SAP Production Planning Life Cycle

SAP Production Planning Life Cycle

SAP Production Planning (SAP PP) Production Planning consists of all master data, system configuration, and transactions

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SAP Production Planning (SAP PP) 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.


• Understand the key business processes in the SAP production planning module • Learn to configure and setup the master data objects in the SAP production planning module; material masters, bill of material, routing and work center • Describe master planning; sales and operations, demand management and long term planning • Knowledge of capacity planning configuration and capacity evaluation tools. Learn the key differences between discrete and repetitive manufacturing • Describe how the MRP plans requirements for internal and external procurement • Understand the engineering change management master records and master data objects • Understand the production planning integration points with other SAP core modules • Learn the reports and evaluation tools within the production planning module


• Understand key principles in production planning and best practices • Explain in detail the planning strategies of Make to Stock and Make to Order planning • Understand master data maintenance gotchas in engineering change management


• Describe the principles of KANBAN and replenishment strategies