Production Planning and Control with SAP ERP

by Jawad Akhtar

In Part I of this book, starting in Chapter 2, we cover the broad outline of the entire book and why you should proceed to implement a specific functionality or how it will benefit your business processes. We’ll discuss the enterprise structure that you’ll need to set up in the PP component, which at the same time also depends on the enterprise structures of other components. The enterprise structure forms the backbone of the SAP ERP system, in which all the important business processes of the company are mapped. Eventually, reporting also takes important elements from the enterprise structure.

In Part II of this book, we move forward with covering the configuration basics that you need to set up for each production type. However, the primary focus of the three chapters in this part is on the configuration basics only, whereas the actual and practical use of configuration basics are covered with the business processes in Part III. Chapter 3 covers the configuration basics of discrete manufacturing, whereas Chapter 4 attends to the configuration basics of process manufacturing. Chapter 5 covers the configuration details that you need to know for repetitive manufacturing.

Part III of this book discusses the production planning workflow by each production type, and here we make logical connections to the business processes of each production type for which we undertook the configuration in the relevant chapters of Part II. Chapter 6 provides an in-depth coverage of the business processes of PP in discrete manufacturing. Chapter 7 brings out the similarities and differences between discrete and process manufacturing, but remains primarily focused on the process industry-specific functionality known as Process Management. Process Management then matures to a user-friendly functionality known as XSteps. In the same chapter, we also cover how to use the Process Manufacturing Cockpit. The focus of Chapter 8 is on the important business processes of repetitive manufacturing, in which, once again, we make consistent and logical links to the configuration chapter.

Part IV of this book covers the PP workflow tools. Chapter 9 focuses on Sales and Operations Planning (SOP), in which we cover product group, flexible planning, and standard analyses in flexible planning. Forecasting as an invaluable planning tool is also covered in this chapter. Chapter 10 is on SAP Demand Management, in which we cover planning strategies and production methods such as make-to-order (MTO) and make-to-stock (MTS). Material requirements planning (MRP) is covered in Chapter 11, in which we discuss the planning calendar and also MRP areas. In Chapter 12, you’ll see how you can use MRP to successfully execute Long-Term Planning (LTP) to simulate what-if planning scenarios.

Part V is all about optimizing PP. Chapter 13 covers special procurement types, such as subcontracting, phantom assembly, procurement or production at another plant, withdrawal from another plant, consignment, and pipeline materials. In Chapter 14, we show you how to manage the capacity requirements planning (CRP) in your SAP ERP system, including its evaluation and leveling. Chapter 15 covers the versatile and dynamic functionality of the classification system, which is cross-modular and finds several applications not just in the PP component but also in other Logistics components. In Chapter 16, we show you how you can leverage Engineering Change Management (ECM) to bring better control and visibility to your master data creation processes or the changes made to already-created master data, not just in the PP component but also in other Logistics components. The co-products and by-products that the actual production process generates find comprehensive coverage in Chapter 17. The option to record details specific to a shift or for various shifts in a day and then be able to generate a report is covered in Chapter 18 when shift notes and shift reports are discussed. A dedicated chapter on the Document Management System (DMS) in Chapter 19 is to reflect upon the importance of having a plethora of a company’s digital assets in a secure environment that is also easily accessible when needed. DMS is also a cross-modular component, and you can implement it not just in the PP component but in other Logistics components. Next, in Chapter 20, we show you the benefits of implementing the digital signature functionality in your business processes to eliminate or reduce the manual signature and approval process. Digital signature is also cross-modular.

The last part, Part VI, is all about monitoring and evaluating your PP component in SAP ERP. In Chapter 21, you’ll learn how to quickly set up alerts in your SAP ERP system with the Early Warning System (EWS) to closely monitor important deviations to your business processes and take quick decisions and actions. You can also set up EWS in other Logistics functions, if needed. In Chapter 22, you’ll learn the features, fun...

1028 pages, Hardcover

First published September 1, 2013

About the author

Jawad Akhtar earned his Chemical Engineering degree from Missouri University of Science & Technology, USA. He has 17 years of professional experience, of which 10 years is in SAP. He has completed eight end-to-end SAP project implementation lifecycles in the areas of PP, QM, MM, PM and DMS in Steel, Automobile, Chemicals, Fertilizer, FMCG, and Building Products Industries. He has also worked as an SAP Integration Manager, as well as SAP Project Manager, and been proactively involved in a business development and solution architect role for seven years. His profile on LinkedIn is at http://pk.linkedin.com/in/jawadakhtar. You may reach Jawad via email at jawad.akhtar@live.com or follow him on Twitter @jawadahl. Currently, he is associated with AbacusConsulting as Head of SAP Delivery.

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