SAP PP Overview

Hello Guys,

This document is basically for those who are new in SAP PP module.

We have so far seen the Master data and production

planning steps in PP. In this document we will go thru

the nuts and bolts of Production Execution. Alright lets

breeze through this.

There are three types of production process in SAP.

1. Discrete Manufacturing

2. Repetitive Manufacturing

3. Production – Process Industries.

Configuration settings related to Discrete Manufacturing and

essential Repetitive manufacturing is discussed in detail here.

First let us understand what is happening in the system prior

to the production execution process.

a. Planning quantities are derived and maintained in

the system.

b. Material Requirement Planning run will generate

the planned order for the net required quantity with

the start date of the production process

c. Master data (BOM and Routing details) will be

copied in to the planned order automatically during

MRP run.

Guys, I believe you got an idea about the steps involved prior

to the production execution process. OK, let’s discuss about

the production execution process now.

Production Execution process contains five important steps.

They are

1. Converting planned order to production order

2. Releasing the production order

3. Goods Issue for production order

4. Confirmation of production order

5. Goods Receipt against production order

1. Converting planned order to production order:-

Planned order has to be converted to production order to

account the entire production.

Production order or process order type has to be

mentioned when converting the planned order. Entire

master data will be copied to the respective order when

converting the planned order.

Order type is the most important configuration setting for

production execution.

2. Releasing the production order:-

Release of production order is an important step in

production order. Releasing of production order indicates

the commencement of production. Unless the order is

released, further processing of order is not possible.

While releasing the production order system can perform

1 Material availability

2 Capacity availability

3 Creation of Batch

4 Reservation creation

Configuration settings related to the above functions are

covered in Availability check, order type parameters.

3. Goods Issue for production order:-

Goods issue covers issuing required components to make

the finished product to a production order. While making

the goods issue, the document number can be updated in

the production order.

Configuration setting related to this is discussed in order

type parameter.

Goods issue can be made in parallel during confirmation

of operation. Relevant configuration settings related to

goods issue during confirmation are discussed in

confirmation parameter.

4. Confirmation of production order:-

Reporting of usage of components and activities are

termed as confirmation.

Confirmation to the each operation will be executed

according to the control key attached with each


Confirmation configuration setting controls

Adhering to the sequence of operation

Under delivery / over delivery tolerance

Back-flush components

Proposal and calculation of activity standard value

Above configuration settings are discussed in

confirmation parameter.

5. Goods Receipt against production order:-

Once the production is completed, finished products will

be received from the production order into the respective

storage area.

This can be achieved through two ways

1. Through confirmation

2. Through separate transaction.

Document number will be generated for each goods

receipt. This document number can be updated in the

production or process order.

Configuration settings related to these are discussed in

Production scheduling profile and order type parameter.

Now you will easily understand what is backflush? It is the

process of issuing components automatically while confirming

the production or process order.

Hope the above briefing has given you the enough idea to go

ahead for configuration of production execution process.

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