What is SAP PP?

Answer: SAP PP (Production Planning) is a module in SAP ERP that deals with planning and managing
manufacturing processes.

Explain the key components of SAP PP.

Answer: The key components include Demand Management, Material Requirements Planning
(MRP), Production Orders, and Shop Floor Control.

What is Material Requirements Planning (MRP) in SAP PP?

Answer: MRP is a planning tool in SAP PP that helps organizations manage the procurement and
production of materials based on demand.

Define Bill of Materials (BOM) in SAP PP.

Answer: A BOM is a structured list of components needed to produce a finished product, including
materials, assemblies, and sub-assemblies.

What is a Routing in SAP PP?

Answer: A routing defines the sequence of operations and work centers required to produce a
finished product.

Explain Production Planning with Variant Configuration in SAP PP.

Answer: Variant Configuration allows for the production of multiple variants of a product with
different characteristics using a single material code.

What is Capacity Planning in SAP PP?

Answer: Capacity Planning in SAP PP involves determining the production capacity required to meet
demand and optimizing the utilization of resources.

How does SAP PP integrate with other SAP modules?

Answer: SAP PP integrates with modules such as MM (Materials Management) and SD (Sales and
Distribution) to ensure a seamless flow of information across the supply chain.

What is the significance of Work Centers in SAP PP?

Answer: Work Centers represent the physical locations where production operations are carried out,
and they play a crucial role in capacity planning and scheduling.

Explain the difference between Planned Order and Production Order in SAP PP.

Answer: A Planned Order is a proposal for production based on future demand, while a Production
Order is a formal request to produce a specific quantity of a product.

What is Backflushing in SAP PP?

Answer: Backflushing is a process in SAP PP where the system automatically issues components from
stock when a production order is confirmed.

How does SAP PP handle repetitive manufacturing?

Answer: SAP PP supports repetitive manufacturing by allowing the production of the same product
in large quantities with minimal changes in the production process.

What is the purpose of Long-Term Planning in SAP PP?

Answer: Long-Term Planning in SAP PP is used for strategic planning to ensure that the organization
has the capacity and resources to meet future demand.

Explain the concept of Just-In-Time (JIT) production in SAP PP.

Answer: JIT production aims to produce goods at the exact time they are needed, minimizing
inventory and storage costs.

What is the role of the Master Production Schedule (MPS) in SAP PP?

Answer: The MPS is a detailed plan that specifies the quantity and timing of production to meet
customer demand while considering resource constraints.

How does SAP PP support Make-to-Order (MTO) production?

Answer: MTO production in SAP PP involves creating a production order based on a specific
customer order, allowing for customization of products.

What is the purpose of Capacity Overload in SAP PP?

Answer: Capacity Overload in SAP PP alerts planners when there is an excessive demand for a
specific work center, helping to avoid production delays.
Explain the significance of Scrap in SAP PP.

Answer: Scrap in SAP PP refers to the unusable or waste material generated during the production
process, and it is accounted for to ensure accurate costing.

How does SAP PP handle Batch Management?

Answer: Batch Management in SAP PP allows for the identification and tracking of batches of
materials, ensuring traceability and quality control.

What are the key steps in the Production Execution process in SAP PP?

Answer: The production execution process involves creating production orders, releasing them for
production, confirming operations, and recording goods movements. The steps may vary based on
organizational requirements.