Production Planning

Production Planning

1. 1.- Change material master record

   • Logistics ► Production ► Master Data ► Material Master ► Material ► Change ► Immediately
     • In order to plan GBI’s deluxe touring bikes (black, silver and red) prepare their material master records by changing the MRP 3 view

2. 2.- Create Consumption Values for Finished Product

3. 3.- Change Routing

   • Logistics ► Production ► Master Data ► Material Master ► Material ► Create (Special) ► Finished Product
     • Create a forecasting view and associated consumption values that will permit forecasting of future consumption for our product.

4. 4.- Display Product Group

   • Logistics ► Production ► SOP ► Product Group ► Display
     • Display the product group (product family) for all your Deluxe Touring bikes.
       • A product group (product family) supports high-level planning. This way, it is not necessary to delve into the minutia of creating planning forecasts for every material in the company.

5. 5.- Create Sales and Operations Plan

   • Logistics ► Production ► SOP ► Planning ► For Product Group ► Change
     • Create a 12-month sales and operations plan (SOP) for your product group.
       • A sales and operations plan (SOP) is a planning tool used to consolidate data for forecasting future sales and production levels as well as the methods needed to meet those requirements. In this task, our SOP will be based on historical consumption.

6. 6.- Transfer SOP to Demand Management

   • Logistics ► Production ► SOP ► Disaggregation ► Transfer PG to Demand Management
     • Transfer the Sales and Operations Plan to Demand Management.
       • Demand Management is the tool used to disaggregate planning data from high-level plans down to the detailed planning level. For this task, planning for the Deluxe Touring Product Group will be broken down into the individual components that belong to this group.

7. 7.- Review Demand Management

   • Logistics ► Production ► Production Planning ► Demand Management ► Planned Independent Requirements ► Display
     • Review the requirements for the product group to ensure that there are production requirements for the individual production items.

8. 8.- Run MPS with MRP

   • Logistics ► Production ► Production Planning ► MPS ► MPS ► Total Planning ► Online
     • Run Master Production Scheduling (MPS) to generate a series of planned orders that satisfy the requirements from SOP and demand management. Concurrently with MPS, the MRP materials will be processed leading to the generation of planned orders for dependent requirements that have been created by the BOM explosion process.

9. 9.- Review Stock/Requirements List

   • Logistics ► Production ► Production Planning ► MPS ► Evaluations ► Stock/Reqmts List
     • Review the Stock/Requirements List for your deluxe touring bikes.
       • The Stock/Requirements List is a dynamic list which dynamically changes whenever a transaction occurs using the given material. Display and review the Stock/Requirements List for all materials in the deluxe touring bike product group on hand and the demand that exists against these products. The report shows that there is no stock and therefore nothing is available for use at this time. Stock/Requirements List

10. 10.- Convert Planned Order into Production Order

    • Logistics ► Production ► MRP ► Evaluations ► Stock/Reqmts List
      • Convert a planned order generated in the MPS/MRP run to a production order. The stock requirements list displays the suggested planned orders from the MPS run.

11. 11.- Receive Goods in Inventory

    • Logistics ► Materials Management ► Inventory Management ► Goods Movements ► Goods Receipt ► Other
      • Receive enough goods in the Dallas storage locations to start the production process.
        • Usually, at this point the purchasing department in Dallas would take over and procure enough raw materials from vendors to fill the inventory so that the production process can be initiated. In this case study, we are bypassing this procurement process (this process is explained in the MM unit in detail). Because the inventory for all DXTR1### components is empty, we will assume that we find 100 pieces each in the storage location.

12. 12.- Issue Goods to Production Order

    • Logistics ► Production ► Shop Floor Control ► Goods Movements ► Goods Issue
      • Now that all necessary components are on stock issue them to your production order in precise quantity.
        • The goods issue process is fully defined in the production order, BOM, and routing. The quantities and the materials are reserved for this specific production order, will be withdrawn with reference to the order number, and will be used to assign actual costs to the production order for managerial accounting purposes.

13. 13.- Review Production Order Status

    • To display the production order, follow the menu path: Logistics ► Production ► Shop Floor Control ► Order ► Display
      • Review the current production order with respect to the status of the order.

14. 14.- Confirm Production Completion

    • Logistics ► Production ► Shop Floor Control ► Confirmation ► Enter ► For Order
      • Confirm completion for your production order.
        • When the assembly has been completed for the current production order, we need to confirm that certain procedures and activities have been completed and record the quantity of the end product that has been manufactured.

15. 15.- Receive Goods from Production Order

    • Logistics ► Production ► Shop Floor Control ► Goods Movements ► Goods Receipt
      • Post a goods receipt from your production order.
        • Receive the completed products into finished goods inventory. Check the quantity purposed against the quantity specified in the production order and the quantity specified during confirmation. If there are any discrepancies, the system will decide if an error or warning message should be generated depending upon the deviation identified.

16. 16.- Review Costs Assigned to Production Order

    • Logistics ► Production ► Shop Floor Control ► Order ► Display
      • Display and review the costs that have been assigned to your production order.

17. 17.- Settle Costs of Production Order

    • Logistics ► Production ► Shop Floor Control ► Period-End Closing ► Settlement ► Individual Processing
      • Settle the costs of your production order. The costs are temporarily captured in the production order and they need to be assigned to an appropriate cost object. Compare the actual costs to the planned costs to identify any deviations or potential problems in this regard.

18. Cindy Arantza Valle Lilia Paola Huizar