production planning in sap

Production Planning and Control in SAP

Production Planning and Control is the backbone for manufacturing industries to ensure the schedule expedition for On-Time Delivery of the customer's order and demand. At the same time, a single straight fit can't be used in the manufacturing industries of 5 broader manufacturing categories as given below needs an effective and efficient SAP production planning software control system in place.

  • tickRepetitive Production (High Volume )
  • tickDiscrete Production (Low Volume & High Mix)
  • tickJobShop (Engineered to Order)
  • tickContinuous Production (Recipe Based)
  • tickBatch Production (Recipe Based)
Let’s talk

Though the manufacturing / Production type is similar, it varies according to the business legacy. So it is imperative to reflect the business legacy in production planning and control to ensure effective and efficient production planning and control practice to assure On-Time Delivery (OTD / OTIF) to the customer at all times and every instance or order line.

It's equally important to automate cost accounting and calculation. Since production cost accrues with the usages and consumption of Raw Material, Resources (equipment and labour), cutting tool, jigs and fixtures, consumables, inspection/testing, In-Bound and or Out-Bound logistics, packing material, Processes outsource, subcontracting, etc.

As the production work is in progress (WIP), the system automatically calculates and accounts for the accrual cost per process/stage and final receipt of the production confirmations. Eventually, at the time of material delivery against the sales order through the Accounts Receivable Invoice system does account as COGS (Cost of Goods Sold) in the books of accounts respective to the customer order and line item.

Production Planning and execution is complex, concerning variables according to the businesses and their legacy practices.

  • tickBill of Materials and Unit of Measurements
  • tickMachine and Equipment Hourly Cost
  • tickLabour Cost (UnSkilled/Semi-Skilled/Skilled)
  • tickQuality Cost (Inspection / Test Bench / 3rd Party )
  • tickRaw Material (Import / Processed / By-Product)
  • tickRejection Rate
  • tickScrap or Swarf cost
  • tickSubcontracting cost
  • tickSpecial processes cost
  • tickMaterial Traceability
  • tickWork In Progress
  • tickRoutings (Single Route, Multiple Route, Mixed Route (In-house + Subcontracting))
  • tickAssembly and Disassembly
  • tickBy-Product recovery and Unit of Measurement etc.

To automate production planning and control in SAP Business ONE HANA ERP is possible through teaching the ERP system to reflect business legacy. Hence the configurable solution is needed because the complexity of today's business legacy shall shortly increase as the business grows with different product lines. Zyple PP add-on is a configurable solution built with the capabilities of this insight for current and future complexities.

Production Schedules Vs Forecast Vs Open Orders

The production planning at the macro level against the sales forecast is typically easy as far as Forecast and Open Sales Order requirements are determined, meaning the current immediate and future demands in days, weeks and months. The production scheduling must consider the inventories at the plant or various Plants, Warehouses, Work In Progress to ensure the correct quantity to produce and deliver on time.

This functionality should consider the possible production schedules to release and escalate the contingencies to initiate positive actions to expedite or communicate to the customer in advance if there are irrecoverable situations to meet the customer’s requested or promised deliveries.

Schedule Progress Traceability

Having better control management on the bill of material (BOM), Routings (Process Sequences and accrual production cost accounting). Traceability is the most salient to ensure the production concerning the sales order and deliveries to the customer. Most organisations and customers demand as a part of their techno-commercial requirements, with ease of accessing and visibility of the material and progress data. Customer's experience excels to the amount and degree of the data traceability, retrieval at the point of requirements. Zyple Add-on default function ensures order type with each line item and batch determination with material issue and receipt throughout the production stages.

Another Extended Feature with Reports and Analytics for the Management Review to initiate actions, we call MISRA(Management Information System Reporting & Analytics)

  • tickYield
  • tickOEE
  • tickQuality
  • tickMachine / Employee/ Shift / Day /Period Wise
  • tickProduction Progress Intelligence Analytics
  • tickTPM 16 Losses Intelligence Analytics
  • tickFlawless Data Reporting through IoT and AI integrations
  • tickMES (Manufacturing Execution System) Integration
  • tickBuilt-in MESA 11 Functional Disciplines
  • tickSeamless Connection to MRP
  • tickTools and Consumables planning and procurement
  • tickPacking Materials planning and procurement

Conclusion Note

"Zyple production Add-on solution" with SAP Business One automates the complexity of production planning, scheduling, expedition and exception at ease with financial control of actual production cost and COGS.