SAP PP Interview Question Answers By SAP Trainings Online
SAP PP Interview Question Answers have been designed for experienced and freshers, here you will get acquainted with the nature of questions that may encounter during interview for job role in SAP PP. SAP PP training by SAP Trainings Online makes you ready for the industry challenges and prepare your career as a successful SAP consultant.
What is SAP production planning? And 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 centre and routing and keep it in a separate component.
What is the 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.
Mention what are the production processes 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
What are the elements in organization 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.
What are the SAP modules PP is integrated with? Explain integration 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 (see SAP MM training for more details), 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 MM (Material management)
- 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
Explain 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.
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
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.
What are the important characteristics 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 the 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:
You can schedule the operations in Production order as per operating times in Routing and formulas mentioned in work center.
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.
You can find current capacity and future capacity requirements stored in work center.
Explain what happens to planned after it has been converted into production order?
When planned order is converted to the production order, the planned orders 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
- Measurement instruments
What are different planning strategies?
Make to stock 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. learn about sales order process from SAP SD training.
What are the different parameters that are required to run MRP?
MRP parameters are required to run material requirement planning to meet Planned Independent Requirement PIR and to use Routing information. Different MRP parameters can be used
In this run system consider those material which has undergone some changes from the previous MRP run.
NetChange in planning horizon
This run considers the requirement in predefined planning horizon and not like net change which check the future requirements.
In this run, system consider only those material which has undergone some changes from their last MRP run.
In this run, system consider all the material irrespective of changes and it is time consuming and not common in Production planning.