The SAP PP-PI (Production Planning for Process Industries) component is used primarily in the chemical and pharmaceutical industries and in the plastics, nutrition, and drink and tobacco sectors.
SAP PP-PI is integrated horizontally in adjacent SAP components such as SAP SD (Sales and Distribution) and SAP QM (Quality Management), and also vertically in the manufacturing level.
SAP PP-PI thus brings together all levels, from planning right through to completion of the manufacturing process at shop floor level and it creates transparency along the entire supply chain. The horizontal and vertical integration means that the company can react quickly to exceptional situations and thus secure valuable competitive advantages.
SAP PP-PI differentiates itself from SAP PP with regard to its application area. SAP PP is primarily used in discrete manufacturing, whereas SAP PP-PI is used exclusively in the process industry. Also, SAP PP-PI and SAP PP differ with regard to the order processing and master data structures. Here there are both terminological and functional differences.
The most important functional areas in SAP PP-PI (Production Planning for Process Industries) are:
- Sales and Operations Planning
- Production Planning and Control
- Capacity Planning
- Material Requirements Planning
- Process Order Management
- Batch Management
Batch management with SAP PP-PI
Since the process industry generally works with a focus on batches, batch management is one of the most important functions of SAP PP-PI. A batch number is allocated in SAP PP-PI at the latest when the receipt postings are made for the individual components in the warehouse. The batch is maintained in the system along the entire logistics chain, starting with goods receipt, through consumption of the components, right up to delivery of the finished products.