ERP Production Planning
Material Master -
Work Centers or Resources -
Bill of Material -
Routings or Master Recipes -
Overall Flow in SAP PP
The Flow in Production Planning and Control and consists of Planning and Execution.
Production planning is usually done from budget sales plan. The Production plan is then divided into Quarterly plan, monthly plan.... etc.
These Planned orders are converted to Production/ Process orders, Using the master data Routings/ Master recipes. These orders are scheculed as per the production timings and released by the Production Supervisor. For all the materials used in production order a reservation is raised to stores department and as per the request the materials are issued to production personnel. Production is carried outbasing on the steps maintained in the Routing/ Recipes where the master data Resource/ Work Center is mentioned against each operation in the Recipe/ Routing. Once the production is completed the Confirmations and material consumptions are posted against the Order and the Goods Receipt is taken.
The above is the very crisp overview of SAP PP.
Planning Process - Overview
Sales & Operations Planning (SOP) is a flexible forecasting and planning tool with which sales, production, and other supply chain targets can be set on the basis of historical, existing, and estimated future data. Rough-cut planning can also be carried out to determine the amounts of the capacities and other resources required to meet these targets. Use SOP to streamline and consolidate your company's sales and production operations. SOP is particularly suitable for long- and medium-term planning.
Demand Management determines the requirement dates and requirement quantities for important assemblies and specifies the strategies for planning and producing/procuring finished products. The result of Demand Management is the demand program. The demand program differentiates planned independent requirements and customer independent requirements. It gives the information needed in MPS and MRP for planning at SKU level. The placing of sales orders eventually consumes planned requirements and triggers updating to the Sales Information System.
You can transfer data both to and from Profitability Analysis (CO-PA). For example, you might use the sales and profitability plans you receive from Sales & Profit Planning (CO-PA-SPP) as the basis for creating sales and production plans in Flexible Planning. Having finalized these plans, you might pass the results back to CO-PA-SPP, which works out the cost of producing the planned number of units. You trigger the transfer of data from Flexible Planning to CO-PA in Flexible Planning. This is done with mass processing. You trigger the transfer of data from CO-PA to Flexible Planning in CO-PA. This is done either online or in the background.
The main function of material requirements planning is to guarantee material availability, that is, it is used to procure or produce the requirement quantities on time both for internal purposes and for sales and distribution. This process involves the monitoring of stocks and, in particular, the automatic creation of procurement proposals for purchasing and production. In doing so, MRP tries to strike the best balance possible between "optimizing the service level and minimizing costs and capital lockup."
The MRP component (PP-MRP) assists and relieves MRP controllers in their area of responsibility. The MRP controller is responsible for all activities related to specifying the type, quantity, and time of the requirements, in addition to calculating when and for what quantity an order proposal has to be created to cover these requirements. The MRP controller needs all the information on stocks, stock reservations, and stocks on order to calculate quantities, and also needs information on lead times and procurement times to calculate dates. The MRP controller defines a suitable MRP and lot-sizing procedure for each material to determine procurement proposals.
Following process flow diagrams gives a crisp idea on planning process -
Page: Capacity planning Page: Default Storage location in Planned order during MRP Page: Discrete Manufacturing Vs Repetitive Manufacturing Page: Inconsistencies for planning elements and display problems on transaction MD04 Page: PIR consumption with Stock Transport Documents Page: Planning Process Page: PP General Procedure and Tcodes Page: PP-Interview Questions Page: PP-MD Page: PP reports Page: PP-TABLES Page: Process Order Management Page: Production Order Type Selection Page: Scrap Calculation Page: Test Page Page: Transaction Flow, Procedure to execute transaction