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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SAP - Production Planning (PP) Master Data

The first time I learned about SAP, I was having difficulties to understand the basic concept because of its ‘technical’ language. So, I hope this post can help those who are just started to jump in the Production and Planning world of SAP.

PP Master Data

In general, master data in Production Planning consists of:

• Material Master
• Bill of Material (BOM)
• Work Center
• Routing
• Production Version

Material Master

Material Master contains information on the material that is manufactured/produced, procured, or sold by the company. For example, in a bakery, the material master would be the types of bread and cake that is sold, as well as all of the ingredients needed to make those breads and cakes; In a car manufacturer company, for instance, material master would be the car itself, the door hinge, the steering wheel, and the seat. We define a thing as material master if we want to make it as our inventory and/or monitor the stock.

Bill of Material (BOM)

BOM is the complete components that make up a product. In other words, BOM is the ingredients needed to make a certain bread or the parts needed to create a car. For instance, in order to make a tuna sandwich, we need two slices of bread, 10 gr of tuna, 0.5 gr of butter, and 1 gr of mayo. Those ingredients are the BOM for a tuna sandwich.

Work Center

Work center is a unit where the activities (operations) carried out. It can be a machine/group of machine, a person/group of people, production  line. In a bakery, the work center could be the oven(s), the microwave(s), the stove(s), or the chef(s). In a car manufacturing company, the work center could be the assembly robot. The capacity, scheduling, and costing of machines or people are recorded in work center. For example, how long an oven can operate in a day, how many ovens can be used, and what cost should be calculated from this oven, all can be recorded in work center master data.

Routing

Routing contains the sequence of operations to be performed, as well as the work center to perform the operation. To put it simply, in routing, we explain the steps of how to make something. For example:

To make a tuna sandwich, what we should do is:

1. Spread butter on the bread
2. Put tuna on top of it
3. Add another slice of bread to cover the tuna
4. Put it in the oven for 5 minutes

Production Version

Production version is the combination between BOM and routing. It determines various production techniques to be performed in the production (what BOM and which routing). It is the complete recipe of how to make something. It contains the ingredients, the tools needed, and the steps of doing it.

All of the master data above are needed to execute production process as well as calculate the cost for this production process.

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Different Scraps and their effects in SAP PP

There are three types of scraps used in SAP PP.

1. Assembly Scrap
2. Component Scrap
3. Operation Scrap.

1. Assembly Scrap

During Production there will be some loss always due to various reasons and due to this we will get less output than the planned one…for example if planned to produce a qty of 100 KG we may get around 99.5 KG as the final output or yield..Now to get the actual output as the planned one we need to increase the planned qty by some percentage so that we will get the output as per the expectation.. For this we use Assembly Scrap…

Assembly scrap increases the order quantity of the header material and subsequently increases the order quantity for corresponding components. The dependent requirements of the material components are therefore increased correspondingly.

Setting:

You have to maintain the assembly scrap in the material master (MRP1 view) as a percentage in the Assembly scrap field for the assembly header material.

Flow:

Following is the BOM structure of header material with two components….

Maintain 5% as the assembly scrap in the MRP1 view in material master for the header material…

Create Process order for header material with order qty as 1 

system increases the order qty by 5% as shown below….

Now go to components overview… you can observe components qty’s are also increased by 5%

Now save the order.

2. Component Scrap 

Some times a particular component always consumed more during a production process than the planned one.  component scrap only applies to one component. Component scrap increases the dependent requirements quantity of the component.

Settings:

▣ You can enter values for calculating component scrap in the material master or the BOM in the BOM on the Item Detail Screen General Data (data block for quantity data). This component scrap is only relevant for the individual BOM.

▣ In the material master (view MRP 4) in the Component scrap field. This component scrap is relevant for all BOMs.

▣ The component scrap quantity maintained for a material component in the BOM has the higher priority.

Flow:

Following is the BOM structure of header material with two components….

Maintain 5% as component scrap in in the BOM item details for the component 200-210 as shown below…..

create process order for header material with order qty 1

Now go to component overview in the process order and you can observe that only qty of component 200-210 is increased by 5%

You can maintain the component scrap in material master MRP4 view of the component 200-210 as shown below….

3. Operation Scrap

During Production process after a particular operation you may get some loss. Now you need to adjust the qty, standard  values and other values of the subsequent operations. For this Operation scrap is used in production.

Settings: 

You can enter operation scrap (in %) in the routing and in the BOM.

The operation scrap entered in the routing refers to the activity quantity consumed, while the operation scrap entered in the BOM refers to the material quantity used. In this case, the net indicator must be turned on.

Flow:

Following is the routing structure of header material with three operations….

Maintain 10% as operation scrap in the operation details of the operation 1 as shown below….

Now create Production order for header material with order qty 100 KG

Now go to Operation overview…

Scroll to right…..you will be able to see operation qty of second operation and third operations are reduced by 10%…

Maintain the operation scrap as 5% in the BOM component 2160 and also activate indicator Net ID in the item details as shown below…

Now create production order for 100 KG for header material

Go to components overview and observe that component qty of 2160 is increased by 5%

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How to debug the programs triggered by RFC to be run in background

While debugging a program, you may have the situation below. A function module like MRP_KD_AUFTRAG_RFC in this example is triggered through RFC to be run in background, so it is impossible to debug into the function module by clicking F5 key (Single step) to check how the function module runs.

This is so-called transactional RFC and cannot debug through normal way. in this case, please go to the debugger menu below.

Select the filed below then continue by clicking F8 key to complete the transaction.

Then, go to transaction SM58 and run for your user and current date. The function module planned in background is stopped in that.

Please go to menu below, which makes you debug the function module.

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