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StudyMaterialContributedbyUlhasKavleSeniorSAPConsultant,
MahindraSatyam

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StepsinimplementationofSAPPP/SAPPPPI

StepsinimplementationofSAPPP/SAPPPPI

Step1:DeliveringaSAPPPOverviewPresentationtotheClient.

ThefirstthinginanimplementationispresentingSAPtotheclientteam.Itis
expectedthattheconsultingteamwouldgiveanoverviewofSAPand
explainthesameinalaymanway.

Youwouldnotbesurprisedtoseealotofbignamesintheroomkeeping
your cools and giving your best is very important. This becomes the first
interactionwiththeclient.AgoodPPTandagoodpresentationwillconveya
greatmessageabouttheteamandaboutyouasanindividual.

Thefirstinteractionwiththeclientandtheorganizationcanbereally
horrifying if the you are implementing SAP in a big manufacturing
organizationandyouseethebigchimneystouchingtheskyandSilos
standing llike monsters. This is where your mind would start playing
on you and you would all of a sudden feel as if God has nominated
you to mess up SAP and distroy yourself and your career. At this
juncture I have just one advice and thought, that the bigger the
company, the easier it is and the more flexible they are to accept
standardSAPandstandardprocesses.Youwouldjustbefine!!!
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Step 2: Decide the organizational Structure for SAP PP Plants and Storage
Locations:



DecidingfacilitiesasPlants


As a Consultant decide the manufacturing plants which needs to be
separatelyidentifiedinSAPasPlants.

Plants are the place where the manufacturing or warehousing activities
happen.

TheMaterialisvaluatedatplantlevelandinventoryisstoredatplantlevel.

Also note that Manufacturing or Warehouse facilities which are far apart
from each other are nominated as Plants, though this is not a governing
rule. For certain reasons Finance may wants to set up, 2 manufacturing
activitieslyingclosetoeachother,asseparateplantsduetodifferentmaterial
priceexistingatthe2placesorbecausethese2facilitiesmayhavedifferent
Legalaccountingprocedures(andtheymaybecomingunder2differentlegal
heads)

NoteYoucannotassignaplanttomorethanonecompanycode.


DecidingStorageLocations@aPlant


Once you decide the plants you have to decide the storage locations where
thematerialswouldbestoredorinventoriedinthesystem.

StorageLocationsforexamplecanRawmaterialReceivingLocations,Raw
material Return to Vendor locations, Shop Floor issuing Location, Finished
GoodsStorageLocationetc.

You may create certain Storage Locations specially for storing certain
materialsorcertaintypeofmaterialswhichareimportanttotheorganization
ortheirstoragemethodsandMRPcriteriaaredifferent.


Illustration


CompanyCode=DewSteelsPvtLimited

Plant1=0001

SLOC1=RAW=0001
SLOC2=FGI=0002
SLOC3=SHOP=0003
SLOC4=SCRAP=0004

Plant2=0002
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SLOC1=RAW=0001
SLOC2=FGI=0002
SLOC3=SHOP=0003
SLOC4=SCRAP=0004
SLOC5=REWORK=0005

Step3:UnderstandingtheManufacturingorLogisticalBusinessProcesses:



Thefollowingpointsandquestionsneedtobeanswered:

Production Strategy Start with finding whether the Production
process is MadetoOrder or MadetoStock and are there certain
products manufactured Made to order and certain products
manufacturemadetostock.

Manufacturing Locations and Supply Chain Understand
themanufacturingfacilitiesandwarehousingfacilitiesinthecompany
& their geographical locations. This will help you understand the
supplychainofthecompany.
It alsobecomessignificant to understand the supply chain, i.e., know
the raw materials that go in production, know their procurement
methods, the storage locations from where the raw material is stored
andfromwhereitisissuedforproductionprocessesknowthevendors
and the existing tieup with those vendors for procurement of raw
materials. On the other hand understand the warehousing of the raw
materialsaswellasthefinishedproductsknowhowtheyaredelivered
forwarehousingandhowtheyaredeliveredtothefinalcustomer.Itis
wisetoknowthepackingandshippingprocessesoftheproducts.

ProductsManufacturedMakealistoftheProductsmanufacturedin
various plants. You can put them in a excel list and understand the
productsandproductfamiliesavailable.Thiscanhelpyoufindingout
thenumberofproductsmanufacturedataaplantandthewhetherthere
isanykindofexistingconceptofMaterialMasterintheorganization.
You can also drill down to know the material coding methods which
wouldhelpyoudesigntheSAPMaterialMaster.

ManufacturingFacilityUnderstandtheProductionprocessandthe
various Machines the product goes through before it is
manufactured. Make a note of the operations or Machine where the
production needs to be booked and/or costing needs to be booked.
These operations are potentially your work centers to be used in the
production Routing/Recipe. Other point which make you decide
whetheracertainoperationorMachinewouldbecomeapartofyour
Routing/Recipe, is the amount of time consumed in the production

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appreciable time spent at a certain operation surely makes it a

candidateforRouting/Recipe.
Investigate the average production lead time per product. Thereby
inquire whether there is any kind of time study analysis already
existing in the organization. This will help you set up the operations,
workcenters,standardproductiontimeforproducingabasequantity.

You have to understand you would be assigning Work centers to the
operationsandeveryworkcenterhasscheduling,capacityandcosting
related information. For Scheduling you should choose or make a
formula with which the time is consumed at the work center, for
examplearegularproductionwouldconsumetimeasequalto[Setup
+{(ProductionorderQtyXStdTimeconsumed)/BaseQuantity}]or
aWorkcenterwhichprocessmanynumberatonegiventimespancan
haveacapacity/schedulingformulaas{SetUpTime+[{Volumeof
Base Qty / Base Qty X (Production Order qty 1)} / {Volume of
Furnace+1}]XFurnaceTime}.

MRPandPlanningStrategiesTabulatethePlanningstrategiesand
MRP Methods for each and every component that is a part of the
BOM.Youhavetounderstand whether these raw materials would go
through consumption based planning methods like reorder point
planning or whether they would go through more stringent planning
processes like Lot for lot MRP planning. Also note the planning
strategies for the inhouse manufactured products, which off
courseshouldgothroughthestringentplanningprocesseslikemade
toorder, madetostock, final assembly processing etc. Other
parameter like lot sizing procedures, planning methods, scrapping
policies, any quota arrangements, procurement methods also hold
equalimportance.

Preparations for Madetostock If the production is madeto
stockunderstandtheexistingforecastingmethodsandtheforecasting
rules.Knowwhethertheforecastingisforaproductorforagroupof
productsbelongingtoafamily.Confirmwhetherproductionistotally
ontheforecasteddemandorthereareanychangestotheforecastmade
before they are passed on to production. Identify the parameters that
are used in forecasting like the last periods sales figures for a city,
country,regionorasalesgrouporanyotherfactors.

DesignofBOMUnderstandtherawmaterialsthatareconsumedin
productionanddecideonwhichcomponentsshouldbecomeapartof
theBillofMaterials.Whiledoingthisyouneedtoknowanimportant
pointthatthepricesofeachofthecomponentsintheBOMaddupto
make the total cost of the product thus involve the costing team too.
InvolvementoftheProductdevelopmentteam,Productdesigningteam
ortheshopfloormanagerstodecidewhetheracertaincomponentora
certain product drawing and important production related texts are to
beincludedintheBOM.

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DesignofRouting/RecipesSimilarlybeforedesigningtheRouting,
it is important to again involve the costing team to
decidetheoperationswhichwillbecomeapartoftheRouting/Recipes.
Again the time study team or the product development team or the
costing team can make corresponding contributions in adding the
standard machine time, setup time required for production of a base
quantity.

StudyofLegacySystemStudytheexistingLegacysystemandthe
various activities they record on their computers and the various
activities they do outside the computers {if any}. Understanding the
Legacysystemwillhelpyouknowhowtheirexistingsystemscanbe
duplicated, removed or optimized in SAP. The Study of the legacy
systemwillhelpyoureadtheorganizationandtheworkproceduresin
theorganization.Youcanalsoplaninmakinguseofthislegacysystem
anddecideinterfacecertainactivitieswithSAPandletthemcontinue
intheLegacysystem.LegacySystemcanalsohelpyousettingupthe
MasterdatainSAPliketheBOMandRouting/Recipe.

ShopFloorRecordings Understand the shop floor and the product
confirmationsprocessesateachandeveryoperationalsofindouthow
the products are received in stock and whether there are quality
inspectionscarriedoutontheoutput.

QualityInspections Know the quality inspections methods that are
used and the product passing and rejecting activities. Find out how
important quality of the product is important for the company and
whetherthereisaneedtoimplementSAPQualityManagement.

Askthemanagementwhethertheproductisreworkeduponandwhat
the scrapping process is. Make a note whether the scrapped or
reworkedmaterialsissoldinthemarketorreusedinproduction.

Step4:DocumenttheBusinessProcessesinaBlueprintDocument:



BlueprintAsIsVersusToBeProcesses:


ABlueprintisadocumentthatrecordsalltheexistingprocessesandtheto
be processes for these existing processes. The best way to do this is to put
each process one by one and put next to it the SAP tobe processes. Also
include the step by step activities that would be the part of a given tobe
process.

TheFollowingProcessesmaybecomepartofyourBlueprintThisisjustan
example:

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Process1:RawMaterialProcurement

Process2:RawMaterialStagingtotheshopfloorforProduction

Process3:MasterDatacreationBOM,

Process3a:MasterDatacreationWorkcenter

Process3b:MasterDatacreationRouting/Recipe

Process4:MaterialRequirementPlanningfortheRawMaterials

Process5:MaterialRequirementPlanningfortheassemblies/subassemblies

Process6:ProductionordercreationandRelease

Process7:ShopFloorExecution

Process8:ProductionorderGoodsReceipt

Process9:QualityInspectionsinProduction

Process10:ProductCostingandOrdersettlement

Topic11:Technicaldevelopmentslikeinterfaces,reports,ModulePools,user
exitsanddataconversiontechnicalobjectslikeLSMWandprogramsthatare
required to build the various activities involved in the manufacturing
activities.

Topic12:GapsAnalysis


BlueprintGapAnalysis:

InanattempttomaptheexistingprocessesintoSAP,thereisalwaysarisk
thatsomeoftheprocessesoractivitiesinaprocessmaynotbemapablewith
the Standard process set ups in SAP. Such activities or processes which
becomeimpossibletomapinSAParecategorizedasGaps.Thesegapsare
documentedproperlyundertheGapssection.Attheendoftheblueprinting
process, the implementing and the consulting team should discusses these
Gapsandthensignoff'stheblueprint.Theybrainstormonpossiblesolutions
to overcome such gaps, these solutions are workarounds or technical
developmentalsolutionstotheGaps.Mostofthetimessuchgapsaremetby
technicaldevelopmentsinSAPasstandardSAPdonotprovidethesolution
for the activities/processes. Such technical developments are most of the
timesverycomplex.

ItisalsopossiblethattheGapsarenevermetandtheteamdecidestocarry
outtheactivitiesorprocessesoutsideofSAP.


CreationofFunctionalspecificationsfortheABAPdevelopments:

The consultants would create functional specifications for the Technical
ABAP developments. Such Document is a descriptive document that
explains in detail the logic that is to be used for developing the ABAP
technicalobject.Thisdocumentwouldcontainthefieldsandtablesandthe
linkbetweenthemtohelptheABAP'erdesignordevelopthesame.
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ThetechnicalobjectsforwhichtheFunctionalSpecificationsarecreatedare:

a)Reports
b)Interfaces
c)ModulePool
d)DataConversionObjects
e)UserExits


AverageTimerequiredforBlueprinting:

23Months.

Step5:DataLoadandPlanning


The Consulting team, each module, should list down all the Master data
objectsandhowthedatawillbecollected.


CreationofDataCollectionTemplates:

ForSAPProductionPlanningandControl,theconsultantshoulddesignthe
Masterdataanddecidethefieldsforwhichvaluesaretobecollectedfrom
theuserssoastocreatetherespectivemasterdatainSAP.Forexampleinthe
caseof"BOM",theconsultantplansoncreatingaBOMandenterthevalue
forthefollowingfields

SelectionData:HeaderMaterial,Plant,BOMUsage,Startdateofvalidity,

Item Data : Component, Item Category, Material Code, Qty, UOM,
ComponentScrap,WhetherRecursiveIndicator,whetheracoproducts.

HeaderData:Basequantity,BOMAlternatetext.

Then in this case the consultant should teach the user the meaning of each
fieldandcreateaexcellayoutwiththeabovefieldsinitarrangedoneafter
theother,forthepurposeofcollectionofthisdata.



EducatingtheDataCollectorsontheDataCollectionTemplates:

TheconsultantsshouldeducatetheusersorthesuperusersabouttheMaster
data template they are going to use for the collection of Master Data. It
makes sense to organize such training since data is the heart of any project
anditshouldbecollectedverysincerely.Asaconsultantyoushouldexplain
eachandeveryfieldintheexceltemplatethatyouwouldmakeforthedata
collectionpurpose.Youshouldalsoeducatetheusersonthevaluesthatyou
expectforthefields.Itmayalsohappenthatyoumaydefaultcertainvalues
forcertainfieldsandyoushouldalsoeducatethedatacollectorsaboutit.The
template should be very clear and should contain the definitions and
particularsabouteachandeveryfieldasshownbelow:

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ExcelRow1FieldDescriptions
ExcelRow2SAPFieldNames
ExcelRow3Definitionsandpointstonote
AllRowbelowDataforCollection



Development of a ABAP program to Upload the data in the collected
format:

An Upload program or an LSMW should be created in SAP to upload the
datainthesamecollectionlayoutasdecided.

Step6:ConfigurationsandTestings


Once the Blueprint is ready, you are expected to configure the SAP
Production Planning system. The following are the methods involved in a
sequenceofoccurrence:


First

GoldenClientConfiguration This is a client where only configurations
aredoneforallthemodulesbytherespectiveconsultants.


Second

Transfer (use SCC1 Transaction code to transfer) configurations to the
DevelopmentClient where you would be carry out the initial Unit test on
your Module. On a parallel stream, when the functional team is
configuring in the Golden Client, the development or the Technical team
starts developing the technical objects, for which they will use the
Functional specifications as prepared by the functional consultants. This is
donebytheconsultingteammembers.


Third

CarryoutUnittestintheDevelopmentClient.Alltheconsultantsfromall
the modules would create a list of transaction codes or activities to test in
SAPDevelopmentclientsoastotestthattheirmodulesworkinSAP.This
Unittestplanhastobecreatedinaworddocumentorexceldocumentbefore
youdoanytest.Beforeyoudosuchtestyouneedtocreatesomemasterdata
that would be used for the test. This is done within the consulting team
members.


Fourth

CarryoutaStringtestinthedevelopment client. A String test is a small
integration test which is done between the modules to test SAP integration
and flow of information between them, though this is not marked as the
Integrationtest.Totestsuchstringssuccessfullytheconsultingteamsshould

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create common set of master data that is linked between the modules and
usingsuchrepresentativedata(representativedatameansamasterdatathat
well represents the organization where you are implementing Use real
data only) the consulting team gets in to a conference room and tests the
stringsfromstarttoend.Todosuccessfullyitismandatorythatacommon
flowdocumentshouldbecreatedbeforehandandusedforrecordingtheTest
resultsandthestatusofthetest.Onceyouarehappywiththetestsyoucan
alsodemonstratethesametotheclientimplementingteam.Asuccessfultest
allowstheteamtotransport the configuration to the Quality Assurance
Clientorthetestingclient.


Fifth

TheFunctional team tests the Technical objects developed by theABAP
Consultantsinthedevelopmentclient.Thisactivitygoesinparallelwiththe
unittest,stringtest.AFunctionaltestingdocumentispreparedtorecordeach
andeverytestontheobject.AlltheissuesrecordedarefixedbytheABAP'er.
A successful test allows the team to transport the configuration to the
Quality Assurance Client (QA) or the testing client. Once you are happy
with the tests you can also demonstrate the same to the respective module
ownersorsuperusersfromtheclient'simplementingteam.


Note

Youshouldalsonotethattheuserrole,accessandsecurityassignmentsare
made before the allocations before going in to the 6th Step as below. The
integrationtestsarealwayscarriedoutusingthefinaluserIDwiththeright
rolesandaccesses.Normallyinbigimplementationsthereisaseparateteam
thatdoesthesecurityaspectofSAP.


Sixth

Once the Objects are transferred to QA Client and once the Configurations
are transported to the QA Client, the implementing team carries out an
InternalIntegrationtestfortheSAPModulesandSAPTechnicalobjects
all arranged in the sequence of occurance. Before carrying out this major
integration test in the QA the Consulting team and the client side team sits
together and drafts all the scenarios and processes and activities in one
documentinaoperationalsequencetoformaendtoendscenariocycle.The
Client is totally involved in such activities. In most cases, the client side
super users or core users are the people driving such tests. In Many
organizations nowadays there are 3 to 4 rounds of such integration tests
carriedout.

ItisimportanttokeepatrackoftheIssuesandGapswhichareannounced
out of such test and make sure that they are properly recorded in an issue
trackerandsolvedbytheconsultingteamiftheissueisSAPrelatedandif
theissuesarebusinessprocessrelatedtheyaresolvedalsobytheclientside
teamwithsomeinvolvementoftheSAPconsultants.


Note

TheFirst5activitiesnormallyconsumearound3monthsinaprojectandthe
6thactivitynormallyconsumesaround1month.

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Step7:CutoverProcessandGolive



Definition:


InaSAPCutoverprocess,theconsultingteamandtheindividualconsultants
in the team plans out a cutover process. A Cutover in SAP means the roll
overfromtheexistinglegacysystemtothenewSAPsystem.Andtoassure
thisrolloverisfineorthismovementtoSAPisfineagoodcutoverprocess
oragoodcutoverplanisimportant.Cutoverformsthefollowing:

Preparetheproductionclient.ThisistheFinalGoliveClient.

LoadofalltheMasterDatainSAPProductionClient.

Identify the cutover Schedules. Make clear of these Dates to all and
eachinthorganization.

PromoteSAPintheorganizationandCreateanAwarenessofSAP.

MakesureyouhaveaBlackoutperiodwhichwouldactasanwindow
to change your systems to SAP and get it going in a true real time
sense. In this window there would be no Sales, Purchasing and
Production activities, such Window is required to make sure that the
transformation to SAP is smooth and the user community records all
the existing/open information in SAP and gets real time with
SAP.OncethewindowisfinishedbothSAPandShopfloorActivities
and organizational data is on the same page and real time thus SAP
cangetsawellsettledrealtimeplatformtostartwith.

Makeanoteofalltheopendocumentswhichwouldberequiredtobe
entered in SAP like the open Sales orders, open production/process
orders, open purchase orders, on hand inventory etc. All these open
documentsandstockneedstobeuploadedinSAPinthis"BlackOut
Window".

Makesurealltheconfigurationanddevelopmenttransportshavebeen
movedtotheProductionClient.

AftertheBlackoutperiod,youwouldbegoinglivewithSAPonareal
timebasis.
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ThecutoverprocessforSAPPPcanbe:

a)UploadalltheAssemblies/SubassembliesStocksasSAPinventoryusing
the 561 Movement type. If certain stocks are in quality you can move it to
QualityInspectionstockstoo.Similarlyiftheyareinblockedstockyoucan
alsouploadinblockedstockinSAP.

b) You can assume that whatever which was in production before the
blackoutisfinishedandisinstock,thusyoucancreateinventoryforthese
expected receipts from these production orders and once the SAP Go lives
after the Black out period you would avoid recording SAP transactions for
the production orders which were already assumed to be finished and were
alreadybroughtintoinventoryorasanoptionnumber2,youcanassumethe
realtimeproductionorderstatusthuscreatingalltheproductionordersinthe
blackout period and confirming them till the operation they are
produced before the blackout period, this second strategy would be a true
pictureofyourshopfloor.Theoptionnumber1issimplerandavoidsallthe
complexitiesanduploadingofSAPopenproductionorders.

Step8:PostGolive



Theconsultingteamnormallysupportstheorganizationforaperiodof4560
daysinitially,recordingalltheissuesandsolvingthemonthepriorityof
theissue.TheorganizationatthisstagehasstartedusingSAPforthe
designedscenariosandprocesses.Atthisstagetheyrequireallthehelping
handtheycangetfromthesuperusersandtheconsultants.

Thisstageisthemostcriticalstageanddecidesthesuccessoftheproject.

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