Production Planning and Execution (PP)

Flashcards covering key concepts from the Production Planning and Execution lecture notes.

What is the primary function of Production Planning (PP)?

Aligning demand with manufacturing capacity by creating production and procurement schedules.

What are the three main divisions of production within SAP?

Production Planning, Manufacturing Execution, and Production – Process Industries.

Name at least three organizational units shared by PP with other SAP modules.

Client, Company Code, Plant, Storage Location, Work Center Locations

List the five types of PP Master Data.

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

What information does the Material Master contain?

General Data, Material Requirement Procedure (MRP), Lot Size Data, and MRP Areas.

What are the three different kinds of BOM?

Single-level, Multi-level, and Variant Bill of Materials.

What is an Item Category in the context of BOM?

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

Give examples of item categories.

Stock Item, Non-stock Item, Variable Material, Document Item, Text Item

What is 'Routing' in Production Planning?

The series of sequential steps or operations required to produce a product.

What information does Routing contain for each step?

What, where, when, and how of the operation.

What does the Control Key specify in Routing?

How an operation or sub-operation is processed in functions such as orders, costing, or capacity planning.

What is the purpose of a Work Center?

The location within a plant where value-added work is performed.

What kind of data is captured by a Work Center?

Basic Data, Scheduling Information, Costing Data, Personnel Data, Capacity Planning, Default Data

What is a Product Group?

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

Name the core processes included in Production Planning & Execution.

Forecasting, Sales and Operations Planning (SOP), Demand Management, Master Production Scheduling (MPS), and Material Requirement Planning (MRP).

What are the three layers of planning in PP?

Strategic Planning, Detailed Planning, and Manufacturing Execution.

Why are accurate forecasts essential in the manufacturing sector?

To help oversee stock levels and prevent profit loss from overstocked or understocked warehouses.

What are the three layers of Sales and Operations Planning (SOP)?

Sales Plan, Production Plan, and Rough Cut Capacity Plan.

What is the role of Demand Management?

It serves as the link between Strategic and Detailed Planning, planning requirement quantities and dates.

What is the result of the Demand Management process?

The Demand Program, generated from Independent Requirements, Planned Independent Requirements (PIR), and Customer Independent Requirements (CIR).

What is Master Production Scheduling (MPS)?

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

What is the main function of Material Requirement Planning (MRP)?

To calculate net requirements while considering available warehouse stock and scheduled receipts.

What are the five logical steps in MRP?

Net Requirements Calculations, Lot Size Calculations, Procurement Type, Scheduling, and BOM Explosion.

Name the 2 Procurement Types in MRP.

External Procurement, Internal Procurement

Give examples of outputs of the MRP process.

Planned Order, Production Order, Purchase Order

What is the role of a Production Order?

To control production operations and associated costs, defining material, quantity, location, timelines, work, resources, and cost settlement.

What operations are included in the Manufacturing Execution Process?

Production Proposal, Capacity Planning, Schedule and Release, Shop Floor Documents, Goods Issue, Completion Confirmation, Goods Receipt, and Order Settlement.

What are the two release operations during 'Schedule and Release'?

Header Level and Operational Level.

What is the purpose of Shop Floor Documents?

Documents printed upon release of the Production Order

What happens during 'Goods Issue'?

Reserved materials are withdrawn from inventory, reservations and inventory are updated, and costs are assigned to the order.

Why are confirmations necessary?

To monitor and track the progression of an order through its production cycle.

What is the purpose of Goods Receipt?

The acceptance of the confirmed quantity of output from the production order into stock.

What does Order Settlement consist of?

Settling the actual costs incurred in the order to one or more receiver cost objects.