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Sap Material Management(MM) Training In South Africa

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Title: Sap Material Management(MM) Training In South Africa


1
Sap Material Management(MM) Training In South
Africa
CONTACT US MAGNIFIC TRAINING INDIA
91-9052666559,9052666558 USA 1-678-693-3475
info_at_magnifictraining.com www.magnifictraining.c
om
2
Course Content
  • Introduction
  • Why Material Management ???
  • Process Flow
  • Material Management Integration
  • Material Management Component
  • Benefits of Material Management
  • Implementation Challenges
  • QA
  • Thank you !!!
  • Appendix A - MM Definition
  • Appendix B Material Type
  • Appendix C MM Terms Definition
  • Appendix D Important MM Tables

3
Introduction
  • SAP MM Module is one of the most important SAP
    Modules where MM stands for Materials Management
    - underpins the supply chain, including
  • Requisitions
  • Purchase orders
  • Goods receipts
  • Accounts payable
  • Inventory management
  • BOMs
  • Master raw materials, finished goods etc

4
Why Need MM ?
  • amount spend on material is higher than other
    inputs
  • material offer considerable scope for reducing
    cost and improving profit
  • material add value to the product
  • quality of end product depend on material
  • efficiency of any organization depend upon the
    availability of right material, in right quantity
    at right time and at right place.

5
Process Flow
Finish Goods Storage
C U S T O M E R
orders
S U P P I E R S
Purchasing
R E C I V I N G
D I S T R I B T N
Raw Material Storage
Transformation Processes
In Process Storage
6
MM Integration
SD
Sales Distribution
PP
Production Planning
QM
MM
Quality Management
PM
Production Management
FI
Financial Accounting
AM
Asset Management
Material Management
CO
Controls
PS
Project System
7
Material Management Component
  • Consumption based planning (MM-CBP)
  • Purchasing (MM-PUR)
  • External Service Management (MM- SRV)
  • Inventory Management (MM-IM)
  • Logistic Invoice Verification (MM - IV)
  • Vendor Evaluation Management

8
Consumption based planning
  • CBP is based on the past consumption values and
    uses the forecast or other statistical procedure
    to determine future requirements. It gets trigger
    when stock level falls below pre-defined reorder
    points.
  • Procedure available for MRP -
  • Reorder point procedure
  • Forecast based planning
  • Time-phased materials planning

9
Purchasing
  • Purchasing is a component of Material Management.
  • Task of Purchasing as following -
  • External procurement of material services
  • Determination of possible source of supply
  • Monitoring deliveries from and payment to
    vendors.
  • Integration with - SD, FI CO

10
External Service Management
  • SRV is a MM component. It supports the complete
    cycle of bid invitation, award / order placement
    acceptance of services.
  • Task of Purchasing as following -
  • External procurement of material services
  • Determination of possible source of supply
  • Monitoring deliveries from and payment to
    vendors.
  • Integration with - PM PS

11
Inventory Management
  • Task of SAP-IM as following -
  • Management of material stocks on a quantity and
    value basis
  • Planning, entry and documentation of all goods
    movement
  • Carrying out the physical inventory
  • Integration with - SD, PP, QM PM

12
Logistic Invoice Verification -
  • It is a component of MM. It is in the logistic
    invoice verification that incoming invoice are
    verified in terms of content, price and
    arithmetic.
  • Task of SAP-IV-LIV as following -
  • It completes material procurement process, which
    start with purchase requisition result in goods
    receipts.
  • It allows invoices, that do not generate in
    material procurement like expenses to be
    processed.
  • It allows credit memo to be processed.
  • Integration with - FI CO

13
Vendor Evaluation -
  • The Vendor Evaluation component supports you in
    optimizing your procurement processes in the case
    of both materials and services.
  • Task of SAP-IV-LIV as following -
  • Helps you to select source of supply
    monitoring of existing supply relationships
  • Vendor reliability
  • Criteria - Price / Quantity / Delivery / General
    Service Support
  • Integration with - QM MM

14
Benefits of MM
  • Material cost can be lowered down
  • Controlling of indirect cost
  • Risk of Inventory loss minimized
  • Reduction in loss of time of direct labor
  • Control of manufacturing cycle
  • Material congestion in storage places avoided
  • Improvement in delivery of the product

15
Implementation Challenges
  • Difficulty in forecast accurate demand

Optimizing time and quality for product
Selection of appropriate vendors
Management of information
16
QA
I hate it.
17
Thank you !!!
18
Appendix I MM Definition
  • Material management is the grouping of
    management functions supporting the complete
    cycle of material flow, from the purchase and the
    internal control of production material to the
    planning and control of work in process to the
    warehouse shipping and distribution of the
    finished product. Thomas f Wallance.
  • Material management is the management of the
    flow of materials into an organization to the
    point, where those material are converted into
    firm's end products.

19
Appendix II Material Type
  • DIEN ---- Services
  • FERT ---- Finished Product
  • FHMI ---- Production Resources / tools
  • HALB ---- Semi finished Products
  • HAWA ---- Trading Tools
  • HIBE ---- Operating Supplies
  • NLAG ---- Non-stock material
  • ROH ---- Row Material
  • UNBH ---- Non Valuated Material
  • VERP ---- Packaging material
  • WETT ---- Competitive product

20
Appendix III MM Terms Definition
  • Material Master Record
  • Data record contain all the basic information
    required to manage a material.
  • Material Requirement Planning
  • Term for requirement planning that take into
    account and plan every future requirement during
    the creation of order proposal.
  • Plant
  • An organization unit for dividing enterprise
    according to production, procurement, maintenance
    material planning.
  • Storage Location
  • Warehouse Stock Location

21
Appendix III MM Terms Definition
  • Vendor Master
  • Contains details about all the vendors within a
    company.
  • Goods Receipts
  • Term for inventory management denoting a physical
    inward movement of goods or material.
  • Material Group
  • Grouping of material and services according to
    their characteristics.
  • Material Master Record
  • Data contains all the basic information required
    to manage a material.
  • Release Strategy
  • Plan define the release code with which a
    purchase requisition item, a complete purchase
    requisition or a complete external purchasing
    document must be release.

22
Appendix IV MM Tables
EINA Purchasing info record general data
EINE Purchasing info/organization record
MAKT Material description
MARA General material data
MARC Plant data for material
MARD Storage location data for material
MAST Material to BOM link
MBEW Material consumption
RKPF Document header
T156 Movement type
T024 Purchasing group
23
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24
- Contact US -
MAGNIFIC TRAINING INDIA 91-9052666559,9052666558
USA 1-678-693-3475 info_at_magnifictraining.
com www.magnifictraining.com
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