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A Guide for Setting Up Maximum Order Proposals for Planned Orders and Creating Production Orders with Fixed Lot Size One
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In high-tech industries like semiconductors, tracking serial and batch numbers of BOM components is vital for effective after-sales service and quality management. One effective strategy to achieve this is by creating production orders with a fixed lot size of one. This blog post provides a comprehensive guide on how to set up and manage these production orders. By following the steps outlined, manufacturing teams can ensure accurate tracking of serial numbers and sub-level BOM components, ultimately enhancing overall production efficiency and traceability.
Business Requirement:
In high-tech industries like semiconductors, the manufacturing team aims to monitor the serial numbers of finished products and the sub-level BOM components used in their production. To achieve this, they maintain production orders with a fixed lot size of one and set the maximum order proposal to the highest possible limit (as the default limit for planned order proposals is 50, which might cause errors if the requirement quantity exceeds 50 at the time of MRP run). This method allows for precise traceability of lower-level BOM components and tracking of the serial numbers or batch numbers of components consumed in the manufacturing of the final finished product.
Below is a step-by-step process on how to set-up maximum order proposal for planned orders and to create production orders of fixed lot size ‘1’.
- Maintain the maximum order proposal for Planned orders by accessing the following configurational path ‘Demand and Supply > Supply Chain Planning > Material Planning > Material Requirement Planning (MRP) > Define Plant Parameters Overview.’
- Maintain the Number of planned orders to the maximum limit ‘999’ and save the configuration.
- Maintain fixed lot size of ‘1’ in material master data using Fiori app Change Material (MM02).
- Maintain Independent Requirement for the Material/Plant using Fiori app ‘Maintain PIRs.’ (In the below example, 5 quantities maintained for the period M08.2024).
- Validate the Independent requirement maintained for that material/plant using Fiori app ‘Monitor Material Coverage – Net/Individual segments.
- Perform MRP Run by clicking on the button ‘Start MRP Run’ in Fiori app Monitor Material Coverage.
- Planned orders with fixed lot size ‘1’ has been created based on the requirement and these planned orders can be converted to production orders each with quantity 1EA using Fiori app Monitor material coverage or MD04 (Stock Requirement List).
- Release the Production Order using Fiori app ‘Manage Production Orders’ or CO02 (Change Production Order)
- Complete Goods Issue (Mvt. Type 261) of the BOM components using Fiori app ‘Post Goods Movement’.
- Complete Goods Receipt (Mvt. Type 101) of the final product using Fiori app ‘Post Goods Receipt for Production Orders’.
Item Detail Screen:
- Perform Confirmation of production order using Fiori app ‘Confirm Production Operation’.
- Technically complete the production order using Fiori app CO02 (Change Production Order)
- Once the order is complete, serial numbers issued and received in a production order can be tracked using a custom serial number tracker report. Please refer the SAP Community link to get the details on how to build a serial number tracker report for production materials in SAP S/4HANA Cloud Public Edition.
Implementing a robust tracking system for serial numbers and BOM components in the semiconductor industry is crucial for maintaining product integrity and traceability. By following the step-by-step process outlined above, manufacturing teams can effectively set up maximum order proposals for planned orders and create production orders with a fixed lot size of one to a maximum limit of 999 orders. This meticulous approach ensures that every component used in the manufacturing process is accounted for, leading to improved quality control and customer satisfaction.
Hope this is useful and for any further queries, please post your queries in the SAP Community Portal
Happy Learning!!
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