Ministry of higher education and scientific research

University of Carthage
National school of engineering of Carthage

Department of Industrial Engineering

END OF STUDIES THESIS

To obtain the

National Engineering Diploma in Industrial and Logistic

Systems Engineering

Implementation of the Production Process flow on SAP

Within :

Elaborated by :
Hela Jemai

3ème Année Ingénieur en Génie Industriel

Encadré par: Mme.Mariem Nacef

Annéee universitaire 2023-2024

45 Rue des Entrepreneurs Tel : 71.940.699

Charguia II, Code postal : 2035 Fax : 71.941.579
 Remerciement

Je tiens à exprimer ma sincère gratitude envers Mme Mariem Nacef et Mme Raouaa Oueslati pour
l’opportunité exceptionnelle qu’elle m’ont offerte au sein de SIRYOS.

Votre encadrement, vos précieux conseils et votre soutien inestimable ont été essentiels pour mon
développement professionnel.Votre expertise, votre patience et votre volonté de partager vos connais-
sances m’ont permis de me bien intégrer .

Je suis profondément reconnaissante de l’impact positif que vous avez eu sur ma carrière et ma crois-
sance personnelle.C’est un privilège de travailler à vos côtés, et je suis enthousiaste à l’idée de continuer
à apprendre et à grandir grâce à votre mentorat bienveillant. Encore une fois, merci pour tout ce que vous
faites.

Je souhaite consacrer un moment pour exprimer toute l’émotion et la gratitude que je ressens envers
ma sœur, Rim Jemai, qui a été une source de soutien exceptionnelle tout au long de mon stage.

Ton accompagnement inconditionnel, tes conseils avisés et la chaleur de notre lien familial ont rendu
cette expérience encore plus spéciale. Tu as fait de mon stage une période mémorable, et je chérirai
toujours cette opportunité d’apprendre à tes côtés. Merci du fond du cœur pour tout ce que tu as apporté
à ma vie, à ma carrière et à notre lien familial.
 Contents

Remerciement i

List of Figures iv

Introduction 1

1 General Presentation Of The Host Company And The Project’s Framework 2

1 Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
2 Presentation of the client company . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
2.1 Presentation of SFBT . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
2.2 SFBT subsidiaries . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
3 Presentation of the host organization . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
3.1 Introduction of SIRYOS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
3.2 History of SIRYOS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
3.3 SIRYOS services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
3.4 The SIRYOS vision . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
3.5 SIRYOS partners . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
3.6 SIRYOS customers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
3.7 SIRYOS organizational chart . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
3.8 SIRYOS SWOT analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
4 Project framework . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
4.1 Problem statement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
4.2 Purpose of the project . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
4.3 Project Timeline . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
5 Conclusion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11

2 ERP SAP and PP module overview 12

1 Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
2 Definition of ERP . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
3 Overview of SAP ERP . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
3.1 Presentation of SAP . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
3.2 SAP utility . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
3.3 The evolution of SAP versions . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
3.4 The work environment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
3.5 SAP Functional Modules . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14
4 Presentation of the PP production planning module . . . . . . . . . . . . . . . . . . . . 14
4.1 Definition of production . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15
4.2 SAP PP module and its key features . . . . . . . . . . . . . . . . . . . . . . . . 15
4.3 PP Module Organizational Structure . . . . . . . . . . . . . . . . . . . . . . . . 15
4.4 Master Data in SAP PP . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16
5 Types of production . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17
5.1 Discrete Manufacturing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17

ii
 5.2 Process Manufacturing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18
5.3 Repetitive Manufacturing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18
5.4 The execution of the production flow based on discrete manufacturing . . . . . . 18
6 Key Differences between Process Manufacturing and Discrete Manufacturing . . . . . . 19
6.1 The Core of Process Manufacturing: Nature and Processes . . . . . . . . . . . . 19
6.2 Process Manufacturing from a Basic Data Perspective . . . . . . . . . . . . . . 20
6.3 Key differences on the level of master recipe : The conversion of business prin-
ciples into system . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21
6.4 Process Manufacturing from the Principle Point of View . . . . . . . . . . . . . 22
6.5 Discrete vs. process manufacturing market associations . . . . . . . . . . . . . . 22
6.6 Managing discrete and process workflows with manufacturing software . . . . . 23
7 Conclusion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23

3 General solution design 24

1 Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24
Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24
2 Project approach . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24

4 Process flow parameterization 25

1 Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25
Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25

Conclusion générale 26

iii
 List of Figures

Figure 1.1 SFBT Products . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3

Figure 1.2 SFBT Products . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
Figure 1.3 SIRYOS Logo . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
Figure 1.4 SIRYOS History . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
Figure 1.5 SIRYOS professional partners . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
Figure 1.6 SIRYOS academic partners . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
Figure 1.7 SIRYOS customers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
Figure 1.8 SIRYOS organization chart . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
Figure 1.9 SIRYOS SWOT Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
Figure 1.10 Project Timeline . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10

Figure 2.1 SAP logo . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12

Figure 2.2 The families of SAP modules . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14
Figure 2.3 PP module organizational structure . . . . . . . . . . . . . . . . . . . . . . . . . 16
Figure 2.4 Master Data of module PP . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17
Figure 2.5 View of creation of master recipe . . . . . . . . . . . . . . . . . . . . . . . . . . 21

iv
Abreviations list

ERP: Entreprise Ressource Planning .

SAP: Systèmes,Applications,Produits .
SFBT: Société de Fabrication des Boissons de Tunisie.
 Introduction

L’univers des systèmes de gestion d’entreprise a considérablement évolué au cours des dernières
décennies, avec une transformation numérique qui a pris une place centrale dans la stratégie des
organisations. Dans ce contexte, les systèmes ERP (Enterprise Resource Planning) ont émergé
comme des outils incontournables pour les entreprises cherchant à gérer de manière intégrée
l’ensemble de leurs ressources, processus et données. L’un des leaders incontestés de ce do-
maine est SAP, une entreprise qui fournit des solutions ERP de renommée mondiale.

SAP offre une suite complète de modules fonctionnels pour répondre aux besoins de diverses
entreprises. Parmi ces modules, le Quality Management (Gestion de la Qualité), abrégé QM,
joue un rôle central dans le maintien de la qualité des produits et des processus opérationnels. Il
permet aux organisations de mettre en œuvre des processus de contrôle qualité, de surveillance
et d’amélioration continue pour garantir que les produits finis répondent aux normes les plus
strictes.
Dans le cadre de mon stage d’ingénieur au sein d’une entreprise de consulting spécialisée dans
les solutions ERP SAP, j’ai eu l’opportunité d’explorer en profondeur le module QM de SAP et
de me pencher sur une problématique cruciale : l’étude de la stabilité d’un produit fini dans ce
module.

L’entreprise cliente vise à occuper plus de 85 % du marché national de son produit le plus
rentable, ce qui motive notre recours à une analyse de stabilité de la qualité en vue d’améliorer
les caractéristiques du produit.

1
 Chapter1 : General Presentation Of The Host
Company And The Project’s
Framework

1 Introduction

Exploring the work environment is an unavoidable step before dealing with any problem. In this
sense, this chapter is dedicated, first, to the presentation of the client company, SFBT, and the
host organization, SIRYOS, its services and its customers. Then, the second part of the chapter
will be dealing with the definition of our project’s framework, its problems and its objectives.

2 Presentation of the client company

In this section, we’ll introduce the client company for our project, the SFBT Group.

2.1 Presentation of SFBT

Société de Fabrication des Boissons de Tunisie (SFBT) is a leading group in the Tunisian food
industry. Founded in 1925, the privately-owned group occupies a leading position in beverage
marketing. It controls around 85 % of the national beer market, 90% of the soda market and
40-50% of the mineral water market. With sales of 1,197,117 million dinars and net income
of 251,026 million dinars in 2021, grouping together more than 30 companies and employing
around 6,000 people, the group is the leader in sales of soft drinks and beer.
Figure 1.1 represents the SFBT logo.

2
Implementation of the Production Process flow on SAP

Figure 1.1 – SFBT Products

Figure 1.2 illustrates the diversification of SFBT’s products.

Figure 1.2 – SFBT Products

2.2 SFBT subsidiaries

The SFBT group includes 23 subsidiaries, as mentioned in Table 1.1, with various lines of busi-
ness located throughout different regions of Tunisia: the north, center, and south.

Subsidiary Company Name

SGBIA General Company of Beverages and Food Industries
STBG Tunisian Company of Carbonated Beverages
SIT « SIRYOS » Computer and Telematics Company
STDM Tunisian Modern Distribution Company
SOTEV Non-Alcoholic Beverage Industry (Ben Arous)

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Implementation of the Production Process flow on SAP

BELDIMED Dairy Products Industry (Manouba)

SOSTEM Company of Thermal Resorts and Mineral Water
SLD Milk and Derivatives Company (Tunis)
SFBT DISTRIBUTION Distribution of Food Products and Beverages (Tunis)
SDB Beverage Distribution Company (Nabeul)
EMT Tunisian Metal Packaging Company
SEABG Aluminum Packaging and Carbonated Beverages Company
ERRAFEHA DISTRIBUTION ERRAFEHA Distribution Company
SMVDA « RAOUDHA » Dairy Farming (Beja)
SNB New Beverage Company (Manouba)
STBO Tunisian West Beverages Company (Kasserine)
STBN Tunisian North Beverages Company (Tunis)
SBT Non-Alcoholic Beverage Industry (Médnine)
SKC Key Consolidation Company
STD Tunis Distribution Company
SINDT Real Estate (Tunis)
SCOLAIT Milk Collection Company
Table 1.1: SFBT Subsidiaries

3 Presentation of the host organization

This graduation project takes place in SIRYOS Tunisia, subsidiary company of SFBT group. In
the coming paragraphs, we will present SIRYOS and its business overview.

3.1 Introduction of SIRYOS

SIRYOS is a Digital Services Company (ESN), specialized for 28 years in the integration of
high value-added software and IT services. The company, affiliated with the SFBT group, is an
SAP partner and is positioned as a reseller and integrator of SAP solutions, as well as an SAP
technology expert. The company employs a multi-disciplinary team of engineers, consultants,
project managers, architects and managers united around a common vision: continuous innova-
tion to meet customer needs.

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Implementation of the Production Process flow on SAP

Figure 1.3 shows the current SIRYOS logo on its official website.

Figure 1.3 – SIRYOS Logo

3.2 History of SIRYOS

The company was founded in 1993 under the name SIT (Société Informatique et Télématique),
offering IT outsourcing services. From 1998 to 2008, the company became an ERP editor,
publishing and integrating an in-house ERP. It also offered SSI support services from 2002 to
2013, and obtained its first ISO 27001 customer certification. From 2014 onwards, the company
became an SAP integrator and won the SAP Excellence Awards in 2017. In 2018, SIT became
SIRYOS, the year that also marked its partnership with SAP and KASPERSKY.

Figure 1.4 – SIRYOS History

3.3 SIRYOS services

SIRYOS offers a range of services and solutions to meet the needs of its customers, as summa-
rized in Table 1.2.

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Implementation of the Production Process flow on SAP

SIRYOS Edition SIRYOS Integration SIRYOS Consulting SIRYOS Academy

Functional training:
Behave SAP S4/HANA Strategic diagnosis Finance, logistics,
production, maintenance
Technical training:
- SAP Success Factors Strategic choice ABAP, ABAP Fiori UI5,
SAP Basis
- SAP BO/BW Strategic deployment -
- Cloud Platform - -
Table 1.2: SIRYOS Services

3.4 The SIRYOS vision

Performance and innovation are the focal points of SIRYOS’s vision. Its primary success el-
ement as a SAP partner is primarily determined by input from integration operations with
Key Accounts and Small and Medium-sized Enterprises (SMEs). Its value proposition with
KASPERSKY goes beyond integration to include information systems security advice. Ad-
ditionally, in order to provide customers with high-quality services, the company’s teams of
consultants and functional and technical experts have embraced the best practices of its soft-
ware vendor partners.

3.5 SIRYOS partners

In addition to SAP, which serves as a technology partner for SIRYOS, the company also main-
tains professional relationships with PRAGMA consult, 3S, Propulsum Consulting Company,
RedCubics, and SoKey Consulting.
Figure 1.5 shows the list of SIRYOS partners.

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Implementation of the Production Process flow on SAP

Figure 1.5 – SIRYOS professional partners

By offering internships to young students, SIRYOS has surrounded itself with academic partners
in addition to its professional partners.
An overview of these academic partners is presented in figure 1.6.

Figure 1.6 – SIRYOS academic partners

3.6 SIRYOS customers

SIRYOS’s guaranteed services have helped it earn the trust of numerous national and interna-
tional companies. Figure 1.7 shows the consumers of SIRYOS.

Figure 1.7 – SIRYOS customers

3.7 SIRYOS organizational chart

SIRYOS combines technical and functional expertise with business and method expertise.
Figure 1.7 shows the organization chart of the SIRYOS management team.

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Implementation of the Production Process flow on SAP

Figure 1.8 – SIRYOS organization chart

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Implementation of the Production Process flow on SAP

3.8 SIRYOS SWOT analysis

Nowadays, SAP considers itself to be at the leading edge because of the growing demand for
its superior, highly skilled services. We will use SWOT analysis as a technique to identify
strengths, weaknesses, opportunities, and threats in order to accurately estimate this market
growth, examine SIRYOS’s internal and external environment, and strategically position the
company. Figure 1.9 shows the SIRYOS SWOT analysis.

Figure 1.9 – SIRYOS SWOT Analysis

4 Project framework

Our goals are to formulate the problem description, build the project’s framework, ascertain the
intended outcomes, and comprehend the requirement underlying this project.

4.1 Problem statement

Every industry is dependent on the particular production method used, which is determined by
the final product’s characteristics.This dependency impacts all parameters of the manufacturing
process. Discrete manufacturing, process manufacturing, or repetitive manufacturing all have
a significant impact on the technical approaches used, including the usage of SAP systems, as
well as the operational procedures and quality control techniques.
To fulfill all the needs of these diverse production types, it is essential to know how to con-
vert core business principles into the system. This involves tailoring the production processes,
maintaining high quality standards, and utilizing appropriate technical solutions, including SAP.

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Implementation of the Production Process flow on SAP

4.2 Purpose of the project

In order to expand its field of expertise, SIRYOS always seeks to enrich its portfolio with inno-
vations and variations. As a subsidiary of the SFBT group, the production planning team took
the initiative to develop the first prototype of a Production Planning (PP) module specifically de-
signed for the pharmaceutical industry. This industry, characterized by process manufacturing,
requires specialized solutions to manage its unique production processes effectively.
In this study, we will be aiming to explore the unique characteristics and challenges associated
with this type of production. By understanding how the production type influences processes,
quality standards, and technical approaches, we can better optimize production efficiency, im-
plement effective quality control, and leverage advanced technologies to meet the diverse needs
of process industries.
The goals are :
— Implement the process production flow on SAP PP.
— Configure the module SAP PP for process manufacturing.
— Develop a user guide for the requested flows.
— Develop a master data guide.

4.3 Project Timeline

In order to be organized and be able to meet deadlines, we have scheduled this project and high-
lighted the steps by elaborating a Gantt diagram. Figure 1.10 illustrates our project’s phases.

Figure 1.10 – Project Timeline

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Implementation of the Production Process flow on SAP

5 Conclusion

In this chapter, we presented the company that welcomed us throughout this internship.
Subsequently, we delimited the framework of our project by specifying the main axes of the
work. In the next chapter, we will carry out a bibliographical study to clarify the different
notions and present the different tools used in the realization of our project.

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 Chapter2 : ERP SAP and PP module overview

1 Introduction

Our talk will center on SAP ERP, the industry leader in ERP software, and its PP module,
emphasizing its features, foundational information, and organizational structure.

2 Definition of ERP

ERP, "Enterprise Resource Planning" or "Integrated Management System", software is a pow-

erful IT tool designed to help organizations effectively manage their operations, resources and
processes. They allow companies to centralize their data, automate repetitive tasks, improve
real-time visibility into their activities and make informed decisions. To this end, SAP is cited
as the market leader in ERPs..

3 Overview of SAP ERP

Systems for enterprise resource planning (ERP) include a variety of software programs; we’ll
talk more about SAP as an example.

3.1 Presentation of SAP

The massive SAP, or "Systems, Applications and products for data processing," company dom-
inates the ERP market. Since its creation in 1972 by the German corporation SAP Aktienge-
sellschaft, this software package has distinguished itself via innovation from rivals like Mi-
crosoft Dynamics and Oracle. Figure 2.1 shows the SAP logo.

Figure 2.1 – SAP logo

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Implementation of the Production Process flow on SAP

3.2 SAP utility

With its vast customization options, real-time data processing capabilities with SAP, and thor-
ough integration of several business processes into a single platform, SAP stands apart from
competing systems. Because of its unmatched scalability, it may be used by companies of all
sizes. The business intelligence and advanced analytics technologies from SAP offer profound
insights and facilitate well-informed decision-making. Furthermore, data privacy and regula-
tory compliance are guaranteed by its strong security measures and compliance features. As the
industry leader in ERP solutions, SAP stands out thanks to its broad user base, comprehensive
support network, and global reach. These factors also contribute to its appeal and dependability.

3.3 The evolution of SAP versions

With the greatest portfolio of cloud products, SAP boasts over 230 million cloud users and over
100 solutions encompassing all business processes. Over its 51-year history, SAP has released
a number of releases that have seen considerable evolution:

— SAP R/1 :The development version (mainframe architecture).

— SAP R/2 : The operational and stable version of the ERP (mainframe architecture).
— SAP R/3 : Launched in several sub-versions 2.1 to 4.7 (client-server architecture).
— SAP ECC : ERP Central Component in versions 5.0 then 6.0.
— SAP S/4 HANA : The new SAP S/4 HANA release launched in 2015, brought new
features compared to the previous versions.
SAP S/4HANA is based on SAP HANA, a so-called “in-memory” platform whose information
is stored in central memory to accelerate response times.

3.4 The work environment

To carry out a project within the SAP ERP, you must go through its three environments. For
each environment, we can find several clients.
— Development (DEV): For the configuration of solutions that are carried out by consul-
tants by satisfying customer requirements.
— Quality (QAL): This is a testing and verification environment where both the consulting
firm and the client firm use it to verify and test what has already been configured in the
DEV test environment.

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Implementation of the Production Process flow on SAP

— Production (PROD): This is the environment where company data is recorded in real
time.

3.5 SAP Functional Modules

With a modular structure, SAP covers the different functionalities of a company. It is mainly
composed of three families, the family of logistics modules, the family of accounting and the
family of human resources, which are presented in Figure 2.2.

Figure 2.2 – The families of SAP modules

This study will focus only on the logistics family and its modules :
— Material Management: Assists in the management of items, purchases, and stocks.
— Warehouse Management : Helps in the management of physical and informational
flows in a logistics warehouse.
— Sales and Distribution : Helps in managing orders, deliveries and invoices.
— Transportation Management : Supports the transport management of a company.
— Production Planning : Assists in production planning based on market demand and
production capacity.
— Quality Management : Assistance in quality control of incoming and outgoing goods.
— Plant Maintenance : Assistance in managing history and service requests.

4 Presentation of the PP production planning module

In this section, we will provide an overview of the SAP PP module.

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4.1 Definition of production

The production function refers to all activities and processes involved in the creation of goods or
services to be sold on the market. It encompasses all stages, from initial design to final product
distribution.
The goal of the production function is to maximize production’s efficiency and profitability.
It often involves the management of resources, manufacturing procedures, quality, and logis-
tics. For businesses hoping to satisfy consumer demand and accomplish their objectives, it is
essential.

4.2 SAP PP module and its key features

The SAP PP module offers various essential functionalities for the management and monitoring
of production within a company. This module manages various production processes such as:
— The planning of production.
— The calculation of needs (MRP1).
— Industrial and commercial plan ( Sales forecast at company level ).
— Production master plan ( Production forecast at factory level ) .
— Calculation of needs and resources ( Men and machines ).
— Capacity Planning.
— Manufacturing control.
— Monitoring of production.
— Calculation of cost of production.
— Bill of materials management.
— Range Management.

4.3 PP Module Organizational Structure

An enterprise structure is the structure that represents a company in the SAP ERP system. It
is divided into several organisational units which, for legal or commercial reasons, are grouped
together. To define how the various production elements are organized, managed and monitored
in the system, a structure must be assigned to the PP module.
Figure 2.3 presents the PP module organizational structure.

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Implementation of the Production Process flow on SAP

Figure 2.3 – PP module organizational structure

— Client : It is the highest level of organizational structure in SAP.

— Company: The company represents an independent accounting unit. The documents
legally required such that balance sheets and income statements are created at the societal
level.
— Plant:It is an organizational unit that subdivides a company into function of production,
supply, inventory holding or needs planning. A division can produce articles or provide
goods and services.
— Magasin :The store is an organizational level within a division. A store identifies the
general area of the division where the items are stocked.
8

4.4 Master Data in SAP PP

The master data of SAP PP module is the essential foundation for production planning and
control processes. This static and master data is crucial to efficiently configure and customize
production operations in the SAP environment.

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Figure 2.4 – Master Data of module PP

• Material Master : It centralizes the information of each function of the company (Purchase,
Sale, Production...) for each item. For the PP module, production-related views such as MRP
1,2,3,4 (Production Resource Planning) and work preparation are used.
• Work Center : This is a unit within an organization where they do all their manufacturing
activities. This unit could be a machine, a group of machines or even a production line.
A manager is assigned to each workstation.
• Bill of Material: It is a list that is structured clearly to describe the relationships between an
article and its components. This is a list made of the internal object number of each component
together with its quantity and unit of measure.
• Routing : It is a description of the operations and their sequence of “process steps” that must
be performed to produce an item.
• Production Version : Since an article can have different BOMs and routings, the production
version is the combination of a bill of material and a routing of an article.

5 Types of production

When implementing SAP PP within a company, one of the first decisions to make is to choose
the type of production that will be used. Indeed, the type of production can vary according to
several parameters. Thus, depending on the field of activity of the company, it will be more
judicious to use one type of production rather than another.
The subsequent section will examine the various types of production to identify which is most
suitable.

5.1 Discrete Manufacturing

This type of manufacturing involves the production of single items or separate units rather than
a continuous flow of products. This type of production often involves the transformation of
raw materials, assemblies, or components into finished products through various production
processes such as assembly, machining, painting, testing.

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5.2 Process Manufacturing

Process manufacturing in SAP PP is a type of manufacturing that involves the continuous pro-
duction of products through a series of chemical or physical processes. This type of manufac-
turing is commonly used in industries such as food and beverages, pharmaceuticals, chemicals,
and petrochemicals.

5.3 Repetitive Manufacturing

Repetitive manufacturing in SAP PP is a type of manufacturing in which identical products

are produced in large quantities on a regular basis. This type of manufacturing is common in
industries such as automotive, electronics, and consumer products.

5.4 The execution of the production flow based on discrete manufacturing

Following, We will outline the steps involved in the production flow of discrete manufacturing.
This overview will provide a general understanding of these steps, enabling us to recognize and
reference them in the subsequent sections.
• Release of the production order :
This stage marks the actual start of production. Thus, it triggers:
— A control batch.
— A MM lot.
— Raw Material availability check at the buffer stores level.
— Raw Material reservation at their stores.
• Material Staging :
This step allows the transfer of the quantity of Raw Materials necessary for production from the
Raw Material store to the buffer store (Line footer).
• Confirmation of production :
This stage marks the end of production (or a production operation).During this step we proceed
to the declaration :
— Actual quantities produced.
— Machine hour and labor hour from the actual date and time of production.
• Declaration of stoppages and scraps :
This step allows the declaration of :
— Time and cause of production stoppages.
— The rejected quantity of the product and the cause of the reject.

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• Declaration of consumption (Goods issue) : This step allows the declaration of the actual
quantities of raw materials consumed.
• Finished product delivery (Goods receipt) : This step allows the declaration of the quantity
delivered to the finished product store.
Remark : In SAP PP production, a production order is a key document that controls the produc-
tion of a specific item. It is created from the overall production plan and specifies the essential
details for manufacturing:
— Product to be manufactured and its quantity.
— Required components according to the bill of materials (BOM).
— Manufacturing range which defines the production steps to follow.
— Necessary resources (machines, personnel, etc.).
— Due date for production.

6 Key Differences between Process Manufacturing and Discrete Manu-

facturing

As this study is tailored for the pharmaceutical sector, our focus will be on process manufac-
turing, a topic we will delve into in this section. Additionally, we will highlight its distinctions
from other types of manufacturing, particularly discrete manufacturing.

6.1 The Core of Process Manufacturing: Nature and Processes

6.1.1 The nature of the end product

In process manufacturing, particularly within the pharmaceutical industry, the nature of the end
product demands a high level of accuracy and complexity in its formulation. Pharmaceutical
products are typically composed of active ingredients, which provide therapeutic effects, and
excipients, which serve as the delivery vehicle or aid in the manufacturing process. The precise
combination and measurement of these components are crucial to ensure the efficacy and safety
of the final product.
Additionally, the formulation of these products involves complex chemical and physical trans-
formations that must adhere to stringent regulatory standards. This complexity distinguishes
process manufacturing from discrete manufacturing, where products such as electronics, auto-
mobiles, or appliances are produced as distinct, countable units. In discrete manufacturing, the
focus is more on assembly and the fitting together of components rather than chemical process-

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ing.

6.1.2 The nature of the process

Process manufacturing and discrete manufacturing are primarily distinguished by the ways in
which they are processed:
— Assembling separate parts or components to generate the final product is the main func-
tion of discrete manufacturing. This usually requires both assembly and disassembly
procedures.
— Contrarily, process manufacturing, which comprises converting raw materials through
physical or chemical, continuous or semi-continuous processes to produce the end prod-
uct, embodies the actual spirit of manufacturing.
The nature of the final product is a direct reflection of the processes applied to it. In the subse-
quent comparisons, it’s essential to recognize that the fundamental reason for the disparity lies
in the nature of the processes involved.

6.2 Process Manufacturing from a Basic Data Perspective

SAP offers SAP PP for the discrete manufacturing, and SAP PP PI or SAP PI to implement
business processes for process industries. Thus, master data is critical for managing and opti-
mizing production processes, and it varies significantly between the production types.
Table 2.1 summarizes each production type’s master data.

Discrete Manufacturing Process Manufacturing Repetitive Manufacturing

Material Master Material Master Material Master
BOM BOM BOM
Work Center Resource Production Line
Routing Master Recipe Routing
Production Version Production Version Production Version
Table 2.1: Master Data of production types

To outline the key differences, we should first talk about the main differentiator which is the
master recipe. In fact, every difference resolve around the master recipe.

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6.3 Key differences on the level of master recipe : The conversion of business principles
into system

In SAP PP-PI, a master recipe is a task list that is simply termed routing in SAP PP for produc-
tion. It is used when creating the process order for scheduling, capacity generations, component
scheduling.. the same as routing. But, when it comes to differences between them, we mention
:

1. Embedding of the BOM in the task list through the use of production versions :
-Vis-à-vis the routing or rate routing, the master recipe collects the operations and the
BOM together in one master data through the use of production version. The production
version is exploded in the recipe to pull in the material BOM.
The process industries deal with complex recipe and formulas where variations in ma-
terials, formulations and process parameters are common. That’s why we need to select
the appropriate production version to ensure the correct BOM details are included in the
master recipe is crucial for accuracy.

Figure 2.5 – View of creation of master recipe

-The concept of phases/operations :

A master recipe carries a concept of operations assigned with phase’s vis-à-vis discrete
manufacturing which has only operation level details. The operations are thus mere place
holders of phases and carry no major importance in SAP PP PI.
The introduction of phases helps the organization to break down the activities on an
operation (as phases) and detail them out.
The standard values/activities like the set-up time or duration or machine time etc; are

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assigned to the phases in process manufacturing unlike discrete manufacturing where

they are assigned to the operation itself. This takes you to an obvious conclusion that
the confirmation in process manufacturing are carried out at the phase level rather than
at operation level. Even the components of the BOM in SAP PPPI, are assigned to the
phases and not the operations, thus strengthening the fact that the phases govern over
the operations. The set up of the "process management functionality in SAP PP PI"
through control recipe destination, process instruction categories and process message
categories is done at the phase level. You can assign a unique control recipe destination
to a phase and a set of process instruction categories which are eventually downloaded
to the respective destinations as control recipe. This is explained in detail further down.

2. Material Quantity Calculations : Bringing the BOM inside the task list helps in gen-
erating one more unique feature of a recipe called the “Material Quantity Calculations”.
The material quantity calculations helps to change the component quantities and the
header material quantity vis-à-vis each other and with respect to the values of the ac-
tive ingredients (batch classification specifications) of the components and the header
material.

3. Process Management : This features allows a clear communication or interface be-

tween SAP and the shop floor destination to communicate production or execution re-
lated data between them. This interface is a standard SAP defined interface and works
with SAP sending process instruction categories to the destination and the destination
sending back execution data to SAP for updation in SAP database.
Every phase in a master recipe has a shop floor destination or control recipe destination.
The process instructions are assigned to the phases; these process instructions carry pro-
cess notes, order details, phase details, component details, quality inspection details,
goods receipt details. The process instructions are bundled up into a control recipe and
are sent to the control recipe destination, which once sent to the shop floor operator or
the process control system, helps them to with the detailed information and instructions
about the order and initiates a trigger to start manufacturing activities.

6.4 Process Manufacturing from the Principle Point of View

6.5 Discrete vs. process manufacturing market associations

Both discrete and process manufacturing can be set up in either make-to-stock or make-to-order
workflows. However, generally speaking, make-to-order is more common among discrete man-

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ufacturers, whereas process manufacturers mostly use make-to-stock process flows. This is in
part due to the fact that process manufacturers tend to produce goods in high volumes, whereas
discrete manufacturers often create bespoke equipment to specific customer requirements.

6.6 Managing discrete and process workflows with manufacturing software

In order to effectively manage complex BOM structures, ensure correct routings, plan and
schedule workstations, and track the myriad of components moving between the inventory,
assembly lines, and the whole supply chain, a powerful MRP system or manufacturing ERP
software is an absolute requirement for modern discrete manufacturers. First and foremost, it’s
the complex BOM control and the corresponding inventory and supply chain management that
lies at the heart of a discrete manufacturing MRP/ERP solution.
Process manufacturing has its own unique requirements. Here, a flexible recipe or formula con-
trol is the key functionality without which managing workflows is almost unthinkable in modern
process manufacturing facilities. Recipes need to be scalable, units of measurement convertible,
and ingredients and their expiration dates tracked precisely to ensure profitability and regula-
tory compliance. Comprehensive inventory management remains as critical a requirement as
for discrete manufacturers, albeit for somewhat different reasons.

7 Conclusion

In this chapter, we have examined the production function and its implementation in the SAP
PP module. We provided an overview of various production types, with a particular focus on
process manufacturing and how it differs from other types.

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 Chapter3 : General solution design

1 Introduction

2 Project approach

24
 Chapter4 : Process flow parameterization

1 Introduction

25
 Conclusion générale

Ce rapport a permis d’explorer, d’analyser et de comprendre en profondeur les divers aspects

liés à la stabilité d’un produit fini au sein du module QM de SAP. Nous avons mis en évidence
la pertinence de cette étude compte tenu des défis que rencontrent les entreprises pour main-
tenir la qualité de leurs produits, satisfaire les attentes des clients, et se conformer aux normes
rigoureuses. Les principales conclusions de cette étude peuvent être résumées comme suit :
— L’Importance de la Stabilité : La stabilité du module QM dans SAP est essentielle pour
garantir le bon fonctionnement des processus de contrôle et d’assurance qualité. Les
dysfonctionnements ou les erreurs peuvent avoir des répercussions significatives sur la
qualité des produits finis.
— Collaboration Interdépartementale : L’étude a révélé que la gestion de la stabilité du
produit fini nécessite une collaboration étroite entre les équipes informatiques, de gestion
de projet et de gestion de la qualité. Une communication fluide est cruciale.
— Méthodologie d’Étude : La méthodologie mise en place, basée sur des analyses appro-
fondies, des tests, et une évaluation continue, s’est avérée efficace pour identifier les
problèmes de stabilité.
— Recommandations et Solutions : Les recommandations formulées dans ce rapport visent
à améliorer la stabilité du produit fini, notamment en mettant en œuvre des processus de
test plus rigoureux, en optimisant les configurations du module QM, et en surveillant en
permanence les performances.
— Contributions Futures : Les résultats de cette étude ont le potentiel d’améliorer signi-
ficativement les pratiques de gestion de la qualité des produits finis au sein d’ERP SAP,
ouvrant ainsi la voie à de futures initiatives d’amélioration.

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