Understanding Student Learning Outcomes In SAP Production Planning

Explain the concept of Production Planning

1. Describe in detail your understanding of the student learning outcome.

2. Outline the business process associated with this outcome and

3. Elaborate how SAP helps manage this business process.

The SAP Production Planning is important to handle the different business data which is related to the company production. The R/3 modular data has been classified into the master and the transaction data where there is a possibility to work on the different module objects. This is for encompassing the activities like the Material Requirement Planning, Bills of Material, Routings, and the other capacity planning. (Kilger et al., 2015). There have been details about the records and the track of the planned cost, actual cost and the material flows. The SAP solutions help in the simplification of the execution and the maintenance of the necessary business rules. There is a need to work on the acceleration of the response to change the business alternatives with the consistency in the enterprise-wide enforcement. The Business Planning Management helps in handling the systematic approach which will be able to optimize the operational processes with the reduced costs and the improved quality process.

The production planning and the control are based on the execution of the quality and the maintenance of the plant. There is a need to determine the resource planning with the sales and the operations and the product demand. The determination is based on generating the master production schedule with the handling of the repetitive manufacturing, job shop manufacturing as well as the assembly line sequencing. The production is created by a particular order where the system can calculate the estimated material with the routing for the order execution. (Meyr et al., 2015). The system adapts to the planning where there is a change in the operational tasks, sequence of the operations, order content, and the material blogging. The production planning and the control are integrated where it can receive the planned production orders from the planning engineer along with the operations with the specific manufactured items.  

At the time of production order statistics, the functionality can provide the information about the actual and the estimated costs for the different production orders which are in respect to the materials which is consumed. The information helps in the proper planning with the execution.   

There is a sales info system which contains the total sales order which has been based on the incoming sales with the pending sales which are depending on the product wise, customer wise scenario. The forecasting is based on the figuring of the sales for the product. The sales and the operations with the demand management can handle the sales forecast and the sales order. (Lorenc et al., 2015).  

Components of the Planning and Execution

MRP & MPS: The planning of the items is influenced by the profit of the company and the production process. After this, the firms are firmed up with the total plan of the components and the creation of the different purchase requisitions. This work on the creation of procurement plans with the calculations of the generated planned orders.  

The manufacturing execution is based on discrete manufacturing where the production orders have been released with the issued materials, completion confirmation. The repetitive manufacturing is for the running of the schedules parts through Backflushing. The order settlement is when the cost has been accrued to the order and is debited to the different allocation receivers for the financial accounting process. (Lokowandt et al., 2015).

1. The stock and the requirement lists with the planned production order.
2. The plan for the production and the order (pending/completed).
3. Consumption of the material.
4. Quantity produced in the period with the work center loads.
5. The missing parts for the production and the backlog of the load.

There is a need to determine the sales and the operations planning to determine quantities which are produced to meet the sales plan.  

• Synchronizing to the sales plan where the system holds the copies of the sales to production.
• Zero stock level for the existing stock to cover the sales. At the used up times, the production quantities will be able to handle the sales quantities.
• The Target stock level for determining the production quantities.
• The target days’ supply

There is a need to transfer the single level or the individual level product group with the specific requirements, version and the scope. The master planning is based on the consumption strategies with the specification of the delivery dates. The master production scheduling is the planning, time fence, and the interactive MPS. (Rajendrakumar et al., 2015). 

This is based on the product for the stock where the plan is of using the independent requirements. There’s a need to use the net needs and the gross requirements which include the warehouse stock and excludes it respectively. The planning requirement is LSF which is for the planned independent requirements to handling the production push, planning and the sales from the stock. 

This is for the manufacture of the customer sales with the planned requirements to drive the demands. There is a longer leading time to produce the customer who is willing to wait. The sales order can consumer the anticipated requirements with the long lead time custom products. The planning with the planning material is to hold the bill components and work on creating the planned orders for the different finished products with the reduced planning quantities. The make to order production is based on the sales order number. There have been different product numbers for the sales where the orders are managed through the procurement costs. (Mukhopadhyaya, 2015). There are different sales requirement type without the consumption. The MRP strategy includes the net demand calculations with the internal and the external production and purchasing, bills of the material explosion, order scheduling, forecasting and the lot sizing. 

Standard Production Planning

The master data views are important for the different number of the information screens. The views belong to the org unit in the buskins. There have been multiple plans and the sales values.  

The production planning of SAP includes the MRP, work schedule, storage, warehouse and the quality management with accounting and costing.

The BOM has been for the requirement planning and the production costing, with the work center involving the scheduling, capacity, and costing.  

These are mainly for related to the area of validity, validity period. The structure is based on categorizing the representation of the different object where the structure of the products is manufactured with the aggregate number of BOM in the group. The item category is for the controlling of functions like the screen resolution, accurate processing which includes the stock and the non-stock items. (Stadtler et al., 2015).  

The production processing and execution is based on documentation of the order at the time of forecasting. The document contains no real consequence. There is a need to work on the release of the production order with the proper movement. When there is a confirmation of the production, then the consumption is based on the finished products to the warehouse. There is different sales and operations planning process which hold the assets to the sales and the operational plans. The materials can plan the product groups along with determining the sales quantities. The MRP is concerned to the integration of the individual plans with the supply chain management. The profitability analysis holds on the revenue and the sales plan with sales and operation planning, master planning and the material requirement planning. 

The MRP control parameter is to determine about the creation of the requisitions and the delivery schedules. There have been options which are only for the creation of the planned order to automatically work on the opening periods for the planning horizon. The opening period can use the MRP automatic creation with retaining control over the different open purchasing documents.  

After the production order has been delivered adequately, then the order is marked as completed.

SAP can work on the execution process through the use of the standardized notation. The joint modeling is based on the processes by the business and the IT specialists. The central process execution and the provision of the interfaces are mainly for the business users to handle the business rules with the processes. (Zvezdov et al., 2016). SAP is based on the management technologies to monitor and adjust the changing needs of the business and the improvement in the operational efficiencies. There is a need to manage the full process lifecycle which will be from the process analysis through proper implementation, modeling, and the execution process.

Production planning module, its internals and the views

Some of the planning process includes:

The forecasting which has the logistics production, planning of the different requirements.

There is a need to calculate the requirements by MRP run and work on the conversion of the purchase requisitions in the POs.

There is a need to wait until there is the availability of the raw material and then release the order for production. The understanding and the processing of the production order is based on understanding the process of execution. SAP focus on the production order creation through the proper determination step and then directs to the production order release which is based on handling out the rules manually with the defined configuration plans. The movement of the goods for the production order with the proper reservation helps in the material usage statistics, material documenting, cost object allocation, getting the update of the account and the update of the reservations. 

Conclusion

The Enterprise Resource Planning focus on the software solution in the organization to make the information flow between the different business functions. There has been the management of the organizations to work and integrate the various departments and the services. (Pinedo, 2015). In the business, ERP ensures the customer satisfaction with the business development of the new products, areas, and the services. This will allow the business to implement and provide the processes where the different software is not able to meet the needs of the business. The integrated business process has been to cover the various aspects of the ERP environment which are based on the utilization to implement the SAP system. The role of the enterprise builds on the various functional perspectives which include the product planning, purchasing and the marketing and sales. The Enterprise Resource Planning has been accurate which is kept at a maximized efficiency, and the integration ensures the productivity, communication, and the efficiency. There is adopting of the ERP software which can handle the changes of coordination which also provides the top-down view of the organization. 

Reference

Kilger, C., Reuter, B., & Stadtler, H. (2015). Collaborative planning. In Supply chain management and advanced planning (pp. 257-277). Springer Berlin Heidelberg.

Meyr, H., Wagner, M., & Rohde, J. (2015). Structure of advanced planning systems. In Supply chain management and advanced planning (pp. 99-106). Springer Berlin Heidelberg.

Lorenc, A., & Szkoda, M. (2015, May). Customer logistic service in the automotive industry with the use of the SAP ERP system. In Advanced Logistics and Transport (ICALT), 2015 4th International Conference on (pp. 18-23). IEEE.

Lokowandt, B., & Siebert, S. (2015). U.S. Patent No. 8,942,839. Washington, DC: U.S. Patent and Trademark Office.

Pinedo, M. (2015). Scheduling. Springer.

Lokowandt, B., & Siebert, S. (2015). U.S. Patent No. 8,942,839. Washington, DC: U.S. Patent and Trademark Office.

Rajendrakumar, M. S., Parvati, V. K., & Ram, M. A. (2015). Integrated Production Management System.

Mukhopadhyay, S. K. (2015). Production planning and control: Text and cases. PHI Learning Pvt. Ltd..

Stadtler, H., Kilger, C., & Meyr, H. (2015). Prof. Dr. Bernhard Fleischmann is professor emeritus at the University of Augsburg, where he held a chair for Production and Logistics 1991–2010. 1978–1991 he was a professor of Operations Research at the University of Hamburg. Supply Chain Management and Advanced Planning, 545.

Zvezdov, D., & Hack, S. (2016). Carbon footprinting of large product portfolios. Extending the use of Enterprise Resource Planning systems to carbon information management. Journal of Cleaner Production, 135, 1267-1275.