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SAP R/3Business Blueprint
Chapter 6
Production Logistics
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Production Logistics
(P.L.)Is the SAP solution for a modern
production planning and control
systemIt provides quick deliverability
It is flexible
Offers high level of performance forthe planning and control of the totalmaterial flow
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MRP IIMRP II is a internationally recognised
planning concept
Shortcomings with MRP II: Planning is treated separate from managing
actual production activities
The approach does not provide support for other
current initiatives
P.L., along with its links to R/3, is an
implementation that effectively overcomes
these two shortcomings
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Production Logistics
Production
Organisa-
tional
Units
Supply
Chain
Scenarios
Business
Process
Business
Objects
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Production by Lot SizeA make-to-order strategy that allows a
company to produce several customerrequirements in one lot
The strategy is to be responsive to customerdemands while keeping stock andproduction runs to a minimum
Production work orderscontrols therequirements and what to produce
=> noncustomer order-specific production
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Production by Lot Size IIScenario flow:
Sales and operation planning
Demand management
Material requirements planning
Creation, release, and execution of the
production work order
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Repetitive
ManufacturingRefers to production of identical or
similar products on high-volume
production linesProduction schedules are used to
manage production (instead ofproduction work orders)
The schedules gives which products tomanufacture and in which sequence
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Repetitive
Manufacturing IIScenario flow:
Sales and operation planning
Demand management
Customer demands and long term
production plans
Creation, release, and execution of themaster schedule
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Make-to-Order
ProductionStrategy for individually managing the
production associated with specificcustomer sales orders
Production and procurement costs aretracked to individual sales orders
This results in detailed reporting and
analysis of the planned and actual costs foreach order
Same scenario flow as Prod. by Lot Size
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Process Manufacturing The SAP R/3 scenarios for process
manufacturing manage the planning,execution, and control activities for process-oriented manufacturing
The Reference model contains differentscenarios, including: Continuous production
Manufacturing in a continuous process over time
Discontinuous production Manufacturing in stages
Regulated production
Requires that the process orders meet rigorous qualitystandards and legal requirements
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Process Manufacturing IIScenario flow:
Sales and Operation Planning
Demand Management
Generation of long-term production plans andmaster schedule
Computation of material flow
Production is managed by the production order
Material is received from or issued to productionand the process order is completed and closedout.
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Project-Related
Engineer To Order The engineer-to-order manufacturers
require a system that synthesises the best
from Production Management
Project Management
The project-related, engineer to order
scenario, describes a process for managingthe production of complex items
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Project-Related
Engineer To Order IIScenario flow:
Establish a project structure to quote a
customer job Detail cost plans are developed and
integrated into a budget
The project is the released for processing
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Quality Management
for Goods Receipt from
Production
This scenario integrates the goods
receipt transaction into an enterprisewide quality system
It can be used in any environment to
support quality improvement programs
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Quality Management
for Goods Receipt from
Production II
Scenario flow:
Goods receiving function
R/3 uses data from that function to generate the
Quality Management order
The Q.M. order is used to control the inspection
process and record results When all results are recorded, the Q.M. order is
closed and inventory lot is moved into stock-
keeping area or next step in production