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SAP PP - SAP Production Planning is one of the components of the SAP ERP Central Component (ECC) that is used to help businesses and organizations to organize and outline the manufacturing, sales, and distribution of goods and services in the business.
The Activities of SAP PP involves the planning of the raw material requirements for production, routings, bill of material(BOM), and capacity planning. Everything in the SAP PP module rotates around the master data which is saved and manipulated in the centralized master tables of data. Master data types include work center, materials master, BOM, and routing. The master data in SAP PP is used to generate and produce transactional data in the SAP software module, such as generating an order of production in SAP PP, a sales order in SAP SD, or order of purchase in SAP MM.
Production Planning in SAP is generally done from the budgeted sales plan. Planning is carried out based on the Sales plan to meet up with the sales requirements as per the production cycle times. The demand for the Product by the customer is entered through demand management in the form of an organized, Planned and Independent Requirement (PIR). This data from the demand management would be used as the input to the Material requirement planning (MRP). MRP in SAP PP checks for the availability of numerous raw materials that are used for the production at different stages and levels by using the master data such as the Bill of material (BOM) and other available current stocks in the production firm.
SAP PP can be modified and configured to reach up to and satisfy various industry requirements and it comes with a number of software modules that promote specific types of manufacturing industries, which include:
1. Discrete manufacturing,
2. Process manufacturing, and
3. Repetitive manufacturing.
In Discrete Manufacturing, the number of goods that are produced change by lot, and the costs are calculated by lots and orders.
In Repetitive Manufacturing, the products remain constant over a long period of time and the production of goods happens in total quantities, not individual lots.
In Process Manufacturing, products are produced in batch-sized lots by making use of a process that is defined in a master recipe which can be customized for several individual batches. Process manufacturing is mostly applied essentially in industries that work with pharmaceutical, chemical, food, and beverage.
In order to produce good production plans, the production planner or the department in charge of production needs to work closely together with the department in charge of marketing and sales. Therefore, the selected choice must better and optimize the customer-independent performance measures such as the time of the cycle and the customer-dependent performance measures such as on-time delivery
SAP is aimed at handling and managing data, to provide customers with the capability to work and interact with a single and unified software system and it is guaranteed by its wide and comprehensive modules. SAP implementation needs experience and satisfactory and adequate knowledge, as it is sometimes complicated and challenging to handle. That’s is one of the reason, why SAP is a highly demanded-for technological certification that comes with a lot of career opportunities for its certified students.
The features and characteristics of SAP PP are:
1. Convert Planned Order to Production Order: The first step in the SAP PP module is to convert a planned order of goods to a production order. When you create a production order, the type of order is defined in the SAP PP system.
2. Issue the Production Order: To start the process of production, it is very important to assign an order of production. Till a production order is issued, the execution of the process of production cannot start.
3. Issue Goods for Production Order: To carry out the production order, the goods need to be issued. Once the goods are issued, the number of the document can then be updated in the system.
4. Production Order Confirmation: All the sub-processes are carried out in accordance with the required operations to establish the number of the products as per the production order.
5. Storage: Once the execution of the production order is finished, the goods that are produced with the production order are received and placed in the storage area.
There are many benefits of SAP PP, and some of them are:
1. The main benefit of SAP PP is that it is used to control the entire process of production.
2. SAP PP has the option of using various planning tools.
3. SAP PP lets you plan and forecast demand and production.
4. SAP PP allows you to use it together with other software modules.
5. SAP PP will help you in planing all the manufacturing, procurement of materials and goods, and in the sales, requirement planning effectively and consistently with proper lead time and up to data delivery schedules.
6. It will also let you track the consumption of various resources accurately.
7. Job opportunities and career advancement.
SAP PP - Introduction
SAP PP - Bill of Material (BOM)
SAP PP - Work Center
SAP PP - How to Create/Change/Display Routing
SAP PP - How to Create Production version
SAP PP - Demand Management
SAP PP - Material Requirement Planning(MRP) Process
SAP PP - Long Term Planning (LTP)
SAP PP - Capacity Requirement Planning
SAP PP - Goods Movement against Production Order
SAP PP - Production Order
SAP PP - Reports
SAP PP - Video Lectures
SAP PP - Exams and Certification
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