Video 01 - SAP S/4HANA Production Planning (PP) Module training - Introduction to SAP and PP

Summary

The script is a comprehensive introduction to Enterprise Resource Planning (ERP) systems, focusing on SAP. It covers the basics of ERP, the significance of integration and standardization in business processes, and the market dominance of SAP. The script details SAP's history, its comprehensive and integrated solutions, and its adaptability to various industries and business sizes. It also outlines SAP's functional and technical modules, emphasizing the PP module for production planning, which supports manufacturing activities from planning to execution. The implementation landscape of SAP, involving development, quality, and production systems, is also discussed.

Takeaways

• 😀 ERP stands for Enterprise Resource Planning, a tool used by organizations to integrate various business processes into a centralized system.
• 🔍 The primary purpose of ERP is to integrate business processes, standardize systems across locations, and provide overall control of the organization.
• 📈 ERP systems like SAP are crucial for better resource utilization, faster communication, and quick decision-making within an organization.
• 🌟 SAP is the leading ERP product in the market, holding over 60% of the market share and serving more than 30,000 companies worldwide.
• 📚 SAP, which stands for Systems, Applications, and Products in Data Processing, was founded in Germany in 1972 and is currently the fourth largest software company globally.
• 🛠️ SAP offers comprehensive functionality, is designed for all types of businesses, supports multinational operations, and has an open system architecture for integration with third-party applications.
• 🔧 SAP is known for its modular and customizable nature, allowing companies to adapt the system to their specific needs and industry best practices.
• 🏭 The SAP PP module, or Production Planning module, supports planning and manufacturing functions, helping manage the full range of manufacturing activities within a company.
• 🔗 SAP PP module is fully integrated with other SAP modules like SD, MM, QM, FI, and PM, creating critical links between sales, production, and procurement.
• 📊 The implementation landscape of SAP typically involves a development server for configuration, a QA system for testing, and a production system for live operations.

Q & A

What is the primary purpose of an ERP system in a manufacturing industry?

The primary purpose of an ERP system in a manufacturing industry is to integrate all business departments and functions using a centralized system, allowing for better control, reporting, and resource utilization across the organization.

What are the key benefits of using an ERP system according to the script?

The key benefits of using an ERP system include integration of business processes, standardization of systems across locations, overall control of the organization, better reporting, and best utilization of resources such as manpower, materials, and machines.

Why does the script emphasize the importance of SAP as an ERP solution?

The script emphasizes SAP as an ERP solution because it holds more than 60% of the market share, is the number one ERP in the world, and offers integrated solutions, comprehensive functionality, support for multinational and multi-currency operations, and is suitable for businesses of any size.

What does SAP stand for and where was it founded?

SAP stands for Systems, Applications, and Products in Data Processing, and it was founded in Germany in the year 1972.

How does the script describe the functionality of SAP in relation to business processes?

The script describes SAP as a business software package designed to integrate all areas of a business, including various departments and functions such as purchasing, production, sales, quality control, HR, finance, and customer service.

What are the two types of modules in SAP and how do they differ?

The two types of modules in SAP are functional modules and technical modules. Functional modules handle business processes like sales, production planning, and finance, while technical modules manage backend programming and system configuration.

What is the role of the PP module in SAP as described in the script?

The PP module in SAP supports planning and production functions, including managing the full range of manufacturing activities from planning to execution. It also creates critical links between sales, production, and procurement, and is fully integrated with other SAP modules.

What is the typical implementation landscape for SAP systems as mentioned in the script?

The typical implementation landscape for SAP systems involves three servers: a development server for designing and configuring, a QA system for user testing, and a production system for live operations.

How does the script explain the integration of SAP with other business functions and third-party systems?

The script explains that SAP is an open system that can be integrated with other business functions and third-party systems, allowing for comprehensive data capture and enterprise data model integration.

What are some of the reasons why SAP is considered the number one ERP system according to the script?

SAP is considered the number one ERP system due to its integrated solutions, comprehensive functionality, support for multinational and multi-currency operations, open system architecture, client-server architecture, suitability for any business size, user-friendliness, industry best practices, modular and customizable design, shorter implementation time, industry-specific solutions, and high scalability.

Outlines

00:00

📈 Introduction to Enterprise Resource Planning (ERP)

The script introduces the topic of ERP, focusing on SAP as a leading ERP system. It discusses the need for ERP in integrating various business departments such as purchasing, production, sales, and HR within a company. The script outlines the agenda for the conference, which includes an overview of ERP, an introduction to SAP, its functional and technical modules, implementation landscape, and a specific focus on the SAP Production Planning (PP) module. The importance of ERP in standardizing business processes across different locations and providing better control and reporting within an organization is emphasized.

05:00

🌍 Global Reach and Dominance of SAP in the ERP Market

This paragraph delves into the global presence and dominance of SAP in the ERP market, holding over 60% market share. It highlights that SAP, founded in Germany in 1972, serves more than 10 million users across 30,000 companies. The script mentions that SAP offers 21 industry solutions and has a vast partner network. It underscores the reasons for SAP's success, including its integrated solutions, comprehensive functionality, support for multinational operations, and open system architecture that allows integration with third-party applications. The paragraph also touches on SAP's scalability and industry-specific solutions, making it suitable for businesses of all sizes.

10:04

🔧 SAP's Modular Architecture and Customizability

The script explains that SAP is a comprehensive business software package designed to integrate all areas of a business. It highlights SAP's modular architecture, which includes both functional and technical modules. Functional modules like Sales and Distribution (SD), Materials Management (MM), and Production Planning (PP) cater to specific business processes, while technical modules handle backend programming and system configuration. The paragraph emphasizes SAP's flexibility, allowing for customization to fit the unique needs of different industries and businesses. It also mentions the ease of use, industry best practices, and shorter implementation times as advantages of SAP.

15:05

🛠️ SAP's Technical and Functional Modules Detailed

This paragraph provides a detailed look at SAP's functional modules, which manage business processes such as sales, materials management, production planning, and quality management. It also covers the technical modules that support the backend programming and system architecture. The script outlines the typical SAP implementation landscape, which includes development, quality assurance, and production servers. Each server serves a specific purpose in the implementation and operation of the SAP system, from designing and configuring to live operations and user activities.

20:05

🏭 Deep Dive into SAP's Production Planning (PP) Module

The script focuses on the SAP Production Planning (PP) module, which supports planning and production functions in a manufacturing company. It explains how PP module aids in managing the full range of manufacturing activities, from planning to execution and analysis. The paragraph details the end-to-end process flow within the PP module, starting from forecasting and demand management to material requirement planning (MRP) and production execution. It also touches on the integration of PP with other SAP modules like Sales and Distribution (SD), Materials Management (MM), and Finance (FI/CO), emphasizing the interconnected nature of SAP's ecosystem.

25:06

🔄 Overview of Production Execution and Integration in SAP PP Module

The final paragraph provides a high-level overview of the production execution process within the SAP PP module. It describes how planned orders from MRP are converted into production orders, and the subsequent steps of material and machine availability checks, order release, material procurement, production recording, and final product transfer to the warehouse. The script also mentions the cost calculation by the finance team, which is integrated within the SAP system, highlighting the comprehensive and integrated nature of SAP's approach to production and manufacturing management.

Keywords

💡ERP (Enterprise Resource Planning)

ERP refers to a system that integrates various departments and functions within an organization into a single, unified system. In the script, ERP is described as a tool used by manufacturing industries to manage their business processes, such as purchasing, planning, production, and sales. It allows for the integration of data and processes across different departments, enhancing communication and decision-making. The script mentions that ERP systems like SAP are used to standardize business operations across various locations and to provide better control and reporting within the organization.

💡SAP

SAP stands for Systems, Applications, and Products in Data Processing. It is a leading ERP software that offers integrated solutions for managing business operations. The script emphasizes that SAP is the number one ERP in the world, with a significant market share, and is used by a wide range of industries for its comprehensive functionality and industry-specific solutions. SAP is noted for its ability to integrate with other systems and its modular, customizable nature, which allows it to be tailored to the needs of different businesses.

💡SAP R/3

SAP R/3 is a specific version of SAP's ERP software that was introduced in the 1990s. It is designed to handle the business processes of large organizations. Although the script does not explicitly detail SAP R/3, it is mentioned as part of the introduction to SAP, suggesting that it is a foundational component of the SAP system landscape and is indicative of the evolution of SAP's offerings.

💡Functional Modules

Functional modules in SAP refer to the specific components of the system that handle particular business processes. The script lists several functional modules such as Sales and Distribution (SD), Materials Management (MM), Production Planning (PP), and Human Resources (HR). These modules are designed to manage the day-to-day operations of their respective departments, such as managing sales orders, inventory, production processes, and employee data. The script explains that functional modules are crucial for executing business functions and are integral to the SAP system's ability to integrate and streamline operations across an organization.

💡Technical Modules

Technical modules in SAP are responsible for the backend programming and system architecture that supports the functional modules. The script mentions ABAP (Advanced Business Application Programming) and BASIS (System Administration) as examples of technical modules. These modules are essential for the maintenance, customization, and integration of the SAP system with other applications. They ensure that the system operates efficiently and securely, providing the technical foundation for the functional modules to execute business processes.

💡SAP Implementation Landscape

The SAP implementation landscape refers to the structure and environment in which SAP systems are deployed and operated. The script describes a typical landscape that includes development, quality assurance (QA), and production systems. This landscape is designed to support the different stages of SAP system usage, from development and configuration to testing and live operations. The script emphasizes the importance of this landscape in ensuring that SAP systems are robust, reliable, and meet the business needs of the organization.

💡SAP PP Module

The SAP Production Planning (PP) module is a functional module within the SAP system that focuses on planning and executing production processes. The script explains that the PP module supports activities such as demand forecasting, material requirements planning (MRP), and production order creation. It is fully integrated with other SAP modules and is crucial for managing the manufacturing activities of an organization. The script provides an overview of the PP module's role in linking sales, production, and procurement, and its ability to record, monitor, and track production processes.

💡Integration

Integration in the context of SAP refers to the ability of the system to combine and coordinate data and processes from different departments and functions within an organization. The script highlights that SAP is designed to integrate various business processes, such as sales, purchasing, and production, into a single system. This integration allows for better data flow, improved efficiency, and more effective decision-making. The script also mentions that SAP can be integrated with third-party systems, which extends its capabilities and allows for customization to specific business needs.

💡Industry Solutions

Industry Solutions in SAP refer to the specific configurations and functionalities that are tailored to the needs of different industries. The script notes that SAP offers 21 industry solutions, which means that the software can be adapted to the unique requirements of various sectors, such as automotive, pharmaceuticals, chemicals, and beverages. This customization allows organizations to optimize their use of SAP, ensuring that the system aligns with their industry's best practices and specific operational needs.

💡Customization

Customization in SAP refers to the ability to modify and adapt the software to meet the specific requirements of a business. The script emphasizes that SAP is a modular and customizable system, which means that organizations can tailor the software to fit their unique business processes and operational needs. This flexibility is a key advantage of SAP, as it allows the system to be scaled and adjusted as the business evolves, ensuring that the software remains relevant and effective.

Highlights

Introduction to SAP ERP, including its definition and importance in integrating business processes.

Explanation of various ERP products in the market and the dominance of SAP with over 60% market share.

History of SAP, founded in Germany in 1972, and its growth to become the fourth largest software company.

SAP's capabilities in providing integrated solutions and comprehensive functionality across different industries.

SAP's adaptability to businesses of all sizes and its user-friendly interface.

The modular and customizable nature of SAP, allowing for industry-specific solutions.

SAP's technical modules and functional modules, including their roles in the system.

Description of the typical SAP implementation landscape, involving development, quality, and production systems.

Overview of the SAP PP (Production Planning) module and its role in planning and production functions.

The integration of SAP PP module with other SAP modules like SD, MM, QM, FI, and PM.

The process flow from forecasting to production execution within the SAP PP module.

Material requirement planning (MRP) within the SAP system and its impact on production planning.

Execution of production orders and the recording of production activities in the SAP system.

The critical links created by SAP PP module between sales, production, and procurement.

End-to-end flow of the PP module from demand management to material procurement and cost calculation.

Transcripts

this conference will now be

recorded okay so uh uh so we'll be

starting our first topic today that is

sap Oru okay so the topics that we are

going to cover they

are we will

see uh what is

Erb okay we will see what is

Erp okay what is enterprise resource

planning what are the various Erp

products in the market okay we'll

understand that then we will see

introduction to SCP we'll understand

what is SCP okay sap R3 applications we

will see that okay then sap functional

modules what are the different sap

functional modules we have we will cover

that also then sap technical modules

okay and then sap implementation

landscape what is a typical

implementation landscape we will see and

then we will cover uh introduction to

sap PP module so what is sap production

planning module what functionalities it

offers all those things we will discuss

so these are the topics we will be

discussing in the in the uh what do you

say uh sap over part okay so first we'll

start with the introduction to Erp okay

so basically any any organization any

typical manufacturing industry normally

to run their business processes they use

a Erp system okay normally okay Erp is

enterprise resource planning tool okay

enterprise resource planning tool okay

so in this enterprise resource planning

tool so before going to that this we

discussed

yesterday okay so in any typical

manufacturing company uh normally you

will have different departments we

discussed this yesterday as a part of

high level over you so like in any

company you have a purchasing department

okay

purchasing department you will have a

planning

department planning and you have

production you will have production

Department okay then you will have uh

sales

department okay then you will have uh

quality Department quality

control okay and then you have

engineering department or you call it as

maintenance maintenance department okay

so you will have all these

departments okay so then you have uh HR

okay and then you have

Finance finance department okay and then

you have uh what do you call uh projects

Department we discussed all these things

yesterday okay okay and then you have

customer

service customer service okay

then uh of course

Warehouse you have a warehouse uh simply

call it as stores somebody yesterday was

saying stores you have these

departments so uh we covered almost

everything planning production

sales uh maintenance HR customer

service okay uh so now any typical

manufacturing industry will have all

these departments all these business

functions so to integrate all these

business departments business functions

they will use a centralized system

called Erp enterprise resource planning

tool okay so what they do is these

departments every day they will enter

their information their day-to-day

business data in the centralized system

so so that other departments can access

the this data other departments can

access this data okay suppose let's say

uh Warehouse Department person every day

he will enter what is a stock present in

his Warehouse what is a stock issued

what is a stock received how much stock

received how much stock issued all that

information he will enter the system

that information will be accessed by

other departments in the company okay so

to have a a common integrated system

they use Erp enterprise resource

planning to okay so that's what we are

discussing now

so uh so basically they need Erp to

Integra integration of business

processes that's what we just discussed

and standardization of systems across

locations so a a typical manufacturing

company or any company can have their uh

businesses in across different places

okay like in different cities in

different states okay in different

countries if it is a global company it

it will have its operations in different

countries so to

standardize all those businesses all

those locations they will use a Erp

system okay and for overall control of

the organization so once you have the

information in a single system you will

have a better control better control of

the organization okay better controlling

of business

processes okay and better reporting

system so once you have the information

in a single system you can take the

reports whenever you want okay if you

have multiple systems suppose let's

say Warehouse Department people are

using a separate system purchasing

department using a separate system so

then the reporting will become a problem

so if all the Departments are managing

their data in a single system then you

will have better reporting basically

okay and of course best utilization of

resources man material and

machines so once you have a single

system everything will be controlled you

have quick your communication will be

faster and decision making will be quick

so you will have a better utilization of

resources the example which we covered

yesterday one customer comes ask for a

product then salesperson instead of

contacting the warehouse waiting for his

reply salesperson can immediately log to

the system Erp system and then

immediately he can check the stock and

immediately he can confirm to the

customer so all those will have in the

system if you have a a central Erp

system okay so that is the reason most

of the companies use Erp system

enterprise resource planning system okay

so now we will see what are the various

Erp products in the market so normally

these are the Erp products in the market

so

basically we have

SCP okay and also so there are other Erp

products in the market Oracle you might

have heard of Oracle we have ban people

soft JD Edwards Marshall okay there are

a lot of Erp products out there cble and

Microsoft Dynamics I I believe you might

have heard of some Erp products at least

you might have heard of Oracle Oracle

okay but among all the Erp products in

the market market sap holds more than

60% of the market share sap is the

number one Erp in the world okay saps is

a number one among all the erps in the

in the world

okay so now we will start what is sap we

will understand what is sap introduction

to sap okay so basically sap stands for

sap stands for systems applications and

products in data processing this is the

full form of sap normally always you

should call it as sap should never call

as sap some people pronounce it as sap

sap you should not call as sap you

should always pronounce it as sap okay

this sap is founded in Germany in the

year

1972 okay it's basically from German

country Germany okay as of now there are

10 million users are there 30,000

companies already installed sap they're

working on SCP to run their day-to-day

businesses their day-to-day their

company operations

of organization operations they are

using SCP so they are

basically uh on SCP basically and there

are thousand partners th000 partners of

sap and sap already come up with 21

industry Solutions so for each industry

each type of Industry sap has its own

Solutions okay like we discussed

yesterday like

automobiles uh uh what do you call

Pharmaceuticals chemicals uh beverage

companies so different types of

Industries they have come up with uh

industry specific Solutions okay they

have customers worldwide worldwide and

mostly Fortune founded organizations are

using SCP Fortune founded organizations

means Top Notch companies in their in

their in their domain in their

Industries suppose let's say if you take

automobiles automobiles you know Toyota

Toyota is the

largest biggest and largest automobile

company in the world in the in the

automobiles suppose if you take

Pharmaceuticals you might be heard of

notis okay uh what do you call uh Glo

okay ran baxi these kind of companies

and if you take

uh uh what do you call uh Power kind of

Industries G so all these kind of

Industries they're already on sap

they're using sap so as of now sap is

the fourth largest software company in

the world

okay like after Microsoft IBM sap is a

fourth largest software company okay the

sap system is a business software

package designed to integrate all areas

of a business that's what we just

discussed so what what is sa basically

it's a business software package

designed to integrate all areas of a

business what are what are all the areas

of a business the one which we just

discussed

okay these are the ones all areas of a

business these are the

ones in any typical company

Manufacturing Company you have all these

ones so basically it integrates all

those things that's right

okay okay so now let's move on uh so now

why why sap is a number one when

compared you have lot of Erp products in

the market but among all those things

why sap has become number one okay so

the reasons are these ones it it

provides Integrated

Solutions

okay it provides integrated solution

okay so once you have sap everything is

integrated all the areas of the

organization all are integrated okay

integrated okay that's what so it it

provides integrated solution and

comprehensive functionality that means

it is designed to execute any

functionality in the system purchasing

uh production sales Warehouse okay any

any kind of

functionalities so it it provides

solution for all the functionalities in

the system and designed for all types of

businesses that's right any type of

Industry automobile pharmaceutical food

beverage okay uh

Airlines okay and um what do you call

Island gas okay and food and apparel

okay any any kind of industry retail

retail IND Industries any kind of

Industries any type of business can can

use SCP that's how they designed it okay

and it supports multinational multic

currency multi

currency okay and it have the Enterprise

data model all the Enterprise

information you can capture in the

system and it is open system it can be

integrated with any other third party

systems okay suppose let's say if your

company uh even though they have a CP

they want to use a third party

application for a particular function

okay let's say for for purchasing they

want to use a separate third party

system then you can integrate our SAP

with the third party system so it's a

open system basically okay and you have

all the client and server architecture

this we will discuss later it's a

technical one basically so these are the

reasons due to which sap has become

number one okay sap is suitable for any

size of business from small to large

size

companies okay so normally in the market

in the market there are some large size

companies there are small size companies

there are medium siiz companies so any

size of company can Implement SCP and

they can use SCP and it is simple and

user friendly okay it's very simple to

use and user friendly and it it comes up

with the industry best practices and

integrated Solution that's what I

explained for any business function they

have a solution ution they can execute

that business function in the system

like let's say I want to do purchasing

entire purchasing activity I can execute

in the system suppose let's say I want

to production production execution

entire production execution you can

execute in sap so they have industry

best practices with integrated solution

okay and it's a modular one and

customizable so it comes as a prepackage

but wherever required you can customize

this customize according to your needs

okay let's say you have a package you

have the system okay it comes up with

some standard solution but whereever

required you can modify it you can

change it you can customize it okay and

it have shorter implementation time to

implement sap it take less time short

time okay and Industry specific and

supports all types of Industries that's

what I told so for each type of Industry

they have come up with the industry

specific solution and it's supposed any

type of Industry that's what I just

explained

automobiles oil and gas pharmaceutical

chemical food food food Industries

beverage Industries which manufacture

soft drinks or uh this one hot drinks

beer wiy any any any type of Industry

can use SCP and higher scalability so as

per your current organization needs you

can uh have the increase the data in the

system and everything you can do

so these are the reasons due to which

sap has become number one Erp in the

world when compared with other

erps

okay so now we will talk about sap

modules so basically in sap you have two

types of modules functional modules and

Technical

modules okay functional modules take

care of the business processes the

business processes are like purchasing

sales man ufacturing planning okay these

kind of things Finance these kind of

things whereas technical modules take

care of the backend programming it is

like a programming you might have heard

of abap basis so those comes under

technical modules technical modules take

care of the backend programming whereas

functional modules take care of the

respective business processes okay so

now we will discuss about the

the sap functional modules so these are

the functional modules in sap first SD

sales and distribution okay mm materials

management okay PP production planning

these are modules qm quality management

PM plan maintenance I'll explain this HR

Human Resources okay and then you have

project systems BS and these are Finance

one fi controlling Asset Management

these are Finance ones okay on top of

that you have workflow and Industry

Solutions so basically these functional

modules will take care of the take care

of the respective business processes

okay so suppose if you see

here you see here what we discussed

okay so normally what happens is for

warehouse activities they have a module

called W warehouse management so

Warehouse people will use this module to

execute their day-to-day functions so

for purchasing it is MM materials

management for planning PP for

production planning PP and also

manufacturing PP okay and for sales

there is a module called SD sales and

distribution for quality control qm so

quality Department people will use this

module in the sap to execute their

day-to-day business functions for

maintenance engineering you have a

module called PM plan

maintenance plan maintenance and HR

people use a module called HR now it is

called as what you call after some time

it is modified to it is renamed to HCM

now it has become success factors

they're using some success factors that

is HR Finance people will use

ficu ficu fin accounting and controlling

and projects Department people will use

a module called PS project systems and

customer service people customer service

modu

CS basically functional modules will

take care of the business processes

industry business processes to execute

their day-to-day business functions they

will use these modules suppose let's say

production team production Team every

day to record what is a quantity they

produced what is product what is the

quantity they produced what are the

machines used during production when

they started production when they

completed production what is a output

what is a loss scrap all these

information they will enter in the

system using this PP model so that's

right so the functional modules will

take care of the business

processes business processes

okay so now let's move on and now we

will talk about system landscape

okay so normally whenever they Implement

sap system they will normally use three

three servers basically okay you will

have development

server you will have development server

development system where you design and

configure everything this is called

development system normally we will be

doing as a functional consultant we will

be doing all these development in the

system okay okay once this development

is done you will move all these to QA

system quality system so in the quality

system the users will test they will

test everything in the quality system

once the testing is completed all these

are moved to the production system

production system is the live system

day-to-day system the users will be

doing their their day-to-day activities

in this system production system live

system okay so this is the typical uh

sap implementation in sap landscape

normally okay in the in the subsequent

classes later on we will discuss this in

detail okay what exactly in the

development we will be doing what

exactly we'll be doing in the quality

system what exactly we will be doing in

the production system we will understand

okay so now we will talk about PP module

okay so now we understood all the

modules in a so now we will talk about

PP module so what is PP module what are

the functionalities offered in PP module

everything we will discuss now okay so

basically sap PP

module sap PP module supports the

planning and production functions

occurring in day-to-day business

operations so basically PP module in sap

it's it supports basically planning both

planning and manufacturing production

both okay so in any typical

manufacturing company before starting

production you need to do planning okay

how much quantity we need to produce

okay to produce that quantity what are

the input materials required and input

materials quantity all that planning has

to be done okay so that it supports

planning planning and production

manufacturing

execution how much quantity we are we

produced okay what is a loss what is the

output we got okay okay what are the

machines used during production when did

the production started okay what is the

start time start date start time finish

date finish time all those things they

will enter using PP module PP module

supports Bas basically both planning and

production it helps to manage the full

range of manufacturing activities from

planning to execution and Analysis in a

single end to system that's what that's

what we just discussed okay all all

manufacturing activities from planning

to execution in the same system okay

Sapp helps to record Monitor and tracks

all the activities of manufacturing and

production processes of a company that's

right you you record everything you

record all your production activities

information you monitor periodically

okay and you track everything you take

reports you monitor everything you can

do it in the system sap PP module

creates critical links between sales

production and

procurement so it's it's a link

basically okay that link and all we will

discuss in detail in the subsequent

classes okay and it is fully integrated

with other sap modules other sap modules

like SD mm qm fic and PM sap have

integration with all the other

modules it's not a standalone module

whatever you do in our PP it will have

effect on other modules and also same

time if they do some activity in their

respective modules like in sdmm that

will have some effect on our PP module

so it's a integrated one what is that

integration in detail when we go to the

subsequent classes we will discuss okay

so this is the uh uh overview of pp

okay so if you see this you will see the

end to endend flow of high level end to

end flow of BP module so basically what

happens is in the organization

first first they will do the

forecasting okay first they do the

forecasting okay to start the production

if if they are in the make to stock

environment if they manufacture based on

certain forecast first they will do the

forecasting okay they take the previous

sales data sales information of a

product based on that they will come up

with a future forecast okay so that

forecasting they will do and that they

will enter into the system sap system

has planned independent requirements

demand they will enter the demand at the

same time from the customers from the

sales and distribution module they

receive orders customer orders sales

orders this forcast is a just high level

forecast it's not the exact order we are

assuming that we may have that that much

of sales in the future that is a

forecast

assumption but from the sales module the

exact requirement will come from the

customer sales holders they will enter

this into the demand demand Management

in the system after that they will run

MRP material requirement planning now

you know the demand now accordingly you

have to start the production so but

let's say you have some stock

already okay so considering this system

will MRP will propose you how much you

need to produce

okay so once MRP is done that is till

this part it is

planning first portion is planning this

is planning activity this activity is

planning so once planning is completed

we will go to the production production

so that planned orders whatever MRP

creates they will convert to production

order and then the production execution

will start production execution will

start production execution like they

create production order okay after that

they will check all the material

availability they will check all the

material availability okay and what do

you call uh after that they will check

the machine

availability okay after the machine

availability is checked they will

release the order and then they will

take the materials from the warehouse

raw materials from the warehouse to

produce a product they need raw

materials right these raw materials they

will take it from the warehouse okay

once the they take the metals they will

produce the product and then they will

enter all the production information in

the system and then finally they will

transfer the manufactured product to the

warehouse warehouse so that part

everything we will discuss in the system

okay and the materials required for

production raw materials required for

production those are purchased by mm

team mm team will purchase those

materials okay at the same time there

will be a cost calculation will happen

Finance team will do all the production

cost calculation everything they will do

it in the system okay so this is the

high level overview of

the high level over of the pp moduel

basically high level over okay so that's

one so that is on the sap introduction

to Erp and SCP over okay