SAP PP is the largest functional module in SAP. This module chiefly deals with production method like capacity planning, master production scheduling, material requirement planning etc. The pp module of sap takes care of master knowledge needed like bill of materials.

Demand Management:

There’s a considerable number of planning strategies that are delivered with the SAP functionality, the demand management function allows a company to select requirement quantities & delivery dates for its products. Demand Management makes use of both planned requirements, from sales & operations planning (S&OP), & requirements from customers, for example planned sales orders. The demand management function provides inputs for the Material Requirement Planning (MRP) functionality. To utilize the functionality of demand management, the planning department will need to be definite that each of a company’s products is assigned a planning strategy. A planning strategy indicates how an item is manufactured or bought.

Material Requirement Planning:

The materials requirements planning (MRP) method takes inputs from the demand management function & calculates purchasing requirements to cover this demand. If the requirement is for a part to be manufactured in-house, MRP will generate a planned order which can be converted to a production order.

SAP PP module is tightly integrated with all the other modules in logistics. So the main advantage of PP is you can plan, control & monitor the whole production at any point of time.

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