This blog is regarding the Product Specification cycle in SAP BYD system. Product specification in simple words “the list of the properties of the product which can be customized as per to the customer requirement.”
Below are the required steps for Product Specification type process in an industry.
A customer gives a requirement which can be documented under a product specification which gives the unique properties of the finished good which the customer requirement.
1. Product Specification
The sales representative prepares a product specification by going into Product Development work center.
This is the place where the Sales Representative enters the information as per to the requirement of the customer. This step describes individual customer requirement or product variants. Here the sales representative enters the Product ID which in turn populates the Product Properties linked to the Product ID in the Product Model.
The various specifications can be selected and some special requirement can be captured through additional notes or attachments.
After filling up the Product Specification the Sales representative releases it so that it cannot be edited hence forth, it means the requirement has been frozen.
2. Create a Bill of Material
Once the sales order is completed the production department can create variant of the existing bill of material with the reference of the product specification.
In Product Specification cases the material can be valuated as per to the Product Specification.
Select "2-Product Specification" in Valuation Level Type.
A different variant of Bill of Material is not required in every case. Here if the customer requirement is something which is different and has never been incorporated then a new variant needs to be created.
The variant creation specifically depends on permutation and combination of the product specification properties.
For the requirements where we there are less changes in the Finished good, we can create a Bill of Material without the reference of a Product Specification.
This BOM can be reused for multiple customer requirements and product specifications.
In the Bill of Material the Product Specification of the header material is copied to the item level materials as well. This gives an advantage to procure or manufacture products with the reference to the product specification right from the lowest level i.e. Item Level.
For this we have to maintain "Optional Specified Stock" or "Mandatory Specified Stock" in the general view of the Material Master under Identified Stock Type.
3. Bill of Operation
After the Bill of Material is created the Bill of Operation is prepared for the new variant. Please note that the bill of operation does not have a product specification reference attached to it. Since a new variant of the Bill of Material is created for the specific product specification there might be some process changes as well in the preparation of the finished product.
A new bill of operation is created for the specific variant of the bill of material.
Here as well if the production process has minor or negligible changes then the same bill of operation can be used for the Bill of Material.
4. Production Model
Once the Bill of Operation has been created the Production Model for the specific product specification can be created and maintained. There is an option in the General Tab of Production Model to specify the product specification. We can assign the new variant of Bill of Material and Bill of Operation to the Production Model and we can release the Production Model so that it can considered for further Production Planning activities.
5. New Model Cost Estimate
After the creation of the Production Model we can run cost estimate for the product. Cost estimate is used for estimating the internal cost of the product. We run cost estimate for the product and the cost estimate for the newly created BOM Variant is also simultaneously. Once the cost estimate is run we can release the same so that the value can be updated in the Material Master. This cost calculated is referred to as estimated cost and can be seen under estimated cost segment in the Material Master view. We can specify the Product Specification and the cost can be calculated for the specific specification.
6. Sales Order
Once the Product Specification step is completed next step is Sales order creation.
The sales order is the detailed specification of the customer requirements.
In SAP ByDesign we have an option of creating Product Specification directly from sales order screen. This Product Specification can be prepared for line items present in the sales order. Once the Product Specification is prepared successfully the Product Specification can be released and it is be visible in the sales order for the line item.
Here we can create different product specifications for every item of the sales order.
Once done the Sales order can be submitted.
7. Purchase Order and Production Order
Product specification can be handled in both the process i.e. External Procurement or In House Manufacturing with ease.
Once the Planning run is completed the system generates the required Production Order for in house manufactured parts and Purchase Order for Externally Procured Parts.
For Production Orders the Product Specifications are mentioned in the Production Order for better understanding for the Shop Floor Staffs.
Here Product Specification information is also maintained in the shop floor print documents as well. In the Production Order we can create an Identified Stock ID for the finished product.
Once the Production Order is confirmed the inventory is updated for Goods Receipt item as a reference of the Product Specification and Identified Stock ID.
For Purchase orders we have an option in the Purchase Order screen to confirm Product Specification which the Purchasing team will execute for every Purchase orders. This is basically a check by which the Purchasing team confirms that the Product being asked from the vendor is created after considering the Product Specification. Once the Product is received from the Vendor at the time of Goods Receipt we can create an identified stock ID for the specific Product Specification for better tracing of the goods related to the Product Specification.
Maintenance of Identified Stock ID should be done in reference to the Product Specification so that tracking at the stock overview screen becomes simple. This identified stock ID is also used at the time outbound delivery as well.
Abhishek Ashish
Below are the required steps for Product Specification type process in an industry.
A customer gives a requirement which can be documented under a product specification which gives the unique properties of the finished good which the customer requirement.
1. Product Specification
The sales representative prepares a product specification by going into Product Development work center.
This is the place where the Sales Representative enters the information as per to the requirement of the customer. This step describes individual customer requirement or product variants. Here the sales representative enters the Product ID which in turn populates the Product Properties linked to the Product ID in the Product Model.
The various specifications can be selected and some special requirement can be captured through additional notes or attachments.
After filling up the Product Specification the Sales representative releases it so that it cannot be edited hence forth, it means the requirement has been frozen.
2. Create a Bill of Material
Once the sales order is completed the production department can create variant of the existing bill of material with the reference of the product specification.
In Product Specification cases the material can be valuated as per to the Product Specification.
Select "2-Product Specification" in Valuation Level Type.
A different variant of Bill of Material is not required in every case. Here if the customer requirement is something which is different and has never been incorporated then a new variant needs to be created.
The variant creation specifically depends on permutation and combination of the product specification properties.
For the requirements where we there are less changes in the Finished good, we can create a Bill of Material without the reference of a Product Specification.
This BOM can be reused for multiple customer requirements and product specifications.
In the Bill of Material the Product Specification of the header material is copied to the item level materials as well. This gives an advantage to procure or manufacture products with the reference to the product specification right from the lowest level i.e. Item Level.
For this we have to maintain "Optional Specified Stock" or "Mandatory Specified Stock" in the general view of the Material Master under Identified Stock Type.
3. Bill of Operation
After the Bill of Material is created the Bill of Operation is prepared for the new variant. Please note that the bill of operation does not have a product specification reference attached to it. Since a new variant of the Bill of Material is created for the specific product specification there might be some process changes as well in the preparation of the finished product.
A new bill of operation is created for the specific variant of the bill of material.
Here as well if the production process has minor or negligible changes then the same bill of operation can be used for the Bill of Material.
4. Production Model
Once the Bill of Operation has been created the Production Model for the specific product specification can be created and maintained. There is an option in the General Tab of Production Model to specify the product specification. We can assign the new variant of Bill of Material and Bill of Operation to the Production Model and we can release the Production Model so that it can considered for further Production Planning activities.
5. New Model Cost Estimate
After the creation of the Production Model we can run cost estimate for the product. Cost estimate is used for estimating the internal cost of the product. We run cost estimate for the product and the cost estimate for the newly created BOM Variant is also simultaneously. Once the cost estimate is run we can release the same so that the value can be updated in the Material Master. This cost calculated is referred to as estimated cost and can be seen under estimated cost segment in the Material Master view. We can specify the Product Specification and the cost can be calculated for the specific specification.
6. Sales Order
Once the Product Specification step is completed next step is Sales order creation.
The sales order is the detailed specification of the customer requirements.
In SAP ByDesign we have an option of creating Product Specification directly from sales order screen. This Product Specification can be prepared for line items present in the sales order. Once the Product Specification is prepared successfully the Product Specification can be released and it is be visible in the sales order for the line item.
Here we can create different product specifications for every item of the sales order.
Once done the Sales order can be submitted.
7. Purchase Order and Production Order
Product specification can be handled in both the process i.e. External Procurement or In House Manufacturing with ease.
Once the Planning run is completed the system generates the required Production Order for in house manufactured parts and Purchase Order for Externally Procured Parts.
For Production Orders the Product Specifications are mentioned in the Production Order for better understanding for the Shop Floor Staffs.
Here Product Specification information is also maintained in the shop floor print documents as well. In the Production Order we can create an Identified Stock ID for the finished product.
Once the Production Order is confirmed the inventory is updated for Goods Receipt item as a reference of the Product Specification and Identified Stock ID.
For Purchase orders we have an option in the Purchase Order screen to confirm Product Specification which the Purchasing team will execute for every Purchase orders. This is basically a check by which the Purchasing team confirms that the Product being asked from the vendor is created after considering the Product Specification. Once the Product is received from the Vendor at the time of Goods Receipt we can create an identified stock ID for the specific Product Specification for better tracing of the goods related to the Product Specification.
Maintenance of Identified Stock ID should be done in reference to the Product Specification so that tracking at the stock overview screen becomes simple. This identified stock ID is also used at the time outbound delivery as well.
Abhishek Ashish
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