SAP MM ONLINE TRAINING IN USA,UK,AUSTRALIA

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Sap Material Management
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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

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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

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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.

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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
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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
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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

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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

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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

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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

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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

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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

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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

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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

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Implementation Challenges
Difficulty in forecast accurate demand
Optimizing time and quality for product
Selection of appropriate vendors
Management of information
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QA
I hate it.
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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.

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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

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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
• 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.

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Appendix III MM Terms Definition

• 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.

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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
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Thank you !!!
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