Product Planning

The purpose of PP&C (Production Planning and Controlling) is to ensure that manufacturing runs effectively and efficiently and produces products as required by customers. The Production Planning module of SAP takes care of Master data needed like Bill Of Materials, Routings and Work Centers and stores it in one separate component.

But this highly complex module integrates with many SAP components like:

  • Master Data – includes the material master, work centers, routings and bill of materials.
  • SOP – Sales and Operations Planning (SOP) provides tools for forecasting sales and production planning based on historical, current and future data.
  • DRP – Distribution Resource Planning allows to plan the demand for distribution centers.
  • Production Planning – includes material forecasting, demand management, long term planning and master production scheduling (MPS).
  • MRP – Material Requirements Planning relies on demand and supply elements with the calculation parameters to calculate the net requirements from the planning run.
  • Shop Floor Control – includes the processing of production orders, goods movements, confirmations and reporting tools for production.
  • Capacity Planning – evaluates the capacity utilized based on the work centers available capacity to show capacity constraints.
  • Repetitive Manufacturing – in repetitive manufacturing, the manufacturing process is usually simple in that the same products are produced over a long period of time. This module provides the transactions and business process for companies to run repetitive manufacturing in SAP.
  • KANBAN – is a process of replenishment based on a pull system using KANBAN cards to generate the replenishment cycle.
  • Product Cost Planning – is the process of evaluating all the time values and value of component materials to determine the product cost.