Production Planning:

Aligning forecast with manufacturing capability to create procurement and production schedules.

It is used to plan Production, external procurement, stock transfer.

Requirements are fulfilled by the creation of
Planned orders – In house
Purchase requisitions – External procurement
Scheduling agreement, lines – Stock transfer

Flow:

1. Demand generated for the product in demand management. It calculates the quantities to
produce and time for final assembly.
2. The data from DM transferred to MRP. MRP checks the availability of material at various stages
of BOM. If material is not available, MRP generates planned order or purchase requisitions for
in-house production / procurement form vendor.
3. Production in charge will convert the planned order to production order and carries out the
production activities once the order is released for production.
4. Production carried out as per the operations steps provided in the routing. WorkCentre also
mentioned with each operations in the routing.
5. Once production completed, production confirmation is done and goods movement takes place.

MRP: To determine the Material required, the quantity required and when it is required.

Master data:

Material Master – It contains basic data and functional data of different departments in organisation
with tabs.

BOM – It contains the list of materials required to manufacture a product. BOMs are used in MRP,
production, procurement and product costing.

Work center – Where the production ultimately takes place. Any machine, where work is converted into
product.

Routing – It contains work steps required to carry out production. Sequence of operations.

PRT – All auxiliary tools used to carry out production like jigs, fixtures, inspection tools etc.,

Capacity Planning:

 To check whether the available WorkCentre capacity is sufficient to allow the production to
takes place
 Operations are scheduled at the relevant WorkCentre
  The available working time is called as capacity.

SAP PP integration with other modules:

MM:
Goods movement, auto goods receipt
Reservation for production order
Raising PR with MRP run
SD:
Availability check
Perform MRP run, requirement types
Bill of material components and operation
FICO:
Updating price in material master data
Defining activity type in the cost center
Assigning activity type to work center
Production cost controlling
QM:
Inspection type 03 for discrete and repetitive manufacturing