TERP10 - Unit 6: Plan-to-Produce Processing

Which of the following can be created by processing MRP? (2 correct answers) A. Purchase order B. Dependent requirements C. Planned orders D. Planned independent requirements

B, C

Which of the following steps are performed after releasing an order? (2 correct answers) A. Order creation B. Material withdrawal C. Printing the documents

B, C

Which of the organizational levels listed below link warehouse management and inventory management? (3 correct answers) A. Storage type B. Warehouse C. Plant D. Storage location E. Storage area

B, C, D

PRODUCTION ORDER GOODS RECIPT (definition)

Represents the stock receipt of a product produced using a production order.

A physical movement of stock is a characteristic of a stock transfer posting. TRUE/FALSE

TRUE

In MRP, what kind of element is a sales order? (1 correct answer) A. Supply element B. Demand element

B

In the bill of material header, which field determines the amount of the finished product that the item categories refer to? (1 correct answer) A. Usage B. Base quantity C. Item category

B

Name the material master view that is responsible or relevant for integration with production. (1 correct answer) A. Cost planning B. Work Scheduling (production) C. Sales and Distribution D. MRP (planning)

B

Name the material master view that is responsible or relevant for integration with production. (1 correct answer) A. Cost planning B. Work scheduling C. Sales and Distribution D. MRP

B

What is the purpose of an activity type? (1 correct answer) A. To collect the costs incurred by the cost center. B. To allocate the costs of work performed by the cost center C. To schedule operations assigned to the work center D. To settle a production order

B

Which of the following master data is assigned to a work center? (1 correct answer) A. Material master B. Cost center C. Bill of Material

B

Which of the following about Demand Planning are correct? (2 correct answers) A. Planned Independent Requirements are created from Sales orders B. Customer Independent Requirements are created from Sales and Distribution. C. The Planning Strategy on the Material Master represents a procedure for planning a material D. Planned Materials can only be produced In-House

B, C

If a production order has the Created status, which of the following actions can be performed for the order? (1 correct answer) A. Print shop floor papers B. Post a goods issue C. Check material availability

C

In cost object controlling (COC), the goods receipt does which of the following? (1 correct answer) A. Credits the stock account B. Debits the cost center C. Credits the order D. Debits the order

C

Once production has been completed, there is a goods receipt posting. Which of the following does not happen as a result? (1 correct answer) A. System generates material documents, accounting documents, and controlling documents. B. The system updates the delivered quantity in the order. C. the system updates the moving average price in the material master D. The system credits the production order E. The controlling document can be used for various cost analysis purposes.

C

A transfer posting always involves a physical movement of goods. TRUE/FALSE

FALSE

Marking a standard cost estimate revaluates on-hand inventory. TRUE/FALSE

FALSE

Saving a cost estimate automatically updates the standard price in the material master. TRUE/FALSE

FALSE

The MRP list represents the most up-to-date version of the planning scenario. TRUE/FALSE

FALSE

Examples of Transfer postings? (2 correct answers) A. Stock-to-stock B. Plant-to-plant C. Consignment-to-warehouse D. Storage location-to-storage location

A, C

PRODUCTION ORDER COMPENTS

*Header - Document, Settlement rule, cost (planned and actual) - Operation sequence (standard or further) - Operations (work center, control key, standard values) Material components (mat'l number, qty, requirement date) PRT Trigger points (functions) Confirmations (quantities, times) - Capacity splits (single machine, single person)

The following is needed to price products...

- Material - BOM - Routing - Work Center

PRODUCT COST COMPONENTS

- Product Cost Planning: creates standard cost estimates. - Cost Object Controlling: collects actual costs incurred (by using cost objects such as production orders, sales orders, process orders, and product cost collectors) during the production of a product or a service - Actual costing & material ledger: provides the actual cost of each material at the end of the period.

ITEM CATEGORIES ON A BOM

- Stock item (stored in the warehouse and used in production) - Non-stock item (directly assigned to a manufacturing order, not through the warehouse) - Variable-size item - Document item

PRODUCT COSTING STEPS

1. Calculate standard cost estimate 2. Mark standard cost estimate (FI & CO docs created if there is material on hand) 3. Release standard cost estimate (updates the value of inventory)

PRODUCTION (Material) PLANNING MASTER DATA (PP)

1. MATERIAL TYPE: Views, Qty/value, INT/EXT procurement, INT/EXT numbering, Account Category Reference 2. BILL OF MATERIAL: Header (status, description, validity, lot size), Item (item category, description, quantity, control data, phantom, stock, non-stock, document, text, variable size) 3. ROUTING: Header (status, group/center, description, validity), Operation (control key, work center, description, time, activity type)

MATERIAL EXECUTION (ME) MASTER DATA

1. MATERIAL TYPE: Views, Qty/value, INT/EXT procurement, INT/EXT numbering, Account Category Reference 2. BILL OF MATERIAL: Header (status, description, validity, lot size), Item (item category, description, quantity, control data, phantom, stock, non-stock, document, text, variable size) 3. ROUTING: Header (status, group/center, description, validity), Operation (control key, work center, description, time, activity type) 4. WORK CENTER 5. PRTs

PRODUCTION ORDER GOODS RECEIPT INTEGRATION

1. Material document - describes the goods movement from a materials management (warehouse) perspective 2. Accounting document - describes the goods movement from a Financial Accounting (FI) perspective. 3. Controlling (CO) document records the credit posted to the production order. Movement type 101

SCOPE OF MRP PLANNING RUN (processing keys)

1. NEUPL: Regenerative planning...typically used when a plant starts up or when there's a problem. All MRP relevant materials in the plant are run through MRP 2. NETCH: Net change for total horizon - planning of all materials to which an MRP-relevant change has been made 3. NETPL: Net change planning in the planning horizon - Planning of all materials to which an MRP-relevant change has ben made within the planning horizon *The type of planning to be used is specified in the 'Processing Key' field on the initial screen.

PLAN TO PRODUCE PROCESS

1. PERFORM PLANNING - Create a product cost estimate Create a Sales and Operations Plan (SOP) Transfer to Demand Management 2. DETERMINE REQUIREMENTS - Process Material Requirements Planning (MRP) 3. PLAN PRODUCTION - Convert planned orders to production orders 4. PRODUCE MATERIALS - Release production order Stage material Record manufacturing activities Enter goods receipt 5. PERFORM PERIODIC PROCESSING - Calculate variances Settle order

PRODUCTION ORDER PROCESS

1. Planned order (order request) 2. Order creation 3. Availability check - material, capacity, PRTs 4. Machine commitment 5. Order release 6. Download to process level 7. Order printing - routing, material list, drawings... 8. Material Staging - if WM is active, material must be staged. 9. Goods issue/Material consumption planning - CO, FI, and Management 10. Actual production execution 11. Upload from process level 12. Confirmation - qty of goods, labor utilized (CO document) 13. WIP doc (periodic only) 14. Goods receipt - CO doc, FI doc, material doc, QM doc (inspection lot), WM (transfer requirement) 15. Variance calculation (periodic only) 16. Order settlement (periodic only) - CO doc, FI doc 17. Archive

MRP CONTROL PARAMETERS

1. Processing key (NEUPL, NETCH, NETPL) 2. Create purch req and scheduling agreement lines (relevant only for externally procured materials) 3. Create MRP list (based on parameters that are set...i.e.; only when certain exception messages are issued) 4. Planning mode (review the plan and either accept, adjust, or re-run)

PRODUCTION ORDER GOODS ISSUE INTEGRATION

1. Storage-location-specific update of the stock and consumption fields 2. Reduction of the reservation (for planned withdrawal) 3. update of costs for unplanned withdrawals 4. Determination of actual costs (valuation) and order update 5. Consumption update 6. Generation of material and accounting documents 7. Creation of material documents 8. Creation of an accounting document 9. Creation of controlling document 10 Printing of GI document

All manufacturing organizational elements exist within a _______________. A. Client B. Storage location C. Plant

A

For final production execution, the planned order is converted to a ______________. (1 correct answer) A. Manufacturing order B. Purchase order C. Sales order

A

Which activity is performed in a routing? (1 correct answer) A. Component assignment B. Capacity category definition C. Material withdrawal

A

WORK CENTERS AND COST CENTER MASTER DATA

A cost center, along with the activity types assigned to it, are assigned to a work center. The reason for this assignment is to ensure that any manufacturing activities performed at this work center are evaluated for product costing purposes.

STOCK TRANSFER (definition)

A physical movement of goods. *physical material movement *one-step and two-step procedures possible It includes: -storage location to storage location -plant to plant -company code to company code *it's advantageous to utilize a stock transport order for a stock transfer

A goods receipt is posted in the system. Which of the following documents are created? (2 correct answers) A. Material document B. Transfer posting document C. Accounting document D. Outbound delivery document

A, C

How does controlling integrate with production? (2 correct answers) A. A production order collects actual costs B. A cost center is assigned to a work center C. Cost center overhead represents a direct cost to a production order. D. Standard cost estimates determine actual costs for a manufacturing order.

A, B

What is the purpose of a work center? (2 correct answers) A. It is where an operation or activity is performed in a plant. B. it is where the quantity of an activity type is consumed by an operation. C. It is the basis for scheduling WBS elements D. It is the capacities consumed by WBS elements. E. It is the basis for product cost planning.

A, B

Which of the following are elements of a production order? (2 correct answers) A. Components list B. Operations C. Cost center D. Planned independent requirements

A, B

Which of the following control parameters for MRP are required when you start the planning run? (2 correct answers) A. Processing key B. Planning mode C. Requirements grouping

A, B

Which of the following statements describes the relationship between the different master data that are used in the plan to produce business process? (2 correct answers) A. Bill of material components are assigned to a routing operation B. A work center is assigned to a routing operation C. A material master is assigned to work center D. A bill of material is assigned to a work center

A, B

A plant is: (3 correct answers) A. Manufacturing facility B. Distribution Center C. Plant Maintenance Plant D. Inventory

A, B, C

Which of the following steps occur in production order processing? (3 correct answers) A. Order release B. Variance calculation C. Material staging D. Invoice generation

A, B, C

Which of the following are captured at the item level for a BOM? (3 correct answers) A. Item category B. Material C. Counter D. If the item has a BOM of it's own E. Base quantity

A, B, D

Which of the following are item categories for a BOM? (3 correct answers) A. Stock item B. Class item C. Flexible item D. Variable-size item E. Inventory item F. Third party item

A, B, D

Which of the following statements are true about a planned order? (3 correct answers) A. Used to plan in-house production of a material B. Contain the basic dates within which production is to take place. C. There may be no accounting documents, one accounting document, or several accounting documents created. D. Update of costs for unplanned withdrawals. E. Include the basic requirements for the components for production in the form of dependent requirements.

A, B, E

A goods issue for a production order is posted in the system. What are the effects of the goods issue? (2 correct answers) A. A controlling document is created B. On-hand inventory is increased C. Inventory reservations are decreased

A, C

Planned independent requirements directly lead to ___________________ when Material Requirement Planning (MRP) is carried out. (2 correct answers) A. Planned orders for in-house production B. Production orders for in-house production C. Dependent requirements for in-house production

A, C

What data is maintained in a work center? (2 correct answers) A. Capacity formulas B. Material components C. People assignments D. Labor rates

A, C

Which of the following are examples of transfer postings? (2 correct answers) A. Material-to-material B. Storage location-to-storage location C. Stock-to-stock D. Plant-to-plant

A, C

Which of the following are period-end closing activities for production orders? (2 correct answers) A. Order settlement B. Confirmations C. Variance calculation D. Goods issue

A, C

Which of the following items result in a debit to a production order? (2 correct answers) A. Material withdrawal B. Goods receipt C. Confirmation D. Variance posting

A, C

Which of the following represent different MRP types? (2 correct answers) A. Re-Order Point Planning (RPP) B. Production Planning (PP) C. Material Requirements Planning (MRP) D. Sales and Operations Planning (SOP)

A, C

Which functions of a production order can be automated? (3 correct answers) A. Order release B. Material staging C. Material Withdrawal Posting D. Goods Receipt E. Order Settlement

A, C, D

Which of the following statements about Work Centers are correct? (3 correct answers) A. A cost center can be assigned to a work center B. People, Positions, and Qualifications can be assigned to a work center on the Scheduling tab C. Formula keys are used to calculate cost, calculate execution time and calculate capacity requirements D. Work Centers are used to maintain resource related data.

A, C, D

Which of the following statements about Work Centers are correct? (3 correct answers) A. A cost center can be assigned to a work center B. People, positions, and qualifications can be assigned to a work center on the Scheduling tab C. Formula keys are used to calculate cost, calculate execution time and calculate capacity requirements D. Work centers are used to maintain resource related data.

A, C, D

Which of the following tasks are performed during the produce material step? (3 correct answers) A. Stage material B. Convert planned order to production order C. Enter goods receipt D. Release production order

A, C, D

What documents are created during goods issue for a production order? (3 correct answers) A. Material document B. Purchase requisition C. Material reservation D. Controlling document E. Financial Accounting Document

A, D, E

All of the following occur at production order confirmation except... (2 correct answers) A. Cost estimation to produce order B. Backflush of goods issue C. Automatic goods receipt D. HR data transfer E. Generation of material and accounting documents

A, E

Which of the following are elements of a Production Order? (3 correct answers) A. A production order must have at least two operations B. Material components, PRTs, and trigger points can be assigned to a Production Order C. Documents from the Document Management System can be linked to Production Orders. D. Only Actual costs can be tracked on a Production Order. E. The Production Order Status controls the allowed activities

B, C, E

Which of the following are examples of Stock Transfers? (2 correct answers) A. Quality inspection to Unrestricted Use movement B. Storage location to storage location movement C. Material to Material Movement (change the material number) D. Plant to Plant movement

B, D

Which of the following statement about Goods Movements are correct? (2 correct answers) A. A goods receipt decreases the warehouse stock B. Movement of inventory between plants is completed with a stock transfer. C. Transfer postings result in a physical move of inventory D. A goods issue decreases the warehouse stock

B, D

Which of the following statements are true regarding stock transfers? (2 correct answers) A. A two-step transfer, from plant to plant will result in the creation of only one material document B. A stock transport order can be used to complete a stock transfer C. After posting a one step stock transfer, the stock is shown as stock in transfer at the receiving location. D. A cross plant stock transfer can create a Financial Accounting document.

B, D

Which statements about goods receipts are correct? (2 correct answers) A. A goods receipt uses a transfer posting to put the goods into blocked stock B. the value of the stock is updated C. PO history is not updated D. Blocked stock is visible on the Stock Overview transaction

B, D

What is the purpose of routings in Manufacturing Execution? (1 correct answer) A. Details for planning your labor B. List of the components used in the manufacturing process C. Activities required and the sequence of steps to be performed. D. Operations or activity carried out within plant

C

Which is not a step carried out during MRP run? (1 correct answer) A. Checks demand - net requirements calculation B. Checks lot size C. Checks for WM requirements D. Scheduling (start date and finish date)

C

Which of the following represents a debit to the production order? (1 correct answer) A. The standard value of the goods receipt. B. The total value of purchase requisitions created as part of an MRP run. C. The confirmed quantity of an activity multiplied by its planned rate. D. A deficit in the target stock level of the product. E. Settlement of the production order.

C

Which of the following statements regarding a stock transfer is correct? A stock transfer consists of... (1 correct answer) A. ...a goods receipt from the issuing point and a goods receipt at the receiving point. B. ...a goods issue from the issuing point and a goods issue at the receiving point. C. ...a goods issue from the issuing point and a goods receipt at the receiving point D. ...a goods issue from the issuing point and a goods issue at the receiving point.

C

How would you describe the integration of the Vendor Master? (2 correct answers) A. Be directly used in production B. Groups of views for SD C. Groups of views for FI D. Be used to post directly in supplier or vendor accounting

C, D

What is the result of confirming a production order? (2 correct answers) A. Credit management will check the material availability B. Planned independent requirements are consumed C. Activities such as labor are posted to the production order. D. Newly manufactured product can be received into inventory.

C, D

What is the result of confirming a production order? (2 correct answers) A. Credit management will check the material availability B. Planned independent requirements are consumed C. Activities, such as labor, are posted to the production order D. Newly manufactured product can be received into inventory.

C, D

When a production order is released, manufacturing can begin and so the components can be staged. To do so, a goods issues against the production order needs to happen. Which of the steps below are part of what a goods issue performs? (4 correct answers) A. Production Resource/Tools (PRTs) are scheduled B. A settlement rule is created for the order. C. Storage-location-specific update of the stock and consumption fields D. Creation of material document and accounting (FI) document E. Creation of controlling document F. Reduction of the reservation (for planned withdrawal)

C, D, E, F

ACTIVITY TYPE (definition)

Classifies the activities performed within a company by one or several cost centers. Serve as tracing factors for costs of resources that are used and must be allocated. Uses a secondary cost element.

PLAN TO PRODUCE ORG LEVELS

Client Company code Plant Storage location

ROUTINGS (definition)

Contain the steps that are necessary for production and these steps are called operations. Routings include the sequence in which the operations occur, and the work centers at which the operations are to be executed.

BILL OF MATERIAL (definition)

Contains the assemblies, or components, that are to be included in the production of a material. used in MRP, production, procurement, and for product costing. They are single-level

In cost object controlling (COC), the confirmation does which of the following? (1 correct answer) A. Credits the stock account B. Debits the cost center C. Credits the order D. Debits the order

D

What status must a Production Order be at in order to complete Material Withdrawals? (1 correct answer) A. Created B. Material Availability Check C. Settlement Rule Created D. Released E. Printed

D

Net requirements calculation uses data from which modules? (2 correct answers) A. Human Resources B. Warehouse Management C. Quality management D. Material management E. Sales and Distribution

D, E

A production order in SAP ERP has a mapped order structure. Which of the following is not a part of that structure? (1 correct answer) A. Order Header B. Operation sequence C. Operations D. Capacity splits E. Variance calculation

E

NET REQUIREMENTS CALCULATION (definition)

Executed in the planning run to determine whether a material shortage exists for a certain material. In addition, stock and fixed receipts that currently exist (for example, purchase orders, production orders, fixed purchase requisitions, and planned orders) are compared with the safety stock and requirements. The result of this comparison is the quantity available for planning.

MAKE TO ORDER

Only considers customer independent requirements (CIR)

MAKE TO STOCK

Only considers planned independent requirements (PIR)

MAIN MODULES OF PLAN TO PRODUCE

Planning Product costing Inventory Management Manufacturing execution

MRP PROCESS

Planning can be done online or as background job. The types of MRP runs include: 1. Single-item planning/multi-level (planning a material BOM) 2. Single-item planning/single-level (planning a material) 3. Single-item planning/interactive (interactive single-level planning

WORK CENTER (definition)

Specifies where production ultimately takes place. It is a specific location in the plant. Each one is owned by only ONE cost center.

In a stock transfer there is always a physical movement of goods. TRUE/FALSE

TRUE

In releasing a production order, it is possible to release single operations, entire orders, and multiple orders simultaneously. TRUE/FALSE

TRUE

Stock transfers always involve the physical movement of goods. TRUE/FALSE

TRUE

The lot size field in the material master record controls the quantity to be produced. TRUE/FALSE

TRUE

Variance calculation is a period-end activity. TRUE/FALSE

TRUE

TRANSFER POSTING (definition)

The change in identity of stock. *It's a change to the stock type, material number or batch number. *Additional physical material movement possible It includes: -stock-to-stock -material-to-material -consignment-to-warehouse

PLANNED ORDER (description)

The true output of MRP

PRODUCTION ORDER CONFIRMATION

Used for the consumption of internal activities. 1. Automatic goods receipt 2. Backflush goods issue 3. Actual costs written to production order 4. Reduce capacity requirements 5. HR data transfer 6. Update statistical data (LIS, BW) 7. Order status, quantity, and actual costs * If we confirm at the order (header) level, we only confirm PLANNED labor, not actual. To confirm actual labor, use 'operations' to confirm.

PLANNED ORDERS (definition)

Used to plan in-house production of a material and contain the basic dates within which production is to take place, as well as basic requirements for the components for production in the form of dependent requirements. Converted to a production/manufacturing order for final production.

PERIOD END ACTIVITIES FOR PROD ORDERS

WIP Variance calculation *If the production order has not yet been fully delivered, the settlement will post WIP to the general ledger. if the production order is fully delivered, the settlement will post the manufacturing variances to the general ledger.