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PP Flow.

First of all demand is generated for the product to be produced through demand
management. It calculated the quantities to produce and the time for the final
assembly.
The data from demand management is transferred to MRP. The data from demand
team can come from Customer Sales Order (firm) or Planned Order (forecast).
The MRP checks for the availability of material at various stages of BOM. In case
material is not available MRP generated planned order and Purchase requisition for
production of components in house and procurement from vendor respectively.
The planned orders are converted into production order by the planner and the
purchase requisition are converted into purchase order by the purchaser.
Production in charge converts the planned order to production order and carries out
the production activities once the order is released for production. Production is
carried out as per the operation steps provided in the routing. Work centers are also
mentioned with each operation in the routings where these operations are to be carried
out.
Once the production is completed production confirmation is done and goods
movement (delivery created) takes place.
Capacity planning is yet another part of PP which planes the capacities for various
work centers. MPS is another tool which is used to plan out the master products. If
MPS is to be run the inputs are provided from demand management to MPS. And the
output from MPS is then feed into MRP.

Routing & Work center.


For SAP PP consultants, it is very important to understand the concept of SAP work
centers as well as routings in SAP. Work centers are an important part of production
planning in SAP. In the simplest terms, work center is a location where a particular
operation is executed. Work centers help in identifying the location where the work is
going to be performed. Work centers are used in production task lists and in
production orders. There are various ways of looking at work centers in SAP, where

work centers can be used as capacity collectors for internal and external processing.
Thus, work center is a location where production relating resources are consumed by
production and manufacturing activities.
Now coming to the concept of routing in SAP PP. Routing describes a production
process. Routings in production planning specify the sequence of the operations.
Routings also contain other production information such as where the work will be
performed, the time required to carry out the work, materials and equipment required
etc. Based on the type of work order, a special selection procedure is used to choose
the correct routing.

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