What is SAP Production Planning

SAP PP is mainly divided into planning and execution.

Planning contains materials planning and capacity planning.

Materials planning can be done for different lengths : long term planning, material requirements planning etc.

Execution contains creation of production order, scheduling, work flow (such as release printing), confirmations, goods movements, technical completion. 

Most of the above mentioned sub processes need master data to be maintained. And when you carry out, they generate transactional data like planned orders, production orders, accounting documents etc.

Also, there are sub modules for different types of industries like discrete production, process production (like chemicals), repetitive production, kanban, all these normally follow the above mentioned sub processes.

Now we will go thru the nuts and bolts of Production Execution. 
 

There are three types of production process in SAP.

1. Discrete Manufacturing

2. Repetitive Manufacturing

3. Production – Process Industries.

First let us understand what is happening in the system prior to the production execution process.

a. Planning quantities are derived and maintained in the system.

b. Material Requirement Planning run will generate the planned order for the net required quantity with the start date of the production process.

c. Master data (BOM and Routing details) will be copied in to the planned order automatically during MRP run.

Ok, I believe you got an idea about the steps involved prior to the production execution process.  Next, let’s discuss about the production execution process now.
 

Production Execution process contains five important steps.

They are :

1. Converting planned order to production order

2. Releasing the production order

3. Goods Issue for production order

4. Confirmation of production order

5. Goods Receipt against production order

1. Converting Planned Order to Production Order:-

Planned order has to be converted to production order to account the entire production.

Production order or process order type has to be mentioned when converting the planned order. Entire master data will be copied to the respective order when converting the planned order.

Order type is the most important configuration setting for production execution.

2. Releasing the production order:-

Release of production order is an important step in production order. Releasing of production order indicates the commencement of production. Unless the order is released, further processing of order is not possible.

While releasing the production order system can perform :

a. Material availability

b. Capacity availability

c. Creation of Batch

d. Reservation creation

3. Goods Issue for production order:-

Goods issue covers issuing required components to make the finished product to a production order. While making the goods issue, the document number can be updated in the production order.

Goods issue can be made in parallel during confirmation of operation. 

4. Confirmation of production order:-

Reporting of usage of components and activities are termed as confirmation.

Confirmation to the each operation will be executed according to the control key attached with each operation.

5. Goods Receipt against production order:-

Once the production is completed, finished products will be received from the production order into the respective storage area.

This can be achieved through two ways :

1. Through confirmation

2. Through separate transaction.

Document number will be generated for each goods receipt. This document number can be updated in the production or process order.

Now you will easily understand what is backflushing? 

It is the process of issuing components automatically while confirming the production or process order.

Hope the above notes has given you enough idea about the SAP production execution process.

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See also

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