SAP Conference Overview

SAP Sessions

Understanding Production Variances


SAP provides some very good tools for reviewing and managing production variances.  In this session we’ll look at how actual costs are assigned to orders and how those costs are compared to a standard for determining the variances.  Our focus will be the process of variance calculation and how the calculated variances are categorized.  We’ll review target cost versions to show how the variances calculated can be different for each version.  We will explore how each version can be used to help manufacturing fully understand and manage the variances.  The reporting of scrap is a normal part of production, and this will be explored to show how the effects of scrap impact order variances.  We’ll devote a portion of the session to sharing experiences with managing production variances and look at practices that provide the most benefit to your company.

Tom King

Tom King recently retired from Milliken and Company, a leading manufacturer of specialty textiles, floor covering, and chemicals based in Spartanburg, South Carolina with global manufacturing facilities, where he was a Senior Business Analyst. He has more than 30 years of experience at Milliken in manufacturing and product costing. Tom was lead CO analyst involved with the SAP implementation worldwide. He has written three SAP books: Practical Guide to SAP CO Templates, SAP S/4HANA Product Cost Planning Configuration and Master Data, and SAP S/4HANA Product Cost Planning Costing with Quantity Structure.

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