ENTREPRENEURIAL OPERATIONS
PRODUCTION PLANNING AND CONTROL
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Scheduling Information
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Costing
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Capacity Planning
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Simplifying operation maintenance
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Detailed explanation-1: -What is a Cost center in SAP? In SAP production planning, each work center will be assigned to one cost center. For every activity type defined in a work center, an activity rate will be maintained in the cost center. SAP system uses this information to calculate activity cost for an operation.
Detailed explanation-2: -Cost center is place where you incur your costs. Work center is a place where an operation is performed by a person/machine (group). Link between them: The activities performed at or by the work center are valuated using charge rates which are defined/determined by cost centers and activity types.
Detailed explanation-3: -A work center is a location where production activities take place. Depending on the activities, people and machines are linked to specific work centers. Work centers are maintained in the bill of critical capacities.