ERP Production Planning

Master Data
Material Master Material Master Records contain information about a material that defaults to an SAP system task when
you enter the material number. The Material Code, for each unique material, is generated by the SAP
system.
Work Centers or Resources Operations are carried out at a work center. Work Center and Resource can be anything you use in the
process of manufacturing. It can be Machine, Person, Production line, machines group etc. A
workcenter or Resource is assigned to a Cost Center.
Bill of Material A Complete formally structured list of components that make up a product. The list contains the
material number of each component, with the quantity, unit of measure and item category. BOMs are
used in their different forms in various situations where a finished product is assembled from several
component parts or materials. You can create the following BOMs in the SAP system:
Material BOMs
Equipment BOMs
Functional location BOMs
Document structures
Order BOM
Work breakdown structure (WBS) BOM
Routings or Master Recipes Routings enable you to plan the production of materials (products). Therefore, routings are used as a
template for production orders and run schedules as well as as a basis for product costing. Master
recipes are mainly used for planning the manufacture of products. Master recipes are used as a
reference for process orders as well as the basis for product costing.
Overall Flow in SAP PP
The Flow in Production Planning and Control and consists of Planning and Execution.
Planning Production planning is usually done from budget sales plan. The Production plan is then divided into
Quarterly plan, monthly plan.... etc.
Everything is based on the Sales plan to meet the sales requirements as per the production time cycles.
Demand for the Product is produced through demand mangement, this data from demand management
is transferred to MRP or it becomes input to MRP.
MRP checks for the availability of various raw materials used for prodcution at different stages using
the master data Bill of material and available stocks. Purchase requistions are created for materials
which are externally procured and with deficit stock, planned orders are created for inhouse produced
materials. These purchase requisitions initiate the Procurement Cycle and the Planned orders the
Execution Cycle of Production.
Execution 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.
http://help.sap.com/saphelp_46c/helpdata/en/a5/632f3b43a211d189410000e829fbbd/frameset.htm
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.
http://help.sap.com/saphelp_46c/helpdata/en/a5/632f3b43a211d189410000e829fbbd/frameset.htm
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.
http://help.sap.com/saphelp_46c/helpdata/en/a5/632f3b43a211d189410000e829fbbd/frameset.htm
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.
http://help.sap.com/saphelp_46c/helpdata/en/f4/7d3f9344af11d182b40000e829fbfe/frameset.htm
Following process flow diagrams gives a crisp idea on planning process -

PP reports
BOM
CS11 - BOM Level by Level
CS12 - Multilevel BOM
CS15 - Material
CS14 - BOM Comparison
CS80 - Material BOM
Work Centers
CR60 - Work Center Information System
CA80 - Use of Work Center in Task Lists
CR05 - Work Center List
CR07 - Work Center Capacities
CR06 - Work Center Assignment to Cost Center
CR10 - Work Center Change Documents
Routings
CA51 - Print Rtg/Ref.Op.Set, Fields Fixed
CA60 - Changes in Routings/Ref. Op. Sets
CA61 - Change Documents for Routing
CA62 - Documents for Ref. Op. Sets
CA63 - Change Documents for Rate Routings
Demand Management
MD63 - Display Planned Indep. Requirements
MD73 - Display Total Indep. Requirements
MD85 - List of Independent Requirements
Material Requirements Planning
MD04 - Display Stock/Requirements Situation
MD05 - Individual Display of MRP List
MD06 - Collective Display of MRP List
MD4C - Multilevel Order Report
MDLD - Print MRP List
Capacity Requirements Planning
CM01 - Cap. planning, work center load
CM02 - Capacity Planning, Work Center Orders
CM50 - Capacity level.: SFC work cntr list
Production Control
COOIS - Order Information System
CO24 - Missing Parts Info System

MD09 - Pegged Requirements

MMBE - Stock Overview
CO09 - Availability Overview
CO46 - Order Progress Report
MD4C - Order Report
KKBC_ORD - For Orders
MCP1 - SFIS: Operation Analysis Selection
MCP3 - SFIS: Material Analysis Selection
MCPB - Operation Analysis: Dates
MCPD - Production Order Analysis: Dates
MCPF - Material Analysis: Dates
MCPQ - Work Center Analysis: Quantities