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SAP PP- Production Planning

SAP is at the centre of today’s technology revolution. The market leader in enterprise application software, SAP helps organizations fight the damaging effects of complexity, generate new opportunities for innovation and growth, and stay ahead of the competition.

What is SAP ERP?

SAP is a German multinational software company known for making enterprise resource planning (ERP) software. ERP software allows organizations to manage business operations, and usually refers to suite of modular applications that collect and integrate data from different aspects of the business. While it is the sole focus of this article, SAP is just one provider of ERP software. Others include: Oracle, Microsoft, Infor Orbis, and Epicor.

Below is a general overview of SAP's modules for enterprise management, implementation methods, and where it stands amongst its competitors.

History of SAP

The product of five ex-IBM employees, SAP started in 1972 as a small software company in Germany with just one customer. The company's name stands for Systems, Applications & Products. Its founders had a vision of producing software that could process data when a user wanted it, rather than in overnight batches as earlier software did. Their first product was a modification of IBM's punch-card data storage, which stored data mechanically and required overnight processing. For their client, the German branch of Imperial Chemical Industries, SAP developed a real-time payroll and punch-card system in 197 SAP's ERP started as R/2, named for its real-time architecture and two servers. In later years it was called R/3, for three servers: the application server, production server, and database server. In 2006, SAP released the latest version, ECC 6.0, and in 2013 an Enhancement Package (EHP7) was released.

SAP's Enterprise Resource Planning Modules SAP is a leader when it comes to neatly integrated ERP software; its various departmental applications work symphonically. Beyond its basic models, SAP provides industry-specific add-on solutions. The SAP ERP suite contains an enormous number of modules, and the main categories are:

Accounting:

  • Finance (FI)
  • Investment Management (IM)
  • Project Systems (PS)
  • Controlling (CO)
  • Enterprise Controlling (EC)
  • Financial Supply Chain Management (FSCM)

Logistics:

  • Material Management (MM)
  • Sales and Distribution (SD)
  • Logistics Execution (LO)
  • Warehouse Management (WM)
  • Plant Maintenance (PM)
  • Customer Service (CS)
  • Fleet Management (FM)
  • Quality Management (QM)
  • Production planning (PP)
  • Environment, Health, and Safety (EH&S)

Human Resources:

  • Organization Management (HR-OM)
  • Personnel Management (HR-PM)
  • Personnel Administration (HR-PA)
  • Personnel Development (HR-PD)
  • Personal Time Management (HR-PT)
  • Payroll (HR-PY)
  • Training and Event Management (HR-TE)
  • Learning Solutions (HR-LSO)
  • Compensation (HR-CM)
  • Enterprise Compensation (HR-ECM)
  • Benefits (HR-BN)
  • Recruitment (HR-PB)
  • Loan (HR-LN)
  • Advance Business Application Programming (HR-ABAP)

Technology:

  • Cross-Application (CA), includes classification systems and workflow
  • Basic Components (BC or BASIS)
  • Programming (ABAP)
  • Security and Authorizations

Other Modules (requiring separate installation):

  • Business Warehouse (BW)
  • Business Intelligence (BI)
  • Knowledge Warehouse (KW)
  • International Demonstration and Education System (IDES)
  • Customer Relationship Management (CRM)
  • Master Data Management (MDM)
  • Supplier Relationship Management (SRM)
  • Exchange Infrastructure (XI)
  • Process Integration (PI)
  • Global Trade Services (GTS)
  • Strategic Enterprise Management (SEM)
  • Business Consolidation and Sourcing (BCS)
  • Business Planning and Consolidation (BPC)
  • Corporate Finance Management (CFM)

Some of these modules, particularly those in Finance and Investment Management, can be broken down into sub-categories of modules, such as Accounts Payable or Receivable, Investment Orders, or Investment Support. Specific business operations and industry requirements will determine which modules are needed.

Finance, Controlling, Sales and Distribution, Material Management, and Human Resources are some of the most important sub-modules in SAP. Depending upon the organization needs, a client can buy whatever modules needed. For example, a client can buy FI, SD and MM modules only without buying CO and HR modules.

SAP Modules
As I mentioned earlier, SAP is an ERP system that handles almost all department of an organizations. SAP handles an organizations'sFinance , Controlling, Human Resource, Sales, Distribution, Material management, Warehouse, Production, Security, Research and many other departments. Not just that but SAP has a special industry specific solutions for almost all industries such as manufacturing, Pharmaceuticals, Insurance, Security, Finance, Treasury etc.
SAP FICO, SD and HR are most important modules. FI and CO modules controls finance and controlling respectively. SD controls sales and HR controls Human Resource departments. FICO is a base module which gets highly connected to SD, MM, HR and PS modules.
Let's just talk about some basic SAP modules those are useful for all domains.
Finance (FI), Controlling (CO), Sales & Distribution (SD), Material Management (MM) and Human resources (HR) are some of the most important sub modules in SAP. Depending upon the organization needs, a client can buy whatever modules needed. For example, a client can buy FI, SD and MM modules only without buying CO and HR modules.

SAP PP (Production Planning)
SAP PP stands for production Planning, It is the process of aligning forecasting and customer demand with manufacturing facility to create production and procurement schedules for finished products and component resources.
SAP PP helps to record, monitor and tracks all the activities of manufacturing and production process of a company. SAP Production planning modules is fully integrated with other SAP modules such as Sales and Distribution, Material Management, Quality Management, Financial accounting, Controlling, Plant maintenance and logistics execution. SAP Production master data must be configured in the SAP system before using the PP transactions.

SAP PP Module incudes below objects:-

  1.  Make to Order (CR)  
  2.  Make to Order (PIR)  
  3.  Repetitive Manufacturing  
  4.  PP for Process Industries (PP - PI)  
  5.  PP - Processes  
  6.  Sales and Operations Planning  
  7.  Capacity requirements  
  8.  Master Planning  
  9.  MRP (Material Requirements Planning)
  10.  KANBAN  
  11.  Production Orders  
  12.  Product Cost Planning  
  13.  Plant Data Collection  
  14.  Assembly Orders  
  15.  Information System

 







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