Video 01 - SAP S/4HANA Production Planning (PP) Module training - Introduction to SAP and PP
Summary
TLDRThe 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
- π ERP stands for Enterprise Resource Planning, a tool used by organizations to integrate various business processes into a centralized system.
- π The primary purpose of ERP is to integrate business processes, standardize systems across locations, and provide overall control of the organization.
- π ERP systems like SAP are crucial for better resource utilization, faster communication, and quick decision-making within an organization.
- π SAP is the leading ERP product in the market, holding over 60% of the market share and serving more than 30,000 companies worldwide.
- π 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.
- π οΈ 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.
- π§ SAP is known for its modular and customizable nature, allowing companies to adapt the system to their specific needs and industry best practices.
- π The SAP PP module, or Production Planning module, supports planning and manufacturing functions, helping manage the full range of manufacturing activities within a company.
- π 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.
- π 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
π 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.
π 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.
π§ 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.
π οΈ 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.
π 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.
π 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.
Mindmap
Keywords
π‘ERP (Enterprise Resource Planning)
π‘SAP
π‘SAP R/3
π‘Functional Modules
π‘Technical Modules
π‘SAP Implementation Landscape
π‘SAP PP Module
π‘Integration
π‘Industry Solutions
π‘Customization
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
5.0 / 5 (0 votes)