SAP C_TS422_2023 SAP Certified Associate - SAP S/4HANA Cloud Private Edition, Production Planning and Manufacturing Exam Practice Test

To support a GMP-compliant production process, you can use the following features in SAP S/4HANA:

Digital signature: This allows you to electronically sign documents and transactions that are relevant for GMP compliance, such as production orders, process orders, batch records, and quality inspections. Digital signatures ensure the authenticity, integrity, and non-repudiation of the documents and transactions12.

Batch record: This is a document that records the entire production process of a batch, including the materials, resources, operations, quality data, and signatures involved. Batch records provide traceability and documentation for GMP compliance3 .

Recipe approval: This is a process that ensures that only approved recipes can be used for production. Recipes are approved by authorized users who sign them digitally. Recipe approval prevents unauthorized changes and ensures consistency and quality of the products .

References:

1: SAP Help Portal: Digital Signature

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

3: SAP Help Portal: Batch Record

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

: SAP Help Portal: Recipe Approval

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

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

You can limit the validity of a BOM by plant and by period. The plant determines the organizational area of validity for the BOM, and you can assign the same BOM to different or further plants if the prerequisites are met. The period of validity for a BOM is restricted by the valid-from date and the valid-to date in the BOM header and item, which determine when the BOM becomes effective and when it ends. References: Validity of Bills of Material, BOM Item Validity

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]

A scheduling agreement is a long-term agreement with a vendor for the supply of materials or services at predefined dates and quantities. To enable classic MRP to automatically create schedule lines in case of material shortage, you must do the following:

Add the agreement to the source list and mark it for MRP relevance. The source list is a list of possible sources of supply for a material, such as vendors, contracts, or scheduling agreements. By adding the agreement to the source list and setting the MRP indicator, you specify that the agreement is a valid and preferred source of supply for the material.

Set the creation indicator for delivery schedule lines on the initial screen of the MRP run. The creation indicator determines whether the MRP run creates procurement proposals, such as purchase requisitions, planned orders, or delivery schedule lines. By setting the creation indicator for delivery schedule lines, you instruct the MRP run to create schedule lines for the scheduling agreement, based on the material requirements and the agreement conditions.

Adding the agreement to the quota arrangement and marking it for MRP relevance is not necessary, as the quota arrangement is used to distribute the total requirements of a material among several sources of supply. Setting the creation indicator for purchase requisition on the initial screen of the MRP run is not correct, as the purchase requisition is a different type of procurement proposal than the delivery schedule line. References: Scheduling Agreement | SAP Help Portal, Source List | SAP Help Portal, MRP Run | SAP Help Portal.

You can select the following standard item categories inside a bill of material (BOM):

Variable-size item: This item category is used for materials that have variable dimensions, such as pipes, wires, or fabrics. The system calculates the quantity of the variable-size item based on the formula and the dimensions entered in the BOM. You can also use the variable-size item to define a scrap percentage for the material.

Non-stock item: This item category is used for materials that are not managed in inventory, such as consumables, services, or subcontracting items. The system does not create any reservations or stock movements for the non-stock item. You can use the non-stock item to trigger purchasing requisitions or purchase orders for the material. References: Bill of Material Item Category; Bills of Material in Production Planning

Before you create a BOM, you need to check if the material type of the header material is allowed in the BOM usage. The material type defines the attributes and functions of a material, such as whether it is a finished product, a raw material, or a trading good. The BOM usage defines the purpose and application of a BOM, such as production, engineering, or sales. Only certain combinations of material types and BOM usages are valid in SAP S/4HANA. For example, you cannot create a production BOM for a material type that is not relevant for production planning. References: [SAP S/4HANA Production Planning and Manufacturing Certification Guide], page 63; [SAP Help Portal: Material Type].

 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.

The difference between order-related and product-related COC is mainly in the level of cost object that is used to collect and analyze the costs of production. In order-related COC, each production order is a cost object that carries its own plan, target, and actual costs. In product-related COC, a product cost collector is a cost object that aggregates the costs of multiple production orders for the same product or product variant. The advantages and disadvantages of each approach depend on the production scenario and the reporting requirements. Some of the factors to consider are:

In product-related COC, all costs are debited and credited to a product cost collector. This means that the production orders linked to the product cost collector do not have any cost segments and do not show any variances. The product cost collector is used for variance calculation and settlement. This simplifies the cost accounting process and reduces the number of cost objects to be managed. However, this also means that the cost details of individual production orders are not available for analysis. Product-related COC is suitable for mass production of standard products with low variance and high volume12.

Order-related COC is beneficial in a flexible production environment where each production order has different characteristics, such as lot size, routing, material components, orquality specifications. Order-related COC allows for a detailed analysis of the cost and performance of each production order and enables a more accurate allocation of overhead costs. However, order-related COC also requires more effort and resources to maintain and process the cost segments and variances of each production order. Order-related COC is suitable for make-to-order or engineer-to-order scenarios where each production order is unique and customized12.

Product-related COC is used in manufacturing for co-products, which are products that are produced simultaneously from the same production process and have a relatively high sales value. Co-products share the joint costs of the production process based on a predefined apportionment structure. Product-related COC allows for a consistent and transparent allocation of the joint costs to the co-products and avoids the problem of negative variances that may occur in order-related COC. Product-related COC is suitable for process industries where co-products are common, such as chemical, pharmaceutical, or food industries34.

References:

1: SAP Help Portal: Production Orders in Cost Object Controlling

2: SAP S/4HANA Production Planning and Manufacturing Certification Guide, Chapter 6: Product Cost by Order

3: SAP Help Portal: Product Cost by Period

4: SAP S/4HANA Production Planning and Manufacturing Certification Guide, Chapter 7: Product Cost by Period

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 2: 4 Strategies for Make-to-Stock Production with SAP 3: Scheduling | SAP Help

The MRP planning file is a list of all materials relevant to the planning run. The system sets an entry in the planning file for a material when there is a change that affects the material requirements planning, such as changes to stock, requirements, receipts, or MRP data in the material master. The following processes lead to an entry in the MRP planning file:

Changing the procurement type in the product master, which determines how the material is procured (internally or externally) and affects the MRP procedure and lot-sizing procedure.

Changing the stock in inventory management, which changes the stock/requirements situation of the material and triggers a net requirements calculation.

Changing the purchasing contract in materials management, which creates a purchase requisition as a receipt element and affects the availability of the material. References: Planning File, Planning File Entries for MRP Areas, SAP Exam C_TS422_1909 Topic 10 Question 10 Discussion

 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

Forecasting is the process of predicting future demand for products or services based on historical data, market trends, and other factors. Forecasting is an essential component of supply chain planning, which aims to optimize the flow of materials, information, and money across the supply chain network. SAP offers various applications that can be used for forecasting in supply chain planning, such as:

Integration Business Planning (IBP): IBP is a cloud-based solution that provides end-to-end visibility and integration of planning processes across different business functions, such as sales, finance, operations, and logistics. IBP enables collaborative and real-time forecasting, scenario analysis, and decision making based on advanced analytics and machine learning. IBP supports various forecasting methods, such as statistical, causal, and demand sensing, and allows users to adjust and refine forecasts based on changing market conditions and business priorities12.

Supply Chain Management (SCM): SCM is an on-premise solution that covers the entire supply chain process, from demand planning to delivery and invoicing. SCM includes various modules, such as Advanced Planning and Optimization (APO), Extended Warehouse Management (EWM), and Transportation Management ™, that enable efficient and flexible planning and execution of supply chain activities. SCM supports various forecasting techniques, such as exponential smoothing, trend analysis, and seasonal adjustment, and allows users to monitor and control forecast accuracy and performance34.

The other two options are not SAP applications, but rather concepts or processes related to supply chain planning:

Capacity Requirement Planning (CRP): CRP is the process of determining the available and required capacity of resources, such as machines, labor, and materials, to meet the production plan. CRP helps to identify and resolve capacity bottlenecks, optimize resource utilization, and balance supply and demand. CRP can be performed using various SAP applications, such as MRP, Production Planning and Detailed Scheduling (PP/DS), or IBP5 .

Material Requirement Planning (MRP): MRP is the process of calculating the quantity and timing of materials needed to fulfill the production plan. MRP helps to optimize inventory levels, reduce costs, and improve customer service. MRP can be performed using various SAP applications, such as ERP, SCM, or IBP . References: SAP Integrated Business Planning | SAP, Forecasting | SAP Help Portal, SAP Supply Chain Management | SAP, Forecasting | SAP Help Portal, Capacity Requirements Planning (PP-CRP) | SAP Help Portal, [Capacity Planning | SAP Help Portal], [Material Requirements Planning (PP-MRP) | SAP Help Portal], [Material Requirements Planning | SAP Help Portal]

The system checks the master data selection settings during the creation of planned orders and production orders in the following places:

In the bill of material (BOM), the system checks the selection ID, which determines which alternative BOM is selected for the material. The selection ID can be maintained in the material master or in the production version.

In the routing, the system checks the selection ID, which determines which alternative routing is selected for the material. The selection ID can be maintained in the material master or in the production version.

In the production version, the system checks the validity period, the lot size, and the selection profile, which determine whether the production version is valid and applicable for the material. The production version combines the BOM and the routing for a material and can be maintained in the material master or in the production version master data. References: SAP S/4HANA Manufacturing for Planning & Scheduling - Implementation Guide, page 16; [SAP S/4HANA Production Planning and Manufacturing Certification Guide], page 75.

Make-to-stock production (10) is a planning strategy that supports the production of a finished good based on a forecast and without any reference to sales orders. This strategy is used when the finished good has a stable and predictable demand, and the company wants to maintain a certain level of safety stock to meet customer orders. If customers order more than the forecasted quantity, this does not affect the production program, as the system does not generate any additional planned orders or purchase requisitions for the finished good. Instead, the system reduces the planned independent requirements by the sales order quantity, and the excess demand is covered by the safety stock or the available stock. This strategy allows for a smooth and continuous production process, and avoids frequent changes in the production plan. References: Make-to-Stock Production | SAP Help Portal, Planning Strategies | SAP Help Portal, SAP S/4HANA Production Planning and Manufacturing Certification Guide, page 52.

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

 You have to use batch management in SAP S/4HANA to be able to track and use the information about materials whose specifications differ for each manufacturing process in all areas of logistics. Batch management is a function that allows you to manage materials that are produced or procured in batches, where each batch has a unique identifier and can have different characteristics or specifications. With batch management, you can:

Define the batch characteristics and specifications for each material, such as color, potency, or shelf life.

Assign a batch number to each batch of material and record the batch characteristics and specifications in the batch master record.

Use the batch number as a key for tracking and tracing the batch throughout the logistics processes, such as goods receipt, production, quality inspection, goods issue, or delivery.

Use the batch characteristics and specifications as criteria for batch determination, which is a function that automatically selects the suitable batches for a requirement based on predefined rules and conditions.

Use the batch characteristics and specifications as input for batch valuation, which is a function that allows you to valuate batches of the same material differently based on their quality or market value.

References: [SAP S/4HANA Production Planning and Manufacturing Certification Guide], page 92; [SAP Help Portal: Batch Management].

 If the operation of a production order is dispatched, the DSPT Dispatched status is set for the operation. This means that the operation has been assigned to a resource and scheduled with a start and end date and time. The options to reschedule the operation are as follows:

You can reschedule the operation using finite scheduling in a planning table. Finite scheduling considers the capacity availability of the resources and the dependencies between the operations. You can use the planning table to manually drag and drop the operation to a different time slot or resource, or use the automatic dispatching function to optimize the scheduling of the operation. Finite scheduling updates the DSPT status and the dates and times of the operation.

You can reschedule the operation in the Manage Production Operations app. This app allows you to view and edit the production orders and operations in SAP S/4HANA. You can change the start and end date and time of the operation, as well as the resource, in the app. However, the app does not check the capacity availability of the resources or the dependencies between the operations. Therefore, you need to ensure that the changes are feasible and consistent. The app updates the DSPT status and the dates and times of the operation. References: Identifying the Basic Principles and Tools of Capacity Planning; SAP Help Portal

Planning strategy 40 (Planning with final assembly) is a make-to-stock strategy that uses planned independent requirements to trigger the procurement and production of the necessary assemblies and components before receipt of the sales orders. As soon as the sales order is received, it consumes the planned independent requirements and adjusts the master plan to suit the current requirements situation. This means that the important feature of this planning strategy is that you can react quickly to customers’ requirements. The consumption of planned independent requirements can take place when you create a sales order, as well as when you change or delete a sales order. References: Planning with Final Assembly (40), Sample Scenario: Strategy 40, Outlining Make-to-Stock Production

The control cycle is the master data object that governs the relationship between supply source and demand source in the Kanban process. The control cycle defines the following data for Kanban production:

The number of Kanban containers and the quantity per container or per call item

The basic data required for automatic Kanban calculation, if necessary

The replenishment strategy, which determines how the supply source replenishes the demand source, such as in-house production, external procurement, stock transfer, or assembly

The print control, which determines how the Kanban cards are printed, if necessary

The delivery address, which determines where the Kanban containers are delivered, if necessary

The process control, which determines the status sequence, the goods movement, the packing instruction, and the production call profile, if necessary1

The control cycle is created and maintained using the app Manage Kanban Control Cycles or the transaction PKMC. The control cycle is assigned to a material and a plant, and can be split into different segments for different supply sources or demand sources2.

The other options are not correct for the following reasons:

Replenishment strategy (A): This is not a master data object, but a field in the control cycle that specifies the type of replenishment for the Kanban process. The replenishment strategy can be in-house production, external procurement, stock transfer, or assembly1.

Production supply area (B): This is a master data object that represents a physical or logical area where materials are supplied for production. A production supply area can be assigned to a material, a work center, or a production line. A production supply area is not directly related to the Kanban process, but it can be used to group materials or work centers for planning or reporting purposes3.

Rate routing (D): This is a master data object that defines the sequence of operations and the work centers for producing a material in repetitive manufacturing. A rate routing can be assigned to a material and a production version. A rate routing is not directly related tothe Kanban process, but it can be used to calculate the production rate and the lead time for in-house production.

References:

 Multiple commitments occur when several operations are scheduled to start or finish at the same time on a work center. This can happen for different reasons, depending on the settings of the strategy profile and the work center. Two possible reasons are:

The Finite Scheduling indicator is NOT set in the strategy profile. This means that the system does not consider the capacity availability of the work center when scheduling the operations. The system only checks the basic dates and the relationships between the operations. Therefore, the system can schedule multiple operations at the same time on the same work center, resulting in multiple commitments.

The work center has several individual capacities. This means that the work center can perform several operations simultaneously, depending on the number and type of individual capacities. The system assigns the operations to the individual capacities based on the capacity category and the priority. However, if the individual capacities have the same capacity category and priority, the system can assign multiple operations to the same individual capacity, resulting in multiple commitments.

References: Scheduling | SAP Help Portal, Strategy Profile | SAP Help Portal, Individual Capacities | 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

Backward scheduling is a method of determining the order dates for components from dependent requirements by starting from the requirement date of the finished product and working backwards through the production structure. Backward scheduling considers the following time elements:

Operation duration: This is the time required to perform an operation on a resource, such as a work center or a machine. Operation duration is influenced by various factors, such as the quantity, the lot size, the setup time, the processing time, the teardown time, and the operation scrap. Operation duration is subtracted from the requirement date of the finished product to determine the start date of the operation.

In-house production time: This is the time required to produce a material in-house, from the start of the first operation to the end of the last operation. In-house production time is influenced by various factors, such as the routing, the work center, the production version, and the scheduling margin key. In-house production time is subtracted from the start date of the first operation to determine the order start date of the material.

Backward scheduling does not consider the following time elements:

Total replenishment lead time: This is the time required to procure a material externally, from the creation of the purchase requisition to the receipt of the goods. Total replenishment lead time is influenced by various factors, such as the planned delivery time, the goods receipt processing time, the release time, and the scheduling margin key. Total replenishment lead time is used in forward scheduling, not backward scheduling, to determine the order dates for externally procured materials.

Planned delivery time: This is the time required to deliver a material from the vendor to the receiving plant. Planned delivery time is maintained in the purchasing info record or the material master record. Planned delivery time is a component of the total replenishment lead time, which is used in forward scheduling, not backward scheduling, to determine the order dates for externally procured materials. References: Backward Scheduling | SAP Help Portal, Scheduling | SAP Help Portal, SAP S/4HANA Production Planning and Manufacturing Certification Guide, page 77-78.