ERP Final

1. Describe and define Bill of Materials and how they differ in the different process industries.

-Identifies the components needed to make the material

-A component can have its own BOM to create a multi-level BOM

BOMs are used in

Material planning

Production

Procurement

Product costing

2. Describe a Work Center.

A physical location where specific tasks in production are performed

3. List examples of work centers.

Machines, assembly lines, or production cells

4. Define material staging.

Preparing materials at the required location before production

5. Know the material master data for the MRP (material requirements planning) and work scheduling.

MRP (Material Requirements Planning):

MRP type (e.g., manual reorder point, automatic planning).

Lot size (defines order quantities, e.g., fixed, minimum, or maximum lot size).

Procurement type (in-house production or external procurement).

Planning time fence (restricts changes to planning data within a set period).

Safety stock levels to manage unexpected demand.

Work Scheduling:

Production scheduling profile (defines lead times and scheduling parameters).

Planned delivery time (time for procurement or production).

Production version (identifies specific BOM and routing for production).

Setup, processing, and teardown times for production operations.

Plant-specific data like shift sequences or labor allocation.

6. List and describe the steps in the production process

Includes planning, scheduling, staging materials, execution, and completing production orders

7. Know what triggers production using the make-to-stock strategy

Triggered by forecasted demand or planning orders

8. Know the result of a goods issue to a production order.

Reduces inventory and updates production costs

9. Know the good movement options.

Include goods receipt, goods issue, stock transfer, and transfer posting​.

10. List examples of storage types.

Racks, bins, shelves, or pallets

11. Know what is grouped in a picking area

Materials that are frequently picked together for orders

12. Identify the document used to plan the movement of materials.

Transfer Order

13. Describe the process of changing the status of a material

access material master and then change the status field

14. Describe the role/purpose of warehouse management.

Ensures efficient storage, retrieval, and movement of materials

15. Describe materials planning process and why they are used.

Balances material demand and supply by determining what, how much, and when materials are needed​

16. Know the organizational data elements of material planning

Includes client, company code, plant, and storage location​

17. Describe a purchase requisition

Internal request to procure materials or services​.

18. Know the differences in the MRP data view of the material master

procurement type, MRP type, lot size key, and scheduling times.

19. Know what a procurement type represents.

Specifies whether materials are made in-house, bought externally, or both

20. Know what the MRP type specifies.

Determines the planning method like MRP or consumption-based planning​

21. Define replenishment lead time.

Time to procure or produce materials, including setup and processing

22. Describe consumption-based planning

Uses past consumption data to plan materials​

23. List the categories of consumption-based planning

Includes reorder point, forecast-based, and time-phased planning​.

24. Give examples of products that would work best for consumption-based planning

Suitable for low-value items like office supplies​.

25. Describe what is meant by exploding the BOM.

Breaking down materials to determine components needed​.

26. Define the role of the lot size key

Defines how much to procure, e.g., fixed or lot-for-lot quantities​

27. List the elements of in-house production time

Includes setup, processing, and interoperation times​.

28. Know the roles of the CIRs and PIRs in the material planning process.

CIRs are actual sales orders; PIRs are forecasted demands​.

29. In regards to CIRs and PIRS, describe the basis for the SAP ERP production planning strategy, net requirements planning (Strategy 10), procurement proposals.

Strategy 10 bases procurement proposals solely on PIRs without considering CIRs. Requirements are netted against stock and planned receipts​

30. Describe SOPs.

Combines sales and production plans to balance supply and demand​

What does BOM stand for?

bill of materials

What is a BOM?

list of materials needed to produce one or more units of a finished good

A goods issue occurs in production when raw materials or semi-finished goods are issued to the production order

True

What is the make-to-stock inventory strategy?

stock is increased when stock levels reach a predetermined reorder point

What is replenishment lead time?

The time between placing an order and receiving the materials

What does PIR stand for?

Planned Independent requirement

What is a PIR?

requirements that are calculated based on forecasted sales

Goods receipt results in a decrease in inventory?

false

What is the name of the document created by the warehouse to request goods to be purchased?

Purchase requisition

All of the following are types of storage except for?

On order goods