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Dr. Schneider

Dr. Schneider | PP/DS joint production

Implementation Highlights

  • Realization of a joint production individually adapted to the requirements
  • Separate mapping of product-specific in-house production orders
  • Implementation of a setup-optimized sequence using dynamic grids and setup matrices
  • Individual consideration of costs in FI/CO as well as scrap and batch sizes in procurement
10000
Products
3300
Coupling tools
4
Factories

The initial situation

At its main plant in Kronach-Neuses, the Dr. Schneider Unternehmensgruppe produces products for vehicle interiors, such as ventilation systems, highly integrated trims and modules for instrument panels and center consoles, using injection molding. The joint production process uses special molds to manufacture several products simultaneously from the same material.

There is a standard SAP scenario for joint production in which an order is created with a source of supply (PDS). This order has two outputs, namely a main product and a by-product. When product A is planned, product B is also planned or released at the same time.

However, Dr. Schneider had a precisely defined requirement for joint production with separate orders, which cannot be mapped by a standard SAP implementation.

CONSILIO has supported us very successfully in the realization of a joint production in PP/DS that is precisely tailored to our requirements and is therefore also number one on our list for the subsequent S/4HANA PP/DS implementation.

Sebastian Hofmann, ERP Inhouse Consultant Dr. Schneider Holding GmbH

Project objective and challenge

At Dr. Schneider, joint production should not be processed via one order, but via several orders, as otherwise the costs would also be reported back to Controlling via one order instead of separate orders. In addition, product manufacturing results in different levels of scrap, which also cannot be mapped in one order.

It was therefore necessary to realise an individual joint production in PP/DS that does not use the standard means of the SAP production process, so that costs and scrap quantities for individual products can be considered and defined separately.

Quick explanation...

Coupling production

In business studies, joint production (also referred to as combined or coupled production) is a manufacturing process in which at least one by-product is inevitably and simultaneously produced in addition to the main product. The resulting products are called joint products. The production of the main products is intentional and corresponds to the purpose of the operation, while the by-products must inevitably be accepted. The by-products are produced simultaneously and inevitably for chemical/physical/technical reasons when the main product is being manufactured, with the result that the manufacturer is a multi-product company. By-products may be unwanted, such as waste, emissions or pollutants, which, however, are unavoidable by-products of the production process for technical and/or economic reasons.

Source: Wikipedia

Function and advantage of the solution

Dr. Schneider's individual requirements resulted in an extremely complex scenario: separate orders had to be synchronised so that the individually planned products could run simultaneously on the resource and thus be manufactured in the injection moulding process at the same time. Planned and production orders were linked together via several external relationships, thus implementing simultaneous scheduling.

In addition, machine setters were scheduled to the last minute so that they would be available at the right time and ensure optimal set-up. Finally, a sequence that optimised set-up times was achieved using dynamic set-up times and matrices.

The synchronisation of the relevant planning and production orders for the process also had to be maintained when quantities were changed, implemented and reported.

The decisive advantage of the CONSILIO solution lies in the separate mapping of the joint production via product-specific in-house production orders, which makes it possible to view the costs individually in FI/CO and the scrap and batch sizes in procurement.

In the overall view, the factors mentioned were not only relevant for joint production, but also for the subsequent S/4HANA project. The realisation of joint production took place immediately, but the implementation with S/4HANA Go-live.

Dr. Schneider Corporate Group

  • Industry: Automotive
  • Business segment: Specialist for first-class products for vehicle interiors - from innovative ventilation systems to highly integrated panelling and sophisticated modules for instrument panels and centre consoles
  • Web: www.dr-schneider.com
  • Solution: SAP S/4HANA 1909
  • Consultancy partner: CONSILIO GmbH