PP PI BOOK

8/12/2019 PP PI BOOK

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Chapter 1

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IntroductionIntegrated information systems in firms using discrete manufacturing prac-tices have been in use for quite some time. In the logistics chain, this spans arange of applications going from sales processing up to automated produc-tion plants.

In process industry plants, however, this degree of integration has not yetbeen reached. Instead, higher-level planning systems exist, which howeverare not used conjointly with the lower-level process-related control systems.

Integration is usually achieved if customers individually program interfacesbetween the higher and lower levels, but hardly any standard software solu-tions exist on the market.

The component PP-PI was developed by a team made up of SAP AG andIDS Prof. Scheer GmbH. In this way, the development of business andlogistics applications is closely linked with the knowledge of experts in thearea of process and control systems. The requirements made by process-oriented firms on PP-PI range from the representation of individualsynthesis and formulation problems to entire single and multi-way plants orsingle and multi-product processes. Some are largely automated, usingprocess control systems, whereas others are run largely manually. All havevendor and buyer relationships with each other, meaning that the intra-plant

coordination forms part of the planning process.

The component PP-PI was developed to cover all of the above requirements.

In parallel to the development work, contact with further potentialcustomers was made during the course of seminars, workshops, talks andpresentations. In this way, development was able to obtain feedback andsuggestions from firms coming from various lines of industry.

Furthermore, a group of pilot customers was selected in mid-1994 to test andverify the functionality developed until then. These are pilot sites comingfrom various lines of industry in Europe and America. The functionality of

the first version of PP-PI (Release 3.0) was greatly influenced by these firms.This way of proceeding had the decisive advantage of having had thefunctionality tested by seven large firms before its release, as well asproviding important input for the further development of PP-PI.

This brochure contains an overview of the functions in the application PP-PI.

The requirements placed on an integrated batch processing system that haslinks to all levels of a company also affect other R/3 modules. The moduleswhose development was most affected were materials management andmaterial requirements planning. With PP and PP-PI, the R/3 System will besupporting our customers in industrial plants using discrete manufacturing

as well as those carrying out process manufacturing.

Integrated InformationProcessing

Pilot sites
http://ppi_02_e.pdf/


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Chapter 2

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Product Positioning

The area in which PP-PI will be used is the production plant carrying outbatch manufacturing processes. With the help of PP-PI it will be possible tocarry out integrated planning of the production, transport and waste dis-posal data flows of a plant. Furthermore, PP-PI will support the integrationof all plants in an enterprise over the entire logistics chain: vertically bymeans of an integrated information flow, ranging from central businessapplications down to process control on the shop floor. Horizontally, thisintegration is supported by the coordination of planning between production

plants, as well as with the recycling and waste disposal facilities and theproduction laboratory.

The ideal plant for PP-PI is found in the chemical, pharmaceutical or foodand beverages industries. The following are some of the features characteriz-ing such a plant:

It has a relatively large degree of planning autonomy with regard to itsresources.

It carries out non-continuous forms of manufacturing and the batchesare often grouped together in production campaigns.

The production plant is designed as a multi-way plant and can be usedin various ways.

The product sequences must be planned carefully, in order to avoidunnecessary cleanout operations and changeovers.

The various production steps lead to the creation of finished products,by-products and remaining materials.

Process control involves various parameters which vary from batch tobatch, because the quality of the ingredients used or the environmentalconditions may vary.

The control of the product quality requires a close coordination with theproduction laboratory allocated to the production process.

The production plant is partially automated; some of the operatinginstructions must therefore be in natural language and others in a lan-guage understandable to the automated process control system.

For each batch, the corresponding recipe and its production order mustbe archived, together with the actual data on the process. This data mustbe available for evaluations of all types.

Vertical and HorizontalIntegration

Characteristics ofProcess Industries


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2 Product Positioning

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Furthermore, all messages sent during a process, whether they are used

in a process control system or have been entered by a plant operator,must be processed in a uniform manner. These messages may providestatus information on a batch just produced, or on the resources used toproduce it. A message may deal with material consumption or produc-tion yields, which must be posted immediately as stock movements. Or,a message may deal with a process event or quality data, which must bearchived according to GMP (Good Manufacturing Practices).

These features roughly describe process-oriented production as it is carriedout in modern plants today.

With Release 3.0 of PP-PI, SAP is providing the first version of its system forproduction planning and control of process-oriented lines of industry.

For which type of production is PP-PI primarily suited?

PP-PI is suited primarily for process-oriented plants, and can support central

as well as local applications. The main lines of industry for which the func-

tionality of PP-PI was developed are the chemical and pharmaceutical indus-

tries, as well as food and beverages and the process-oriented electronics

industry.


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Chapter 3

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Overview of Functions

In daily plant use, PP-PI is located between the business applications onhigher levels and the technical operations on lower levels.

PP-PI is made up of the following groups of functions:

Resources

Master recipes

Process orders

Campaign and process planning (capacity planning)

Process management

Integration with laboratory information systems (LIMS)and R/3-QM (Quality Management)

Integration with higher-level systems

Production documentation and evaluation

Master dataR/3-MPSR/2R/2

Non-SAPNon-SAPsystemsystem

dokumentation

Master receipes

Ressources

Materials

Externalrequirements

R/3- MRP

Campaignplanning

Processorder

planning

Qualitymanagement

Process data

documentation

Process dataevaluation

LaboratoryLaboratory

LIMSLIMS

(PCS)(PCS)

ManualManualAutomaticAutomatic

PI sheetPI sheet

ProcessProcess

managementmanagement

Fig. 3-1: The main functions of PP-PI


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3 Overview of Functions

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The resource management component describes all resources necessary to

the production of output in the chemical industry. These can be labor re-sources, plant equipment used, transport facilities, or recycling and wastedisposal facilities. These are considered not only with respect to their pro-ductive use in a plant, but also with respect to product quality, work safetyand environmental protection.

It is possible to create a network-like structure to display the sequence andrelationships of resources, as well as resource hierarchies to show the de-pendencies.

Materials and resources are maintained in the recipe management compo-nent, in order to describe the steps involved in a specific manufacturing

process. Recipes also contain information on all resources required and howthey are related to each other in the production process, i.e. the resources arenetworked. For PP-PI, recipes combine all the main information on whichplanning, control and documentation of manufacturing processes are based.

The starting point for recipe management was provided by the proposalsmade by NAMUR (norms working committee for measuring and controltechniques in the chemical industry). The proposals made by NAMUR fordefining the structure of basic and control recipes were developed for proc-ess control procedures and will be expanded accordingly in PP-PI.

Master recipes are regarded from the planning as well as from the controlaspect. In the planning phase, the user has to define the operations and

phases of a master recipe, to classify the materials or substances used, tocalculate the target quantities and define the inspection characteristics to beused in the quality inspection. User-defined relationships between theoperations and phases can be maintained and viewed in the graphic editor.

Process orders describe the specific production steps involved in creatingone or several products, substances or batches. The basis for this is the in-formation stored in the master recipe, which now contains dates and specificquantities. When an order or individual operations of an order are released,control recipes are generated, which are passed on to the processmanagement component.

Capacity planning and leveling refers to the planning of campaigns (rough-cut scheduling) and the planning and scheduling of orders (detailed schedu-ling).

Within the framework of campaign planning,rough-cut scheduling (tothe day) is carried out for production campaigns, resources are allo-cated, and the availability of the allocated resources is checked.

Process planningsmain functions are to schedule and release opera-tions in process orders, as well as to check material and resource avail-ability.

Campaign planning will be available after Release 3.0.

Resources

Master Recipes

Process Orders

Capacity Planningand Leveling


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Overview of Functions 3

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The process management component coordinates the data exchange between

PP-PI and the systems involved in process control and quality assurance.Due to its flexible architecture, process management can link up to auto-mated, partially automated and manually operated plants.

The data exchange takes place via control recipes sent to the correspondingcontrol systems. In the reverse direction, process-related data is collected inthe form of process messages and passed back to process management.Process messages provide information on the current status of a process, onthe committed resources, material consumptions and other selected events.

By distributing process messages to predefined recipients, process manage-ment ensures that information also flows to other PP-PI functions. Processmessages are a prerequisite for process documentation.

The exchange of information between production plant and lab is the task ofthe laboratory integration component. In this way, the quality of productscoming out of the production process is ensured. There are the followingtwo types of control or inspection runs:

In-process control, which records process events directly during theproduction process.

Post-process control, in which inspection results are recorded after theproduction run and then passed on to the laboratory.

The results of both methods are then written to the batch record.

There is no difference as to whether you use an external LIMS system or theR/3 QM System.

The documentation and evaluation of processes closes the cycle of dataused. Production specifications from process orders are compared withactual values from production and, together with process events and analy-sis results, used to create batch and production records. This data forms the

basis of the technical and business-related optimization of the process, aswell as of the fulfillment of legal requirements coming from work safety andenvironmental protection regulations, such as the Good ManufacturingPractice of the US Food and Drug Administration.

Using the functionality of batch management, you can manage subsets ofmaterials subject to handling in batches throughout the entire logistics chain,from procurement over production up to final delivery. This is of particularimportance in process industries, in which manufacturing is often carriedout in batches.

In this way you can define and locate warehouse batches with unique speci-fications which are required for the production of a particular product orintermediate. Furthermore, you can trace the individual batch throughoutthe entire production process and in this way comply with legal require-ments placed on product liability.

Process Management

Integration withthe Laboratory

Process Documentationand Evaluation

Integration withR/3 Batch Management


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PP-PI is integrated with all other R/3 modules, i.e. plant data is directly

linked with application data on the company management level. The use ofcompany-wide data by the plant, the integrity of central and distributeddata, and the data flow between these levels are all functions carried out byPP-PI.

The module PP-PI contains all the necessary functions for the planning and

control of processes and is fully integrated with all other R/3 modules.

What ar the main functions of PP-PI?

PP-PI contains functions for resources, master recipes, process orders, cam-paign and process planning (capacity planning) and process management,

i.e. down to the process control level.

What links exist from PP-PI to other systems?

There is an integration with laboratory information management systems

(LIMS) and to the R/3 Quality Management System (QM), to higher-level

and external systems (for example, R/2), as well as to process data docu-

mentation and evaluation.

Integration with

Higher-level Systems


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Chapter 4

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Resources

In the strict sense of the word, the term "resource" refers to all materials,work centers, plants, plant lines and processing units, capacities, productionresources, tools and documents to be maintained.

Since however in the R/3 System the term "material" plays a central role - viathe material master - it does not make sense to manage materials a secondtime in the form of resources. In the R/3 System, materials themselves referto any number of things, from finished products, assemblies, to raw mate-

rials, batches and even services.

In the area of PP-PI, the term resourcerefers to all user-defined production,waste disposal or recycling facilities and the persons working within them,as well as, for example, transport or storage facilities and energy sources.

The resource can be regarded as a planning-related type of organizationalunit within a company, describing the tasks of planning, control and execu-tion of production processes. The organizational unit "resource" serves tostructure production in a plant in detail, since it is a main element of shopfloor planning as well as of capacity planning. For purposes of capacityaggregation, you can create your own hierarchical resource structures. Dif-ferent aggregation structures via a number of user-defined resource hierar-chies can be represented via any number of parallel resource hierarchies forsimulation purposes.

WasteWaste

disposaldisposal

facilityfacility

EnergyEnergy

Train/LineTrain/Line

LaborLabor TransportTransport

Fig. 4-1: Possible types of user-defined resources

Definition of thePP-PI Resource

The Resource as anOrganizational Unit


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The user himself can define the different resource categories used in a plant.

Here are some examples:

Line This is the line in the production plant, as defined byNAMUR and ISA/SP88, which contains one or severalprocessing units. It can be a one-way or multi-way plantand can produce a complete batch. It makes no differencewhether the goal is to manufacture a product, recycle re-maining materials or dispose of wastes.

The production line or plant can be regarded as the rootof a resource hierarchy containing several processingunits.

Processing unit This is the smallest logistic unit at which a batch can bemanufactured. For example, this could be a mixing ves-sel, in which different process operations, such as charg-ing, mixing, or heating, can be carried out.

Labor The shift foreman, plant or line operator, etc. can berepresented as a group whose members have the samequalifications, but also as individual persons.

Transport This can be transport facilities, such as pipes or tanks,which are used to carry out the inner-plant transport runs

between warehouse and plant line.

In-process storage These can be storage facilities in which materials arestored between production steps.

The resource category controls the screens and fields which are displayed bythe system for user maintenance. In the chemical industry, for example, thiswould be at least the basic data, the scheduling and capacity data of the re-source.

It is also possible to maintain a default resource via Customing, in order toinclude default values when creating resources. These default values aremaintained for a combination of resource category and plant. When a re-source of this type and in this plant is created, the default values will betransferred to this resource. This is time-saving if you have to maintain many

resources of the same type, for example, many vessels distributed overseveral buildings.

The primary resource is the part of a plant or processing unit on or at whichan operation is carried out. It is occupied or "committed" for the duration ofthe operation, and all phases within this operation are scheduled for thistime period, since they automatically have the same primary resource.

Resource Categories

Default Resource

Commitment andAllocation of Resources


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Resources 4

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Besides the primary resource, you can allocate other required resources to an

operation or to a phase. These are called secondary resources. This allocationcan be flexible, meaning that you can define a variable start and finish timewhich is relative to the start or finish time of the operation or phase to whichthe secondary resource is allocated.

ActivitiesActivities

Allocation ofAllocation of

secondary resourcessecondary resources

Resource commitment times

Line operator

var.Start

var.Finish

OperationMixing

Transportcontainer

Phase:Filling

Phase:Stirring

Phase:Emptying

time

Vessel 37Primary resourcePrimary resource

Fig. 4-2: Allocation of secondary resources

If resources have the same attributes with respect to their usage in a process,it is possible to group them into a class via the classification system. This isuseful, for example, when maintaining a recipe, since you do not have toallocate all the possible alternative processing units to the operations of therecipe. Instead, you can classify the operation with the same class as the re-source (for example, operation "mixing" is carried out via the resource class"mixers"). The characteristics of the class (see Fig. 4-3) are then the selectionconditions for the resource in the process order. In this way, you can select aprocessing unit shortly before production, i.e. when releasing a process or-der.

ObjectObject

CharacteristicsCharacteristics

RPM.: 150Volume: 300 lMaximum temp.: 70 C

Mixing vessel 37

Values:

Class: Mixing vessels

Fig. 4-3: Classification of resources

Grouping withinResource Classes


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4 Resources

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The resource hierarchy serves to aggregate available capacity and require-

ments data at a resource (for example, the plant) on a higher level. In par-ticular, rough-cut capacity planning and medium-term planning need tohave aggregated available and required capacity data. An allocation of newresources to a hierarchy is possible at any time. You can display and main-tain the hierarchy in the R/3 graphic editor (Fig. 4-4), with the results beingwritten back to the resource record.

Fig. 4-4: Resource hierarchy

Processing units can often not be used in any sequence. If a batch was started

in a particular mixing vessel, it can only be continued in vessels which areavailable and to which, for example, there is a pipeline. The possible resour-ces with their predecessor/successor relationships are created as resourcenetworks in the system (see Fig. 4-5).

During process planning, resource networks can then help you find the pos-sible paths which a process order can take through a plant. The resourcenetwork is thus accessible when individual resources are specified foroperations.

Aggregation of Resource

Data via Hierarchy

Resource Networks


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Resources 4

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Fig. 4-5: Networking of resources

You can link resources with the following objects:

with a cost center

with a person

with a position in personnel administration (PA)

with a specific qualification or a qualification/requirements profile

Every resource is allocated to a cost center. In this way, product or ordercosting provides a link between CO and PP. More information on this topiccan be found under Costing data further on in this chapter.

The link of a resource with a person is used in order to find out who isworking at which resource, for example.

If the Personnel Administration system is not active, you can define aperson responsible for the resource. This can later be used as a searchfield.

If the Personnel Administration system is active, the resource data ismade available to PP-PI.

Furthermore, when creating a personnel resource, you can refer to a workcenter maintained in the Personnel Administration system. In this way, theR/3 System ensures that personnel data for an employee is unique.

Links

Link between Resourceand Cost Center

Integration with PersonnelAdministration (PA)


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Positions in the PA system are planned and approved jobs. The link of a

personnel resource with a position enables you to find out which positionthis resource belongs to.

Qualifications serve to more closely describe personnel resources.

If the Personnel Administration system is not active, you can define aqualification in the form of a suitability necessary for a person to carryout a specific task or operation at this resource. For this, the R/3 classifi-cation system is used.

If the Personnel Administration System is active, you can define severalqualifications for employees, which can then be grouped into a qualifi-cations profile.

Furthermore, you can define requirements for every resource, such as requi-ring that a specific operation be carried out by someone with a certain levelof experience or training.

Resources and Capacities

The term capacity refers to the ability of a resource to perform a specifictask, i.e. the available work of people, machines, processing units and otherresources within a particular period of time. Capacities are differentiatedaccording to capacity category (like resources and resource categories).

You can allocate any number of capacities to each capacity category. Thecapacities used during a production process do not need to be allocated in-dividually, since when selecting a resource, the capacity categories areautomatically linked to the resource.

These capacities form the basis of scheduling for process orders, as well as ofcapacity planning and shop floor control.

EnergyEnergy

AvailableAvailable

timetime

HeatingHeating

capacitiescapacities

Pooled

capacity

e.g. Cleanoutpersonnel

VolumeVolume

Line operatorLine operator

Process unit 1Process unit 1 Process unit 2Process unit 2

ResourceResourceResourceResource

Fig. 4-6: Capacity categories for resources

Link to Positions

Allocation ofQualifications

Requirements Profile

Link betweenCapacity and Resource


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Resources 4

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A capacity category classifies a capacity of a resource. It can only exist once

for each resource; however, capacities defined for different resources canbelong to the same capacity category. Via an internal conversion factor, thecapacities not maintainable in hours can be maintained, for example, in litersor kilowatt.

A pooled capacity refers to a capacity whose availability is used conjointlyby several resources. An example of a pooled capacity is the cleanout team,whose members work together at several different plant lines, for example.

Capacity commitment can be exclusive or non-exclusive. For example, thecapacity of a mixing vessel described in cubic meters can be completely usedup, even if a batch occupies only half of the vessel space available. In anothercase, one capacity might be allocated to several operations of the process

order, or even several orders.

In Fig. 4-7 below, for example, the capacity of a flare conduit can be usedfully, since the operations of several process orders can send their gaseouswastes to it.

Exclusive use of capacity Non-exclusive use of capacity

occupied

WasteWaste

Order 1Order 1WasteWaste

Order 2Order 2

Batch 01

notnot

availableavailable

occupied

availableavailable

Fig. 4-7: Commitment and allocation of capacities

In order to carry out detailed resource planning (for example, committingresources for specific periods of time), capacities can be subdivided intoindividual capacities (for example, individual vessels), for which you canmaintain availability data. The requirements can be allocated to these indi-vidual capacities in the planning table.

Furthermore, you can allocate a capacity to persons working at a particularresource, as well as allocating qualifications to such persons. Via the alloca-tion of a capacity to a PA position, the system will enable you to select themost suitable person to carry out the work.

The capacity category determines the objects to which you can link a capa-city.

Capacity Categories

Pooled Capacity

Exclusive/Non-exclusiveUse of Capacities

Subdivisions intoIndividual Capacities


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Maintaining Resource Data

In order to simplify the maintenance of operations in recipes, you can enterdefault values for an operation to be carried out at a resource. This informa-tion is copied or referenced in the operation by the system. In this way, forexample, the standard texts stored for a resource simplify the maintenance ofoperation texts in the recipe. Other default values are, for example, the con-trol key of the operation to be carried out at this resource or the wage groupof the employee at this personnel resource.

Standard values enable planners to specify values (for activities such as

mixing or charging) to be maintained for an operation at a particularresource. In this way, complex calculations of costs, durations or capacityrequirements for a resource can be carried out. The user specifies whether astandard value must be verified, for example, or is required/optional.

StandardStandard

valuevalueUnitUnit

Rule forRule for

maintenancemaintenance

Charging Liter required

Mixing Time optional

Heating C -- (none)

Fig. 4-8: Standard operation values used in the resource (example)

Formulas defined for a resource are used within costing, scheduling andcapacity planning. You can define formulas specific to your firm, in order tocarry out calculations for execution times, costing, and capacity require-ments for a process order.

Via the formulas for the calculation of the execution times,the scheduling

functions enable you to schedule the duration of operations (see Fig.4-9).

Formulas for the calculation of costsenable you to cost operations beingcarried out at a particular resource. They specify how costing is to becarried out.

Every capacity defined for a resource can have a formula for the calcula-tion of capacity requirementsin the operations of a process order allocatedto it.

Default Values forOperations

Standard Values

Formulas


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Resources 4

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Standard valuesStandard values

FormularFormular

ResultsResults

Operation qty.

Base qty.ChargingProcessingEmptying

200 l

100 l20 min60 min10 min

:

::::

Total time =

(Charging + Processing + Emptying)x Operation qty.

Base qty.

(20 min + 60 min + 10 min)x 200 l / 100 l

= 180 min

Total time =

Fig. 4-9: Standard values for formulas and calculation results

Via the scheduling functions, the start and finish dates for operations arecalculated. For this, the system needs to calculate the execution times andrelate them to the operating times of the resources.

Using the costing data, the production costs of an operation can be calcula-ted. Costing has the goal of allocating individual costs to the cost objects(material, order, etc.) involved.

If a resource is used in a recipe, standard values can be entered for theactivity types defined for this resource. Using these activity types, you canspecify how the standard values are to be costed. The valuation of in-houseactivities uses the cost rates defined for these activities in the cost center.

Further Resource Functionality

Capacity requirements are calculated on the basis of the standard values andquantities stored in the operations themselves. These in turn stem from for-mulas stored for the resources. During CRP, the capacity requirements of the

operations in an order are calculated and compared with the availablecapacity defined for the resources. This results in a so-called capacity loadanalysis.

You can use the interactive graphic planning table to dispatch operations toresources and to carry out capacity leveling. More information on this sub-

ject can be found in Chapter 7.

Via an interactive interface, you can then transfer the results of the loadanalysis to MS-EXCEL. In this way, load profiles can be processed furtherwith MS-EXCEL, or placed in word processing systems. Planners and sche-dulers can obtain a clear picture of the load situation of the capacities in theirplant or company.

Scheduling Data

Costing Data

Capacity RequirementsPlanning

Interface to MS-EXCEL


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Using availability checks, the available capacity of a process order or for

entire order structures can be checked and monitored in every stage of plan-ning.

For every operation of a process order, the system checks to see if there isavailable capacity at the specified resource. If there is not enough capacity,the system will propose a date to the planner at which the process order can

be carried out without bottlenecks.

You can carry out many different types of evaluations for the resourcesmaintained in your plant, such as:

Which resources are available?

Which cost centers are allocated to them?

Which capacities have been defined for the resources; at whichresources is a capacity being used?

What resource hierarchies exist?

In which recipes or for which materials is a resource being used?

Note:

You can find further information on the topic of capacity planning and leve-ling in Chapter 8 Capacity planning and leveling.

User-defined resources with any number of allocated capacities, grouped into

capacity categories, ensure that a firm can precisely control and monitor the

availability and the costs of its resources.

What types of resources can be maintained in PP-PI?

In PP-PI, you can define plants with individual processing units (for ex-

ample, reaction vessels), labor, transport facilities, storage tanks and many

other types of resources.

How are the capacities of resources used in PP-PI?

User-defined resource categories, factory calendars, shift schedules, and

resource hierarchies make it possible to realistically represent the capacity of

any type of resource. Furthermore, you can define single and multiple allo-

cation of capacities, as well as the exclusive use of a capacity for a resource.

Capacity Availability at

Time of Order Dispatch

Evaluations for Resources


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Chapter 5

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Master Recipes

The master recipe describes the production of one or several materials in aproduction run. It contains master data and details the plant-specific use of aprocess. It is used in MRP runs and in campaign planning, as well as in pro-cess planning and control.

ResourceRequirements

ProcessPlanning

Control

EBF/S88/Namur

Materials

Header

Procedure

Recipe

Safety andComplianceInformation

Fig. 5-1: Master recipes in PP-PI

The master recipe was designed in close conformity with the norms andguidelines of the following institutions:

ISA (Instrument Society of America) with the norm S88

NAMUR (Norms working committee for measuring and control tech-niques in the chemical industry): For the requirements of process plan-ning, PP-PI has included some enhancements over and above theNAMUR requirements.

European Batch Forum: coordinates the work of national Europeancommittees such as NAMUR with ISA.

Recipes contain all the information required by the FDA (Food and DrugAdministration) in their GMP (Good Manufacturing Practice) guidelines forthe documentation of process specifications. For each recipe and recipe ob-

ject (for example, operations/phases, material components, or process in-structions) involved, changes are documented separately. If a change num-

ber is entered, it is possible to have changes with a validity period.

The authorizations for changing recipes ensure that only authorized changesare made, as required in the GMP guidelines. You can get more informationon this subject in the section entitled Approval for Recipes further on in

this chapter.

Introduction

Conformity to Norms

FDA/GMP Guidelines


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The development of PP-PI places emphasis on maintaining full integration

with the data flows represented in the classical R/3 PP module. There aremany relationships between PP-PI and PP, since discrete and non-discreteproduction flows contain common functionality such as scheduling andproduct costing. In this way, manufacturers can use the functionality of dis-crete and process flow production simultaneously.

Master Recipe Functions

A master recipe describes the steps (operations and phases) involved in aproduction process, allocates resources and materials to the process, and

contains process instructions and their characteristics for purposes of processcontrol.

Secondary resources

OperationsOperations

PhasesPhases

Process instructionsProcess instructions

PI characteristicsPI characteristics

Materialcomponents

Relationships

Inspection characteristics

Material list

Recipe headerRecipe headerResource network

Fig. 5-2: Structure of the master recipe

In the R/3 System, master recipes have the same basic structure as routings,inspection plans, maintenance task lists, and library networks.

The recipe header contains information on the charge quantity range, thestatus or change rules for a recipe. The charge quantity range is user-de-fined. The status defines the usage and changeability of master recipes. Allrecipes are subject to change management.

In the recipe you can store a long text for the recipe and maintain generaladministrative and quality data.

Links to R/3-PP

Recipe Header


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Master Recipes 5

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Seen from the perspective of process planning, it is important to consider the

time sequence in which production takes place. This information is stored inthe operationsand phasesof a recipe.

An operation is an independent part of a recipe carried out at a processingunit (primary resource). An operation can be subdivided into phases. Ope-rations as well as phases can have resourcesand materialsallocated to them.

If operations are allocated to a particular processing unit, their executiontime corresponds to the duration that the substances remain at the process-ing unit. For each operation, additional resources (secondary resources) can

be defined, which can be allocated using a time offset. This could be laborresources, energy, transport, etc.

Steam

SecondarySecondary

resourceresource

OperationOperation

PhasePhase

Labor

SecondarySecondaryresourceresource

unit

PrimaryPrimaryresourceresource

Processing

Fig. 5-3: llocation of resources

In the master recipe, it is possible to first store only requirements for theresource to be used, without specifying exactly which one. At the time a pro-cess order is released, the user can then select a particular resource. For this,resources need to be classified via the R/3 classification system. From theresources which correspond to the requirements of the operation, the user

can then select an appropriate one.Phases can have relationships with the phases of other operations. Relation-ships specify the type of time sequence for operations/ phases. A simpleexample is the synchronization of phases belonging to different operations.Another example involves the mixing and heating of substances in onevessel, but where the duration of mixing is longer than that of heating. Thetwo phases mixing and heating have different durations, and their startis linked by a relationship.

Operation/Phase

Allocation of Resourcesto Operations/Phases

Resource Selection

Relationships of Phases


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Fig. 5-4: Relationships of operations and phases

A master recipe is scheduled in order to specify basic dates for all opera-tions. The scheduling function also determines the capacity requirementsneeded to carry out a certain recipe.

In the master recipe, scheduling is carried out for phases, since theoperations themselves cannot be scheduled. The earliest start and latestfinish dates/times of the operations are then derived from the phase sched-uling data.

A Gantt chart enables you to display the scheduling results in graphic form.

Information for the process control level is stored in process instructionsin

the master recipe. A process instruction is a structure with which data orinstructions are transferred from process planning to process control. Pro-cess instructions are allocated to the phases of a recipe. After a process orderis released for production, the phases in it are combined to form controlrecipes.

The process instructions to be combined in a control recipe are specified inthe master recipe using the so-called control recipe destination. This can be aprocess control system or a line operator, to which the control recipe is trans-ferred for further processing. Via the control recipe destination, you canspecify the technical address to which a control recipe is to be sent and howthe data transfer is to take place (for example, triggered by the R/3 System

or by process control).

Scheduling

Process Instructions

Control RecipeDestination


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In normal operation, the effect process instructions and their characteristics

(created for the master recipe) have on the layout and the structure of the PIsheet are only clear after the control recipe has been created. In order tocreate a control recipe, you have to create a process order using a particularrecipe, and then generate a control recipe from this order. Since this is multi-step process, a simulation function for the master recipe has been developed,so that you can check the layout and the structure of the PI sheet in advance.

You can get further information on process instructions and control recipesin Chapter 9 Process Management.

An important part of the master recipe is formed by the material list linkedto it, which contains all input and output materials. It serves to represent allthe material flows involved in a process. The material list is designed forprocess flows in which input materials are consumed and valuable/remaining materials are produced. In contrast to the classical bill of mate-rial (BOM), which is created for a finished product, the material list is cre-ated for the process and can also contain, for example, catalysts.

Fig. 5-5: Material list for a master recipe

The material list is based on the BOM components of the BOM used, theallocation of components to operations and phases and the material quantitycalculation.

Simulation

Material List


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The material list contains planned values for the input materials, their mix-

ing ratios as well as the yields and remaining substances (by-products,wastes) to be produced. The user has to define the finished products, theinput materials and all other produced materials in the form of materialmaster records (MM).

The sequence of the material components in the material list describes theflow of materials through a production line. For this reason, you have toallocate material components to the operations and phases of the recipe.

A material can be included in the list more than once. It can appear as aninput material, as well as an output material (finished product or by-prod-uct).

The materials are grouped into a material list, either for an operation or forthe entire recipe. This has the following advantages:

It enables the adequate description of co-products, if more than oneproduct per process is to be manufactured. For this, you have to defineco-products as BOM items.

It makes it possible to represent circular material flows in a plant.

It enables you to plan the production of products as well as wastes.

The production version defines a unique combination of a material list/BOMand a master recipe for the production of a material on a key date.

Recipe: Black varnish

ProcessProcess

Recipe 1 with:

Operations/phases

Relationships

etc.

MaterialMaterial

Material list

Components

Co-products

Material quantitycalculation

Production versionProduction version

Period of validity

Charge quantity range

Fig. 5-6: Production version for a recipe

By means of the production version, you can

Use different BOMs for one recipe, in order to produce a different colorper production version, as in the example in Fig. 5-6 above.

Obtain period-specific cost accounting for each production version

Functions of theMaterial List

Production Versions


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Production versions are used to represent various production techniques for

one product. They specify the following:

The material list/BOM used

The task list type (in this case, master recipes), the recipe group and thespecific recipe to be used

Existing lot-size restrictions and periods of validity

The material quantity calculation determines how much of each substanceused in production is necessary, taking into consideration the mixing ratiosof the input materials as well as the yield ratios of the products and by- orco-products. The material quantity calculation includes:

all quantities of materials in the material list

peration and phase quantities

the characteristics and their values

Catalyst Solvent

ProductProduct CatalystCatalyst RemainingRemaining

materialsmaterials

IngredientsIngredients

YieldYield

Characs

Act.ingrf.:

80%

Characs

Viscosity:

1555 Pa-s

Activeingredient

Fig. 5-7: Calculation of quantities for input materials and yields

The prerequisite of a material quantity calculation is the creation of charac-teristics and characteristic values, in order to classify the materials and theirproperties.

When a material is included in the material list of the master recipe, the cha-racteristics of the classified materials are used. In the BOM, it is possible toclassify the individual material items again.

Calculation ofMaterial Quantities


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Material quantity calculation uses these characteristics and their values. The

valuation of these characteristics provides planned values for material quan-tity calculation in the master recipe, as well as providing actual values forthe selection of batches in a process order. When finished batches from aprocess order are posted to the warehouse, the charactgeristics of its materi-als are valuated.

In material quantity calculation, you can use formulas to define how mate-rial and operation quantities are to be calculated. For this you can also usequantitative values of material characteristics.

When you change the quantity of a material or the value of one of its cha-racteristics, the system will recalculate all dependent quantities, in the recipeas well as in the process order.

When planned or process orders are created, the actual operation quantitiesare recalculated using the formulas stored in material quantity calculation.

When you change the quantity of a material or the value of one of its cha-racteristics, the system recalculates all dependent quantities in the recipe aswell as in the process order.

An intra material is a material which only appears temporarily between twoprocessing units. This can be, for example, a charge quantity which is flow-ing from one vessel into another. The charged substance needs, for example,to be distilled before it comes out as a finished product. Intramaterials ex-plode the levels of a BOM, provided the processes involved are connected.

It is necessary to define intra materials in orders, for example, to calculatematerial quantities or carry out in-process inspections for them.

Operationon unit

Catalyst

Product A

Product B

Raw material

Operation on unit

Catalyst

Intramaterial

Waste

Fig. 5-8 Material flow - example with intra material

Formulas

Intra Materials


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The user has the possibility of copying a master recipe. In this way, planners

can take a frequently used master recipe as the basis of planning, in order toadjust it to various processes and/or plant lines.

The copying function can also be used for the transfer of already existingstandard routings. The header data, the main sequence and the operationsare taken over as is, sub-operations are transformed into secondary re-sources. This means that you can use routings existing in your firm for thepurposes of PP-PI.

The manufacturing of products with many variants (that is, using confi-gurable materials) is supported as of Rel. 3.0D. For this, the customer order(SD) has to have customer-specific attributes allocated to the product to bemanufactured. Using these attributes, the master recipe uses selection con-ditions to refer to the product. This is done using so-called object dependen-cies, which specify whether an operation or a phase is to be transferred fromthe master recipe to the process order.

You can carry out the following evaluations for your recipes:

Evaluations on recipe changes: all changes in recipe objects are dis-played over the time axis

Where-used list of a master recipe in resources, process instruction cate-gories, materials, documents and classes

Mass changes: replacement of process instruction categories and re-sources in the master recipe, and of materials in material lists/BOMs.

Besides the functionality for mass changes in the material list, you can usethe integrated change management functionality to obtain a full change his-tory of materials, recipes, material list items, etc.

In the pharmaceutical industry, recipes have to be approved before they canbe released and used for production. Changes made to approved recipes areonly possible with special authorization and need to be approved a secondtime.

Change request

Status maintenance

Change

approved/permitted?

Workflow

Master recipe

Change rule

Fig. 5-9: proval of changes for master recipe

Copying Function

Configuration ofMaster Recipes

Evaluations

Change ManagementFunctions

Approval ofMaster Recipes


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The change rule for a recipe specifies that a recipe necessitates official appro-

val.

The way that a recipe is changed and approved is determined by the changerequest involved. The change request is subject to status management, whichcan be customized in various ways, for example, to initiate workflow.

Further Uses of the Master Recipe

Besides the recipes which serve to produce a batch, there are also non-manu-facturing recipes in PP-PI:

Cleanout recipescan be inserted between two operations, if the productsequence requires a cleanout operation.

Changeover recipesdescribe the requirements of particular resources,the materials or substances required, as well as the changeover activitiesto be carried out between two production campaigns.

Equipment-testing recipescontain process instructions that are used tocarry out and document periodic functional testing of a plant line.

The master recipe describes the steps of a process including the materials and

resources used.

Which information is contained in the master recipe?

The master recipe contains materials, the description of the process from the

planning as well as the control view, all resources as well as information for

quality control.

How are materials and their attributes represented during the calculation of

input and output quantities?

The material quantity calculation determines the required and generated

material quantities, taking into consideration the mixing ratios of the input

materials as well as the yield ratios of the products and by-products.


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Process Orders

The process order describes the actual production of one or several produc-tion lots or batches in a production process and contains dates and produc-tion quantities. Process orders belong to the transaction data of the R/3System and are similar to PP production orders in their structure.

The process order is usually generated on the basis of a master recipe. In theperiod between dispatching of operations and the release of an order for theproduction of a batch, the user needs to put information such as dates, floats,

specific resources, etc. into the process order.

Process planning uses the planning data provided by MRP or campaignplanning runs to generate process orders.Process planning also has to coor-dinate the production process with all available resources. For this, produc-tion runs must be controlled in such a way that despite malfunctions, a highadherence to delivery dates and high quality of output must be combinedwith low costs and inventory as well as with a high degree of capacity utili-zation.

The following graphic shows how the process order forms part of the R/3data flows of production planning, capacity requirements planning andcosting.

Material forecastforecastMaterial Sales/ DistributionSales/ Distribution

Preliminary planning

Demand programDemand program

MPRMPR

Planned orderPlanned orderPlan

Capacityplanning

Costing

Costing

StockStock

Preliminary planning Sales requirements

Goods issuesGoods issues

Conversion to process order

Execution of process order

Accounting (settlement)Inward stock movement

Fig. 6-1: The process order within the R/3 data flows

The process order is the main control instrument for carrying out produc-tion. It contains all planned and actual production-related data necesary toeffectively monitor your production runs.

Introduction

Dates; Quality;Costs; Inventory


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The process order and its functions provide answers to the following ques-

tions:

What and how much is being manufactured?

What exact dates and times are scheduled?

What elements are involved in production (material, resources withcapacities, etc)?

What costs are involved and how are they settled?

Functions of the Process Order

When a process order is created, the operations and phases of the masterrecipe selected to carry it out are copied into the order. At the time that aprocess order is released for production, you can generate control recipesfrom these operations and phases, bundled for each control recipe destina-tion.

If you do not select a master recipe or if you create a process order from aplanned order, the system automatically creates a process order with oneoperation.

For each order type, you can define in Customizing that process orders canonly be generated from officially approved recipes.

Once this approval has been given, the process order obtains a special statuscontaining this information. In connection with this status, the system willonly permit you to change data in a restricted way. At this point you canonly change MRP data such as quantities and dates.

Production requirements

Process ordersettlement

Process datadocumentation

Archiving / Deleting

Process messagesfor different destin.

In-process qualityinspections

Order confirmation

Process orderProcess ordercreationcreation

Scheduling

Capacity requiremts.planning

Material availabilitycheck

Release ofRelease ofprocess orderprocess order

Creating & downloadingcontrol recipes

MRPco

mlet

ion

Order P

ro

planning

c

ess

age

Pro

Process

execu

man

tion/

ment

ord

er

Material withdrawals

Goods receipts

Proc. orderProc. order

OperationsOperations

PhasesPhases

ProcessProcessinstructionsinstructions

CostsCosts

Ressourcen-zuordnungen

Material-komponenten

Anordnungs-beziehungen

cess

Fig. 6-2: Steps of a process order

Conversion fromMaster Recipe

Order Creation using anApproved Recipe


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Availaibility checks for material components ensure that only process orders

are released for which the raw or semi-finished materials are available.When you release the order, reservations are made for the material compo-nents involved.

The material availability can be checked either statically or dynamically.Although this availability is usually ensured by MRP runs, this additionalcheck ensures that work schedulers will be informed of material shortageseven in exceptional situations. A status function as well as a missing compo-nents list are available for schedulers to obtain a quick overview of materialavailability.

Using the basic order dates from an MRP run, the scheduling function thendetermines the actual start and finish dates for the order and its operations.

If capacity requirements and dates (scheduling) were already carried out inthe rough-cut planning phase, these results can be transferred automaticallyinto the process order.

The graphic presentation of the scheduling results in the planning table en-ables schedulers to obtain a current overview of the date/time situation oforders at any time (see Chapter 8 Capacity Planning and Leveling).

When a process order is released, the following functions are activated:

The material reservations generated for available and reserved stock are

updated in the corrresponding material master record. At this time theavailability of the material is checked by the system.

The specified resource classes can be replaced by individual resourcesby means of a selection function.

You can print shop floor papers.

You can allocate an inspection lot record.

Depending on the Customizing options set, the above functions can also besuppressed or carried out in another way.

After releasing an order, you can carry out material movements (to and fromthe warehouse) and confirmations for it.

Availability Check

for Material

Scheduling

Release


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The following screen shows the two-line operation overview of a process

order.

Fig. 6-3: Two-line operation overview of the process order

Via the PI sheet, you can display information on the manual control of theprocess. You can request process messages, for example, effecting materialwithdrawals or confirmations in the R/3 system.

After scheduling and releasing a process order, you can also carry out theprinting of shop floor papers directly from the process order. This caninclude detailed information on the operations of a process order, such asfound in the operation control ticket, job ticket, goods issue slip, picking list,confirmation sheet and time ticket. You can also reprint all shop floor pa-

pers at any time.

The material list used in a process order stems from the master recipe . Mate-rial lists can be changed in the process order in the same way as in the mas-ter recipe, for example, if you need to add new material components.

When a material list is changed, the system will carry out a re-calculation ofthe material quantities involved in this process order. In this way new mix-ing ratios for the input substances can be calculated.

Further information on the material list can be found in Chapter 5 MasterRecipes.

Order Execution

Printing Shop FloorPapers

Materials inthe Process Order


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In the material list, it is possible to allocate a batch to every material that is

managed in batches, that is, has a batch record. This batch is found using thefunctionality of the classification system (valuation of characteristics),provided you have classified the materials beforehand.

This ensures that the corresponding batch can be found from the existingbatches via the characteristics of a material (for example, the strength of anactive substance) defined in the material list.

It is also possible to split a batch. Depending on the availability situation, inthis case several batches can be allocated to a reserved material component,in order to remove a shortage in the material list.

For each process order, you can obtain logs on scheduling, material avail-ability and the costing run. These logs can be displayed at any time, andupdated in order to obtain detailed information on the results of the func-tions carried out.

Material withdrawals (that is, goods issues) can be carried out for an entireorder or for individual reservations (materials reserved for operations).

These material issue postings do not have to be carried out manually, butcan be generated automatically from the corresponding process messagescontained in the process instruction sheet (PI sheet) or from the lower-levelprocess control system involved.

When the materials are issued, the actual costs are updated automatically inthe process order.

It is also possible to carry out backflushing (retrograde issue posting) ofcomponents. In this case, the confirmation of an operation automaticallygenerates a withdrawal posting for the material components allocated to therespective component.

Status maintenance ensures that you can get an overview of the currentsituation of a process order at any time. User-defined status sequences sup-port the company-specific processing of an order. Furthermore, the systemsets a so-called system status at important events in the business process. An

example: The status "created" designates a created process order. After re-lease, the status "released" is set. When the control recipe is generated, afurther status is set, etc.

Completion confirmations are carried out for individual phases of processorders, or for entire orders. You can also carry out confirmations via the PIsheet.

Batch Determination/

Batch Splitting

Logging of Events

Material Issues

Status Maintenance

Confirmations


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During production, confirmations of actual quantities are carried out, involv-

ing finished products, co- and by-products, as well as wastes. Furthermore,actual times (start/finish times and durations) and actual costs are also con-firmed. These confirmations are carried out via the process managementcomponent and partially also via the process order itself. The data to bearchived is then written to the electronic batch record.

Manually Businesstransactions

Cap. load reductionat resource

Cost updating

Update of order data(e.g. status, dates)

Backflushing

Autom. goods receipt

Confirmationon phases

Events(Phase start/finish)

Activities

Resources

Quantities

HR data

Proc. controlProc. controlsystemsystem

Jump

PI-sheetPI-sheet

ProcessmessageProcessmessage

ProcessmeldungProcessmeldung

Fig. 6-4: Confirmations for a process order

Planners and schedulers have a number of evaluations or analyses at theirdisposal, thus enabling them to see at a glance what the order situation islike:

You can display all process orders, for example, for a material, MRPcontroller, shop floor controller, etc.

You can display a list of the missing material components.

You can display the pegged elements (planned orders, process orders,etc).

You can display the orders in backlog for specific products to be manu-factured.

You can branch directly to the Shop Floor Information System, in orderto carry out evaluations on resources, materials, operations/orders,material consumption or product costs.

Warehouse receipts from finished process orders can be carried out forbatches, partial lots or the entire production lot. The receipt posting can becarried out with reference to a specific customer order or to customer stockdefined as such.

Evaluations/Analyses

Warehouse Receipts


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As soon as a process order has been completely delivered to the warehouse,

the costs can be settled. For this, the balance between order debits (for exam-ple, issues, confirmations) and order credits via receipts to the warehouse iscalculated and the order account is debited or credited accordingly.

The valuation of warehouse receipts is carried out according to the valuationstrategy defined in the material master (for example, according to produc-tion costs, planned price, standard price, etc.). The so-called settlementreceiver is usually the material to be produced (finished product).

The following section on cost object controlling explains how planned andactual costs are calculated from the perspective of R/3-CO, the costingmodule fully integrated with PP-PI.

Cost Object Controlling

Cost object controlling allocates the costs incurred in a firm to various costobjects. Cost objects are objects used to allocate costs according to how theywere incurred. This could be an order, a material, a network, etc.

For this, the costs for cost objects are derived directly from the single costsinvolved (for example, goods issues, G/L accounts), or using costing proce-dures (such as internal activity allocation, overhead surcharges) from cost-center accounting. All costs per cost object or for an entire accounting period

can be displayed.

Warehouse

MMMM

Order release

Material withdrawalposting

Comp. confirmation

Classicalmaterial staging

Process Order

IstIst

MaterialMaterial 800800

ProductionProduction 600600

Ext. proc.Ext. proc. 400400

Changes to stockChanges to stock -1500-1500

Current stockCurrent stock 300300

Comp. confirmation

Material withdrawalposting

Backflushing

CO-CO-PCPC

Fig. 6-5: Simultaneous costing for process orders

Order Settlement/

Valuation

Introduction


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Costing of process orders is based on planned material consumptions and

the charge rates used for in-house production activities of these plannedrates (actual production costs). The basis of this is formed by the data onresources, master recipes and material lists.

For a process order, you can carry out the following functions:

Calculate planned costs

Calculate actual costs

Transfer actual costs to other objects, such as materials or customerorders, in the R/3 System

Analyze planned and actual costs

Via the CO information system, you can select all process orders correspond-ing to specific criteria, for example, all process orders for a particular mate-rial. For these orders, you can display the cumulated costs, in order toobtain an overview of your total costs.

The extended functionality of process orders enables you to determine thecosts of process orders which have not been settled yet, and to periodicallytransfer the value of work in process to financial accounting.

In process manufacturing, costs are settled to stock as soon as you haveposted a receipt to the warehouse (for example, for an operation). At the end

of the production run, all remaining costs for the order are also settled.

Scheduled dates are relevant to cost object controlling, since the plannedcosts have to be distributed over the scheduled periods. The planned costs ofa phase are updated in the period in which it is carried out. The distributionof costs is carried out according to calendar days.

The following screen shows the results of a costs analysis. The costs expectedfor a process order are displayed according to cost elements. There are thefollowing types of cost elements:

Primary cost elementsThe primary cost elements correspond to G/L accounts in financialaccounting (for example, for raw materials or semi-finished goods).

Secondary cost elementsThese cost elements contain costs from the CO area (for example, forinternal activity allocation, overhead costs).

Functions ofCost Object Controlling

CO Information System

Value of Workin Process (WIP)

Scheduling of an Order


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Fig. 6-6: Results of a costs analysis

It is furthermore possible to use the following types of cost calculation:

Cost itemizationCost itemization structures the costs according to cost elements andorigin groups, or according to costing items. The costing items are theindividual materials and activities whose costs were calculated in acosting run.

Cost component splitHere, planned costs are displayed according to individual cost elements.These are defined in Customizing and determine the costs which arerelevant for material valuation and profitability analysis.

When you are manufacturing co-products, the extended functionality of the

CO module for process manfacturing enables you to:

distribute the costs incurred for a process over the co-products(see following section) and

settle the costs allocated to the co-products to stock.

Costs for Co-Products


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Co-Products

The manufacturing of co-products enables firms to produce several differentmaterials using one process order. Within an order containing co-products,these can be allocated to the operation or phase in which they are to be pro-duced.

Leading materialLeading material Without leading materialWithout leading material

Co-product(SEMI, FIN, ...)

Co-product(SEMI, FIN, ...)

Chlorine-alkaliine-alkaliChlorelektrolysisiselektrolys

.

.

.

ngredient(RAW, SEMI, ...)

Waste

Process material(PROC)

Co-product(Semi, FIN, ...)

Ingredient(RAW, SEMI, ...)

Legend:

= Co-product+ = Input material- = Output material

C

CementC

-

Lime +

Sludge -

Coal +

CarbideCarbide

Cl2

C-

NaOH

NaCl

HCl

C-

+

+

Fig. 6-7: Representation of co-products

If several co-products are to be manufactured in one run, of which none is aleading material, you can create a dummy material for the process, calleda process material. The creation of the process order can take place usingsuch a process material or using one of the co-products (see Fig. 6-7).

Furthermore, you can maintain several order items with different materials.The co-products are taken from the material list of the master recipe and

written into the order item fields.

Co-products as well as wastes or by-products can be represented in thematerial list via a negative component quantity. Co-products are alsomarked via an indicator. In the MRP run as well as in the costing run, thesenegative quantities are taken into consideration.

The costs of an order with co-productgs are collected for the entire order andcan then be distributed over the co-products using equivalence numbers.

Material TypeProcess Material

Co-Products in theMaterial List


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Further Functionality the Process OrderPlanned inspection characteristics for operations and phases are maintainedin the master recipe. This data is then taken over into the process order.

For a process order involving a material to be inspected, an inspection lot isgenerated automatically. A material is marked as to be inspected if youhave maintained the quality management screen of the material master andactivated it.

...

...

......

...

......

...

...

Phase Phase

Operation

Process order header

Material

Master recipe

header

Operation

Inspectioncharacteristics


Material masterQM data

Inspectionlot header



UnplannedUnplanned

inspectioninspectioncharacteristics characteristics

Fig. 6-8: Integration of QM functionality in PP-PI

The inspection lot is generated automatically as soon as the first operation orphase of the process order has been released. It is also possible to generatean inspection lot manually previously to this. When an inspection lot is gen-erated, the inspection characteristics maintained in the master recipe aretransferred to the inspection lot.

Unplanned (process-order specific) inspection characteristics can be enteredfrom the operation/phase screen of the order. For this, the system branchesto the QM inspection results entry screen.

You can get further information on the link between PP-PI and R/3-QM andexternal LIMS systems in Chapter 10.

External relationships are relationships linking phases of different orders.This function can be used, for example, to create a link between a processorder and one or several filling or packing orders for this process order.

Using the functionality of variant configuration, you can select a configur-able BOM and a configurable master recipe for a customer order. This will

facilitate the manufacturing of the corresponding process order.

Integration betweenProcess Order andInspection Lot

External Relationships

Variant Configuration


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This is done by allocating a configured material to the corresponding master

recipe (later to be used for a process order).

Process order

Configured

master recipe

ConfiguredBOM/material list

ConfigurableConfigurablemaster recipemaster recipe

ConfigurableConfigurableBOM/material listBOM/material list

Customer order

PC varnish

ColorBlack

Fig. 6-9: Variant configuration for process orders

When you create a customer order, you can have the system automaticallygenerate an assembly order. This is a special type of process order generatedfor purposes of covering the independent requirements of the customerorder. An example in process industries would be the providing of animalfoodstuffs, which are mixed in the last step, according to each customer or-der.

Provided this has been indicated in the material master record, the followingdata is exchanged between customer order and process order:

The staging date of the material and the customer order quantity arewritten to the process order

The costs of the goods to be manufactured, the available quantity(provided an availability check was carried out), and the confirmeddelivery date are transferred from the process/assembly order to thecustomer order.

A collective order refers to the linking of planned or porcess orders onvarious production levels. Via order networks, you can group all the steps

in a manufacturing process in one display and thus obtain an integratedview of your manufacturing runs.

Warehouse movements are only carried out for the order on the uppermostproduction level. Changes to an order are automatically passesd on todependent orders or pegged requirements. Furthermore, you can displayplanned and actual costs of any order within a collective order.

The flagging of a finished product as forming part of a collective order iscarried out in the material master record for this product.

Assembly Orders

Collective Orders


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From the R/2 System, as well as from other external applications, it is possi-

ble to transfer single and multi-level orders in the form of so-called produc-tion requirements. All production requirements can be displayed andchanged via the PP-PI menu.

You can get further information on this topic in Chapter 11 Integration withHigher-Level Systems.

The maintenance of process orders in PP-PI enables you to control dates,

costs, inventory and quality of your production runs. The process order is

completely integrated in other R/3 production data flows, such as MRP or CRP.

How can a process order be created?

A process order can be created with or without a planned order (from

MRP runs), i.e. with or without previous planning. You can also use

requirements defined by an external system for process orders.

How are resources selected for a process order?

In the resource network, you can display the path of a product.

Via the classification system, you can select a suitable resource.

Integration with

Higher-Level Systems


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Chapter 7

7-1

Batch Management

Many companies are faced with more stringent environmental and con-sumer protection laws as well as with increasing requirements in the area ofproduct liability. R/3 batch management contains cross-application func-tionality enabling you to fulfill the complex requirements of the pharma-ceutical and chemical industries, among others.

By systematically managing batches, or production lots (as they are frequent-ly called), you can greatly improve customer satisfaction, as you can then

precisely plan and control product quality. A usability check enables you tolocate the optimum batches meeting customer specifications. You can usethis function to find batches you want to use in a production process.

B

A

Sales andDistribution

ProductionProcurement

WarehouseManagement

WarehouseManagement

B

A A AA A

Purchase

order

Ware-

houseProcess/

Productionorder

Sales-order

Ware-

house

Batchmanagement

Fig. 7-1: Integration of batch management with the supply chain

Using the batch management functionality, you can improve the quality ofyour warehousing since you can locate the optimum batch to be used orsold. Using the batch where-used list, you can track batches over the com-plete supply chain; that is from receipt of a batch of raw material, throughproduction, right up to final delivery to your customer. Should it be neces-sary to recall a product, you can initiate the required measures immediately.

Introduction


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7 Batch Management

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Batch management contains cross-application functionality available as of

Release 3.0 and is integrated with all logistics-related applications:

Purchasing

Inventory Management

Production

Sales & Distribution

Warehouse Management

Quality Management

SAPs usage of the term batch (lot) concurs with the following definitionpublished by the Food and Drug Administration (FDA) in their Good Manu-facturing Practices (GMP):

Batch: a batch is a quantity of any drug produced during a given cycle ofmanufacture. The essence of a batch is its homogeneity.

For SAP a batch is thus a quantity of any given material, produced duringoneproduction process. It is characterized by clearly defined specifications.Using Batch Management, you can manage partial quantities of a materialseperately in stock.

The figure below shows how batches are created during a production proc-ess. Depending on the requirements of your industry, you can also combine

batches of materials that have identical specifications during quality inspec-tions.

Batch 1

Viscosity 1930 cst

pH value 7.5

Batch 2

Viscosity 1950 cst

pH value 8.5

Material Epoxy resin

Quantity 1 Quantity 2

Process order 1 Process order 2

Fig. 7-2: Batch creation during a production process

Definition of theTerm Batch


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Batch Management 7

7-3

Batch Management is a general-purpose function but is used mainly by the

following industries:

Chemicals

Pharmaceuticals

Cosmetics

Food

Health and Hygiene

Batch Specifications and Levels

Every batch features certain specific physical, technical or chemical proper-ties that enable you to describe it (for example, pH value, viscosity, colorpurity). These values are determined, for example, in a quality inspectioncarried out by R/3 Quality Management, which is directly linked to batchmanagement.

These batch specifications are the cornerstone of batch management. Theyare stored as characteristics in the R/3 Classification System. You canmaintain characteristics either when you maintain batch master recordsduring goods receipt or during usage decisions in Quality Management. Thespecifications you use depend solely on your requirements. Apart from the

above types of properties, you can also use characteristics such as the shelflife expiration date or usability.

A batch is always posted toa certain material. The system checks the batchspecifications (actual values) against the material specifications (targetvalues). This process is illustrated below.

MaterialMaterialEpoxy resinEpoxy resin XX

ProductEpoxy resin

Viscosity 5000-12000 Color 0-5 Epoxy count 23-25 Volatile portion 0.00-0.50

Characteristics

Viscosity at 25 Color Epoxy count Volatile portion

Batch 1Batch 1Epoxy resinEpoxy resin

Viscosity 7250 Color 1-3 Epoxy count 23-25 Volatile portion 0.30

Fig. 7-3: Material and batch specifications

Management ofBatch Specifications


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7 Batch Management

7-4

You can define at which level you want batches, or more precisely batch

numbers, to be unique.

at plant level

at material level

at client level for a material

Plant LevelChoose this option if you want a batch number to be known only in the plantin which it was created, and not in plants that might also stock the samematerial. In this case, the batch number is unique in combination with aplant and a material. In another plant, the same batch number identifies a

different batch of the same material.

Material LevelChoose this option if you want the batch number to be unique in combina-tion with a material. When you create a batch, it is automatically known inall plants that use this material. If you use this option, a batch number can-not refer to different batches in two plants. If you transfer the batch fromone plant to another, the batch specifications will also be known in the newlocation, even if the batch is stored there for the first time.

Client LevelChoose this option if you want your batch numbers to be unique at clientlevel. In this case, the batch number is a unique reference to the material forwhich you created the batch. The specifications of the batch are identical inall plants in which you use the batch. You cannot assign the same batchnumber to different materials.

Should you decide to change the batch level after you have already createdbatches, you can use a conversion tool to change the batch level.

Batch Management Functions

Batch Management provides the following functions:

Batch number assignment

Batch status management

Batch tracking

Batch determination

In order to be able to identify batches, you need to assign a batch number toeach batch. In the R/3 System, you can choose between automatic andmanual batch number assignment. You can assign batch numbers wheneveryou create a batch (for example, during master data maintenance, goodsreceipts, in process orders, during usage decisions, recurring inspections,and transfer postings).

Batch Levels

Batch NumberAssignment


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7 Batch Management

7-6

In this way, it is possible to display all materials and respective batches used

during the manufacture of a product that has been supplied to one of yourcustomers (top-down analysis, see figure 7-4). You can also display all stepsin production during which a specific batch of a material was used (bottom-up analysis).

You can use this function not only for raw materials, intermediate andfinished products, but also for trading goods.

Batch RecordThe batch record contains all data on the manufacturing process of a batchthat is required to ensure compliance. In PP-PI, the requirements of anelectronic batch record are met using process data documentation. Processdata documentation is a tool that enables you to collect target and actualdata and to store this data in an optical archive. For detailed information,refer to chapter Process Data Documentation and Evaluation.

Batch determination is a usability check. You can use this function for alloutward movements to find batches that meet certain specifications. Thefunctionality is identical in all applications.

You can run batch determination in the following areas:

Inventory Management

Production

Distribution

Warehouse Management

Search strategies are the cornerstones of batch determination. Search strate-gies are master data and contain information on the selection criteria youwant to use to find batches and on the further handling of the batches found(for example, wether batch splits are authorized). Search strategies aredefined for individual business transactions.

In process manufacturing, you can use batch determination to find batchesof material components to be handled in batches. There are several methods

you can use to store the selection criteria required for batch determination.The system automatically checks batch availability during batch determina-tion.

The figure 7-5 shows the screen generated after you trigger batch deter-mination in a process order.

Batch Determination


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Batch Management 7

7-7

Fig. 7-5: Batch determination in process orders

Batch determination in process orders makes it possible to reserve batchesfor specific orders at an early point in time. In this way, these batches are notavailable for other orders. If you do not need to reserve specific batches inthe process order, that is, if a reservation at material level suffices, you cantrigger batch determination, for instance, in Inventory Management duringconsumption posting for the order.

Batch Management is an integral logistics component that enables you to

describe partial quantities of materials using specifications and to manage

them separately in stock.

What is Batch Management based on?

on the management of batch specifications

on the batch level at which batch numbers are valid

What are the core functions of Batch Management?

Batch number assignment

Batch status management

Batch tracking using the batch where-used list and batch record

Batch determination


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Chapter 8

8-1

Capacity Planning and Leveling

Capacity planning and leveling involves the functions of campaign plan-ning (rough-cut or long-term planning) and process planning (detailed/short-term planning). These functions serve as tools for MRP controllers,plant managers, shop floor controllers, shift foremen and plant operators toplan the use of plant resources, control production runs and ensure thatwaste facilities are working properly.

Campaign Planning

Process Planning

Vessel 1

Vessel 2

Train/Line

Fig. 8-1: Campaign and process planning

In the case of a production plant,

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