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SAP for Mill Products
Stefan Soeller, SAPSolution Management - IBU Mill Products & Mining
Variant Configuration and MTS Production A wish or reality?
© 2011 SAP AG. All rights reserved. 2
Configuration basics
Configuring a sales order line item results in- Production: Make-to-Order- Inventory: Customer specific stock
Configuring a production order always requires a relation to sales order stock / copy characteristics
© 2011 SAP AG. All rights reserved. 3
Further Solution Discussion is part of DIMP
Automotive
Mill Products
SAP ECC Core
SAP ECC 6.0
EE EE EE IE IEIndustry & Enterprise Extensions
IE
Industry Extension DIMP
Automotive
Aerospace & Defense
Mill Products
High Tech
Engineering & Construction
Former add-on has become Industry Extension
Functionality still available
Shipped as part of the ERP Core Component
Only one IE can be active
Industry Extension DIMP used across several industries
Functionality originally created with background of only one of the DIMP industries
Processes running in oneindustry segment supported
Processes across differentDIMP industries not allowed
Individual check by SAP Custom Development possible
DIMP : Discrete Industry / Mill Products IE: industry Extension
© 2011 SAP AG. All rights reserved. 4
Configuration in MTS – possible in three different scenarios
Sales Order
Different behavior inERP
ERP & external planning tool
Production Order
Possible with external planning tool e.g. APO
© 2011 SAP AG. All rights reserved. 5
Configuration in MTS
Sales OrderMaterial Variant (MTS variant)
Different behavior inERP
ERP & external planning tool
Pre-requisite:Material is batch managed
Customizing requirement class
Production OrderAny variant configuration material
Only possible with external planning tool e.g. APO
Pre-requisite:Material is batch managed
Active integration model / MRP type external planning
© 2011 SAP AG. All rights reserved. 6
Changing Characteristic Values of configured MTS Material Variants
Change in sales order – ERP only
Business Background
Direct sales (e.g. metal service center, lumber, ….) utilizes MTS material
Customer request is different from what is available in stock :Available material / inventory: 10 feet tubeCustomer request: 9 feet tube
Sales rep needs to change material master data in sales order from 10’ to 9’
No MTO segment / NO individual customer requirement should be createdNo production order should / can be involved in cutting tube to length
Execution based e.g. on delivery documents (no capturing of cutting cost). See transaction MILL_CUT
© 2011 SAP AG. All rights reserved. 7
Changing Characteristic Values of configured MTS Material Variants
Change in sales order – ERP only
Restrictions
Changed values are only considered during batch determination, pricing, quantity conversion, and in sales documents
ERP MRP does not consider changed characteristic values. In case of insufficient material in stock, MRP will create replenishment order for 10 feet length
© 2011 SAP AG. All rights reserved. 8
Grade 1bCore Diam. 150Width 200Length 8 – 10 feet
Material Master Tube 123
Length 8 feetWeight ...
Tube 123Batch 1
Length 9.5 feetWeight ...
Tube 123Batch 2
Sales Order
Batch Determinationalso used for:
PricingPrint Sales DocQuantity conversion
Only production relevant with external planning system
Specified in Sales Order
Changing Characteristic Values of configured MTS Material Variants Example
© 2011 SAP AG. All rights reserved. 9
Changing Characteristic Values of configured MTS Material Variants (ERP&APO) -1- Change in sales order – ERP & APO
Business Background
Same as before
Behavior of external planning tool e.g. APO
APO planning run is able to plan on characteristic level (while ERP can only plan on material level), and thus transfers changed sales order characteristics to APO planned order
APO pegging connects sales order with planned order based on characteristics
APO orders transferred to ERP as a MTS production order with configuration of sales order
© 2011 SAP AG. All rights reserved. 10
Changing Characteristic Values of configured MTS Material Variants (ERP&APO) -2-
Change in Sales order – ERP & APO
MotivationClassical Make-to-Order has limitations in planning
Planning run cannot access stock from other sales orders
Inability to increase quantity of planned orders to e.g. utilize its quantity lot size optimization not possible
Sales order stock could only be moved into make-to-stock segment with material master price (not considering sales order configuration)
Use Make-to-Stock production with configurable materials
Provide additional flexibility for supply chain planner in APO by modeling sales order driven make-to-stock (Best Practice Primary Steel concept)
© 2011 SAP AG. All rights reserved. 11
Make-to-stock production with configurable materials (APO)
Sales OrderConfigure MTS-item
Planned Order APOMTS-item with own configuration
Production Order ERPMTS-item with own configuration
Support configuration for MTS item in sales order and production
Customizing of requirement class;batch managed
APO ensures that characteristic values are passed to planned order
Characteristic values are passed on to production order in ERP without sales order reference
APO pegging connects sales order with planned order based on characteristics
Goods Receiptof MTS item (batch)
© 2011 SAP AG. All rights reserved. 12
Configuration in MTS
Sales OrderFully Configured Material Variant (MTS variant)
Different behavior inERP
ERP & external planning tool
Pre-requisite:Material is batch managed
Customizing requirement class
Production OrderAny variant configuration material
Possible with external planning tool e.g. APO
Pre-requisite:Material is batch managed
Active integration model / MRP Type external planning
© 2011 SAP AG. All rights reserved. 13
Configuration in MTS Production Orders
Enable the production planner to generate a MTS production order with the header material configured to his needs
Use Cases
The production planner has knowledge of future incoming demand and needs to be prepared with e.g. semi-finished or finished goods in inventory to quickly satisfy the demand
Material produced is a trial version for internal or external usage
Excess inventory (e.g. cancelled SO) / damaged / doesn’t meet original quality requirements / … needs to be processed to be sold at a later time
…
© 2011 SAP AG. All rights reserved. 14
Create Production Order – DIMP specific
1 2
Characteristic values can be edited
No sales order assignment required
1
2
Thank You!
Contact information:
Stefan Soeller, SAP CanadaSolution Management – IBU Mill Products & MiningEmail: [email protected]
© 2011 SAP AG. All rights reserved. 16
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