Planning:
Involves materials planning and capacity planning.Execution:
Covers the entire production process, from order creation to goods receipt.Planning in SAP PP
Planning in SAP PP involves determining the materials and resources required for production. It encompasses various levels of planning, including:- Long-Term Planning (LTP): Strategic planning for future production needs based on sales forecasts and demand.
- Material Requirements Planning (MRP): Ensures material availability for production by generating planned orders.
- Capacity Planning: Aligns production schedules with available manufacturing resources.
Execution in SAP PP
Execution involves the actual manufacturing process, starting from order creation to final product delivery. This includes:- Production Order Creation: Converting planned orders into executable production orders.
- Scheduling: Defining timelines and sequences for production.
- Workflow Management: Including tasks like release printing, confirmations, goods movements, and technical completion.
- Planned Orders
- Production Orders
- Accounting Documents
Sub-Modules for Various Industries
SAP PP offers specialized sub-modules tailored for different industries, including:- Discrete Production: Manufacturing unique products with varying specifications.
- Process Production: Ideal for continuous manufacturing processes such as chemicals, pharmaceuticals, etc.
- Repetitive Production: Suitable for high-volume, repetitive manufacturing processes.
- Kanban Production: Focuses on demand-driven manufacturing.
Overview of Production Execution Process in SAP PP
Before diving into production execution, several preparatory steps occur:- Planning Quantities: Quantities are derived and maintained within the system.
- MRP Run: Generates planned orders for the required net quantity with the specified production start date.
- Master Data Integration: BOM and Routing details are copied into the planned order during the MRP run.
Production Execution Process - Key Steps
The production execution process in SAP PP involves five crucial steps:1. Converting Planned Order to Production Order
Planned orders must be converted to production orders to formalize and initiate the production process. This step involves:- Specifying the production or process order type.
- Copying relevant master data (BOM, Routing, etc.) to the production order.
- Configuring the order type, which is critical for smooth execution.
2. Releasing the Production Order
Releasing the production order indicates the official commencement of production. Until released, further processing is not possible. During release, the system performs checks for:- Material Availability
- Capacity Availability
- Batch Creation
- Reservation Creation
3. Goods Issue for Production Order
Goods issue involves issuing the required components for manufacturing the finished product. Key points include:- Updating the document number within the production order.
- Simultaneous goods issue during the operation’s confirmation (if applicable).
4. Confirmation of Production Order
Confirmation reports the usage of components and activities during the manufacturing process. It includes:- Recording labor time and machine usage.
- Validating operational steps through control keys assigned to each operation.
- Automatic component consumption through Backflushing (explained later).
5. Goods Receipt Against Production Order
Upon completion of production, finished goods are moved to the respective storage area. This process can be executed through:- Confirmation: Automatically updating the production order.
- Separate Transaction: Manually creating a goods receipt document.
Understanding Backflushing in SAP PP
Backflushing is an automated process where components are issued from inventory upon confirming a production or process order. This eliminates the need for manual goods issue, streamlining the manufacturing process.Frequently Asked Questions (FAQs)
1. What is SAP PP used for?
SAP PP (Production Planning) is used for planning and managing manufacturing processes. It includes materials planning, capacity planning, production execution, and monitoring of manufacturing activities.2. What are the key sub-modules of SAP PP?
SAP PP includes sub-modules for Discrete Production, Process Production, Repetitive Production, and Kanban Production.3. What is the difference between Planned Order and Production Order in SAP PP?
A Planned Order is a preliminary step indicating a demand that needs to be converted into a Production Order.4. What is Backflushing in SAP PP?
Backflushing is the automatic posting of goods issue upon confirming a production or process order.5. What is Material Requirements Planning (MRP)?
MRP is a process in SAP PP that ensures material availability by generating planned orders based on demand, lead times, and available stock.6. What is the importance of Routing in SAP PP?
Routing defines the sequence of operations required to produce a product. It outlines the work centers, operation times, and control keys needed for production execution.SAP Production Planning (SAP PP) is a robust module that ensures efficient management of manufacturing operations. By understanding the intricacies of planning and execution, businesses can achieve streamlined production processes and improved resource utilization.
