Integrated Business Processes with ERP Systems

CHAPTER 6

The Production Process

LEARNING OBJECTIVES

After completing this chapter you will be able to:

1. Describe the master data associated with the production process.
2. Identify the key steps in the production process and the data, documents, and information associated with them.
3. Effectively use SAP^® ERP to execute the key steps in the production process.
4. Effectively use SAP ERP to extract meaningful information about the production process.

The production process consists of the various steps and activities involved with the manufacture or assembly of finished goods and semifinished goods. Organizations implement a variety of production or manufacturing processes, depending on the type of material being produced and the manufacturing strategy used to produce it. Among the most common production processes are discrete, repetitive, and process manufacturing. Discrete and repetitive manufacturing involve the production of tangible materials such as cars, computers, and bicycles. Each unit produced is a “discrete” unit, meaning it is distinct from other units and it can be counted. Further, the component materials from which the unit is made, such as wheels and bolts in a bike, are identifiable. There is, however, a fundamental distinction between repetitive and discrete manufacturing. In repetitive manufacturing, the same material is produced repeatedly over an extended period of time at a relatively constant rate. In discrete manufacturing, the company produces different materials ...