1. PP Overview
What is SAP PP?
A core SAP ECC/S/4HANA module used for production planning, execution, material availability, capacity planning, and shop-floor control.
Key Submodules
- Demand Management (DM)
- Material Requirements Planning (MRP)
- Capacity Planning
- Production Orders
- Shop-Floor Execution
- Master Data Management
- KPI & Reporting
2. Core Master Data
1. Material Master (MM) – MRP Views
- MRP Type
- Lot Size
- Procurement Type (In-house/External)
- MRP Controller
- Safety Stock
- Strategy Group
2. Bill of Materials (BOM)
- Single-level / Multi-level
- Phantom items
- Alternative BOMs
- Usage: Production / Engineering / Sales
3. Work Center
- Activity Types
- Standard values
- Capacity category
- Cost center link
4. Routing / Recipe
- Sequence of operations
- Work center assignment
- Setup, processing, teardown times
- Production Resource Tools (PRTs)
5. Production Version
- Links BOM + Routing
- Mandatory in S/4HANA for MRP & orders
3. Demand Management (Strategies)
Make-to-Stock (MTS)
- Strategy 10 – MTS
- Strategy 11 – Planning w/o final assembly
- Strategy 40 – Planning with final assembly (most common)
Make-to-Order (MTO)
- Strategy 20 – MTO
- Strategy 50 – Planning with project
- Strategy 63 – Planning with customer-order stock
Planning Time Fence
- Makes MRP stable for near-term planning
- Changes restricted within the fence
4. Material Requirement Planning (MRP)
Key MRP Elements
- Planned Orders
- Purchase Requisitions
- Exception messages
- Scheduling (lead time, backward/forward)
MRP Run Types
- MD01 – Total planning
- MD02 – Single material
- MD03 – Single-item single-level
- MD04 – Stock/Requirements List
MRP Control Parameters
- MRP Group
- MRP Type (PD, VV, Reorder)
- Lot-sizing (EX, FX, HB, etc.)
- Availability Check (ATP)
5. Production Orders
Lifecycle
- Create (CO01)
- Release (status REL)
- Print (Shop floor papers)
- Issue components (MB1A / MIGO 261)
- Confirm operations (CO11N)
- Goods Receipt (MB31 / MIGO 101)
- Settlement (KO88)
Order Types
- PP01, PI01, etc.
- Custom order types allowed
Key Statuses
- CRTD
- REL
- CNF
- TECO
- DLV
- CLSD
Confirmations
- Partial/Final
- Automatic GR
- Backflush components
6. Capacity Planning
Capacity Categories
- Machine
- Labor
- Tools
Key Transactions
- CM01 / CM21 – Capacity planning
- CR11 – Create capacity
- CR02 – Change work center
Capacity Levelling
- Forward/Backward scheduling
- Finite/Infinite scheduling
7. Product Costing & Settlement
- Activity types linked to work centers → cost centers
- Routing times → planned activity costs
- Variance calculation (KKS1)
- Settlement (KO88)
8. Shop Floor Execution
Goods Issue (GI)
- Movement 261 – Issue to production
- Backflush vs. manual GI
Goods Receipt (GR)
- Movement 101 – Receipt of finished goods
- Auto GR allowed
WIP Calculation
- WIP based on partially confirmed orders
9. Integration Points
MM (Materials Management)
- Inventory, BOM components, reservations
SD (Sales & Distribution)
- MTO, planning strategies, availability check
FI/CO (Finance & Controlling)
- Order settlement, activity costs
QM (Quality Management)
- Inspection lots, in-process inspection
PM (Plant Maintenance)
- Work centers, capacity sharing
WM/EWM
- Staging of components, picking
10. S/4HANA Changes
Key Enhancements
- Mandatory production version
- MRP Live (HANA-based)
- Simplified BOM/Routing management
- Embedded PP/DS integration
- Fiori apps for order management
- Advanced ATP replaces old ATP (optional)
11. Critical Interview Questions
- Difference between MTS and MTO?
- What is a Production Version? Why required?
- What is planning strategy 40?
- Difference between Planned Order and Production Order?
- What are MRP exceptions?
- How does backflushing work?
- What is the role of Work Centers?
- Difference between Routing and Recipe?
- What happens during Production Order Release?
- Explain Capacity Levelling.
- What is MRP Live?
- Explain production order settlement.
- What is a Phantom Assembly?
- How does availability check work in PP?
- What is the meaning of TECO status?
12. Real-Time Scenarios
Scenario 1: Material Shortage
- Check MD04 → Missing parts → Run MRP → Trigger PR/PO → Order reschedule
Scenario 2: Order Delay
- Check capacity loads → Move order dates → Reassign work center
Scenario 3: Wrong component consumption
- Cancel GI → Re-post correct 261 → Recalculate variance
Scenario 4: MTO vs MTS requirement
- Change strategy group → Redefine PIR or Sales Order linkages
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