In the SAP ERP system there are different modules to establish all the administrative procedures that are carried out. Each module is known by its acronym in English. The SAP PP is one of these, and its meaning is "Production Planning", which covers all production planning . This is planning that involves materials, work orders, and capacities.
This module occupies an important position within the SAP system because it allows to have an order of the projects. For a company to obtain good results, it is not enough just to win orders from customers. You also need to have a response plan with which you can manage resources. The objective of this module is to obtain effectiveness in the delivery and efficiency in the whole project.
All the activities that are carried out in this module are only of a planning aspect. They are activated when sales receive a notification from the customer accepting a project. A work order is generated and assigned its schedule. For example, what is the planning of the company's capabilities to meet the request. As well as the plan to carry out all the work.
The focal point of the SAP PP module is that there is a good program of activities . This is a way to guarantee the success of the process by adhering to all indications. In addition, it is possible to better manage human resources, material costs and the movement of merchandise. All this is done through transactions or sub modules that make up the system.
The functions performed by the SAP PP module are practical and easy to perform. Since his activity is based on a work plan that allows completing the tasks, he is very analytical. Basically, its functions are described according to the following processes.
In order to start the work, you start by planning the entire project. The way to establish planning varies according to the objectives of the company. Two very common styles are known, those that are completed by smaller batches, and those that are repeated for long periods. In any case, a work route and its important elements are planned in a system.
The production order is generated in the CS module, but it goes hand in hand with planning. From the work order that is generated , the planned and actual costs are monitored . In addition, for the work to start, it is essential that the production order exists. It will record all aspects involving costs.
It is important to note that for SAP PP to work smoothly, it requires master data. These data are what allow to indicate the response times, the useful equipment and the necessary materials .
Therefore, although this information comes from other areas, it must be updated to complete a plan. Some master data is little changed because it may remain the same due to extended project periods. To create a work plan, the codes of the materials from the inventory are used. They usually exist in the minimum quantity required for the entire job. There is a section of the inventory that is going to be needed. If there are fewer of these left, the purchase is activated to replace them
The master data that is generated in PM, in relation to the equipment, is also necessary. It must be ensured that all equipment and tools are active for functions. In addition, to establish capacity planning, the data of active personnel is used. Therefore, all these elements are essential to program a true plan.
It is easy to understand that the SAP PP module does not act autonomously in the system. In order for their activities to complement each other successfully, the intervention of other modules and their transactions is required. It is a way of feeding the necessary information to the system to be more complete. From there, reference is made to a system that is intertwined in all its modalities.
In the initial part, it is integrated with the SD module, since it needs the sales information to activate. Until you get client assurance for the job, no planning effort is invested. It also goes hand in hand with the CS module, which is in charge of generating a work order for the project.
On the other hand, SAP PP is well associated with the MM module. There, materials for work, inventory, and, if required, purchases are managed. With the PM module, which is where the equipment used to meet work requests is controlled. The SAP FI, since it is the final part of the process where the economic part is established. From all of them, a software is achieved that complements itself module by module .
When speaking of the SAP PP module, reference is made to a complete planning tool. By being able to manage all the resources and components assigned to a project, success is guaranteed for the organization. With PP you can establish a good work system, organized and with good strategies .
In addition, effective tracking between plan and actual costs is achieved. In the end, it is possible to deliver without delays and the expected profit margin is maintained.