Mastering Rework Orders in SAP PP: A Production Essential

Every manufacturer encounters defective materials or production errors. But how do you efficiently handle these situations and ensure smooth production flow? Enter the rework order in SAP PP (Production Planning).

This blog dives into the world of rework orders, equipping you with the knowledge to manage rework effectively in your SAP PP system.

What is a Rework Order?

A rework order is a unique production order used to rectify defects in existing materials. It allows you to track and manage the additional effort required to bring the materials up to quality standards.

Here’s the basic concept:

• A defective material is identified during production or inspection.
• A rework order is created, specifying the rework activities needed.
• The rework order consumes the defective material and any additional components required.
• Upon completion, the reworked material becomes usable and finished well.

The Benefits of Using Rework Orders

• Improved Quality Control: Rework orders provide a structured approach to addressing defects, minimizing the risk that they will reach the customer.
• Cost Transparency: They track the additional costs associated with rework, enabling better cost analysis and potential process improvements.
• Inventory Management: Rework orders ensure proper inventory management by differentiating between defective and usable materials.
• Production Efficiency: Streamlined rework processes through rework orders to minimize disruptions in the overall production flow.

Creating a Rework Order in SAP PP

There are two main ways to create a rework order in SAP PP:

1. Direct Creation (CO07): Use transaction code CO07 to create a new rework order, specifying the material to be reworked, rework activities, and any additional components.
2. Confirmation with Rework Quantity (CO11N/CO15): During confirmation of a production order with defective materials, you can create a rework order by specifying the rework quantity.

Additional Considerations:

• Rework Order Type: Configure your system’s dedicated rework order type for easy identification and reporting.
• Settlement Rule: Define settlement rules to determine how costs associated with the rework order are allocated.
• Operation Set: Utilize reference operation sets to streamline the creation of rework orders with predefined rework activities.

Conclusion

Rework orders are a valuable tool in SAP PP for managing production quality and efficiency. Understanding the concept and utilizing the functionalities effectively ensures a smoother production flow, minimizes rework costs, and maintains high-quality standards.