Production

Backward scheduling

A method where the system starts from the required delivery date and works backward to determine when production must begin.

Forward scheduling

A method where the system starts from a known start date and calculates the earliest possible completion date.

Scheduling margin key

A configuration tool used to define "floats" or buffer times (such as opening period or release period) before and after production activities.

Planned order

A request created during planning (like MRP) that suggests a specific quantity of a material be produced at a specific time; it is a "temporary" document that must be converted to a production order.

Material requirements planning (MRP)

The process used to calculate the net requirements for materials based on sales orders or forecasted demand.

MRP controller

The individual or group responsible for managing the planning and availability of a specific set of materials.

Discrete production

Manufacturing based on production orders where separate, identifiable units (e.g., a car or a bike) are produced.

Process manufacturing

Manufacturing used for products that are produced in batches or continuous flows (e.g., chemicals, liquids, or gases) rather than individual units.

Repetitive production

High-volume production of the same product over a long period, usually focused on a period-based rate rather than individual orders.

Job shop

A type of production environment where small batches of a variety of custom products are made, often requiring unique setups.

Project

A complex production type used for highly customized, large-scale items (like a ship or a building) that require detailed tracking over a long timeframe.

Make-to-order production

Production that is triggered specifically by a customer's sales order.

Make-to-stock production

Production triggered by a plan to maintain inventory levels based on forecasted demand.

Production order

A formal document that authorizes the manufacturing of a specific quantity of material and serves as the central object for tracking costs and progress.

Order type

A classification that determines how a production order is processed, including how costs are settled and which number range is used.

Production scheduling profile

A set of rules assigned to a material or production supervisor that automates certain functions, such as automatic order release or goods receipt.

Confirmations

The recording of the status of a production order, including the actual quantities produced and the labor/machine time consumed.

Work center

A physical location where a production step (operation) is carried out (e.g., a machine, a person, or a group of machines).

Work center locations

The physical placement of work centers within a plant.

Work center control keys

Parameters assigned to operations in a routing that determine how the operation is handled (e.g., whether it requires confirmation or if it should be costed).

Checking control

Settings that define when and how the system performs availability checks for materials and capacity during the production process.

Costing type

Defines the purpose of a cost estimate (e.g., whether it is for standard costing or inventory valuation).

Costing variant

A configuration that determines how the system calculates the costs for a production order (combining the costing type and valuation variant).

Valuation variant

A set of rules that tells the system which prices to use when calculating the cost of materials and activities (e.g., using the planned price or the moving average price).

 What is the production process? How is it related to the procurement and fulfillment processes?

The production process is the set of steps an organization takes to manufacture finished goods from raw materials. It is the "make" part of "buy-make-sell":

• Procurement ("Buy"): Supplies the raw materials needed for production.

• Fulfillment ("Sell"): Uses the finished goods created by production to satisfy customer orders.

Identify and describe the five primary types of production processes

• Discrete Production: Creating distinct, countable items (e.g., bicycles, computers).

• Repetitive Production: High-volume production of the same product over a long period.

• Process Manufacturing: Production in batches or continuous flows (e.g., liquids, chemicals, soda).

• Job Shop: Small batches of a variety of custom products.

• Project: Large-scale, complex, and highly customized production (e.g., ships, airplanes).

List and define four of the enterprise structure elements required for production.

• Client: The highest level in the ERP system representing the entire enterprise.

• Company Code: The central organizational unit of external accounting.

• Plant: The physical location where materials are produced or stored.

• Storage Location: A specific area within a plant where inventory is kept.

What is a work center location, and why is it important?

A work center location identifies the physical place within a plant where a work center is situated. It is important for organizing resources and ensuring that production tasks are assigned to the correct physical area.

Describe the purpose of a production scheduling profile, and explain how it is assigned.

The profile automates specific steps in the production order lifecycle (e.g., automatic release or automatic goods receipt). It is assigned to a material master record or a production scheduler.

What is the role of a production scheduler?

A production scheduler is responsible for the planning and scheduling of production orders for a specific group of materials or a specific plant area.

What is checking control used for, and which elements are required to configure it?

Checking control determines whether the system should check for material or capacity availability when an order is created or released. It requires an Order Type and a Checking Rule.

List and define five attributes for scheduling parameters.

• Scheduling Type: Determines if scheduling is forward, backward, or manual.

• Start Date/Finish Date: The specific time constraints for the order.

• Float before production: Buffer time before the start of an operation.

• Float after production: Buffer time after the completion of an operation.

• Release Period: The time allowed between order creation and order release.

Define confirmation and the confirmation function attribute.

• Confirmation: Recording the status of work performed (quantities and times).

• Confirmation Function: An attribute that controls how the system behaves when a confirmation is saved, such as updating the order status or triggering backflushing.

Describe the accounting entries at each stage.

• Goods Issue: Debit: Consumption Account (Expense); Credit: Raw Material Inventory.

• Confirmation: Debit: Production Order (Cost Object); Credit: Secondary Cost Element (Labor/Overhead).

• Goods Receipt: Debit: Finished Goods Inventory; Credit: Manufacturing Output/Change in Stock.

• Settlement: Transfers the variance (difference between actual and standard costs) from the production order to Price Difference accounts or CO-PA.

Which automatic account assignment processes must be configured?

The system uses the Valuation Class (from the Material Master) and Transaction Keys (like BSX for inventory or GBB for consumption) to automatically determine which G/L accounts to debit and credit.

Define settlement as it relates to production.

Settlement is the final step where the costs accumulated on a production order are compared to the value of the received goods. Any "leftover" balance (variance) is moved to financial accounting to zero out the order.

Describe three control parameters for MRP required in production.

• MRP Type: Determines how the material is planned (e.g., PD for MRP, VB for consumption-based).

• Lot Size: Determines the quantity to be produced in a single order.

• Planning Strategy: Defines whether the material is Make-to-Stock or Make-to-Order.

What are work center control keys? Identify and define four indicators.

Control keys determine how an operation is processed.

1. Scheduling: Should the system calculate time for this step?

2. Costing: Should this step incur costs?

3. Confirmation: Is a manual status update required?

4. Print: Should shop floor papers be printed for this step?

Which master data connect management accounting with production?

• Cost Centers: Where costs are incurred (assigned to Work Centers).

• Activity Types: The "rate" for labor or machine time (e.g., $50/hour).

• Cost Elements: Categorize the type of cost (Primary for materials, Secondary for internal activities).

List and describe the two types of production-related capacities.

• Machine Capacity: The available time and power of a piece of equipment.

• Labor Capacity: The available work hours of the personnel.

What is a work center, and how is it assigned?

A work center is a location where operations are performed. It is assigned to a Plant and linked to a Cost Center for financial tracking.

What views are unique to the production process in Material Master?

• MRP Views (1-4): For planning parameters.

• Work Scheduling View: For production-specific data like scheduling profiles.

What is a BOM? How are BOM data used?

A Bill of Materials is a complete list of components needed to make a product. In production, it is used to calculate material requirements and trigger "Goods Issues."

List and describe the four requirements when creating routings.

1. Operations: The specific steps in order.

2. Work Centers: Where each step happens.

3. Standard Values: Expected time for setup and machine run.

4. Sequences: The logical flow (can be standard, parallel, or alternative).