SAP Production Order Processing Guide

What is SAP Production Order Processing?

SAP Production Order Processing is a key component of manufacturing in the SAP ERP system. The SAP PP module is designed to streamline production processes by helping businesses efficiently manage their production processes, including planning, scheduling, executing, and monitoring production orders.

How It Works

SAP Production Order Processing in the PP module includes several key steps:

1. Production order is created, either manually or automatically through Material Requirements Planning (MRP).
2. Production order is released before actual production to get approval and check for material availability.
3. Material is withdrawn from inventory after release to collect all required items for production.
4. Production execution takes place in which the project is manufactured using machinery, labor, and other resources.
5. Goods receipt occurs after completion of production to be received in inventory as a finished product. A quality inspection may also take place.
6. Order settlement is the final step in which the costs of production are settled—a crucial step for cost control.

Understanding SAP Production Order Processing

Definition and Core Features

With SAP Production Order Processing, users can facilitate the planning and execution of manufacturing processes, covering everything from order creation to final account settlement.

Commonly used features include production order creation, BOM (Bill of Materials) management, and work center scheduling.

Manufacturing processes may be customized to fit specific manufacturing requirements. Specific user roles can also be tailored to align with unique manufacturing and security requirements.

A dashboard interface displays sections relevant to production orders, like order management, material planning, and production scheduling.

Integration with Other SAP Modules

Production order processing in SAP within the Production Planning (PP) module often requires close integration with other supply chain-related modules, such as:

• Material Management (MM)
• Sales and Distribution (SD)
• Plant Maintenance (PM)
• Controlling (CO)

Connecting these modules to production order processes can enable end-to-end oversight and control of supply chain processes, from receipt of raw materials to delivery of finished goods.

Mobile Inventory Applications for SAP Production Order Processing

RFgen for SAP includes mobile applications for many transactions in its SAP Production Order Processing Suite, providing mobile automation for processing production orders, issuing materials, and tracking component scrap.

Production Orders

With these capabilities, users can complete production orders or production order stages and confirm completion of orders.

Issuing Materials

Materials can be issued to a production order with automatic deduction from quantities of source items.

Inquiries

Users can look up production orders and materials assigned to those production orders right from a mobile device.

Scrap Tracking

This functionality automates the conversion of consumed components into scrap.

Best Practices for SAP Production Order Processing

In addition to using SAP for production order processing, execution, and management, consider the following best practices to ensure maximum quality and performance:

• Accurate Master Data Management: Ensure that all master data (e.g., material master, bill of materials, work centers, routing) is accurate and up-to-date. Automating data collection is key.
• Integrated Planning: Utilize Material Requirements Planning (MRP) effectively to ensure that production schedules are aligned with material availability, capacity planning, and demand forecasting.
• Efficient Order Creation: Automate the creation of production orders where possible, using MRP runs. For custom orders, ensure that the data entered is accurate and complete.
• Timely Order Release: Release production orders in a timely manner, ensuring that all prerequisites, such as material availability and resource scheduling, are met.
• Quality Management Integration: Integrate quality management processes with production order processing to ensure that the products meet the required standards and specifications.
• Continuous Improvement: Regularly review and analyze production data to identify areas for process improvement. Implement lean manufacturing principles to reduce waste and increase efficiency.
• Compliance and Documentation: Ensure that all production processes are compliant with industry standards and regulations. Maintain proper documentation for audits and quality checks.
• Real-time Monitoring and Reporting: Utilize real-time monitoring tools like RFgen to track the progress of production orders. This helps in the prompt identification and removal of bottlenecks or slow zones.

Training and Support Resources

The SAP community offers much in the way of training and support. Some helpful resources include:

• SAP Learning Hub: Build and maintain SAP skills with digital learning.
• SAP Learning: Free hands-on learning and courses.
• SAP Certification: Become a trusted SAP expert with valuable solution skills.

Community and online forums also offer ways to engage with the SAP community for advice, best practices, and problem-solving strategies.

Resolving Common Issues in Production Order Processing

If you’re experiencing issues using SAP Production Order Processing, try visiting the SAP Support Portal.

For RFgen users, contact technical support.

For non-customers, contact us directly to learn more about what RFgen’s Production Order Processing Suite can do for you.

You may also wish to visit our resource detailing the problems we solve.