Understanding Network Orders in SAP PP

In the vast world of SAP Production Planning (PP), a specific type of order stands out for its versatility: the network order. While traditional production orders excel in managing repeatable manufacturing processes, network orders offer a distinct advantage for complex projects. This blog delves into network orders in SAP PP, explaining their purpose and how they differ from their production order counterparts.

Network Orders: A Structured Approach to Complex Production

Imagine a production process involving multiple stages, each with its materials and activities. This is where network orders come into play. They function as a structured breakdown of a complex production project, outlining the tasks and materials required at each step.

Here’s what sets network orders apart:

• Hierarchical Structure: Network orders possess a hierarchical structure, allowing you to break down the project into smaller, more manageable sub-activities. This hierarchical view clearly shows the overall workflow and dependencies between tasks.
• Flexibility: Unlike production orders tailored for repetitive manufacturing, network orders cater to unique projects with distinct requirements. You can customize the network structure to reflect the specific needs of each project.
• Integration: Network orders seamlessly integrate with other SAP modules like Project System (PS) for cost control and Material Management (MM) for inventory management. This holistic approach ensures all aspects of the project are tracked and controlled efficiently.

When to Use Network Orders

Network orders are the ideal choice for production scenarios that involve:

• Complex projects: When your manufacturing process has multiple stages with varying materials and activities, network orders provide a structured approach for managing the project effectively.
• One-time production: Network orders are well-suited for situations where you’re producing a unique product or fulfilling a specific customer order that won’t be repeated.
• Project-oriented manufacturing: If your production environment involves projects with distinct lifecycles, network orders offer a project-centric view to streamline production control.

In Conclusion

Network orders are a valuable tool within the SAP PP toolbox. By understanding their capabilities and how they differ from production orders, you can leverage them effectively to manage complex projects, ensure efficient resource allocation, and gain better control over your unique production processes.