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
  • KANBAN

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.

SAP Production Planning (SAP PP)