Typical Production cycle in Process Industry

By R.Balaji, Infosys Technologies

The below production cycle explains the basic business flow in “Process Industry”. The flow is generally focusing only on Production and Quality Management

Simple Production Cycle:

Consider all Raw materials are available in plant and production process yet to start, the following stages are to be followed

1. Create Process Order

Here we are creating a process order based on the capacity of the equipments and resource availability

2.   Release the Process order

Once Process order created, it has to be released for production, means system will check the scheduling, material availability, capacity planning, etc., and then release process takes place

3.      Goods issue from the Stores

Once PO got released, goods issue against the process order will takes place

4.      Start processing

Product process against the PO will start

5.      Confirmation Process

After production, the final out put confirmation from the process will be entered

6.      Goods Receipt Process

Goods receipt process plays a major role in any business here we have to do 101 movement type and do the postings. In goods issue process they will issue the goods against PO in 261 movement type.

7.      Quality Approval and Release

Once GR from the production was made, the material will come to Quality control for approval. Here QC person will check the material and they will do the result recording and usage decision

8.      Stock will appear in Unrestricted use for SALE /  Further Process

Once usage decision was made the material will automatically moved into unrestricted use. The FG is ready for sale

By keeping above all points in mind, the following masters and transactions are required to proceed  

S. No

Master

Trans-action

T-code

Description

Where has to be used

1

 

MM01

Create Material

Used for creating Recipe and further tracking

2

 

CRC1

Create Resource

Machine / set of Machines used for making the product

3

 

C201

Create Recipe

Here we are calling resource and materials required to make the finished product

4

 

QS21

Create MIC

List of specifications to be checked for that concerned finished goods

5

 

QP01

Create Quality Plan

Creating Quality Plan

6

 

COR1

Create Process Order

Initiating Production Process by creating Process Order

7

 

MIGO with 261 movement

Goods Issue Process

Goods issue to Manufacturing unit

8

 

CORK

Confirmation Process

Production Output confirmation Process

9

 

QA32

Quality Approval and Usage Decision

QC will approve and release for further process

Step by Step Execution Process:

Scenario Explanation:

REQUIREMENTS:

For a leading Process Manufacturing Company ABC, they are selling the product “FG 1”, the raw materials and resource requirements are listed below

Raw Materials required for making 50kg of Finished Product, FG 1 are

S.No

Material Code  / Material Type

Material Description

Quantity required

Unit of Measurement

1

RM l 1 / ROH

Raw Material 1

80

Kg

2

RM 2 /ROH

Raw Material 2

20

Kg

3

BP  1 / FERT

Byproduct

60

L

Resources required for making 50kg of Finished Product FG1

S.No

Resource Code

Resource Description

Capacity

1

CRC-001

Reactor

2KL

2

CRC-002

Vessel

4KL

List of MASTERS required for addressing the above scenario  

1.      Create Materials using MM01 transactions in the following way:

In this screen select “select views” button and extend the following fields

We have selected basic information entries field. Fill the information and finally select the General plant / storage data and give plant as 1100 and storage as 0001 in case of Raw material.

The same procedure has to be repeated for finished goods and Co-Products, in plant storage data we have to give Plant 1100 and storage 0004.

2.      Create   Resource master using CRC 1 Transactio

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