Pp Pp 02 Mmreview

8/11/2019 Pp Pp 02 Mmreview

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Production Planning 2 - 1

Section 2:

Materials Management and

MM Master Data Review

Production Planning


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Production Planning

Sections

1. Production Planning Overview

2. Materials Management & MM Master DataReview

3. Demand Planning & Long-term Planning

4. Master Production Schedule

5. Material Requirements Planning

6. Capacity Requirements Planning

7. Production Reports

8. Whats Next


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Learning Objectives

Upon completion of this section, you will be able to:

Define the key terms related to Materials

Management and MM Master Data

Describe how MM/MM Master Data fits into theSAP system

List the key MM Master Data processes described

in the AeLS courses


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MM Functionality

MM supports all phases of materials management:

Materials planning and control

Purchasing

Goods receiving

Inventory management

Invoice verification (a FICO task)

The system is updated with information from on-line

transactions from purchasing, inventory management, andinvoice verification

Provides real-time reporting capabilities


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MM Key Terms and

Definitions

Term Definition

Material A substance or object dealt with on a

commercial basis or used, consumed, or

generated during production.

Example: P725003 Cover, Fl. Box Lg. Capacity

Purchasing Group A code indicating a buyer or group of buyers

responsible for a material or material group.

Example: 102 Jim Simkins

PurchasingOrganization

An organizational level that negotiatesconditions of purchase with vendors for one

or more plants. It is legally responsible for

completing purchasing contracts.

Example: 3000 Hubbell Wiring Sys.


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MM Key Terms and

Definitions (continued)

Term Definition

MRP Materials requirements planning is

the process of planning materialsfor current and future requirement.

Vendor A business partner from whom

materials or services are procured.



MM Master Data Review

MM Master Data is a primary component of MM, along with

Inventory Management, Purchasing, and Warehouse Management

MM Master Data

WM

IM

PR



Production Planning

Master Data

MasterData

Routing

MaterialMaster

Work Center

Capacity /

Resources

Bill

of

Material



Working with Master Data -

Overview

Master data is used in every transaction in the system

Master data contains information that is frequently needed andin the same format

Information is read from the material master data and

defaulted in transactional data such as: Bills of Material

Purchase orders

Routings

Master data changes do not change previously createdtransactions

Master data generally resides in the system for a long time andsecurity access is restricted


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Benefits of Master Data

All material data are stored in a single database, therebyeliminating redundant data storage

Information is created once, minimizing data input

Real-time data is available for review at any time

Data is integrated with other SAP modules and processes:

Order Management

Inventory Management (IM)

Warehouse Management (WM)

Accounts Receivable (AR)

Accounts Payable (AP)

Goods Receipt and Movement

Production Scheduling


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Material Master Record Views

Basic Data

Classification

QualityManagement

Warehouse

Management

Material

Master

Record

MRP

Accounting

Costing

Forecasting

Sales

Storage

Work

Scheduling

Purchasing


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Material Types Review

Material type (for example, raw material or finishedgood) determines which views are created

Hubbell has identified the following material types:

ZFINFinished Goods

ZSEMSemi-Finished Goods

ZRAWRaw

ZPKGPackaging

ZSERServices

ZMROOperating Supplies

ZCFGConfigurable Materials


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Selecting Material Views

Material type drives thepossible material views

List of possible views forZRAW

Use the vertical

scrollbar to see

additionalavailable views


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Material Master Record Views

Views Fields DescriptionBasic data 1 Basic Unit of

Measure

Material unit of measure, i.e., EA, LB, BT

Purchasing Purchasing

Group

Responsible buyer or department

MRP1 MRP Type Key that determines how a material is planned

MRP2 Procurement

type

Defines how a material is procured, i.e. in-house

GR Processing

time

Number of days required from the receipt of

goods for inspection and placement into storage

Plnd delivery

time

Number of days to obtain an externally procured

material

Safety Stock Quantity required to satisfy unexpectedly high

demand and/or inconsistent supply

This is a list of

the views and

fields on a

material master

record relevant

to creating MRP

purchase

requisitions


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Material Master Record Views(continued)

Views Field Description

MRP3 Period indicator Specifies period in which the consumption

values and the forecast value are managed, i.e.,

monthly

Availability

check

Procedure that ensures enough components are

available for planned or production orders.

Indicates how or when availability is checked,

i.e., 01=Daily requirement

MRP4 Component

Scrap

Percentage of scrap that occurs during

productionAccounting 1 Standard price Standard price of material

Stor. location

stock

Stor. Loc. Where material is stored in the warehouse


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MM/PP Key Master Data Terms

Term Definition

Bill of Material

(BOM)

Complete list of components making up a

product, including description, quantity, unit

of measure, document information records,

comments, and notes

Alternate BOM A modified BOM with a new effectivity date.

Allows you to make significant changes to the

BOM, while maintaining the original BOM

structure

Capacity

Defines the ability of a work center to performa task: Can be measured in time (as in hours)

or in units

Material Master

Data Record

Contains a complete set of data for all material

procured, sold, produced, and stored


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MM/PP Key Master Data Terms

(continued)

Term Definition

Material Type Grouping of materials with same basic

attributes, allowing these materials to be

uniformly managed

Routing List of operations that must be performed in

sequence to manufacture a product

Work Center An organizational unit that defines where an

operation must be performed: Can be a

person, machine, or product line; includes

information about capacity planning


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Learning Review

You should now be able to:

Define the key terms related to Materials

Management and MM/PP Master Data Describe how MM/PP Master Data fits into

the SAP system

List the key MM Master Data processes

described in the AeLS courses


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This com pletes the review of

the AeLS prerequ isi tes:

Materials Management Overview

MM Master Data

Quest ions?

Pp Pp 02 Mmreview

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