SAP Presentation

Production planning module
Production Planning
• Process of aligning demand with manufacturing capacity to create
production and procurement schedules for finished products and
component materials.
• Tracks and makes a record of the manufacturing process flows like
planned and actual costs
Production Planning Module
• To plan and control the manufacturing activities
• Key elements
• Bill of Material (BOM)
• Routings
• Work Centers
• Sales and Operations planning (SOP)
• Master Production Scheduling (MPS) – Capacity Planning
• Materials Requirement Planning (MRP)
• Shop Floor Control (SFC)
• Production orders
• Product costing, activity-based costing
• Work in process
• Kanban
• Production planning for process industries (PP-PI)
• Repetitive Manufacturing
SAP-Production Planning
Organization Structure
• As all production master data is created at plant level
• All planning activities too are also performed at plant level
• All the production confirmation process and related goods movements
also occur at plant and storage location level
Master Data
• Master data is generally static for any company and is very rarely
changed depending on the requirement.
• There are 5 master data to be maintained in Production Planning
module
1. Material Master
2. Bill of Materials
3. Work Center
4. Routing
5. Production version
Material Master
• Data on Produce, Procurement, Storage and Sale
• It is used for the following purposes:
1. To purchase materials
2. For goods movement postings such as goods issue or receipt in
inventory management & also for physical inventory postings
3. In invoice verification for posting invoices
4. In sales and distribution for sales order fulfilment process
5. In production planning and control for material requirements planning,
scheduling, and production confirmation processes too.
Bill of Materials
• A complete, formally structured list of the components, together with
the quantity required to produce the product or assembly
• Material requirement planning and product costing
• 99 alternative BOMs can be created
• For products having variants, you can create Super BOM.
• For example, Product Cycle can contain all types of sunglasses
frames.
Work Center
• A machine or group of machines where production operations are
performed.
• Scheduling, Capacity, Costing
Routing
• A sequence of operation performed at the Work Center.
• Specifies the machine time, labour time, etc.
Production Version
• BOM + Routing data.
• Determines the manufacturing process.
• Multiple production versions as per different
manufacturing process to produce the product.
Production Planning Cycle
Planning Execution
Demand Management
• To estimate requirement quantities and delivery dates for finished
products and important assemblies.
• PIR (planned independent requirements) and customer requirements
for is used for its working.
MRP
• Determines any shortages and creates the appropriate procurement
elements in the system.
• Lead time scheduling and calculate production dates in planned
orders.
Capacity Planning and Levelling
• Used to analyse the capacity overloads at work center and shift the
orders to avoid any capacity bottlenecks.
• Capacity requirements are generated via MRP on Work Center and
since MRP works with infinite capacity and plans everything on work
center without considering any capacity constraints.
• Capacity can be levelled at each work center through planning table in
order to create constraint production plan.
Production Order
• Output of MRP will be called as "Planned Orders“.
• Specifies what material needs to be produced and in what quantity.
• Contains the BOM components and routing operation data to be
performed at the work center.
• Released for execution, and material availability checks can be carried
out which determines if there are any missing components.
Production Order Confirmation
Production Order Close
‘TECO status”
Component View: Database Tables

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Production planning module

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