What is SAP PP?

What is SAP PP?

Introduction of SAP PP

SAP Production Planning generally called as SAP PP comprises the combination

and streamlining of the various requirements of a manufacturing business and takes
good care of the precise planning of its associated processes. Commonly, the
central function of a production area is to create secure goods and services for end
user consumption - the price efficient and powerful way. In this respect, a smartly
considered and well-organized production department is of highest concern for
greater fertility and profit building figures alike.
SAP Production planning Department functions usually consist of:
• Planning of schedules
• Dispatching inspection
• Co-ordination and control of raw materials, workers, and devices for delivering
high-quality goods and satisfying customer needs.
SAP Production planning devices are fully provided for allowing all the Master Data
and presenting them quickly available for forwarding decision-making businesses.

What are the important stages in SAP PP?

The PP flow consists of planning and execution as outlined below:

1. First of all, an order is produced for the product to be designed through

demand management. It measured the amounts to create and the time for the
last meeting.
2. The data from demand management is transported to MRP.
3. The MRP tests for the availability of stock at different stages of BOM. In case
the stock is not ready MRP created planned order and Purchase request for a
creation of elements in house and acquisition from vendor sequentially.
4. Production in charge transforms the proposed order to production order and
brings out the production actions once the order is issued for creation.
Production is brought out as per the procedure levels are given in the
routines. Work centers are also introduced with each movement in the
routines where these operations are to be taken out.
5. Once the production is finished production verification is completed and
goods transfer takes place.
6. Capacity planning is still the different portion of PP which finishes the
capabilities for different work centers. MPS is the extra device which is
utilized to plan out the master stocks. If MPS is to be worked the inputs are
 given from demand management to MPS. And the output from MPS is then
served within MRP.

Sub Components of SAP PP

• DM (Data Management)
• LTP (Long term planning)
• Shop Floor Control
• SOP (Sales Operation Planning)
• Bills of Material (BOM)
• MRP(Material Requirement Planning)
• MPS (Master Production Schedule)
• Capacity planning
• CRP (Capacity Requirement Planning)
• Automatic material requisitions on the basis of MRP
• Routings
• Information systems and so forth.

This module is completely united with other SAP modules such as:
• FI-CO (Financial Accounting and Controlling)
• Plant Maintenance (PM) and
• Material Management (MM)
• Sales and distribution (SD)
• Logistics Execution (LE)

SAP PP manages complete business processes related to the creation of a

manufacturing unit. Here, the R/3 system modular data is properly distributed as
transaction data and master data; where the end is determined in the form of
singular module objects. These PP Master Data objects must be applied earlier to
the use of transactions.

Routing and Work Centers in SAP PP Production Planning

Work centers are an essential component of production planning in SAP. In the

simplistic terms, a work center is a place where a special operation is completed.
Work centers aid in recognizing the location where the work is going to be
performed. Work centers are used in production task lists and in production orders.
There are several ways of viewing at work centers in SAP, where work centers can
be utilized as capacity collectors for internal and external processing. Thus, work
center is a place where production relating sources are used by productio n and
manufacturing exercises.
Now talking about the concept of routing in SAP PP. Routing defines a production
process. Routing in production planning define the order of the operations. Routing
also includes other production knowledge such as where the work will be
performed, the time needed to carry out the work, materials, and tools required etc.
Based on the type of work order, a special selection scheme is used to determine
the correct routing.

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