Repetitive Manufacturing SAP Best Practices
Purpose, Benefits, and Key Process Steps • Purpose • Repetitive Manufacturing is commonly used when a production process meets the following criteria: • The same or similar products are produced over a lengthy period of time. • The products produced are not manufactured in individually defined lots. Instead, a total quantity is produced over a certain period at a certain rate per part-period. • The products produced always follow the same sequence through the machines and work centers in production. • Routings tend to be simple and do not vary much. • Benefits • Simplified handling of the production process with full cost control • Key Process Steps • Creating Planned Independent Requirements • Material Requirements Planning at Plant Level • In-House Production • Confirming Assembly Activities
Required SAP Applications and Company Roles • Required SAP Applications • Enhancement package 6 for SAP ERP 6.0 • Company Roles • Shop Floor Specialist • Production Planner • Warehouse Clerk • Production Supervisor
Detailed Process Description • Repetitive Manufacturing • Make to stock production REM • Repetitive Manufacturing is in this case a purely for make-to-stock production based on run schedule headers. This means that production is controlled without a direct reference to the sales order. Run schedule quantities determine the dates and quantities. Requirements are created in Demand Management. • Make to stock production REM-Material requirement Planning • The daily MRP run generates planned orders for the material that is to be produced. The system automatically generates purchase requisitions for purchased parts within the 3-month opening period for the planned order. • Make to stock production REM-Planning table • Within the framework of repetitive manufacturing, planning and control is carried out on the basis of time buckets. Starting from the existing requirements situation. • Make to stock production REM-Backflushing • Production completion confirmations are simplified and are made with reference to the material being produced. The completion confirmation includes the backflushing of components and the posting of production costs • Make to stock production REM-Cost Object Controlling • In repetitive manufacturing, cost will be determined per production version via a product cost collector (product cost per period).
Process Flow Diagram Repetitive Manufacturing Event Beginning of Planning Cycle Periodic Plan Revision Strategic Planner Logistics Planning (144) Production Planner Create Planned Independent Requirements Operative MRP Planning Table Production Supervisor Range of Coverage Warehouse Clerk Procurement of Stock Material Staging Pick List Shop Floor Specialist Repetitive Manufacturing Backflush Post Processing List End Process Inventory Consumption @ Standard Cost Inventory Receipt @ Standard Cost Reprocessing List GI/GR Slip Plant Controller Period-End Closing “General” Plant Financial Accounting (181) CO-PA =Profitability Analysis, MRP = Material Requirements Planning, GI/GR = Goods Issue/Goods Receipt
Diagram Connection Legend <Function> Hardcopy / Document External to SAP Financial Actuals Business Activity / Event Budget Planning Unit Process Manual Process Process Reference Existing Version / Data Sub-Process Reference Process Decision System Pass/Fail Decision