Topic Covered -

1. SAP S/4 Hana PP Workshop
2. SAP Business Process Learning Framework
3. SAP PIR Creation and Planning
4. MRP Live vs Classic MRP
5. Production Order Management Demonstration
6. Production Order Release Process
7. Types of Reservations in SAP
8. Production Order Confirmation Process
9. IBP vs PP Career Advice

SAP S/4 Hana PP Workshop

Parminder began the session by introducing the SAP S/4 Hana Production Mastery series, which follows two previous workshops covering SAP basics and navigation. He explained that today's session would focus on the end-to-end PP (Production Planning) process, which participants would execute in the SAP S/4 Hana system using provided data. Parminder emphasized the importance of following the sequence of learning materials and offered a prerequisite course for those who missed the previous workshops.

SAP Business Process Learning Framework

Parminder discussed the importance of understanding business processes and executing them in SAP, emphasizing the need to learn master data and configurations. He outlined a four-step approach to learning: understanding the business process, executing it in the system, creating master data, and configuring the process. Parminder explained that the plan-to-produce process starts with forecasting demand based on past sales history and market data, which is crucial for sales and operations planning. He encouraged participants to engage by answering questions in the chat and mentioned that career-related queries would be addressed at the end of the session.

SAP PIR Creation and Planning

Parminder discussed the process of creating plant-independent requirements (PIR) in SAP S/4HANA using transaction code MD61. He explained that demand can be uploaded to forecast future production needs, and the system will calculate any shortfalls. Parminder also mentioned that in some cases, businesses might not need to upload demand if they produce based on customer orders or use third-party planning tools. He demonstrated how to use transaction code MD04 to check material stock situations and MD61 to create PIRs. The session included a discussion on how the system handles shortfalls, with Parminder explaining that it depends on the procurement type in the material master data. He also mentioned that the next step would be to run an MRP (Material Requirements Planning) run using transaction code MD01N.

MRP Live vs Classic MRP

Parminder explained the nature of stock transfer orders, production orders, and purchase orders as both demand and supply elements depending on the plant context. They discussed the differences between classic MRP and MRP Live, highlighting that MRP Live runs on the HANA database and can be executed anytime, unlike classic MRP which runs on the application layer and is limited to night jobs. Parminder also covered the distinction between production and process orders, noting that while most concepts are common between discrete and process industries, some transaction codes differ. The session concluded with an overview of how to execute the MRP Live screen, including the setup of plant and material data.

Production Order Management Demonstration

Parminder demonstrated the process of creating and managing production orders in the system. He explained how planned orders are generated through MRP and the steps to convert them into production orders. He showed how to check material availability, release dates, and operations associated with a production order. Parminder also discussed the concept of backflushing and how it can be configured in the system.

Production Order Release Process

Parminder demonstrated how to check material availability in the system and showed how to upload stock for testing purposes. He explained the process of releasing a production order, which signals that the required capacity and materials are available for production. Parminder emphasized that planners should release 2-4 weeks of production orders in advance, allowing production engineers to check and release them within 2-4 days, so supervisors can execute the orders on time.

Types of Reservations in SAP

Parminder explained the different types of reservations in the system, distinguishing between soft and hard reservations. He clarified that a soft reservation is automatically generated when a production order is created and serves as a requirement number for raw materials, while a hard reservation is created manually using transaction code MB21 to transfer materials from the store to the production storage location. Parminder also described the process of creating a reservation, including entering material details and specifying the required storage locations, and explained how the store team handles the transfer of stock against the reservation.

Production Order Confirmation Process

Parminder explained the process of production order confirmation, including the three types of confirmations: activity confirmation, goods issue, and goods receipt, which are not mandatory but can be combined based on business requirements. He demonstrated how to perform these transactions in the system, highlighting the concept of backflushing and its application in repetitive manufacturing. Parminder emphasized the importance of understanding business processes to determine when to use manual goods issue versus automatic backflushing. He also discussed the need for technical completion (TECO) to close open reservations and the role of the finance team in settlements and order closures. The session concluded with an assignment for participants to complete the process using a provided material and plant, create a document, and prepare a PowerPoint presentation, which can be shared on LinkedIn to increase visibility.

IBP vs PP Career Advice

Vidhu sought advice on whether to pursue a Junior IBP or PP consultant role, given she had 2 years of production planning experience and a job offer for the former. Parminder advised choosing IBP due to higher demand and future earning potential, though noted it would be more challenging than PP, which would be easier given her prior end-user experience. They discussed the availability of instructor-led IBP courses, with the next batch starting in June, and agreed that pre-reading course materials before live sessions would be beneficial. Parminder also recommended adding PP skills to her profile for market stability, while advising against pursuing BTP at this time as it was too niche.