1) Explain what is SAP PP?

SAP PP process is related to production planning of a company and it

encompasses all activities like MRP (Material Requirement Planning), BOM
(Bills Of Material), Routing, Capacity planning, etc.

Production Planning is the process of aligning Demand & manufacturing to

create production & procurement. Schedule for finished material &
Component material.

Production Planning Cycle

The Production Planning and Control consist of 2 obvious processes of
Planning and Execution.

Planning

Production planning is generally done from budgeted sales plan. Planning

is based on the Sales plan to meet the sales requirements as per the
production cycle times. Demand for the Product is entered through demand
management in the form of planned independent requirement (PIR).This
data from demand management becomes the input to Material requirement
planning (MRP).MRP checks for the availability of various raw materials
used for production at different stages using the master data such as Bill of
material (BOM) and available current plant stocks.

In case of material shortage, Purchase requisitions are created for

materials which are externally procured, and planned orders are created for
in-house produced materials.

These purchase requisitions and planned orders initiate the Procurement

Cycle and the Execution Cycle of Production respectively.

As MRP works with infinite capacities, capacity levelling must be done in

order to avoid any capacity bottlenecks.

Execution

These Planned orders are converted to Production orders, and are

scheduled as per the production timings using master data such as
routings.
Production Orders are released by the Production Supervisor on the shop
floor, and material availability checks can also be carried out to check if
there are any missing components.

Production is carried out based on the activities maintained in the Routing

where the master data like Work Center is mentioned against each
operation in the Routing.

Once the production is completed, the Confirmations of orders are

executed, and goods movement for material consumptions & goods receipt
are posted against the Order. Hence, the Order gets the Delivered (DLV)
status, and the material is received into desired storage location.

Usually at the month end before doing order settlement, production order
needs to be set to technically completed status in order to calculate
production variances by the controlling personnel.

2) Mention what are the production process in SAP?

There are three types of production process in SAP

• Discrete Manufacturing
• Repetitive Manufacturing
• Production- Process Industries

3) List out the activities carried out in Production Planning?

Activities involved in Production Planning includes

• Processing material master

• Creation of Bill of Material
• Displaying work center and routing
• Maintaining planning calendar
• Maintaining production lot
• Maintaining quota file
• Defining range of coverage profile and profile for safety time
• Defining MRP views

4) Explain what is Routing in SAP PP?

Routine defines the list of activities to be performed for the production

process. Routing defines a sequence of activities performed at the work center. Routing
plays in important role in calculating production cost, machine time and labor time.
5) What are the steps of Production Execution Process?

Production Execution steps include

• Converting planned order to production order

• Releasing the production order
• Goods issue for production order
• Confirmation of production order
• Goods receipt against production order

6) What are the reports generated in product cost controlling

information system?

Product Cost Controlling information system generates information for

following areas

• Product cost planning

• Cost object controlling with the subcomponents
o Product cost by period
o Product cost by order
o Product cost by sales order
o Costs for intangible goods and services
• Actual costing / Material Ledger

7) Explain what is "work center" in SAP PP and what is the use of

Data in Work Centers?

"Work Centers" are business objects in SAP-PP that is used in task list
operations ( routings, maintenance task lists, inspection plans) and work
orders. Data in work center is used for

• Scheduling: Formulas and operating time are entered, so that the

duration of an operation can be calculated
• Costing: Formulas are entered so that the costs of an operation can
be calculated
• Capacity Planning: The available capacity and formulas for capacity
requirements is entered
• Simplifying operation maintenance: Various default values can be
included in the work center
8) What is the use of MRP PP evaluations?

This role contains a function for evaluating the MRP result. This function
can be used to find information about the availability of material and to
identify any material shortage situation.

9) Mention what is the purpose of using Capacity Planning?

Capacity Planning supports planning in all phases

• Long term rough cut planning

• Medium term planning
• Short term planning

It can be integrated with various SAP applications like SAP-SD, PP, PP-
SOP, PP-LTP, PP-SFC, etc.

10) Explain how can you create production order without routing and
BOM?

Without BOM and routing you can create a production order by changing
the config in OPL8 ( order type dependent parameters) as routing optional.
When we try to create an order using C001 it may ask for a sales order.

11) Explain what happens to planned after it has been converted into
production order?

When planned order is converted to the production order, the planned

order are offset by production order. The planned order reference can be
seen in the production order.

12) Mention what is the difference between stock transport order and
stock transfer order?

• Stock transfer order: It is referred to the transfer of stock for the

usage in the same company
• Stock transport order: It is referred to the change of title of stock in
the name of the buyer

13) Explain what is PRT (Production Resource Tools) in SAP PP?

PRT (Production Resource Tools) are moveable operating objects used to

perform repeated activities in plant or production maintenance, for
example, documents such as drawings or programs for which document
management functions are used. Various other PRT components include
 • Engineering drawings
• Jigs
• Fixtures
• Measurement Instruments

14) Explain how to create PRT master records?

To create PRT master records you have to follow the following steps

1. Choose logistics/Accounting -> Project System -> Basic data -

> Master data -> Production resources and tools -> Create
2. The initial screen for creating a PRT appears
3. Enter a number for the PRT and choose continue
4. The basic data screen appears
5. Maintain the basic data
6. Choose Goto -> Defaults and enter the default values
7. Save the PRT

15) Mention what is the t-code for changing production order and to
display production order?

T-code to change the production order = C002

T-code to display the production order = C003

16) Explain what is PLM (Product Lifecycle Management) in SAP PP

and what is the use?

It is a collection of solutions with which you digitally create, maintain and

make product information, available in the whole company and for the
entire life cycle of the product.

PLM provides you the function with which you do following things

• The workplace is an open portal in the world wide web and allows
you to access all application and information that you need to work
with all external and internal business partners
• It can link with other internet applications like program management,
change and configuration management and engineering
collaboration.
17) In SAP-PP what are the costing parameters?

In SAP-PP, the costing parameters are as below

• Work Center: Activity types and the formulas, cost center

• Routing: The time, activity types

18) In cost controlling information system mention the fields that are
listed in the list screen of the report?

Following fields are listed in the list screen of the report

• Key Figures
o Costing/MM
o %Costing/MM
o Revaluation
o VarCstRuns
o %VarCstRuns
• Basic data
• Valuation
• Cost component group 1/ Cost component group 2
• CostCompGr(fix)1 / CostCompGr( fix)2

19) Explain what is the use of SAP Material View and list out other
parameters where SAP Material View is applicable?

SAP Material View is an SAP object that not only hold name of the
material, but various other information related to material like

• Material production related information

• Material planning related information
• Material sales related information
• Material purchase related information
• Material storage and warehousing related information
• Material costing and Accounting related information
• Material batch specification information

20) Mention what are the types of Master Views for Production and
Planning?

For production and planning types of Master Views are

 • SAP MRP1 View
• SAP MRP2 View
• SAP MRP3 View
• SAP MRP4 View
• SAP Work Scheduling View

21) Mention how MRP (Material Requirement Planning) types are

classified?

MRP types are classified in two leagues

• Materials for consumption based planning

• Planning based on demand

22) Mention what are the keyfields found in MRP View 1?

MRP views 1 are mostly maintained for production purposes.

• General Data
• MRP Procedure
• Lot size data

23) List out the basic procedure for dispatching operations in

capacity leveling?;

For dispatch operations basic procedure includes

• Either the user determines the date of dispatch or else it is specified

by scheduling
• A dispatching sequence needs to be determined if several operations
need to be dispatched
• The systems checks for
o The dates to which operations are to be dispatched
o The work center to which operations are to be dispatched
• Finite scheduling is performed
• Operation check is performed
• Status for the operation is set as "dispatched."
• System carries out midpoint scheduling

24) Explain what is the need of MRP list if the stock requirement list is
already given?

MRP list displays the result of the last planning run, changes that occurred
between planning runs are ignored in the MRP list. While contrary to this, in
the stock or requirement list all changes that occurred in the stock, issues
and receipts are displayed by the system.

25) Mention what are the t-codes for creating, changing and
summarizing BOM?

BOM transaction codes for

• Creating BOM= CS01

• Changing BOM= CS02
• Summarized BOM=CS13

26) Mention what is the use of t-code CS20 in BOM?

With t-code CS20 you can do Mass changes to BOM like

• Change the item data

• Creating new material
• Replacing it with another material
Explain what is SAP PP?
SAP PP process is related to production planning of a company and it encompasses all
activities like MRP (Material Requirement Planning), BOM (Bills Of Material), Routing,
Capacity planning, etc. but mainly it contains two segments

Material Planning: Material requirements planning, long term planning,

Execution Planning: Creation of production order, workflow, conformations, technical

completion and good movement

Or

SAP PP process is related to production planning of a company and it encompasses all

activities like MRP (Material Requirement Planning), BOM (Bills Of Material), Routing,
Capacity planning, etc. but mainly it contains two segments
1. Material Planning: Material requirements planning, long term planning,
2. Execution Planning: Creation of production order, workflow, conformations, technical
completion and good movement

What is SAP Production Planning?

Why it is used?
SAP Production Planning is one of key module in ERP and deals with planning
processes like capacity planning and material planning and execution of production
order, bill of material and goods movement. SAP PP module handles master data that is
required for BOMs activity, work center and routing and keep it in a separate component.

What is difference between Discrete

and Repetitive Production?
Discrete production is known as industry where produce materials changed with each lot
and costs are calculated as per orders and lots.

In Repetitive production, product is not changed for longer time period and production is
done as total quantity and not in the form of individual lots.
Explain Production planning life
cycle?
Converting planned order to Production Order
First step is to convert a planned order to production order. When you create a
Production Order, type is defined in SAP PP system.

Issue the production order

To start the production process, it is necessary to issue Production order. Till a
production order is not released, execution of production process is not started.

Issuing goods for production order

Issuing goods is required for providing the goods to execute the Production order. Once
goods are issues, document number can be updated in the system.

Production order confirmation

All the sub processes are executed in accordance with required operations to confirm
the production as per Production order.

Good receipts w.r.t Production Order

Once production order execution is completed, goods produced w.r.t Production Order
are received and placed in storage area.

What are the different elements in

Org structure under SAP Production
Planning?
In SAP PP module, organization structure defined the location of manufacturing plants
and storage locations within the plant. At the top you have company and company code
and then each company code contains different plant and storage locations.
Which all modules SAP PP is
integrated with? Explain the
integrated activities that are
performed with each module under
PP?
To perform Production Planning and Control activities, SAP PP is closely integrated with
other SAP ERP modules: SAP Sales and Distribution SD, SAP Material Management
MM, Quality Management, Finance Accounting and Project System.

You can find list of below activities from Production Planning that are related to other
SAP modules and integration with other modules.

SAP PP and SAP Material Management MM

This involved movement of goods, auto goods receipt.

It includes creating reservation for Production Order/Planning.

Raising Purchase orders with MRP Run.

Quotations and Vendor selection.

SAP PP and SAP SD

This is used to check the availability of material for production order.

To perform MRP Run, Requirement Types.

Bill of Material components and operation.

SAP PP and SAP FICO

Updating price in material master data

Defining activity Type in the Cost center

Assigning activity type to Work Center

Cost Estimation

Production cost controlling

Posting accounting activities related to goods movement, material request, etc.

SAP PP and Project System
Assigning planning activities to WBS in the Project.

Running Material requirement planning at Project level (MD51). The procured material
attached to WBS are reserved as project stock against the particular project.

The component attached to network are planned at plant level and are reserved as plant
stock.

SAP PP and Quality Management

Inspection Type 03 for discrete and repetitive manufacturing.

Inspection Type 04 for both Discrete and Repetitive Manufacturing

What are the different master data exists under Production Planning?

Bills of Material BOM

Material Master

Work Center

Routing

What is BOM?
Bill of material master data is related to material requirement planning and provides the
list of components to produce the product.

To produce a product with different variants, you can create super Bills of Material that
has list of components to manufacture different variants of a product and selection of
component depends on details mentioned in planning order.

What is the difference between

Material and Sales order BOM?
Material BOM
When a Bill of Material is created for a material is known as a material BOM in the SAP.
Material BOMs are mainly used to represent the structure of products manufactured
within your company.

Sales order BOM

Sales Order BOM is used when you specially tailor the make-to-order production of
products as per requirements of the customers. To meet the customer requirements, you
make sales order specific modifications to various assemblies.
What are the key characteritics of
BOM?
You can create Bill of Material as single level or multiple level.

BOM type depends on the size, validity dates and production method.

You can create up to 99 Bills of Material as per material type.

You can use material Bill of material for the material available in PP module and
equipment Bill of Material are used in Plant Maintenance module.

As mentioned you can create super BOM for different variants of a product.

What is Work Center under

Production Planning? Why do we use
Work Center?
Work center consists of master data related routing of products. It contains data related
to scheduling, capacity planning and production costing.

All the manufacturing activities are performed in Work Center. Work center can be used
to monitor these activities −

Scheduling
You can schedule the operations in Production order as per operating times in Routing
and formulas mentioned in work center.

Production Costing
You can also check production costing as per formulas mentioned in work center. A
Work center is also linked to cost center and it defines the cost of operation in
Production Order.

Capacity Planning
You can find current capacity and future capacity requirements stored in work center.

What is Routing process under

Production Planning?
Routine defines the list of activities to be performed for production process. Routing
defines sequence of activities performed at work center. Routing plays in important role
in calculating production cost, machine time and labor time.
What is the use of routing in PP or
explain ley charactertics of Routing
under Production Planning?
To create routing it is mandate that you first define work center.

Multiple materials can follow single routing group.

Routing is used for scheduling and costing of operation for raw and finished products.

Routing is used for calculation operation cost for finished product.

What are different Planning

strategies?
Make to Stock Planning strategy
This is planning strategy where stock is produced without sales order. It is used to meet
customer demands in future.

When you use Planning strategy 10, only PIR quantity is considered for MRP run and
sales order are completely ignored. In this PIR requirement type LSF and is reduced
when you deliver stock to customer.

When you use Planning strategy 40, for MRP run maximum of 2 PIR and Sales order
can be considered and PIR is reduced when enter the Sales order. PIR requirement
type is VSF in this case.

Make to Order planning strategy

In this planning strategy, finish products are not produced until you receive sales order
from a customer. For MRP run, you only consider Sales order.

In MTO strategy, you only produce sales order stock and products are delivered as per
sales orders from specific customer.

You use Planning strategy 20 for make to order MTO process and planning strategy 25
is used to produce product variants when there is request for variant products from
customer.
What is Material Requirement
Planning under Production Planning?
MRP run or planning run is an engine which is used to fill demand and supply gap.
Issues & Receipts are called MRP Elements. Issues include PIRs, Dependent
Requirements, Order Reservations, Sales Orders, Issuing Stock Transfer Orders, etc.
and receipts include Production Orders, Purchase Requisitions, Purchase Orders, Open
Production Orders, Receiving Stock Transfer Order, Schedule lines, etc.

Mention what are the production

process in SAP?
There are three types of production process in SAP

Discrete Manufacturing

Repetitive Manufacturing

Production- Process Industries

List out the activities carried out in

Production Planning?
Activities involved in Production Planning includes

Processing material master

Creation of Bill of Material

Displaying work center and routing

Maintaining planning calendar

Maintaining production lot

Maintaining quota file

Defining range of coverage profile and profile for safety time

Defining MRP views

Explain what is Routing in SAP PP?
Routing in SAP PP is referred to a list of activities which are required to produce any
material. For example, when you do cost estimation for the material, the system triggers
the relevant routing and activity rates for all those described in routing. Which will helpful
to calculate the processing cost in product costing

What are the steps of Production

Execution Process?
Production Execution steps include

Converting planned order to production order

Releasing the production order

Goods issue for production order

Confirmation of production order

Goods receipt against production order

What are the reports generated in

product cost controlling information
system?
Product Cost controlling information system generates information for following areas

Product cost planning

Cost object controlling with the subcomponents

Product cost by period

Product cost by order

Product cost by sales order

Costs for intangible goods and services

Actual costing / Material Ledger

Explain what “work center” in SAP
PP is and what is the use of Data in
Work Centers?
“Work Centers” are business objects in SAP-PP that is used in task list operations (
routings, maintenance task lists, inspection plans) and work orders.Data in work center
is used for

Scheduling: Formulas and operating time are entered, so that the duration of an
operation can be calculated
Costing: Formulas are entered so that the costs of an operation can be calculated
Capacity Planning: The available capacity and formulas for capacity requirements is
entered
Simplifying operation maintenance: Various default values can be included in the work
center

What is the use of MRP PP

evaluations?
This role contains a function for evaluating the MRP result. This function can be used to
find information about the availability of material and to identify any material shortage
situation.

Mention what is the purpose of using

Capacity Planning?
Capacity Planning supports planning in all phases

Long term rough cut planning

Medium term planning

Short term planning

It can be integrated with various SAP applications like SAP-SD, PP, PP-SOP, PP-LTP,
PP-SFC, etc.
Explain how can you create
production order without routing and
BOM?
Without BOM and routing you can create a production order by changing the config in
OPL8 ( order type dependent parameters) as routing optional. When we try to create an
order using C001 it may ask for a sales order.

Explain what happens to planned

after it has been converted into
production order?
When planned order is converted to the production order, the planned order are offset
by production order. The planned order reference can be seen in the production order.

Mention what is the difference

between stock transport order and
stock transfer order?
Stock transfer order: It is referred to the transfer of stock for the usage in the same
company
Stock transport order: It is referred to the change of title of stock in the name of the
buyer

Explain what is PRT (Production

Resource Tools) in SAP PP?
PRT (Production Resource Tools) are moveable operating objects used to perform
repeated activities in plant or production maintenance, for example, documents such as
drawings or programs for which document management functions are used. Various
other PRT components include

Engineering drawings

Jigs

Fixtures

Measurement Instruments
Explain how to create PRT master
records?
To create PRT master records you have to follow the following steps

Choose logistics/Accounting -> Project System -> Basic data -> Master data -
> Production resources and tools -> Create
The initial screen for creating a PRT appears

Enter a number for the PRT and choose continue

The basic data screen appears

Maintain the basic data

Choose Goto -> Defaults and enter the default values

Save the PRT

Mention what is the t-code for

changing production order and to
display production order?
T-code to change the production order = C002

T-code to display the production order = C003

Explain what is PLM (Product

Lifecycle Management) in SAP PP
and what is the use?
It is a collection of solutions with which you digitally create, maintain and make product
information, available in the whole company and for the entire life cycle of the product.

PLM provides you the function with which you do following things

The workplace is an open portal in the world wide web and allows you to access all
application and information that you need to work with all external and internal business
partners

It can link with other internet applications like program management, change and
configuration management and engineering collaboration.
In SAP-PP what are the costing
parameters?
In SAP-PP, the costing parameters are as below

Work Center: Activity types and the formulas, cost center

Routing: The time, activity types

In cost controlling information system

mention the fields that are listed in
the list screen of the report?
Following fields are listed in the list screen of the report

Key Figures

Costing/MM

%Costing/MM

Revaluation

VarCstRuns

%VarCstRuns

Basic data

Valuation

Cost component group 1/ Cost component group 2

CostCompGr(fix)1 / CostCompGr( fix)2

Explain what is the use of SAP
Material View and list out other
parameters where SAP Material View
is applicable?
SAP Material View is an SAP object that not only hold name of the material, but various
other information related to material like

Material production related information

Material planning related information

Material sales related information

Material purchase related information

Material storage and warehousing related information

Material costing and Accounting related information

Material batch specification information

Mention what are the types of Master

Views for Production and Planning?
For production and planning types of Master Views are

SAP MRP1 View

SAP MRP2 View

SAP MRP3 View

SAP MRP4 View

SAP Work Scheduling View

Mention how MRP (Material
Requirement Planning) types are
classified?
MRP types are classified in two leagues

Materials for consumption based planning

Planning based on demand

Mention what are the keyfields found

in MRP View 1?
MRP views 1 are mostly maintained for production purposes.

General Data

MRP Procedure

Lot size data

List out the basic procedure for

dispatching operations in capacity
leveling?;
For dispatch operations basic procedure includes

Either the user determines the date of dispatch or else it is specified by scheduling

A dispatching sequence needs to be determined if several operations need to be

dispatched

The systems checks for

The dates to which operations are to be dispatched

The work center to which operations are to be dispatched

Finite scheduling is performed

Operation check is performed

Status for the operation is set as “dispatched.” System carries out midpoint scheduling
Explain what is the need of MRP list
if the stock requirement list is already
given?
MRP list displays the result of the last planning run, changes that occurred between
planning runs are ignored in the MRP list. While contrary to this, in the stock or
requirement list all changes that occurred in the stock, issues and receipts are displayed
by the system.

Mention what are the t-codes for

creating, changing and summarizing
BOM?
BOM transaction codes for

Creating BOM= CS01

Changing BOM= CS02

Summarized BOM=CS13

Mention what is the use of t-code

CS20 in BOM?
With t-code CS20 you can do Mass changes to BOM like

Change the item data

Creating new material

Replacing it with another material

1.What is SAP PP?

PP = Production Planning
SAP Poduction Planning (PP) is one the largest functional module in SAP. This module
deals with all production processes like Capacity Planning, Master Production
Scheduling, Material Requirement Planning & more…
The Production Planning module of SAP takes care of Master data needed like Bill Of
Materials, Routings and Work Centers and stores it in one separate component.
2.Can we create Production order
without bom and routing?
yes we can create a production order without BOM & routing.Change the Config in
OPL8 ( order type dependent parameters)as routing optional. But it may ask for a sales
order when we try to create order using CO01

3.What is the difference between by-

product and co-product and how do
you differentiate them in a BOM?
In case, of Co-product costs are settled with an apportionment structure. In case, of By-
product the price of this by-product is credited to the order or the material stock account
of the lead material being manufactured. Co-Product as well as by-product are defined
as BOM Components/Items. Both of them have negative quantities. ( Not all negative
quantity items fall under these categories!). When BOM is created for FERT, you can
see one indicator in COMPONENT DETAILS screen for co-product. You need to define
the co-products with this special indicator

4.Mention what are the production

process in SAP?
There are three types of production process in SAP
Discrete Manufacturing
Repetitive Manufacturing
Production- Process Industries

5.What are some important tables

used in PP (Production Planning)?
For orders:
CUAFVD dialog structure for order headers and items
AFPO – Order item
AFFLD Order: Dialog table for order sequences (AFFL)
MOPER Operation for production order
KBED Capacity requirements
AFRU Order completion confirmations
RESB Reservation/Dependent Requirements
AFFHD Structure of PRT’s in orders
SOPER Sub-operations
SAFRU Sub-operation confirmations
SKBED Capacity requirements for sub-operation
MRP table is MDTB.
For PI:
CAUFV – AFVC Operation within an order
AFFT Order Process Instructions
AFFV Order process instruction values
Some other tables of interest:
PLKO, MAPL, PLAS.

6.what is the difference between PP

and PP-PI? Which one is better and
how?
PP–> Prodction Planning mostly used for descrete type of
industries , where at the time of confirmation the output is
sure to be fixed. eg Automobile

PP- PI–> Production Planning for Process Industries , here

mostly used for the typical chemical industries , as the
Yield is not fixed due to chemical reaction yield values can
be varied to noticable extent. Eg X+Y =Z some 10 kg of X
and 1 KG of Y givs yiled that is Z of 10 Kg only.

7.What are the costing parameter?

The costing Parameters are the following
Work center : Activity types and the formulaes,cost center
Routing : the time ,activity types
In Production order dependent parameters we are defining
the Variant ,result analysis key,settlement profile
In the controlling i.e in KP 26 we will be defining the
rates per hour depending on the rates it will reflect the
cost caluculating from the routing..

8.What structure do your BOMs have?

How many levels are there?
How many components are there on
each level?
How many components are there on each level?
BOM IS A multilevel,
we can assign bom level by level cs11,
level 1 bom header material assembly levelcontains components which also have bom
contains
level 2 bom sub assembly level
last lower level is level 3 components level
9.How to attach a drawing for a
material to BOM ? Is it possible ?
Yes, you can attach a drawing. First create a document using Transaction Code “CV01N
– Create Document”. Attach your drawing in that document. The system will generate a
document number. Assign this document in the BOM with item category D. Report in
Long Term Planning – You use long term planning for your customers, what they need
are very simple, just to calculate future requirements for 1 or 2 years.
[/vc_column_text]

10.Explain what is Routing in SAP

PP?
Routing in SAP PP is referred to a list of activities which are required to produce any
material. For example, when you do cost estimation for the material, the system triggers
the relevant routing and activity rates for all those described in routing. Which will helpful
to calculate the processing cost in product costing.

11.Are there any reports in SAP to list

of material requirement from LTP ?
You need a list of material requirement from long term planning result for each item. Use
MS70 then use MCEC.

12.If there are some errors in goods

movements, and less stock of material
consumed, how can i solve that
problem in SAP?
According to me COGI is basically a SAP standardised system
which will tell you that what is the error in some cases it
can rectify it too.
But if the entry is done manually by MB1A, MB1B, MB1C you
have to bring back or cancell the movement or move the
stock to desired material and then refresh COGI.

13.What is a ‘BOM’?
A ‘BOM (Bill of Material)’ is nothing but a structured list of components (with the object
number, quantity, and unit of measure) that go into the making of a product or an
assembly. Depending on the industry sector, they may also be called recipes or lists of
ingredients. The structure of the product determines whether the bill of material is simple
or very complex.
14.What are the reports generated in
product cost controlling information
system?
Product Cost Controlling information system generates information for following areas

Product cost planning

Cost object controlling with the subcomponents

Product cost by period

Product cost by order

Product cost by sales order

Costs for intangible goods and services

Actual costing / Material Ledger

15.What are all the ‘Technical Types

of BOM’?
There are two ‘Technical Types of BOM’ supported in SAP:
Variant BOM
Material BOM

16.Explain why their is need of

production version?
In production version, we assign the BOM and ROUTING
combination. And in case of alternate BOMs , it clears which
alternative bom has to be selected automatically.
 17.Differentiate ‘Variant BOM’ from
‘Multiple BOM.’
While a ‘Variant BOM’ groups together several BOMs that describe different objects (for
example, different models of a car) with a high proportion of identical parts, a Multiple
BOM groups together several BOMs that describe one object (for example, a product)
with different combinations of materials for different processing methods.
The Variant BOMs are supported for the following BOM categories:
Material BOMs
Document structures
Equipment BOMs
Functional location BOMs
Multiple BOMs are only supported for Material BOMs.

18.Explain what is “work center” in

SAP PP and what is the use of Data in
Work Centers?
“Work Centers” are business objects in SAP-PP that is used in task list operations (
routings, maintenance task lists, inspection plans) and work orders.
Data in work center is used for
• Scheduling: Formulas and operating time are entered, so that the duration of an operation can be
calculated
• Costing: Formulas are entered so that the costs of an operation can be calculated
• Capacity Planning: The available capacity and formulas for capacity requirements is entered
• Simplifying operation maintenance: Various default values can be included in the work center

19.Define ‘BOM Group.’

A ‘BOM Group’ is a collection of BOMs that lets you describe a product or a number of
similar products. The value in the BOM group field uniquely identifies the BOM group.
You can use the BOM group as an alternative way of accessing the BOM. A BOM group
comprises either all the alternatives of a multiple BOM or all the variants of a variant
BOM.
When you create a BOM group, the system checks the special characters you use.
Apart from the usual alphanumeric characters, you can use the following special
characters: ‘-’,‘/’,‘_.’ You cannot use blanks.

20.Explain what is the meaning of

exploding a BOM?
it is the process of multiplying the requirement by the
usage quantity and recording the appropriate requirements
throughout the product tree
21.What are the ‘BOM Categories’
Supported by SAP?
The following are the various Categories of BOM:
Equipment BOM
Material BOM
Sales Order BOM
Document Structure
Functional Location BOM
WBS BOM

22.What is the use of MRP PP

evaluations?
This role contains a function for evaluating the MRP result. This function can be used to
find information about the availability of material and to identify any material shortage
situation.

23.What are all the different

manufacturing scenarios in pp?
There are different scenarios in SAP PP module.

1. Make to stock
2. Make to order
3. External processing (Subcontracting)
4. Rework processing
5. Prodcution in another plant

24.Are there any reports in SAP to list

of material requirement from LTP ?
You need a list of material requirement from long term planning result for each item. Use
MS70 then use MCEC.
 25.Mention what is the purpose of
using Capacity Planning?
Capacity Planning supports planning in all phases

• Long term rough cut planning

• Medium term planning
• Short term planning
It can be integrated with various SAP applications like SAP-SD, PP, PP-SOP, PP-LTP,
PP-SFC, etc.

26.How to delete a group of products

that was created in screen MC84 ?
Delete the members in the product group and then archive the product group in
transaction SARA, object=MM_MATNR. (The product group is created as a material
master record with material type PROD and this record is deleted in SARA.)

27.Do you have different BOMs for a

material in different plants?
generally we have following BOMs

1. Product Tree
2. Parent- component relationship
3. Multilevel Bill
4. Multiple Bill
5. Single Level Bill
6. Indented bill
7. Summarized parts list
8. Planning bill
9. where- used report
10. Pegging report
 28.Explain how can you create
production order without routing and
BOM?
Without BOM and routing you can create a production order by changing the config in
OPL8 ( order type dependent parameters) as routing optional. When we try to create an
order using C001 it may ask for a sales order.

29.Mention what is the t-code for

changing production order and to
display production order?
• T-code to change the production order = C002
• T-code to display the production order = C003

30.Tell me the planning steps for 100

products?
CK11n is used for standard cost estimation.
to run that we have to run ck24 also.

What is a Material Master?

A Material Master is a central master data of an organization which contains information
related to the procurement, production, quality, sales and financial data for a material. The
information in a SAP PP material master will be stored at different levels:

• Client Level or general data

• Plant Level
• Storage Location Level
• Valuation Level

Definitions of MTO and MTS from SAP

Even within the SAP websites the definitions are not clear:

Definition 1 from SAP Help

You can decide if production is triggered by sales orders (make-to-order production), or if it is

not triggered by sales orders (make-to-stock production).
Definition 2 from SAP Glossary

Make-to-order Production: A type of production in which a product is manufactured for a

particular customer. (My comment: SAP means *manufactured for a particular sales order/item).

Make-to-stock Inventory: An inventory of goods that were not manufactured for specific sales
orders or projects. The stock is anonymous.

Definition 1 says that the difference between MTO and MTS is how production is
triggered: actual sales orders or sales forecast respectively. Definition 2 suggests the
difference is whether the resulting finished goods inventory is segregated by sales order. In my
opinion Definition 2 is correct. Definition 1 is not definitive because within both MTO and MTS
there is a continuum of production triggering before and after the sales order.

Let’s take a closer look…

Definition 1 – Triggering of Production

Depending on the planning strategy set in the finished product (FERT) material master and the
settings in the assemblies’ material masters it is possible to stock at different BOM levels based
on forecast, prior to the entry of the sales order. In the graphic below semi finished HALB1 is
stocked based on the forecast for the finished product but production of the finished product and
HALB 2 and its two assemblies is triggered only after the sales order is entered.

Nothing in this graphic tells us whether this is make-to-order or make-to-stock production!

Stocking at different BOM levels

In fact, there is a continuum of stocking levels and procurement triggering for MTO and MTS
planning strategies as you can see in the graphic below.

Possible stocking levels for several MTO and MTS Planning Strategies

With MTO Strategy 20 there is no sales forecast. Nothing is stocked prior to receipt of the sales
order. Once the sales order is entered MRP triggers you to procure all BOM levels and place the
FERT in sales order segmented inventory.

With MTO Planning without Final Assembly Strategy 50 sales are forecasted. You can
choose to stock some/all ROHs and some/all HALBs prior to the receipt of the sales order. Once
the sales order is entered MRP triggers you to procure the remaining ROHs, HALBs and the
FERT and place it in sales order segmented inventory.
With MTS Net Requirements Planning Strategy 10 sales are forecasted. You stock the FERT
as anonymous inventory based on forecast. The sales order has no effect on MRP.

With MTS Planning with Final Assembly Strategy 40 sales are forecasted. You stock the
FERT as anonymous inventory based on forecast. If there is insufficient FERT stock when the
sales order is entered, MRP will trigger you to procure all BOM levels until the extra FERTs are
stocked. So these extra sales orders trigger procurement of all BOM levels.

MTS Planning without Final Assembly Strategy 52 is the close-cousin of MTO Strategy 50.
Sales are forecasted. You can choose to stock some/all ROHs and some/all HALBs prior to the
receipt of the sales order. Once the sales order is entered MRP triggers you to procure the
remaining ROHs, HALBs and the FERT and place it in anonymous inventory.

Therefore, the SAP Definition 1: You can decide if production is triggered by sales orders (make-
to-order production), or if it is not triggered by sales orders (make-to-stock production) is not
correct.

Definition 2 – Segmentation of Finished Goods Inventory

Here is the Stock Overview of a MTO finished good material C-1100:

Stock Overview for a MTO material

If you double click on the line “Sales Order Stock” you see that 30 PC of the 77 PC are tied to
sales order 242; 17 PC are tied to sales order 509 and so on. So, the inventory is segmented by
sales order. This segmentation defines make-to-order!
 Sales Order Stock

Now here is the Stock Overview of a MTS finished good material 578:

Stock Overview for a MTS material

Notice that there is no line “Sales Order Stock” under the storage location 0001.

In summary, with MTO production the resulting inventory is tied to a sales order; in MTS the
inventory is not tied to a sales order. Therefore, segmentation of inventory by sales order is the
only true determinant for make-to-order.

Note that it is possible for a material to exhibit both MTO and MTS behaviours. Manufacturers of
sanitary appliances (toilets) are MTS but once in a while a customer will request toilets without
the manufacturer’s logo stamped on them, which is the normal practice in the industry. So they
switch to MTO for this sales order/item so that the stock is kept separate.
Conclusion
Because there is confusion in the industry as to the definitions of make-to-order and make-to-
stock you are well advised to ask several questions and look in your client’s SAP system before
deciding what type of production they run. You don’t want to start off on the wrong foot with your
client!

In case of MTS, if you do not want to consider sales orders then you can use strategy 10 or
11....settings in the material ma0ster MRP3 view as shown below.....

In case of MTO use planning strategy 20 and make settings as shown below.....

as these are standard planning strategies no need to make any configuration....If you want to use
both planning strategies for same material then check the link posted by Mr. Caetano

Using two planning strategies for the same material

SPRO --> IMG --> Production --> Demand Management --> Planning Strategy --> Define
Strategy

Different Strategies used:

10 - MTS (net requirement calculation)

11 - MTS (Gross requirement calculation)

20 - MTO (Make to Order)

25 - MTO with Configurable Material

30 - Production by lot size

40 - Planning with final assembly

50 - Planning without final assembly

many strategies used based on the business requirement.

Planning Reqmts type for Reqmt type of Name
strategy indep.reqmts customer reqmt
00 No planning / no requirements transfer
10 LSF KSL Make-to-stock production
11 BSF KSL Make-to-stock prod./gross reqmts plng
20 KE Make-to-order production
21 KP Make-to-order prod./ project settlement
25 KEK Make-to-order for configurable material
26 KEL Make-to-order for material variant
30 LSF KL Production by lot size
40 VSF KSV Planning with final assembly
50 VSE KEV Planning without final assembly
51 VSE KPV Plng w/o final assembly / project settl.
52 VSE KSVS Plng w/o final assem. w/o make-to.order
54 VSE KEKT Planning variants
55 VSE KELV Planning variants w/o final assembly
56 VSE KEKS Characteristics planning
59 VSEB Planning at phantom assembly level
60 VSEV KEVV Planning with planning material
61 VSEV KPVV Plng with plng material / project settl.
63 VSEV KSVV Planning w.plng material w/o mke-to-ord.
65 VSEV ELVV Planning variants with planning material
70 VSFB Planning at assembly level
74 VSEM Plng at assembly lvl w/o final assembly
80 KPX Project settlement for non-stock items
81 KMSE Assembly processing with planned orders
82 KMFA Assembly processing w. production orders
83 KMNP Assembly processing with networks
84 SERA Service orders
85 KMPN Assembly processing with network/project
86 KMPA Filling with process orders "Assembly"
89 VSE KMSE Assembly proc. w. characteristics plng