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

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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

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.

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.

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.

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.

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

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.

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.

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.

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.

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.

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.

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.

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.

There are three types of production process in SAP

Discrete Manufacturing

Repetitive Manufacturing

Production- Process Industries

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

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

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

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

“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

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.

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.

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.

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.

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

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

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

T-code to change the production order = C002

T-code to display the production order = C003

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, the costing parameters are as below

Work Center: Activity types and the formulas, cost center

Routing: The time, activity types

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

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

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

MRP types are classified in two leagues

Materials for consumption based planning

Planning based on demand

MRP views 1 are mostly maintained for production purposes.

General Data

MRP Procedure

Lot size data

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

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.

BOM transaction codes for

Creating BOM= CS01

Changing BOM= CS02

Summarized BOM=CS13

With t-code CS20 you can do Mass changes to BOM like

Change the item data

Creating new material

Replacing it with another material