Monday, August 31, 2020

Recipe / Routing in SAP Production Planning

 

The basic purpose of recipe / routing in SAP Production Planning is to charge that costs of a product which cannot be defined as materials / components, such as Fixed cost, variable cost, utilities cost, labor cost etc... and for capacity utilization.


Top FAQ about recipe / routing is:


What is the difference between recipe and routing?


Pertaining to their role in SAP Production Planning, actually there is no difference in a Master recipe and routing. But there are bit differences in their usage and construction.


To understand the difference between these two, we will have to understand their usage first. As per my understanding, recipes are mostly used in process industries whereas routing are used for discrete manufacturing in production industries.


Definition:

Recipe / Routing is the sequence of operations to be followed in order to process / manufacture a Material. Both of these are consists of a header and (several) operations. Each of which is carried out at a primary resource. You have to specify which resource is being used to consume the activities (such as Fixed cost, variable cost, utilities cost, labor cost etc...)


There are some additional features in a Master recipe which doesn’t exists in routing such as…

  • In a Master recipe, phases are assigned to the operations.
  • In a Master recipe, control recipe destination is assigned.
  • Materials (Task list) are assigned within the Master recipe. Whereas in routing, BOM is externally defined and assigned to routing.
  • Process Instructions (PI sheets) can be added to a Master recipe.

Another difference between recipe and routing is of control keys. Such as PI01, PI02 etc… used for recipes and PP01, PP02 etc… are used for routing.

Another question very often asked by the beginners is:

What is the difference between Master Recipe and Control recipe?


Actually there is no difference between a Master recipe and a Control recipe. As per my understanding, the recipe you have created with the recipe builder (C201) for any product is its Master recipe (acts as a template), and when it is used in a Process order it is a control recipe (copy of a Master recipe).

While creating a Master recipe, you will have to mention a destination “Control Recipe” because you cannot assign phases until unless you define its destination.

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Let’s create a Master Recipe for a product “ABCD”. We will discuss only the mandatory things here.

  • Open a transaction C201.
  • Enter your material “ABCD” and Plant.
  • Enter the validity Key date. Validity date can be from Past or Future. System will only allow the usage of this recipe within the validity period. If key date is not defined, then system will consider the create date as validity start date.
  • You can create “n” number of recipes using the same recipe group (generated with the first recipe)
  • Press ENTER, and you will jump to the next screen.
  • You have to enter “Status” and “Usage” in assignment views.
  • Go to the “Operations” tab. Below are the list of details required to define operations.
  1. Operation / Phase
  2. Phase Indicator
  3. Super-ordinate operation (Assigning phase to the operation)
  4. Resource
  5. Control Key
  6. Operation description
  7. Base quantity and its unit of measure
  8. Activities
  • Go to the “Materials” tab and create the task list (assignment of materials to the phases)
  • Your recipe is created, press SAVE button.



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