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.

This is brief review of the components and processes associated with the SAP PP module. For a more indepth understanding of the Production Planning module, please review our available SAP Production
Planning training.