Turning demand into product

SAP PP (Production Planning) decides what to make, how much, and when, then drives the shop floor to make it. It sits at the center of a manufacturer's SAP landscape, pulling demand from SD, pulling materials from MM, and pushing costs into CO.

PP works in three layers: master data (BOM, routing, work center), planning (MRP creates planned orders and purchase requisitions), and execution (converting planned orders to production orders, releasing, issuing components, confirming, receiving).

SAP supports three manufacturing styles: discrete (distinct units, uses production orders and routings), process (continuous batches, uses process orders and PP-PI), and repetitive (high-volume stable flow, uses run schedules).

PP integration: from SD sales orders create demand; with MM goods movements consume stock; into CO production orders are cost objects valued at CO activity rates; into QM inspection lots can trigger at goods receipt.