
the quantity
Finish Date Finish Date – R Enter Finish date for the
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Key uniquely production

identifying the
date
Select Enter
Select Save
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Note: - User has an option to create Production Order fully as well as

partially. If planned order is converted partially, pending quantity need to
convert again.
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7.2 Production Order Release
To start Production Order execution, Production Order need to release first.
Via Menus SAP Menu  Logistics Production  Production Order 

Production Order  Change
Enter T Code in Command Screen and select continue/enter.
Enter Production
Order number

Values
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Production Production Order – R Enter the Production

Order Key uniquely Order number, which
identifying the you want to release
Production Order
number of material
Select Enter
In Production Order change screen first check material availability

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System will check the material availability and if the materials are missing system will give
message of material shortage
Select the Missing part list to view Missing past list
Select back to return in header screen
Order Header screen will come

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To calculate Production Order cost Select icon
System will calculate the planned order cost for the Production Order.
To display Production Order cost select Goto - Costs  Analysis

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Select Analysis for view the cost report

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Select back to return in header screen.
To release Production Order choose Icon
System will check the material & capacity. If there is any shortage then system will
ask for release.
If the materials are missing then only this message will come
Select Release order to release.

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Message will come as Release carried out. Also check the Production Order status.
Production Order status will change from Created to release.
Save the Production Order by select save (Ctrl +S)

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7.3 Production Order Confirmation
Production Order - confirmation process is to book the daily production &

consumption quantities in each stage.
Example:
Skelps, Pipes & Tubes, Steel Strap, Clips & Sheets

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Back flush and auto goods receipt is define for all finished and semi finished
materials.
Via Menus SAP Menu  Logistics  Production  Shop floor control 

Confirmation  Enter  For Operation
Via Transaction Code CO11N
By SAP Area Menu -

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Or by Command Field
Select enter
Production Order confirmation will on operation wise
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Select F4 on Operation to know the operation to be confirmed
In this Production Order user has to confirm both process operation.

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Enter Production Order

number
Enter Operation
number
Enter the yield

quantity of
Production Order for
the day
Enter Posting
date
Enter Shift
Enter the activity

value for the
activities

Values
Order Production Order – R Enter the Production
Key uniquely Order which you want to
identifying the confirm
Production Order
Operation Operation No – R Enter the Operation Activities are
Key uniquely number, where you want captured in the
identifying the to book the activities operation
operation
Yield Yield-Yield is the R Enter the quantity, which
confirmation you want to confirm for
quantity the Production Order
Posting Date Posting Date- R Enter the posting date Date on which
Production Booking for production booking you want to
date book the
production
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Shift Data Specify the shift O Specify the shift, when

number the production is
confirmed
Activity List Activity List - R Enter the activity value If operation has
Activity captured for the operation more activities
for the Work then maintain
Center the activity
value for all
activities
After entering the confirmation quantity, select enter

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System will recalculate the

activities value and input materials
quantity
Select Continue
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Now Production Order will show the activity quantities and input materials
quantities as confirmation/yield quantity.
To Check and reconfirm input material quantity Select(click on) goods movement
tab
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Production Order Confirmation: Goods movements screen will show the materials
details with quantity, UOM, storage location & movement type.
Material consumption will be done with 261-movement type

Material receipt/production will be done through 101- movement type
Check the actual consumption or

receipt quantities as per operation
and modify as per actual, Also
specify the batch number of input
materials. Output batch no will be
equal to production order for finished
goods
In case of scrap and second quality, user need to give the material code, qty, Unit
of measure, plant, storage location, movement type.
The movement type for the scrap & second quality is 531.

Values
Material Material- Key C Material Number will
uniquely come as per material
identifying the issue defined for the
material operation
Quantity Quantity- C Material quantity – User
can change the quantity
Quantity of the as per actual
materials (issued consumption or receipt
or receipt)
Plant Plant- key C Plant from where
identifying the material is issued or
plant received
Storage Storage Location – C Issue or receipt material
Location Key Identifying the storage location
storage location
Batch Number Key uniquely C Specify the batch In case of FG,
identify the batch number for the input batch number
number materials and output will be equal to
materials the production
order no and in
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case of SFG
batch number
is equal to raw
material batch
number.
Movement Movement type- C Movement type defined 261 –
Type Movement type of that material is Consumption
the material consumed or produced 101 – Goods
receipt
531 – By-
product
Select save to save Production Order confirmation.
Production Order confirmation saved
7.4 Production Order Cancellation
Production Order cancellation is needed, if user has done any wrong entry in
the system. Before cancellation user should know the Production Order,
confirmation number and counter to cancel.
Via Menus SAP Menu  Logistics  Production  Shop Floor Control

Confirmation  cancel
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Via T Code:
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Enter Production
Order Number
Field Name Description R/O/C User Action and

Values
Order Production Order – R Enter the Production
Key uniquely Order which you want to
identifying the confirm
Production Order
Select Enter
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Select which counter, you want to cancel

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Select and save to cancel confirmation.
System will ask reason for cancellation. Enter the reason and select back to
come out from cancellation screen.
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After cancellation process user need to confirm the right quantity for same
operation.
7.5 Production Order Technical Completion
Overview:- To complete the production order without confirming all quantity,

technical completion is required i.e. short close of production order.
Production department has to set the technical complete status of partially

delivered orders at month end.
Individual technical completion can be set through the change production order
(CO02) and mass conversion can be set through the COHV.
Technical Completion through Individual processing:-
Via Menus SAP Menu  Logistics Production  Production Order 

Production Order  Change
Enter T Code in Command Screen and select continue/enter.

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Enter Production
Order number

Values
Production Production Order – R Enter the Production
Order Key uniquely Order number, which
identifying the you want to technically
Production Order complete
number of material
Select Enter
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Select the function menu  restrict processing  technical complete

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Select technical complete.

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Status will change into TECO. Now select save to save the technical completed
status.
Technical Completion through Mass processing:-

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Via Menus SAP Menu  Logistics Production  Shop floor control 

Control  Mass Processing
Via Transaction Code COHV
Select continue
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Specify the condition and select execute

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Select order and mass processing icon .
Select technically complete.

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Select execute to technically compel the production order.
Select refresh to know the production order status.

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8 RESERVATION & COST CENTER CONSUMPTION
8.1 Reservation
8.1.1 Create Reservation
Overview:
Material reservation is created for stock transfer or consumption to cost center for
those materials, which are kept in central store or warehouse.
In case of stock transfer, department person will raise the reservation of material
and store department will transfer the material to production storage location
Via Menus SAP Menu  Logistics  Material Management  Inventory

management  Reservation  Create
Via Transaction Code MB21
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Via area menu
By Transaction Code
Enter the transaction code in command screen
Enter the date for reservation.

When material is required
Enter movement type -311
Enter Plant
Field Name Description R/O/C User Action and Values Comments

Base Date Base date – R Enter the material
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Reservation requirement date

creation date
Movement Movement Type – R Enter the movement type –
Type Key specify the 311 (transfer between
movement type Storage location )
Plant Plant –Key R Enter plant, where you

Uniquely want to create reservation
identifying the
plant
After entering the above-mentioned data, select Enter .
Enter Receiving storage location
Enter Goods recipient
Enter required quantity
Enter Issue Storage location
Enter Material

Values
Goods Goods Receipt – O Enter the recipient name,
Recipient Text Field is to who is receive the
enter the recipient reservation
name
Rcvg Sloc Receiving Storage R Enter the receiving
Location – storage location, where
Key identifying the material will come
storage location
Material Material – Key R Enter the material, which
identify the you want to take from
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material central warehouse

Quantity Quantity – R Enter the quantity of
Quantity of material need to issue
material
SLoc Issue Storage R Enter the issue storage
Location – Key location of the materials.
identify the issue
storage location
After entering data, select enter.

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Click save button to create material reservation
Material reservation created.
8.1.2 Change Reservation

management  Reservation  Change
Via area menu
By Transaction Code
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Enter Reservation Number

Values
Reservation Reservation R Enter the reservation
Number – Key number
identifying the
reservation

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Change quantity
Change quantity and save
8.1.3 Display Reservation

management  Reservation  Display
Via area menu

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By Transaction Code
Enter Reservation Number

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Values
Reservation Reservation R Enter the reservation
Number – Key number
identifying the
reservation
Reservation displayed.
Cost center consumption:-
Consumables need to be issue to the cost center. Respective User will create the
reservation with the cost center movement (201) and specify the cost center.
Material will be posted to the cost center with the reference to the reservation by
store department.
8.2 Material Transfer (Transfer Posting)
Overview:
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Transfer posting can be done with respect to the reservation and without
reservation. If the responsible person for the store is different than reservation
procedure will be used and if the responsible person is same then direct transfer
posting will be performed in the system.

Management  Goods Management  Transfer Posting
Via Transaction Code MB1B
Via SAP Area Menu
Via Transaction Code
Select Enter
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Direct Transfer Posting:-
Enter Document date
Enter Posting date
User can enter Text

Information can be recorded
Enter Movement Type -311
Enter Plant

Values
Document Document Date- R Enter the Document
Date Key identify the Date, System by default
document date take current date
Posting Date Posting Date- R Enter the Posting date.
Key Identifying the The date on which you
Posting date want to show the
consumption
Doc. Header Document Header O User can enter the text
text Text- to record additional
Alphanumeric text information i.e. Shift
field person name etc
Movement Movement Type- R Enter the movement as
Type Key identify the 311
movement
Plant Plant – Key R Enter the plant from
uniquely identify where you want to
the plant transfer the material
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Storage Storage Location – O Enter the storage

Location Key uniquely location from you want
identifying the to transfer the material
storage location
After entering above data, select enter .
Enter Receiving Location
Enter Recipient Name
Enter Quantity
Enter Storage location
Enter Material

Values
Receiving Receiving R Enter the storage
Location Location- Key location
uniquely identifies
the location
Recipient Recipient- O Enter Responsible
Alphanumeric key person/department
name for material
consumption
Material Material – R Enter material , which
Key uniquely you want to transfer the
identifying the material
material
Quantity Quantity – Key R Enter the quantity of
identify the material
quantity of the
material
SLoc Storage Location – C Enter the storage If this storage
Key identify the location from where you location is
storage location want to tranfer entered in
initial screen
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then no need to
enter
Plant Plant C Enter the plant If plant is
entered already
in initial screen
then no need to
enter
After entering above data, select enter
Specify the * in batch and then enter

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System will purpose the input material details then select copy .
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Select enter
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Select Save to post the goods issue to cost center
Material consumption is booked to cost center.
Transfer Posting with respect to Reservation:-

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Select reservation then enter the reservation no.

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Enter reservation
Select enter.
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Specify the * in batch number then user can select the batch number and then
select adopt.
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Specify the *
Select enter
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Select Copy
Select Copy
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Select save to save the transfer posting.
8.3 Scrap Generation through Cost Center
Overview:-
To generate the scrap through cost center, then user need to perform the following
entries. Scrap will be generating through the cost center and 531 movement type.
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Select continue
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Specify the document date
Specify the posting date
Specify movement type
Specify the plant
After entering movement type, plant and document type & posting date.
Select enter
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Enter respective cost center
Enter material & Quantity
Specify the location
User will specify the material, quantity, unit of measure & storage location.
Select enter
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Select save to generate the scrap stock with reference to cost center.
9 REPORTS
9.1 Production Order Information System
Production Order information system contains the information of Production Order

confirmation, goods movement details, operation details etc. User can make their own
layout for the reports.
Via Menus SAP Menu  Logistics  Production  Production Order 

Reporting  Order Information System  Production Order
information system
Via Transaction Code COOIS
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Via Transaction Code
Select Enter
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Production Order information system

contains the information of Production
Order confirmation, goods movement
details, operation details etc. User
should select the list to explore
respective information
Choose selection
option to display
respective data or
restrict the options.
Select the list to display the order

information data
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Choose selection option to display

respective data
Choose specific layout by choose layout option . Also user can define their own
layout.
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Select Change layout to define own layout
User can add or

remove the fields as
per their own
format
After taking required fields, user can save their own format by clicking save button .
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Specify the layout

name & description.
User can make user
specific layouts.
Select continue
Layout saved.
Report will display own your format.

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To take the graphical views then select the Colum, you want to view in graph
OR
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Select to view in graphical format.

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Select Ok and come back to header screen. In header screen user has multiple option
to view the report.
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User can take the list and define their own layout
9.2 Daily Production Report
Customized production report will show the production details on the basis of selection
criteria. User can make their own layout to get the data in day wise, month wise or in
totality.
Via Transaction Code ZPP003

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Specify the input criteria.
Select execute to display production report.
Select layout icon to define own layout

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9.3 Stock Reports

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9.3.1 Stock on Posting Date
Stock on posting date report will display the opening, receipt, consumption &
closing Stock for the period.

Management  Environment  Stock  Stock for posting
date
Via Transaction Code MB5B
Via Transaction
Select Enter
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Enter the input

as per required
selection criteria
Enter the selection

date to view the
information for
particular period
Select Execute to run the report.

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Thos report will show the opening stock, total receipt quantity, total issue quantity
& closing stock.
User can also make their variant to view the report.
9.3.2 Warehouse Stock
Warehouse stock will display current warehouse stock list.

Management  Environment  Stock  Warehouse stock
Via SAP area menu

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Via Transaction code:
Enter
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Enter
selection
criteria to
display
stock
Select Execute
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9.3.3 Material Document List
Material document list will display the list all goods movement document for the
material.

Management  Environment  list display
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Via transaction Code
Select Enter
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Enter selection
criteria to check
the material
document list
Enter posting date –

This will restrict the
selection criteria and
this will display data
posting date wise.
Select Execute to run the transaction.

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To display the
report in ALV select
detailed list icon
Select detail list to display the report in ALV format

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User make the own report variant and execute the report.
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Select Save the variant and execute.

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PRODUCTION PLANNING

Hyderabad Chemicals Limited

Sita Corp India Pvt Ltd.

1 PRODUCTION PLANNING - OVERVIEW

1.1 Introduction to SAP and ERP concept

 The architecture of SAP-based systems is an interesting contrast to typical

 SAP achieves integration of different business processes through the following

1.2 Views with in SAP

1.3 SAP’s Production Planning

The production execution and reporting functionality of PP Module helps to map

PP module components (Demand Management, MRP, Capacity evaluation and

The PP logistics flow and applications in the module, proposed to implement at

SAP Production planning process diagram:

1.4 AYSIC PP - Organization Structure

AYSIC Organization structure

The Company Code:

The plant have been bifurcated and codified in the following:

 Company Code: - A company code is an independent accounting unit that

 Plant: - This Organizational unit serves to subdivide an enterprise according

 Storage Location: -Storage location is an organizational unit allowing the

particular storage location is stored at storage location level. There may be

This documentation contains an overview of logging on to SAP systems, navigating

Logging On to / Off the Portal

Using SAP Easy Access

Click a portal desktop icon or URL provided by your administrator to open

After entering Client, User ID, Password select Enter.

Access SAP through following options

1. Using Transaction Code in command field

Enter Transaction Code

Select Enter , system will execute the given transaction

2. Creating Folder under favorite

To create folder, right click

Give the folder name as per

Inserting Transaction Codes under Favorite Folder

Right click on favorite folder

Enter Transaction Code

In SAP Menu, choose

Creating New Session

Clink on this Icon

At a time maximum 6 sessions can be opened, but it is advisable to keep minimum

Ending Current Session

Clink on this Icon

Search Transaction Code

Clink on this Icon

System will open

Back / Exit / Cancel

Function of Function of Function of

Help (Information required for particular field or transaction)

Help on a system message Explanation of a notification message, a warning, or

choose or press the F1 key.

Input Field Help

Clink F4 to know the

Logging Off (Log of SAP)

To Log off, select

3 PRODUCTION PLANNING - MASTER DATA

3.1 Material Master

MRP 4: View – Specified Stock deployment rules in DRP, Discontinuation of material

Material Types Applicable for Pipes & Tubes:-

Description Number Range

Sr. Material From To Status

Material Master Create

Access transaction by:

Via Menus SAP Menu  Logistics  Production Process  Master Data