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Life Cycle of Process Order Management - SAP PP Implementation

Life Cycle of Process Order Management The life cycle of a process order consists of the following stages: Process Planning   Pr... thumbnail 1 summary

Life Cycle of Process Order Management

The life cycle of a process order consists of the following stages:
  • Process Planning
  •  Process order execution
  • Order closing

1.         Process Planning

It comprises all activities that are performed during the creation and the release of a process order. Important steps in process planning are:
§         Process order creation
§         Selection of Production version
§         Batch determination for raw materials/ semi-finished
§         Material Quantity Calculation for Active Ingredients
§         Process order release


2.         Process order creation

Process orders are generated against the master recipe/ production version and contain all the information specified for process planning. In SAP, the process orders could be created in the following ways:
§         Converting a planned order.
§         Manual/direct creation.
§         Copying from an existing process order.

All of the above three processes would require a production version from which the master data regarding the master recipe would be automatically copied. When a Process order is created the following actions are carried out: 
§         A Master Recipe is selected.
§         The bill of materials is exploded and the items in the bill of material are transferred to the order.
§         Reservations are generated for stock items. The reservation is a request that is sent to store so that components required for the production of a particular semi-finished or finished material could be staged/ arranged. The purpose of a reservation is to ensure that a material is available when required at the shop floor. Each material component of the order receives a separate item number within the reservation. (Reserved materials can be withdrawn from the warehouse for the order that has been released. On withdrawal, the values of the material components are updated as actual costs in the order). 
§         The planned costs for the order are generated.
§         The capacity requirements are generated for the resources.
§         System would schedule the order i.e. starting with the basic order dates; the system automatically schedules the process order at the time of order creation. In addition, it can later be rescheduled automatically or manually whenever changes relevant to scheduling have been made.
§         System would also perform an automatic availability check for the components and would generate exception messages in case of the material shortfall.
§         System would also perform an automatic availability check for the capacities and would generate exception messages in case of the capacity overloads/non-availability.
Saving Process order completes the order creation process. System would generate a process order number as soon as the production scheduler saves it. The status of the process order is automatically set as “CRTD” i.e. Created.

Process order creation via the conversion of planned order


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