C_TS422_2023 SAP Certified Associate - SAP S/4HANA Cloud Private Edition, Production Planning and Manufacturing Questions and Answers

In SAP S/4HANA repetitive manufacturing, aline hierarchy(transaction LDM1) organizes production lines for planning and execution:

A production line with more than one work center(A): A line hierarchy represents a complex production line comprising multiple work centers (defined in CR01/CR02) linked in a hierarchical structure. For example, a main line (top node) might include sub-lines or work centers (e.g., assembly, testing), allowing detailed capacity planning and quantity assignment in MF50 or PP/DS.

Alternative sequence in the routing(B) (CA21, Alternative Sequence) defines optional operation paths, not a line hierarchy.Parallel sequence in the routing(C) (Parallel Sequence) splits operations concurrently, unrelated to line hierarchy structure.Prioritized alternative work centers(D) is managed via production versions or PP/DS mode selection, not line hierarchies, which focus on physical line organization. This is per SAP’s REM line hierarchy definition.

In classic MRP within SAP S/4HANA, scheduling agreements can be leveraged to automatically generate schedule lines for external procurement when a material shortage occurs. To enable this, the scheduling agreement must be maintained in thesource listand marked asMRP-relevant(B). This is done in transaction ME01 (Maintain Source List), where the scheduling agreement number is entered, and the "MRP" indicator (field: Source List Usage in MRP) is set to "1" (Relevant for MRP). This ensures MRP recognizes the agreement as a valid supply source.

Additionally, on the initial screen of the MRP run (e.g., transaction MD01 or MD02), you mustset the creation indicator for delivery schedule lines(C) to "1" (Create Schedule Lines). This parameter (field: Create Purchase Reqs) instructs MRP to generate schedule lines directly against the scheduling agreement instead of purchase requisitions. Option A (purchase requisitions) would create requisitions instead of schedule lines, which is not the goal. Option D (quota arrangement) is an alternative sourcing method but not required for scheduling agreements in this scenario.

In SAP S/4HANA, acollective orderis a network of production orders where a top-level order (for a finished product) is directly linked to subordinate orders (for assemblies), created automatically via special procurement key 52 (material master, MRP 2 view). The advantages include:

To perform availability checks across the entire collective order(A): When a collective order is created (e.g., via CO01 with "Collective Order" indicator), the system performs a material availability check (configured in OPL8) across all levels of the order hierarchy. This ensures components are available for the entire structure before release, reducing partial shortages.

To post confirmations for the entire collective order(D): Confirmations (e.g., via CO11N or CO15) for the top-level order can automatically trigger goods movements (goods receipt for the finished product, goods issue for components) across all linked orders. This streamlines shop floor processing by consolidating confirmations.

To coordinate orders in the planning board(B) is not specific to collective orders—it’s a general PP/DS or capacity planning feature (e.g., DS Planning Board), not an inherent advantage.To show the flow of batches(C) is possible via batch tracing (e.g., MB56), but it’s not a unique benefit of collective orders, which focus on production linkage, not batch visibility. This aligns with SAP’s collective order documentation.

In SAP S/4HANA, order type-dependent parameters (configured in Customizing via Production > Shop Floor Control > Master Data > Define Order Type-Dependent Parameters, transaction OPL8) control key aspects of production order processing for a specific plant and order type. These settings affect:

Select master data(C): The parameters determine how master data (e.g., BOM, routing) is selected during order creation. For example, the "Production Version" field specifies whether a version is mandatory or optional, and the "BOM Application" influences which BOM is chosen (e.g., production-specific). This ensures the correct master data is pulled into the order.

Define integration with cost accounting(D): The parameters include settings like "Costing Variant" (Planned and Actual) and "Results Analysis Key," which dictate how costs are calculated and posted to the order. These integrate production orders with Controlling (CO), affecting cost object controlling processes.

Schedule production orders(A) is influenced by scheduling parameters (e.g., in OPKP), not directly by order type-dependent parameters, which focus on order creation and execution settings.Check material availability(B) is controlled by the "Availability Check" field in these parameters, but it’s a subset of broader order processing, not the primary process affected—master data and costing are more directly tied to the configuration. This is per SAP’s production order configuration documentation.

In an SAP S/4HANA Cloud Greenfield project,clean corefocuses on a standardized, extensible system with high-quality data. Key aspects for data quality include:

Efficiency(A): Clean core principles prioritize efficient processes and data structures, minimizing customizations that could degrade performance or complicate upgrades. Efficient data quality ensures streamlined operations (e.g., fast MRP runs) and leverages standard SAP functionalities effectively.

Stability(D): Maintaining a stable core with consistent, reliable data (e.g., master data integrity in MM03) prevents disruptions during updates or extensions. Stability ensures the system remains robust and predictable, a cornerstone of clean core in a Greenfield implementation.

Accuracy(B) is critical for data quality in general (e.g., correct BOM quantities), but clean core emphasizes systemic qualities over content accuracy, which is assumed.Timeliness(C) matters for operational data (e.g., stock updates), but it’s less tied to clean core’s structural focus. This is per SAP’s clean core guidelines.

In SAP S/4HANA Demand Management,planned independent requirements(PIRs) represent forecasted demand for finished products. Their consumption by other requirements (e.g., sales orders) depends on settings in the material master:

Requirements type(C): This is determined by the planning strategy and specifies the type of PIR (e.g., VSF for forecast-based planning). It is maintained in the material master (MRP 3 view) or derived from the planning strategy. The requirements type dictates how PIRs are consumed (e.g., by sales orders) and is visible in demand management (transaction MD61). For example, requirements type "LSF" (from strategy 40) allows consumption by sales orders.

Planning strategy(D): Defined in the material master (MRP 3 view, field: Strategy Group), the planning strategy (e.g., 40 - Planning with Final Assembly) controls whether and how PIRs are consumed. For instance, strategy 10 (Make-to-Stock) does not allow consumption, while strategy 40 reduces PIRs based on incoming sales orders within the consumption period.

Order type(A) relates to production or sales order processing, not PIR consumption logic.Requirements profile(B) is not a standard SAP term in this context and does not directly influence consumption (it may refer to custom settings, but it’s not part of SAP’s standard demand management). This is detailed in SAP’s official Demand Management documentation.

Forecasting in SAP S/4HANA’s demand planning cycle, managed via transaction MC87 or MD61, generates planned independent requirements (PIRs) based on historical data and external factors. The process includes:

One-off events(A): These are special occurrences (e.g., promotions, trade shows) that can be manually entered or factored into forecast models (e.g., using event-based forecasting in the forecast profile) to adjust demand predictions.

Market intelligence(D): This refers to external data or insights (e.g., market trends, competitor actions) that planners can incorporate into forecasting models, often manually or via integration with tools like SAP Integrated Business Planning (IBP).

Past sales order quantities(E): Historical sales data (from transaction MD73 or LIS) is a core input for statistical forecasting models (e.g., constant, trend, seasonal models), allowingthe system to predict future demand based on past consumption.

Past production planning quantities(B) are not typically used in demand forecasting, as they reflect supply rather than demand.Past quotation quantities(C) could influence sales forecasting in some scenarios but are not a standard input in SAP’s demand planning cycle, which focuses on confirmed sales orders. This aligns with SAP’s forecasting methodology in Demand Management.

In SAP S/4HANA, a production order (transaction CO01) requires a valid production version (material master, MRP 4 view). If none can be selected, possible reasons include:

The order lot size is NOT within the validity range of a production version(A): Each production version specifies a lot size range (e.g., 100-1000 units). If the order quantity (entered in CO01) falls outside this range, the version is invalid, and the system cannot select it.

All production versions for the material are locked(C): If production versions are locked (MRP 4 view, field: Lock indicator), they are excluded from planning and order creation, even if otherwise valid, preventing selection.

NO production lines assigned(B) is irrelevant—production versions link BOMs and routings, not production lines (a repetitive manufacturing concept).NO BOMs assigned(D) would invalidate a version, but the system checks BOM validity within the version, and this is typically caught during version creation (C223), not order creation. This is per SAP’s production version validation rules.

Material Requirements Planning (MRP) in SAP S/4HANA calculates net requirements to determine material shortages or surpluses by comparing the available stock and scheduled receipts against requirements. During this calculation, MRP considers existingproduction orders(A) because they represent firm commitments to produce materials, and their quantities directly influence the availability of components and finished goods. Similarly,planned orders (firmed)(B) are included as they are confirmed planning proposals that have been manually or automatically fixed, ensuring they are treated as reliable supply elements in the net requirement calculation.

Planned orders (unfirmed)(C) are not considered firm receipts because they are still tentative and subject to change during subsequent MRP runs, so they are excluded from the net calculation unless firmed.ATP (Available-to-Promise) quantities(D) are used in availability checks for sales orders, not directly in MRP’s net requirement calculation, which focuses on stock and scheduled receipts rather than promise-based quantities. This aligns with SAP’s MRP logic as outlined in the SAP S/4HANA Production Planning documentation, emphasizing firm supply elements.

Aphantom assemblyin SAP S/4HANA is a virtual component that is not physically stocked—its components are directly consumed in the higher-level assembly. To set it up:

Select a special procurement type inside the material master(A): In the material master (MRP 2 view, field: Special Procurement), set the value to "50" (Phantom Assembly). Thistells MRP and production to bypass stocking the phantom material and explode its BOM directly into the next level (e.g., in CO01 or MD02).

Define the special procurement type inside the material BOM (bill of material)(D): In the BOM (CS02), for the phantom component, set the "Special Procurement" field (Item Detail screen) to "50." This overrides the material master setting for that specific BOM usage, ensuring the phantom behavior applies only in that context.

Use a special item category(B) like "L" (Stock Item) or "N" (Non-Stock) in the BOM (CS01, Item Category) defines component handling but does not designate a phantom—phantom status comes from procurement type.Select a special MRP type(C) (MRP 1 view) controls planning (e.g., "PD" for MRP), not phantom behavior. This is per SAP’s phantom assembly configuration.

In SAP S/4HANA, MRP determines whether to createplanned orders(for in-house production) orpurchase requisitions(for external procurement) based on specific master data settings in the material master. Theprocurement type(A), maintained in the MRP 2 view (field: ProcurementType), is a key determinant. For example, procurement type "E" (In-house production) triggers planned orders, while "F" (External procurement) generates purchase requisitions, and "X" (Both) allows MRP to decide based on additional settings like quotas.

Thematerial type(B), defined during material creation and linked to configuration (Logistics - General > Material Master > Basic Settings > Define Material Types), also influences this decision indirectly. For instance, material types like "FERT" (Finished Goods) are typically produced in-house, favoring planned orders, while "ROH" (Raw Materials) are procured externally, favoring purchase requisitions.MRP type(C) controls whether MRP runs (e.g., "PD" for MRP planning), but it does not directly determine the order type.MRP group(D) groups materials for planning parameters but does not directly dictate planned orders versus purchase requisitions.

In SAP S/4HANA, awork center hierarchy(transaction CR21/CR22) organizes work centers for capacity planning and evaluation:

A group of alternative work centers providing a cumulative available capacity for production(B): A work center hierarchy groups multiple work centers (e.g., CR01-defined centers) into a tree structure (e.g., a top node with sub-nodes). The system aggregates their capacities (visible in CM01) into a cumulative total, allowing planners to evaluate or assign production across the group as a single capacity pool, often used in bottleneck analysis or reporting.

Hierarchy levels by priorities(A) isn’t correct—priorities are set in routings or PP/DS, not hierarchies, which focus on capacity aggregation.Work centers in a production line sequence(C) reflects routing (CA01) or REM line hierarchy (LDM1), not a work center hierarchy.Parallel sequence for splitting quantities(D) is a routing concept (Parallel Sequence), not a hierarchy function. This is per SAP’s capacity planning documentation.

Simple discontinuation in SAP S/4HANA (material master, MRP 4 view, fields: Discontinuation Indicator, Effective-Out Date, Follow-Up Material) replaces a discontinued component with a follow-up material when stock is depleted. If the available stock is zero and the discontinuation date is in the past:

Material requirements planning(C): MRP (MD01/MD02) is affected because it checks the discontinuation settings. When stock is zero and the effective-out date has passed, MRP stops generating requirements for the discontinued material and creates them for the follow-up material instead (visible in MD04). This ensures planning continuity with the replacement.

Backflushing(A) (e.g., during CO11N) uses existing stock or reservations, not directly impacted by discontinuation unless stock is unavailable—but it’s a downstream process.Kanban(B) relies on replenishment triggers, not discontinuation logic, though stock-outs could disrupt it indirectly.Production order release(D) (CO02) checks material availability, but discontinuation is handled in MRP, not at release. This is per SAP’s discontinuation process.

In SAP S/4HANA, a routing (transaction CA01/CA02) defines operation times for production, calculated using standard values and work center formulas. The time elements include:

Wait time(A): Defined in the routing (Operation Details, Standard Values), wait time is the duration an operation must wait after processing before moving to the next step (e.g., drying time). It’s part of interoperation times and affects scheduling.

Processing time(C): Also in the routing (Standard Values, e.g., Machine Time), this is the core time to perform the operation (e.g., machining), calculated via the work center’s processing formula (CR02, Capacity tab). It’s quantity-dependent and critical for lead time.

Setup time(E): Entered in the routing (Standard Values), setup time is the duration to prepare the work center (e.g., tool change), independent of quantity. It’s calculated using the setup formula in the work center and impacts total operation duration.

Float before production(B) is a scheduling margin in the material master (MRP 2 view) or production order, not an operation-specific time in the routing.Pick time(D) is not a standard routing term—it may relate to warehouse processes (e.g., WM), not production operations. This is per SAP’s routing structure.

In SAP S/4HANA, during the creation of planned orders or production orders, the system relies on specific master data to determine the production process, components, and operations. The system checks the following:

In the bill of material (BOM)(C): The BOM (maintained in transaction CS01/CS02) defines the components required for production. MRP explodes the BOM to generate dependent requirements for planned orders, and production orders inherit this structure. The BOM’s validity (e.g., date, lot size) and usage (e.g., production) are verified during order creation.

In the MRP controller(D): The MRP controller (material master, MRP 1 view, field: MRP Controller) influences master data selection indirectly through its configuration in Customizing (e.g., Production > Material Requirements Planning > Master Data > Define MRP Controllers). It can determine planning parameters and production versions, affecting order creation.

In the routing(E): The routing (maintained in transaction CA01/CA02) specifies the operations, sequence, and work centers for production. During order creation, the system selects the routing to define the production process, ensuring the correct operations are assigned to the order.

In the production version(A) is critical for linking BOMs and routings, but the system checks within the BOM and routing directly once the version is selected, not the version itself as a "check location."In the work centers(B) provides capacity and scheduling data, but the system does not check master data selection settings there—it uses the routing to reference work centers. This aligns with SAP’s production planning master data integration.

In SAP S/4HANA, planning strategies (material master, MRP 3 view, Strategy Group) determine how production aligns with demand. The scenario describes a pure make-to-stock (MTS) environment where goods are produced based on forecasts (planned independent requirements, PIRs) and held in stock, with excess customer orders not affecting the production program:

Make-to-stock production (10)(D): Strategy 10 uses PIRs (entered via MD61) to drive production, and finished goods are stocked (goods receipt via CO15). Sales orders (VA01) are fulfilled from stock, and excess demand beyond the forecast does not trigger additional production or consume PIRs—it’s handled separately (e.g., via backorder or rejection). Thisensures the production program remains stable, based solely on the forecast.

Assembly processing with production orders (82)(A) is a make-to-order (MTO) strategy tied to sales orders, not forecasts.Planning with final assembly (40)(B) allows sales orders to consume PIRs, potentially impacting production if demand exceeds the forecast.Planning without final assembly (50)(C) plans subassemblies based on PIRs, with final assembly triggered by sales orders, also affecting production. Strategy 10 meets the requirement per SAP’s MTS planning logic.

Thelow-level codein SAP S/4HANA (visible in MD04 or calculated during MRP) indicates the deepest level at which a material appears in any BOM across all products, starting from 000 (finished goods) downward. Its key features are:

To determine how costs are rolled up by product costing(B): In Product Costing (CO-PC), the low-level code ensures costs are calculated bottom-up, starting with the lowest-level components (e.g., raw materials) and rolling up through assemblies to the finished product (transaction CK11N). This guarantees accurate cost aggregation.

To determine the sequence in which materials are planned in MRP(C): During MRP (MD01/MD02), the system plans materials in ascending order of low-level codes (lowest first), ensuring dependent requirements for lower-level components are calculated before higher-level assemblies, avoiding planning gaps.

Priority of alternative components in ATP(A) is managed by BOM alternative item strategies (e.g., 100% check), not low-level codes.Use of sub-items in BOM(D) is defined by item categories (e.g., "R"), not influenced by low-level codes. This is per SAP’s planning and costing logic.

In SAP S/4HANA, the item category in a BOM (transaction CS01/CS02, field: Item Category) classifies components and determines their handling in production and procurement. Standard item categories include:

Variable-size item(A): Item category "R" (Variable-Size Item) is used for components with dimensions (e.g., sheets, pipes) where quantity is calculated based on size data (entered in the Variable-Size Item Data tab). It’s common in manufacturing for materials cut or sized during production.

Preliminary item(C): Item category "V" (Preliminary Item) is a placeholder for components not yet fully specified (e.g., during design phase). It allows BOM creation to proceed, with details added later, and is valid for planning purposes.

Work item(B) is not a standard BOM item category—"L" (Stock Item) or "N" (Non-Stock Item) might apply to work-related components, but "Work Item" isn’t a defined term.WBS item(D) (Work Breakdown Structure, category "W") relates to Project Systems (PS) BOMs, not standard production BOMs in PP, requiring PS integration. This is per SAP’s BOM item category definitions.

In SAP S/4HANA repetitive manufacturing,line loadinginvolves planning production quantities and capacities across production lines. Options include:

Run MRP with quota arrangement(B): MRP (MD01/MD02) with a quota arrangement (MEQ1, marked MRP-relevant) distributes production quantities across multiple production lines (production versions) based on predefined quotas (e.g., 60% Line A, 40% Line B). This plans quantities and implicitly considers capacity via the linked work centers, visible inMF50.

Run PP/DS heuristics for repetitive manufacturing(D): PP/DS heuristics (e.g., SAP_PP_002 in /SAPAPO/CDPSB0) plan both quantities (e.g., creating planned orders) and capacities (e.g., finite scheduling on production lines) for REM scenarios. This integrates detailed scheduling with line loading, optimizing resource use.

Assign planned orders manually in the planning table(A) (MF50) adjusts existing quantities but doesn’t inherently plan capacities—it’s a manual tweak.Run MRP with automatic selection of production version(C) selects one version (e.g., via alphanumeric order), planning quantities but not dynamically balancing capacities across lines. This is per SAP’s REM planning options.

In SAP S/4HANA PP/DS, restricting planners to specific resources for planning is achieved through:

Use a resource group(A): Resource groups (defined in /SAPAPO/RES_GROUP or Customizing) aggregate specific resources (e.g., work centers from CR02 flagged for PP/DS). Planners can be assigned to a resource group via authorization profiles (PFCG),limiting their planning scope in tools like the Planning Board (/SAPAPO/CDPS0) or Product View (/SAPAPO/RRP3) to only those resources, ensuring controlled access.

Use a planning group(B) isn’t a standard PP/DS term—MRP groups exist in classic MRP, but not for resource restriction in PP/DS.Use a propagation range(C) (in /SAPAPO/CDPSC11) defines the scope of planning changes (e.g., horizon), not resource access.Use a planning area(D) (e.g., in APO) organizes data but doesn’t restrict resource-specific planning—it’s more for data segmentation. Resource groups align with SAP’s PP/DS security model.

In SAP S/4HANA Advanced Planning (PP/DS - Production Planning and Detailed Scheduling), infinite planning assumes unlimited capacity availability during the initial planning phase. When the documentation states that "new orders are created through infinite planning," it means that MRP generates planned orders without checking the existing capacity load on work centers. Thus,MRP creates the capacity requirements without considering existing load on the work centers(B). This approach prioritizes material availability and scheduling over capacity constraints, leaving capacity leveling to a subsequent step (e.g., using heuristics or manual adjustments in PP/DS).

Option A is incorrect because infinite planning does not sequence capacity requirements after the last operation; it ignores capacity entirely. Option C is not accurate, as "earliest possible time" implies a finite scheduling logic, which contradicts infinite planning. Option D is also incorrect, as infinite planning does not consider available capacity for assignment. This is consistent with SAP’s PP/DS documentation, where infinite planning is a preliminary step before finite scheduling.