Production Planning consists of all master data, system configuration, and transactions to complete the Plan to Produce process. It includes the following information and processes:
- Material Master, Bill of Material, Routing and Work Center data
- Sales and Production Plans
- Long Term Planning
- Demand Management
- Material Requirements Planning (MRP)
- Capacity Planning
- Production Orders
Diagram of the typical Plan to Produce business process associated with the SAP PP module:
SAP Production Planning (SAP PP) is compromised of the following modules:
- Master Data – includes the material master, work centers, routings and bill of materials.
- SOP – Sales and Operations Planning (SOP) provides the ability to forecast sales and production plans based on historical, current and future data.
- DRP – Distribution Resource Planning allows companies the ability to plan the demand for distribution centers.
- Production Planning – includes material forecasting, demand management, long term planning and master production scheduling (MPS).
- MRP – Material Requirements Planning relies on demand and supply elements with the calculation parameters to calculate the net requirements from the planning run.
- Shop Floor Control – includes the processing of production orders, goods movements, confirmations and reporting tools for production.
- Capacity Planning – evaluates the capacity utilized based on the work centers available capacity to show capacity constraints.
- Repetitive Manufacturing – in repetitive manufacturing, the manufacturing process is usually simple in that the same products are produced over a long period of time. This module provides the transactions and business process for companies to run repetitive manufacturing in SAP.
- KANBAN – is a process of replenishment based on a pull system using KANBAN cards to generate the replenishment cycle.
- Product Cost Planning – is the process of evaluating all the time values and value of component materials to determine the product cost.