C_TS422_2023 Exam Dumps - SAP Certified Associate - SAP S/4HANA Cloud Private Edition, Production Planning and Manufacturing

You can use mass processing to set production orders to technically complete. Mass processing allows you to perform the same action for multiple production orders at once, such as changing the status, printing, or confirming. You can use the Set to Technically Complete action to close the production orders that are finished and do not require any further processing. This action updates the order status to TECO and prevents any further changes to the order12.

You can use trigger points to automatically create rework orders via confirmation. Trigger points are predefined events that occur during the execution of a production order, such as reaching a certain operation or quantity. You can assign actions to trigger points, such as creating a notification, a rework order, or a quality inspection. For example, you can use a trigger point to automatically create a rework order for defective goods when you confirm an operation. The rework order is linked to the original order and inherits the relevant data from it3 .

References:

1: SAP Help Portal: Mass Processing

2: SAP S/4HANA Production Planning and Manufacturing Certification Guide, Chapter 7: Process Orders

3: SAP Help Portal: Trigger Points

: SAP S/4HANA Production Planning and Manufacturing Certification Guide, Chapter 6: Production Orders

You can limit the validity of a BOM by plant and by period. The plant determines the organizational area of validity for the BOM, and you can assign the same BOM to different or further plants if the prerequisites are met. The period of validity for a BOM is restricted by the valid-from date and the valid-to date in the BOM header and item, which determine when the BOM becomes effective and when it ends. References: Validity of Bills of Material, BOM Item Validity

 The work center that represents the production line for repetitive manufacturing is maintained in two places: the repetitive manufacturing profile and the production version. The repetitive manufacturing profile is a control parameter that defines the basic settings for repetitive manufacturing, such as the planning type, the backflushing method, the confirmation type, and the production line determination. The production version is a combination of a bill of material (BOM) and a routing or a rate routing that specifies how a material is produced. The production version also contains the work center that represents the production line for the material. The production version is assigned to the material master and is used in the planning and execution of repetitive manufacturing. References: Repetitive Manufacturing Profile | SAP Help Portal, Production Version | SAP Help Portal, Make-to-Stock Repetitive Manufacturing | SAP Help Portal.

Materials that have a negative quantity in a bill of material or in a recipe are those that are produced in addition to the main product during a production process. They are either sold or disposed of, and their costs are apportioned among the main product and the co-products. By-products are materials that have a low value compared to the main product and are usually not planned in advance. Co-products are materials that have a high value compared to the main product and are usually planned in advance. Waste products are materials that have no value and are discarded or recycled. References: Bill of Material (BOM), Test sap pp 2020 s4 hana - DAYPO

A production planning run in Advanced Planning (PP/DS) is a process that optimizes the supply and demand situation for a set of materials and locations within a given planning horizon. The possible results of a production planning run are:

Planned Order: A planned order is a proposal for internal production or external procurement of a material. A planned order can be converted into a production order or a purchase order, depending on the source of supply. A planned order can also be firmed, which means that it is not changed or deleted by subsequent planning runs.

Production Order: A production order is a document that defines the operations, materials, resources, and costs required to produce a material. A production order is created from a planned order or directly by the user. A production order can be released, confirmed, and settled as part of the production process. References: [SAP S/4HANA Production Planning and Manufacturing Certification Guide], page 181; [SAP Help Portal: Production Planning Run].

The difference between order-related and product-related COC is mainly in the level of cost object that is used to collect and analyze the costs of production. In order-related COC, each production order is a cost object that carries its own plan, target, and actual costs. In product-related COC, a product cost collector is a cost object that aggregates the costs of multiple production orders for the same product or product variant. The advantages and disadvantages of each approach depend on the production scenario and the reporting requirements. Some of the factors to consider are:

In product-related COC, all costs are debited and credited to a product cost collector. This means that the production orders linked to the product cost collector do not have any cost segments and do not show any variances. The product cost collector is used for variance calculation and settlement. This simplifies the cost accounting process and reduces the number of cost objects to be managed. However, this also means that the cost details of individual production orders are not available for analysis. Product-related COC is suitable for mass production of standard products with low variance and high volume12.

Order-related COC is beneficial in a flexible production environment where each production order has different characteristics, such as lot size, routing, material components, orquality specifications. Order-related COC allows for a detailed analysis of the cost and performance of each production order and enables a more accurate allocation of overhead costs. However, order-related COC also requires more effort and resources to maintain and process the cost segments and variances of each production order. Order-related COC is suitable for make-to-order or engineer-to-order scenarios where each production order is unique and customized12.

Product-related COC is used in manufacturing for co-products, which are products that are produced simultaneously from the same production process and have a relatively high sales value. Co-products share the joint costs of the production process based on a predefined apportionment structure. Product-related COC allows for a consistent and transparent allocation of the joint costs to the co-products and avoids the problem of negative variances that may occur in order-related COC. Product-related COC is suitable for process industries where co-products are common, such as chemical, pharmaceutical, or food industries34.

References:

1: SAP Help Portal: Production Orders in Cost Object Controlling

2: SAP S/4HANA Production Planning and Manufacturing Certification Guide, Chapter 6: Product Cost by Order

3: SAP Help Portal: Product Cost by Period

4: SAP S/4HANA Production Planning and Manufacturing Certification Guide, Chapter 7: Product Cost by Period

 In make-to-order production, the production planning is initiated only when a sales order is received. The system does not perform a net requirements calculation between individual sales orders or with the make-to-stock warehouse stock1. Therefore, option B is correct. Additionally, production orders are created with sales order reference, which means that the costs and revenues of the sales order are settled at the end of the production process2. Therefore, option E is also correct. The other options are not valid for make-to-order production. Storage location MRP areas are not required for sales-order-specific stock, as the stock is managed at the sales order level3. The reduction of make-to-order stock and requirements does not occur on delivery, but on goods issue to the sales order1. Sales orders do not have to be ATP-confirmed to be saved, as the availability check is optional and can be performed later. References: 1: Strategies for Make-to-Order (MTO) Production | SAP Help Portal(https://help.sap.com/docs/SAP_S4HANA_CLOUD/2bba750d1e124e1ea2a039bb1cd9b6c5/3b24bf53d25ab64ce10000000a174cb4.html) 2: Outlining Make-to-Order Production - SAP Learning(https://learning.sap.com/learning-journeys/discovering-the-basics-of-sap-s-4hana-manufacturing/outlining-make-to-order-production_be788c36-6fd4-4f1e-b054-635435247918) 3: Storage Location MRP Areas | SAP Help Portal. : Availability Check and Requirements in Sales andDistribution Processing | SAP Help Portal.

You can create a production order using the following methods:

Create by order release: You can create a production order by releasing a planned order in the material requirements planning (MRP) run. The system converts the planned order into a production order and assigns a production order number. You can use the Manage Production Orders app or the transaction CO40 to create production orders by order release.

Create in Kanban process: You can create a production order in the Kanban process, which is a lean manufacturing method that uses pull signals to trigger production. The system creates a production order when a Kanban status changes from EMPTY to WAITING. You can use the Kanban Board app or the transaction PK13N to create production orders in the Kanban process. References: SAP Help Portal, Manage Production Orders in SAP S/4HANA Manufacturing

You can exclude a material from the MRP run by using a specific material status or a specific MRP type. A material status is a user-defined indicator that can be assigned to a material master record to control the procurement and planning activities for the material. For example, you can define a material status that blocks the material from being planned by MRP. An MRP type is a parameter that defines how a material is planned by MRP. For example, you can use the MRP type ND (No Planning) to exclude the material from the MRP run.

References: [SAP S/4HANA Production Planning and Manufacturing Certification Guide], page 87; [SAP Help Portal: Material Status] and [SAP Help Portal: MRP Type].

Alternative item strategies are used to define how the system selects the alternative items in a BOM during the planning run or the order creation. The following alternative item strategies are available in SAP S/4HANA:

Manual maintenance: The system does not select any alternative item automatically. You have to manually select the alternative item in the BOM or the order. This strategy is useful when you want to have full control over the alternative item selection and when the selection depends on factors that are not known to the system1

100% check: The system checks the availability of all alternative items and selects the one with the highest priority and sufficient stock. If none of the alternative items has enough stock, the system selects the one with the highest priority and the smallest shortage quantity. This strategy is useful when you want to optimize the material availability and reduce the procurement costs2

First in First out (FIFO): The system selects the alternative item with the highest priority and the earliest availability date. If several alternative items have the same availability date, the system selects the one with the highest priority. This strategy is useful when you want to use the oldest stock first and avoid obsolescence3

Simultaneous: The system selects all alternative items simultaneously and distributes the requirement quantity among them according to the usage probability. The usage probability is a percentage value that indicates how often an alternative item is used. This strategy is useful when you want to balance the demand and supply of multiple alternative items and when the usage probability is known.

References:

Alternative Item Group - SAP Help Portal

Alternative Item Group - SAP Help Portal

Alternative Item Group - SAP Help Portal

[Alternative Item Group - SAP Help Portal]

The order-type-dependent parameters are configuration settings that control various aspects of production order processing, such as number range, scheduling type, availability check, costing variant, confirmation parameters, and so on. These parameters are assigned to a production order type, which is a key that defines the characteristics and business rules of a production order. The order-type-dependent parameters affect the following business processes:

Check material availability: The availability check determines whether the required materials and capacities are available for the production order. The availability check is controlled by the checking rule and the checking group, which are defined in the order-type-dependent parameters. The checking rule specifies which stocks, receipts, and issues are considered in the availability check. The checking group determines how the system responds to the availability situation, such as issuing a warning or an error message, or rescheduling the order.

Schedule production orders: The scheduling of production orders calculates the planned dates and times for the operations and the order. The scheduling is controlled by the scheduling type and the scheduling parameters, which are defined in the order-type-dependent parameters. The scheduling type determines whether the system performs forward or backward scheduling, and whether it considers the basic dates or the production dates. The scheduling parameters determine how the system calculates the operation durations, interoperation times, and floats. References: [SAP S/4HANA Production Planning and Manufacturing Certification Guide], page 123; [SAP Help Portal: Order-Type-Dependent Parameters].

 Dependent requirements are the requirements for components that are derived from the requirements for the finished product or assembly. They are created when an independent requirement is created for the finished product or assembly, such as a planned independent requirement, a sales order, or a stock transport order. They are also created on assembly level during the planning run, when the system explodes the bill of material (BOM) of the finished product or assembly and calculates the requirements for the components based on the BOM structure and quantity. Dependent requirements can be created for multilevel or single-level BOM structures, depending on the planning strategy and the BOM explosion level. References: Dependent Requirements | SAP Help Portal, Material Requirements Planning (PP-MRP) | SAP Help Portal.

Lead time scheduling is a method of scheduling production orders that calculates the start and finish dates of each operation based on the operation duration, interoperation time, and other time elements. The time elements that are relevant for lead time scheduling of a production order are:

Setup time: The time required to prepare the work center for the operation, such as changing tools, adjusting machines, or cleaning the work area.

Processing time: The time required to perform the operation, such as machining, assembling, or testing the product.

Teardown time: The time required to restore the work center to its original state after the operation, such as removing tools, resetting machines, or disposing of waste.

Interoperation time: The time between two consecutive operations, such as transportation, waiting, or inspection time.

Float before production: The time buffer before the scheduled start date of the production order, which can be used to compensate for delays or changes in the production plan.

Float after production: The time buffer after the scheduled finish date of the production order, which can be used to compensate for delays or changes in the production plan.

The opening period and the total replenishment lead time are not relevant for lead time scheduling of a production order. The opening period is a parameter that defines the earliest possible start date of a production order, based on the material availability date and the planning time fence. The total replenishment lead time is a parameter that defines the total time required to procure or produce a material, from the time the requirement is identified until the time the material is available for use.

References: [Production Planning with SAP S/4HANA], pages 177-179; [SAP Help Portal: Lead Time Scheduling].

The MRP planning file is a list of all materials relevant to the planning run. The system sets an entry in the planning file for a material when there is a change that affects the material requirements planning, such as changes to stock, requirements, receipts, or MRP data in the material master. The following processes lead to an entry in the MRP planning file:

Changing the procurement type in the product master, which determines how the material is procured (internally or externally) and affects the MRP procedure and lot-sizing procedure.

Changing the stock in inventory management, which changes the stock/requirements situation of the material and triggers a net requirements calculation.

Changing the purchasing contract in materials management, which creates a purchase requisition as a receipt element and affects the availability of the material. References: Planning File, Planning File Entries for MRP Areas, SAP Exam C_TS422_1909 Topic 10 Question 10 Discussion

Increase the capacity supply in a time-phased interval: You can use the capacity planning table or the capacity planning board to increase the available capacity of a resource by changing the shift sequence, the shift duration, or the number of individual capacities. You can also use the capacity leveling function to distribute the capacity requirements over a longer time horizon. This way, you can avoid capacity overloads and create a balanced capacity load.

Determine a time period with available capacity on the planning board: You can use the planning board to visualize the capacity load and the capacity availability of a resource in a graphical Gantt chart. You can use the filter and zoom functions to focus on a specific time period and resource. You can also use the capacity evaluation function to display the capacity situation in a tabular or graphical form. This way, you can identify the time periods with available capacity and plan the operations accordingly.

Form optimum sequence to reduce setup times: You can use the setup matrix or the setup group key to define the setup times and the setup categories for a resource. You can also use the setup optimization function to determine the optimum sequence of operations that minimizes the total setup time. This way, you can reduce the capacity consumptionand increase the throughput of the resource. References: Identifying the Basic Principles and Tools of Capacity Planning; SAP Help Portal; [SAP S/4HANA Production Planning and Manufacturing Certification Guide], page 82.

One-off events: These are special events that affect the demand for a product, such as promotions, holidays, or product launches. You can use the one-off events function in SAP S/4HANA to create and maintain events and assign them to products. The system considers the events when generating the forecast and adjusts the demand accordingly.

Past sales order quantities: These are the historical data of the actual sales orders for a product. You can use the past sales order quantities as the basis for forecasting the future demand. The system applies statistical methods and algorithms to analyze the past sales order quantities and identify the trends, patterns, and seasonality of the demand.

Market intelligence: This is the external information that influences the demand for a product, such as market research, competitor analysis, or customer feedback. You can use the market intelligence function in SAP S/4HANA to import and integrate market data from various sources into the forecast. The system adjusts the demand based on the market intelligence data and the weighting factors that you define. References: Exploring the Steps of Supply Chain Planning; SAP S/4HANA Production Planning and Manufacturing II, Unit 2: Demand Management; [SAP S/4HANA Production Planning and Manufacturing Certification Guide], page 76.

You can select the following standard item categories inside a bill of material (BOM):

Variable-size item: This item category is used for materials that have variable dimensions, such as pipes, wires, or fabrics. The system calculates the quantity of the variable-size item based on the formula and the dimensions entered in the BOM. You can also use the variable-size item to define a scrap percentage for the material.

Non-stock item: This item category is used for materials that are not managed in inventory, such as consumables, services, or subcontracting items. The system does not create any reservations or stock movements for the non-stock item. You can use the non-stock item to trigger purchasing requisitions or purchase orders for the material. References: Bill of Material Item Category; Bills of Material in Production Planning

 A phantom assembly is a material that is not physically produced, but its components are directly consumed in the production of a higher-level material. To set up a material as a phantom assembly, you need to do the following steps:

Define the special procurement type as 50 (phantom assembly) in the material master of the phantom assembly. This indicates that the material is not procured or produced, but its components are exploded in the BOM of the higher-level material.

Change the item category of the phantom assembly in the BOM of the higher-level material to N (phantom item). This indicates that the phantom assembly is not relevant for production order or MRP, but its components are.

Alternatively, you can change the phantom item indicator for the phantom assembly in the BOM of the higher-level material to X (phantom assembly). This has the same effect as changing the item category to N, but it also allows you to use the same BOM for different purposes, such as costing or sales. References: [SAP S/4HANA Production Planning and Manufacturing Certification Guide], page 68; [SAP Help Portal: Phantom Assembly].

The control cycle is the master data object that governs the relationship between supply source and demand source in the Kanban process. The control cycle defines the following data for Kanban production:

The number of Kanban containers and the quantity per container or per call item

The basic data required for automatic Kanban calculation, if necessary

The replenishment strategy, which determines how the supply source replenishes the demand source, such as in-house production, external procurement, stock transfer, or assembly

The print control, which determines how the Kanban cards are printed, if necessary

The delivery address, which determines where the Kanban containers are delivered, if necessary

The process control, which determines the status sequence, the goods movement, the packing instruction, and the production call profile, if necessary1

The control cycle is created and maintained using the app Manage Kanban Control Cycles or the transaction PKMC. The control cycle is assigned to a material and a plant, and can be split into different segments for different supply sources or demand sources2.

The other options are not correct for the following reasons:

Replenishment strategy (A): This is not a master data object, but a field in the control cycle that specifies the type of replenishment for the Kanban process. The replenishment strategy can be in-house production, external procurement, stock transfer, or assembly1.

Production supply area (B): This is a master data object that represents a physical or logical area where materials are supplied for production. A production supply area can be assigned to a material, a work center, or a production line. A production supply area is not directly related to the Kanban process, but it can be used to group materials or work centers for planning or reporting purposes3.

Rate routing (D): This is a master data object that defines the sequence of operations and the work centers for producing a material in repetitive manufacturing. A rate routing can be assigned to a material and a production version. A rate routing is not directly related tothe Kanban process, but it can be used to calculate the production rate and the lead time for in-house production.

References:

https://blogs.sap.com/2016/06/20/kanban-process/

https://blogs.sap.com/2018/04/11/kanban-process-in-s4-hana-1709/

You can achieve planning only for specific resources in Advanced Planning (PP/DS) by using a resource group. A resource group is a collection of resources that share the same characteristics and can be used interchangeably for production. You can assign a resource group to a product or a production version, and then use the resource group as a selection criterion in the planning board or the product view. This way, you can restrict the planning to only those resources that belong to the resource group. References: SAP S/4HANA Manufacturing for Planning & Scheduling - Implementation Guide, page 25; [SAP S/4HANA Production Planning and Manufacturing Certification Guide], page 79.

Backward scheduling is a method of determining the order dates for components from dependent requirements by starting from the requirement date of the finished product and working backwards through the production structure. Backward scheduling considers the following time elements:

Operation duration: This is the time required to perform an operation on a resource, such as a work center or a machine. Operation duration is influenced by various factors, such as the quantity, the lot size, the setup time, the processing time, the teardown time, and the operation scrap. Operation duration is subtracted from the requirement date of the finished product to determine the start date of the operation.

In-house production time: This is the time required to produce a material in-house, from the start of the first operation to the end of the last operation. In-house production time is influenced by various factors, such as the routing, the work center, the production version, and the scheduling margin key. In-house production time is subtracted from the start date of the first operation to determine the order start date of the material.

Backward scheduling does not consider the following time elements:

Total replenishment lead time: This is the time required to procure a material externally, from the creation of the purchase requisition to the receipt of the goods. Total replenishment lead time is influenced by various factors, such as the planned delivery time, the goods receipt processing time, the release time, and the scheduling margin key. Total replenishment lead time is used in forward scheduling, not backward scheduling, to determine the order dates for externally procured materials.

Planned delivery time: This is the time required to deliver a material from the vendor to the receiving plant. Planned delivery time is maintained in the purchasing info record or the material master record. Planned delivery time is a component of the total replenishment lead time, which is used in forward scheduling, not backward scheduling, to determine the order dates for externally procured materials. References: Backward Scheduling | SAP Help Portal, Scheduling | SAP Help Portal, SAP S/4HANA Production Planning and Manufacturing Certification Guide, page 77-78.