Explain what is SAP PP?
SAP PP process is related to production planning of a company and it encompasses all activities like MRP (Material Requirement Planning), BOM (Bills Of Material), Routing, Capacity planning, etc. but mainly it contains two segments
Material Planning: Material requirements planning, long term planning,
Execution Planning: Creation of production order, workflow, conformations, technical completion and good movement
Or
SAP PP process is related to production planning of a company and it encompasses all activities like MRP (Material Requirement Planning), BOM (Bills Of Material), Routing, Capacity planning, etc. but mainly it contains two segments
1. Material Planning: Material requirements planning, long term planning,
2. Execution Planning: Creation of production order, workflow, conformations, technical completion and good movement
What is SAP Production Planning? Why it is used?
SAP Production Planning is one of key module in ERP and deals with planning processes like capacity planning and material planning and execution of production order, bill of material and goods movement. SAP PP module handles master data that is required for BOMs activity, work center and routing and keep it in a separate component.
What is difference between Discrete and Repetitive Production?
Discrete production is known as industry where produce materials changed with each lot and costs are calculated as per orders and lots.
In Repetitive production, product is not changed for longer time period and production is done as total quantity and not in the form of individual lots.
Explain Production planning life cycle?
Converting planned order to Production Order
First step is to convert a planned order to production order. When you create a Production Order, type is defined in SAP PP system.
Issue the production order
To start the production process, it is necessary to issue Production order. Till a production order is not released, execution of production process is not started.
Issuing goods for production order
Issuing goods is required for providing the goods to execute the Production order. Once goods are issues, document number can be updated in the system.
Production order confirmation
All the sub processes are executed in accordance with required operations to confirm the production as per Production order.
Good receipts w.r.t Production Order
Once production order execution is completed, goods produced w.r.t Production Order are received and placed in storage area.
What are the different elements in Org structure under SAP Production Planning?
In SAP PP module, organization structure defined the location of manufacturing plants and storage locations within the plant. At the top you have company and company code and then each company code contains different plant and storage locations.
Which all modules SAP PP is integrated with? Explain the integrated activities that are performed with each module under PP?
To perform Production Planning and Control activities, SAP PP is closely integrated with other SAP ERP modules: SAP Sales and Distribution SD, SAP Material Management MM, Quality Management, Finance Accounting and Project System.
You can find list of below activities from Production Planning that are related to other SAP modules and integration with other modules.
SAP PP and SAP Material Management MM
This involved movement of goods, auto goods receipt.
It includes creating reservation for Production Order/Planning.
Raising Purchase orders with MRP Run.
Quotations and Vendor selection.
SAP PP and SAP SD
This is used to check the availability of material for production order.
To perform MRP Run, Requirement Types.
Bill of Material components and operation.
SAP PP and SAP FICO
Updating price in material master data
Defining activity Type in the Cost center
Assigning activity type to Work Center
Cost Estimation
Production cost controlling
Posting accounting activities related to goods movement, material request, etc.
SAP PP and Project System
Assigning planning activities to WBS in the Project.
Running Material requirement planning at Project level (MD51). The procured material attached to WBS are reserved as project stock against the particular project.
The component attached to network are planned at plant level and are reserved as plant stock.
SAP PP and Quality Management
Inspection Type 03 for discrete and repetitive manufacturing.
Inspection Type 04 for both Discrete and Repetitive Manufacturing
What are the different master data exists under Production Planning?
Bills of Material BOM
Material Master
Work Center
Routing
What is BOM?
Bill of material master data is related to material requirement planning and provides the list of components to produce the product.
To produce a product with different variants, you can create super Bills of Material that has list of components to manufacture different variants of a product and selection of component depends on details mentioned in planning order.
What is the difference between Material and Sales order BOM?
Material BOM
When a Bill of Material is created for a material is known as a material BOM in the SAP. Material BOMs are mainly used to represent the structure of products manufactured within your company.
Sales order BOM
Sales Order BOM is used when you specially tailor the make-to-order production of products as per requirements of the customers. To meet the customer requirements, you make sales order specific modifications to various assemblies.
What are the key characteritics of BOM?
You can create Bill of Material as single level or multiple level.
BOM type depends on the size, validity dates and production method.
You can create up to 99 Bills of Material as per material type.
You can use material Bill of material for the material available in PP module and equipment Bill of Material are used in Plant Maintenance module.
As mentioned you can create super BOM for different variants of a product.
What is Work Center under Production Planning? Why do we use Work Center?
Work center consists of master data related routing of products. It contains data related to scheduling, capacity planning and production costing.
All the manufacturing activities are performed in Work Center. Work center can be used to monitor these activities −
Scheduling
You can schedule the operations in Production order as per operating times in Routing and formulas mentioned in work center.
Production Costing
You can also check production costing as per formulas mentioned in work center. A Work center is also linked to cost center and it defines the cost of operation in Production Order.
Capacity Planning
You can find current capacity and future capacity requirements stored in work center.
What is Routing process under Production Planning?
Routine defines the list of activities to be performed for production process. Routing defines sequence of activities performed at work center. Routing plays in important role in calculating production cost, machine time and labor time.
What is the use of routing in PP or explain ley charactertics of Routing under Production Planning?
To create routing it is mandate that you first define work center.
Multiple materials can follow single routing group.
Routing is used for scheduling and costing of operation for raw and finished products.
Routing is used for calculation operation cost for finished product.
What are different Planning strategies?
Make to Stock Planning strategy
This is planning strategy where stock is produced without sales order. It is used to meet customer demands in future.
When you use Planning strategy 10, only PIR quantity is considered for MRP run and sales order are completely ignored. In this PIR requirement type LSF and is reduced when you deliver stock to customer.
When you use Planning strategy 40, for MRP run maximum of 2 PIR and Sales order can be considered and PIR is reduced when enter the Sales order. PIR requirement type is VSF in this case.
Make to Order planning strategy
In this planning strategy, finish products are not produced until you receive sales order from a customer. For MRP run, you only consider Sales order.
In MTO strategy, you only produce sales order stock and products are delivered as per sales orders from specific customer.
You use Planning strategy 20 for make to order MTO process and planning strategy 25 is used to produce product variants when there is request for variant products from customer.
What is Material Requirement Planning under Production Planning?
MRP run or planning run is an engine which is used to fill demand and supply gap. Issues & Receipts are called MRP Elements. Issues include PIRs, Dependent Requirements, Order Reservations, Sales Orders, Issuing Stock Transfer Orders, etc. and receipts include Production Orders, Purchase Requisitions, Purchase Orders, Open Production Orders, Receiving Stock Transfer Order, Schedule lines, etc.
Mention what are the production process in SAP?
There are three types of production process in SAP
Discrete Manufacturing
Repetitive Manufacturing
Production- Process Industries
List out the activities carried out in Production Planning?
Activities involved in Production Planning includes
Processing material master
Creation of Bill of Material
Displaying work center and routing
Maintaining planning calendar
Maintaining production lot
Maintaining quota file
Defining range of coverage profile and profile for safety time
Defining MRP views
Explain what is Routing in SAP PP?
Routing in SAP PP is referred to a list of activities which are required to produce any material. For example, when you do cost estimation for the material, the system triggers the relevant routing and activity rates for all those described in routing. Which will helpful to calculate the processing cost in product costing
What are the steps of Production Execution Process?
Production Execution steps include
Converting planned order to production order
Releasing the production order
Goods issue for production order
Confirmation of production order
Goods receipt against production order
What are the reports generated in product cost controlling information system?
Product Cost controlling information system generates information for following areas
Product cost planning
Cost object controlling with the subcomponents
Product cost by period
Product cost by order
Product cost by sales order
Costs for intangible goods and services
Actual costing / Material Ledger
Explain what “work center” in SAP PP is and what is the use of Data in Work Centers?
“Work Centers” are business objects in SAP-PP that is used in task list operations ( routings, maintenance task lists, inspection plans) and work orders.Data in work center is used for
Scheduling: Formulas and operating time are entered, so that the duration of an operation can be calculated
Costing: Formulas are entered so that the costs of an operation can be calculated
Capacity Planning: The available capacity and formulas for capacity requirements is entered
Simplifying operation maintenance: Various default values can be included in the work center
What is the use of MRP PP evaluations?
This role contains a function for evaluating the MRP result. This function can be used to find information about the availability of material and to identify any material shortage situation.
Mention what is the purpose of using Capacity Planning?
Capacity Planning supports planning in all phases
Long term rough cut planning
Medium term planning
Short term planning
It can be integrated with various SAP applications like SAP-SD, PP, PP-SOP, PP-LTP, PP-SFC, etc.
Explain how can you create production order without routing and BOM?
Without BOM and routing you can create a production order by changing the config in OPL8 ( order type dependent parameters) as routing optional. When we try to create an order using C001 it may ask for a sales order.
Explain what happens to planned after it has been converted into production order?
When planned order is converted to the production order, the planned order are offset by production order. The planned order reference can be seen in the production order.
Mention what is the difference between stock transport order and stock transfer order?
Stock transfer order: It is referred to the transfer of stock for the usage in the same company
Stock transport order: It is referred to the change of title of stock in the name of the buyer
Explain what is PRT (Production Resource Tools) in SAP PP?
PRT (Production Resource Tools) are moveable operating objects used to perform repeated activities in plant or production maintenance, for example, documents such as drawings or programs for which document management functions are used. Various other PRT components include
Engineering drawings
Jigs
Fixtures
Measurement Instruments
Explain how to create PRT master records?
To create PRT master records you have to follow the following steps
Choose logistics/Accounting -> Project System -> Basic data -> Master data -> Production resources and tools -> Create
The initial screen for creating a PRT appears
Enter a number for the PRT and choose continue
The basic data screen appears
Maintain the basic data
Choose Goto -> Defaults and enter the default values
Save the PRT
Mention what is the t-code for changing production order and to display production order?
T-code to change the production order = C002
T-code to display the production order = C003
Explain what is PLM (Product Lifecycle Management) in SAP PP and what is the use?
It is a collection of solutions with which you digitally create, maintain and make product information, available in the whole company and for the entire life cycle of the product.
PLM provides you the function with which you do following things
The workplace is an open portal in the world wide web and allows you to access all application and information that you need to work with all external and internal business partners
It can link with other internet applications like program management, change and configuration management and engineering collaboration.
In SAP-PP what are the costing parameters?
In SAP-PP, the costing parameters are as below
Work Center: Activity types and the formulas, cost center
Routing: The time, activity types
In cost controlling information system mention the fields that are listed in the list screen of the report?
Following fields are listed in the list screen of the report
Key Figures
Costing/MM
%Costing/MM
Revaluation
VarCstRuns
%VarCstRuns
Basic data
Valuation
Cost component group 1/ Cost component group 2
CostCompGr(fix)1 / CostCompGr( fix)2
Explain what is the use of SAP Material View and list out other parameters where SAP Material View is applicable?
SAP Material View is an SAP object that not only hold name of the material, but various other information related to material like
Material production related information
Material planning related information
Material sales related information
Material purchase related information
Material storage and warehousing related information
Material costing and Accounting related information
Material batch specification information
Mention what are the types of Master Views for Production and Planning?
For production and planning types of Master Views are
SAP MRP1 View
SAP MRP2 View
SAP MRP3 View
SAP MRP4 View
SAP Work Scheduling View
Mention how MRP (Material Requirement Planning) types are classified?
MRP types are classified in two leagues
Materials for consumption based planning
Planning based on demand
Mention what are the keyfields found in MRP View 1?
MRP views 1 are mostly maintained for production purposes.
General Data
MRP Procedure
Lot size data
List out the basic procedure for dispatching operations in capacity leveling?;
For dispatch operations basic procedure includes
Either the user determines the date of dispatch or else it is specified by scheduling
A dispatching sequence needs to be determined if several operations need to be dispatched
The systems checks for
The dates to which operations are to be dispatched
The work center to which operations are to be dispatched
Finite scheduling is performed
Operation check is performed
Status for the operation is set as “dispatched.”
System carries out midpoint scheduling
Explain what is the need of MRP list if the stock requirement list is already given?
MRP list displays the result of the last planning run, changes that occurred between planning runs are ignored in the MRP list. While contrary to this, in the stock or requirement list all changes that occurred in the stock, issues and receipts are displayed by the system.
Mention what are the t-codes for creating, changing and summarizing BOM?
BOM transaction codes for
Creating BOM= CS01
Changing BOM= CS02
Summarized BOM=CS13
Mention what is the use of t-code CS20 in BOM?
With t-code CS20 you can do Mass changes to BOM like
Change the item data
Creating new material
Replacing it with another material
