100 Most important SAP PP Interview Questions.

1. What is MTS and MTO and the difference between them?

2. Different types of consumption based planning.
3. What is MPS and difference between MRP and MPS?
4. Explain the Difference between the Discreet and REM.
5. Difference between PP and PI.
6. Explain PI sheet.
7. What is the Difference between TECO and CLSD?
8. What is Backflush, the places where the backflush is used?
9. What are the MRP master data?
10. What is MRP group?
11. What is MRP Area or How can I excluede one storage location stock from MRP?
12. What is MRP Profile and MRP Group?
13. When you run MRP, What steps it Perform in Back ground or How do you
schedule BG job for MRP
14. Which MRP types you have used?
15. What is Planning time Fence?
16. What is the difference between the fixing type 1, 2, 3, 4?
17. What is time phased Planning?
18. Difference between Manual reorder point and Automatic reorder point.
19. What are the lot size you have used?
20. In the monthly lot size proc, how to generate lot at the end of Period?
21. Different types of scrap or difference between types of scraps.
22. Special Procurement type 40 proc. form alt. plant
23. What is Phantom Assembly?
24. What is collective order. Pre requisite of the collective order?
25. What is Schedule Margin key. How floats works in scheduling?
26. What are the strategy groups you have used?
27. What is requirement class and requirement type?
28. What is the SPRO Path for requirement class and req. type?
29. Difference between different strategy groups.
30. What is Individual and collective requirements and differecne between them in
MTO scenario?
31. What is REM or What is REM profile
32. Have you used Pull list or back flushing in REM?
33. What is SOP and types of SOP?
34. Explain Flexible Planning procedure or How many levels of Flexible planning.
35. What is Material status and which view of the material master it is available?
36. What is Production scheduling Profile and use of it?
37. Difference between byproduct and co-product.
38. What are the Important tables in PP, QM?
39. Can we create a production order without BOM and Routing?
40. What is planned consumption and unplanned consumption?
41. What are the different type of BOM usage?
42. Which BOM item category you have used?
43. Difference between Item categories or what is variable size item or non stock
item.
44. What is alternate item group?
45. What is recursive BOM
46. What is alternative BOM, or diff between BOM group and Group BOM?
47. Difference between Routing, Ref op set, Rate routing and Ref rate routing.
48. Steps to configure Production order type.
49. What are the parameters are there in Order type or in dependent para. config?
50. Once the Production order is created, how to change the BOM and routing in that
order?
51. How do you do capacity planning ?
52. How do you carry out capacity leveling?
53. What do you mean by pooled capacity?
54. Can you dispatch capacity for a single work center?
55. What is finite scheduling?
56. How do you integrate HR (employee) with PP?
57. How can you create production order without routing and BoM?
58. Explain what is PRT how many types of PRT is used?
59. How to create PRT master record?
60. What is trigger Point. What are the setting required to trigger one action?
61. What are the levels of batch, explain batch determination process?
62. Question related to Production order status or status profile?
63. Explain LTP.
64. Integration between PP and SD module.
65. Integration between PP and PM module.
66. Integration between PP and QM Module.
67. Integration between PP and MM Module.
68. Explain Kanban.
69. Explain Planning file entry.
70. Difference between NETCH, NETPL and NEUPL.
71. Difference between MD01, MD02 and MD03.
72. What is scope of planning?
73. What do you do to run MRP for just one MRP Controller?
74. Explain customer Independent requirement .
75. What is the transaction code to run MRP for sales order?
76. What is the transaction code to execute forecast, and explain types of forecast
model?
77. What parameters you maintain in plant parameters in configuration?
78. SPRO path for order, confirmation or requirement class.
79. Difference between MD04 and MD05.
80. What are the key fields in MRP views?
81. What is Variant configuration?
82. Different types of Object Dependencies.
83. What is Auto GR?
84. Explain Availability check.
85. Explain different inspection type you used .
86. Explain In-process inspection.
87. Explain source inspection.
88. What is the use of QM control key?
89. What are the types of MIC?
90. What is the purpose of Catalog? how you reverse UD?
91. What is Inspection Points?
92. Explain DMR.
93. Difference between plan cost, Actual cost and target cost.
94. Difference between standard cost and variable cost.
95. What is primary cost and secondary cost?
96. How system calculate the actual cost?
97. What is activity type and how it works in costing?
98. Explain the process of Material costing.
99. Why and how you calculate WIP?
100. Explain transaction code KO88 or CO88.

Explain how the PP Module is Organized in SAP.

The PP module is made up of the following components:
PP-BD Basic Data
PP-SOP Sales and Operations Planning
PP-MP Master Planning
PP-CRP Capacity (Requirements) Planning
PP-MRP Material Requirements Planning
PP-SFC Production Orders
PP-KAN Kanban
PP-REM Repetitive Manufacturing
PP-PI Production Planning for Process Industries
PP-PDS Plant Data Collection
PP-IS Information Systems
Explain How PP is Integrated with Other Modules.
PP is one of the modules in SAP R/3 that is complex as the functions cut across many modules. The
following modules are tightly integrated with PP:
CO Controlling
FI Financial Accounting
MM Materials Management
SD Sales & Distribution
PS Project Systems
PD Personnel Planning and Development
What is a BOM?
A BOM (Bill of Material) is nothing but a structured list of components (with the object number,
quantity, and unit of measure) that go into the making of a product or an assembly. Depending on the
industry sector, they may also be called recipes or lists of ingredients. The structure of the product
determines whether the bill of material is simple or very complex.

What are the BOM Categories Supported by SAP?

The following are the various Categories of BOM:
Equipment BOM
Material BOM
Sales Order BOM
Document Structure
Functional Location BOM
WBS BOM
What are all the Technical Types of BOM?
There are two Technical Types of BOM supported in SAP:
Variant BOM
Material BOM
Differentiate Variant BOM from Multiple BOM.
While a Variant BOM groups together several BOMs that describe different objects (for example,
different models of a car) with a high proportion of identical parts, a Multiple BOM groups together
several BOMs that describe one object (for example, a product) with different combinations of
materials for different processing methods.
The Variant BOMs are supported for the following BOM categories:
Material BOMs
 Document structures
Equipment BOMs
Functional location BOMs
Multiple BOMs are only supported for Material BOMs.
Is it Possible to Convert a Multiple BOM into a Variant BOM?
No. You can only create a Variant BOM from a simple Material BOM. No multiple BOMs can exist for
a material.

What is a Work Center in PP?

A Work Center in PP (PP-BD-BOM) is an organizational unit that can be a combination of machines
or groups of craftsmen, people, and production lines, wherein certain operations are carried out to
produce some output. Each of the work centers is assigned to a cost center. A work center can be
assigned to a work center in SAP-HR, which will enable assignment of employees, qualifications, etc.

What is a Routing in PP?

A Routing in PP (PP-BD-RTG) is used to define the sequence of operations (work steps) and
resources required to perform certain operations in order to produce a material with or without
reference to an order. The standard values of planned time for the various operations need to be
entered into the routing.
There are two different types of routing:
Routing
Rate routing
(A similar concept exists in PS where you define a task list, which is similar to routing in PP.)

What are All the Sub-components of Production Orders?

The following are the Sub-components of Production Orders (PP-SFC):
Order Planning
Order Execution
Order Close
What is a Product Hierarchy?
Used in pricing, a Product Hierarchy is an alphanumeric character string consisting of a maximum of
18 characters. It thus defines the product and its composition.
Example:
A product hierarchy represented by 00050002000300040005. The first four characters 0005 could
indicate that the product is a car. The next four characters 0002 could indicate the plant in which the
car is manufactured. The third set of characters could indicate the color of the car. The next set may
determine its engine capacity and so on. Thus, the product hierarchy helps in defining the product
composition.

Define BOM Group.

A BOM Group is a collection of BOMs that lets you describe a product or a number of similar
products. The value in the BOM group field uniquely identifies the BOM group. You can use the BOM
group as an alternative way of accessing the BOM. A BOM group comprises either all the alternatives
of a multiple BOM or all the variants of a variant BOM.
When you create a BOM group, the system checks the special characters you use. Apart from the
usual alphanumeric characters, you can use the following special characters: -,/,_. You cannot use
blanks.

Define SOP (Sales & Operations Planning).

Suitable for long/medium-term planning, with an aim to streamline a companys Sales and
Operational Planning, SOP is a forecasting tool enabling you to set up sales, production, and other
supply chain targets based on existing, future, or historical data. SOP is most suitable for planning
finished goods, and not for material component planning.

SOP plans are passed on to Demand Management (DEM) in the form of independent requirements,
which in turn is fed into MPS (Master Production Scheduling) and MRP (Material Requirements
Planning). The results of SOP can be passed on to profitability analysis, cost center accounting, and
activity-based costing.

SOP contains two application components; namely, Standard SOP (PP-SOP) and Flexible Planning
(LO-LIS-PLN). The Standard SOP comes pre-configured with the system. Flexible planning can be
configured in a variety of ways.

What is known as Demand Management?

Demand Management (PP-MP-DEM) helps in determining the requirement quantities and delivery
dates for finished goods assemblies. It uses the planned independent requirements and customer
requirements (customer requirements come from sales orders). Planning strategies help in deciding
the kind of demand program. If production is triggered by sales orders, then it is known as Make-
toOrder production; if is not then it is known as Make-to-Stock production.

What is Capacity Planning?

Capacity Planning aims at economic use of resources. It is integrated with SD, PM, PS, and CS.
There are two components within capacity planning: Capacity evaluation and Capacity levelling.
Capacity planning supports short-term detailed planning, medium-term planning, and long-term
rough-cut planning.

Explain MRP (Material Requirements Planning).

MRP aims to guarantee material availability; it is used to procure/produce the required quantities on
time (both for internal purposes and for sales and distribution). This involves monitoring of stocks and,
in particular, the automatic creation of procurement proposals for purchasing and production. PP-
MRP assists and relieves MRP Controllers (who are responsible for all the activities from specifying
when, what, type, etc., of material requirements) in their area of responsibility. With the automatic
planning run in MRP, it is possible to determine any shortages so as to create procurement elements.
With the system generating messages for critical parts and unusual situations, you can rework the
planning results in the specific area with problems.

The material requirements can be planned at plant level or for different MRP areas. With MRP at the
plant level, the system adds together stocks from all of the individual storage locations, with the
exception of individual customer stocks, to determine total plant stock. In the case of material
requirements planning on an MRP area level, only the stocks from the storage locations or
subcontractor assigned to the respective MRP areas are taken into account.

What are the Three MRP Procedures?

Materials Requirements Planning (MRP)
Master Production Scheduling (MPS)
Consumption-based Planning
What is MPS (Master Production Scheduling)?
Executed as that of an MRP, MPS is nothing but a special form of MRP, which aims to reduce
storage costs and to increase planning stability. With MPS you can flag materials that greatly
influence company profits or take up critical resources as master schedule items and check and plan
them separately with a series of special tools.

What is Consumption-based Planning?

Using past consumption data, Consumption-based Planning aims at determining future
requirements. In the process, it makes use of material forecasts or any other static planning
procedures. The net requirements calculation is triggered when the stock level falls below a reorder
point. The net requirements can also be calculated by forecast requirements from a historical
consumption pattern