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SAP PP-PI selection over SAP PP/ SAP REM for FMCG manufacturing process

Introduction:

This blog post is mainly to trigger a thought for FMCG industry where in many industries today if we see closely, all three production types are used (SAP REM – SAP Discrete – SAP PP-PI) or the combination of two or three. If you see the major process flow in FMCG can be divided into 3 processes as Mixing – Bottling – Packaging.

In few industries SAP PP-PI is used through out for all the phases. In few industries SAP REM is used and In few industries SAP Discrete manufacturing is used. All three production types are recommended in bottling and packaging lines, but mixing lines functionalities mapped easily to SAP PP-PI.

With this blog post, trying to focus more on pros and cons of the thought of having SAP discrete manufacturing in mixing lines instead of SAP PP-PI.

Description:

Both Production Orders and Process Orders can be used in SAP platforms to record production execution data.This Blog post reviews the benefits of each order types.One type of order should be used in the FMCG Global Reference Model to reduce complexity and enable comparisons internally and externally.

 Assumptions:

  • Not getting into specific used case, trying to simplify this business process to generic FMCG industry
  • Trying to restrict the discussion point with respect to production order types and key comparison features ( not every basic functionality of SAP)
  • This blog is not to provide any SAP PP configuration / master data / transaction data process. This is to bring to the notice of manufacturing consultants on FMCG mixing process mapping in SAP via SAP PP-PI and advantages of the same.

SAP Discrete Manufacturing – Production Orders:

Benefits

  • Master data maintenance is simple compared with process order – process
  • We can use trigger point to trigger rework operation in primary order or like rework order with primary production order
  • Order split can be done to execute order quantity in multiple lines based on requirement in shop floor

Risks

  • Control recipe, Process instruction & messages cannot be used & control systems are required to do the same
  • Material quantity calculation is not possible, to be done in automation control system and print pick list through control system

Organization Impacts

  • Depend on control system environment
  • Optimized material quantity calculation not updated to production orders as this step cannot be performed in production orders
  • Integrate with external system or manually update production orders for functionality which can be handled through process orders

 

SAP PP-PI : Process Orders

Benefits

  • Define the shop floor manufacturing flow with master recipe using operations & phases
  • Maintain the relationship between phases of process manufacturing like linking of SS, SF etc – It helps to do overlapping of process execution
  • Maintain the control recipe helps us to control the process with integration to external system
  • Process instructions & Process messages can be sent to operator monitor
  • Material quantity calculation can be done based on batch characteristics value

Risks

Disadvantage

  • Trigger point functionality cannot be used
  • Order split functionality cannot be possible

Organization Impacts

Usage of process order in the system helps the organization in terms of mapping physical process flow with system flow. There is no impact as we can use process order in line with production order in case of not using above benefits mentioned.

 

Recommendation:

  • Recommending Process order as better method to adopt in FMCG practice as most of manufacturing processes are process oriented and controlled by control systems
  • Today most of complex control systems are used in automation layer where Material Quantity Calculation, print pick list etc which is done can be very well done in process orders
  • Material quantity calculation in process order helps to update optimized planned quantity in order instead someone feeding the data manually back to order
  • Process orders can handle additional functionality in terms of control recipe, process instruction & messages delivery, MQC etc when compared against production orders

Thank you for going through the Blog and share the feedback.

Best Regards,

Sharat Sugur

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