SAP MM Module

SAP mm is that the materials management module of the SAP ERP software system package from SAP AG that's used for procurement Handling and Inventory Management.

Often, Materials management usually is integrated with different modules like;

  • SD,
  • PP and
  • QM.
  • Materials management is employed for procurement and inventory management.

    The module has 2 vital master data - material and vendor. Broadly, the various levels that may be defined for a SAP MM implementation are:

  • shopper,
  • Company Code,
  • Plant,
  • Storage Location and
  • Purchase Organization.
  • SAP Materials management covers all tasks inside the chain of supply. Included here is;

  • consumption-based designing,
  • planning,
  • seller analysis and
  • Invoice verification.
  • It additionally includes inventory and warehouse management to manage stock till usage dictates the cycle ought to restart. Electronic Kanban/Just-in-Time delivery is supported.

    It may be divided into 5 elements that are major. They are:

  • materials management,
  • plant maintenance,
  • quality management,
  • production planning as well as control,
  • A project management system.
  • Each is split into number of subcomponents.
  • SAP mm is all concerning managing the materials i.e. the resources of a corporation. These resources include man, workforce and materials. The most functionality within mm includes;

  • purchasing,
  • Inventory management,
  • valuation and assignment,
  • batch management and
  • Classification.
  • In some corporations materials management is additionally charged with the procurance of materials by establishing and managing a supply base. In other corporations the procurance and management of the supply base is the responsibility of a separate business department. The purchasing department is then answerable for the purchased price variances from the supply base.

    In large corporations with multitudes of client changes to the final product over the course of a year, there is also a separate logistics department that's answerable for all new acquisition launches and client changes. This logistics department ensures that the launch materials are procured for production and then transfers the responsibility to the plant materials management

    there aren't any standards for materials management that are practiced from company to company. Most corporations use ERP systems like SAP, Oracle, BPCS, MAPICS, and different systems to manage materials control. Little issues that don't have or cannot afford ERP systems, use a form of program application for material management.

    Materials management isn't a science and relying upon the relevance and importance that company officers place upon controlling material flow, the level of expertise changes. Some corporations place materials management on a level whereby there's a logistics director, other corporations see the importance level as managing at the plant level by hiring an inventory manager or materials manager, and still different corporations use the concept that the supervisors within the plant are accountable accompanied by a planners.

    The major challenge that materials managers face is maintaining the same flow of materials for production. There are several factors that inhibit the accuracy of inventory which ends in production shortages, premium freight, and infrequently inventory changes. The most important issues that all materials managers face are;

  • incorrect bills of materials,
  • inaccurate cycle counts,
  • un-reported scrap,
  • shipping errors,
  • receiving errors, and
  • Production reporting errors.