Chp 6 Questions

Which material master data are relevant in production?

Are contained in the bill of materials work centers, and product routings, production resource tools.

What are production resource tools?

Are movable resources that are shared among different work centers

Explain the structure of a bill of materials

BOM´S range from very simple to very complex, depending on the material. can be either single level or multiple level. In SAP ERP is defined as single level, which means that contains only one level in the hierarchy, whereas a multi-level BOM has more than one. SAP ERP can also construct multi-level BOM´s by nesting which means that different plants may use a different BOM to produce the same material, for example when some materials used in producing the material are different. Also you can use more than one raw material to finish the good.

Master data relevant to production

Bill of Materials Work Centers Product Routings Material master Production Resource Tools

Briefly discuss the key data in a work center master record

The key data is a strategic information that become useful to calculated issues related to wages, time, costs having as a result how operations will be confirmed once they are completed in the work center

Explain the financial impact of the steps in the production process

Good issues: materials or components are issued to the production order form storage Goods receipt: after production has been completed and confirmed, the materials produced are placed in finished goods inventory Periodic processing step: several steps related to production are completed periodically during the process. Includes overhead allocation, work-in-process determination, and order settlement.

What is the significance of item categories in a bill of materials

Helps to identify the type of material and influences how material is to be used in the BOM. Common item categories are item, nonstock item, variable-size item, text item, document item, class item, and intra material

Explain the relationship between the bills of materials, work centers, and product routings

In bill of materials you can identify the component that needs to produce material while work center is the place where you can produce material, and product routings is a list of operations that company must perform to produce a material specifying the sequence of it.

What is a product routing? What is it used for?

It is a list of operations that a company must perform to produce a material. Specifies the sequence in which these operations must be carried out, the work center where they are performed, and the time needed to complete them. Can also list additional resources, known as production resources tools, which company needs to complete operation.

What is the function of a work center in production

It is a resource that can be used for a variety of purposes and for multiples processes; a resource used to produce a material. We can also found data associated with the work center like basic data, scheduling, cost center, which can help to complete some tasks in the process

What is a stock/requirements list? What information does it provide?

One of the most important reports in production. Identifies all of the activities in the system that can potentially impact the quantity of material inventory. Provides detailed reports to monitor and manage the production process

Explain the relationship between operations and sequences

While the operations are the specific tasks that must be completed such as drilling, cutting, painting, inspection, and assembling, and different types of tasks list are associates with different processes. Sequences set how operations must be carried out, the work center where they are performed, and the time needed to complete them.

Explain the function of a bill of materials in the production process

identifies the components that are necessary to produce a material. It is a complete list of materials, raw materials and semi-finished goods, that are needed to produce a specified quantity of the material. But also can be referred as a formula or recipe in the case of industries such as chemicals, oil and gas, and beverage; it includes a list of ingredients needed to create a specified quantity of the product.

Briefly describe the structure of a production order

Companies use these data to plan, schedule, and execute the production of the specified material, includes the following data: Order header: includes basic data such as unique order number, the plant where the material is to produced, the person responsible for scheduling production, and the status order. Specific operations: needed to produce the material, along with data on the designated work center. Identifies the specific sequences for the operations. Capacity splits: used to determined how the work to be performed is distributed or split among the machines or people involved in producing material. Components: needed to produce the specified quantity of the material. Components are obtained from BOM. PTR´s: complete one or more operations are identified Trigger points: initiate some activity or function Costs: are associated with the appropriated accounts in the general ledger. As production is executed, the actual costs are also included as data in the production order along the preliminary costs estimates. These data are used in product costing which is a process in management accounting. Settlement rule: the costs accumulated in the production order must be settled. The actual costs incurred are allocated to costs objects. Document links: a production order may contain references to various documents. The production order includes links to the documents in the documents management system. Using it ensures that the most current versions of the documents are employed during production Confirmations: when the production order has been executed and the materials have been created, the materials actually produced are reordered in the production.

Briefly describe the steps in the production process in terms of triggers, data, tasks, and outcomes

Consists of eight steps Request production Authorize production Release production Raw materials and semifinished good issue Production Production confirmation Finished goods receipt Production order completion

What are the different production order statuses? What is the significance of the order status?

Created (CRTD)-When the order is initially saved the status is created As the order is executed, the order status is changed to reflect its current state Partially Released(PREL)-order status is partially released Released (REL) Partially Confirmed(PCNF) Confirmed(CNF) Partially Delivered(PDLV) Delivered(DLV) The status is significant because it determines which steps in the process can be completed.

What are the different options for production order confirmations?

Data: User input: order number, quantity, activities, duration/date, work center, personnel, variance Production order: planned values, operations, control keys Tasks: can be reordered for the entire order or for specific operations or sub-operations. Time event, time ticket, collective and fast entry, milestone, progress confirmation