1. Describe the Production Planning and Execution process (as implemented in SAP ERP) starting from sales and operations planning all the way to the receiving of the finished goods into stock. Use a diagram to show the linkages between the different modules. a. Production planning attempts to fix production problems while closely estimating the necessary resources to do so. This plan has an end result that hopefully produces the same product in less time with less product. This plan can also forecast potential production problems and if caught in time, can effectively eliminate the problems by adjusting forecasts accordingly. PP is based on sales forecasting and leads to production control.
The execution process comes into play when the orders are released and materials are issued. The previous step, planning, set the groundwork for the execution process. When the plan is executed, the materials are then released resulting in products. Finally, the goods are received into stock.
The linkage of this concept form sales to finished goods can be seen below:
2. What is Master Data? Describe the different types of master data (with sample attributes) needed to enable production planning and execution. a. Master Data can also be termed reference data and is any type of information that can be viewed as a pivotal operation of the business. Some of the data included are employees, customers, clients, inventory, etc. b. Some of the different types of master data are customer data, vendor master, material master, pricing data, HR master data, BOM, standard networks, standard WBS, work centers. Attributes are info objects that are logically subordinate to a characteristic. For instance with a COST CENTER you could assign attributes like PERSON RESPONSIBLE FOR COST CENTER or TELEPHONE NUMBER OF THE PERSON RESPONSIBLE FOR COST CENTER. Attributes can also be associated with text fields such as dates, names and numbers.
3. Discuss how Master Production Scheduling might be carried out in an Assemble-to-Order environment. What planning strategies does SAP ERP offer in this area? a. Assemble-to-Order (ATO) occurs when a customers order is received. Key components (bulk, semi-finished, subassembly, etc.) used in the assembly are already planned and likely stocked. The actual receipt of the order from the customer launches the actual assembly of the finished product. This can be useful where a large number of end products can be assembled from a number of common components. b. The planning strategies offered by SAP ERP regarding MPS and ATO are ATO with production orders, ATO with variant configuration, ATO with projects and ATO with planned orders. ATO with production orders are useful for a number of reasons—they may require status management functionality, want to use collective order functionality, want to use rework functionality or want to produce co-products. ATO with variant configuration allows the availability check to be carried out at a component level only. ATO with projects uses networks and projects for those that manufacture or engineer their products but do not know how the sales order will be executed. ATO with planned orders are beneficial if production control is managed using production orders or if production is controlled using repetitive manufacturing.
4. Explain the meaning of the following terms (as used in SAP ERP): a. Planning Time Fence and the Firming Type
i. Time fences are boundaries between different periods in the planning horizon. They also provide guidelines to establish where various restrictions or changes in operating procedures take place. Firming type determines how procurement proposals are to be firmed and scheduled within the planning time fence during planning run. b. In-House Production...
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