What is SAP Production Planning

SAP Production Planning (PP) is a module of Enterprise Resource Planning (ERP) systems from SAP. It provides production planning capabilities and tracks the production process from ordering raw materials to shipping the finished product. With SAP PP, companies can quickly identify and eliminate bottlenecks and production disruptions to improve productivity and results. The software can be used in many industries, from manufacturing to retail.

SAP PP enables companies to plan, control and monitor all components of production. This includes processes such as material requirements planning, order planning, capacity requirements planning, production planning, scheduling and cost control.

  • Material requirements planning:
    This process involves determining the material needed to produce a product or service. SAP Production Planning determines the required materials and the necessary quantity for production.
  • Order planning:
    When planning orders, SAP PP takes into account the number of orders needed for production, delivery times, the type of material and other relevant factors.
  • Capacity requirements planning:
    This function includes the planning of production capacities. SAP Production Planning determines which machines and resources are required for production, how many people need to be deployed and which production steps are necessary to achieve the production goal.
  • Production planning:
    This process involves planning the production steps required to produce a product or service. SAP PP takes into account the number of steps required, the type of material, the sequence of work steps and other factors.
  • Scheduling:
    The dates for the production of a product or service are planned here. SAP PP takes into account the delivery time, the time required for each production step and other factors.
  • Cost control:
    This operation refers to controlling the cost of producing a product or service. This includes monitoring the cost of materials, labor, machinery and other factors.


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SAP Wiki – SAP Production Planning