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

A material availability check can be triggered automatically for a production order by the following methods:

By mass processing: You can use the mass processing function to execute material availability checks for multiple production orders at once. You can use the Manage Production Orders app or the transaction COHV to perform mass processing. You can define the selection criteria and the scope of check for the orders to be checked. The system updates the availability status and the committed quantities for the checked orders.

By order release: You can configure the system to trigger a material availability check automatically when a production order is released. You can use the Customizing activity Define Checking Control to define the checking rule and the scope of check for the order release. The system updates the availability status and the committed quantities for the released order. References: Executing Material Availability Checks; [SAP S/4HANA Production Planning and Manufacturing Certification Guide], page 83.

Backward scheduling is a method of determining the order dates for components from dependent requirements by starting from the requirement date of the finished product and working backwards through the production structure. Backward scheduling considers the following time elements:

Operation duration: This is the time required to perform an operation on a resource, such as a work center or a machine. Operation duration is influenced by various factors, such as the quantity, the lot size, the setup time, the processing time, the teardown time, and the operation scrap. Operation duration is subtracted from the requirement date of the finished product to determine the start date of the operation.

In-house production time: This is the time required to produce a material in-house, from the start of the first operation to the end of the last operation. In-house production time is influenced by various factors, such as the routing, the work center, the production version, and the scheduling margin key. In-house production time is subtracted from the start date of the first operation to determine the order start date of the material.

Backward scheduling does not consider the following time elements:

Total replenishment lead time: This is the time required to procure a material externally, from the creation of the purchase requisition to the receipt of the goods. Total replenishment lead time is influenced by various factors, such as the planned delivery time, the goods receipt processing time, the release time, and the scheduling margin key. Total replenishment lead time is used in forward scheduling, not backward scheduling, to determine the order dates for externally procured materials.

Planned delivery time: This is the time required to deliver a material from the vendor to the receiving plant. Planned delivery time is maintained in the purchasing info record or the material master record. Planned delivery time is a component of the total replenishment lead time, which is used in forward scheduling, not backward scheduling, to determine the order dates for externally procured materials. References: Backward Scheduling | SAP Help Portal, Scheduling | SAP Help Portal, SAP S/4HANA Production Planning and Manufacturing Certification Guide, page 77-78.

A production planning run in Advanced Planning (PP/DS) is a process that optimizes the supply and demand situation for a set of materials and locations within a given planning horizon. The possible results of a production planning run are:

Planned Order: A planned order is a proposal for internal production or external procurement of a material. A planned order can be converted into a production order or a purchase order, depending on the source of supply. A planned order can also be firmed, which means that it is not changed or deleted by subsequent planning runs.

Production Order: A production order is a document that defines the operations, materials, resources, and costs required to produce a material. A production order is created from a planned order or directly by the user. A production order can be released, confirmed, and settled as part of the production process. References: [SAP S/4HANA Production Planning and Manufacturing Certification Guide], page 181; [SAP Help Portal: Production Planning Run].

Increase the capacity supply in a time-phased interval: You can use the capacity planning table or the capacity planning board to increase the available capacity of a resource by changing the shift sequence, the shift duration, or the number of individual capacities. You can also use the capacity leveling function to distribute the capacity requirements over a longer time horizon. This way, you can avoid capacity overloads and create a balanced capacity load.

Determine a time period with available capacity on the planning board: You can use the planning board to visualize the capacity load and the capacity availability of a resource in a graphical Gantt chart. You can use the filter and zoom functions to focus on a specific time period and resource. You can also use the capacity evaluation function to display the capacity situation in a tabular or graphical form. This way, you can identify the time periods with available capacity and plan the operations accordingly.

Form optimum sequence to reduce setup times: You can use the setup matrix or the setup group key to define the setup times and the setup categories for a resource. You can also use the setup optimization function to determine the optimum sequence of operations that minimizes the total setup time. This way, you can reduce the capacity consumptionand increase the throughput of the resource. References: Identifying the Basic Principles and Tools of Capacity Planning; SAP Help Portal; [SAP S/4HANA Production Planning and Manufacturing Certification Guide], page 82.

To support a GMP-compliant production process, you can use the following features in SAP S/4HANA:

Digital signature: This allows you to electronically sign documents and transactions that are relevant for GMP compliance, such as production orders, process orders, batch records, and quality inspections. Digital signatures ensure the authenticity, integrity, and non-repudiation of the documents and transactions12.

Batch record: This is a document that records the entire production process of a batch, including the materials, resources, operations, quality data, and signatures involved. Batch records provide traceability and documentation for GMP compliance3 .

Recipe approval: This is a process that ensures that only approved recipes can be used for production. Recipes are approved by authorized users who sign them digitally. Recipe approval prevents unauthorized changes and ensures consistency and quality of the products .

References:

1: SAP Help Portal: Digital Signature

2: SAP S/4HANA Production Planning and Manufacturing Certification Guide, Chapter 8: Product Compliance

3: SAP Help Portal: Batch Record

: SAP S/4HANA Production Planning and Manufacturing Certification Guide, Chapter 8: Product Compliance

: SAP Help Portal: Recipe Approval

: SAP S/4HANA Production Planning and Manufacturing Certification Guide, Chapter 7: Process Orders

A reporting point confirmation is a function that allows you to backflush the material components and activities that have been consumed and performed at a specific operation in a repetitive manufacturing process. It also reduces the dependent requirements for the planned orders. You can use reporting point confirmation for the following purposes:

To determine the work in progress (WIP) along the production line, by posting the quantity that is on the production line at each reporting point. This helps you to calculate the volume and value of unfinished products.

To provide timely updates of inventory management for the staged components, by recording the withdrawal of components at a time that is close to the time of the operation in which they are used. This helps you to avoid discrepancies between the actual and planned consumption of materials. References: Reporting Point Confirmation, Repetitive Manufacturing Confirmation

 A line hierarchy in repetitive manufacturing represents the structure of a production line that consists of multiple work centers. A line hierarchy is a master data object that defines the sequence and the relationship of the work centers that are involved in producing a material. A line hierarchy can be split into different levels, such as line segments, processing stations, or takt areas, to reflect the complexity and the variability of the production line. A line hierarchy can be used for planning and scheduling operations, controlling material flow, and monitoring production performance12.

The other options are not correct for the following reasons:

A production line with prioritized work centers (B): This is not correct. A line hierarchy does not define the priority of the work centers, but the order and the dependency of the work centers. The priority of the work centers can be determined by other factors, such as the capacity availability, the production rate, or the scheduling parameters.

A production line with a parallel sequence in the routing ©: This is not correct. A line hierarchy does not represent the parallel sequence in the routing, but the linear sequenceof the work centers. A parallel sequence in the routing means that two or more operations can be performed simultaneously on different work centers for the same material. A parallel sequence in the routing can be modeled by using alternative sequences or parallel sequences in the line hierarchy3.

A production line with an alternative sequence in the routing (D): This is not correct. A line hierarchy does not represent the alternative sequence in the routing, but the main sequence of the work centers. An alternative sequence in the routing means that there are different options for performing an operation on different work centers for the same material. An alternative sequence in the routing can be modeled by using alternative sequences or parallel sequences in the line hierarchy3.

References:https://help.sap.com/docs/SAP_S4HANA_ON-PREMISE/48b24fbadbee4e0b9dae0e2b72762e68/db8151ba8ca14106bf037a1546cde6a9.html

https://help.sap.com/docs/SAP_S4HANA_ON-PREMISE/f899ce30af9044299d573ea30b533f1c/9231f9504a62eb5ee10000000a44538d.html

You can model goods receipt processing time in detailed scheduling by using one or more of the following options:

Model a handling resource in the location master: A handling resource is a special type of resource that represents the capacity required for goods movements within a location, such as loading, unloading, or staging. You can assign a handling resource to a location and define its availability and utilization. You can also specify the handling time per unit of material for each handling resource. The system will then calculate the goods receipt processing time based on the handling time and the quantity of the material.

Model a transportation lane and carrier selection in the location master: A transportation lane is a master data object that defines the relationship between two locations in terms of transportation modes, means of transport, transit times, and costs. You can assign a transportation lane to a location and define the transportation mode, such as truck, rail, or air. You can also specify the carrier selection, which is a rule that determines the preferred carrier for each transportation mode. The system will then calculate the goods receipt processing time based on the transit time and the carrier selection.

Model a goods receipt time in the material master: A goods receipt time is a parameter that defines the time required to post the goods receipt for a material after it arrives at thelocation. You can specify the goods receipt time in the material master record for each material and location combination. The system will then add the goods receipt time to the goods receipt processing time.

You cannot model goods receipt processing time in detailed scheduling by using the following options:

Model a separate resource in the production data structure: A resource is a master data object that represents the capacity required for production activities, such as machines, labor, or tools. You can assign a resource to a production data structure, such as a bill of material, a routing, or a production version. However, a resource cannot be used to model goods receipt processing time, as it is not related to goods movements.

Model a separate inbound resource in the location master: An inbound resource is a parameter that defines the maximum number of inbound deliveries that can be processed at a location at the same time. You can specify the inbound resource in the location master record for each location. However, an inbound resource cannot be used to model goods receipt processing time, as it is only a constraint for the number of deliveries, not the duration of the processing.

References: [SAP S/4HANA Production Planning and Manufacturing Certification Guide], pages 103-104; [SAP Help Portal: Goods Receipt Processing Time].

 In make-to-order production, the production planning is initiated only when a sales order is received. The system does not perform a net requirements calculation between individual sales orders or with the make-to-stock warehouse stock1. Therefore, option B is correct. Additionally, production orders are created with sales order reference, which means that the costs and revenues of the sales order are settled at the end of the production process2. Therefore, option E is also correct. The other options are not valid for make-to-order production. Storage location MRP areas are not required for sales-order-specific stock, as the stock is managed at the sales order level3. The reduction of make-to-order stock and requirements does not occur on delivery, but on goods issue to the sales order1. Sales orders do not have to be ATP-confirmed to be saved, as the availability check is optional and can be performed later. References: 1: Strategies for Make-to-Order (MTO) Production | SAP Help Portal(https://help.sap.com/docs/SAP_S4HANA_CLOUD/2bba750d1e124e1ea2a039bb1cd9b6c5/3b24bf53d25ab64ce10000000a174cb4.html) 2: Outlining Make-to-Order Production - SAP Learning(https://learning.sap.com/learning-journeys/discovering-the-basics-of-sap-s-4hana-manufacturing/outlining-make-to-order-production_be788c36-6fd4-4f1e-b054-635435247918) 3: Storage Location MRP Areas | SAP Help Portal. : Availability Check and Requirements in Sales andDistribution Processing | SAP Help Portal.

 You can change the material type for a material if stocks, reservations, or purchasing documents exist only if the following conditions are met:

The same base unit of measure is used. This ensures that the material quantity is consistent across different material types.

The quantity and value updates are the same. This ensures that the material valuation is consistent across different material types.

The material is not subject to split valuation. This ensures that the material has only one valuation class and price control. References: [SAP Help Portal] - Change Material Type

 The alert monitor in Advanced Planning allows you to monitor and analyze the planning situation and identify any problems or deviations from the desired state. To use the alert monitor, you need to configure the following elements:

Overall profile: This defines the scope and content of the alert monitor, such as the planning objects, the alert types, the alert categories, and the alert levels. You can assign one or more alert profiles to an overall profile to specify the alerts that you want to monitor.

Alert profile: This defines the criteria and parameters for generating alerts, such as the time horizon, the planning version, the planning mode, and the alert threshold. You can create different alert profiles for different planning scenarios or objectives.

Authorization profile: This defines the access rights and restrictions for the alert monitor, such as the planning objects, the locations, the products, and the resources that a user can view or edit. You can assign an overall profile to an authorization profile to control which alerts a user can see or process.

Therefore, to set up the alert monitor, you need to assign the alert profile to the overall profile (B) and assign the overall profile to the authorization profile (D). Creating an object selection variant for priority-category-related alerts (A) or production-planning-related alerts © is not a configuration step, but a selection option in the alert monitor to filter the alerts by different criteria. References:

You can select the following standard item categories inside a bill of material (BOM):

Variable-size item: This item category is used for materials that have variable dimensions, such as pipes, wires, or fabrics. The system calculates the quantity of the variable-size item based on the formula and the dimensions entered in the BOM. You can also use the variable-size item to define a scrap percentage for the material.

Non-stock item: This item category is used for materials that are not managed in inventory, such as consumables, services, or subcontracting items. The system does not create any reservations or stock movements for the non-stock item. You can use the non-stock item to trigger purchasing requisitions or purchase orders for the material. References: Bill of Material Item Category; Bills of Material in Production Planning

 In reorder point planning, the system compares the available stock with the reorder point to determine the net requirements. If the available stock falls below the reorder point, the system triggers a procurement proposal for the material. The quantity of the procurement proposal depends on the lot size procedure that is defined in the material master. The lot size procedure determines how the system calculates the order quantity based on factors such as demand, costs, and storage space. There are different types of lot size procedures, such as static, periodic, or optimum lot size. References: [Production Planning with SAP S/4HANA], page 156; [SAP Help Portal: Lot Size Calculation].

Planning with final assembly (40) is a planning strategy that supports the consumption of planned independent requirements for the semi-finished material. This strategy is used when the production of the finished product is triggered by the sales order, but the production of the semi-finished product is not. The semi-finished product is produced in advance based on the forecast and stored in stock. When the sales order is received, the planned independent requirements for the finished product are reduced by the sales order quantity, and the planned independent requirements for the semi-finished product are reduced by the corresponding component quantity. This way, the semi-finished product is consumed by the sales order and the production order for the finished product only requires the assembly of the components. This strategy allows for a shorter lead time and a higher flexibility for the finished product, while reducing the risk of excess stock for the semi-finished product. References: Planning with Final Assembly | SAP Help Portal, Planning Strategies | SAP Help Portal, SAP S/4HANA Production Planning andManufacturing Certification Guide, page 53-54

Materials that have a negative quantity in a bill of material or in a recipe are those that are produced in addition to the main product during a production process. They are either sold or disposed of, and their costs are apportioned among the main product and the co-products. By-products are materials that have a low value compared to the main product and are usually not planned in advance. Co-products are materials that have a high value compared to the main product and are usually planned in advance. Waste products are materials that have no value and are discarded or recycled. References: Bill of Material (BOM), Test sap pp 2020 s4 hana - DAYPO

Before you create a BOM, you need to check if the material type of the header material is allowed in the BOM usage. The material type defines the attributes and functions of a material, such as whether it is a finished product, a raw material, or a trading good. The BOM usage defines the purpose and application of a BOM, such as production, engineering, or sales. Only certain combinations of material types and BOM usages are valid in SAP S/4HANA. For example, you cannot create a production BOM for a material type that is not relevant for production planning. References: [SAP S/4HANA Production Planning and Manufacturing Certification Guide], page 63; [SAP Help Portal: Material Type].

Forecasting is the process of predicting future demand for products or services based on historical data, market trends, and other factors. Forecasting is an essential component of supply chain planning, which aims to optimize the flow of materials, information, and money across the supply chain network. SAP offers various applications that can be used for forecasting in supply chain planning, such as:

Integration Business Planning (IBP): IBP is a cloud-based solution that provides end-to-end visibility and integration of planning processes across different business functions, such as sales, finance, operations, and logistics. IBP enables collaborative and real-time forecasting, scenario analysis, and decision making based on advanced analytics and machine learning. IBP supports various forecasting methods, such as statistical, causal, and demand sensing, and allows users to adjust and refine forecasts based on changing market conditions and business priorities12.

Supply Chain Management (SCM): SCM is an on-premise solution that covers the entire supply chain process, from demand planning to delivery and invoicing. SCM includes various modules, such as Advanced Planning and Optimization (APO), Extended Warehouse Management (EWM), and Transportation Management ™, that enable efficient and flexible planning and execution of supply chain activities. SCM supports various forecasting techniques, such as exponential smoothing, trend analysis, and seasonal adjustment, and allows users to monitor and control forecast accuracy and performance34.

The other two options are not SAP applications, but rather concepts or processes related to supply chain planning:

Capacity Requirement Planning (CRP): CRP is the process of determining the available and required capacity of resources, such as machines, labor, and materials, to meet the production plan. CRP helps to identify and resolve capacity bottlenecks, optimize resource utilization, and balance supply and demand. CRP can be performed using various SAP applications, such as MRP, Production Planning and Detailed Scheduling (PP/DS), or IBP5 .

Material Requirement Planning (MRP): MRP is the process of calculating the quantity and timing of materials needed to fulfill the production plan. MRP helps to optimize inventory levels, reduce costs, and improve customer service. MRP can be performed using various SAP applications, such as ERP, SCM, or IBP . References: SAP Integrated Business Planning | SAP, Forecasting | SAP Help Portal, SAP Supply Chain Management | SAP, Forecasting | SAP Help Portal, Capacity Requirements Planning (PP-CRP) | SAP Help Portal, [Capacity Planning | SAP Help Portal], [Material Requirements Planning (PP-MRP) | SAP Help Portal], [Material Requirements Planning | SAP Help Portal]

 A production version is a master data object that links a bill of material (BOM) and a routing or a production process model (PPM) for a material. A production version is required for creating a production order in SAP S/4HANA, as it determines the components, operations, and resources that are needed for producing the material. You can create a production version manually or automatically using the CS_BOM_PRODVER_MIGRATION02 report1.

If you are trying to create a production order and no valid production version can be selected, it could be because of the following reasons:

No bills of material (BOMs) are assigned to the production versions (A): A BOM is a master data object that defines the components and the quantities that are required for producing a material. A production version must have a valid BOM assigned to it, otherwise it cannot be used for creating a production order. You can assign a BOM to a production version on the MRP 4 tab page of the material master2.

The order lot size is not within the validity range of a production version ©: A production version has a validity range that defines the period and the lot size interval in which it can be used for production planning. The validity range is maintained on the MRP 4 tab page of the material master2. If the order lot size (the quantity of the material to be produced) is not within the lot size interval of any production version, then no valid production version can be selected for creating a production order.

The other options are not valid reasons for not being able to select a production version for creating a production order:

All production versions for the material are locked (B): A production version can have a status that indicates whether it is active or locked. A locked production version cannot be used for production planning, but it can still be selected for creating a production order. However, the system will issue a warning message that the production version is locked and ask for confirmation before proceeding with the order creation3.

No production lines are assigned to the production versions (D): A production line is an organizational unit that represents a group of resources that are used for producing a material. A production line can be assigned to a production version on the MRP 4 tab page of the material master2. However, this assignment is optional and not mandatory for creating a production order. A production line can be used for grouping production versions for reporting or analysis purposes, but it does not affect the selection of a production version for creating a production order4.

References:

The Find Slot scheduling strategy allows you to schedule an operation finitely, without removing other operations. It searches for a free slot in the resource’s capacity that can accommodate the operation’s duration and constraints. If no suitable slot is found, the operation is scheduled at the end of the resource’s capacity. This strategy is useful forinserting urgent orders or operations into an existing schedule without disrupting it too much12 References:

SAP S/4HANA Manufacturing for planning and scheduling - SAP Community

SAP S/4HANA Manufacturing for Planning & Scheduling - Implementation Guide

Collective orders are used to represent multilevel production structures for materials produced in-house, where the manufacturing order for the highest material in the structure automatically generates manufacturing orders for the semifinished products in the structure. This allows for an integrated view of the production process and avoids unnecessary placements in storage or removals from storage between production levels. Collective orders can consist of planned orders, production orders, or process orders, and each order has its own order number. Collective orders can be processed with or without automatic goods movements, depending on the business scenario. References: Collective Orders | SAP Help Portal, Collective Order | SAP Help Portal, Combined production order Vs Collective production order in SAP PP

If the available stock is zero and the discontinuation date is in the past, the material requirements planning (MRP) process will be affected. MRP will not create any planned orders or purchase requisitions for the discontinued component. Instead, it will create a discontinuation indicator in the MRP list and a discontinuation message in the exception message list. This will inform the planner that the component is no longer available and that a follow-up material should be used instead. References: [SAP Help Portal] - Discontinuation of Materials.