3. Master Data preparation in Production Planning (PP)

Updated: Dec 26, 2020

Until this point we are almost done with all the SPRO configuration for running basic PP cycle. Another important aspect in running PP cycle is Master Data which we will discuss in this blog.

PP Master Data

Master data is important component in PP module like the other SAP modules. Master data tends to remain constant and used in same way. Master data helps to maintain integration of business processes/objects. Following are vital master data elements related to SAP Production Planning (PP), as represented in below image-



Material Master

T-code- MM01

The material master contain information on all the materials that a company procures, produces, stores, and sells. It is a number uniquely identifies a material master record, and hence a material. We will create 4 different material for our requirement; 1 each for finished and semi-finished and 2 for raw material.

1. Finish Material

Basic Data

MRP

Work Scheduling

Accounting

Costing


2. Semi-finish Material

Basic Data

MRP

Work Scheduling

Accounting

Costing


3. Raw Material

Basic Data

Purchasing

MRP

Accounting

Costing



Bill Of Material

T-code- CS01

FINISH; Bill of material is as follows for 1 quantity of Finished good.

FINISH = SEMI-FINISH + RAW


SEMI-FINISH; Bill of material is as follows for 1 quantity of Semi-Finished good.

SEMI-FINISH = RAW + RAW_01


BOM Explosion (CS11);-

This transaction will show all the semi-finished as well as raw materials required to ultimately produce finished goods. It will show this material requirement level by level as follows;


Secondary Cost Element

T-code- FS00

Under YCOA chart of accounts, we have already available one GL account as secondary cost element. Open it in FS00 and assign the CElem Cat; as 43 - Internal activity allocation.


Activity Type

T-code- KL01

In this step we will create multiple activities required in production. We need to assign the secondary cost element to this activity type to capture the costing part of the activity.

  • SETUP activity

  • MACHINING Activity

  • LABOUR Activity



Cost Center

T-Code- KS01


Activity Price Planning

T-code- KP26

Here we decide capacity, plan activity and price for different production activities against cost center. Like in below example, we defined 100 Hrs for LABOUR as well as MACHINE activity and 20 Hrs for SETUP activity. The fixed price for each activity is 10 EUR per unit. Following image shows activity price planning for FINISHED & SEMI-FINISHED production cost center.


Work Center

T-code- CR01

Work center is an organization unit where manufacturing activities are performed. In other words, Work Centers are the master data which represent real machines, Production Lines, Assembly Work Center, etc. Manufacturing activity or Operations are carried out at Work Center. We need to define work center each for FINISHED & SEMI-FINISHED good production as follows;

Lets us test the formula for capacity planning; refer below image- we are considering to produce 10 PC with 1 split and 1 PC base quantity. We considered 1 HR each as standard value for SETUP, MACHINE and LABOUR activity, then we can see system calculated cumulative hours as 21 HR.

Similarly we will configure Scheduling and costing segment of work center-

Similar to previous capacity calculation, this one is costing calculation, And as we can see system calculated 210 EUR as cumulative cost.


Create another work center for semi-finished product in similar manner-



Routing

T-code- CA01

Routine defines the list of activities to be performed for the production process. Routing defines a sequence of activities performed at the work center. Routing plays in important role in calculating production cost, machine time and labor time. Routings enable you to plan the production of materials (products). Therefore, routings are used as a template for production orders and run schedules as well as a basis for product costing. In a routing you plan;

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

  • The activities to be performed in the operations as a basis for determining dates, capacity requirements, and costs

  • The use of materials during production

  • The use of work centers

  • The quality checks to be carried out during production

FINISH- At header level, we define the usage of routing as Production.

As we can see from below image we split production of finished good in two steps, first operation happen at WC_FIN work center and second at WC-FINI. Concerned activity hours are also mentioned.

Under allocation section, we can assign materials to concerned operation steps;


SEMI-FINISH-


Production Version

T-code- C223/MM02

The production version is the link between a product BOM (Bill of Material) and the process Routing. It determines which alternative BOM is used together with which routing to produce a material or plan a material. There may be different production versions based on the lot sizes and validity dates.

Now let us cross-check created production version at material master level;


Product Cost Estimate

T-code- CK11N/CK40N


Blogs Series of SAP PP-

  1. Configuration of Enterprise Structure for Production Planning (PP)

  2. Baseline configuration for Plant in Production Planning (PP)

  3. Master Data preparation in Production Planning (PP)



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