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Discover the importance of SAP PP as we delve into the critical aspects of production planning processes. Our SAP PP training gives you the resources you need for effective and efficient Sap production planning in the SAP environment, from grasping the SAP PP full form to getting practical experience. The SAP PP course offers real-world examples and practical insights to supplement theoretical knowledge and improve your comprehension. You'll pick up the skills necessary for a production planning installation that is effective by learning how to use the SAP PP module with assurance.
SAP PP full form is Sap Production Planning. This SAP PP module within the SAP ERP system that helps businesses manage their manufacturing processes efficiently. It covers areas such as production planning, scheduling, and control, enabling companies to optimize production resources, streamline workflows, and meet customer demands. SAP PP facilitates coordination between different departments, tracks production orders, and ensures smooth material flow throughout the production cycle. It aids in making informed decisions, reducing production costs, and improving overall productivity by aligning production with business goals
In Technical Terms:
SAP PP full form is SAP Production Planning is an integral module within the SAP ERP system, designed to optimize and streamline manufacturing processes. It encompasses a range of functionalities that enable comprehensive production planning, scheduling, and control. SAP PP assists in creating production orders, defining production resources, and allocating materials based on master data and demand forecasts.
Using advanced features like Bills of Material (BOMs), Work Centers, and Routing, SAP PP facilitates the creation of detailed production plans that consider resource availability, production capacities, and lead times. It supports various production strategies, such as make-to-order, make-to-stock, and engineer-to-order. Additionally, SAP PP module integrates with other SAP modules like Materials Management (MM) and Sales and Distribution (SD) to ensure seamless coordination across different business processes.
With a focus on optimizing production efficiency and minimizing costs, SAP PP module aids in real-time monitoring of production progress, capacity utilization, and material consumption. Its integration with SAP Advanced Planning and Optimization (APO) enhances the forecasting and planning capabilities, enabling businesses to achieve higher levels of accuracy and responsiveness in their production operations.
1.Net Requirements Calculation: In SAP PP module, net requirements calculation involves determining the difference between the total requirements for a material and the available stock and planned receipts. It considers demands from sales orders, forecasts, and other sources. The system calculates the net requirements by subtracting existing inventory and scheduled receipts (such as open purchase orders or production orders) from the total demand. This helps ensure that you procure or produce only the necessary quantities, minimizing excess inventory and stockouts.
2.Procurement Quantity Calculation: SAP PP module calculates the procurement quantity based on factors such as net requirements, safety stock, and lot sizes. The system considers parameters like economic order quantity (EOQ) and reorder point to determine the optimal quantity to purchase or produce. This helps in minimizing costs related to ordering, transportation, and holding inventory.
3.Source Determination: Source determination in SAP PP involves selecting the appropriate source of supply for procurement. It considers factors such as vendor evaluations, pricing, lead times, and availability. The system helps identify the best supplier based on predefined criteria, ensuring efficient procurement and reducing sourcing complexities.
4.Reuse Mode: Reuse mode in SAP PP module allows for the optimization of existing materials, components, or semi-finished goods. Instead of creating new items, the system identifies opportunities to reuse existing stock or materials that match the required specifications. This promotes resource efficiency and reduces the need for additional procurement or production.
5.Firming Receipts: Firming receipts in SAP PP involves confirming or locking in planned receipts such as purchase orders or production orders. Once firmed, these receipts are considered as fixed commitments, and the planning system takes them into account for subsequent planning calculations. This helps in better control over material availability and scheduling.
6.ATP Check in Order: ATP (Available-To-Promise) check in SAP PP is a real-time verification process that confirms whether the required materials for an order are available or can be made available within a specified time frame. It considers existing stock, planned receipts, and production capacities. If the ATP check is successful, the order is considered feasible; otherwise, it may need to be rescheduled or adjusted.
7.Calculation of Days' Supply: SAP PP module calculates the days' supply of materials based on inventory levels and historical consumption data. This metric helps in understanding how long existing stock is expected to last, aiding in inventory management and avoiding stockouts or overstocking.
8.Safety and Target Stock Level Planning: SAP PP enables the planning of safety and target stock levels. Safety stock acts as a buffer against unexpected demand fluctuations, while target stock represents the desired inventory level to support regular operations. The system considers factors like demand variability and lead times to determine optimal safety and target stock quantities.
9.Quality Management Integration: SAP PP module integrates with the Quality Management module to ensure that production processes adhere to quality standards. Quality checks, inspections, and tests can be embedded in the production workflow to validate product quality and compliance before final release.
10.Integration with Sales and Distribution (SD): SAP PP module integrates with the Sales and Distribution module, allowing production planning to align with customer demands and sales orders. This integration ensures that production efforts are aligned with the sales forecast, helping in efficient order fulfillment and minimizing order-to-cash cycle times.
1.Master Data Management: Effective master data management ensures the accuracy, consistency, and integrity of essential data across the organization. It involves centralizing critical information like products, customers, and suppliers to provide a single source of truth, enhancing decision-making and operational efficiency while reducing errors and redundancies.
2.Demand Management: Demand management involves forecasting and planning for future customer requirements. By analyzing historical data, market trends, and customer behaviors, organizations can anticipate demand fluctuations, optimize inventory levels, and align production and distribution processes to meet customer needs efficiently.
3.Production Planning: Production planning is the strategic process of scheduling and allocating resources to optimize manufacturing operations. It encompasses forecasting demand, determining production quantities, sequencing orders, and allocating resources like labor, materials, and equipment to ensure efficient production cycles.
4.Production Orders: Production orders are the executional elements of production planning. They provide detailed instructions for manufacturing processes, specifying quantities, materials, routing, and scheduling. Effectively managing production orders ensures timely and accurate execution of production plans.
5.Capacity Planning: Capacity planning involves assessing an organization's ability to meet demand while utilizing resources optimally. It helps balance production capabilities with market requirements, ensuring that the organization can produce the right amount of goods without overburdening resources or creating bottlenecks.
6.Shop Floor Control: Shop floor control focuses on real-time management and oversight of manufacturing operations. It involves monitoring work-in-progress, tracking production status, managing work queues, and ensuring that production processes adhere to planned schedules and quality standards.
7.Product Costing: Product costing involves calculating the total expenses associated with producing goods. This encompasses direct costs (materials and labor) as well as indirect costs (overheads). Accurate product costing supports pricing decisions, budgeting, and profitability analysis.
8.Quality Management Integration: Integrating quality management ensures that product quality standards are consistently met throughout the production process. It involves defining quality parameters, conducting inspections, and implementing corrective actions to maintain or enhance product quality while minimizing defects and waste.
There are several other production process Solutions available in the market, such as IFS Applications, Epicor ERP, Infor CloudSuite Industrial, Fishbowl Manufacturing, MRPeasy etc. While these solutions offer some benefits they still fall short when compared to SAP PP.
For instance, IFS Applications Offers a comprehensive suite of solutions for various business processes but Implementation could require specialized expertise. Epicor ERP Provides industry-specific solutions with robust manufacturing features but Could be cost-prohibitive for smaller businesses. Infor CloudSuite Industrial Offers cloud-based flexibility and scalability for production and manufacturing operations but Could have a steeper learning curve for organizations transitioning to cloud-based solutions. Fishbowl Manufacturing Focuses on small to mid-sized manufacturing businesses but May lack some advanced features required by larger enterprises. MRPeasy offers User-friendly interface with rapid implementation but Might not be as feature-rich as solutions designed for larger and more intricate manufacturing operations.
Here's a comparison between SAP PP and other production process Solutions:
|Other Production Process Solutions
|Comprehensive production and manufacturing solution
|Some offer specific functionalities for certain industries or production processes
|Production Planning and Scheduling
|Advanced production planning and scheduling capabilities
|Production planning features may vary
|Integration with ERP/MRP Systems
|Integrated with SAP ERP/MRP modules
|Integration options differ based on third-party systems and customizations
|Analytics and Reporting
|Advanced analytics and reporting features
|Reporting capabilities differ based on solution
|Available on SAP Cloud Platform
|Some solutions are cloud-based, others offer both cloud and on-premises options
Master data refers to a foundational and critical subset of data within an organization that serves as a single, consistent source of truth for key business entities, attributes, and relationships. It encompasses essential information about customers, products, suppliers, employees, and other core elements that are vital for day-to-day operations and strategic decision-making. Master data acts as a reference point for various business processes, applications, and systems across the enterprise, ensuring data consistency, accuracy, and reliability.
Typically, master data includes key attributes such as names, addresses, identifiers, classifications, and hierarchies that define the characteristics of each entity. This data is usually stable over time and changes relatively infrequently compared to transactional data. Establishing and maintaining high-quality master data is crucial for achieving operational efficiency, minimizing errors, enhancing customer experiences, and complying with regulatory requirements.
There are five main master data objects consist of following:
- 1.Material Master: Serves as the core repository of essential information about materials, encompassing attributes like descriptions, classifications, and procurement details.
- 2.Bill of Material -BOM: The "Bill of Materials" (BOM) outlines the hierarchical structure of components required to manufacture a product, offering insights into material dependencies and quantities needed for each stage
- 3.Resource o Master Recipe: For orchestrating manufacturing operations, the "Resource Master" details the machinery, tools, and labor required for production, while the "Recipe" delineates precise instructions for each step in the process.
- 4.Production Version: The "Production Version" aligns the BOM and routing information with specific production specifications, aiding in consistent and accurate manufacturing.
- 5.Engineering change Management: In the realm of evolving products, the "Engineering Change Management" process plays a pivotal role. It involves systematically tracking and implementing modifications to materials, BOMs, and processes, ensuring seamless transitions while maintaining data integrity and adherence to regulations.
Sales and Operational Planning (SOP) is a dynamic and integrated business process that facilitates effective decision-making by aligning an organization's sales forecasts with operational capabilities. SOP involves cross-functional collaboration between sales, marketing, operations, finance, and other relevant departments to create a holistic plan that balances supply and demand. This process enables companies to optimize resources, mitigate risks, and enhance customer satisfaction.
SOP aims to prevent scenarios of understocking or overstocking, which can lead to production inefficiencies, increased carrying costs, and missed revenue opportunities. It also considers external factors like seasonality, economic conditions, and regulatory changes that could impact the demand and supply landscape.
Standard Planning, supported by the Standard SO76 Information Structure, is a vital facet of effective supply chain management that interlaces various components to streamline operations and enhance decision-making. By categorizing products into Product Groups, organizations can tailor strategies to suit specific attributes, ensuring accurate estimations of demand for each material. This detailed approach dovetails with Product Group Aggregation and Desegregation, striking a balance between broader overviews and granular insights, aligning strategies with overarching goals.
Within this framework, the "Creation of Plan and Version Management" plays a pivotal role. Organizations synthesize plans based on sales forecasts and historical data. These plans undergo version management, enabling the tracking and comparison of iterations to make informed decisions. Subsequently, the plans are seamlessly "Transferred to Demand Management," where they are translated into actionable steps.
This interconnected process optimizes resource allocation, production scheduling, and inventory management. It empowers businesses to align operational strategies with market demands, enhancing competitiveness and responsiveness. The integration of Standard Planning methodologies with the Standard SO76 Information Structure creates a holistic approach that harmonizes various aspects, fostering collaboration, efficiency, and adaptability within the dynamic landscape of supply chain management.
Master Planning, a foundational component of effective supply chain management, involves the strategic orchestration of resources, production capacities, and inventory levels to align with demand forecasts and organizational goals. This dynamic process enables organizations to meet customer needs efficiently while optimizing costs and maintaining operational excellence.
At its core, Master Planning entails creating comprehensive production plans that encompass various time horizons, from short-term to long-term. By analyzing historical data, market trends, and sales forecasts, businesses can anticipate demand fluctuations and adjust their production strategies accordingly. This proactive approach helps prevent issues like stockouts or excess inventory, ultimately leading to improved customer satisfaction and resource utilization.
Demand Planning is an integral aspect of effective supply chain management, intricately linked with Master Planning to ensure seamless alignment between projected customer requirements and production strategies. It involves the meticulous process of estimating future demand by analyzing historical data, market trends, and customer insights. This anticipatory approach generates Planned Independent Requirements (PIR), forming the cornerstone of the demand forecast.
The creation of PIR, rooted in comprehensive data analysis, facilitates a more accurate depiction of upcoming customer needs. These requirements serve as pivotal inputs to the Master Planning process, guiding production decisions and resource allocation. By understanding the anticipated demand, organizations can fine-tune their production schedules and optimize inventory levels, preventing overstocking or stockouts.
Embedded within Demand Planning are various Planning Strategies that dictate how resources will be allocated to meet the projected demand. These strategies encompass elements like make-to-order, make-to-stock, and assemble-to-order approaches. The choice of strategy is closely intertwined with the PIR and hinges on the balance between cost-efficiency and customer responsiveness.
The synergy between Demand Planning, PIR creation, and Planning Strategies harmonizes these elements with the broader Master Planning framework. This cohesive integration ensures that organizational resources are utilized optimally, production capacities are aligned with customer requirements, and supply chain operations remain responsive to market dynamics.
Goods Movement in Production Planning (PP) constitutes a pivotal stage within the manufacturing process, encompassing the physical transfer of materials and products across various stages of production. This multifaceted process plays a critical role in maintaining accurate inventory records, enabling efficient resource allocation, and ensuring the smooth progression of production operations.
Goods movement entails a series of transactions that involve both inbound and outbound material flows. It begins with the receipt of raw materials, components, or semi-finished goods into the production facility. This incoming goods movement triggers updates in inventory levels and serves as the foundation for subsequent manufacturing processes.Within the dynamic realm of Goods Movement in Production Planning (PP), several integral processes work in tandem to facilitate the smooth flow of materials and products throughout various stages of production and distribution. These processes, namely Goods Receipt, Goods Issue, Stock Transfer, and Transfer Posting, interconnect to create a comprehensive framework that ensures accurate inventory management and streamlined operations.Goods Receipt initiates the movement by encompassing the receipt of raw materials or components into the production facility. This incoming material triggers a meticulous record update that forms the basis for subsequent production activities. Conversely, the Goods Issue process orchestrates the outward movement of products, culminating in the transfer of finished goods to storage or distribution points. This outbound movement completes the production cycle and serves as a reference for sales and distribution procedures.
The intricate Stock Transfer mechanism permits the seamless movement of materials from one storage location to another, optimizing inventory distribution across various points within the organization. Transfer Posting, on the other hand, allows for the modification of stock quantities between different stock types, catering to changes in material classifications, valuation methods, or other pertinent factors.
The integration of these processes within the Goods Movement in PP framework is instrumental in maintaining accurate inventory records, enhancing resource allocation efficiency, and supporting the broader objectives of production planning. This integrated approach not only minimizes errors and production delays but also ensures compliance with regulatory standards and facilitates responsive decision-making.
To further enhance these processes, modern technological solutions such as automated tracking systems, barcode scanning, and real-time data synchronization are often employed. These technologies bolster accuracy, minimize manual interventions, and amplify visibility into goods movements, consequently optimizing the efficiency and transparency of the entire production and distribution cycle.
Batch Management is a crucial functionality that enables businesses to efficiently manage and track the production of materials or products in distinct batches. With Batch Management, companies can categorize their products based on specific attributes such as manufacturing date, supplier, or quality parameters. This categorization allows for precise monitoring and control throughout the production and distribution processes.
At its core are Condition Tables that lay the groundwork by establishing batch selection criteria such as material attributes, plants, and storage locations. The Access Sequence then prioritizes these conditions, creating a structured approach to batch determination.Embedded within the Access Sequence are Strategy Types, dictating how batches are chosen based on specified conditions. This strategic framework guides the PP Batch Search Procedure, a step-by-step process designed to systematically identify the most suitable batch for production.
The dynamic Batch Status in PP mirrors a batch's position within the production cycle, whether available, in-process, or completed. This status monitoring empowers real-time decision-making and progress tracking.
To effectively categorize batches, Characteristics and Classes are utilized. Characteristics define unique attributes like size or color, while Classes group similar batches based on these characteristics. This classification simplifies batch management and reporting processes.
Addressing time-sensitive goods, the Shelf Life Expiration Date (SLED) ensures batches are used or distributed within specified timeframes, optimizing product quality and minimizing waste.
Facilitating batch selection are the Manual and Automatic Batch Display methods. The Manual option empowers users to choose batches based on specific criteria, while the Automatic method presents batches according to predefined rules.
Furthermore, integrating batch management with Process Orders ensures correct batch assignment during production, guaranteeing material consistency and adherence to quality standards.
Enrolling in our SAP PP training course means more than just gaining a SAP PP certification—it's an investment in your career growth. With the knowledge and skills in SAP PP course, you can achieve your goals of improving your SAP PP competency, moving into Sap production planning responsibilities, or advancing your career.
Whether you are a learner or a SAP QM consultant or want a SAP PP certification, grab the opportunity to join our community of learners dedicated to mastering SAP PP. Join Best Online Career’s SAP PP training today to begin your journey towards mastering SAP PP and open up a world of opportunities in production planning and beyond.
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Next day you will get recordings of that missing session on your google drive automatically.
yes, First during the time of registration and second after 30% of course completion.
SAP PP Training cost will depend on course topic choose by candidate & required time duration to complete the course.
Yes, all SAP PP training material is provided to the candidate from the consultant that include complete SAP PP Overview, SAP pp Configuration Document, SAP PP Training Video etc.
Yes indeed. We believe more in practical and experiential learning than just theoretical teaching. With Best Online Career, you get to work on real SAP screens with hands-on SAP and also get guided instructions and explanations along. We give all our learners a full access to SAP Sandbox for a real SAP experience. Access is not limited to training hours.
Certainly. You can always request for a FREE demo here.
All you need to get started with us is a good configuration computer, good quality headphones, stable Internet Connection and GoToMeeting software.
Not a problem at all. You need to inform us about the missed classes and we can fit you in the next session and also provide you recorded online video of the class.
Since ours is a real-time online instructor-led-training, your questions will be answered by the trainer and doubts will be resolved. You just need to voice out your question and we will be eager to help you with an explanation.