114 Terp10 Unit 6 - Material Planning

Front 1

1. T/F - MRP uses the lot size key in the material master record to determine the quantity of a planned order.

Back 1

1. True

Front 2

2. T/F - BOMs are created and maintained as multi-level bills.

Back 2

1. False

Front 3

The base quantity, in the BOM header, specifies to which amount of the finished product the item quantities refer.

Back 3

1. True

Front 4

4. What is the difference between regenerative MRP and net change MRP? (2)

Back 4

1. Regenerative planning wipes existing schedules completely out
2. Net change re-plans it by looking at the differences from the previous runs

Front 5

5. What is a product group?

Back 5

1. It is a forecast group that sums all lower level components.

Front 6

6. List the options for running MRP (4)

Back 6

1. Total planning
2. Single-item planning Multilevel
3. Single-item planning Single-level
4. Single-item planning Interactive

Front 7

7. What is the difference between the stock requirements list and the MRP list? (2)

Back 7

1. Stock requirements list is dynamic
2. MRP is a snapshot.

Front 8

8. What is the difference between MRP and Consumption Based Planning? (2)

Back 8

1. Consumption is based on historical consumption (The Past).
2. MRP looks to the future.

Front 9

9. What is the result of an order completion confirmation?

Back 9

1. The confirmed quantity, the CNF (Finally Confirmed) status, and the actual costs are written in the production order.

Front 10

10. What happens, on the Stock Requirements List, when a planned order is converted to a production order: (2)

Back 10

1. For the finished product, the planned order goes away and production order replaces
2. For the components, the dependent requirement goes away and its shown as reserved.

Front 11

11. What is a work center? (3)

Back 11

1. It specifies where production ultimately takes place.
2. It is a specific geographic location in the plant.
3. It may refer to a specific machine or department in a plant.

Front 12

12. What is a routing? (2)

Back 12

1. Routings contain the steps that are necessary for production.
2. Routings include the relevant operations, sequence in which the routings occur, and work centers at which the operations are to be executed

Front 13

13. What transactions debit (Charge It) a production order? (3)

Back 13

1. Material withdraw
2. Confirmation
3. Sometimes Settlement

Front 14

14. What transactions credit a production order?

Back 14

1. Good Receipt
2. Settlement (if it takes longer)

Front 15

15. T/F - Master data can be created centrally.

Back 15

1. True

Front 16

16. T/F - Master data, such as a material master record, is only used in a single business process.

Back 16

1. False

Front 17

17. T/F - Master data is organized into views or data categories which are assigned to organizational elements.

Back 17

1. True

Front 18

18. T/F - In a material master record, data defined at the client level can be used by all plants.

Back 18

1. True

Front 19

19. T/F - In a vendor master record, data defined at the client level can only be used by a single company code.

Back 19

1. False

Front 20

20. T/F - A company code is the highest organizational element.

Back 20

1. False: Client is

Front 21

21. T/F - A purchase requisition can be created manually or automatically by MRP.

Back 21

1. True

Front 22

22. T/F - An account assignment object determines the process used to procure a material or service.

Back 22

1. True

Front 23

23. T/F - If an enterprise uses the Cross-Plant Purchasing scenario, then a purchasing organization procures material for all company codes within a client.

Back 23

1. False

Front 24

24. T/F - The Stock Overview displays quantities posted for a particular stock type for each organizational level.

Back 24

1. True: They are as follows: Client company code, plant , storage location

Front 25

25. T/F - Conditions in a purchase order (pricing conditions) determine the account to be charged at the time of goods receipt.

Back 25

1. False: Conditions sets pricing, taxes and discounts (the attributes that are used to determine monetary value) so at good receipt it will post to GR/IR and Purchase Order History

Front 26

26. T/F - Consumable materials are materials or services procured specifically for an account assignment object.

Back 26

1. True

Front 27

27. T/F - A material master record can be used by all of the Logistics modules.

Back 27

1. True

Front 28

28. T/F - If a material is stored in multiple plants, then a material master record must be maintained for each plant.

Back 28

1. True

Front 29

29. T/F - The data maintained in a material master may be valid for more than one organizational level.

Back 29

1. True

Front 30

30. T/F - The GR/IR account is posted to at goods receipt and invoice receipt.

Back 30

1. True

Front 31

31. What is a record of a transaction?

Back 31

1. Document

Front 32

32. What are the effects of Invoice Verification? (3)

Back 32

1. Creates a line on purchase order history,
2. Accounting document,
3. Reverses provisions Figure 112

Front 33

33. What are the data categories of a vendor master record? (3)

Back 33

1. General Data (Client)
2. Accounting (Company code) data
3. Purchase Organization Data

Front 34

34. What are the effects of a Goods Receipt? Figure ? (6)

Back 34

1. Material Quantity Document
2. Accounting Value document
3. Purchasing – Updates the PO history
4. QM (if active) – Creates an inspection lot
5. Warehouse Management (if active) – Creates a transfer requirement
6. Generating output (if active) – GR slip or pallet label

Front 35

35. What two types of master data are linked by a purchasing-info record? (2)

Back 35

1. Vendor
2. Material

Front 36

36. List the three stock types that indicate the usability of a material.

Back 36

1. Unrestricted
2. Quality Inspection
3. Blocked

Front 37

37. What are the control functions of a movement type? (2)

Back 37

1. Automatic Account Determination
2. Determines the screen layout for entering documents or updating quantity fields.

Front 38

38. What are the organizational units relevant for material planning? (3)

Back 38

1. Client
2. Plant
3. Storage Location

Front 39

39. T/F - Basic data in the material master is applicable to the entire company, and is stored at the plant level.

Back 39

1. False: It is stored at the Client level.

Front 40

40. What master data is relevant for material planning? (3)

Back 40

1. Material
2. Bill of Material
3. Routings

Front 41

41. What three material master views are relevant for planning and are specific to the Plant?

Back 41

1. Material Requirements Planning (MRP)
2. Execution (Work Scheduling)
3. Accounting

Front 42

42. At what organizational unit are the MRP and accounting view relevant? (1)

Back 42

1. Plant

Front 43

43. What is the purpose of MRP type?

Back 43

1. Specifies how a material should be planned
a. MRP
b. Consumption based planning
c. No Planning

Front 44

44. What is the purpose of Lot size?

Back 44

1. Determines the quantity of each of the procurement proposals.

Front 45

45. What is the purpose of Procurement type?

Back 45

1. Controls how a material is to be procured
a. In house (internal)
b. External procurement
c. Internal and External

Front 46

46. What is the purpose of In-house production time?

Back 46

1. Specifies how long procurement will last.

Front 47

47. What is the purpose of Safety stock?

Back 47

1. Safety stock is used to safeguard the supply chain against uncertain influencing factors.

Front 48

48. What is the purpose of Strategy group?

Back 48

1. Control the behavior of planned independent requirements.

Front 49

49. What is the purpose of Availability check?

Back 49

1. Control of the Available to Promise (ATP) check.

Front 50

50. What are the three procurement types? (3)

Back 50

1. External
2. Internal
3. External and Internal

Front 51

51. For externally procured materials, MRP can produce? (3)

Back 51

1. Planned orders
2. Purchase requisition
3. Schedule lines

Front 52

52. Name two things that affect consumption-based planning. (2)

Back 52

1. Past consumption
2. Safety stock

Front 53

53. What does the base quantity in a BOM refer to? (1)

Back 53

1. The base quantity, in the BOM header, specifies the amount of the finished product that the item quantities refer to.

Front 54

54. Are all BOMs single-level?

Back 54

1. Yes

Front 55

55. What does the BOM usage determine? (1)

Back 55

1. BOM usage determines the business applications for which a BOM can be used.

Front 56

56. What does the BOM status determine?

Back 56

1. Controls whether the BOM is active for particular applications.

Front 57

57. List the item categories in BOMs? (4)

Back 57

1. Stock
2. Non-stock
3. Variable-size
4. Document

Front 58

58. What does item category determine in the context of a BOM? (2)

Back 58

1. Specifies what kind of item you are dealing with.
2. Influences the processing of the component.

Front 59

59. What is the purpose of a routing?

Back 59

1. Contains the steps that are necessary for production.

Front 60

60. How are the BOM and Routing master data linked?

Back 60

1. Material Number
2. Task List Group

Front 61

61. What are the steps in the material planning process? (4)

Back 61

1. CO/PA Profitability Analysis: Revenue and Sales Plans
2. SOP Sales and Operations Planning: Sales and Production Plans
3. MPS Master Production Scheduling: Demand program and Adjusted Master Plan.
4. MRP Material Requirements Planning: Dependent Requirements, Planned Production, and Procurement Plan.

Front 62

62. What can SOP be used for? (3)

Back 62

1. Sales Planning
2. Production Planning
3. Feasibility estimates

Front 63

63. Define product group.

Back 63

1. It groups together products with similar characteristics. A product family.

Front 64

64. How is planning done with product groups?

Back 64

1. Product groups help in the planning process by grouping products with similar planning characteristics.

Front 65

65. Explain the concept of and options for disaggregation of product groups. (4)

Back 65

1. It is planning data at the material level
2. Disaggregate the production plan of product group 1.
3. Disaggregate the sales of product group 1.
4. Disaggregate the sales plans of all the product groups down to the materials.

Front 66

66. When a production plan is transferred to demand management, what are created?

Back 66

1. Planned Independent requirements.

Front 67

67. What are the two broad types of planning? (2)

Back 67

1. MRP
2. Consumption-based

Front 68

68. What forms the basis for planning for each type of planning? (2)

Back 68

1. MRP: Based on independent requirements.
2. Consumption-based: Based on past consumption.

Front 69

69. Describe two features of MRP? (2)

Back 69

1. MRP can be run at the plant level.
2. MRP will first use forward scheduling to calculate the requirement’s date.

Front 70

70. Assume a BOM has a component that is externally procured. What are the options for procurement proposals that you have when you run MRP? (4)

Back 70

1. Create purchase requisitions
2. Create planned orders
3. Create schedule lines
4. Create purchase orders only in the opening period

Front 71

71. Describe the MRP process for in-house procurement; for external procurement.

Back 71

1. In-house procurement: The system creates planned orders for the planning of production quantities. When planning is complete, planned orders can be converted into production orders.
2. External procurement: The system creates either a planned order, or directly creates a purchase requisition. When planning is complete, planned orders can be converted into purchase requisitions, then into purchase orders.

Front 72

72. Describe multilevel MRP. (2)

Back 72

1. Multileveled planning takes place over all BOM levels. Dependent requirements are thus also planned.
2. In Single-level planning it is only the header material that is planned.

Front 73

73. How does MRP determine that materials must be acquired?

Back 73

1. Through the execution of a Net Requirements Calculation. It determines if a material shortage exists.

Front 74

74. The supply side of net requirements planning includes what four things? (4)

Back 74

1. Stock
2. Firmed purchase requisitions
3. Purchase orders
4. Safety Stock

Front 75

75. What makes up the supply in the net requirements calculation?

Back 75

1. Procurement Proposal
2. Firmed Receipts
3. Firmed Planned Orders
4. Firmed Purchase
5. Requisitions
6. Stock

Front 76

76. What makes up the demand in the net requirements calculation?

Back 76

1. Sales Orders
2. Planned Independent Requirements
3. Secondary requirements
4. Reservations

Front 77

77. Describe the difference between NEUPL, NETCH, NETPL.

Back 77

1. NEUPL: Regenerative planning – Planning of all MRP relevant materials
2. NETCH: Net Change for Total Horizon – Planning all materials which have undergone a change relevant to the planning run.
3. NETPL: Net Change for Planning Horizon – Planning all materials for which MRP relevant changes have been made in the planning horizon. Planning within the planning horizon only.

Front 78

78. What are the control parameters in MRP? (5)

Back 78

1. Processing key: Define the planning type
2. Create purchase requisitions: Only relevant for materials that are procured externally.
3. Create schedule line: Only relevant for materials that are procured externally.
4. Create MRP list: Always, Never, only with certain Exception Messages
5. Planning mode: Defines if existing planning data: Simply be adjusted, BOMs and routings be re-exploded, or planning start from very beginning.

Front 79

79. What is the difference between the stock/requirements list and the MRP list? (2)

Back 79

1. Stock/requirements list contains up-to-date information on the current status of stocks
2. MRP list depicts the result of the latest planning run and is therefore static.

Front 80

80. What happens when you convert a planned order to a production order?

Back 80

1. The dependent requirements are transferred to order reservations.

Front 81

81. The material type, the most important value assigned, of a material determines what? (5)

Back 81

1. Default procurement type
2. Master Number – how assignment is carried out.
3. Material views available – the screens that appear in the material master record.
4. Relevant general ledger accounts.
5. Business processes and functions allowed – department-specific data that can be maintained.

Front 82

82. What are five ways to create sales plans in SOP Planning Table? (5)

Back 82

1. Transferring data from the Sales Information System (SIS.)
2. Transferring data from the Controlling/Profitability Analysis Module COPA
3. Copy from another product group
4. Using history to forecast future sales
5. Manually enter

Front 83

83. Name two attributes for consumption-based planning? (2)

Back 83

1. It is based on historical rates of consumption
2. It is appropriate for low value materials

Front 84

84. Give four examples of Material Types:

Back 84

1. Raw Materials
2. Operating Supplies
3. Semi-finished Products
4. Finished Products

Front 85

85. BOMs are used in what four processes?

Back 85

1. Material Requirements Planning
2. Production
3. Procurement
4. Product Costing

Front 86

86. The BOM contains the assemblies or components, that are to be included in the ___________ of a material.

Back 86

1. Production

Front 87

87. What are the five ways a SOP Production Plan can be created?

Back 87

1. Synchronously to sales (equal to sales plan)
2. Target stock level
3. Target days supply
4. Inventory to Zero (reduces inventory on-hand to zero balance and then plans equal to sales plan)
5. Manual entry

Front 88

88. What are the three Production Planning Strategies?

Back 88

1. Make-to-Stock
2. Subassembly
3. Make-to-order

Front 89

89. How can a MRP (Planning) Run be carried out? (4)

Back 89

1. Total Planning for planning of all materials of one or several plants
2. Multilevel for planning of a material’s BOM
3. Single-level for planning of a material
4. Interactive for interactive single-level planning.

Front 90

90. What is Multilevel Backward Scheduling?

Back 90

1. System calculates the necessary start dates based on a predefined end date.

Front 91

91. If a planned order is converted into a production order, the _________ _________ are transferred to order reservations.

Back 91

1. Dependent Requirements

Front 92

92. If MRP discovers shortage quantities, ___________ ___________ are generated.

Back 92

1. Procurement Proposals

Front 93

93. What is MPS -Master Production Scheduling?

Back 93

It is a form of MRP that concentrates planning on the parts or products that have the great influence on company profits or which dominate the entire production process by taking critical resources

Front 94

94. List master data for manufacturing execution. (5)

Back 94

1. Material Master: Procurement Type = In-house Production (X,E)
2. BOMs
3. Work center/Resource: Are assigned in the Routing of the operations.
4. Task List: Can be Routings, Rate Routings, or Master Recipes
5. Production Resource Tools (PRT): Are assigned in the Routing of the operations.

Front 95

95. What are the application modules that integrate with Manufacturing Execution? (6)

Back 95

1. Inventory management
2. Quality management
3. Financial accounting
4. Controlling
5. Sales and distribution
6. Project systems

Front 96

96. What data is stored in a work center? (5)

Back 96

1. Basic data
2. Capacities
3. Scheduling
4. Costing
5. Standard Parameters

Front 97

97. The work center master data includes: (7)

Back 97

1. Basic data
2. Default values
3. Standard values key
4. Cost
5. Capacities
6. Scheduling
7. Cost Center

Front 98

98. Standard operating times are defined in what?

Back 98

1. Routing

Front 99

99. What is the purpose of a routing?

Back 99

1. Lists the sequence of steps for producing a material. That is, the corresponding operations, their sequence and the work centers in which these operations are to be executed.

Front 100

100. Elements of routings include: (6)

Back 100

1. Operations
2. Operation sequences
3. Usage
4. Time elements
5. Work Centers
6. Component Allocations

Front 101

101. How do work centers interact with routings?

Back 101

1. By entering a standard value key, a resource is assigned standard values for operations in routings.

Front 102

102. BOMs are used in: (4)

Back 102

1. MRP
2. Production
3. Product costing
4. Procurement

Front 103

103. How do BOMs interact with routings?

Back 103

1. Components of a BOM are assigned to certain operations in the routing.

Front 104

104. SAP BOMs can be transferred to SAP Advanced Planner and Optimizer (APO) in the form of:

Back 104

1. Production Process Models (PPM)

Front 105

105. What accounts are affected when materials are issued to a production order? (2)

Back 105

1. Raw material stock account
2. Consumption account

Front 106

106. What is the structure of a production order? (5)

Back 106

1. Header
2. Operations
3. PRT
4. Costs
5. Settlement rule

Front 107

107. What are the steps in production order processing? (13)

Back 107

1. Order request – Planned Order
2. Order creation – Production order
3. Availability checks – Material/Capacity
4. Machine reservation – Loading Capacity
5. Order release
6. Order print
7. Material Staging
8. Material withdrawal
9. Confirmation (CR. Order)
10. WIP Determination
11. Goods receipt
12. Variance calc.
13. Order settlement

Front 108

108. What three processing activities are generally periodic for Cost Object Controlling?

Back 108

1. WIP Determination
2. Variance Calculation
3. Settlement

Front 109

109. When are planned costs calculated for a production order?

Back 109

1. Costs are determined at operation level and submitted at the order header level.

Front 110

110. What occurs when planned orders are converted to production orders?

Back 110

1. The system will display the production order header with production order number.

Front 111

111. Why does a production order need to be released?

Back 111

1. Order release is necessary so that subsequent processes may occur.

Front 112

112. What can be performed after order release? (3)

Back 112

1. Printing the shop floor documents
2. Component withdrawal
3. Order confirmations

Front 113

113. When are availability checks performed? (2)

Back 113

1. Order Creation
2. Release

Front 114

114. In manufacturing execution, the availability check, checks for what? (3)

Back 114

1. Components
2. Capacities
3. PRTs

Front 115

115. How are material components assigned in routings and what is the default assignment? (2)

Back 115

1. Component assignment is dealt with in the Routing.
2. The default assignment is to the first operation.

Front 116

116. What are the effects of a goods issue? (6)

Back 116

1. Reservation is reduced
2. Quantity and value in material master is updated
3. Consumption account is debited
4. Material document created
5. CO document created
6. FI document is created

Front 117

117. What are order confirmations used for?

Back 117

1. They are used for entering activities carried out within a company for an order.

Front 118

118. What are the effects of confirmations? (3)

Back 118

1. It declares the quantity that is produced, the quantity that is scrapped and the quantity that requires reworking.
2. It is also about confirming the total activity hours put in to producing the sub-assembly or assembly thereby deriving the order costs through activity based costing procedures.
3. And it is also about recording the personnel data responsible in producing the stock.

Front 119

119. How are variances calculated?

Back 119

1. The difference of Actual Cost and Planned Cost is Variance

Front 120

120. In Cost Object Controlling (COC), order settlement does what? (2)

Back 120

1. Debits the stock account
2. Credits the order

Front 121

121. Explain the settlement process.

Back 121

1. Settlement makes a Financial and CO posting for variances. The order/cost collector controlling object is debited/credited for the variance to bring its balance to zero.

Front 122

122. What are the Movement Type codes for Goods Issue and Goods Receipt?

Back 122

1. 261
2. 101

Front 123

123. Explain activity types. (3)

Back 123

1. Classifies the activities that are to be performed within a company by one or several cost centers.
2. Classifies the activities performed or produced by a cost center.
3. The costs of these resources need to be allocated to the receivers of the activity.

Front 124

124. Can activity types be used with any cost center?

Back 124

1. Yes: However, you can restrict the use of the activity type to certain types of cost centers by entering the allowed cost center categories in the activity type master record.

Front 125

125. Explain DAA.

Back 125

1. Direct Activity Allocation deals with the measurement, posting, and allocation of an organizational activity.

Front 126

126. What types of objects can be senders and receivers in DAA?

Back 126

1. When entering a direct activity allocation:
i. Enter the cost center that provides the activity (sender cost center).
ii. The object that receives the activity (receiver)

Front 127

127. What is required to complete a DAA transaction?

Back 127

1. An Activity Type

Front 128

128. Explain commitments. (3)

Back 128

1. Costs to be incurred in the future for materials and services
2. Created in the Purchasing function of MM.
3. Is recorded automatically when you assign an overhead order to a purchase order.

Front 129

129. What are the three phases of product cost accounting?

Back 129

1. Product cost planning: Estimate the costs to produce goods or services
2. Cost object controlling: Collects costs incurred during production of a product or service using cost objects such as production orders.
3. Actual costing and material ledger: Provides actual costs for wach material at the end of the period.

Front 130

130. What is calculated during period-end closing? (2)

Back 130

1. Period-end closing calculates the value of goods still in production (work in process)
2. and the variances between the cost estimate and the actual costs.

Front 131

131. What is the difference between marking a standard cost estimate and releasing a standard cost estimate? (2)

Back 131

1. Marking enables the results of the standard cost to be updated as the Future Standard Price in the material master.
2. Releasing a standard cost estimate enables the Future Standard Price to be updated as the Current Standard Price and the Current Planned Price in the Material Master.

Front 132

132. What are the standard price and standard cost used for?

Back 132

1. Standard Price: Used to valuate goods movements within SAP ERP and to valuate inventories.
2. Standard Cost: Used to update the standard price.

Front 133

133. Describe the process for updating the standard price. (3 Steps)

Back 133

1. Analyze the costs
2. Marking
3. Releasing

Front 134

134. List the six true cost objects.

Back 134

1. Cost Centers
2. Real Internal Orders
3. Real Projects
4. Networks
5. Cost Objects
6. Profitability Segments

Front 135

135. What does a Goods Issue to a cost center create in FI?

Back 135

1. A transaction that debits a material consumption expense account and credits a material stock (inventory) account.

Front 136

136. What three things are needed to enter a direct activity allocation?

Back 136

1. Sender Cost Center
2. Receiver
3. Activity Type

Front 137

137. What is a Price Update?

Back 137

1. Marking and releasing a standard cost estimate updates the standard price for the material in the material master record. This results in the inventory being revaluated.

Front 138

138. What are the prerequisites that must be met before a standard cost estimate can be marked or released? (3)

Back 138

1. Standard cost estimate must be free of errors (status KA, costed without errors).
2. The company code and period in which the standard cost estimate can be marked with a set Costing Variant are entered in the authorization for a marking.
3. You can release a standard cost estimate only once per period