Understanding Order Types in SAP PP: The Nuts and Bolts of Production Planning

In SAP Production Planning (PP), order types are the building blocks for organizing and managing production processes. They’re more than just labels; they define how specific production orders are handled within the system.

This blog explores the world of order types in SAP PP, explaining their purpose, functionalities, and how they streamline production operations.

What are Order Types in SAP PP?

An order type in SAP PP acts as a category that groups production orders based on specific characteristics. It defines the control parameters and functionalities applicable to a production scenario. Think of it as a template that sets the ground rules for how a specific production order will be planned, scheduled, and executed.

For example, a standard production order for a finished good would have different control settings than a rework order for a defective product.

Benefits of Using Order Types

• Enhanced Organization: Order types bring order (pun intended) to your production planning.  You can quickly identify, track, and manage specific orders by grouping similar production scenarios.
• Streamlined Processes: Predefined control settings within order types automate and streamline production processes. For instance, an order type for Kanban replenishment might automatically trigger material requisition upon confirmation.
• Improved Efficiency: Order types promote efficient production planning by ensuring consistency and reducing manual configuration for similar production scenarios.

Standard Order Types in SAP PP

SAP provides a set of standard order types catering to various production needs. Here are some commonly used ones:

• PP01 (Standard Production Order): The most widely used order type for manufacturing finished products.
• PP02 (Standard Production Order with External Numbering): Ideal for subcontracting scenarios where the subcontractor provides the order number.
• PP03 (Production Order for Rework): Used for processing and reworking defective materials.
• PP04 (Production Order for Assembly): Manages production processes involving assembling components into a finished product.
• PP05 (Production Order for Kanban Replenishment): Supports production based on the Kanban pull system.

Note: These are just a few examples. SAP offers additional standard order types, and you can even create custom order types to suit your specific production requirements.

Customizing Order Types

The beauty of SAP PP lies in its flexibility. You can customize standard order types or even create new ones to align with your unique production processes perfectly. Here’s what you can define within an order type:

• Number Range: Assign a specific number range for orders of that type.
• Scheduling Parameters: Set scheduling rules like lead times and priority for this order type.
• Confirmation Parameters: Determine whether confirmations are required and what level of detail is needed.
• Order-Dependent Parameters: Specify functionalities specific to the order type, such as backflushing or coproduction.

Conclusion

Order types are a fundamental concept in SAP PP, serving as the foundation for organizing and managing your production processes. By leveraging their capabilities, you can achieve enhanced organization, streamlined workflows, and improved production efficiency within your SAP environment.