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SAP PP (Production Planning) is a module for planning, execution, and control of manufacturing processes. It ensures that production is aligned with demand, resources are used efficiently, and costs are controlled. It\u2019s vital for reducing lead times, optimizing capacity, and integrating with supply chain processes.<\/p>\n
Includes Material Master (production views), BOMs, Work Centers, Routings, and Production Versions. Master data forms the foundation for planning and execution accuracy.<\/p>\n
A list of components needed to manufacture a product. Specifies material numbers, quantities, and units of measure. Used in planning, costing, and production.<\/p>\n
A location where production operations are performed. Contains data for capacity planning, scheduling, and cost allocation.<\/p>\n
A sequence of operations for manufacturing a product. Defines work centers, standard times, and inspection requirements.<\/p>\n
Links a material with a specific BOM and routing. Determines which version to use for MRP and order creation.<\/p>\n
Material Requirements Planning calculates material needs, generates procurement proposals, and aligns supply with demand.<\/p>\n
Responsible for running MRP and monitoring exceptions. Identified in material master.<\/p>\n
Translates sales forecasts into planned independent requirements (PIRs) for MRP to plan against.<\/p>\n
PIR \u2013 Forecast-based demand. Sales Order \u2013 Actual customer demand. Planning strategy determines consumption rules.<\/p>\n
Discrete \u2013 Individual units, flexible routing. Process \u2013 Continuous\/batch production using recipes.<\/p>\n
An instruction to manufacture a specific quantity of a product, containing BOM, routing, and schedule data.<\/p>\n
Ensures work centers can handle planned loads. Includes capacity leveling.<\/p>\n
Analyzes workload vs available capacity to identify bottlenecks.<\/p>\n
Automatic goods issue of components at confirmation instead of manual posting.<\/p>\n
GI \u2013 Issue of components to production. GR \u2013 Receipt of finished goods into stock.<\/p>\n
Recording operation progress, time, and yield. Can be partial or final.<\/p>\n
Backward \u2013 Calculates start date from finish date. Forward \u2013 Calculates finish date from start date.<\/p>\n
Monitors and controls production orders during execution, including confirmations and progress tracking.<\/p>\n
Allocates production costs to cost objects like materials or cost centers.<\/p>\n
High-volume, continuous production without discrete orders. Uses rate-based planning.<\/p>\n
Supports recipe-based production, resources, and process orders.<\/p>\n
MTS \u2013 Produce in anticipation of demand. MTO \u2013 Produce after receiving customer order.<\/p>\n
Determines order quantity for production\/procurement. Can be fixed, lot-for-lot, or period-based.<\/p>\n
Calculates operation start\/finish times based on routing data.<\/p>\n
Automates order release, scheduling, and printing.<\/p>\n
Focuses on critical materials or finished goods, planned separately from MRP.<\/p>\n
Standard Production Orders, Process Orders, Rework Orders, Planned Orders.<\/p>\n
Links orders for header and components so they are processed together.<\/p>\n
Co-products \u2013 Jointly produced items of equal importance. By-products \u2013 Secondary output with less value.<\/p>\n
Manages planned\/unplanned scrap quantities for costing and planning.<\/p>\n
Captures planned and actual production costs for variance analysis.<\/p>\n
Defines rules for settling order costs to receivers.<\/p>\n
Manages configurable products using characteristics and dependencies.<\/p>\n
Tracks batches for traceability and quality compliance.<\/p>\n
Links material availability and procurement with production needs.<\/p>\n
Aligns sales orders with production scheduling.<\/p>\n
Triggers quality inspections during production processes.<\/p>\n
Process Orders \u2013 Recipe-based, used in PP-PI. Production Orders \u2013 Discrete manufacturing with routings.<\/p>\n
Period during which MRP does not automatically change orders to avoid disruptions.<\/p>\n
Simulates future demand and capacity for strategic decisions.<\/p>\n
Subdivides planning responsibility within a plant for specific storage locations or subcontractors.<\/p>\n
Visual replenishment system using cards\/containers for lean manufacturing.<\/p>\n
Handles defective items that require additional processing using rework orders.<\/p>\n