Production Planning and Execution

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© SAP UCC Magdeburg
CASE STUDY

Product
S/4HANA 1809
Global Bike
Fiori 2.0
Level
Undergraduate
Graduate
Beginner
Focus
Production Planning and
Execution
Authors
Bret Wagner
Stefan Weidner
Version
3.3
Last Update
May 2019
MOTIVATION
The data entry requirements in the
production planning exercises (PP
1 through PP 6) were minimized
because much of the data already
existed in the SAP system. This
stored data, known as master data,
simplifies the processing of
business transactions. Examples
for this were material master data,
bills of materials, and routings.
In this case study, we will create
consumption values for a finished
product to plan and process a
complete manufacturing cycle.
PREREQUISITES
Before you use this case study, you
should be familiar with navigation in
the SAP system.
In order to successfully work through
this case study, it is not necessary to
have finished the PP exercises (PP 1
through PP 6). However, it is
recommended.
NOTES
This case study uses the Global Bike
data set, which has exclusively been
created for SAP UA global curricula.

Production Planning and
Execution (PP)
This case study explains an integrated production planning and execution
process in detail and thus fosters a thorough understanding of each
process step and underlying SAP functionality.
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Process Overview
Learning Objective Understand and perform a manufacturing process cycle.
Scenario In order to experience a complete manufacturing process you will
take on different roles within the Global Bike Group, e.g. production
supervisor, shop floor worker and plant manager. Overall, you will be
working in the Materials Management (MM) and the Production Planning
and Execution (PP) departments.
Employees involved Jun Lee (Production Supervisor)
Hiro Abe (Plant Manager Dallas)
Lars Iseler (Production Order Worker)
Susanne Castro (Receiving Clerk)
Sanjay Datar (Warehouse Employee)
Michael Brauer (Shop Floor Worker 4)
Jamie Shamblin (Cost Accountant)
Time 140 min
Before you can start forecasting demand for your touring bike product group, changes in the
material master record of the bikes need to be maintained.
Afterwards you will create a 12-month sales and operations plan (SOP) for your product group,
receive the production relevant goods from the warehouse storage location and issue them to the
production order.
To conclude the process, the production is confirmed as complete, the finished goods are received
into the warehouse and costs assigned to the production order are analyzed.

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Table of Contents
Process Overview…………………………………………………………………………………………………… 2
Step 1: Change Material Master Record ……………………………………………………………………. 4
Step 2: Change Routing…………………………………………………………………………………………… 9
Step 3: Display Product Group ………………………………………………………………………………. 12
Step 4: Create Sales and Operations Plan ………………………………………………………………… 15
Step 5: Transfer SOP to Demand Management ………………………………………………………… 19
Step 6: Review Demand Management…………………………………………………………………….. 22
Step 7: Run MPS with MRP ………………………………………………………………………………….. 24
Step 8: Review Stock/Requirements List…………………………………………………………………. 27
Step 9: Convert Planned Order into Production Order ………………………………………………. 30
Step 10: Receive Goods in Inventory………………………………………………………………………. 32
Step 11: Issue Goods to Production Order ……………………………………………………………….. 34
Step 12: Review Production Order Status………………………………………………………………… 37
Step 13: Confirm Production Completion………………………………………………………………… 39
Step 14: Receive Goods from Production Order……………………………………………………….. 41
Step 15: Review Costs Assigned to Production Order……………………………………………….. 43
Step 16: Settle Costs of Production Order ……………………………………………………………….. 45
Learning Snacks …………………………………………………………………………………………………… 49
PP Challenge ……………………………………………………………………………………………………….. 51

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Step 1: Change Material Master Record
Task Prepare a material master record for Demand Planning.
Short Description In order to plan Global Bike’s deluxe touring bikes
(black, silver and red) prepare their material master records by changing the
MRP 3 and Forecast view.
Name (Position) Jun Lee (Production Supervisor)
Time 20 min
To change a material’s view, use the App Change Material. Fiori App
In the Material field, find and select your red Deluxe Touring bike
DXTR3### first.
DXTR3###
If you do not remember its material number, position your cursor in the
Material field and click on the search icon or press F4. Make sure you
are on the Material by Material Type tab. Select Material Type Finished
Product (FERT) and enter *### in the Material field. Remember to replace
### by your three-digit number given by your instructor, e.g. *005 if your
number is 005. Then, press Enter and select the red Deluxe Touring bike
with a double click.
F4
Finished Product
*###
When your material number (DXTR3###) is entered in the Material field,
click on or press Enter.
DXTR3###
On the following screen, select MRP 3 and Forecasting.
Then, press Enter or click on .
MRP 3
Forecast

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In the following pop up enter the Global Bike manufacturing facility in
Dallas DL00 and its Finished Goods Stor. Location FG00. Press Enter or
click on .
DL00
FG00
In the MRP 3 tab, enter Strategy group 40 (Planning with final assembly),
Consumption mode 1 (Backward consumption only) and Bwd.consumption
per. 30. Then click Enter.
40
1
30

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Press Enter.
Then, acknowledge the warning message to check the consumption periods.
On the Forecasting tab, enter Initialization pds 12, uncheck the checkbox
Reset automatically, check the checkbox Param.optimization, enter
Optimization level F (Fine), Alpha factor 0.20, Beta factor 0.10, Gamma
factor 0.30, and Delta factor 0.30.
Compare your entries with the screen capture shown below.
12
Reset automatically
Param.optimization
F
0.20
0.10
0.30
0.30

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Historic consumption values already have been entered into the GBI system.
You can view them on the Forecasting tab, select
. If you do not see the Total
consumption column, press on . Within the
table you will see the Total Consumption for the periods 04.2014 to 03.2018.
These values form the base for later forecasts within this case study.

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Please note that within a productive system these values would have been
updated based on the goods moved out of the warehouse.
Click on to return to the overview.
Click on to save your entries for the red bike.
The system informs you, that the material DXTR3### changed.
Repeat the same procedure for the silver and the black deluxe touring bike
material master. Start with the silver bike (DXTR2###), then modify the
black bike (DXTR1###).
DXTR2###
DXTR1###
Click on the home icon to return to the Fiori Launchpad overview.

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Step 2: Change Routing
Task Change a routing for a finished good.
Short Description Change the routing for your red Deluxe Touring bike.
Name (Position) Jun Lee (Production Supervisor)
Time 15 min
After the operational steps are laid out, the components must be allocated to
the individual operations. This is a progressive process where each operation
builds off the materials that entered production in the previous operations.
Component allocation
To change a routing, use the app Change Routing. Fiori App
Enter the material number for your red Deluxe Touring Bike (DXTR3###).
In the Plant field, enter Global Bike’s Dallas plant number (DL00). Please
ensure that the Group field is empty.
Then, press Enter or click on .
DXTR3###
DL00

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Note A routing can be defined using the routing group and group counter.
Moreover, the routing contains reference to the material whose production it
describes, and, in addition to the standard sequence, can contain parallel or
alternative sequences. Alongside the standard values, the routing also
contains the time elements that are relevant for scheduling operations. Each
operation in the routing may contain its own base quantity, to which these
time elements may refer.
Choose and select the red touring frame (TRFR3###) as well as
the touring seat kit (TRSK1###). Afterwards, choose .
TRFR3###
TRSK1###
In the following pop up, click .Choose operation 0020 and
press Enter. Back on the Material Component Overview screen, you see that
now both components have been assigned to operation 0020.
0020
Repeat the same process for the other components and assign them to
operations as shown below.

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Component OperationTRHB1### (touring handle bar) 0030TRWA1### (touring aluminum wheel assembly) 0040DGAM1### (derailleur gear assembly) 0040CHAN1### (chain) 0050BRKT1### (brake kit) 0060PEDL1### (pedal assembly) 0070WDOC1### (warranty document) 0100PCKG1### (packaging) 0100 TRHB1###
TRWA1###
DGAM1###
CHAN1###
BRKT1###
PEDL1###
WDOC1###
PCKG1###
Save your entries with .
Click on the home icon to return to the Fiori Launchpad overview.

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Step 3: Display Product Group
Task Display a product group.
Short Description Display the product group (product family) for all your
Deluxe Touring bikes.
Name (Position) Jun Lee (Production Supervisor)
Time 5 min
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.
Product group
To display the deluxe touring bike product group, use the app Display
Product Group.
Fiori App
In the Display Product Group: Initial Screen, in the Product group field find
and select your group for deluxe touring bikes. In order to do so, press the
search icon (or pressed F4), enter ###* in the Material description field.
Remember to replace ### with your three-digit number, e.g. enter 009* if
your number is 009. Enter DL00 as Plant.
###*
DL00
Then, press Enter or click on to display the search results.

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Compare with the screen shown below. Double-click on the line for deluxe
touring bicycles to select the group.
Now that the correct product group (PG-DXTR###) is filled in, make sure
that Plant DL00 is entered.
PG-DXTR###
DL00
Then, press Enter to display the product group details.
On this screen you can see that this product group defines proportions for
three different bikes: the black, silver and red deluxe touring bike. For the
black bike a share of 40% will be considered and 30% for the silver and the
red bikes each.

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Click on the home icon to return to the Fiori Launchpad overview.

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Step 4: Create Sales and Operations Plan
Task Create a sales and operations plan for a product group.
Short Description Create a 12-month sales and operations plan (SOP) for
your product group.
Name (Position) Jun Lee (Production Supervisor)
Time 20 min
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 values taken from a fixed period. This is in
contrast to forecasting within a real-life system which would base the
prediction on previous periods and their respective consumption.
Sales and operations plan
To create an SOP, use the app Create Sales and Operations Plan. Fiori App
Make sure that Product group PG-DXTR### and Plant DL00 are entered PG-DXTR###
DL00

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Then, select .
Record the version number: __
In the menu bar, select:
More ► Edit ► Create sales plan ► Forecast…
Menu bar
Select Period intervals, Forecast from current period/current year to
previous period/next year, Historic Data from 04/2010 to 03/2014,
Forecast execution Aut. model selection. Compare your screen with the
one below before clicking on .
Period intervals
current period/current year
previous period/next year
04/2010
03/2014
Aut. model selection
If needed, click on and continue through warning messages.
The system selected Trend and season. Click on .
In the next pop-up you can see that the system tested and found Seasonal
and Trend tendencies in the past consumption data and has applied a
Seasonal Trend Model.

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Click on (Copy and Save). The sales forecast is copied into your Sales
and Operations Plan.
As Target day’s supply enter 5 for each forecasted period. 5
In a production plan, you plan the quantities you need to produce in order
to meet your sales plan. The system then calculates stock levels and days’
supply for each period on the basis of the sales and production quantities
and any target data. There are several different planning strategies
available, which differ in the production values and the stock levels
proposed.
As the SOP is a high-level planning, discrete production values are not
necessary. The SAP system calculates discrete numbers once the SOP is
transferred to the Demand Management.
In the menu bar, select:
Edit ► Create product plan ► Synchronous to sales
Menu bar
Note the change in the Production and in the Stock level lines. The
production plan is created to match the sales forecast.

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In the system menu, select
Edit ► Create productn plan ► Target day’s supply
Menu bar
Note the impact on the production plan and stock levels. Production levels
are generated to match the sales plus produce enough to put into stock to
meet the target days of supply specifications.
Review the Planning Table (your numbers may be different).
Save with .
Click on the home icon to return to the Fiori Launchpad overview.

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Step 5: Transfer SOP to Demand Management
Task Transfer SOP to Demand Management.
Short Description Transfer the Sales and Operations Plan to Demand
Management.
Name (Position) Jun Lee (Production Supervisor)
Time 10 min
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.
Demand Management
To transfer the SOP to Demand Management, use the app Transfer SOP to
Demand Management – Transfer the Sales and Operations Plan to Demand
Management.
Fiori App
Enter Product group PG-DXTR###, Plant DL00, and the version saved in
the previous task (A00).
PG-DXTR###
DL00
A00
Select Prod.plan for mat. or PG members as proportion of PG and
Active. Then, deselect the Invisible transfer indicator to present the
disaggregation results on another screen allowing the planner to modify the
results before saving them manually to Demand Management.
Prod.plan for mat. or PG
members as prop. of PG
Active
Invisible transfer

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Select and examine the Planned Independent Requirements
generated for DXTR1###.
DXTR1###
Then, click on to save.
Examine the Planned Independent Requirements generated for DXTR2###
and save them with .
DXTR2###
Finally, examine the requirements for DXTR3### and save them with
.
DXTR3###

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Note DXTR1### makes up 40%, DXTR2### makes up 30% and
DXTR3### another 30% of the production plan created in your Sales and
Operations Plan. How is this derived?
Click on the home icon to return to the Fiori Launchpad overview.

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Step 6: Review Demand Management
Task Review the requirements for a product group.
Short Description Review the requirements for the product group to ensure
that there are production requirements for the individual production items.
Name (Position) Hiro Abe (Plant Manager Dallas)
Time 10 min
To review planned requirements, use the app Display PIRs. Fiori App
Select the Product group radio button, enter Product group PG-DXTR###,
Plant DL00, and select or click Enter.
Product group
PG-DXTR###
DL00
On the Table tab, review the Planned Independent Requirements for the
Deluxe Touring bike product group by material.

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On the Sched. lines tab, review the requirement dates, planned quantities,
values, and total planned quantities.
Select to move to the next material.
Click on the home icon to return to the Fiori Launchpad overview.

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Step 7: Run MPS with MRP
Task Run Master Production Scheduling (MPS).
Short Description 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.
Name (Position) Jun Lee (Production Supervisor)
Time 10 min
To run Master Production Scheduling, use the apps Schedule MRP Run –
Run MPS with MRP.
Fiori App
Enter your material DXTR3###, Plant DL00, Processing key NETCH,
select 2 (Purchase requisition in opening period), 3 (Schedule lines), 1 (MRP
list), 1 (Adapt planning data (normal mode)), and 1 (Determination of Basic
Dates for Planned). Then, select Display material list.
DXTR3###, DL00
NETCH 2
3 1
1 1
Display material list

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Press Enter.
A warning message will appear asking you to check input parameters. Press
Enter to confirm and bypass the warning message.
Note In MRP, a net requirements calculation is executed in the planning run
to determine whether a material shortage exists for a certain material. In
addition, stock and fixed receipts that currently exist (for example, purchase
orders, production orders, fixed purchase requisitions and planned orders)
are compared with the safety stock and requirements. The result of this
comparison is the quantity available for planning.
If the quantity available for planning is lower than zero, a material shortage
exists. MRP reacts to material shortages by creating new procurement
proposals (purchase requisitions and planned orders). The suggested
procurement quantity results from the lot-sizing procedure that is set in the
material master.

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Click on the home icon to return to the Fiori Launchpad overview.

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Step 8: Review Stock/Requirements List
Task Review the Stock/Requirements List.
Short Description Review the Stock/Requirements List for your deluxe
touring bike.
Name (Position) Lars Iseler (Production Order Worker)
Time 10 min
The Stock/Requirements List is a list which dynamically changes whenever
a transaction occurs using the given material. Display and review the
Stock/Requirements List for all materials of the red deluxe touring bike 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
To review the Stock/Requirements List, use the SAP Fiori App Monitor
Stock / Requirements List.
Fiori App
On the Individual access tab, enter Material DXTR3### and Plant DL00 and
click on .
DXTR3###
DL00

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Choose (Switch to Period Totals). This will allow you to see the
planned independent requirements, planned receipts, and ATP quantities
based on time – days, weeks, or months.
Select to go back to the individual lines.
To view the details of the first planned order (PldOrd), select (Element
Details).

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Select (Pegged Requirements).
You can see that this planned order is to fulfill our Safety Stock and the first
planned independent requirement that was created when we disaggregated
our SOP.
Click on the home icon to return to the Fiori Launchpad overview.

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Step 9: Convert Planned Order into Production Order
Task Convert a planned order into a production order.
Short Description 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.
Name (Position) Lars Iseler (Production Order Worker)
Time 10 min
To convert planned orders into production orders, use the SAP Fiori App
Monitor Stock / Requirements List.
Fiori App
Enter Material DXTR3###, Plant DL00, and click on . Then,
double-click on the third planned order.
DXTR3###
DL00
In the Additional Data screen, click on (Convert planned
order to production order).

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Note At this point, please note down the total quantity in your production
order. You will need it later when confirming your order.
Total quantity
Determine the status of your order by clicking on . What does this
mean?
Note When you converted the planned order to a production order
scheduling takes place, an availability check was automatically carried out
and a reservation was placed on the materials specified within the bill of
materials. The order was also automatically released when the production
order was created.
Click on to go back to the Production order Create: Header screen and
save your production order with .
Note When you save the production order the system will automatically
calculate the planned costs for the production order and the production order
is given a number.
Make sure you record your production order number.
Production order
number
Select to refresh the Stock/Requirements List. In the MRP Element
column the planned order PldOrd that you selected should now have
changed into a production order PrdOrd.
Click on the home icon to return to the Fiori Launchpad overview.

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Step 10: Receive Goods in Inventory
Task Receive goods in the Dallas plant.
Short Description Receive enough goods in the Dallas storage locations to
start the production process.
Name (Position) Susanne Castro (Receiving Clerk)
Time 10 min
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 DXTR3### components is empty, we will
assume that we find 500 pieces each in the storage location.
Goods receipt
To receive goods in the inventory, use the app Post Goods Movement. Fiori App
Make sure that Goods Receipt and Other is selected in the drop-down menu.
Enter Movement Type 561 (Receipt per initial entry of stock balances into
unr.-use), today as Document and Posting Date. Then, press Enter. If
necessary, confirm the information pop-up.
561
today

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In the Goods Receipt Other screen, enter the following data. Each of these
ten materials are components that you need in your production order later on.
Note that all materials are stored in the raw materials storage location in
Dallas (DL00) except the touring wheel assembly (first component in the
list) which is a semi-finished good. Maybe you need to close the lower
section by clicking on to be able to enter the materials.
DL00
Material Quantity SLocTRWA1### (Touring Aluminum Wheel Assembly) 500 SF00TRFR3### (Touring Frame-Red) 500 RM00DGAM1### (Derailleur Gear Assembly) 500 RM00TRSK1### (Touring Seat Kit) 500 RM00TRHB1### (Touring Handle Bar) 500 RM00PEDL1### (Pedal Assembly) 500 RM00CHAN1### (Chain) 500 RM00BRKT1### (Brake Kit) 500 RM00WDOC1### (Warranty Document) 500 RM00PCKG1### (Packaging) 500 RM00 TRWA1###
TRFR3###
DGAM1###
TRSK1###
TRHB1###
PEDL1###
CHAN1###
BRKT1###
WDOC1###
PCKG1###
Enter DL00 as Plnt in all of the ten lines. Afterwards, press Enter. DL00
Compare your screen with the screenshot shown below.
Save your goods receipt with and record the material document
number.
Material document
number
Click on the home icon to return to the Fiori Launchpad overview.

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Step 11: Issue Goods to Production Order
Task Issue goods to a production order.
Short Description Now that all necessary components are on stock issue
them to your production order in precise quantity.
Name (Position) Sanjay Datar (Warehouse Employee)
Time 10 min
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, they 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.
Goods issue
To issue goods to a production order, use the app Post Goods Movement. Fiori App
Make sure that Goods Issue and Order is selected.
Note Goods issues posting for the required components is another milestone
in the production order process. The following functions are performed when
a GI for the components of the production order is posted:
 Storage-location-specific update of the stock and consumption fields
 Reduction of the reservation (for planned withdrawal)
 Update of costs for unplanned withdrawals
 Determination of actual costs (valuation) and order update
 Consumption update
 Generation of material and accounting documents (FI and CO
documents)
 Creation of material document.
 Creation of accounting document
 Creation of controlling document
 Printing of GI document
The goods issues posting is controlled through a movement type (261), to
which each posting refers. This can take place manually or automatically.

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Enter Movement Type 261 (Consumption for order from warehouse), today
as Document Date and Posting Date.
today
today
261
Enter your production order number from two tasks back. Then choose
Enter.
Production order
number
If you have not written down your production order number you can find it
in the system. In order to do so, in the Order field press F4 or click on the
search icon . In the Order Info System – Input Help for Order Number
screen, enter your material DXTR3### in the Material field and click on
. Double-click on the result row to adopt your production order
number into the initial screen.
F4
DXTR3###
Once you have found and entered your production order number, click Enter
to continue.
An itemized list will appear. It lists all the materials and their respective
quantities that need to be issued to your order. You need to tell the system
what Storage Location the materials should be withdrawn from. For the
Touring Aluminum Wheel Assembly (TRWA1###), enter SF00 (Semi
finished goods) and for all other materials RM00 (Raw materials) in the
SLoc fields. Before pressing Enter compare your screen with the one shown
below. Notice that your quantity could be different.
SF00
RM00
Furthermore, flag each item with OK OK
Click on and record the material document number.

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Material document
number
Click on the home icon to return to the Fiori Launchpad overview.

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Step 12: Review Production Order Status
Task Review the production order status.
Short Description Review the current production order with respect to the
status of the order.
Name (Position) Michael Brauer (Shop Floor Worker 4)
Time 10 min
To display the production order, use the app Display Production Order. Fiori App
Enter the number of your production order. Production order
number
If you have not written down your production order number you can find it
in the system. In order to do so, in the Order field press F4 or click on the
search icon . In the Order Number (1) screen choose the tab Production
Orders by Material and Routing, enter your material DXTR3### in the
Material field and click on Enter. Double-click on the result row to adopt
your production order number into the initial screen.
F4
DXTR3###
When your production order number is entered, click on . Note
that the order status has changed and review it by clicking on again.

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You did a goods issue to the production order in the last task. Now, you want
to review the cost assigned to the order, the material document, and the
corresponding accounting document.
In order to do so, click on to go back to the header screen.
Then in the menu bar select:
More ► Goto ► Costs ► Analysis
Menu bar
Here you can see the costs that were assigned to the production order from
our goods issue.
Click on the home icon to return to the Fiori Launchpad overview.

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Step 13: Confirm Production Completion
Task Confirm production order completion.
Short Description Confirm completion for your production order.
Name (Position) Michael Brauer (Shop Floor Worker 4)
Time 10 min
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 finished product that has been manufactured.
Production completion
To confirm production completion, use the app Enter Production order
Confirmation.
Fiori App
Enter your production order number and click on or Enter. Production order
number
Select Final Confirm. and Clear Open Reserv. In the Yield Quantity. field,
enter the amount of bikes you were supposed to produce for this order, if the
field is not already filled. Remember that your amount might be different
from the screen below.
Final Confirm.
Clear Reservation
Amount

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Then, change the Start Execution to 1 hour earlier than the default time. 1 hour earlier
Click on Enter and save your entries with .
Note When the confirmation is saved, labor costs for the order are calculated
automatically. The quantity yield also establishes the parameters for the
goods receipt into Inventory.
Click on the home icon to return to the Fiori Launchpad overview.

© SAP UCC Magdeburg Page 41
CASE STUDY

Step 14: Receive Goods from Production Order
Task Post a goods receipt from production order.
Short Description Post a goods receipt from your production order.
Name (Position) Susanne Castro (Receiving Clerk)
Time 15 min
Receive the completed products into finished goods inventory. Check the
quantity proposed 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.
Goods receipt
To post a goods receipt, use the app Post Goods Movement. Fiori App
Select Goods Receipt and Order in the drop-down menu.
Enter Movement Type your production order number and 101 (Goods
receipt for order to warehouse) and. Choose Enter.
101
Production order
number
Enter as SLoc FG00 (Finished Products) and make sure, that the plant DL00
is entered.
Select OK for your item.
FG00
OK

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CASE STUDY

In the overview screen, review the item to ensure that all the data is correct.
 Movement Type  101 (goods receipt into Inventory)
 Storage Location  FG00 (Inventory)
 Quantity  should equal the amount that you confirmed in the
previous task
Click on to post the goods receipt. When you save this material
document the actual value of the material produced was entered into the
production order.
Record the material document number. Material document
number
Click on the home icon to return to the Fiori Launchpad overview.

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CASE STUDY

Step 15: Review Costs Assigned to Production Order
Task Review costs assigned to your production order.
Short Description Display and review the costs that have been assigned to
your production order.
Name (Position) Jamie Shamblin (Cost Accountant)
Time 5 min
To display costs assigned, use the app Display Production Order. Fiori App
Enter your production order number and click on . Production order
number
In the menu bar select:
More ► Goto ► Costs ► Analysis
Menu bar

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CASE STUDY

Now that the finished products have been received in the Inventory, the
Manufacturing Output Settlement Variance has been added. How is this
figure calculated by the system?
Click on the home icon to return to the Fiori Launchpad overview.

© SAP UCC Magdeburg Page 45
CASE STUDY

Step 16: Settle Costs of Production Order
Task Settle costs of your production order.
Short Description 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.
Name (Position) Jamie Shamblin (Cost Accountant)
Time 20 min
To settle costs of a production order, use the app Actual Settlement. Fiori App
If you have to input the Controlling Area, enter NA00, and click on . NA00
Enter your production order number, the current month as Settlement period
(e.g. 007 for July), the current month as Posting period, and the current year
as Fiscal year. Make sure that Test Run is selected.
Production order
number
current month
current month
current year
Test Run
Click on and confirm any occurring pop-ups.

© SAP UCC Magdeburg Page 46
CASE STUDY

Click on .
In the menu bar choose:
More ► Environment ► Report
Menu bar
Then, double-click on Orders: Actual/Plan/Variance to select the report. Actual/Plan/Variance

© SAP UCC Magdeburg Page 47
CASE STUDY

Click on to go back. Then, select and click on
twice.
Yes
Deselect Test Run and execute again with . Confirm the pop up again
with Enter. Click on and select . Choose report Orders:
Actual/Plan/Variance.
Test Run
Actual/Plan/Variance

© SAP UCC Magdeburg Page 48
CASE STUDY

Note The manufacturing output settlement is higher than the consumption
expenses for raw materials and semi-finished goods? Review and explain the
expenses and the settlements of your production order in detail. How is the
balance derived?
Click on , choose and Click on the home icon
to return to the Fiori Launchpad overview.
Yes

© SAP UCC Magdeburg Page 49
CASE STUDY

Learning Snacks
In order to test and consolidate your knowledge use the app Learning Snack
PP.
Fiori App
You see all the snacks for the individual case studies. Select the Snack PP
English and answer all eleven questions.
Learning Snack
Hint:
If you do not see any Apps, you need to change the language on the page
Learning Snacks. Therefore click on the current language right next to
change language and choose English.

© SAP UCC Magdeburg Page 50
CASE STUDY

When you have answered all the questions you will receive a success
message and your placement.

© SAP UCC Magdeburg Page 51
CASE STUDY

PP Challenge
Learning Objective Understand and perform an integrated manufacturing
process.
Time 60 min
Motivation After you have successfully worked through the Production Planning and Execution
case study you should be able to solve the following challenge on your own.
Scenario In this challenge you should create sales and operations plan (SOP) for the product
group (product family) Mountain bikes. Take into consideration that the materials of the product
group have to be assigned to the strategy group. Therefore, enter manually the following sales
figures:
Period Sales (volume)Current month + 2 150Current month + 3 175Current month + 4 200Current month + 5 85Current month + 6 90Current month + 7 115In addition, you must post the correct goods for Material ORMN1### in the storage location in
order to be able to produce and settle costs afterwards.
Task Information Since this task is based on the Production Planning and Execution case study
you can use it as guidance. However, it is recommended that you solve it without any help in
order to test your acquired knowledge.
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