Production Planning and Execution (PP)

Flashcards covering key vocabulary and concepts from the Production Planning and Execution (PP) lecture notes.

Production Planning (PP)

The process of aligning demand with manufacturing capacity in creating production and procurement schedules for finished products and component materials.

SAP PP

A SAP module that tracks and records the manufacturing process flow, including planned and actual costs, and good movement from raw material to semi-finished goods.

PP Organizational Structure

Shares organizational units with other modules, including Client, Company Code, Plant, Storage Location, and Work Center Locations.

Client

An independent environment in the system.

Company Code

The smallest organizational unit where a legal set of books can be maintained.

Plant

The operating area or branch within the company for manufacturing, distribution, purchasing, or maintenance.

Storage Location

Allows differentiation between various stocks of material in a plant.

Work Center Locations

Defines where and when operations are performed; evaluated by charge rates determined by cost centers and activity types.

PP Master Data

Includes Material Master, Bill of Materials (BOM), Routing, Work Center, and Product Group.

Material Master

Contains all the information a company needs to manage a material, including General Data, Material Requirement Procedure (MRP), Lot Size Data, and MRP Areas.

Bill of Materials (BOM)

Lists the components that make up a product or assembly.

Single-level BOM

Lists the main components.

Multi-level BOM

Lists the main components and their sub-components.

Variant Bill of Materials

Displays several products with many identical parts.

Item Category

An object that defines the items in a BOM according to criteria such as object type.

Routing

The series of sequential steps or operations to produce a given product, used as a template for production orders and a basis for product costing.

Control Key

Specifies how an operation or sub-operation is processed in functions like orders, costing, or capacity planning.

Activity Type

A unit in a controlling area that classifies the activities performed in a cost center.

Work Center

The location within a plant where value-added work (operations or activities) is performed.

Product Group

Aggregate planning that groups materials or other product groups (Product Families).

Forecasting

The foundation of a reliable Sales and Operations Planning (SOP). It's essential to oversee stock in the manufacturing sector.

Sales and Operations Planning (SOP)

Planning that utilizes information from Sales, Marketing, Manufacturing, Accounting, Human Resources, and Purchasing via Intra-firm Collaboration.

Demand Management

Serves as the link between Strategic Planning and Detailed Planning, involving the planning of requirement quantities and dates for finished products and important assemblies.

Demand Program

Generated from Independent Requirements, Planned Independent Requirements (PIR), and Customer Independent Requirements (CIR).

Master Production Scheduling (MPS)

Allows a company to distinguish planning methods between materials that strongly influence profit or use critical resources and those that do not.

Material Requirement Planning (MRP)

The system calculates the net requirements while considering available warehouse stock and scheduled receipts. All BOM levels are planned, ensuring material availability.

Planned Order

A request created in the planning run for material in the future, which can convert to a production or purchase order.

Production Order

A request or instruction internally to produce a specific product at a specific time.

Purchase Order

A request or instruction to a vendor for a material or service at a specific time.

Scheduling

Calculates production dates and capacity requirements for operations within an order.

Goods Issue

Material withdrawal; when reserved materials are withdrawn from inventory upon order release, updating reservations and inventory and assigning costs.

Confirmations

Track order progression, requiring data such as quantities, activity data, dates, personnel data, work center, goods movements, variance reasons, and PRT usage.

Goods Receipt

Acceptance of confirmed output quantity into stock, updating stock quantity/value, the production order, and prices.

Order Settlement

Settling actual costs incurred to receiver cost objects using a settlement profile and structure.