SAP PP

10 May 2016

 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.

Manufacturing Planning & Execution

Components
Sales Info System
Information contains total sales orders already obtained, incoming sales orders,
pending sales orders product wise, customer wise, region wise.
Forecasting
Based on the past history of consumption, a forecast of
the sales figures for a product can be made.
Future projections are made using one of the Statistical forecasting
methods.
CO/PA
Projections will be based on the companys future projection
of costing and profitability analysis.
Sales & Operations Planning
Higher level planning i.e. overall planning at company level
Yearly/Half yearly/Quarterly Planning

 MPS(Master Production Scheduling)

Planning of items that greatly influence the
companys profits or consume critical
resources/dominate production processes.
After the production plan of these critical items are
firmed up, the planning of other components are
taken up.
MRP (Material Requirements Planning)
This is the total planning of all the components
taking into consideration the existing requirements
and stocks.
Creation of purchase requisitions, production orders,
etc.

Standard Production Planning Report

Consumption: Lists the consumption of a material for the
period in question.
Quantity produced: This report lists the quantity of the
material produced during the Period in question.
Work center Loads: This report lists the available capacities,
required capacities, remaining available capacities and % load
for the work center.
Missing parts: Lists the missing parts that are required for the
production of a material.
Backlogs: Lists the backlog of the load at a work center for the
period in question.

Production Planning Basic Data

SAP PP Integration With Other Modules

Master Data in SAP PP

Bills of Material(BOM)

BOM Validity:
Area of Validity The same Bill of Material can be allocated to several
plants. Before you can allocate the BOM to a different plant, the material
must exist at the new plant, the unit of issue on the BOM item must be the
same.
Validity Period (Valid from/to dates)
Becomes effective with the valid from date
The validity date is determined by the system automatically to be
either the next effective from date, or 12/31/1999

BOM Glossary:
BOM Category categorizes BOMs to represent different objects; for example:
Material BOM -- structure of products manufactured
Equipment BOM -- structure of equipment for plant maintenance
Document BOM -- structure of documents such as drawings (3.0)
BOM Group is a collective number for all BOMs in a group which allows for
one or several similar products to be described under one number.
All Alternatives of a multiple Bill of Material
All variants of a variant Bill of Material
BOM Usage special view of the BOM which represents a specific area of the
company in which the BOM is used; for example, Engineering, Production,
Costing, Sales, Plant Maintenance. The BOM Usage allows different views to
exist without separate BOMs for each usage.
Sub-Items are typically used to represent different installation points for partial
quantities of an item. In assembling resistors on a printed circuit board, the
installation points are described .

Work Center and Routings

Use of Formulas in Work Center

Production Master Data & Material Allocation

Routing Operation Sequence

The Planning Concept in SAP PP

Sales and Operations Planning

Various Planning Strategies Used in SAP PP

Make to Stock: Make product for stock in expectation of
customer sales. Planning Requirement Type is LSF
Planning with Final Assembly: Make product in expectation
of customer sales. Planning Requirement Type is VSF
Eg. Products with Long Lead time
Planning without Final Assembly: Final assembly is initiated
by the customer sales order. Production is stopped at subassembly level. Planning Requirement Type is VSE
Eg. Automobile assembled with unique features

 Planning with Planning Material: Planned

independent requirements of Planning Material
initiate procurement of the planning bill
components. Planning Requirement Type VSEF
Production by Lot Size: Make Product in a
Predetermined Lot size
Make to Order Production: Sales orders are
planned according to sales order number.
Produced quantities for each sales order are
managed individually.

MRP Features

MRP Pre requsite:

At Plant Level : Activated for MRP
At Material Level:
Valid MRP Type, Valid Material Status
Material MRP Views Maintained
MRP Controller, Planned Lead Time,
MRP Group, Lot Size Data
Material Master: MRP 1 Key
Scheduling Parameters
Planning Time Fence: defines a period during which MRP/MPS will not
automatically add or reschedule orders
Scheduling Margin: controls the release period, opening period for a
material and scheduling floats for production
Release period is the number of working days in the release period
Opening period is the number of working days between the order
creation and planned start date
Order floats allows for safety margin before and after production
Planned Delivery: lead-time for purchased material
In-house Production: lead-time for manufactured material
GR Processing Time: goods receipt processing time
Example: dock-to-stock time

 Planned Delivery: lead-time for purchased material

In-house Production: lead-time for manufactured
material
GR Processing Time: goods receipt processing time
Example: dock-to-stock time
MRP 2 Key Fields:
Availability Check indicates whether the system
generates individual or summarized requirements for
sales orders for this material and for planning, which
MRP items the system includes in the availability
check.

Mat./PPC Status is used to limit the usability of

materials for certain activities such as, purchasing, bills
of material

 MRP 3 Key Fields

Consumption Mode: controls consumption of planned independent

requirements by customer requirements
Selections: backward, forward, or both
Consumption Periods Backward/Forward: specifies the number of
periods of forward or backward consumption
Used in conjunction with consumption mode

MRP Types

Carrying Out Planning Run

Total Planning: All Materials in Given Plant will be taken into
consideration
Planning run options for automatic creation of
requisitions & delivery schedules
MRP Control Parameter: determine whether or not MRP will
automatically create requisitions or delivery schedules
Options are:
Do not automatically create. Only create planned order
Automatically create within the opening period
Automatically create for the entire planning horizon
Opening Period Parameter: allows the user to take
advantage of MRPs automatic creation features while retaining
control over the number of open purchasing documents

Planning for In-house Production

Production order Creation

Production Order Release & Material

Availability Check

Goods Movement for Production Oreder

Goods Issue Results

Completion Confirmations

Confirmation Data

THANK YOU