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SAP Overview

Production Planning

All Rights Reserved Valores Corporativos Softtek S.A. de C.V. 2013.Confidential.

Production Planning
Production Planning is the process of aligning
demand with manufacturing capacity to create
production and procurement schedules for
finished products and component materials.
It tracks and makes a record of the
manufacturing process flows, for example, the
planned and actual costs. Also, goods
movements from the conversion of raw
material to semi-finished goods.
It is fully integrated with the other SAP
modules: SD, MM, QM,FICO& PM.

PP Organization Structure
Importance of Plant and storage locations in Production
Planning All Production master data is created at Plant level.
Planning activities are also performed at Plant level.
Production Confirmation process and related goods movement occur at
plant and storage location level.

Master Data
List of Master Data is SAP PP Module:
Material Master
Bills of Material
Work Centre
Routing

Material Master

Bill of Material

Multi Level BOM

BOM Categories

BOM Structure:
Header
Item
Sub items

BOM Effective Period:


Valid from Date
Valid to Date

BOM Header Permissible for MRP,


Costing, Operation assignment, Production
orders, Sales orders
BOM Item Relevant for Design,
Productions, Plant Maintenance, Spare parts,
Sales, Costing etc

BOM Explosion

Work Centre

Work Centre Data

Routing

Routing Components

A Material can be manufacture in


different ways
For each material, we can create
several routings for different Lot
Sizes, work centres etc.
PRTs can be assigned through routings
Alternative sequence in Routing can be
maintained
Parallel sequence can be maintained
Sub-Operations for an operation can be
maintained

Production planning
Demand Management
Material Requirement Planning
Planning of purchased parts
Planning of in house assemblies

Planning Process: Strategies

Planning Process: Demand management

Materials Requirement
Planning

Uses of MRP:

Planning Run
Steps In Planning Run
Types of Planning Run

Planning Run

MRP Control Parameters

Production Execution

Production Execution process


contains five important steps.
They are:
1. Converting planned order to
production order
2. Releasing the production order
3. Goods Issue for production order
4. Confirmation of production order
5. Goods Receipt against production
order

1. Converting planned order to


production order: Planned order has to be converted to
production order to account the entire
production.
Production order or process order type has
to be mentioned when converting the
planned order. Entire master data will be
copied to the respective order when
converting the planned order.
Order type is the most important
configuration setting for production
execution.

2. Releasing the production order: Release of production order is an important


step in production order. Releasing of
production order indicates the commencement
of production. Unless the order is released,
further processing of order is not possible.
While releasing the production order system
can perform
o Material availability
o Capacity availability
o Creation of Batch
o Reservation creation

4. Confirmation of production order: Reporting of usage of components and activities


are termed as confirmation.
Confirmation to the each operation will be
executed according to the control key attached
with each operation.
Confirmation configuration setting controls
Adhering to the sequence of operation
Under delivery / over delivery tolerance
Back-flush components
Proposal and calculation of activity standard value
Above configuration settings are discussed in
confirmation parameter.

5. Goods Receipt against production


order: Once the production is completed, finished
products will be received from the production
order into the respective storage area.
This can be achieved through two ways
1. Through confirmation
2. Through separate transaction.
Document number will be generated for
each goods receipt. This document number
can be updated in the production or process
order.

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