Video 1: Production Order in SAP
Now we have purchased the missing components and now we can stop production. Um, as for the production part of the system, we can only stop production if we have everything available or that we, uh, that we require for that production in production, we start with a plant order. That plant order is already existing because of the planning around we have carried out. Um, we have to convert that into a production order because you cannot work on a plant order. It cannot carry any costs. It's not a cost element. So production audit can carry costs after it is released. And after it is released, we can issue components into production. Then we can start working and while working, we can confirm the steps we do here. We can confirm. The work we have already done after the first step that we confirm, the system creates a goods receipt automatically our system is set up. I like that. It's not required to handle it like that. You can also post that menu, but in other case, it does it. And then we have the finish good into storage location. After that, we can start with the delivery of that goods. And after having delivered that we can build it. Okay. Let's have a look at the MD zero four NSAP. It's one of my favorite transactions become because you can do that much from here, MD zero four, if already entered or material number we have already entered or plant and getting in here. First of all, you can see here is our customer order or a sales order. Um, it requires. Two of the pumps that we have here and here we have the plant order we have created last time when we've been here. Uh, it is set up to create, to produce 10 pumps. And so since we have 10 pumps in creation and six pumps in stock, and there's an other older sales order that obviously is not getting to be delivered. We have enough. Of that pumps after having produced it to deliver it. Okay. So let's start with the production that we can do this all right. From here, because we can use MD zero four to convert the plant order into production order. There are other means to do that also, but since we are already here, it's very convenient to do that. I double click on the plant order. It opens that pop-up and that top pop-up, I call it a toolbox because you have lots of tools to work with that plant order. I could change the plant order. I could display it. I can convert it into a production order, and this is what we are going to do, or we can partially convert it into a production audit if you want to produce a certain quantity now, and next quantity. Next time since SAP, not only knows. Order related production. It also in a so-called process order. Production, uh, you could also convert it into process audits. Only. We haven't set up that material for process orders. Process orders are usually used in food three or in medical industry, chemistry and so on. So these is more like a reset, uh, that you handle here and not that much about bills of materials and routings. Here, we rely on bills of materials and routings is classical production that we have. And so we use this one. We could also convert that plant audit into a purchase requisition if you have no means to produce that thing. So we have to buy it. I do not mean to buy that from an external vendor. I mean, to buy that from another plant of our own company, but also we won't do that at the moment. We convert that into production order. So I click right here, here, after having clicked here. We get to another transaction. And this transaction is the transaction production order creation. Of course, all the values from the plant or the are now copied into that production order. So the total quantity is copied here. We have an end date and a start date. And if you look at the dates, you may find out. Um, that I have had some break in recording. We, I stopped recording in September and now it's end of October. I had so much other stuff to do. I'm sorry for that. But well, system waited for me. So we have everything available still here. Um, since we had some complaints about readable screens, I've changed the screen resolution and now I hope that screen is better readable. I've I've reduced the screen resolution. So now it's better readable because of writing and the fields and everything. Um, have, um, have, uh, extended size have, have a better size now. Okay. We are in the head of data of the production audit to be yet. It is not a production order because you look at the order number and that's a completely artificial thing. It's not a real order number. Um, we look at the head of data and we can see the plant, a start date, the plant end date, the scheduled start date and scheduled and date meaning the basic data is all the frame dates. We should have our production insight of that timeframe. And the system already scheduled it into this timeframe, which. Easily fits in here. It even schedule the times. Okay. We do not care about the times here system, but in real world, that could be an interesting feature. Of course, we can go to dates and quantities up here. And so we have a better overview of the times start and end times and so on and the quantities to handle them. We could go to the, uh, to the tap assignment. And here I can see which profit centers assigned to that, which planned order was converted into this production order, which production plant is meant, who is the MRP controller, who is a production supervisor. And so on, we can check out the goods receipts. Good receipt only happens at the end of production when we have created or product. This goes into unrestricted use stock. So the stock type is anonymous. I did use, I could put that into quality inspection if I want to, I could set up a system that way. If the material was set up for quality inspection with the QM module. That would be on quality inspection. And I could not change that since our material doesn't care about quality inspection. I can handle that manually if I want to. We have under-delivered over delivery tolerances, not a good idea with pumps, but maybe be required for, well, both and so on. We have the storage location where to produce that for if that were produced in batches, we could enter the batch here and so on. Then we have master data. So we have a routing and this is the number of the routing that system. The system found out to be valid for this audit. This is the bill of material the system found out about. And so the system proves in that routing and that bill of material in order to create this, um, production audit. Okay. This is only headed data. And we do not yet have a production order. You see this by this number. We haven't saved it, but we can still, um, um, check everything that is to be created. If I want to look at the routing here, we have the operation overview. I go there and then I see, I'm sorry for the German names here. We have never translated that you can see, um, the steps to be carried out in different work centers. That are set up here. So there must be a lot of master data. And in the background that is already set up in order to have this thing working, we have to have work centers in order to have work centers. We have to have cost centers. We have to have routings. Of course, we have to have that. And we have to have a bill of material. I'm switching to the bill of material. That is it. These are the components required to create or pumps. Some of these components are semi-finished goods. So we produce them our own. Others are, um, purely raw material. Like for exact example, the screw we have just bought or the sheet metal and so on. So some of the components are produced some, a board it's necessary to have that components. To check, whether it be half, all that components by now, I can click on the check material availability going there. I'm lucky enough to see all check materials and all that are available. I can also check the capacity of the book centers. We've seen them, the routing checking capacity, the system sets. Oops. We have work centers with overload. Okay. I get into the detailed info and I can see that for this period. Um, we have an availability and we have requirements that are high above that availability. We have a capacity load on a certain period of 558. Dot 9%. So it looks pretty much impossible to do that, to do that. Okay. This system recognizes situations like that and wants me. We have other production orders at the same period at the same week as a calendar week here, we have other production orders that require the same work center to do something for that other production orders. So what can we do in a real life situation? I could go to a DJ reporting and find out which other production orders, um, will steal the time of our work centers that we need. Since this is an example system, I simply ignore that. Okay. So I confirm that our people can have the can, can handle that overload. They do that all the time, poor guys. So I confirm all. And now capacity availability is there because our workers are very, very hard working and they can do that. Okay. So now this is fine. Um, after having done that, we can save that order. Here we go. I could save, and then we have a material. Uh, we have a production order. Oops, sorry. We have a production order. And down here, we can read the number of that production, whatever that was that I'm getting out of here again. And just to check what happened. I go to MD zero four, again, opening MD zero four with our well known material number. Now there is no longer a plant audit to be seen. We have a production order instead. Plant audit is completely well done because we've converted it completely into a production order. And this is what we're going to handle. Okay.
Video 2: Production and Planning Processes
We've already created the production order, but let's talk a bit about the concepts here. First of all, let's talk about the master data that are required. You have already seen some of that. Obviously we require material masters. We may require a material master that goes to the header of the bill of material, and that is the finished good that you're going to produce. It's also going the same material master to the header of the routing. Then you need material masters for each and every item in the bill of material. Once you have all that material masters in your system, you can create this bill of material. You cannot do that before you have the materials that we have here as well. The bill of material, it has items with the components. It has the header with the finished good that's obvious. It has lots of details in the items like how to use that and so on. So this is one big master data that you are required, additionally, to the material masters, another big master data that you require. Additionally is the routing, the routing. Is the sequence of operations to be carried out in production to finish that material. Okay. Operations on the sequence of the number in each operation is done by a work center. So a work center is assigned to the operation and you see that assignment indicator. There is one work center in each operation and each operation is assigned to one work center. And so it's a one-to-one connection. Um, I work center must be assigned to a cost center because in all of SAP, the cost center is the only element that can carry out activities. So the book center is not doing that. The cost center is doing that from the point of view of SAP. But it's doing that through the work center, if you work on a production audit. So from the point of view of the production order, yeah, the cost center is not visible. The book center is invisible, but behind that that's a cost center. One cost center can be used in multiple work centers. So you can set that up. Your manufacturing, your production, part of your company as one work center with multiple, uh, excuse me, at one cost center with multiple work centers, we can do that. It's in. It's a one to many connection here. The cost center that is a controlling element and must be set up in the module. Controlling only can be used for production. If you have set up activity types that are assigned to a cost center, a cost center can deliver different activities and for each activity type and for the period, uh, and the calendar year. You want to use that for production? You have to plan that cost center with tariffs, with prices, for that activity. I could tell the system that one hour of production machine costs 100 Euro and one hour of production, personal cost, 60 Euro, or something like that, depending on the machines that you have, depending on the qualification of your personal. That could be different. And so you can set up different activity types with different prizes in the operation of the routing. You mentioned which activities are required for which duration to produce a certain number of finished goods. So as for the pumps, you can tell the system in operation tend to carry out that operation 10 minutes. Person of personal work is required. So it calls up the activity type, um, personal or manual work. And the manual work may be priced with 60 euros per minute. So six minutes costs six euros for, uh, 10 minutes cost six euros for that. Okay. Um, this is how you set up your master data and all these master data are required, including the planning for the cost center planning itself is not master data, but it's also required. Now, if you're a manufacturing is more complicated. If you want to add more information to your product, if you give more information to production, or if, for example, your material is a serialized material, other. Master data are required. Also let me show, oops, that was the wrong direction. I'm sorry. Let me show it to you. This is the direction I wanted to go here. Here. We have serial numbers, um, that can be set up in the system. The system creates that serial numbers that are handled as monster data and the system, and that are assigned to the material that you have produced. Of course, it's your produce can produce multiple. Um, numbers of the same material. You have to create multiple serial numbers for that. You can assign documents to your material, like technical drawings, like instructions and so on, and you can handle your material as an equipment. And equipment is individualized. If you look at cars, there may be a certain brand and a certain type of car that is produced hundreds and thousands of time, but a single car has a license plate and therefore it is individualized. So you would say there is a material that has a material number that can show up hundreds of thousands of times, but this single one. Um, politics, let's see another one, uh, material that you have here that isn't individualism because it has an individual equipment number. And so it has its own history of maintenance and of, uh, faults that may happen off of, of well, of problems that occur and so on. And all that can be stored in SAP. Okay, so, but this is not exactly like quiet, the same deck for the engineering change master. You can set up your system that this is required, but in order to have a simple production, you don't really need that. Okay. There's what's for the master Dodger. Now let's continue and look at the process. We have a slide here, the process off your. Production order production order usually is copied out of a plant order, but you could theoretically and also practically create your production order manually. It's rarely done, but you can do that. Okay. Production order once the production order is created. And all that master data is required for to do that. Then you have order and the status created. It's just there and you cannot do lots of stuff with that. First of all, you have to release that order. You may carry out availability checks. We have done that in our example, um, But finally you have to release your order. So the order can carry actual costs who can post actual cost against that. Usually with the auto leads, you print the order, you can do that automatically with goodies, or you can have a manual print of that order. So you trigger the print out of the order papers. You may carry out the stock withdrawal again. You can have that automatically. Um, Done by the system. Whenever you use that material in a certain operation, or you can do that upfront as a manual process, this is the way we want to do that. And then you start processing, meaning you carry out operation by operation, and whenever you have finished an operation, you, um, you confirm that you have finished that operation. The last step. Would be the confirmation of the last operation. And then your completion is confirmed the completion of all of your production orders confirmed. After that, you can have, have a goods receipt of that finished goods into your stock. You can do that also automatically with a last confirmation of the last operation, Christmas Eve takes place automatically. Our system is set up like that, but this is about customizing. Well, okay. After that you or anybody else or somebody else, excuse me, working in controlling can calculate the overheads of the cost. And then finally the order can be settled after the settlement, which is finance and controlling part. And usually it's not done by production people. The order can be closed at, can be checked, unequally closed. Meaning this audit is done. You cannot use that order anymore. It's there for reporting, but it's not longer usable. Okay. And after a longer part of time, you can archive that or delete that order. It's finally closed.
Video 3: Confirmation of Release Issue and Goods Receipt
Back to SAP. I am starting to work with the production order production shell. Start for that. First of all, I have to release my production order transaction that I use for that is meaning change production order. That's a production order of just created. I get in here and we'll easing over production order is easy enough because I only have to click the green release flag. If visits done. The status, R E L like Louise pops up here and that's all I need to do. Well to make my, um, my continuing that process a little bit easier. I copied them order number into the clipboard in real life. You don't do that because different persons to different stuff to that. And here I will do all that. So I copied that number into the clipboard, and then I save that production order that is now released. Okay. With saving that it takes a while the system classifies that system starts printing in a real environment here, it doesn't print. And so we have that order saved as a least audit. Since it's at least we can use that. What four can we use that? First of all, we can issue the components, meaning that we can take out the components of out of stock. And, uh, take it into the production area. We use our well-known transaction Migo to do that opening Migo, uh, set up Migo as goods issue because that what it is, whenever we talk about goods movements, we look from the point of view of the stock. And if you look at components going to production from stock, it's not a goods, receipt and production. It's a good issue from stock. And since we look at the point of view of stock, we do that goods issue for order, which is good enough. So we enter the order number that I have copied. I hit enter. And now the system shows me which components. Are required for the order. And I can issue all that components, uh, since there are multiple components issued and this is still set up from the last time I used that with, um, the extended detailed view down here, I close that detailed view. And so I've better overview over the audit. I have to manually check all the items. Okay. That also is easier in that overview screen than it is in the detailed screen. So it doesn't matter that I closed it. I don't need that. Anyway. I checked everything. Okay. Okay. And now I post the goods issue. Well, it takes a while. Multiple materials. Okay. Done. Looking at the order now. Oh, zero two. I go there again. I opened that order. Well, the status is changed because we have goods movements posted. If you want to read that status, symbols, each and every symbol is a single status. That is the main status. So I could at least, and there are. Well, the lesser status, symbols that have other meaning, um, that will be changed automatically by the system. If I want to know what that means, I click on that. I button like status overview. These other elements, datasets it's released it's pre-cost goods movements were posted, were posted material availability is not checked didn't we check that. Well, probably we, before we saved that order. Okay. And the settlement rule is created. It's done automatically with your audit types. So we always have in settlement rule and that waters. I get off here again. Yeah. That is what I wanted to show up. And once the components are issued, I see that in another, in another place, if I go to the component overview in that order here, I have to requirement quantity and further to the right. I have the committed quantity and the withdrawn quantity. And so I see exactly that these components are withdrawn. Well, wait a moment. One component is not withdrawn, but 10 of that, no 80 of that are required. Isn't it? Yeah, no 10 of that are required. It's the, um, the second from behind is this one. Why is that? This is because this component. Will be issued when I confirm the step where this is used. So this is an back flushed component. You could set up all components to be back flushed. And many companies do exactly that. In our example, most components are handled manually, meaning are issued manually, but this component is back flushed. When you, um, when you, uh, confirm the operation where this is used. Okay. Wanted to show you that I'm getting out of that audit again. Um, the next step is now I have all the components and I can stop working with that components, meaning that I will carry out all the operations that we have here. And so I confirm operation by operation in real life. You usually do that on your machine. If you have, um, The machine, if your machine is able, uh, to connect to SAP and tell SAP that a certain operation is con is to be confirmed. Otherwise you can do that manually. And for that, that is a transaction C Oh 11. And as a transaction again, do you need here? I've printed out confirmation slips. There's a confirmation number on, on that slip. I can, I can use that to enter that in the confirmation number field that you just see up here. If I don't have the confirmation number, because I haven't printed out anything in this example, I can of course enter the audit number. Then I have to go to the operation and deselect select the operation to be confirmed. Must be confirmed in the sequence of. Uh, carrying out the operation. First, I have carried out the first operation it's in German. Unfortunately that means, um, issue the components double click on that it entered the system says, well, I have components for 10 pumps. That should be the way. And the labor is one and two third of an hour. One dot six, six, well, and endless sixes. So it's one, two third of an hour. Meaning one hour 40 minutes is decimal hours, which is usual in production. Um, if I have had spent longer time, like for example, I required two hours. I couldn't set it up like that. And then I can save that. Okay. Confirmation is saved. Um, the transaction is not left. It's a seamless screen transaction that is always on. So I can use that exactly to, to create the next, um, confirmation. If I go in here and look at the list of operations. Of course operation is not longer here because operation is completely confirmed. Completely confirmed means I have confirmed all that because I have confirmed 10 pieces of that pump. Now it's operation 20. I hit enter. That means that the, the, the plant chime and the plant time for setup and the plant time for labor. Uh, is visible. And so I could tell the system, I only required four hours of labor while that, uh, 15 minutes units. Um, it's okay. Um, but since it was late this evening, I could only finish five pumps and I want to con continue tomorrow then. Of course, that shall not be a final confirmation. But that would be part of confirmation that we have here. I hit enter to check that everything. Okay. I save that. Okay. I go home next day. I come again. I continue with that operation that I finished that operation completely. I enter the same order number. I go to operation select that I see operation 20 is still here and has already confirmed with five. So I select that hit enter. And now the year that the system, um, defaults in here is the missing five. Okay. It took me two hours and something to do that let's assume that's correct. I save it. And so I have to go through and I have to go through operation by operation to do that. By now I've finished all the operations. I've confirmed all the operations except of last operation, and that's what I'm going to do now. So I enter the order number. I select the operation and there's only one operation left to confirm that's the last one. And the last one is a special one because with confirming this operation, the system would post the goods receipt of the finished goods.
And you can see that at the bottom line of the screen, the status line, I'm going to save that and look at the status line. Confirmation saved goods movement, one failed zero. That's good news fair zero. Isn't it. So I'm done with my production. I finished production. My, uh, finished good is in stock. Now I've seen that confirmation and now we can start delivering that.