Work Center In Production Planning
Contents What is Work Center?................................................................................................................................................4 Role of Work center in PP:.........................................................................................................................................4 Integration with Other Business function:................................................................................................................4 Work center Capacity: ...............................................................................................................................................4 Available Capacity: .................................................................................................................................................4 Required Capacity...................................................................................................................................................4 Scheduling in Work center: .......................................................................................................................................6 Queue Time: ...........................................................................................................................................................6 Wait Time: ..............................................................................................................................................................6 Move time: .............................................................................................................................................................6 Costing in Work center: ............................................................................................................................................7 Work center category: ........................................................................................................................................8 Basic Data: ..............................................................................................................................................................9 Location: .............................................................................................................................................................9 Supply Area:........................................................................................................................................................9 Usage: .................................................................................................................................................................9 Backflush Indicator: ............................................................................................................................................9 Standard Value Key and parameter: ............................................................................................................... 10 Default Values: .................................................................................................................................................... 11 Capacity: .............................................................................................................................................................. 11 Scheduling: .......................................................................................................................................................... 13 Costing:................................................................................................................................................................ 13
What is Work Center? • • •
Work Center can be a place or a machine or a labor where production operations/activities are performed. In PP, Work center is used in Routing operations and production orders. Work centers also used in other applications like Plant maintenance, Project system and Quality Management.
Role of Work center in PP: In production planning, data in Work center is used for 1. Capacity Calculation 2. Scheduling of an Operations/Orders 3. Calculate Operation Costs
Integration with Other Business function: Work center is integrate with the below business functions or Modules. 1. Controlling 2. Human Resource 3. Plant Maintenance
Work center Capacity: Available Capacity: • • • •
In general capacity means ‘Available hours’ of a machine or labor. This available hours excludes Break or halt hours. Assume that a Lathe machine is available in a production plant from 9 AM to 9 PM and there will be a break time of 2 hours for lunch and evening snacks. Now the Capacity of the Lathe machine is calculated as follows. Available Capacity = 12 Hours (Total hours) - 2 Hours (Break) Available Capacity = 10 Hours
Required Capacity • •
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Required capacity is hours required for a work center to produce particular quantity of an assembly. System uses below information to calculate “Required Capacity” for a work center. o Capacity formula: ▪ Capacity formula uses Standard value key Parameters (Work center Basic data screen) o Operation time in Production Order ▪ This uses time defined in routing operation for base quantity. For an example:
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A process in steel cutting unit uses a machine called “Plasma cutting” in which below standard value parameters: o Setup time o Machine time o Labor time Let say in Routing we have maintained below times for the above parameters o Base Quantity: 120 PCs o Setup time : 30 Mins o Machine time : 90 Mins o Labor time : 90 mins Capacity formula defined for Machine is as follows: Machine time * Quantity to be produced / Base quantity
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When production order for the quantity of 300 PCs is created capacity is calculated as follows. Required Capacity = 90 mins * 300 PCs / 120 PCs Required Capacity =
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225 mins
With “Number of Individual capacity” : o This is number of individual machines available with similar capacity. o When system calculates ‘capacity required ‘it divides the number Individual capacity in formula and when calculates “available capacity” it multiplies number of indivual capacity. o Capacity formula defined for Machine is as follows: Machine time * Quantity to be produced / Base quantity * No of splits o o
Required capacity = 90 mins * 300 PCs / 120 PCs * 2 Required capacity = 112.5 mins
Scheduling in Work center: • •
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In general scheduling means calculation of Start date/Start time and end date/end time of an operation performed in a work center based on requirement date. System uses below details for scheduling an operation/Machine. o Formula for scheduling in work center scheduling view. o Requirement date/time from Order o Operation time from Routing. o Inter operation times (i.e. Queue time, wait time, Move time etc.) from routing System do backward scheduling starting from requirement date/time in order to schedule the order.
Here Queue time, wait time and Move time are known as “Inter operation times”.
Queue Time: Time raw material/components need to wait before processing in a machine.
Wait Time: Time material must wait after processing in a work center.
Move time: Time required for material move to next work center for further processing.
Costing in Work center: •
System calculate activity cost based on following Master data’s information o Costing formula in work center o Operation time in routing and Order o Activity rate defined for the Cost center which is assigned with work center.
Creation of Work center: •
Work center can be created any of the following method. 1. By directly typing the below transaction:
Transaction Code CR01
Description Create Work center
2. By accessing below menu path
Work center category: • •
Work center category controls screen sequence of the work center data. In general following standard screens are available for work center, ✓ Basic data
✓ ✓ ✓ ✓
Default values Capacity data Scheduling Cost center assignment
Basic Data:
Location: • •
Location in which the work center is assigned. This is used in Plant Maintenance purpose.
Supply Area: •
Area in which raw material need to be moved for operation.
Usage: •
Work center usage field control application or function area where it is used.
Backflush Indicator: • • •
Backflush in SAP is automatic posting of raw materials/components when production activity is confirmed. When we confirm an operation /work center for an Order, BOM components that are assigned with that particular operation/work centers (in routing) will be posted automatically. In SAP there 3 places we can set backflush indicator in PP Master Data. o Routing (Components assignment) screen o Material master MRP2 Screen
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Work center Basic data screen
Standard Value Key and parameter: •
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Standard value key may have maximum of 6 parameter which are used to calculate o Capacity o Scheduling o Costing SAP calculates Capacity, Scheduling and costing using these parameters defined in the formulas.
Example: Let say I have defined below standard value key and parameters. ZSAP1 ➢ Machine time (Hours) Z0001 ➢ Labor time (Hours) Z0002 ✓ Capacity Formula can be defined as follows. Z0001 * Operation quantity / Base quantity ✓ Operation quantity is defined in Order. ✓ Base quantity defined in Routing. Let say for material “Wheel” the following settings are maintained in routing. Base quantity 10 PCs Machine time 30 Mins Labor time 30 Mins When user creates production order of 100 PCs system calculate capacity required as follows, Capacity required (in Mins) = 30 mins (Z0001) * 100 (Operation quantity) / 10 (Base quantity) = 300 mins.
Default Values:
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Fields appearing in this screen are used default the values in routing which reduces time required to reenter the value again in routing. When user enter machine time for this work center in routing as 100 its unit of measure will come automatically as MIN which is copied from work center. Similarly when you enter this work center in routing for a particular operation, system automatically copy the control key from work center. If “Reference Indicator” is activated value from work center will be copied and also cannot be changed in routing. If we don’t want these value copied to routing by default, no need to enter any values here. For example Control key, o A work center Lathe ,we have maintained control key PP01 o Let say this work center is used in different products. o If you don’t want to use PP01 for all products, do not activate “reference indicator”.
Capacity: Capacity screen in work center contains below information. ✓ Available capacity ✓ Formula to calculate required capacity ✓ Shift sequences
This is explained in details in next tutorial.
Scheduling: Scheduling screen in work center contains below information. ✓ Formula to calculate scheduling time ✓ Interoperation times like “Move time”, wait time etc.
Costing: • •
In costing screen work center will be assigned with cost center. Each cost center will have activity types and its formulas to calculate activity cost.
This will be explained with details in next tutorial. Here assignment of work center and cost center can be N: 1