Production Planning

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Production Planning (PP) includes the business processes used to plan and track the cost of production orders. The company structure reflected in PP starts at the top with Client Number, which represents your head office. The Company Code is next , followed by the units, which are subdivided into Plants and Work Centers (see Figure A.5).

Figure A.5. One way of representing a production organization in SAP R/3. Part of a Routing is shown.

Plain English

Bill of Materials (BOM), Routing

Making an analogy to a recipe, the Bill of Materials is the ingredients list, and the Routing is the instructions.

To get a quick overview of Production Planning, follow the sample production run shown in Figure A.6.

Figure A.6. A typical flow in Production Planning.

PP also handles the following functions:

Scheduling of Production Resources & Tools and Capacity Leveling
Make-to-Order (job-shop) and Repetitive Manufacturing (make-for-stock) jobs
External processing, where your product receives some processing at an outside company
Directing the printing of shop floor notices to the appropriate shop-floor printer

The main documents used in PP include Production Order, Bill of Material, Material Provision List, Goods Reservation, Completion Confirmation, Time Ticket, Production Resource & Tools Overviews, and Withdrawal Slip. The main master files used in PP include Routings, Work Centers, and Material Master.

PP interfaces with MM, Human Resources (HR), and CO.

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