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

The planning strategy settings in the Capacity Scheduling Table determine how the system schedules the operations or orders on the resources. You can select the following settings:

Finiteness level: This setting defines how strictly the system considers the capacity availability of the resources when scheduling. You can choose between infinite, finite, and optimized scheduling. Infinite scheduling ignores the capacity availability and schedules the operations or orders as early as possible. Finite scheduling respects the capacity availability and schedules the operations or orders only in the free slots of the resources. Optimized scheduling tries to find the best compromise between infinite and finite scheduling by minimizing the delays and overloads12

Scheduling control: This setting defines how the system handles the scheduling conflicts that may arise when scheduling the operations or orders. You can choose between rescheduling, shifting, and splitting. Rescheduling means that the system moves the conflicting operations or orders to a later date. Shifting means that the system moves the conflicting operations or orders to another resource within the same resource network. Splitting means that the system splits the conflicting operations or orders into smaller parts and schedules them on different resources or dates13

Direction: This setting defines the direction of the scheduling. You can choose between forward and backward scheduling. Forward scheduling means that the system schedules the operations or orders from the start date to the end date. Backward scheduling means that the system schedules the operations or orders from the end date to the start date14

References:

Planning Strategy Settings - SAP Help Portal

Finiteness Level - SAP Help Portal

Scheduling Control - SAP Help Portal

Direction - SAP Help Portal

Phantom assemblies are assemblies that have their own product structure, but whose assembly does not actually physically exist. The components of the phantom assembly are incorporated directly in the superordinate product. The product structure of the superordinate product contains a reference to the phantom assembly. You can use phantom assemblies for the following purposes:

To simplify the structure of bills of material: Phantom assemblies allow you to group components that belong together logically or functionally, without creating an additional level in the product structure. This can make the product structure easier to maintain and understand.

To reduce the number of material masters: Phantom assemblies do not require a material master record in SAP S/4HANA, as they are not physically produced or stored. This can save storage space and reduce the effort of creating and updating material masters.

To reduce the number of changes required in bills of material: Phantom assemblies can be used to represent common subassemblies that are used in multiple products. This way, you only need to maintain the product structure of the phantom assembly once, and any changes will be reflected in all the products that reference it.

Phantom assemblies do not increase the number of planning levels, as they are not considered as separate planning objects. They also do not make the assignment of components easier, as the components are assigned to the superordinate product, not to the phantom assembly. References: Phantom Assembly | SAP Help Portal, Phantom Assembly | SAP Help Portal, Planning Phantom Assemblies | SAP Help Portal.

 A phantom assembly is a material that is not physically produced, but its components are directly consumed in the production of a higher-level material. To set up a material as a phantom assembly, you need to do the following steps:

Define the special procurement type as 50 (phantom assembly) in the material master of the phantom assembly. This indicates that the material is not procured or produced, but its components are exploded in the BOM of the higher-level material.

Change the item category of the phantom assembly in the BOM of the higher-level material to N (phantom item). This indicates that the phantom assembly is not relevant for production order or MRP, but its components are.

Alternatively, you can change the phantom item indicator for the phantom assembly in the BOM of the higher-level material to X (phantom assembly). This has the same effect as changing the item category to N, but it also allows you to use the same BOM for different purposes, such as costing or sales. References: [SAP S/4HANA Production Planning and Manufacturing Certification Guide], page 68; [SAP Help Portal: Phantom Assembly].

 Infinite planning is a method of material requirements planning (MRP) that creates new orders without checking the capacity availability of the work centers. This means that the capacity requirements of a new order are created regardless of the existing capacity load or constraints of the work center. Infinite planning assumes that the required capacity can be increased or adjusted as needed. Infinite planning is suitable for situations where the capacity supply is flexible and the demand is urgent or unpredictable. However, infinite planning can also result in capacity overloads or unrealistic schedules that need to be resolved later by capacity leveling or rescheduling. References: SAP S/4HANA Production Planning and Manufacturing II, Unit 1: Material Requirements Planning; [SAP S/4HANA Production Planning and Manufacturing Certification Guide], page 77.

Materials that have a negative quantity in a bill of material or in a recipe are those that are produced in addition to the main product during a production process. They are either sold or disposed of, and their costs are apportioned among the main product and the co-products. By-products are materials that have a low value compared to the main product and are usually not planned in advance. Co-products are materials that have a high value compared to the main product and are usually planned in advance. Waste products are materials that have no value and are discarded or recycled. References: Bill of Material (BOM), Test sap pp 2020 s4 hana - DAYPO

One-off events: These are special events that affect the demand for a product, such as promotions, holidays, or product launches. You can use the one-off events function in SAP S/4HANA to create and maintain events and assign them to products. The system considers the events when generating the forecast and adjusts the demand accordingly.

Past sales order quantities: These are the historical data of the actual sales orders for a product. You can use the past sales order quantities as the basis for forecasting the future demand. The system applies statistical methods and algorithms to analyze the past sales order quantities and identify the trends, patterns, and seasonality of the demand.

Market intelligence: This is the external information that influences the demand for a product, such as market research, competitor analysis, or customer feedback. You can use the market intelligence function in SAP S/4HANA to import and integrate market data from various sources into the forecast. The system adjusts the demand based on the market intelligence data and the weighting factors that you define. References: Exploring the Steps of Supply Chain Planning; SAP S/4HANA Production Planning and Manufacturing II, Unit 2: Demand Management; [SAP S/4HANA Production Planning and Manufacturing Certification Guide], page 76.

 In reorder point planning, the system compares the available stock with the reorder point to determine the net requirements. If the available stock falls below the reorder point, the system triggers a procurement proposal for the material. The quantity of the procurement proposal depends on the lot size procedure that is defined in the material master. The lot size procedure determines how the system calculates the order quantity based on factors such as demand, costs, and storage space. There are different types of lot size procedures, such as static, periodic, or optimum lot size. References: [Production Planning with SAP S/4HANA], page 156; [SAP Help Portal: Lot Size Calculation].

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/).

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.

If the available stock is zero and the discontinuation date is in the past, the material requirements planning (MRP) process will be affected. MRP will not create any planned orders or purchase requisitions for the discontinued component. Instead, it will create a discontinuation indicator in the MRP list and a discontinuation message in the exception message list. This will inform the planner that the component is no longer available and that a follow-up material should be used instead. References: [SAP Help Portal] - Discontinuation of Materials.

 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].

A production version is a combination of a BOM and a routing that defines how a material is produced. For a production version to be valid and consistent, the following requirements must be fulfilled:

The deletion flag must NOT be set for the BOM or the routing. The deletion flag indicates that the BOM or the routing is no longer used and should be archived. If the deletion flag is set, the production version cannot be used for production planning or execution.

The lot size range must be within the lot size range of the assigned routing. The lot size range specifies the minimum and maximum order quantity for which the production version is valid. The lot size range of the production version must match or be smaller than the lot size range of the routing, otherwise the system will not find a suitable routing for the production order.

The assigned routing and BOM must be valid in the entire validity period. The validity period defines the time frame for which the production version is valid. The validity period of the production version must be within or equal to the validity periods of the routing and the BOM, otherwise the system will not find a consistent BOM and routing combination for the production order. References: [SAP S/4HANA Production Planning and Manufacturing Certification Guide], page 113; [SAP Help Portal: Production Version].

When you create a product master in SAP S/4HANA, you need to enter values for mandatory fields such as product number, product type, base unit of measure, and description. The product type determines the category of the product, such as material, service, or article. The base unit of measure defines the unit in which you manage the product in all business transactions. The selection screen for views and plants are optional fields that allow you to choose which views and plants you want to maintain for the product master. References: Creating Products, Understanding the Concept of Master Data

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 order-type-dependent parameters are configuration settings that control various aspects of production order processing, such as number range, scheduling type, availability check, costing variant, confirmation parameters, and so on. These parameters are assigned to a production order type, which is a key that defines the characteristics and business rules of a production order. The order-type-dependent parameters affect the following business processes:

Check material availability: The availability check determines whether the required materials and capacities are available for the production order. The availability check is controlled by the checking rule and the checking group, which are defined in the order-type-dependent parameters. The checking rule specifies which stocks, receipts, and issues are considered in the availability check. The checking group determines how the system responds to the availability situation, such as issuing a warning or an error message, or rescheduling the order.

Schedule production orders: The scheduling of production orders calculates the planned dates and times for the operations and the order. The scheduling is controlled by the scheduling type and the scheduling parameters, which are defined in the order-type-dependent parameters. The scheduling type determines whether the system performs forward or backward scheduling, and whether it considers the basic dates or the production dates. The scheduling parameters determine how the system calculates the operation durations, interoperation times, and floats. References: [SAP S/4HANA Production Planning and Manufacturing Certification Guide], page 123; [SAP Help Portal: Order-Type-Dependent Parameters].

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 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

Planning with final assembly (40) is a planning strategy that supports the consumption of planned independent requirements for the semi-finished material. This strategy is used when the production of the finished product is triggered by the sales order, but the production of the semi-finished product is not. The semi-finished product is produced in advance based on the forecast and stored in stock. When the sales order is received, the planned independent requirements for the finished product are reduced by the sales order quantity, and the planned independent requirements for the semi-finished product are reduced by the corresponding component quantity. This way, the semi-finished product is consumed by the sales order and the production order for the finished product only requires the assembly of the components. This strategy allows for a shorter lead time and a higher flexibility for the finished product, while reducing the risk of excess stock for the semi-finished product. References: Planning with Final Assembly | SAP Help Portal, Planning Strategies | SAP Help Portal, SAP S/4HANA Production Planning andManufacturing Certification Guide, page 53-54

 Dependent requirements are the requirements for components that are derived from the requirements for the finished product or assembly. They are created when an independent requirement is created for the finished product or assembly, such as a planned independent requirement, a sales order, or a stock transport order. They are also created on assembly level during the planning run, when the system explodes the bill of material (BOM) of the finished product or assembly and calculates the requirements for the components based on the BOM structure and quantity. Dependent requirements can be created for multilevel or single-level BOM structures, depending on the planning strategy and the BOM explosion level. References: Dependent Requirements | SAP Help Portal, Material Requirements Planning (PP-MRP) | SAP Help Portal.

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:

https://blogs.sap.com/2016/06/20/kanban-process/

https://blogs.sap.com/2018/04/11/kanban-process-in-s4-hana-1709/

 To identify all affected finished goods stocks that contain a deviated raw material batch, you can use the following tools:

The Batch Information Cockpit (BIC) is a central tool that provides an overview of all relevant information and documents related to a batch. You can use the BIC to display the batch genealogy, which shows the hierarchical relationships between batches along the production and distribution process. You can also use the BIC to display the batch traceability, which shows the chronological sequence of events and transactions that affect a batch. The BIC allows you to analyze the batch history and the batch usage across different plants and systems.

The batch where-used list is a tool that determines how a batch is created and used in Production Planning (PP) through various stages of production and displays the result in a list. You can use the batch where-used list to find out in which other batches a batch was used and from which other batches a batch was created. This is important in the case of complaints and questions about product safety if the composition of semi-finished and finished products has to be documented across all production levels.

Batch derivation and batch determination are not tools to identify affected finished goods stocks, but rather tools to assign batches to production orders or sales orders based on certain criteria. Batch derivation is a process of transferring characteristics or values from one batch to another, while batch determination is a process of finding suitable batches for a requirement based on predefined conditions. References: Batch Information Cockpit | SAP Help Portal, Batch Where-Used List | SAP Help Portal.

Run PP/DS heuristic for repetitive manufacturing: PP/DS (Production Planning and Detailed Scheduling) is a component of SAP S/4HANA that provides advanced planning and scheduling functions for complex production scenarios. You can run the PP/DS heuristic for repetitive manufacturing to automatically assign planned orders to production lines based on the available capacity, material, and sequence constraints. The PP/DS heuristic also optimizes the line utilization and minimizes the setup times and costs.

Assign planned orders manually in the planning table: The planning table is a graphical tool that allows you to view and manipulate the production plan for repetitive manufacturing. You can assign planned orders manually to production lines by dragging and dropping them in the planning table. You can also adjust the start and finish dates, quantities, and sequences of the planned orders. The planning table shows the capacity situation and the material availability for each production line.

You cannot plan both quantities and capacities during line loading in repetitive manufacturing by using the following options:

Run MRP with quota arrangement: MRP (Material Requirements Planning) is a process that calculates the quantity and timing of material requirements based on the demand and supply situation. You can run MRP with quota arrangement to distribute the total requirements for a material among multiple sources of supply, such as vendors, plants, or production lines. However, MRP does not consider the capacity constraints or the sequence dependencies of the production lines, and therefore cannot plan the capacities during line loading.

Assign planned orders manually in the planning table: This option is identical to option C and therefore cannot be a correct answer.

References: [SAP S/4HANA Production Planning and Manufacturing Certification Guide], pages 105-106; [SAP Help Portal: Line Loading in Repetitive Manufacturing].

Lead time scheduling is a method of scheduling production orders that calculates the start and finish dates of each operation based on the operation duration, interoperation time, and other time elements. The time elements that are relevant for lead time scheduling of a production order are:

Setup time: The time required to prepare the work center for the operation, such as changing tools, adjusting machines, or cleaning the work area.

Processing time: The time required to perform the operation, such as machining, assembling, or testing the product.

Teardown time: The time required to restore the work center to its original state after the operation, such as removing tools, resetting machines, or disposing of waste.

Interoperation time: The time between two consecutive operations, such as transportation, waiting, or inspection time.

Float before production: The time buffer before the scheduled start date of the production order, which can be used to compensate for delays or changes in the production plan.

Float after production: The time buffer after the scheduled finish date of the production order, which can be used to compensate for delays or changes in the production plan.

The opening period and the total replenishment lead time are not relevant for lead time scheduling of a production order. The opening period is a parameter that defines the earliest possible start date of a production order, based on the material availability date and the planning time fence. The total replenishment lead time is a parameter that defines the total time required to procure or produce a material, from the time the requirement is identified until the time the material is available for use.

References: [Production Planning with SAP S/4HANA], pages 177-179; [SAP Help Portal: Lead Time Scheduling].

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.