SAP Production Planning

Course Information

Introduction and Core Principles

ERP Fundamentals
• Basic SAP introduction.
• Highlight how SAP is a tool used to map physical processes into the system, this is doubly important for production planning as the work cycles between physical operation and system data entry.

Introduction to the production planning module.
• Overview of the Production Planning flow from
Sales and Operational planning, Requirement
planning, Procurement, Execution, and sale.
• How production planning aligns demand with
capacity planning, operational execution and procurement.
• Core processes of production planning (MPS/MRP,
Capacity planning, production order creation, order execution).
• Types of Manufacturing (discrete, repetitive, process).
• What are Batches? Why are they used?
• Planning Strategies (Make to stock, Make to order,
Planning without nal assembly).
• MRP basics. (Easy to understand explanation of the
why MRP is run. To be covered in z detail in later section).

Material Requirement Planning MRP

Bill of material (basic explanation)z.
• Basic explanation of the Bill of material for better understanding of MRP processes. Covered in more depth in later section.

Material requirements planning core principles
• BOM explosion against independent requirements, that cascades down to the lowest level and populates dependent requirements and triggers replenishment proposals.

MRP process logic.
• System logic used to execute MRP.
• MRP parameters available.
• Lead time, safety stock and MRP elements that impact requirement quantity and dates.
• Independent and dependent requirements.

MRP execution
• Single item, single item multilevel and multi-item multilevel
• MRP Parameters.

Replenishment proposals
• Planned orders
• Automatic PR generation

PP master data

Initial review of types of master data involved:
• Material master data. General overview and material master view
• Bill of Material
• Routing/Recipe
• Work center (including capacities and cost center)
• PP organizational structure (Company code, Plant, Storage location)
• Demand planning in Make to Order and Make to Stock scenarios. Planned independent
requirements generated from demand planning. Versions of planned independent requirements (active and planning) Usage of different versions for MRP and MPS.

Capacity Planning

Capacities (touched upon earlier in the work center but
explained in detail here. Including shared capacities)
• Why use capacity planning? (MRP plan using unlimited
capacities, but that is not realistically feasible.)
• Capacity planning allows us to view bottlenecks and
plan around them.

Capacity leveling
• How capacity leveling is used to distribute against
available capacities.
• Capacity checks at production order

Production Order

Production/Process order creation – Manual process
• Order creation
• Production order scheduling
• Components and Operations in order
• Master data and master data refresh in order
• Order release

Planned order to production order conversion. Briefly touch upon Capacities and availability checks again.

Production Execution

Shop floors and issuance to shop floor.
• Shop floors, storage locations and their use in production execution.
• Reservations and moving stock to shop floor.

• Production yield reporting
• Material issuance against order
• Recording activity values against orders.
• Back flushing and impact on confirmation and GR.

Goods receiving
• Automatically through backflush at confirmation or manually.
• Post GR quality inspection process (brief overview of the process
from GR to unrestricted use stock).

Reporting and monitoring

Production order reporting (Through standard reports like COOIS, MB51) Tracking of open MRP elements (Current stock, reservations, open PR/POs through standard reports.) Batch where used lists and traceability in process manufacturing. Master data release status (BOM, Routing, PV) and impact on production order creation.

Additional Production Planning Scenarios

By and Co products
• What are Co/By products? What is the difference between them?
• How Co/By products are maintained in the system.
• Impact on production processes when implementing Co/By production. (At order level, confirmation and GR).

Multiple/alternate BOMs
• Covering what we mean by alternate BOMs and cases where alternative BOMs are created.
• How are alternate BOMs treated in MRP and at the production order level.
• Briefly touch on BOM usage and engineering/costing BOMs.

Production versions
• Explaining that production versions are combinations of BOM and Routing for a material that specifes a particular method of production.
• Production version settings in the material master and impact on MRP.

MRP and Work scheduling views
• Detail on some of the key fields in the material master and their impact on MRP and production orders Special procurement keys
• Transfer from different plant

Integration points

FI: BOM and Routing with cost estimate. Order settlement. Product costing.

MM: Inventory and b  atch management. Reservations, purchase requisitions, purchase orders and MRP. (briefly touch upon source lists)

QM: In process inspections. GR inspections. Usage decisions.

PM: Integration with PM for counter-based planning. Integration with plant maintenance to schedule downtime.

SD: Make to order production. Sales order
batches. Availability checks in MTO.

Configurations (if needed)

The configurations involved in PP module can also be covered to different degrees of depth (Example, Order type, Number ranges, Material master MRP and work scheduling parameters. )

These can be added to the scope.

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