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Former Member

What Are The Benefits of Production Order Confirmation By Work Center?

Hello SAP experts.  I went from one company to another.  Both use SAP.  However, at my previous company, the operators performed confirmations after they completed each work center.  At the company I'm at now, operators don't confirm at any operations and the planners just manually confirm the production order when it is complete.  I would like to adopt the strategy my previous company used and confirm at each operation.  I just need a little help proving my case and the benefits of it.  I only know of the basic benefits and there may be plenty more that I am not aware of.  Please tell me any that you think would benefit us.

I know one is that we don't measure productivity at the operator level.  We only measure productivity as standard hours booked VS total man hours worked.  If we confirmed at each work center we would be able to see standard hours booked vs actual man hours worked.  With that we could then start tracking productivity at the operator level and when standard doesn't match actual, we can start figuring out why.

In addition, if we were to do this, I would like to see components being flushed at the work center level when the work center is confirmed.  Right now the components are backflused when the work order is complete.  Regardless of if the components were consumed at the first operation or the last operation.  I would like to see my components consumed out of inventory real time.

I know another benefit is that we can start using capacity planning at the work center level.  I could then create a dispatch report instead of having the planners create manual schedules out of excel.

This is really all I have.  What could be some more cost and intangible benefits??

Please help and thanks in advance.

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4 Answers

  • Best Answer
    Jan 09, 2015 at 06:32 AM

    Hello Reginald Eaden  


    In Production Order confirmation can be entered at both order header level and Operation level.


    T code for order confirmation CO15

    T Code for Operation Confirmation CO11N.


    Type of confirmation is depends on your business.

    If your business has complex operation and if more WIP at work center, can use Operation Confirmation.

    You have the following options:

    •   To confirm quantities, durations, activities, or personnel data, enter a time ticket confirmation or a progress confirmation.  
    •   To make a confirmation at a particular point in time (for example, at the start of setup or the finish of processing), enter a confirmation for a time event.  
    •   When you confirm time events, the system calculates the required duration. For example, the setup duration is the time between setup start and setup finish.

    By operation confirmation you may able to track the progress of the production order at operation level , which gives you WIP at each operation.

    Once you have entered a confirmation for an operation, you cannot confirm at order level. If you want to confirm the whole order, you must cancel the confirmation at operation level.

    Let me know If you have any queries.

    Regards

    Gopinath R

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  • Jan 09, 2015 at 08:44 AM

    Hi,

    Please go through the below mentioned link.

    Confirmations - Production Orders (PP-SFC) - SAP Library

    You can confirm the following data:

    Quantities

    You can confirm the quantity produced, the quantity of scrap that has occurred and a rework quantity. (This function does not apply to sub-operations).

    Activity data

    You can confirm the activities performed, for example setup time or machine time. You can also enter forecast values for individual standard values. These are used for determining the remaining activities and capacity requirements.

    The actual or planned evaluation of work can take place using a cost center (activity types assignment) or using a Business Process . For more information about the business process refer to Quantity Determination .

    Dates

    You can confirm when setup, processing or teardown were started or finished.

    Personnel data

    You can confirm the following data:

    The personnel number of the employee who carried out the operation

    The number of employees who carried out the operation

    Work center

    You can confirm at which work center the operation was carried out.

    Posting date

    A posting date is entered for every confirmation. The default value is today’s date You can however enter another date. On the basis of the posting period in which the posting date falls, the system determines the rate for settling activities.

    Goods movements

    You can enter planned and unplanned goods movements for every confirmation. For more information, refer to Goods Movements in Confirmations

    Reason for Variance

    If the actual values differ from the planned values due to unpredictable events (for example, machine breakdown), you can enter a key in the Reason field, which documents the reason for the variance.

    Note

    If you combine the reason for variance key with a user status, you can trigger a follow-on function automatically via the reason for variance (for example, sending a mail to the responsible MRP controller). You can combine reasons for variance with user statuses in Customizing.

    Update usage counter for equipment PRTs

    The usage counter is updated in relation to the confirmed quantity for equipment PRTs that are assigned to the operation and for which a measuring point has been defined.

    Long text:

    You can enter a long text to describe a confirmation.

    Please close the thread if its resolved and kindly select the right answer.

    Regards,

    VVJ

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    Former Member
    Jan 09, 2015 at 06:02 PM

    Both of these answers are very helpful.  Many Thanks to both of you.

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  • Jan 09, 2015 at 09:09 PM

    Hi Reginald,

    Capacity planning, operation level yield, backflush, activity etc are the advantages.

    You can also get the setup time or machine time at each work centre, shift sequences / employee at each work centre can also be traced. If there are alternative routes to complete the job, reports can be drawn to get this traceability if you go for operation level confirmation and goods movement posting.

    You can also check with finance if they want to track activity costing at operational level. This is currently not happening as users are entering order level confirmation.

    But, before all these, you should check internally whether production team have sufficient resources to track and input the same. There must be some reason why they didn't go for this option.

    Thanks

    Prem

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    • Hi Reginald,

      Of course finance is generally keen on these areas. If any of your work center is critical / consumes more cost, then finance would like to get the activity cost. As u said the company is purchased - in some cases there will be tie up with banks who fund such purchases and the banks will be keen on cost reports esp if there's high value consumptions happening at a particular work center.

      In terms of finance, another advantage is, your month-end WIP will be little more accurate. Currently order level confirmation is happening. If there are work in progress orders exists at month end, there will be consumptions without any output, as the order open. If you maintain operation level confirmation, then whatever finished will be posted and the wip will be much reduced.

      Thanks

      Prem