SAP PP (production planning and production control) is a cross-module tool that is used primarily in the manufacturing and consumer goods industry.
The SAP PP module uses data from SAP SD (Sales and Distribution), SAP MM (Materials Management), SAP QM (Quality Management), SAP FICO (Finance and Controlling) and SAP PM (Plant Maintenance). Due to the interlinking processes, SAP PP can be used to effectively map very complex production processes and do so very efficiently.
In SAP PP, all production master data is stored at plant level. This includes materials, bills of materials, workstations, and work plans. All planning activities are also carried out at plant level.
The most important functional areas in SAP PP (Production Planning and Control) are:
- Sales and Operations Planning
- Production Planning and Control
- Capacity Planning
- Material Requirements Planning
- Production Orders
Sales and Operations Planning
From the forecast sales, a sales-oriented distribution plan is created. Based on this distribution plan, the manufacturing-oriented production plan is derived to enable planning of the actual production quantities required.
Material Requirements Planning
The data from sales and operations planning forms the input for material requirements planning. The key task of material requirements planning is to ensure the availability of materials, that is, to procure the internal and external requirement quantities on time. For this purpose, the available stocks are continuously monitored and if the levels go below a minimum stock level, procurement proposals are created automatically for purchasing and manufacturing.
Then capacity planning takes place which distributes the capacity equally to the workstations. This prevents capacity overload and capacity bottlenecks.
A production order specifies which material must be produced in which quantity. The production order also contains the bill of material components and the work plans stored for the material. When the order is released, the roughly scheduled orders are planned in more detail. Direct entry of feedback from production means that SAP PP can ensure accurate and consistent order monitoring.