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Planning strategies: Production Planning

Planning strategies are used to define the planning steps that the SAP system is to perform and
the sequence in which it is to perform them. Each planning strategy comprises one or more
methods that represent the individual planning steps.

A requirement is a quantity of material that is needed on a certain date in a plant. Planning


strategies represent the business procedures for the planning of production quantities and dates.

Independent requirements are unrelated to the demand for other materials. Planned
independent requirements and sales orders are independent requirements.

A planning strategy specifies any of several possible material planning procedures.

• Some planning strategies support a make-to-stock environment. For example, we could


plan production / procurement based on a forecast, then fill customer orders from existing
stock.
• Some planning strategies support a make-to-order environment. For example, we could
wait for a customer order before we start production / procurement.
• Some planning strategies support a combination of make-to-stock and make-to-order.
For example, we could build the subassemblies based on a forecast. Then we would wait
for a customer order before assembling them into a finished product.

A wide range of production planning strategies are available in the SAP system, offering a
large number of different options ranging from pure make-to-order production to make-to-stock
production. Depending on the strategy you choose, you can:

· Use sales orders and/or sales forecast values to create the demand program

· Move the stocking level down to the assembly level so that final assembly is triggered by the
incoming sales order

· Carry out Demand Management specifically for the assembly

Planning strategies can also be combined. This means that you could select the planning strategy
Planning with Final Assembly for a finished product, but you can still select a different strategy,
such as Planning at Assembly Level for an important assembly in the BOM of this finished
product.

The planning strategies available for a material are listed in Customizing. You can assign a
planning strategy to a material in the material master record, by means of a strategy group.
Different requirements types are defined for each of the strategies and each requirements type
contains important control parameters.

MRP Calculation Configuration

To carry out the material requirements planning (MRP) run (Planning Run) in SAP
system, the required settings need to be determine for the MRP calculation.

SPRO → Production → Material Requirements Planning → Planning → MRP Calculation

The following are settings required for MRP calculation:

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Tags: Material Requirements Planning, MRP Calculation, Planning Run

Opening Period for Backward Scheduling

The opening period is the time required by the MRP controller to convert the planned orders
into purchase requisitions as an extra time buffer. It is defined in scheduling margin key of
material master which is maintained in ‘MRP2‘view. The opening period is only used in
backward scheduling.

For the MRP Run with “Create Purchase Requisition in opening period“, which means that the
MRP creates preq at the time calculated as follows:

Requested date – planned delivery time = opening period

Until this moment MRP keeps them as planned orders.

Opening periods are defined in scheduling margin key configuration by following the path:

SPRO → Production → MRP → Planning → Scheduling and Capacity Parameters → Define


Floats (Scheduling Margin Key)

Then assign the scheduling margin key in material master in MRP2 view (MM02 transaction).

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Tags: Backward Scheduling, MRP, Opening Period

Production Version in SAP


Production Version is key which determines the various production techniques according to
which a material can be manufactured.

The production version determines the following:

• The BOM alternative for a BOM explosion

• The task list type, the task list group and the task list group counter for allocation to task lists

• Lot-size restrictions for repetitive manufacturing

A production version determines which alternative BOM is used together with which task
list/master recipe to produce a material or create a master production schedule. Several
production versions can be assigned to one material for various validity periods and lot-size
ranges.

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Tags: Master Data, production version

Make to Stock Production – Planning with Final Assembly (40)

Planning with Final Assembly strategy is probably the most widely used make-to-stock
strategy. It makes sense to use this planning strategy if production quantities can be forecast for
the final product.

The main focus of Make to Stock Production – planning with final assembly (strategy 40) is
on flexibility in reacting to customers’ demands. Production, including final assembly, is
triggered by the planned independent requirements before
the sales order is received.

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Tags: Make to Stock, Planning Strategies

Requirements Classes in Demand Management

Requirements classes in Demand Management control the creation of planned independent


requirements or sales orders and customer requirements.

The following is determined via the requirements type:

Consumption of independent requirements and customer requirements how warehouse stock is


taken into account (net or gross requirements planning)
Inventory management and cost consumption (make-to-order or make-to-stock) if the planned
order can be released (planning without final assembly)

Requirements distribution (configuration)

The control parameters for the requirements class are stipulated in demand management
and cannot be changed.

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Tags: Demand Management, requirements class, requirements type

Make to Stock Production – Production by Lots (30)

Production by Lots strategy is particularly useful for companies that mainly produce for major
customers but who also require the option of selling smaller requirements from stock.

In production by lots (strategy 30), the requirements for the finished product are transferred to
MRP when a sales order is created. The additional warehouse requirements can also be planned
in Demand Management.

For using Production by Lots strategy, the following master data must be maintained for the
finished product:

Make to Stock Production – Net Requirements Planning (10)

Net Requirements Planning strategy should be chosen if you want production to be determined
by a production plan (Demand Management) and if you do not want sales orders to influence
production directly.

The demand program is defined without reference to sales orders that means the sales orders
are not relevant to MRP, but can be displayed for information purposes.

.This setting can be made in the “No MRP” field in Customizing for the appropriate requirements
class (work step, “Defining Requirements Classes” in Customizing for SD).

Sales orders are covered by warehouse stock. In Sales and Distribution Module, you can carry
out the availability check according to ATP logic. Material withdrawals for a sales order reduce
this sales order’s quantity.

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Tags: Make to Stock, Planning Strategies


Quota Arrangement in SAP

Quota Arrangement Definition

A quota arrangement is used in APO to apportion product quantities among source or


destination locations according to your wishes. You can specify weightings for partner locations,
external procurement, and in-house production, according to which the quantities are to be
apportioned.

There are two different quota arrangement types:

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Tags: Master Data, Quota Arrangement, SAP APO

Benefits of Production Planning

The overall goals of production planning and the use of planning strategies, is to better serve
your customers by reducing:

• Storage costs

• Replenishment lead times

To reach that goal you should collect your materials according to their individual needs. You
should create as few groups as possible (for better transparency on the shop floor) and as many
as necessary (for flexibility).

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Tags: Planning Strategies, Production Planning, SAP, SAP PP

Converting Planned Orders in SAP SCM

Planned orders are used to plan the in-house production of a material. SAP SCM planned
orders already contain all production dates.

SAP SCM planned orders can be transferred to SAP ECC. However, the corresponding SAP
ECC planned orders contain no operation dates. Instead, they contain the basic dates between
which production should take place.

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Tags: Planned Order, Production Order, Production Planning, SAP ECC, SAP SCM
Define Factory Calendar for Plant

We found some discrepancy between factory calendar and planning calendar in SAP system.
In factory calendar setting, it shows we are standing on wk 40 but planning calendar is wk. 41.
Is there any effect for this setting?

Where did we set configuration to use planning calendar XXX and how SAP system know we
use Factory calendar “XX” for plant?

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Tags: Factory calendar, OX10, Planning, Planning calendar, SAP MEP, T001W

The Concept Of SAP MRP (MRP ERP system)

The key difference between Enterprise Resource Planning (ERP) and Manufacturing
Resource Planning (MRP) is tracing the evolution of both functions from material requirements
planning.

Material Requirements Planning was developed as a mechanism for manufacturing companies


to calculate more precisely which materials they required, at what time and in optimum
quantities.

MRP (Material Requirements Planning) is the planning tool in SAP which will look at all
aspects of a material and is highly based upon the master data of the material

Functions of Stock/Requirements List

September 22, 2010 by SAP PP · 1 Comment


Filed under: Production Planning, SAP MRP, SAP PP

The stock/requirements list offers several display options:

• You can display different dates (the availability date or the goods receipt date, with/without
safety time)

• You can work with display filters and selection rules.

• You can work in the period totals display and lots more.

• You define the display accordingly in your personal settings.


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Tags: MRP List, Production Planning, SAP MRP, SAP PP, Stock/Requirements List

Stock/Requirements List and MRP List

The planning situation or planning run result can be evaluated by using the
stock/requirements list or MRP list. You can do this using individual access or collective access.

The stock/requirements list is a dynamic list: it contains up-to-date information on the current
status of stocks, requirements and receipts. You are able to view any changes immediately.

This can be done as soon as the current stock / requirements list is called up or, upon displaying
the current stock / requirements list, the elements are re-read from the database using the
“Refresh” function.

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Tags: MRP List, Production Planning, Stock/Requirements List

SAP Message – Number Range object PLAF nearly exhausted

I have faced an issue related to Number ranges for planned orders. for plant XXX the number
range assigned is 01 for planned orders. in the present number is 0000000001 to 0899999999 and
current # is 815567699.

Here still almost 84432300 numbers are available for further usage. But MRP run fails to create
planned orders with Exception 8 “Number range nearly exhausted and Planned orders not
created”

What may be the issue?

I expect if it is nearly exhausted it has to throw a Warning message instead of Error Message.
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Tags: MRP, Number Range, PLAF, SAP MRP, SAP PP, SAP PP Problem
Evaluations in SAP SCM for DP and SNP

The SAP SCM planning data can be evaluated directly using BW tools. These tools not only
evaluate InfoCubes in the internal BW system but also transaction data directly from the live
Cache.

To use liveCache reporting, you require a planning area in SAP SCM, an extract structure for
the planning area, and InfoSource and an SAP RemoteCube, which provides the interface to the
BW front end.

.Using the BW Business Explorer in SAP SCM system, you can evaluate:

• Order data from the SAP liveCache


• Aggregated data in InfoCubes

SNP Planning Process – SAP SCM

When the demand plan is released from Demand Planning, planned independent requirements
are created for SNP or PP/DS. This step is normally executed in background processing.

A medium-term production and distribution plan is created when you use the SNP heuristic, SNP
optimization or Capable-to-Match to execute the SNP run. After the SNP run, check the
exception messages (alerts) and solve any problems that exist.

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Tags: Demand Planning, PP/DS, SAP SCM, SNP

SNP in the Planning Process

Demand Planning enables you to forecast material requirements based on historical and
univariate forecasting techniques. Demand Planning data is usually period-based and
unconstrained. The forecast data is then released to Supply Network Planning (SNP) to create
constrained and feasible production and distribution plans.
SAP PP Capacity Planning

Work Center works with infinite capacity in SAP system. After MRP Run, even if a particular
Work Center is overloaded, one will be able to Complete Production Order defined at that
particular Work Center.

Capacity Evaluation can be used for analysis purpose and capacity leveling can be used
manually to allocate the load to different Work Center.

Capacity evaluations are used to analyze capacity loads. One can adjust the analyses for each
user according to the planning level, planning horizon and the area of responsibility. Available
capacities and capacity requirements can be selected according to various criteria and cumulated
using any period split one chooses.
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Tags: Capacity Evaluation, capacity leveling, Capacity Planning, SAP PP, Work Center

Capacity Leveling in Production Planning

The capacity leveling process in production planning (PP) depends on the planning level at
which it is to be carried out. It is important to distinguish between the following planning levels:

· Long-term planning (LTP)


· Material requirements planning (MRP)
· Shop floor control (SFC)

The objectives of capacity leveling include:

· Leveling overloads and under loads at work centers


· Achieving optimum commitment of machines and production lines
· Selection of appropriate resources

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Tags: capacity leveling, Capacity Planning, Production Planning, SAP PP

Supply Network Planning in SAP SCM

The main advantage of Supply Network Planning (SNP) over the SAP ECC MRP planning
run or SAP SCM PP/DS is that,

in SNP, the system calculates the sequence of locations to be planned for each product.
If you select a finite planning procedure in SNP, planned orders, stock transfers and purchase
requisitions are only created in locations that have sufficient capacity and components.

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Tags: SAP SCM SNP, SNP, Supply Network Planning

Cross-Plant Planning using SAP SCM

Overview of Cross-Plant Planning

Supply Network Planning (SNP) is used for cross-plant planning of the supply and
procurement network. It is essential for you to be able to detect bottlenecks in the medium-term
horizon so that you can plan their effects on the entire supply chain.

Supply Network Planning (SNP) is based on demands that are entered in the form of sales
orders or planned independent requirements. These requirements are covered by in-house
production, stock transfers from other plants or by external procurement from external suppliers.

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Tags: PP/DS, SAP SCM PP/DS, SAP SCM SNP, SNP

Prerequisites for Collaborative Planning in SAP SCM

Collaborative Planning can be used in DP or SNP to exchange planning data with customers,
subsidiaries or suppliers using your Internet browser. Macros, alerts and notes can be also used
in Collaborative Planning. Collaborative Planning is designed for the exchange of small volumes
of current data, rather than mass data

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Tags: Collaborative Planning, Demand Planning, SAP SCM

Forecasting Techniques

Future market demand can be forecasted in part on the basis of historical data. Mathematical
techniques are used for this purpose.

Standard Forecasting Techniques

• • Moving average
• • Constant model
• • Trend model
• • Seasonal model
• • Exponential smoothing
• Planned Orders and Production Orders
• A planned order is a procurement proposal that is generated manually or automatically
during planning and that is converted into a purchase requisition or a production
(manufacturing) order.
• Planned orders can be generated in both SAP ECC and SAP SCM system. Planned
orders are used to plan the in-house production of a material.
• Read more
• Tags: Planned Order, Production Order, SAP APO, SAP ECC, SAP SCM

• Sales orders and Planned Independent Requirements

• Sales orders (customer independent requirements) are created in Sales and Distribution
(SAP ECC SD). Sales orders can be entered in material requirements planning directly.
This is always required in customer-specific planning. They represent an order made by a
customer, whereby a certain quantity of a product is required by a predetermined date.
Sales orders represent a requirement in the delivering plant.
• Sales orders cannot be created in the SAP SCM system. They are transferred from SAP
ECC to SAP SCM system using the CIF interface. Therefore, the sales orders are only
created in the SAP ECC system. The ATP check of a sales order can take place globally
in SAP SCM (integration with PP/DS is also possible).
• Read more
• Tags: Independent Requirements, Planned independent requirements, Sales Orders, SAP
ECC, SAP SCM
• SAP ECC Routings
• Routings contain the following steps that are necessary for production:
• the relevant operations, their sequence and the work centers in which these operations are
to be executed.
• SAP ECC routings can be transferred to SAP SCM system in the form of production
process models (PPM) or production data structures (PDS). A SAP ECC routing can be
defined using the routing group and the group counters.
• Read more
• Tags: Routing, SAP ECC, SAP SCM, Standard Values, Work Center
• SAP Master Data : Customers and Suppliers
• Customers and suppliers are defined as business partners in the SAP ECC system.
They enable you to control different sales or purchasing processes.
• The sales process plays a role in the Vendor Managed Inventory (VMI) scenario in
SAP SCM. The customer master record is transferred to SAP SCM system as a
corresponding location to plan the transportation of a product to a customer as well.
• Read more
• Tags: Master Data, SAP ECC, SAP SCM
Transition from Medium-Term to Short-
Term Planning
July 2, 2010 by SAP PP · Leave a Comment
Filed under: Production Planning, SAP Advanced Planning and Optimization, SAP PP, SAP
SCM, Supply Network Planning

Converting SNP Planned Orders into PP/DS Planned Orders is the transition from Medium-
Term to Short-Term Planning

Supply Network Planning (SNP) is used for medium-term to long-term planning across the
entire supply chain (in particular if several plants and distribution centers are available). In this
case, demands for a set bucket (one day, for example) is aggregated. When exactly the demand is
accumulated in the respective bucket is not yet of any importance. Order sequences do not play
a role in SNP either.

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Tags: PP/DS, SAP SCM SNP, SNP, Supply Network Planning

Cross-Plant Planning

Cross-Plant Production ensures that medium to long-term planned independent requirements


and sales orders, are covered by means of receipt elements such as stock transfers, planned
orders and purchase requisitions. It is based, for example, on the requirements you have
determined in Demand Planning for distribution centers and determines how these requirements
are met by distribution centers, production plants and suppliers in your network. Cross-Plant
Planning is carried out using the component SAP SCM SNP (Supply Network Planning).

This type of planning can be executed finitely, which means that production resources, storage
resources, or transportation resources in your network can be taken into account even at this
rough planning stage.

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Tags: PP/DS, SAP SCM PP/DS, SAP SCM SNP, SNP


Demand Management in SAP

Demand management is used to manage independent requirements. The way in which


independent requirements behave in material requirements planning (for example, if they affect
requirements or if they consume other requirements) can be determined by their requirement
type or their planning strategy.

Planned independent requirements are stock requirements that can be derived from a forecast
of future demand. In make-to-stock production, you want to initiate the procurement of the
materials concerned, without having to wait for concrete sales orders. Using such a procedure,
you can shorten delivery times and use forecast planning to load your own production resources
as evenly as possible.

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Tags: Demand Management, Demand Planning, Independent Requirements, Sales Orders, SAP
ECC, SAP SCM

Standard Task List

Standard Task List describes the worksteps necessary to produce a material or perform an
activity without reference to an order.

Essential objects of a task list are header, operations, material component allocations, production
resources/tools and inspection characteristics.

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Tags: Task List

Demand Planning Process

The Demand planning cycle:

Past sales order quantities provide the basis for forecasting future demands. In addition, market
intelligence or one-off events (such as trade fairs) can be included in the forecast. As a result of
the forecast, the demand plan is released as planned independent requirements.

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Tags: Demand Planning, Independent Requirements


Planning Levels in Demand Planning

Demand Planning is a tool for forecasting future demands. Both quantity-based plans and
value-based plans can be created. You can choose any planning levels you like. That means
future demands can be planned for specific customers, regions or sales organizations. Time
bucket profiles can also be freely defined for planning.

• Integration between SAP ECC and SAP SCM Planning



• The SAP SCM system is a planning tool that cannot be used in isolation (not stand alone
system). During planning, SAP SCM relies on data from SAP ECC system such as
stocks (inventory) or sales orders, while dates and quantities planned in SAP SCM
system are executed in SAP ECC system.
• The planning process in SAP SCM is linked to a constant exchange of data between SAP
SCM system and SAP ECC system. Planned independent requirements in SAP SCM
can result from Demand Planning in SAP SCM itself (release the forecast to SAP SCM
Demand Planning), for example. However, these planned independent requirements can
also be transferred to SAP ECC system for further planning.
• Read more
• Tags: SAP ECC, SAP SCM, SAP SCM PP/DS, SAP SCM SNP


• Production Planning and Control Process Flow

• The Production Planning process flow consists of planning and execution as described.
• First of all demand is generated for the products to be produced through demand
management. It calculates the quantities to be produced and the exact time for the final
assembly.
• The data from demand management is transferred to MRP. The data from demand
management can come from Customer Sales Order (firmed order) or Planned Order
(forecast).
Planning Horizons in Supply Chain Planning

Demand Planning (DP) allows you to forecast customer requirements by making forecasts on
the basis of historical consumption data, for example. Demand Planning data is usually period-
based and unconstrained. Forecast data is then released as planned independent requirements for
SNP and PP/DS.

The production horizon is used to decide which requirements are to be planned in SNP and
which are to be planned in PP/DS. The longer the production lead times, the longer the
production horizon that must be set on the SNP2 tab page of the product master. Requirements
that are not covered by PP/DS within the production horizon are covered by SNP outside the
production horizon.

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Tags: Demand Planning, Planning Horizon, PP/DS, SNP

Demand Planning in SAP

Demand Planning Definition

Demand Planning is one of fundamental planning functions in SAP. Demand Planning is


included in the area of Supply Chain Planning includes.

Demand planning forecasts future customer requirements using past or historical sales figures.
This can be carried out in SAP ECC as part of flexible planning (using standard SOP (Sales and
Operations Planning) or in SAP SCM in Demand Planning). Demand planning will be used to
deduce planned independent requirements.

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Tags: Demand Planning, SAP ECC, SAP SCM

Demand Planning Concept

Concept of Demand Planning

In Demand Planning, a forecast is carried out based on aggregated historical data. Historical
data for this can come from SAP ECC system (for instance from Sales or the LIS (Logistics
Information System)) or from SAP BW (Business Warehouse).

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Tags: Demand Planning, SAP BW, SAP ECC, SAP SCM


Supply Chain Master Data in SAP ECC and SAP SCM

The SAP SCM master data objects are usually not identical to those in SAP ECC system.
During master data transfer, the relevant SAP ECC master data is mapped to the corresponding
planning master data in SAP SCM system.

The SAP ECC system always be the leading system for the master data (master data is only
maintained in SAP ECC system). Only specific SAP SCM master data that does not have an
equivalent in SAP ECC system is created directly in SAP SCM system.

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Tags: Master Data, SAP ECC, SAP SCM

MRP Type – X0

The materials that are planned in SAP SCM system cannot be re-planned in SAP ECC system.
The planning result will be transferred from SAP SCM system directly to SAP ECC system in
the form of planned orders. However, dependent requirements must be determined for materials
that have a BOM in SAP ECC system (usually as a result of material requirements planning
(MRP)).

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Tags: Integration Model, MRP Procedure, MRP Type, SAP ECC, SAP SCM

Planning Methods in SOP

Sales & Operations Planning (SOP) offers two different planning methods:

· Consistent Planning

· Level-by-Level Planning

A planning method must be set for any information structure you wish to plan. The planning
method of an information structure is defined in Customizing for Sales & Operations Planning
(in Set parameters for info structures and key figures).

Consider your choice of planning method carefully because there are significant differences
between them.
Basics of Sales & Operations Planning (SOP)

Basics of Sales & Operations Planning (SOP)

The Sales & Operations Planning (SOP) application is based on information structures. An
information structure is a statistics file containing operational data. This can be either planning
data you anticipate will happen or actual data that happened. An information structure contains
three kinds of information: characteristics, key figures, and a time base. Information structures
are used for data evaluation, projection, and analysis in all the logistics information systems.

You can access the SOP function using either the Standard SPO menu or the Flexible Planning
menu.

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Tags: Planning Method, SOP

What is Sales & Operations Planning (SOP)?

Sales & Operations Planning (SOP) is a flexible forecasting and planning tool with which
sales, production, and other supply chain targets can be set on the basis of historical, existing,
and estimated future data. Rough-cut planning can also be carried out to determine the amounts
of the capacities and other resources required to meet these targets.

SOP is used to streamline and consolidate your company’s sales and production operations. SOP
is particularly suitable for long- and medium-term planning.

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Tags: SOP

Table of Planning Strategy Assignments in SAP PP

In the SAP system, the planning strategies are recorded in Customizing by a combination of
requirements types from Demand Management and from sales order management. This
combination of requirements types determines, for example, the consumption of planned
independent requirements by customer requirements, or how the availability check is to be
carried out.

The planning strategies are maintained in Customizing for Demand Management (under Planned
Independent Requirements > Planning Strategy > Define strategy).

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Tags: Planning Strategies, Production Planning, SAP PP


Planning with Final Assembly Strategy

Planning with Final Assembly strategy is probably the most widely used make-to-stock
strategy. It makes sense to use this planning strategy if you can forecast production quantities
for the final product.

The required quantities and dates of the planned independent requirements are contained in the
demand program. The demand program is one of the main inputs to the material planning
process.

For the planning with final assembly strategy, we enter the planned independent requirements
(forecasts) at the finished product level. Sales orders for the finished products are entered in the
SAP SD module. Up until the finished product, the production / purchasing process is initiated
after running MRP. Sales orders are filled from stock.

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Tags: Make to Stock, Planning Strategies, Production Planning

Strategies for Make-to-Stock Production Process Flow

You can automate the planning stage by passing the results of the forecast, flexible planning, or
SOP directly to Demand Management.

In a make-to-stock environment, smoothing of production can be an important feature. This


means irregular requirements flow resulting from different customer requirements quantities can
be smoothed and simply produced to stock.

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Tags: Make to Stock, Planning Strategies

Planning Strategies for Make-to-Stock Production

A make-to-stock planning strategy means we build stock in anticipation of customer demand.


We ship the customer order from our stock of finished goods. SAP has several planning
strategies that support make-to-stock planning.

The planning strategies are sometimes referenced by their two-character identifier. Thus,
planning with final assembly is also called strategy 40.

These planning strategies are designed for planning procurement (production or purchasing) of
components by planning the final products.
Planning Strategies in Production Planning and Control (SAP PP)

Planning strategies are used to define the planning steps that the SAP system is to perform and
the sequence in which it is to perform them. Each planning strategy comprises one or more
methods that represent the individual planning steps.

A requirement is a quantity of material that is needed on a certain date in a plant. Planning


strategies represent the business procedures for the planning of production quantities and dates.

Independent requirements are unrelated to the demand for other materials. Planned
independent requirements and sales orders are independent requirements.

Read more

Tags: Independent Requirements, Planning Strategies

PP Costing

A work center is assigned to only one cost center. By the way, several work centers can be
assigned to the same cost center.

The activity types used in a work center must be defined in the cost center to which the work
center is assigned. The price (cost) assigned to the activity type is defined in the cost center.

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Tags: Activity Type, PP Costing, Work Center

Production Resources Tools

PRTs (Production Resources Tools) are tools that do not belong to a specific location and that
are necessary in production. A measuring device or a fixture is an example of a production
resource / tool. A PRT gets used by the process, and may be consumed (i.e., “worn out” as in a
tool bit), but does not become part of the product being manufactured.

A PRT is required to perform the operation to which it is assigned. Different categories of


master records can be used for managing PRTs.

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Tags: Production Resources Tools


Work Center Relationship to Operation

Default data in an operation comes from the work center record. When you create an operation in
a routing, you enter the work center where the operation is performed. Data in the work center
affects the operation as follows:

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Tags: Work Center

Routings in Production Planning and Control

Routings: Overview

A routing contains the operations to be performed, their sequence and the various work centers
involved to manufacture an item.

Routing describes a production process. Routings in production planning specify the sequence of
the operations. Routings also contain other production information such as where the work will
be performed, the time required to carry out the work, materials and equipment required etc.

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Tags: Production Planning, Routing

Work Center in Production Planning and Control

Work Center Definition: A work center is where an operation or activity is carried out within a
plant. Work centers are used in routings, networks, inspection plans and maintenance routings.
They can also be used as capacity collectors for statistical evaluations.

A work center can represent anything as general as a geographic location, or as specific as a


particular machine within a department in a plant. A work center must be assigned to a plant

BOMs in Production Planning

The result of the design phase is an engineering drawing and a list of the parts required to
produce the product. The product and its component list is the bill of materials (BOMs).

The data stored in a bill of material in SAP system serves as a basis for activities such as:

Ÿ • MRP
Ÿ • Work scheduling
Ÿ • Procurement
Ÿ • Product costing
The difference between Single-Level Bill of Material Multi-Level Bill of Material Structure

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Tags: BOMs, Production Planning

Material Master Data in Production Planning and Control

The information is stored in the material master record in SAP system in one of two forms:

• Data that is descriptive, such as name, size and dimension


• Data that controls system functions, such as MRP type

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Tags: Material Master, Material Type, MRP Type

The Major Master Data Objects in SAP PP

Manufacturing Master Data

Master data is a term for main reference files of information such as the material master file or
the routing file. Master data records remain in the database for an extended period of time.
Master data is shared across application modules in SAP system. and also Master data that is
obsolete can be archived.

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Tags: Master Data, SAP PP

Manufacturing Planning and Execution

Manufacturing planning process

Ÿ • The forecast values and requirements from the sales information system and
costing/profitability analysis are inputs to the Sales and Operations Planning (SOP) phase in
which independent requirements are determined.

Ÿ • Master Schedule items (those items that greatly influence profits or consume critical
resources ) are planned. Planning the master schedule items separately leads to a reduction in
stock levels and improved delivery performance.

Ÿ • Materials requirements planning (MRP) is the final step in the planning process. The output
of MRP is either a planned production order, a purchase requisition, or a planned purchase order.
Read more

Tags: DM, MPS, MRP, SOP

Difference Between MRP vs MPS

The difference between MRP & MPS execution, MPS – MRP Comparison what is the result of
MPS run rather than running MRP? and what is MPS and MRP process?

In production planning, decisions are made that influence production plans. Demand
management, for example, stores the independent requirements used by master production
scheduling (MPS) and Material Requirements Planning (MRP).

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Tags: MPS, MRP, Production Planning

Material Requirements Planning (SAP MRP)

Material requirements planning (MRP) represents the first step in Production Planning and
Detailed Scheduling. Generally, this step is executed in the short-tem horizon in the plant.

In material requirements planning (SAP MRP: Material Requirements Planning), the


procurement dates for the required assemblies and components are determined based on the
requirement dates for the finished product (for example, a sales order).

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