Subject: SAP-for-Manufacturing
In manufacturing environments, complex products often consist of multiple components assembled together to form a finished good. Efficient planning and management of these assemblies are crucial to ensure timely production, optimal inventory levels, and smooth supply chain operations. SAP provides robust functionality within its Production Planning (PP) module to handle planning with assemblies, enabling manufacturers to coordinate component availability and streamline production processes.
An assembly is a semi-finished product or subassembly composed of multiple components that are put together before becoming part of a final product. Unlike finished goods, assemblies are typically produced internally and consumed as components in other production orders.
Examples:
The BOM is the foundation for planning assemblies in SAP. It defines the hierarchical structure of assemblies and their components, including quantities and usage.
Assemblies are defined as materials with specific material types (e.g., semi-finished goods). Their master data include procurement type, planning parameters, and production versions.
SAP supports various planning strategies relevant to assemblies:
MRP runs consider assemblies in demand planning by exploding the BOM:
A consumer electronics manufacturer used SAP assembly planning to manage the production of smartphone subassemblies like camera modules and display units. By accurately planning these assemblies within MRP, the company reduced assembly lead times by 20% and lowered inventory holding costs by 15%, resulting in faster time-to-market and higher customer satisfaction.
Planning with assemblies is a critical aspect of manufacturing complex products. SAP’s integrated approach, leveraging BOMs, material master data, production strategies, and MRP, helps manufacturers synchronize component and assembly production. This coordination leads to optimized inventory, reduced lead times, and more efficient manufacturing processes. Mastering assembly planning in SAP equips manufacturing organizations to meet customer demands effectively while maintaining operational excellence.
Tags: SAP-for-Manufacturing, Planning with Assemblies, BOM, MRP, Production Planning, SAP PP, Assembly Management