Demystifying SAP PP Planning Strategies: A Guide to Making Production Purr

Having the right strategy is crucial in SAP Production Planning (PP). The secret sauce determines how you translate customer needs into a smooth-running production flow. However, with various options available, choosing the perfect SAP PP planning strategy can feel overwhelming.

This blog post will untangle the web and guide you through the key concepts.

What are SAP PP Planning Strategies?

Imagine your planning strategy as a recipe for production success. It defines how you use forecasts and sales orders (independent demand) to generate production plans.

Here’s the gist:

• Planned Independent Requirements (PIRs): These are forecasts you create manually for anticipated demand.
• Customer Independent Requirements (CIRs): These demands come directly from sales orders.

The Spectrum of Strategies: Make-to-Stock vs. Make-to-Order

There are two main philosophies when it comes to production:

• Make-to-Stock (MTS): Here, you produce finished goods based on forecasts, anticipating customer needs. This strategy is ideal for stable-demand items.
• Make-to-order (MTO): Production is triggered by actual sales orders. This is a good fit for products with high customization or fluctuating demand.

Popular SAP PP Planning Strategies

SAP offers a range of strategies that cater to different production scenarios:

• Strategy 10 (MTS): Pure make-to-stock strategy using PIRs.
• Strategy 40 (MTO): Pure make-to-order strategy using CIRs.
• Hybrid Strategies: These combine elements of MTS and MTO, offering more flexibility. Strategy 30 (forecast-based MPS with final assembly triggered by sales orders) is a typical example.

Choosing the Right Strategy

The best strategy depends on your specific product characteristics and market dynamics. Consider factors like:

• Demand predictability
• Lead times
• Product customization options
• Inventory carrying costs

Remember: There’s no one-size-fits-all solution. Carefully analyze your needs and consult with SAP experts to find the strategy that optimizes your production efficiency.

Beyond the Basics

This blog post has provided a foundation for understanding SAP PP planning strategies. For further exploration, consider diving deeper into:

• MRP Group Settings: These influence how dependent demand (parts) is planned.
• Lead Time Management: Ensuring accurate lead times is crucial for realistic planning.
• Integration with Other Modules: Explore how PP interacts with Sales & Distribution (SD) and Demand Management (MD) modules.

By mastering SAP PP planning strategies, you can ensure your production process is responsive, efficient, and cost-effective, keeping your customers happy and your business humming.