Module 10: Setup for PP (Production Planning)
Specify Plant Parameters for Material Management
To set up the SAP R/3 system for production, a number of plant parameters must be maintained.
The IMG has a master screen that organizes these maintenance tasks to help simplify this
complex task. The first step in this process is to create the plant parameters, then the parameters
can be maintained.
10.1 Create Plant Parameters for Material Management
To create the parameters for the Fitter Snacker manufacturing plant, follow the menu path:
Materials Management Consumption-Based Planning Plant Parameters
Carry Out Maintenance of Plant Parameters (click clock icon )
which will produce the following screen:
Click on the Create icon
Click on the create icon (
window:
) which will bring up the following pop-up
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Module 10: Setup for PP (Production Planning)
Enter ##PT then
click on the create icon
Enter ##PT for Plant and then click on the create icon (
following pop-up screen:
), which will bring up the
Click on the Create icon
Click on the create icon (
screen like this:
) again and you should get a message at the bottom of the
10.2 Maintain Number Ranges
With the plant parameters created we can now maintain them. To maintain the plant parameters,
click on the maintain icon (
):
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Module 10: Setup for PP (Production Planning)
Click on Maintain
When you click on Maintain, you should get the following pop-up window:
Enter ##PT then
click on Maintain
Enter ##PT for plant and then click on the maintain icon (
the following screen:
10 - 3
), which will bring up
Module 10: Setup for PP (Production Planning)
Click on number ranges
Click on Number ranges under Environment, which will produce the following screen:
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Module 10: Setup for PP (Production Planning)
Click on Planned orders
Click on Planned orders, which will bring up the following screen:
Enter 01 for NRge pl. orders
then click on the save icon
Enter 01 for NRge pl. orders (number range for planned orders) and click on the save icon ( ).
Click on the back icon ( ) to go to the Assign Number Ranges screen. Repeat the process,
assigning Number Range 01 to all of the following:
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Module 10: Setup for PP (Production Planning)




Reserv./depend. Reqmts
Purchase requisitions
MRP lists
Sim. Dependent reqmts
When you have completed assigning the number ranges, the Assign Number Ranges screen
should indicate that all number ranges have been maintained:
Click on the back icon (
) to return to the maintain plant parameters screen:
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Module 10: Setup for PP (Production Planning)
10.3 Maintain MRP Controllers
The MRP controller is responsible for the availability of materials for production. This person
ensures that the correct materials are procured at the correct time and in the correct quantity. To
define the MRP Controller, click on Click on the MRP controllers icon
(
):
Click on MRP controllers
Clicking on the MRP Controllers icon (
following screen:
) will produce the
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Module 10: Setup for PP (Production Planning)
Click on New entries
Click on the New entries icon (
), which will produce the following screen:
Enter ##PT for Plant
Enter 0## for MRP controller and
FS Controller for description
Click on the save icon, then the exit icon
Enter ##PT for Plant, 0## for MRP controller and FS Controller for description, then click on
save icon ( ) and then the exit icon ( ) to return to the Maintain Plant Parameters screen.
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Module 10: Setup for PP (Production Planning)
10.4 Maintain Floats
Floats are time periods added to the planned lead time for a material to account for uncertainties.
In essence, they “pad” the lead time used in MRP. Different sets of floats can be defined for
different situations. These floats are stored as schedule margin keys. To create a schedule
margin key, click on the Floats icon (
):
Click on the Floats icon
Clicking on the Floats icon (
screen:
), will produce the following
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Module 10: Setup for PP (Production Planning)
Click on the New entries icon
Click on the New entries icon (
), which will produce the following screen:
Enter ##PT for Plant, 001 for Schedule Margin Key (SMK)
Enter 1 for all other values
In this screen we define the Schedule Margin Key, which specifies how much float time to allow
for in production orders. We will define Schedule Margin Key 001 for plant ##PT by entering
the following information:
Plnt:
##PT
SMK:
001
Op. Pd:
1
FlBefProd:
1
Fl.afterPr:
1
ReleasPr:
1
Click on the save icon (
IMG.
(Workdays prior to order start)
(Workdays between order start and scheduled start)
(Workdays between order due date and scheduled finish date)
(Workdays in release period)
) and then the exit icon (
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) three times to return to the SAP Reference
Module 10: Setup for PP (Production Planning)
10.5 Activate MRP
To run MRP (Material Requirements Planning), you need to specify which plants will be using
MRP. To do this, following the menu path:
Materials Management Consumption-Based Planning Planning Activate
Material Requirements Planning (click clock icon )
Which will produce the following screen:
Click on Material requirements planning
Click on the Material requirements planning icon (
will produce the following screen:
), which
Check Activate requirements
planning next to your Plant,
then click on the save icon
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Module 10: Setup for PP (Production Planning)
Place a check mark next to your plant, click on the save icon (
twice to return to the SAP Reference IMG.
) and then the exit icon (
)
10.6 Create Production Scheduling Profile
We need to create a production scheduling profile for the Fitter Snacker plant. The profile
determines how production scheduling is to be carried out in the plant. We will be specifying
that production orders are released for production once they are created, and that once orders are
released they are scheduled for production. To do this, follow the menu path:
Production Shop Floor Control Master data Define production scheduling
profile (click clock icon )
Which will produce the following screen:
Click on New entries
Click on the New entries icon (
), which will produce the following screen:
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Module 10: Setup for PP (Production Planning)
Enter ##PT for Plant
10 and Release & Schedule for Prod. sched. profile
Check Release for On Creation
Check Schedule order for On Release
Then click on Save
Enter the following information:
Plant:
Prod. sched. Profile:
Automatic actions
On Creation:
On Release:
Click on the save icon (
##PT
10 and Release & Schedule
Release checked
Schedule order checked
) and then the exit icon (
) once to return to the SAP Reference IMG.
10.7 Create Production Scheduler
To schedule production, we need to create a production scheduler. The definition of a
production scheduler allows for more control over the manufacturing process. In this step, you
will create a production scheduler (you) and assign the profile created in the previous step. To
do this, follow the menu path:
Production Shop Floor Control Master data Define production scheduler
(click clock icon )
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Module 10: Setup for PP (Production Planning)
Which will produce the following screen:
Click on New entries
Click on the New entries icon (
), which will produce the following screen:
Enter ##PT for Plant, ##S for ProdSched., your name, 10 for ProdProf
(created in the previous exercise), then click on the save icon
Enter the following information:
Plnt:
ProdSched:
Production scheduler:
ProdProf:
Click on the save icon (
IMG.
##PT
##S
Your name
10 (created in the previous exercise)
) and then the exit icon (
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) twice to return to the SAP Reference
Module 10: Setup for PP (Production Planning)
10.8 Control Parameters for MRP
Control parameters for MRP tell the system the rules to use in MRP calculations. To set up these
rules, follow the menu path:
Production Material Requirements Planning Plant Parameters Carry Out
Overall Maintenance of Plant Parameters (click clock icon )
Which will produce the following screen (which we’ve seen before):
Click on Maintain
When you click on Maintain, you should get the following pop-up window:
Enter ##PT then
click on Maintain
Enter ##PT for plant and then click on the maintain icon (
bring up the following screen:
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), which will
Module 10: Setup for PP (Production Planning)
Click on Conversion under
Maintained Planned Orders
Under Planned orders, click on the Conversion icon (
will bring up the following screen:
Click on Planned order -> production order
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), which
Module 10: Setup for PP (Production Planning)
which will bring up the following screen:
Enter PP01 (PP zero one), then click on the save icon
we will enter standard order type PP01 (PP zero one) for production orders, then click on the
save icon ( ) and then the exit icon ( ) twice to return to the Maintain Plant Parameters
screen.
10.9 Define Dependent Requirement Availability Checking Rule
When the MRP system creates a planned order, it can also check whether the components and
sub-assemblies required to complete the planned order will be available. To specify the
checking rule, click on the Dep. reqmt availability icon (
).
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Module 10: Setup for PP (Production Planning)
Click on Dep. reqmt availability
Clicking on the Dep. reqmt availability icon (
the following screen:
10 - 18
) will produce
Module 10: Setup for PP (Production Planning)
Find your plant, scroll over and enter
PP then click on the save icon
Find your plant, scroll over and enter checking rule PP, then click on the save icon (
the exit icon ( ) to return to the Maintain Plant Parameters screen:
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) and then
Module 10: Setup for PP (Production Planning)
10.10 Set Reporting Frequency for Run Time Statistics
Click on the Reporting icon
Click on the Reporting icon (
appear:
) and the following screen will
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Module 10: Setup for PP (Production Planning)
Click on Run-time statistics
Click on the Run-time statistics icon (
following screen:
), which will produce the
Find your plant, check Display list and enter 1 for Frequency
Find your plant, make sure Display list is checked and enter 1 for the Frequency. Click on the
save icon ( ) and then the exit icon ( ) to return to the Maintain Plant Parameters screen.
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Module 10: Setup for PP (Production Planning)
10.11 Set BOM and Routing Selection ID
The SAP R/3 system allows for a number of ways to select the BOM and Routing for a
component. This may be based on a number of criteria, like production order size. To set the
selection procedure for the BOM and Routing, click on the BOM/routing selection icon
(
) under Planning run.
Click on BOM/Routing Selection
icon
Clicking on the BOM/routing Selection icon (
produce the following screen:
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) should
Module 10: Setup for PP (Production Planning)
Find your manufacturing plant, then enter 01 for BOM select.ID and Rtg select ID
Find your plant, then enter 01 for BOM select.ID and Rtg select ID. Click on the save icon (
which will produce the following message:
),
This message tells you that you can set the Routing selection ID at different levels and in
different places. Click the enter icon ( ) to confirm that we want to save it here, and then click
then the exit icon ( ) to return to the Maintain Plant Parameters screen.
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Module 10: Setup for PP (Production Planning)
10.12 Set Default Values for External Procurement
To set the External procurement parameters, click on the External procurement icon
(
).
Click on the External Procurement icon
which will produce the following screen:
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Module 10: Setup for PP (Production Planning)
Check Scheduling info records/agreem.
Enter 3 for Schedule lines
Enter U for Account assignment unknown
In the Plant parameters area, Check Scheduling info records/agreem. under Determining the
planned delivery time, enter 3 for Schedule lines under Creation of delivery schedules and enter
U for Account assignment unknown under Account assig. of non-valuated material. With the
data entered, click on the save icon ( ) and then the exit icon ( ) to return to the Maintain
Plant Parameters screen:
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Module 10: Setup for PP (Production Planning)
10.13 Set Planning Horizon
To set the length of the planning horizon, click on the Planning horizon icon
(
).
Click on Planning horizon
Click on the Planning horizon icon to bring up the following screen:
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Module 10: Setup for PP (Production Planning)
Find your plant and enter 30 for the Planning horizon
Enter 30 for the planning horizon for your plant, then click on the save icon (
exit icon ( ) three times to return to the SAP Reference IMG.
) and then the
10.14 Assign Availability Check to Order Type
In this exercise, you specify the circumstances under which the system checks for available
inventory. As we are not creating an actual production system, we will request no checking for
all categories so that they configured system will have the best chance of working correctly when
tested. In practice, material checking can be very helpful in preventing the release of production
orders when there is insufficient material available to complete the order.
To assign the availability checks, follow the menu path:
Production Shop Floor Control Operations Availability Check Define
Checking Control (Click clock icon )
which will produce the following screen:
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Module 10: Setup for PP (Production Planning)
Select the following two items:
Plant Description Type Business function
0001 Werk 0001 PP01
1
0001 Werk 0001 PP01
2
Then click on the copy icon
Select the items:
Plant Description
0001 Werk 0001
0001 Werk 0001
Then click on the copy icon (
1:
Type Business function
PP01
1
PP01
2
), which will produce the following screen for Availability Check
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Module 10: Setup for PP (Production Planning)
Change to plant ##PT
Make sure No checking is selected everywhere
Then click on the enter icon
Change to plant ##PT, make sure No checking is selected everywhere and then click on the
enter icon ( ) which will produce the following screen for Availability Check 2:
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Module 10: Setup for PP (Production Planning)
Change to plant ##PT
Make sure No checking is selected everywhere
Then click on the enter icon
Change to plant ##PT, make sure No checking is selected everywhere and then click on the
enter icon ( ) which will produce the following screen:
Click on the save icon
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Module 10: Setup for PP (Production Planning)
Click on the save icon (
) and then the exit icon (
) to return to the SAP Reference IMG.
10.15 Define Scheduling Parameters for Production Orders
To define the scheduling parameters for production orders, follow the menu path:
Production Shop Floor Control Operations Scheduling Define Scheduling
Parameters for Production Orders (Click clock icon )
which will produce the following screen:
Click on New entries
Click on the New entries icon (
), which will produce the following screen:
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Module 10: Setup for PP (Production Planning)
Enter ##PT for Plant
PP01 for Order type
##S for ProdScheduler
Select Backwards
Check Automatic scheduling
Enter ##PT for Plant, PP01 for Order type and ##S for ProdScheduler. Under Scheduling
control for detailed scheduling, select Backwards for Scheduling type and check Automatic
scheduling.
Click on the save icon (
) and then the exit icon (
10 - 32
) to return to the SAP Reference IMG.
Module 10: Setup for PP (Production Planning)
10.16 Define Order Type-dependent Parameters
To define the scheduling parameters for production orders, follow the menu path:
Production Shop Floor Control Master Data Order Define order typedependent parameters (Click clock icon )
which will produce the following screen:
Click on the New entries icon
Click on the New entries icon (
), which will produce the following screen:
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Module 10: Setup for PP (Production Planning)
Enter ##PT for Plant
Enter PP01 for Order type
Enter 6 for Routing selection
Enter PP01 for BOM application
Then click on the Controlling tab
Enter the following information:
Plant:
Order type:
Routing selection:
BOM application:
##PT
PP01
6
PP01
Then click on the Controlling tab:
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Module 10: Setup for PP (Production Planning)
Enter PPP1 and PPP2 for Cstg variants
Enter:
Cstg variant planned: PPP1
Cstg variant actual: PPP2
Then click on the save icon (
) and then the exit icon (
) to return to the SAP Reference IMG.
10.17 Define Confirmation Parameters
To define the confirmation parameters, follow the menu path:
Production Shop Floor Control Operations Confirmation Define
Confirmation Parameters (Click clock icon )
which will produce the following screen:
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Module 10: Setup for PP (Production Planning)
Click on New entries
Click on the New entries icon (
), which will produce the following screen:
Enter ##PT and PP01, then
click on the General individual entry tab and
Select Final confirmation and
Check Post open reservations
Enter ##PT and PP01, then click on the General individual entry tab, select Final
confirmation and check Post open reservations.
Click on the save icon (
) and then the exit icon (
10 - 36
) to return to the SAP Reference IMG.
Module 10: Setup for PP (Production Planning)
10.18 Define Valuation of Goods Received from Production
Next, we need to define how the SAP system will define the value of goods received from
production. To do this, follow the menu path:
Production Shop Floor Control Integration Define Valuation of Goods
Received (Click clock icon )
which will produce the following screen:
Click on New entries
Click on the New entries icon (
), which will produce the following screen:
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Module 10: Setup for PP (Production Planning)
Enter ##PT for ValA and 007 for VVt
Click on the enter icon then
Click on the save icon
Enter ##PT for ValA and 007 for VVt, (Production Order – Actual), then click on the enter icon
( ), then click on the save icon ( ), then the exit icon ( ) to return to the SAP Reference
IMG.
10.19 Define MRP Views for Raw Materials
For each of our materials, we have to define the MRP views in the Material Master data before
we can perform MRP calculations. Note: This can be confusing. In SAP, we CREATE these
views, which means we extend the data for the materials we have already defined. We do
NOT create new materials, even though we use the create function.
To define the MRP Views for the raw materials, click on the exit icon (
the SAP Easy Access screen, then follow the menu path:
) until you are back at
Logistics Production Master Data Material Master Material Create
(Special) Raw Material
which will produce the following screen:
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Module 10: Setup for PP (Production Planning)
Enter ##R300 for your first material (canola)
Select Retail for industry sector
Click on the Select view(s) icon
Enter ##R300 for your first raw material (Canola), select Retail for Industry sector, then click on
the Select view(s) icon (
). Click on the Deselect all icon ( ), then select the MRP1,
MRP2, and MRP3 views. Click on the save default values icon (
), then click
on the enter icon ( ).
Click on the deselect icon to clear all entries, then
select the MRP 1, MRP 2 and MRP 3 views
Click on the save default values icon,
then click on the enter icon
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Module 10: Setup for PP (Production Planning)
After selecting the MRP 1, MRP 2 and MRP 3 views and clicking on the enter icon (
following screen will appear:
), the
Enter ##PT for Plant,
Click on the save default values icon
Leave Stor. location blank,
then click on the enter icon
Enter ##PT, leave Stor. location blank, click on the save default values icon
(
), then click on the enter icon ( ), which will produce the following screen:
Enter PD for MRP type
Enter FX for Lot size
Enter 500 for Fixed lot size
Enter 0## for MRP controller
Then click on the MRP 2 tab
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Module 10: Setup for PP (Production Planning)
Enter Enter PD for MRP type, FX for Lot size, 500 for Fixed lot size and 0## for MRP
controller. Click on the MRP 2 tab to produce the following screen:
Enter 001 for SchedMargin key
Enter 3 for Plnd delivery time
Then click on the MRP 3 tab
Enter 001 for SchedMargin key and 3 for Plnd delivery time, then click on the MRP 3 tab:
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Module 10: Setup for PP (Production Planning)
Enter 40 for Strategy group,
02 for Availability check, then
click on the save icon
Enter 40 for Strategy group, 02 for Availability check and, then click on the save icon (
Repeat this process for the remaining raw materials:
10 - 42
).
Module 10: Setup for PP (Production Planning)
MRP 1
MRP Type:
MRP Controller:
Lot size:
Fixed lot size
PD
0##
FX
See table
MRP 2
SchedMargin Key:
Plnd delivery time:
001
See table
MRP 3
Strategy group
Availability check:
40
02
MRP 1 Tab
Material No.
Material
##R310
##R320
##R330
##R340
##R350
##R360
##R370
##R380
##R390
##R400
##R410
##R420
## Carob Chips
## Cinnamon
## Cloves
## Dates
## Hazelnuts
## Honey
## Nutmeg
## Oats
## Protein Powder
## Raisins
## Vit/Min Powder
## Wheat Germ
Lot Size
FX
FX
FX
FX
FX
FX
FX
FX
FX
FX
FX
FX
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Fixed Lot
Size
1000
100
100
100
100
500
100
44000
2000
1000
100
2000
MRP 2 Tab
Plnd Delivery
Time
3
3
3
3
3
3
3
10
3
3
3
5
Module 10: Setup for PP (Production Planning)
10.20 Define MRP and Work Scheduling Views for Finished Goods
For the two finished products, we need to create MRP views as well as a work scheduling view.
To do this, follow the menu path:
Logistics Production Master Data Material Master Material Create
(Special) Finished Product
which will produce the following screen:
Enter ##F100 for ## NRG-A bars
Select Retail for industry sector, then
Click on the Select view(s) icon
Enter ##F100 for ## NRG-A bars, then select Retail for Industry sector, then click on the Select
view(s) icon (
), which will produce the following screen:
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Module 10: Setup for PP (Production Planning)
Select MRP 1, MRP 2 and MRP 3
and Work Scheduling views
then click on the enter icon
Select the views MRP 1, MRP 2, MRP 3 and Work Scheduling, then click on the enter icon
( ), which will produce the following screen:
Enter ##PT for Plant
Leave Stor. location blank,
then click on the enter icon
Enter ##PT, leave Stor. location blank, then click on the enter icon (
following screen:
10 - 45
), which will produce the
Module 10: Setup for PP (Production Planning)
Enter PD for MRP type
Enter FX for Lot size
Enter 7 for Fixed lot size
Enter 0## for MRP controller,
Then click on the MRP 2 tab
Enter PD for MRP type, FX for Lot size, 7 for Fixed lot size and 0## for MRP controller. Click
on the MRP 2 tab to produce the following screen:
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Module 10: Setup for PP (Production Planning)
Enter 1 for In-house production
Enter 001 for SchedMargin key
Then click on the MRP 3 tab
Enter 1 for In-house production and 001 for SchedMargin key , then click on the MRP 3 tab:
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Module 10: Setup for PP (Production Planning)
Enter 40 for Strategy group
Enter 02 for Availability check,
3 for Tot. repl. lead time, then
click on the Work scheduling tab
Enter 40 for Strategy group, 02 for Availability check and 3 for Tot. repl. lead time, then click on
the Work scheduling tab:
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Module 10: Setup for PP (Production Planning)
Enter ##S for Production scheduler and
10 for Prod. sched. Profile, then
click on the save icon
Enter ##S for Production scheduler and 10 for Prod. sched. Profile, then click on the save icon
( ).
Repeat this process for the ##F110, the NRG-B snack bars.
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Module 10: Setup for PP (Production Planning)
10.21 Simple MRP Test
We can perform a basic test of the MRP configuration by performing the MRP calculations for
one finished product only. To do this, follow the menu path:
Logistics Production MRP Planning Single-Item, Single-Level Planning
which will produce the following screen:
Enter ##F100 for material
Enter Plant ##PT
Then confirm the parameters as shown and
Make sure Display results before they are saved
is checked.
Enter ##F100 for material, enter Plant ##PT and confirm the parameters are entered as shown
above. Also, make sure Display results before they are saved is checked so you can view the
results. Click the enter icon ( ) and the following warning will appear:
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Module 10: Setup for PP (Production Planning)
Because a real MRP run for a firm with thousands of materials may take a significant amount of
time, the SAP system wants to make sure you are ready for the MRP run. Click the enter icon
( ) a second time and the following screen will appear:
This screen shows that there are no materials in stock and, as there is currently no demand for the
product, the MRP calculation has not created any planned orders. Click on the exit icon ( ) and
click on Yes when asked whether you want to save the planning values:
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