... Foreword ... 13
1 ... Introduction ... 15
1.1 ... Goal of This Book ... 15
1.2 ... Target Audience ... 16
1.3 ... Structure and Content ... 16
1.4 ... Restrictions ... 17
2 ... Tasks in Industrial Operations ... 19
2.1 ... Technical Tasks ... 19
2.1.1 ... Development and Design ... 19
2.1.2 ... Work Scheduling ... 23
2.1.3 ... Programming ... 26
2.1.4 ... Quality Management ... 30
2.1.5 ... Production Execution ... 33
2.2 ... Business Tasks ... 35
2.2.1 ... Sales and Distribution ... 35
2.2.2 ... Product Cost Planning ... 38
2.2.3 ... Materials Management ... 40
2.2.4 ... Purchasing ... 42
2.2.5 ... Production Planning ... 43
2.3 ... The Production Area in Industrial Operations ... 45
2.3.1 ... Production in Computer Integrated Manufacturing ... 45
2.3.2 ... Production as Part of Logistics ... 48
2.4 ... Characteristics of Production Type Creation ... 52
2.4.1 ... Product Standardization ... 52
2.4.2 ... Product Structure ... 53
2.4.3 ... Production Type ... 55
2.4.4 ... Production Organization ... 56
3 ... Production Planning and Control in SAP ERP ... 59
3.1 ... PP in the Context of SAP ERP ... 59
3.2 ... Processes in Production Planning and Control ... 62
3.3 ... Production Types ... 64
3.3.1 ... Discrete Manufacturing ... 65
3.3.2 ... Repetitive Manufacturing ... 65
3.3.3 ... Process Manufacturing ... 70
3.3.4 ... Kanban ... 72
3.3.5 ... Engineer-to-Order Production ... 76
4 ... Organizational Structures ... 79
4.1 ... Meaning of Organizational Structures ... 79
4.2 ... Organizational Structure Overview in SAP ERP ... 81
4.3 ... Planners in Design and Work Scheduling ... 86
4.4 ... MRP Controller, Capacity Planner, and Production Scheduler ... 87
5 ... Master Data ... 91
5.1 ... Master Data Overview ... 91
5.2 ... Material ... 92
5.3 ... BOM ... 100
5.3.1 ... Areas of Use and Types of BOMs ... 100
5.3.2 ... Material BOM ... 103
5.4 ... Work Center ... 112
5.4.1 ... Role of the Work Center ... 112
5.4.2 ... Basic Data for the Work Center ... 113
5.4.3 ... Capacity ... 115
5.4.4 ... Formulas for Capacity Load and Scheduling ... 121
5.4.5 ... Costing ... 125
5.4.6 ... Work Center Hierarchy ... 126
5.5 ... Routing ... 129
5.5.1 ... Purpose and Structure of the Routing ... 129
5.5.2 ... Routing ... 136
6 ... Sales and Operations Planning ... 147
6.1 ... Process Overview ... 147
6.2 ... Basic Technical Principles in Sales Planning ... 154
6.2.1 ... Information Structures ... 154
6.2.2 ... Planning Methods ... 158
6.2.3 ... Product Group ... 161
6.2.4 ... Planning Hierarchy ... 163
6.2.5 ... Proportional Factors and Disaggregation ... 167
6.2.6 ... Versioning ... 169
6.3 ... Planning Table ... 170
6.3.1 ... Planning Type ... 170
6.3.2 ... Macros ... 174
6.3.3 ... Planning in the Planning Table ... 176
6.4 ... Forecast ... 185
6.5 ... Event ... 191
6.6 ... Resource Leveling Using a Rough-Cut Planning Profile ... 194
6.7 ... Transferring Planning Data to Demand Management ... 198
6.8 ... Mass Processing ... 200
7 ... Demand Management ... 205
7.1 ... Process Overview ... 205
7.2 ... Time-Based Disaggregation ... 209
7.3 ... Planning Strategy ... 211
7.3.1 ... Selected Planning Strategies ... 211
7.3.2 ... Consumption ... 215
7.3.3 ... Planning Segments ... 216
7.3.4 ... Planning Strategy and Requirements Class ... 217
7.4 ... Editing Planned Independent Requirements ... 221
7.4.1 ... Reducing the Planned Independent Requirements ... 223
7.4.2 ... Reorganization of Planned Independent Requirements ... 224
8 ... Material Requirements Planning ... 225
8.1 ... Process Overview ... 225
8.2 ... Influencing Factors in Material Requirements Planning ... 230
8.2.1 ... Lot Size ... 230
8.2.2 ... Scrap ... 240
8.2.3 ... Safety stock ... 244
8.2.4 ... Master Data Selection ... 245
8.3 ... MRP Procedures ... 246
8.3.1 ... Material Requirements Planning ... 249
8.3.2 ... Consumption-Based Planning ... 251
8.3.3 ... Consumption Forecast ... 259
8.4 ... Executing Material Requirements Planning ... 262
8.4.1 ... Net Requirements Calculation Logic ... 262
8.4.2 ... Parameters for Material Requirements Planning ... 267
8.4.3 ... Planning Scope ... 271
8.5 ... Scheduling ... 272
8.5.1 ... Forward and Backward Scheduling ... 272
8.5.2 ... Scheduling In-House Production (Basic Date Determination) ... 273
8.5.3 ... Scheduling External Procurement ... 276
8.5.4 ... Planning Time Fence ... 278
8.6 ... Procurement Proposals ... 280
8.6.1 ... Planned Order and Purchase Requisition ... 280
8.6.2 ... Interactive Planning ... 283
8.7 ... Analysis ... 285
8.7.1 ... Stock/Requirements List and MRP List ... 285
8.7.2 ... Exception Messages ... 288
8.8 ... Plant Parameters and MRP Group ... 290
9 ... Special Forms of Procurement ... 295
9.1 ... Process Overview ... 295
9.2 ... Phantom Assemblies ... 297
9.3 ... Direct Production and Direct Procurement ... 300
9.4 ... Stock Transfer ... 309
9.5 ... Withdrawal from Alternative Plant ... 313
9.6 ... Production in Alternative Plant ... 314
9.7 ... Subcontracting ... 317
9.8 ... Consignment ... 322
10 ... Long-Term Planning ... 323
10.1 ... Process Overview ... 323
10.2 ... Planning Scenario ... 325
10.3 ... Executing Long-Term Planning ... 331
10.3.1 ... Release and Planning File Entries ... 331
10.3.2 ... Material Requirements Planning in the Planning Scenario ... 331
10.3.3 ... Evaluating the Planning Scenario ... 332
10.3.4 ... Transferring the Planning Scenario ... 334
11 ... Production Order Creation ... 337
11.1 ... Process Overview ... 337
11.2 ... Production Order ... 339
11.2.1 ... Order Type ... 346
11.2.2 ... Master Data Selection ... 348
11.2.3 ... Status and Trigger Point ... 352
11.3 ... Conversion from the Planned Order ... 357
11.4 ... Interactive Production Order Creation ... 359
11.5 ... Scheduling ... 361
11.5.1 ... Dates of the Production Order ... 361
11.5.2 ... Finite Scheduling ... 363
11.5.3 ... Transition Times ... 369
11.5.4 ... Splitting and Overlapping ... 371
11.5.5 ... Float Before Production and Safety Time ... 375
11.5.6 ... Reduction ... 377
11.6 ... Availability Check ... 379
11.6.1 ... Material Availability Check ... 380
11.6.2 ... Parameters for the Material Availability Check ... 383
12 ... Capacity Planning ... 389
12.1 ... Process Overview ... 389
12.2 ... Capacity Requirements and Capacity Evaluation ... 390
12.2.1 ... Capacity Requirements ... 390
12.2.2 ... Standard Evaluations of Capacity Utilization ... 392
12.2.3 ... Variable Evaluations of Capacity Utilization ... 394
12.2.4 ... Cumulating the Capacity Requirements ... 398
12.3 ... Checking Capacity Availability ... 400
12.4 ... Finite Scheduling ... 406
12.5 ... Dispatching ... 408
12.5.1 ... Profiles for Dispatching ... 410
12.5.2 ... Dispatching Sequence ... 417
12.5.3 ... Sequence-Dependent Setup ... 418
12.5.4 ... Midpoint Scheduling ... 423
12.5.5 ... Mass Processing ... 425
12.6 ... Capacity Planning Table ... 426
13 ... Production Execution ... 433
13.1 ... Process Overview ... 433
13.2 ... Releasing the Production Order ... 434
13.3 ... Material Withdrawal ... 438
13.3.1 ... Goods Issue Posting ... 438
13.3.2 ... Picking ... 440
13.3.3 ... Backflush ... 444
13.4 ... Confirmation ... 446
13.5 ... Goods Receipt ... 452
13.6 ... Settlement ... 456
13.7 ... Completion ... 457
14 ... Supply Chain Management and Integration with SAP APO ... 459
14.1 ... Supply Chain Management with SAP APO ... 459
14.2 ... Integration Scenarios ... 462
14.3 ... Technical Integration ... 464
... Appendices ... 469
A ... Glossary ... 471
B ... List of Abbreviations ... 501
C ... Literature ... 503
D ... List of Transactions ... 507
D.1 ... Organizational Structure and Master Data ... 507
D.2 ... Sales and Operations Planning ... 508
D.3 ... Demand Management ... 509
D.4 ... Material Requirements Planning ... 510
D.5 ... Special Forms of Procurement ... 511
D.6 ... Long-Term Planning ... 511
D.7 ... Production Order Creation ... 512
D.8 ... Capacity Planning ... 513
D.9 ... Production Execution ... 515
D.10 ... Integration with SAP APO ... 515
E ... The Authors ... 517
... Index ... 519

Dr. Jorg Thomas Dickersbach is the head of the product management department at Wassermann AG. Dr. Gerhard Keller is shareholder and partner of Bonpago GmbH and works in the discrete manufacturing and financial services area.