Reduction of Routings Operations for Production Orders

[Former Member]

Hi,

We would like to reduce the number of operations(from 300 to 100) in our routings but not affecting the costs.

We have 500 active routings and 2500 material parts on std costing.

What will be the major tasks? Anyone has done this? Please share your painful experiences if any.

Thanks,

CW

[former_member196398]

CW,

To me this looks like a huge task should be treated as a small project on its own. To me matching the standard cost estimates is going to be the challenge,

Could you please let the forum know as what is the key driver for this decision now, and why intially it was designed with too many operations?

Regards,

Prasobh

[Former Member]

Hi Prasobh,

The worst thing is that we are given 3 mths to implement this...

Rgds,

CW

[Former Member]

Teo,

Sorry for the misunderstanding. It is a huge task if you want to make them same. You need to prepare formulas and totals in your spreadsheet to check them and fine tune them...

Hope my answers are helpful to you, in which case please reward points and close this thread.

Please come back if you have any specific problems in your excercise.

regards

Ram

[Former Member]

Teo,

Archiving routings ? There should not be any problem in archiving...

Regards

Ram

[Former Member]

Not archiving but rather how difficult to ensure the standard costs are still the same after the changes...

Rgds,

Teo

[former_member184627]

Hi,

Can you try to use sub-operations to reduce the routing operations.

Regards,

SDS

[Former Member]

Hi SDS,

Any examples to illustrate?

Thanks,

Teo

[Former Member]

Teo,

For existing orders - if not already processed partially then one way would be to Read the Master data once again. If already partially confirmed the orders then you wont be able to do that.

Well if want to change you need to draw a line for cut-off. Or else you have to wait till all the existing orders are completed and then go for the change. IF you wanted to maintain the same costs after reducing the operations then how does it affect ? The standard cost of the material is going to remain the same before and after the change.

Regards

Ram

[Former Member]

Ram,

You are right! The standard cost will still have to be the same after the routings change.

Any difficulties in achiving that?

Thanks,

Teo

[Former Member]

Teo,

Yes this is a very painful task. I have done this in one of my projects. The best approach for this would be to:

1) down load all the routing group and group counters along with all the operation details including activity times into a spreadsheet.

2) Identify the operations which are to be deleted. Some operations may be combined. Do all the manipulations in your spread sheet.

3) Delete the routings existing in the system totally. Do not try to change them. It would be a great mess. Delete them by using transaction CA98 or CA99. Do not worry about existing orders which have this routing. That would not be a problem since operations are already copied into the orders.

4) Create new routings for the materials using a LSMW (your own or standard shipped by SAP).

5) Create the standard cost estimate once again in mass using CK40N.

Hope this helps...reward points if helpful.

Regards

Ram

[Former Member]

Hi Ram,

Even after the change, some of the existing production orders will adopt the old routings(unlikely to change) and due to change in activity prices for the new routings, this will definitely have an impact on those existing production orders that will pick up the new activity prices which is incorrect.

Any ways of eliminating this differences instancely?

Thanks,

Ram

[Former Member]

Hi,

The control key of the operations determines whether the op is to be costed or not.

You need to define the routings in such a way that all the operations for which material assignments are there need to be costed by selecting the operation control key costing indicator.

Regards,

nandha

[Former Member]

Hi Nanda,

By setting the operations to be non-costed doesn't help. Our objective is to reduce the operations in the routings however the costs will need to be adjusted in such a way that it will still be the same after the change.

What efforts do you see in achiving what we want?

Thanks,

Teo