An important module of SAP, Production Planning (PP) tracks and records the manufacturing process flows including planned and actual costs. Production planning also includes the coverage of goods movements from raw material accumulation to semi-finished products stage. Basically, production planning is the process of syncing the demand for a product with the manufacturing capacity to create production and procurement schedules.
There are several stages in the production planning lifecycle. They include:
Generally static for a company, Master Data can be changed depending on requirements.
In SAP PP, the organization structure denotes the specific locations of manufacturing plants and storage locations within these production plants. On top of the organization structure, company details and company codes are placed; each company code holds the specifics of different plant and storage locations.
Bill of Materials or BOM is a type of master data which is related to material management planning and provides the list of components that are required to produce a product. To produce products with different variants, a super BOM can be created that contains lists of all variants. The characteristics of BOM are as follows:
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Sales Order BOM
Work Centers basically pertain to routing, i.e., master data related to scheduling, capacity planning, and production costing. All manufacturing activities are performed at Work Centers.
Routing is basically a set of operations that pertain to the production process of a product. It also defines the sequence of activities that are performed at a Work Center. Routing helps in calculating production cost, machine time, and labor time. Key characteristics of routing are as follows:
Routing is used for scheduling and calculating the cost of operations for finished and unfinished products.
Material Requirement Planning or MRP run is basically an engine that is used to take care of the demand and supply gap in production. Issues and receipts generated are referred to as MRP elements.
Issues include PIRs, dependent requirements, order reservations, sales orders, etc. Receipts include production orders, purchase requisitions, and purchase orders, among others.
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This can be done by changing the configuration in OPL8. Change the order type dependent parameters of routing as optional. Also, when orders are created using C001, there may be a request for a sales order. This is how users can create the production order without routing and Work Centers.
A production order is nothing but a parameter that is used to define the material which is to be produced. It can also be used to define plant locations, where production is supposed to happen, date and time of production, and quantity of goods that are required for production. It also defines the sequence of operations and the method which is to be followed to settle order costs. There are two ways to create a production order under PP. They are:
When Work Centers are over loaded and out of balance, capacity planning is done to balance the load at Work Centers and calculate production capacity based on requirements.
On the other hand, capacity levelling is done for performing a detailed production planning. This is done using the planning table. Using capacity levelling, detailed planning of future capacity requirements can be computed. For capacity levelling, the T-code CM21 can be used.
When this happens, planned orders are offset by production orders and planned order details can be viewed in the production order.
To perform goods issues under PP, either:
MRP controllers are individuals or a group of individuals who are responsible for checking and reporting material availability.
There are two types of costing parameters that come under PP. They are:
Yes, we can check if a Work Center is overloaded. Users need to check capacity load on Work Centers. And, if any Work Center is overloaded, orders can be moved to different Work Centers. To check capacity loads, either:
And, based on load levels, orders must be moved to other Work Centers.
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