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 

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.

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