01_13-09-25_PP_Mastering SAP S/4HANA Production Planning: From Forecast to Factory Floor

SAP PP Training Overview

Parminder conducted a training session on SAP PP production planning, explaining the structure of the training program and emphasizing the importance of understanding business processes before learning transaction processes and master data. He outlined the plan to cover the end-to-end P2P cycle, including business process details, transaction processing, and master data setup, with Faisal conducting the next session. Parminder encouraged participants to actively engage through chat and mentioned that the session would focus on the plant-to-produce process, starting with understanding its basic components.

Plant-to-Production Forecasting Process

Parminder discussed the plant-to-produce process, focusing on the make-to-stock scenario. He explained that the process starts with demand forecasting, which is crucial for businesses like pharmaceuticals and FMCG. Parminder mentioned various tools used for forecasting, including APO, IBP, and O9. He also covered how the forecast is converted into a planned independent requirement (PIR) in SAP. The next step after forecasting is material requirement planning (MRP), which ensures the right material is available at the right time and place. Parminder mentioned that MRP can be run manually or scheduled to run in the background.

MRP Process and Business Understanding

Parminder explained the MRP (Material Requirements Planning) process, covering demand and supply elements, planned orders, production orders, and material availability checks. He emphasized the importance of understanding business processes for SAP functional consultants, as this knowledge helps in asking the right questions, gathering accurate requirements, and providing correct solutions. Parminder also stressed the need for consultants to continuously learn about different manufacturing processes and industries to better serve clients.

Production Order Release Process Overview

Parminder explained the production order release process and its significance in triggering the start of production. He discussed the different methods of goods issue and goods receipt, including automatic and manual processes, and emphasized the importance of accurate material consumption tracking. Parminder also covered the concept of activity confirmation, which includes tracking man-hours, machine hours, and other production-related activities. Finally, he explained the process of changing the production order status to technical completion (TECO) and the subsequent steps involved in completing the order, including settlement and final completion by the finance and controlling department.

SAP Goods Issue and Receipt

Parminder explained the process of goods issue (GI) and goods receipt (GR) in the SAP system, including how automatic confirmations work and the handling of errors through the COGI (Confirmation of Goods Issue) process. He clarified that if a GR is done without a GI, the stock remains in MMBE and the finished goods stock increases, while the raw material stock is not reduced. Parminder emphasized the importance of monitoring COGI errors daily and resolving them to ensure accurate stock movements.

Vanilla Process Training Overview

Parminder conducted a training session on the vanilla process in the system, focusing on material management and production orders. He explained the importance of understanding each field and tab, emphasizing that participants would learn new functions and features over the next two months. Parminder demonstrated how to run MRP and MPS, differentiate between MRP and MPS materials, and create planned and production orders. He stressed the need to work with single materials to avoid stock issues and encouraged participants to practice creating their own materials, BOMs, and routings in future sessions.

Backflush and Stock Management

Parminder explained the concept of backflush, which involves automatic consumption of components and simultaneous goods issue to a production order when confirmed. He demonstrated how to check stock levels using transactions MMBE and MB52, and showed how to upload stock manually for testing purposes using the OMIGO transaction with movement type 561. Parminder emphasized that these stock upload procedures are only used for testing and not in regular operations, where the full procurement cycle would be followed.

SAP Production Order Training Session

Parminder conducted a training session on production order processing in SAP, demonstrating key transactions and explaining concepts like movement types, backflushing, and goods receipt. They showed how to create, confirm, and complete a production order, including handling goods issue and receipt. Parminder emphasized the importance of creating a clean presentation document using provided templates and encouraged participants to share their work on LinkedIn to build their professional network. The session concluded with an assignment being shared via Telegram for participants to complete, and information about the schedule for upcoming sessions with Faisal.

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