SAP PP TUTORIALS-
SAP Planning Strategies (PP)Production Planning-: A Step-by-Step Guide-
Introduction-
SAP Planning Strategies (PP)Production Planning-: Overview
In SAP HANA AND ECC 6.0 SAP Production Planning (PP) includes various planning strategies to determine how a company plans production and fulfills customer demand. These strategies are mainly divided into Make-to-Stock (MTS) and Make-to-Order (MTO) Way, with a few variations. Here’s a some of key planning..
Follow Steps
-Make-to-Stock (MTS) Strategies-MTS is used when production is based on forecasted demand rather than actual customer orders. The focus is on keeping stock available for immediate delivery.
-1)Strategy 10 – Net Requirements Planning (Make-to-Stock).
-Go to MM02 (Material Master)-21.
-Select MRP3 Tab.
-Select Strategie Group-10.
-***Points***-
-Sales orders do not influence production directly..
-Planning is based on independent requirements (e.g., forecasted demand)-
-System considers existing stock and firm receipts (Example- planned orders, production orders, and purchase orders)-
-***EXAMPLE***-
-AVILABLE STOCK-1250.
-PLANNED ORDER -1300- USE STRATEGY 10-
-1)MD61-PLANNED ORDER- TRYING TO PLAN ORDER FEB MONTH-1300 QTY BUT STOCK IS AVILABLE ONLY 1250- THEN WHAT HAPPENEND?
-2)MD04- STOCK-REQUIREMENT LIST- SYSTEM SHOWES NEGATIVE AVL QTY- 1300- AND 50-
-3)MD02-MRP RUN- CHECK STOCK 50 QTY-IS PENDING
SAVE
-2)Strategy 11 – Gross Requirements Planning.-.
-Strategy 11 used for make-to-stock production but ignores existing stock.
-Strategy 11 this strategy always generates planned orders based on the PIRs, without considering the available stock.
-Strategy 11Useful when businesses want to ensure production continues regardless of current inventory.
-GO TO MM02-21 MATERIAL- THEN SELECT- MRP3 TAB- SELECT - Strategy 11 AND SELECT-MIXED MRP-2 GROSS REQUIREMENT PLNNING-
-EXAMPLE-STOCK AVILABLE-1250- BUT PLANNED ORDER IS 1300 QTY THEN STRATEGY 11-ITS IGNORE EXISTING STOCK,AND GENRATE A PLANNED ORDER
- MD02-MRP RUN- THEN CHECK STOCK-
SAVE
-3)Strategy 40 – Planning with Final Assembly.-.
-Strategy 40 Production is based on forecast but allows adjustments for customer orders..
-Strategy 40 Commonly used in mass production industries.
-4)Strategy 30 – Planning Without Final Assembly.-.
-Strategy 30 Only components are produced based on forecasts...
-Strategy 30 Final assembly happens after receiving customer orders..
-Strategy 30 Example- Configurable products like computers AND servers.
-Make-to-Order (MTO) Strategies.-this is used when production starts only after a customer order is received. There is no stock kept for immediate sale.
-1)Strategy 20 – Strategy 20 – Make-to-Order Production.-.
-Strategy 20 Production starts only after receiving a customer order....
-Strategy 20 No stock is maintained...
-Strategy 20 Example: machinery product, customized products...
-2)Strategy 50 – Planning without Final Assembly.-.
-Strategy 50 Similar to Strategy 30 but linked directly to sales orders...
-Strategy 50 Used for configurable or engineer-to-order products...
-3)Strategy 60 – Planning with Assembly.-.
-Strategy 60 Production is planned at a component level...
-Strategy 60 Assembly happens once the customer order is received...
-Strategy 60 Example: Semi-customized vehicles...