Introduction to SAP PP
In any company when we talk about manufacturing we have align and manage several. The nature and the constraints of these resources are some times determined by some strategic decisions and daily running of manufacturing rests with Production Planning and Control (PP&C) The purpose of PP&C is to ensure that manufacturing runs effectively and efficiently and to align the production processes with the timings promised to customers.
The PP module is divided into two Sub-modules:
- Production Genera
But this higly complex module integrates with many SAP components like:
- Master Data – includes the material master, work centers, routings and bill of materials.
- SOP – Sales and Operations Planning (SOP) provides tools for forecasting sales and production planning based on historical, current and future data.
- DRP – Distribution Resource Planning allows 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.
The Production Planning (PP) module of takes care of Master data needed like Bill Of Materials, Routings and Work Centers and stores it in one separate component.
Production Planning (PP) module can also plan Capacity. The capacity Planning sub-module takes into account various capacities like pooled capacity etc.
Production Orders reporting has flexibility of confirming orders with or without backflush. The material can be staged to production site from the Warehouse after releasing the order. Costing can be triggered automatically by integrating the module with the Cost Accounting Module.
Integration with other modules like Material management, Financial Accounting, Cost Accounting, Human Resources & Development, Sales and Distribution etc adds on to reliability of the production planning system in SAP R/3. The system is a real time system. The changes in demand (cancelled or added sales order etc) and supply (high/low rejection, early/late supply from supplier, breakdown of facilities etc) are reflected in real time and the production controller can react fast to these changes.
SAP’s Production Planning (PP) module is one of the most effective and most requested tools in the market.