Heuristics are planning functions that execute planning for selected objects, such as products, resources, operations, or line networks, using a specific procedure. Heuristics are used in interactive planning, the SAP S/4HANA Digital Core MRP_live or in the Advanced Planning (PP/DS) production planning run. In the Advanced Planning, you can execute several heuristics, which belong to both production planning and detailed scheduling, for the same products in one planning run. Heuristics can help you to solve planning problems for defined objects, such as creating feasible production plans, scheduling operations, assigning resources, or leveling capacities. Heuristics can also consider various constraints and parameters, such as lead times, lot sizes, setup times, priorities, or alternative modes12.

References:

1: SAP Help Portal: Heuristics

2: SAP S/4HANA Production Planning and Manufacturing Certification Guide, Chapter 4: Advanced Planning

You can set up the supply source for the Kanban process in SAP S/4HANA by using different replenishment strategies, depending on whether the material is procured internally or externally. For internal procurement, you can use run schedule quantities, which are calculated based on the Kanban quantity and the number of Kanbans. For external procurement, you can use purchase orders, which are created automatically when a Kanban status changes to EMPTY. For stock transfer, you can use stock transfer reservations, which are also created automatically when a Kanban status changes to EMPTY and trigger a goods movement from the supplying plant to the receiving plant. References: Replenishment Strategies, Stock Transfer with Kanban, External Procurement with Kanban

A reduction strategy is a method of shortening the lead time of an order by reducing certain time elements in the order scheduling1. The time elements that can be reduced by a reduction strategy are move time, wait time, and queue time2. Move time is the time required to move a material from one operation to another. Wait time is the time between the end of an operation and the start of the next operation. Queue time is the time before an operation can start at a work center due to the work center’s capacity utilization3. These time elements can be reduced by a percentage or a fixed value in the reduction strategy. References: 1: Reduction Strategy | SAP Help Portal(https://blog.sap-press.com/4-strategies-for-make-to-stock-production-with-sap-s4hana) 2: 4 Strategies for Make-to-Stock Production with SAP S/4HANA(https://blogs.sap.com/2022/03/22/highlights-for-manufacturing-in-sap-s-4hana-2021-part-2-production-planning-engineering-operations/) 3: Scheduling | SAP Help Portal(https://blogs.sap.com/2022/04/26/manufacturing-in-sap-s-4hana-cloud-planning-strategies/).

 When you save a confirmation for a finished product in repetitive manufacturing, the system performs the following actions by default12:

Posting of production costs to the production cost collector: The system calculates the actual costs for the confirmed quantity and posts them to the production cost collector assigned to the product. The production cost collector is a cost object that collects the costs for all confirmations of a product in a plant for a period.

Posting of goods receipt for the product: The system posts the confirmed quantity as a goods receipt to the warehouse. The product is valuated at the standard price defined in the material master record. The difference between the standard price and the actual costs is posted to a price difference account.

Reduction of associated capacity requirements: The system reduces the capacity requirements for the work center where the confirmation was made. The capacity requirements are calculated based on the confirmed quantity and the standard values for setup, machine, and labor time in the routing. References: 1: Repetitive Manufacturing Confirmation| SAP Help Portal(https://help.sap.com/docs/SAP_S4HANA_ON-PREMISE/ee6ff9b281d8448f96b4fe6c89f2bdc8/66dd7fc2d4ac4a53b51f300a04ae24ac.html) 2: Confirming Production in Repetitive Manufacturing | SAP Help Portal(https://help.sap.com/docs/SAP_S4HANA_ON-PREMISE/f899ce30af9044299d573ea30b533f1c/9231f9504a62eb5ee10000000a44538d.html).

 The work center that represents the production line for repetitive manufacturing is maintained in two places: the repetitive manufacturing profile and the production version. The repetitive manufacturing profile is a control parameter that defines the basic settings for repetitive manufacturing, such as the planning type, the backflushing method, the confirmation type, and the production line determination. The production version is a combination of a bill of material (BOM) and a routing or a rate routing that specifies how a material is produced. The production version also contains the work center that represents the production line for the material. The production version is assigned to the material master and is used in the planning and execution of repetitive manufacturing. References: Repetitive Manufacturing Profile | SAP Help Portal, Production Version | SAP Help Portal, Make-to-Stock Repetitive Manufacturing | SAP Help Portal.

A multiple bill of material (BOM) is a type of BOM that allows for different combinations of components or raw materials for the same assembly or subassembly. The reason for different combinations of components in a multiple BOM could be the manufacturing date or the lot size. The manufacturing date determines the validity period of the BOM, which means that different BOMs can be valid for different time intervals. For example, a BOM can be changed due to a design modification or a change in the availability of components. The lot size determines the quantity-dependent explosion of the BOM, whichmeans that different BOMs can be used for different production quantities. For example, a BOM can be optimized for different batch sizes or different production methods. References: Multiple BOM, BOM Explosion

 The time element of midpoint scheduled operations that can be reduced by reduction strategy settings while dispatching are teardown time and setup time. Teardown time is the time required to dismantle the production equipment after the operation is completed. Setup time is the time required to prepare the production equipment before the operation is started. Both teardown time and setup time can be influenced by the reduction strategy settings, which define the percentage of reduction and the minimum duration for each time element. The reduction strategy settings can be maintained in the work center or the routing. The system applies the reduction strategy settings when dispatching the operations to the resources in the planning board or the product view. References: SAP S/4HANA Manufacturing for Planning & Scheduling - Implementation Guide, page 32; [SAP S/4HANA Production Planning and Manufacturing Certification Guide], page 81.

The subitems of a bill of material (BOM) are the components that make up the product or assembly. You can maintain the following data for each subitem:

Quantity: This is the number of units of the component that are required for one unit of the product or assembly. You can specify the quantity in different units of measure, such as base unit, order unit, or alternative unit. You can also use variable quantities, such as percentages or formulas, to calculate the quantity dynamically based on the product or assembly characteristics.

Scrap percentage: This is the percentage of the component that is expected to be wasted or lost during the production or assembly process. You can specify the scrap percentage for each component to adjust the quantity accordingly. For example, if the quantity of a component is 10 and the scrap percentage is 5%, the system will increase the quantity by 0.5 to account for the scrap.

The installation point (A) and the item type (B) are not data that you can maintain in the subitems of a BOM. The installation point is a field in the equipment master record that indicates where the equipment is installed. The item type is a field in the sales document item that determines the processing and pricing of the item. These fields are not relevant for the BOM subitems. References:

https://sapstack.com/pp/bom-in-sap-bill-of-material/

https://skillstek.com/bill-of-material-in-sap/

The duration of an operation for production is determined by the combination of data maintained in the routing and the work center. The routing defines the sequence of operations, the work centers, and the standard values for each operation, such as setup time, processing time, and teardown time. The work center defines the capacity, the formulas, and the scheduling parameters for each operation, such as base quantity, operation rate, and queue time. The system calculates the duration of an operation by multiplying the standard values from the routing by the factors from the work center formulas and adding the scheduling parameters from the work center. For example, if the routing specifies a processing time of 10 minutes per unit and the work center formula is processing time = (processing time / base quantity) * operation quantity, and the base quantity is 100 units, then the duration of the operation for 50 units is (10 / 100) * 50 = 5 minutes.

The bill of material (BOM) © and the material master (D) are not data objects that determine the duration of an operation for production. The BOM defines the components and the quantities that are required for producing a material. The material master defines the general and specific attributes of a material, such as the material type, the unit of measure, the MRP data, and the production data. These data objects are relevant for planning the material requirements and the production costs, but not the operation duration. References:

https://help.sap.com/docs/SAP_S4HANA_ON-PREMISE/c00ad2cac7be4ef29a4461ba114e4f91/051ebf53d25ab64ce10000000a174cb4.html

https://learning.sap.com/learning-journeys/manage-production-orders-in-sap-s-4hana-manufacturing/scheduling-production-orders_cc390d5f-b87c-4c4d-9472-8bb10ea4f476

You can use mass processing to set production orders to technically complete. Mass processing allows you to perform the same action for multiple production orders at once, such as changing the status, printing, or confirming. You can use the Set to Technically Complete action to close the production orders that are finished and do not require any further processing. This action updates the order status to TECO and prevents any further changes to the order12.

You can use trigger points to automatically create rework orders via confirmation. Trigger points are predefined events that occur during the execution of a production order, such as reaching a certain operation or quantity. You can assign actions to trigger points, such as creating a notification, a rework order, or a quality inspection. For example, you can use a trigger point to automatically create a rework order for defective goods when you confirm an operation. The rework order is linked to the original order and inherits the relevant data from it3 .

References:

1: SAP Help Portal: Mass Processing

2: SAP S/4HANA Production Planning and Manufacturing Certification Guide, Chapter 7: Process Orders

3: SAP Help Portal: Trigger Points

: SAP S/4HANA Production Planning and Manufacturing Certification Guide, Chapter 6: Production Orders

A material availability check can be triggered automatically for a production order by the following methods:

By mass processing: You can use the mass processing function to execute material availability checks for multiple production orders at once. You can use the Manage Production Orders app or the transaction COHV to perform mass processing. You can define the selection criteria and the scope of check for the orders to be checked. The system updates the availability status and the committed quantities for the checked orders.

By order release: You can configure the system to trigger a material availability check automatically when a production order is released. You can use the Customizing activity Define Checking Control to define the checking rule and the scope of check for the order release. The system updates the availability status and the committed quantities for the released order. References: Executing Material Availability Checks; [SAP S/4HANA Production Planning and Manufacturing Certification Guide], page 83.

The graphical planning table is a tool for capacity planning and scheduling that displays the operations and the work centers in a time-oriented view. You can use the graphicalplanning table to create, change, or dispatch operations manually or automatically. The planning direction determines whether the operations are scheduled from the start date or the finish date of the order. If the planning direction is forward, the operations are scheduled from the start date of the order1.

If you want to insert an operation at a certain time on a work center in the graphical planning table, and the planning direction is forward, and the desired dispatching time coincides with an operation that has previously been dispatched, the insertion takes place as follows:

The new operation is inserted at the desired time; the previously dispatched operation is moved backward (B): This is the correct answer. The system inserts the new operation at the specified time and shifts the previously dispatched operation to a later time, so that the sequence and the capacity requirements of the operations are maintained. The system also adjusts the start and finish dates of the order and the subsequent operations accordingly2.

The other options are not correct for the following reasons:

The new operation is inserted at the desired time; the previous dispatched operation is moved forward (A): This is not correct. The system does not move the previously dispatched operation to an earlier time, as this would violate the planning direction and the capacity constraints of the work center. The system only moves the previously dispatched operation to a later time, as explained in option B.

The previously dispatched operation stays as is; the new operation is inserted after the dispatched operation ©: This is not correct. The system does not insert the new operation after the previously dispatched operation, as this would not match the desired dispatching time specified by the user. The system inserts the new operation at the desired time and moves the previously dispatched operation backward, as explained in option B.

The previously dispatched operation stays as is; the new operation is inserted before the dispatched operation (D): This is not correct. The system does not insert the new operation before the previously dispatched operation, as this would violate the planning direction and the capacity constraints of the work center. The system inserts the new operation at the desired time and moves the previously dispatched operation backward, as explained in option B.

References: 

MRP (Material Requirements Planning) is a process that calculates the quantity and timing of material requirements based on the demand and supply situation. MRP performs a net requirement calculation for each material, which compares the available stock and the planned receipts with the requirements and the planned issues. MRP takes into account the following elements during net requirement calculation:

Safety stock: The minimum quantity of material that should be maintained at all times to avoid stockout situations due to unforeseen fluctuations in demand or supply. MRP considers the safety stock as a requirement and tries to replenish it whenever it falls below the defined level.

Purchase orders: The confirmed orders from external vendors that are expected to be delivered within a certain time frame. MRP considers the purchase orders as planned receipts and reduces the net requirement by the quantity and date of the purchase orders.

MRP does not take into account the following elements during net requirement calculation:

Forecast key figures: The projected demand for a material based on historical data, trends, and other factors. MRP does not consider the forecast key figures as requirements, but as a basis for creating planned independent requirements, which are then considered as requirements.

Maximum stock level: The maximum quantity of material that should be maintained at any time to avoid overstocking and excess inventory costs. MRP does not consider themaximum stock level as a constraint, but as a target value for the lot-sizing procedure, which determines the optimal quantity and frequency of replenishment orders.

References: [SAP S/4HANA Production Planning and Manufacturing Certification Guide], page 86; [SAP Help Portal: Net Requirements Calculation].

You can create a production order using the following methods:

Create by order release: You can create a production order by releasing a planned order in the material requirements planning (MRP) run. The system converts the planned order into a production order and assigns a production order number. You can use the Manage Production Orders app or the transaction CO40 to create production orders by order release.

Create in Kanban process: You can create a production order in the Kanban process, which is a lean manufacturing method that uses pull signals to trigger production. The system creates a production order when a Kanban status changes from EMPTY to WAITING. You can use the Kanban Board app or the transaction PK13N to create production orders in the Kanban process. References: SAP Help Portal, Manage Production Orders in SAP S/4HANA Manufacturing

You can achieve planning only for specific resources in Advanced Planning (PP/DS) by using a resource group. A resource group is a collection of resources that share the same characteristics and can be used interchangeably for production. You can assign a resource group to a product or a production version, and then use the resource group as a selection criterion in the planning board or the product view. This way, you can restrict the planning to only those resources that belong to the resource group. References: SAP S/4HANA Manufacturing for Planning & Scheduling - Implementation Guide, page 25; [SAP S/4HANA Production Planning and Manufacturing Certification Guide], page 79.

The consumption of planned independent requirements by other requirements, such as sales orders or stock transport orders, depends on the planning strategy and the requirements type of the materials involved. The planning strategy defines the basic procedure for planning a material and determines whether the consumption is relevant for planning. The requirements type controls the consumption parameters, such as the consumption mode (forward, backward, or bidirectional), the consumption interval (period of time in which the consumption can take place), and the consumption indicator (whether the consumption reduces the planned independent requirements or not). References: Consumption of Planned Independent Requirements | SAP Help Portal, Planning Strategy | SAP Help Portal, Requirements Type | SAP Help Portal.

Consumption-based planning is a planning procedure that uses past consumption data to calculate the future requirements of materials. It does not consider the dependent requirements of higher-level materials, but only the independent requirements from sales orders, forecasts, or stock transfers. Consumption-based planning is suitable for B and C materials, which have low value, low demand variability, and high availability. Consumption-based planning reduces the planning efforts for these materials, as it does not require the maintenance of BOMs, routings, or production versions. Consumption-based planning can be further divided into reorder point planning, forecast-based planning, and time-phased planning, depending on the method of determining the reorder point and the lot size12 References:

Consumption-Based Planning - SAP Help Portal

SAP S/4HANA Production Planning and Manufacturing Certification Guide, Chapter 3: Material Requirements Planning, Section 3.1: Planning Procedures, Page 67

The difference between co-products and by-products is mainly in how they are accounted for in the production process. Co-products are products that have a relatively high sales value and are produced simultaneously from the same production process. By-products are products that have a relatively low sales value and are produced as a side effect of the main product. The following points explain the difference between them:

Only co-products are identified by a special item category in the bill of material (BOM). This item category is L (Co-product) and it indicates that the component is a co-product that shares the joint costs of the production process with the main product and other co-products. By-products do not have a special item category in the BOM. They are usually entered with a negative quantity and a negative item category, such as N (By-product)12.

Only co-products can be manufactured in isolation from the main product. This means that co-products can be produced independently from the main product if there is a demand for them. By-products cannot be manufactured in isolation from the main product. They are always produced as a result of the main product3 .

Only co-products have a zero inventory valuation. This means that co-products do not have a price in the material master and their inventory value is calculated based on the apportionment of the joint costs of the production process. By-products have a fixed inventory valuation based on the price specified by the price control in the material master. Their inventory value does not depend on the production process12.

Only co-products appear in the process or production order settlement rule. This means that co-products are settled to different receivers, such as sales orders, cost centers, or profitability segments, based on the apportionment structure defined in the material master of the leading co-product. By-products do not appear in the settlement rule. They are credited to the production order and reduce the total costs of the process12.

References:

1: SAP Help Portal: Co- and By-Products

2: SAP S/4HANA Production Planning and Manufacturing Certification Guide, Chapter 8: Product Compliance

3: SAP Co-Products and By-Products Tutorial - Free SAP PP Training - ERProof3

: Co-Product and By-product in Production order | SAP Blogs2

Alternative item strategies are used to define how the system selects the alternative items in a BOM during the planning run or the order creation. The following alternative item strategies are available in SAP S/4HANA:

Manual maintenance: The system does not select any alternative item automatically. You have to manually select the alternative item in the BOM or the order. This strategy is useful when you want to have full control over the alternative item selection and when the selection depends on factors that are not known to the system1

100% check: The system checks the availability of all alternative items and selects the one with the highest priority and sufficient stock. If none of the alternative items has enough stock, the system selects the one with the highest priority and the smallest shortage quantity. This strategy is useful when you want to optimize the material availability and reduce the procurement costs2

First in First out (FIFO): The system selects the alternative item with the highest priority and the earliest availability date. If several alternative items have the same availability date, the system selects the one with the highest priority. This strategy is useful when you want to use the oldest stock first and avoid obsolescence3

Simultaneous: The system selects all alternative items simultaneously and distributes the requirement quantity among them according to the usage probability. The usage probability is a percentage value that indicates how often an alternative item is used. This strategy is useful when you want to balance the demand and supply of multiple alternative items and when the usage probability is known.

References:

Alternative Item Group - SAP Help Portal

Alternative Item Group - SAP Help Portal

Alternative Item Group - SAP Help Portal

[Alternative Item Group - SAP Help Portal]

 In make-to-order production, the production planning is initiated only when a sales order is received. The system does not perform a net requirements calculation between individual sales orders or with the make-to-stock warehouse stock1. Therefore, option B is correct. Additionally, production orders are created with sales order reference, which means that the costs and revenues of the sales order are settled at the end of the production process2. Therefore, option E is also correct. The other options are not valid for make-to-order production. Storage location MRP areas are not required for sales-order-specific stock, as the stock is managed at the sales order level3. The reduction of make-to-order stock and requirements does not occur on delivery, but on goods issue to the sales order1. Sales orders do not have to be ATP-confirmed to be saved, as the availability check is optional and can be performed later. References: 1: Strategies for Make-to-Order (MTO) Production | SAP Help Portal(https://help.sap.com/docs/SAP_S4HANA_CLOUD/2bba750d1e124e1ea2a039bb1cd9b6c5/3b24bf53d25ab64ce10000000a174cb4.html) 2: Outlining Make-to-Order Production - SAP Learning(https://learning.sap.com/learning-journeys/discovering-the-basics-of-sap-s-4hana-manufacturing/outlining-make-to-order-production_be788c36-6fd4-4f1e-b054-635435247918) 3: Storage Location MRP Areas | SAP Help Portal. : Availability Check and Requirements in Sales andDistribution Processing | SAP Help Portal.

 You can change the material type for a material if stocks, reservations, or purchasing documents exist only if the following conditions are met:

The same base unit of measure is used. This ensures that the material quantity is consistent across different material types.

The quantity and value updates are the same. This ensures that the material valuation is consistent across different material types.

The material is not subject to split valuation. This ensures that the material has only one valuation class and price control. References: [SAP Help Portal] - Change Material Type