Back to glossary
    SAP

    SAP PP (Production Planning)

    The SAP module for production orders, MRP, capacity planning and BOM management.

    Detailed definition

    SAP PP (Production Planning) is the SAP module that plans and executes manufacturing. Its scope covers demand management, material requirements planning (MRP), releasing and confirming production orders, capacity planning and production feedback. Core master data are the bill of materials (BOM), routings and work centers, which define which material is produced, through which steps and where. PP integrates tightly with MM for material supply, QM for quality control and CO for cost collection. It supports discrete, process and repetitive manufacturing scenarios. Configured correctly, it reduces the gap between planned and actual production, prevents material shortages and ensures production costs are calculated accurately. Related terms: MRP, SAP MM, SAP QM, ERP.