Key performance efficiency for a work center in SAP PP R3

Every manufacturing line works with certain amount of efficiency and every industrial engineer or production departments knows this well in manufacturing shop floor about it. And while doing capacity planning and production planning in shop floor, planners will consider this factor to calculate the processing time of a production of a product. This efficiency factor percentage can be considered for any standard value key in a work center in SAP.

Most of us may be aware of it, but this is an attempt to make people who are in search of it & looking for it. Many people asked this question in the forum on how to introduce this OEE or key performance factor.

Apart from advanced options of SAP OEE & MII, if you considers option available in SAP PP R3, We can build this in work center.

Calculating this factor through SAP PP R3 is not possible, but if we know the percentage factor we can input this as a key performance efficiency in work center in front of standard value key, which can be considered for scheduling.

What it does? Considering this factor, wherever this work center is used and this standard value key timings are maintained in routing, while creating planned order or production order, overall time for this operation gets multiplied by this factor and increases operation processing time by this factor.

For example i maintain 50% efficiency for below standard value keys

Find below are the routing master data for base quantity 1

See the result of it in production order for order quantity of 1 EA, standard routing ti me for machine & labor gets doubles due to 50% efficiency.

Configuration for this scenario in SAP:

You can define key performance efficiency rate in below configuration path or in transaction OP28

Define performance efficiency factor

Click on Performance efficiency rates & validity and select this efficiency rate validity and with settings of whether this parameter considered while calculating cost of the operation or activity wherever this work center with efficiency rate is used and whether this parameter to be considered in Scheduling.

What are the benefits of it?

1. We can consider the performance efficiency rate for a work center, which is equal to actual in shop floor.

2. Production planning times are accurate, and planning will consider actual timings of the operations.

3. Helps in scheduling of production orders on shop floor etc

We can also do this for the combination of recipe (routing) and material, if you do not want this at work center level. Any feedback or questions welcome on this, and i am happy to share this with you all. Few of automotive or other industry look for this efficiency factor to be considered in planning, so i believe this will be good input.

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How to create planned orders/purchase requisitions/production orders directly when sales orders are created without running MRP

Sometimes, it is required in business that the planned orders/purchase requisitions/production orders can be created in transaction code VA01 directly when sales orders are created without running MRP for the sales orders. This can be realized through one of the solutions below.

Solution 1: Automatic planning

A purchase requisition is created for sales order 14086/10 when that is created. To make it happen this way, need to know the requirement type of it. It can be seen in VA03 below.

The requirement type is KE, run customization transaction code OVZH.

The field ‘Automatic plnng’ makes the MRP is run automatically for the sales order only to create a purchase requisition. The MRP is called in VA01 internally and the MRP parameters like the ‘Creation Indicator’ are fixed in the source codes. The creation indicator used is 2 (Purchase requisitions in opening period), so a planned order might be created instead of purchase requisition if the release date of procurement proposal is not in the opening period.

Solution 2: Assembly To Order

To make it happen, value 4 is in the field ‘Assembly Type’ of transaction code OVZG as below. The field also have other values to create production orders.

Solution 3: Purchase requisition with delivery scheduling

A purchase requisition can be created directly by the customization of schedule line category. In the transaction code MD04 below, a purchase requisition is created for sales order 14089/10, this doesn’t participate the MRP calculation.

To make it happen, need to identify the schedule line category of the sales order, go to the transaction code VA03 to check the schedule line category as below, it’s CP.

Go to customization transaction code VOV6 for CP, select the field ‘P.req.del.sched’ and maintain the fields ‘Order Tyep’/Item Category’/Acct Assgt Cat’ for the purchase requistion to be created, deselect the fiedls ‘Req./Assembly’/Avaialbility as it doesn’t join the MRP. Sales order creation can therefore create a purchase requisition.

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Milestone Confirmation of the Process Order with Multiple Operations & with Multiple Phases involved

Business Process with Milestone Confirmation in the Process Order

For a Process Order, with multiple Operations & each Operation contains multiple Phases. During the confirmation of the last Phase of the last Operation, (which contains Milestone confirmation) System should automatically confirm all preceding Phases in all the Operations

Please find the sequence of steps involved in executing this Business Process/Requirement

 ---------- Requirements of the Master data settings ----------

1.Create Material Master for the FG/SFG & Raw Materials required, Transaction code: MM01

Created the below Materials for this scenario
For Example : Finished Product: FNP1 & Raw Material: QMATR1

2. Create the BOM for the finished Product, using he Transaction Code: CS01

Created the BOM for the Finished Product : FINP1, with the required set of components

3. Create the Resource using the Transaction Code: CRC1

Created/Used the below mentioned three Resources: 1111, 1112 & 1113, in the Plant 1100

Now, all the required Resources were set in the System

4. Create the Master Recipe, using the T Code: C201

Master Recipe settings plays important role, for this Milestone Confirmation, with the Multiple Operations with Multiple Phases. Need to maintain the Relationship between the Phases of all the operations involved.

This Mater Recipe creation can be the generic one, which can be used/assigned for multiple Header Materials that were going to be produced (or) specific to any one of the FG/SFG Material

In the initial screen, that is displayed, enter all the required fields & Press Enter

In the next screen, that is displayed, enter the required fields, then Press Enter

In the Next screen that is displayed, enter the required data

Enter all the sequence of Operations & the Phases of the respective Operations

Look at the details of the Control key settings

maintain the Relationship, between the Phase with Milestone Confirmation (0080 Phase), in all the other Phases (0020, 0040, 0060, 0070)

How to Maintain the Relationship (for Ex: for the Phase 0020)

Select the Phase & Click on the Relationships Icon (as shown)

In the next screen, that is displayed, enter the required data

Continue the same, for all the remaining Phases: 0040, 0060, and 0070

Make Sure, all the relationships are also updated in the Phase: 0080, as Predecessors

Click on Materials Tab, Enter the required Data

the Next Screen, that is displayed, If required, Check for Consistency & then save

Recipe was saved with group 50000162 and material FINP1.

Make sure, Material Master of the FG, is correctly updated with Production Version details

---------- Execution of the Transaction data ----------

1. Create the Process Order using the Transaction code: COR1

Create the Process Order using any of the standard steps/methods

Make sure, all the required data is entered, then Click on Save

Make sure, all the required data is entered, then Click on Save

2. Release the Process Order using the Transaction code: COR2

Go to Change mode of the Process Order,Click on Release Flag, then Click on save

3. Goods issue of the required components to the Process Order suing the T Code : MIGO

Material document 4900002598 posted

4. Confirmation of last Phase of the last Operation of Order, using Transaction Code: COR6N

With Milestone Confirmation

Enter the Process Order Number, Phase & Click on Actual data

In the Next Screen, that is displayed

Click on Save

Confirmation of order 70001034 saved

Look at the Operation confirmation details of the Order Now

5.Goods Receipt of the Header Material, can be done using the Transaction Code: MIGO

Enter the Process Order Number & the required details, press Enter

Click on Check & then Post.

Material document 5000000461 posted. & Process Order is updated with the Status: DLV

6. Confirmation of the Stock update using the Transaction Code: MMBE

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Difference in COGI and CO1P

I have been searching and reading all the documents regarding COGI and CO1P, to know why some goods movements are held in COGI, while some in CO1P. I would like to share my knowledge on where I started and ended in learning about these transactions. Hope this document will be final stop if you are also searching for this topic.

Let us consider that auto goods movement is setup for confirmations of production orders in the below scenarios.

Confirmation is saved but goods movements are failed?

To find out the reason for this we have to go to transaction code:

COGI - Postprocessing of Error Records from Automatic Goods Movements

As the name suggests, we can process failed goods movements from here after correcting the errors.

Give the order number and execute

For example, error here is due to deficit in stock of goods posted. Until stock is updated in the system this posting will be held in COGI, from where we can post the goods later.

Now after updating the stock open COGI again, select the required line items and click on save to post the goods. If the confirmation details have to be changed double click on the line item or select the line item and click on change details button, and then post the goods by clicking on save button.

How to configure system to stop the confirmation process, when error occurs in Goods Movements?

This can be configured under the IMG node “Define Confirmation Parameters”

This indicator specifies that if you save a confirmation with goods movement errors (that is, backflushing or automatic goods receipt), then the system displays an error log before saving.

Confirmation saved and no goods movements failed, still stock is not updated in production order?

In this case you may have to go to transaction code:

CO1P – Predefined Confirmation Process

As the name suggests, this is an already defined step in configuration to process all goods movements of that day at later point of time. For example, to improve system performance all goods movements of an hour can be held and processed through CO1P in one go. This is setup in decoupled confirmation settings.

Give the order number and execute

Select the required line items and click on save to post the goods.

What is decoupled confirmation? How can it be setup?

To avoid the issues with response time of confirmation process, we can decouple the steps taking place during confirmation. Following are the processes which can be decoupled

◉ Automatic Goods Receipt

◉ Backflush

◉ Actual cost determination

The execution time of above processes can be defined under IMG node “Define Time for Confirmation Processes”.

Which means above three tasks can be configured to be processed immediately at the time of confirmation itself or else later in background. This setup is known as decoupled confirmation.

This process control key can be maintained under the node “Confirmation Parameters” for required order type.

Then the goods movements related to this confirmation will be held in CO1P, until they are processed manually or by a background job.

When the option “Later in Background Job” is selected, system saves the confirmation data in below tables :

◉ AFRP1 – Auto GR confirmation records

◉ AFRP2 – Backflush confirmation records

◉ AFRP3 – Actual costs confirmation records

Stock is not updated against the order even after processing the entries from CO1P?

In this case you may have to look into COGI, if there are any further errors which are to be resolved.

Ex: Stock Deficit, Authorization issue, Production order status etc.

Why does system post entries sometimes into COGI and sometimes into CO1P?

So coming to the point, if there are any errors due to which system is not able to post the goods movements then such items are held in COGI. On the other hand stock postings will be held in CO1P when configuration is predefined as mentioned in above steps.

There is one exception for this, when load on system is huge and if locks occur during the time of confirmation no error record is generated in COGI, but instead a request is generated for a later update because the system assumes that the lock is only temporary. These requests can be found in CO1P.

What are the programs to run COGI, CO1P in background?

CORUPROC, CORUAFWP and CORUAFW0 are the reports which can be scheduled in background, to clear the postings that are held in COGI/CO1P at regular intervals.

But they have limitation when working with COGI entries, as these cannot be cleared until respective error is resolved. For example if the entry is due to stock deficit, then it cannot be cleared by these reports until stock is updated in system.

All these entries are stored in table AFFW. At the start of any of above programs, a global lock is set for all entries in table AFFW as well as a global process lock for goods issue and goods receipt. So it is advisable, not to run these reports in parallel as it may lead to job cancellations. So maintain some time gap while scheduling the jobs with different reports. Also we can differentiate the errors in table AFFW with error message numbers, if there is no error message number against a line item then it can be seen in CO1P.

What are CO16N and COFC used for?

CO16N - Postprocessing incorrect confirmations

This transaction deals with failed confirmations, whereas COGI/COPI deals with failed goods movement.

Confirmations with errors can arise if they were entered in one of the following ways:

◉ Upload from a PDC system

◉ Online entry ( Fast Entry or Mass Processing )

◉ Entry via BAPI interface

Errors might be like Order does not exist, Order was locked, Order already confirmed etc.

COFC - Postprocessing of confirmations with errors in calculation of actual costs

The errors in cost calculations during confirmations will be updated in the Transaction COFC. So this is not related to posting of goods movements we discussed above.

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