The SAP production order is the main central data object in shop floor control and manufacturing execution process. The production order contains every data relevant to the production objectives, material components, required resources, and costs. A normal production order will cover the demand for a single material or product, but you can also produce multiple products jointly in one production order (co-products) and distribute incurred costs between the different products. In a production order, you can also specify external operations that are to be processed in an outside workshop. If you need to carry out a rework, you can create a separate rework order that is directly assigned to the primary production order. Alternatively, you can insert specific rework operations into an existing order. SAP Production orders are usually created from planned orders. The complete process includes several steps:

• Creation and release of a production order
• Goods issues of components
• Confirmation of production activity
• Goods receipts of the finished good

Multiple forecasting models and strategies can help you in making the best choice. Models are selected by the system using the built-in intelligence, while continuing mySAP ERP checks the durability of the model. You can include the effects of events, such as marketing promotions and seasonal influences, with Forecasts. You can even override individual values of previous demands and Forecasts. Full integration within mySAP ERP makes periodic easier to forecast possible with ease. You can break down forecast demands from planning level of individual products. Rough-cut capacity planning level planning provides a reality check of resource bottlenecks. Forecasts are easily transferred to Demand Management and Master Production Scheduling (MPS), where they may be offset by incoming sales orders. You can also add unexpected demands anytime.

Planning process in SAP  is divided into several steps. These steps can be executed independent of each other, or they can collaborated in one.

Sales and Operations Planning
Sales and Operations Planning (SOP) develops sales plans and production of plans using forecast values and requirements from Sales Information System and costing / profitability analysis as inputs for determining requirements. These requirements are reflected in the system as planned amount of product within a given period, and are not required to create the basis for the requirements of the Customer.

Demand Management
Management on Demand forecasting, functionality is connected to the production scheduling. Requirement number and date for the finished products and assemblies based on plans from the SOP is determined.

Master Production Scheduling
Master Production Scheduling (MPS) allows for critical resources or top-level things planned with extra attention. The process ensures that the instabilities in planning are very minimal. MPS is an just an another optional step in the process of planning.

Material Requirements Planning
Material Requirements Planning (MRP) is the detailed planning of replenishment schedules for required elements. The output of MRP is either a planned order or a purchase request.

With support for all product strategy for companies in the discrete process and consumer products industry, SAP ERP helps companies manage full range of production activities, from planning and analysis for the execution in one end-to-end system. SAP ERP delivers all elements of customer-oriented production management system and is fully compatible with just-in-time (JIT) and Kanban methodology.

Combining information from different business processes (including planning, cost accounting, Human Capital Management, materials management, warehouse Management, plant maintenance and quality management), mySAP ERP supports the development and implementation of plans and ensure efficient production of accurate, comprehensive information available in any time, with those who need care. Company may share data through the production companies and the supply network to co-ordinate the production processes and promote cooperation. In addition, data from the plant process control and data collection systems can be included as well as improving decision-making, including the production of accurate data.

Production and Manufacturing in the SAP ERP, in cooperation with all other integrated SAP applications, not much more than just facilitate effective production. It establishes a connection between the critical sales, production planning, as well as the factory floor. SAP integrates the supply chain to make your company competitive as possible. On the seamless integration with external real-time process control and laboratory information systems. This represents significant progress for information systems in the production of repeated and industry. SAP offers a complete integration between its design, material requirements planning (MRP), shop floor control system and module. SAP standard interface connection to the external CAD, product data management, data collection and plant systems. Therefore, SAP ERP is a state-of-the-art production systems for discrete manufacturers and engineering in order to companies.

1. Master Data

Organizational Structures

• What are the various organizational structures in the R/3 System?
• Which R/3 organizational structures are used primarily for PP?
• What is the relation between controlling area, company code, valuation area, plant and storage location

Material Master

• What is the purpose of different material master views?
• Which views are available?
• Which views are used primarily for PP?
• What is the relationship between material master views and individual organizational structures?
• How does the industry sector influence the material master maintenance?
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