Review Questions for PP
1. Master Data
Organizational Structures
· What are the various organizational structures in the R/3 System?
· Which R/3 organizational structures are used primarily for PP?
· What is the relation between controlling area, company code, valuation area, plant and storage location
Material Master
· What is the purpose of different material master views?
· Which views are available?
· Which views are used primarily for PP?
· What is the relationship between material master views and individual organizational structures?
· How does the industry sector influence the material master maintenance?
· How does the material type influence the material master maintenance?
· What is the difference between external and internal number assignment and how is it set up in Customizing?
· Which other factors can influence the selection of fields in the material master?
· How can MRP profile and forecast profile be used to optimize material master maintenance?
· How can a material master be reorganized (deleted/archived)?
· Which units of measure can affect processing in the material master (base unit of measure, production unit, order unit, etc.)?
· What is the material status used for and on which levels could it be maintained?
· Review the usage of the following settings?
- MRP group
- MRP type
- Reorder point
- Planning time fence
- MRP controller
- Lot size
- Procurement type
- Special procurement type
- Production storage location
- Backflush flag
- Stock determination group
- Bulk material
- Scheduling margin key
- Safety stock
- Strategy group
- Consumption mode and consumption period
- Availability checking group
- Alternative selection flag
- Dependent requirement flag for individual and collective requirements
- Production scheduler
- Production scheduling profile
- Underdelivery/overdelivery tolerance
- In-house production time (lot size dependent/independent)
- Valuation class
- Price control indicator
- Moving average price/standard price
Bills of Material
· What is determined by BOM usage?
· What technical types of BOM are available?
· Can the technical type of a BOM be changed?
· During which processes will BOM usage and status be considered?
· When would it be useful to make use of a Group BOM?
· What is meant by area of validity and effectivity of a BOM?
· Which item categories are available and what are their specifications?
· What is a sub-item?
· Under which circumstances could a BOM be recursive and what the usage of the recursive indicator?
· What is the usage of the following BOM settings?
- Explosion type
- Relevant to production
- Relevant to costing
- Material provision indicator
- Bulk material
- Production storage location
Work Centers
· What is a work center category?
· What data can be maintained on the various views (basic, default, capacity, scheduling, costing, etc.)?
· What is the purpose of a standard value key?
· What role does the operation control key play?
What does referencing mean?
· Why to use a work center hierarchy?
What is a pooled capacity?
· Analyze the usage of the following fields?
- Backflush indicator
- Capacity category
- Formulas for determining capacity requirements
- Rate of capacity utilization
- Relevant to finite scheduling indicator
- Overload
- Formulas for scheduling
- Location group (move time matrix)
- Queue times (normal and minimum)
- Cost center
- Activity types
- Formulas for costing
Routings
· What does a routing define?
· How is a routing structured?
· What task list types are available in the R/3 System?
· What is a routing group and group counter?
· What is a routing sequence, and what types of sequence are available?
· What could be reasons to use sequences?
· What are the various options to assign materials to routings?
· Under which conditions would it make sense to assign components to operations?
· What is a reference operation set?
· How could the lotsize-dependend inhouse production time be calculated and updated into the material master?
Production Resources/Tools
· What types of PRT are available?
· What is the relationship between PRTs and a routing/operation?
Engineering Change Management
· What are the objectives of Engineering Change Management?
· What is the significance of changes with a history?
· Which PP objects can be managed using Engineering Change Management?
· What is the purpose of an engineering change request/order?
· How is a change master record structured?
· What is a revision level compared to engineering change master?
Other Issues
· Which scheduling options are available, and how do they differ from each other?
· Which time components are taken into account during scheduling?
· How are basic order dates determined?
· How are the scheduled dates determined?
· Which scheduling types are available in lead time scheduling?
· What role do reduction measures play in scheduling?
· What types of scrap can be maintained in PP basic data and how would they be considered during MRP repectively scheduling?
· What is external processing, and what conditions must be fulfilled before external processing can take place?
· What are co-products?
2. Production Planning
General Issues
· What are the various planning levels available in R/3 PP?
· What are the dependencies between Sales and Operations Planning, Demand Management, Long-Term-Planning and Material Requirements Planning?
Sales and Operations Planning
· What is the purpose of Sales and Operations Planning?
· What is the structure of product groups and how could they be used in SOP/DM/LTP/MRP?
· What is the purpose of proportion factors and aggregation factors within product groups?
· Which planning methods are available in SOP?
· Which sources are available as input data for SOP?
· Which options are available for creating a sales plan in SOP?
· Which options are available for creating an operations plan in SOP?
· What is ‘disaggregation’?
· How could the result of SOP be passed on to different planning tools within the PP planning environment?
Demand Management
· What is the purpose of Demand Management?
· At which points is Demand Management integrated with Sales and Distribution?
· Explain the main strategies in Make-to-Stock as well as in Make-to-Order planning logic. Pay attention to master data settings.
· What does consumption respectively reduction mean in the context of planning strategies?
· What role does the individual/collective requirements indicator in the material master have during make-to-order production?
· What is a stocking level, and how can it be influenced?
· Which types of availability check are available (ATP and check against planning) and what are the characteristics of these checks?
· Explain the link between MRP group, strategy group, strategy and requirement class.
· What settings could be made in requirements classes (on PP as well as on SD side)?
· Explain the purpose of version management in Demand Management?
Master Production Scheduling
· Under which circumstances would you recommend the usage of MPS?
· Compare the functionality of MPS with MRP?
· What is meant by the ‘firming’ of procurement proposals, and how can this effect be achieved?
· What is a planning time fence, and where is it defined?
· What is a manual firming date, and where is it defined?
· How can a planned order be ‘firmed’, and which firming indicators are available in a planned order?
Material Requirements Planning
· What is the purpose of MRP and how does it fit into the PP planning environment?
· How would you organize MRP runs? Discuss the different options
- MRP for a plant – online
- MRP for a plant – in background
- MRP for a material (individual planning) - online
· Which planning types are available (NEUPL, NETCH, NETPL)?
· Which planning parameters are to be set in the application itself?
· What is the function of the planning file?
· What is meant by single-level planning, multi-level planning?
· What is meant by interactive MRP?
· What are the characteristics of an MRP scenario that is performed in simulation mode?
· What is meant by low-level code and how is it considered in MRP?
· What is a net requirements calculation?
· Which buffers can be taken into account for the net requirements calculation in MRP (quantity buffer: safety stock, time buffer: safety time)?
· What does lot-size calculation entail?
· Which lot-sizing procedures are available in the R/3 System (static, periodic and optimizing procedures)? What are the characteristics of these lot-sizing procedures?
· How does the procurement type defined in the material master affect MRP?
· What is backward scheduling? What are the characteristics of backward scheduling?
· What is the difference between basic scheduling and lead time scheduling?
· How are the order due dates determined in basic scheduling?
· How are the order due dates determined in lead time scheduling?
· How does the in-house production time defined in the material master affect scheduling?
· How does the scheduling margin key affect scheduling?
· How are BOMs selected in MRP? Which criteria are taken into account during BOM selection?
· What is a ‘BOM selection ID’?
· How are alternative BOMs selected?
· What is a production version?
· How are routings selected in MRP? Which criteria are taken into account during routing selection?
· What is an MRP list? What is a stock/requirements list? How are these lists structured? What are the differences between these lists?
· What is the function of exception messages?
· What are planned orders?
· What is meant by the individual/collective conversion of planned orders?
· What is meant by “days’ supply” and “receipt days’ supply”?
· How can component discontinuation be managed in MRP?
3. Production Order Processing
General Issues
· What are the characteristics of work-to-order production?
· What is defined in a production order?
· What is a document type, an order category and an order type?
· What are the various elements that a production order contains?
· Which functions are executed when an order is created?
· What are the various options available for creating an order?
· Describe the system logic during routing selection?
· Describe the system logic during BOM selection?
· At which point in time are reservations generated and what information does it contain?
· What can be achieved by performing the “Read master data” function?
· How could routing sequences be considered during production order creation?
· Describe the conversion of planned orders into production orders with focus on scheduling aspects?
Order Release
· What happens when an order is released?
· Which operations are made possible and which are prevented when an order is released?
· What is meant by status management?
· What are business transactions?
· What are the differences between system status and user status?
· At which points in time can availability checks be performed? Which settings can be made, and which must be made? On which objects can the availability check be run?
· What is meant by machine commitment?
· What is meant by midpoint scheduling?
Printing
· Which shop floor papers can be printed?
· Which print modes are available (online, update, background)?
· What does “reprinting” mean?
· Which conditions must be fulfilled before order documents can be printed?
· Which conditions must an operation fulfill before shop floor papers (and in particular confirmation slips and time tickets) can be printed?
Goods Issue
· Which control indicators influence the behavior of the components in the production order (bulk material, backflush, phantom assembly, etc.)?
· What is meant by picking?
· What is meant by stock determination? Which settings have to be made for stock determination during production order processing?
· What is a goods issue posting?
· How can goods issues be entered (reference to order, reference to reservation, unplanned, etc.)?
· What is the purpose of movement types?
· What are the effects of a goods issue posting from an integrational point of view (MM, FI, CO)?
· What is meant by the backflushing of components and how can this be achieved?
Confirmation
· Which conditions must be fulfilled before confirmations can be entered?
· What is a confirmation?
· Which functions are linked to confirmations?
· Which confirmation procedures are available?
· What data can be entered during confirmations?
· What is a milestone confirmation?
· What is an unplanned milestone?
· What identifies a progress confirmation?
· What role does the control key defined in the operation play during confirmation?
· Is it possible to link a confirmation with a goods movement posting?
· What is a goods receipt?
· What are the effects of a goods receipt posting?
· What is the relevancy of the “delivery completed” indicator?
· What is the function of overdelivery/underdelivery tolerance in the material master play?
Order Settlement / Archiving and Deleting
· What is meant by order settlement?
· What causes a production order to be debited/credited?
· What is the difference between prelimenary costing and actual costing?
· Which are the usual steps during order settlement?
· What means variance calculation?
· How is an order settled if the header material is a standard price material?
· At which points in time can an order be settled?
· Which conditions must be fulfilled before an order can be archived?
· How are orders archived/deleted?
· What is meant by “residence times”?
Order Information Systems
· Which information systems can be used for order management?
· What are the characteristics of the order information system?
· What are variable object overviews?
· What are the special characteristics of a (multi-level) order report?
· What is the difference between the order information system and the Shop Floor Information System?
· Which functions are available from the order progress report?
Automation Options
· What options are available for automating the processing of orders?
· What role does the production scheduling profile play?
· Describe the most lean production order and the necessary settings to achieve it?
· Which functions could be executed in the mass processing?
Collective Orders
· What are the characteristics of collective orders?
· How can collective orders be created? Which conditions must be fulfilled?
· What are the advantages of working with collective orders?
· Which functions can be performed on collective orders?
· How is scheduling for a complete collective order done?
· What happens if a date/quantity for an order is changed within the collective order?
4. Product Cost Planning
General Issues
· What is a cost element (primary/secondary)?
· What is a cost component?
· What is a cost component split?
· Explain the Costing Variant and the main settings in customizing.
· What is a costing type?
· What settings can be done in a valuation variant?
· How is a costing sheet structured?
Base unit costing
· Describe base unit costing
· Which master data are required for base unit costing?
· How can results of BUC be used in further calculations?
Cost estimation without quatity structure
· What is meant by quantity structure?
· Describe costing w/o quantity structure
· Which master data are required for that costing logic?
Cost estimation with quantity structure
· Describe cost estimation with quatity structure
· How can the quantity structure be determined?
· What is activity based costing?
· How could results from standard cost estimation be updated into the material master?
· What happens if stock is on hand during that price update?
5. Repetitive Manufacturing
General Issues
· What are the differences between discrete manufacturing and repetitive manufacturing?
· What are the characteristics of make-to-stock repetitive manufacturing and make-to-order repetitive manufacturing?
Master Data for Make-To-Stock Repetitive Manufacturing
· What master data are necessary in repetitive manufacturing (material master, bill of material, production line, routing)?
· Describe the the following material master data:
- Repetitive manufacturing indicator?
- Repetitive manufacturing profile?
- Production versions?
· Which object is used to collect the material costs and production activities?
· What are the various options available for establishing a link between the cost collector and the production version of a material? What role doe the repetitive manufacturing profile play here?
Planning Make-To-Stock Repetitive Manufacturing
· What is the planning table in repetitive manufacturing? What functions can be executed from here?
Material Provision
· Describe the usage of pull list and stock determination as one of its function.
· Which other ways are available to make sure that sufficient components are provided to the shop floor?
Backflush
· What does backflush mean in a repetitive manufacturing context?
· Explain the functions of final backflush.
· How can production activities be entered in the system?
· What is meant by post processing list?
· What are the advantages and disadvantages of negative stock?
· What does the reporting point backflush procedure entail?
Evaluations
· Which evaluations are available?
· What is a reporting point overview?
6. Logistics Information System
Data Warehouse
· What is the concept behind the Data Warehouse?
· Which individual information systems does the SAP Logistics Information System comprise?
· What data are evaluated by the information systems?
· What are info structures? What are the characteristics of info structures?
· Is there any relationship between system transaction data and the data in the info structures?
· Which reporting options are available in the SAP Information System?
· What is the difference between evaluations in LIS and evaluations on system transaction data in the PP component?
Standard Analyses
· What are standard analyses?
· Which navigation options are available in standard analyses?
· Which options in standard analyses can be used to influence the way in which data is presented?
· Which analysis functions are available in standard analyses (ABC analysis, comparisons, classification, etc.)?
Early Warning System
· What is an “early warning system”?
· What are the various applications for the early warning system?
· How can the early warning system be used in standard analyses?
· What is an exception analysis?
· Which options are available for defining that an analysis should be performed at regular intervals?
· Which types of analysis are available in the early warning system (threshold value analysis, trend analysis, planned/actual comparison)?
Flexible Analyses
· What are flexible analyses? What is the difference between flexible analyses and standard analyses?
· What are evaluation structures? What are evaluations?