Production Planning with SAP S/4HANA
3rd Edition
Published on 1. September 2025
Book
Hardback
1084 pages
978-1-4932-2673-3 (ISBN)
Description
Configure and use SAP S/4HANA for discrete, process, and repetitive manufacturing! Walk through every aspect of production planning, from defining work centers and creating control recipes to releasing process orders and scrapping materials. Then dive into batch management, S&OP, DDMRP, pMRP, production engineering and operations, and more. This comprehensive guide is full of industry examples to help you maximize your production planning!
1) Discrete, process, and repetitive manufacturing
2) Batch management
3) Sales and operations planning (S&OP)
4) Demand management
5) Demand-driven replenishment (DDR)
6) Material requirements planning (MRP)
7) Predictive material and resource planning (pMRP)
8) Capacity requirements planning
9) Production planning and detailed scheduling (PP/DS)
10) Production engineering and operations
11) Kanban
12) Reporting and analysis
More details
Other editions
Previous edition
Jawad Akhtar
Production Planning with SAP S/4HANA
Book
09/2021
2nd Edition
SAP PRESS
€89.95
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Person
Author
Jawad Akhtar is an SAP logistics and supply chain management expert with a focus on business sales and delivery. He earned his chemical engineering degree from Missouri University of Science and Technology in the United States. He has 20 years of professional experience, 14 of which have been spent working with SAP systems. He has experience working on several large-scale, end-to-end SAP project implementation lifecycles, including rollouts. He works with SAP clients to help them identify root causes of business issues and address those with the appropriate SAP products and change management strategies. He now focuses on next-generation SAP products such as SAP S/4HANA, SAP IBP, SAP Ariba, and SAP Hybris. Akhtar is also a technical advisor to SAPexperts, an ASUG speaker, and a contributor to SearchSAP, where his "Ask the Expert" column shares real-life lessons and best practices gleaned from SAP implementations, ways to avoid common project pitfalls, and features of various SAP products that solve key business issues.
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Content
... Acknowledgments ... 27
... Preface ... 29
... Goals of This Book ... 29
... Target Audience ... 30
... Structure and Content ... 31
PART I ... Core Production Planning Concepts ... 35
1 ... Introduction to Production Planning with SAP S/4HANA ... 37
1.1 ... Production Planning and Control ... 37
1.2 ... Comparison Table of Production Types ... 50
1.3 ... Production Planning Features in SAP ERP and SAP S/4HANA: A Comparison ... 54
1.4 ... SAP Integrated Business Planning for Supply Chain ... 56
1.5 ... Summary ... 58
2 ... Organizational Structure in SAP S/4HANA ... 59
2.1 ... Breaking Down the Structure into Units ... 59
2.2 ... SAP Calendar ... 68
2.3 ... Summary ... 71
PART II ... Production Planning Configuration ... 73
3 ... Discrete Manufacturing Configuration ... 75
3.1 ... Material Master ... 76
3.2 ... Bill of Materials ... 77
3.3 ... Work Center ... 82
3.4 ... Routing ... 93
3.5 ... Production Order Configuration ... 94
3.6 ... Order Type-Dependent Plant Parameters ... 99
3.7 ... Production Scheduling Profile ... 103
3.8 ... Default Values for the Generation of Operations ... 105
3.9 ... Availability Check ... 106
3.10 ... Scheduling ... 111
3.11 ... Reduction Strategy ... 115
3.12 ... Confirmation ... 116
3.13 ... Reasons for Variances ... 124
3.14 ... Trigger Points ... 125
3.15 ... Defining Print Control ... 125
3.16 ... Background Jobs ... 126
3.17 ... Summary ... 127
4 ... Process Manufacturing Configuration ... 129
4.1 ... Master Data in Process Industries ... 130
4.2 ... Order Type-Dependent Parameters ... 133
4.3 ... Production Scheduling Profile ... 136
4.4 ... Process Management ... 137
4.5 ... Process Messages ... 141
4.6 ... Process Instruction Categories ... 147
4.7 ... Control Recipe/Process Instruction Sheets ... 162
4.8 ... Background Jobs ... 166
4.9 ... Process Manufacturing Cockpit ... 168
4.10 ... Summary ... 170
5 ... Repetitive Manufacturing Configuration ... 171
5.1 ... Repetitive Manufacturing Profile ... 172
5.2 ... Scheduling Planned Orders ... 183
5.3 ... Display ... 184
5.4 ... Material Staging ... 186
5.5 ... Global Settings for Confirmation and the Logistics Information System ... 187
5.6 ... Operational Methods Sheet ... 188
5.7 ... Summary ... 189
PART III ... Production Planning Workflows ... 191
6 ... Production Planning for Discrete Manufacturing ... 193
6.1 ... Process Overview ... 194
6.2 ... Master Data ... 195
6.3 ... Production Order Management ... 230
6.4 ... Releasing Production Orders ... 248
6.5 ... Printing ... 251
6.6 ... Material Withdrawal ... 253
6.7 ... Confirmation ... 260
6.8 ... Goods Receipt ... 266
6.9 ... Postprocessing ... 268
6.10 ... Settlement and Completion ... 271
6.11 ... Additional Functions and Information Systems ... 272
6.12 ... Summary ... 276
7 ... Production Planning for Process Manufacturing ... 277
7.1 ... Process Manufacturing Overview ... 278
7.2 ... Master Data in Process Manufacturing ... 279
7.3 ... Characteristics ... 288
7.4 ... Process Management ... 292
7.5 ... Process Order Execution ... 306
7.6 ... Process Management in Action ... 307
7.7 ... Execution Steps ... 317
7.8 ... Process Message Evaluation ... 329
7.9 ... Process Manufacturing Cockpit ... 330
7.10 ... Resources Network ... 331
7.11 ... Summary ... 335
8 ... Production Planning for Repetitive Manufacturing ... 337
8.1 ... Overview ... 338
8.2 ... Master Data ... 341
8.3 ... Material Requirements Planning in Repetitive Manufacturing ... 358
8.4 ... Planning Table ... 361
8.5 ... Material Staging ... 371
8.6 ... Production List ... 374
8.7 ... Confirmation ... 375
8.8 ... Reversals and Scrap ... 384
8.9 ... Costing Activities (Cost Object Controlling) ... 389
8.10 ... Heijunka ... 390
8.11 ... Reporting ... 392
8.12 ... Summary ... 393
PART IV ... Production Planning Tools ... 395
9 ... Kanban ... 397
9.1 ... Kanban Overview ... 398
9.2 ... Push-Pull Principle ... 400
9.3 ... Kanban Replenishment Strategies ... 402
9.4 ... Configuring Kanban ... 404
9.5 ... Setting Up Kanban Master Data ... 417
9.6 ... Replenishment with Kanban ... 421
9.7 ... Evaluating and Reporting Kanban ... 449
9.8 ... Summary ... 455
10 ... Batch Management ... 457
10.1 ... Batch Management Overview ... 457
10.2 ... Batch Level and Batch Status Management ... 459
10.3 ... Master Data in Batch Management ... 463
10.4 ... Business Processes of Batch Management ... 468
10.5 ... Batch Determination ... 474
10.6 ... Recurring Inspection and Expiration Dates ... 488
10.7 ... Active Ingredient Management ... 495
10.8 ... Batch Derivation ... 518
10.9 ... Batch Traceability of Work in Process Batches ... 529
10.10 ... Batch Information Cockpit ... 540
10.11 ... Electronic Batch Record ... 542
10.12 ... Summary ... 544
11 ... Sales and Operations Planning ... 545
11.1 ... Standard Sales and Operations Planning ... 546
11.2 ... Flexible Planning ... 564
11.3 ... Version Management ... 585
11.4 ... Forecasting ... 587
11.5 ... Rough-Cut Planning Profile ... 600
11.6 ... Events ... 605
11.7 ... Mass Processing in Sales and Operations Planning ... 610
11.8 ... Standard Analysis in Flexible Planning ... 612
11.9 ... Summary ... 615
12 ... Demand Management ... 617
12.1 ... Elements of Demand Management ... 618
12.2 ... Strategies for Make-to-Stock Production ... 624
12.3 ... Strategies for Make-to-Order Production ... 635
12.4 ... Strategies for Assemble-to-Order ... 641
12.5 ... Strategies for Planning Components ... 646
12.6 ... Production with Variant Configuration ... 649
12.7 ... Creating a Custom Requirement Class ... 652
12.8 ... Business Processes in Demand Management ... 656
12.9 ... Summary ... 669
13 ... Material Requirements Planning ... 671
13.1 ... Process Overview ... 672
13.2 ... Deterministic Replenishment Procedures ... 679
13.3 ... Stochastic Replenishment Procedures ... 691
13.4 ... Configuring Material Requirements Planning Types ... 696
13.5 ... Lot Sizing Procedures ... 699
13.6 ... Rounding ... 707
13.7 ... Scrap ... 709
13.8 ... Safety Stock ... 712
13.9 ... Scheduling ... 720
13.10 ... Procurement Proposals ... 725
13.11 ... Configuration Settings for Material Requirements Planning ... 732
13.12 ... MRP Live ... 735
13.13 ... Stock/Requirements List ... 740
13.14 ... Planning Calendar ... 756
13.15 ... Planning Areas ... 758
13.16 ... Classic Material Requirements Planning ... 764
13.17 ... Types of Planning Runs ... 766
13.18 ... Summary ... 767
14 ... Demand-Driven Replenishment ... 769
14.1 ... Limitations of Current Materials Planning and Replenishment Tools ... 770
14.2 ... Material and Information Flows ... 772
14.3 ... Demand-Driven Material Requirements Planning Basics and Components ... 774
14.4 ... Demand-Driven Material Requirements Planning Setup ... 785
14.5 ... Running Demand-Driven Replenishment ... 796
14.6 ... Summary ... 835
15 ... Predictive Material and Resource Planning ... 837
15.1 ... Basics ... 838
15.2 ... Setup ... 839
15.3 ... Managing pMRP ... 844
15.4 ... Releasing Results to Operative Material Requirements Planning ... 852
15.5 ... Using Flexible Constraints ... 855
15.6 ... Summary ... 856
16 ... Capacity Requirements Planning ... 857
16.1 ... Process Overview ... 858
16.2 ... Capacity Requirements and Capacity Evaluation ... 860
16.3 ... Finite Scheduling ... 875
16.4 ... Dispatching ... 876
16.5 ... Capacity Planning Table ... 890
16.6 ... Summary ... 896
17 ... Production Planning and Detailed Scheduling ... 897
17.1 ... Configuration ... 898
17.2 ... Master Data in PP/DS ... 905
17.3 ... Business Processes ... 920
17.4 ... Heuristics ... 927
17.5 ... Production Planning Run ... 929
17.6 ... Reporting and Monitoring Apps ... 943
17.7 ... Alert Monitor ... 949
17.8 ... Plan Monitor ... 951
17.9 ... Summary ... 955
18 ... Production Engineering and Operations ... 957
18.1 ... Key Terminology ... 959
18.2 ... Configuration Settings and Production Engineering and Operations Setup ... 960
18.3 ... Production Engineering Master Data Setup ... 970
18.4 ... Planning in Production Engineering ... 984
18.5 ... Production Operations ... 989
18.6 ... Reporting ... 1004
18.7 ... Summary ... 1008
PART V ... Monitoring and Evaluating Production Planning ... 1009
19 ... Production Planning Reporting ... 1011
19.1 ... The Basics of Reporting ... 1011
19.2 ... Report Parameters ... 1012
19.3 ... Order Information System Reports ... 1023
19.4 ... Missing Parts Information System ... 1025
19.5 ... Summary ... 1026
20 ... Standard Planning Analysis ... 1027
20.1 ... Discrete Manufacturing/Production Order ... 1027
20.2 ... Process Manufacturing/Process Order ... 1033
20.3 ... Repetitive Manufacturing ... 1033
20.4 ... Additional Analysis Functions ... 1034
20.5 ... Summary ... 1037
21 ... SAP Fiori Apps for Production Planning ... 1039
21.1 ... SAP Fiori Launchpad and SAP Fiori Apps Reference Library ... 1039
21.2 ... SAP Fiori Applications ... 1040
21.3 ... Summary ... 1064
... The Author ... 1065
... Index ... 1067
... Preface ... 29
... Goals of This Book ... 29
... Target Audience ... 30
... Structure and Content ... 31
PART I ... Core Production Planning Concepts ... 35
1 ... Introduction to Production Planning with SAP S/4HANA ... 37
1.1 ... Production Planning and Control ... 37
1.2 ... Comparison Table of Production Types ... 50
1.3 ... Production Planning Features in SAP ERP and SAP S/4HANA: A Comparison ... 54
1.4 ... SAP Integrated Business Planning for Supply Chain ... 56
1.5 ... Summary ... 58
2 ... Organizational Structure in SAP S/4HANA ... 59
2.1 ... Breaking Down the Structure into Units ... 59
2.2 ... SAP Calendar ... 68
2.3 ... Summary ... 71
PART II ... Production Planning Configuration ... 73
3 ... Discrete Manufacturing Configuration ... 75
3.1 ... Material Master ... 76
3.2 ... Bill of Materials ... 77
3.3 ... Work Center ... 82
3.4 ... Routing ... 93
3.5 ... Production Order Configuration ... 94
3.6 ... Order Type-Dependent Plant Parameters ... 99
3.7 ... Production Scheduling Profile ... 103
3.8 ... Default Values for the Generation of Operations ... 105
3.9 ... Availability Check ... 106
3.10 ... Scheduling ... 111
3.11 ... Reduction Strategy ... 115
3.12 ... Confirmation ... 116
3.13 ... Reasons for Variances ... 124
3.14 ... Trigger Points ... 125
3.15 ... Defining Print Control ... 125
3.16 ... Background Jobs ... 126
3.17 ... Summary ... 127
4 ... Process Manufacturing Configuration ... 129
4.1 ... Master Data in Process Industries ... 130
4.2 ... Order Type-Dependent Parameters ... 133
4.3 ... Production Scheduling Profile ... 136
4.4 ... Process Management ... 137
4.5 ... Process Messages ... 141
4.6 ... Process Instruction Categories ... 147
4.7 ... Control Recipe/Process Instruction Sheets ... 162
4.8 ... Background Jobs ... 166
4.9 ... Process Manufacturing Cockpit ... 168
4.10 ... Summary ... 170
5 ... Repetitive Manufacturing Configuration ... 171
5.1 ... Repetitive Manufacturing Profile ... 172
5.2 ... Scheduling Planned Orders ... 183
5.3 ... Display ... 184
5.4 ... Material Staging ... 186
5.5 ... Global Settings for Confirmation and the Logistics Information System ... 187
5.6 ... Operational Methods Sheet ... 188
5.7 ... Summary ... 189
PART III ... Production Planning Workflows ... 191
6 ... Production Planning for Discrete Manufacturing ... 193
6.1 ... Process Overview ... 194
6.2 ... Master Data ... 195
6.3 ... Production Order Management ... 230
6.4 ... Releasing Production Orders ... 248
6.5 ... Printing ... 251
6.6 ... Material Withdrawal ... 253
6.7 ... Confirmation ... 260
6.8 ... Goods Receipt ... 266
6.9 ... Postprocessing ... 268
6.10 ... Settlement and Completion ... 271
6.11 ... Additional Functions and Information Systems ... 272
6.12 ... Summary ... 276
7 ... Production Planning for Process Manufacturing ... 277
7.1 ... Process Manufacturing Overview ... 278
7.2 ... Master Data in Process Manufacturing ... 279
7.3 ... Characteristics ... 288
7.4 ... Process Management ... 292
7.5 ... Process Order Execution ... 306
7.6 ... Process Management in Action ... 307
7.7 ... Execution Steps ... 317
7.8 ... Process Message Evaluation ... 329
7.9 ... Process Manufacturing Cockpit ... 330
7.10 ... Resources Network ... 331
7.11 ... Summary ... 335
8 ... Production Planning for Repetitive Manufacturing ... 337
8.1 ... Overview ... 338
8.2 ... Master Data ... 341
8.3 ... Material Requirements Planning in Repetitive Manufacturing ... 358
8.4 ... Planning Table ... 361
8.5 ... Material Staging ... 371
8.6 ... Production List ... 374
8.7 ... Confirmation ... 375
8.8 ... Reversals and Scrap ... 384
8.9 ... Costing Activities (Cost Object Controlling) ... 389
8.10 ... Heijunka ... 390
8.11 ... Reporting ... 392
8.12 ... Summary ... 393
PART IV ... Production Planning Tools ... 395
9 ... Kanban ... 397
9.1 ... Kanban Overview ... 398
9.2 ... Push-Pull Principle ... 400
9.3 ... Kanban Replenishment Strategies ... 402
9.4 ... Configuring Kanban ... 404
9.5 ... Setting Up Kanban Master Data ... 417
9.6 ... Replenishment with Kanban ... 421
9.7 ... Evaluating and Reporting Kanban ... 449
9.8 ... Summary ... 455
10 ... Batch Management ... 457
10.1 ... Batch Management Overview ... 457
10.2 ... Batch Level and Batch Status Management ... 459
10.3 ... Master Data in Batch Management ... 463
10.4 ... Business Processes of Batch Management ... 468
10.5 ... Batch Determination ... 474
10.6 ... Recurring Inspection and Expiration Dates ... 488
10.7 ... Active Ingredient Management ... 495
10.8 ... Batch Derivation ... 518
10.9 ... Batch Traceability of Work in Process Batches ... 529
10.10 ... Batch Information Cockpit ... 540
10.11 ... Electronic Batch Record ... 542
10.12 ... Summary ... 544
11 ... Sales and Operations Planning ... 545
11.1 ... Standard Sales and Operations Planning ... 546
11.2 ... Flexible Planning ... 564
11.3 ... Version Management ... 585
11.4 ... Forecasting ... 587
11.5 ... Rough-Cut Planning Profile ... 600
11.6 ... Events ... 605
11.7 ... Mass Processing in Sales and Operations Planning ... 610
11.8 ... Standard Analysis in Flexible Planning ... 612
11.9 ... Summary ... 615
12 ... Demand Management ... 617
12.1 ... Elements of Demand Management ... 618
12.2 ... Strategies for Make-to-Stock Production ... 624
12.3 ... Strategies for Make-to-Order Production ... 635
12.4 ... Strategies for Assemble-to-Order ... 641
12.5 ... Strategies for Planning Components ... 646
12.6 ... Production with Variant Configuration ... 649
12.7 ... Creating a Custom Requirement Class ... 652
12.8 ... Business Processes in Demand Management ... 656
12.9 ... Summary ... 669
13 ... Material Requirements Planning ... 671
13.1 ... Process Overview ... 672
13.2 ... Deterministic Replenishment Procedures ... 679
13.3 ... Stochastic Replenishment Procedures ... 691
13.4 ... Configuring Material Requirements Planning Types ... 696
13.5 ... Lot Sizing Procedures ... 699
13.6 ... Rounding ... 707
13.7 ... Scrap ... 709
13.8 ... Safety Stock ... 712
13.9 ... Scheduling ... 720
13.10 ... Procurement Proposals ... 725
13.11 ... Configuration Settings for Material Requirements Planning ... 732
13.12 ... MRP Live ... 735
13.13 ... Stock/Requirements List ... 740
13.14 ... Planning Calendar ... 756
13.15 ... Planning Areas ... 758
13.16 ... Classic Material Requirements Planning ... 764
13.17 ... Types of Planning Runs ... 766
13.18 ... Summary ... 767
14 ... Demand-Driven Replenishment ... 769
14.1 ... Limitations of Current Materials Planning and Replenishment Tools ... 770
14.2 ... Material and Information Flows ... 772
14.3 ... Demand-Driven Material Requirements Planning Basics and Components ... 774
14.4 ... Demand-Driven Material Requirements Planning Setup ... 785
14.5 ... Running Demand-Driven Replenishment ... 796
14.6 ... Summary ... 835
15 ... Predictive Material and Resource Planning ... 837
15.1 ... Basics ... 838
15.2 ... Setup ... 839
15.3 ... Managing pMRP ... 844
15.4 ... Releasing Results to Operative Material Requirements Planning ... 852
15.5 ... Using Flexible Constraints ... 855
15.6 ... Summary ... 856
16 ... Capacity Requirements Planning ... 857
16.1 ... Process Overview ... 858
16.2 ... Capacity Requirements and Capacity Evaluation ... 860
16.3 ... Finite Scheduling ... 875
16.4 ... Dispatching ... 876
16.5 ... Capacity Planning Table ... 890
16.6 ... Summary ... 896
17 ... Production Planning and Detailed Scheduling ... 897
17.1 ... Configuration ... 898
17.2 ... Master Data in PP/DS ... 905
17.3 ... Business Processes ... 920
17.4 ... Heuristics ... 927
17.5 ... Production Planning Run ... 929
17.6 ... Reporting and Monitoring Apps ... 943
17.7 ... Alert Monitor ... 949
17.8 ... Plan Monitor ... 951
17.9 ... Summary ... 955
18 ... Production Engineering and Operations ... 957
18.1 ... Key Terminology ... 959
18.2 ... Configuration Settings and Production Engineering and Operations Setup ... 960
18.3 ... Production Engineering Master Data Setup ... 970
18.4 ... Planning in Production Engineering ... 984
18.5 ... Production Operations ... 989
18.6 ... Reporting ... 1004
18.7 ... Summary ... 1008
PART V ... Monitoring and Evaluating Production Planning ... 1009
19 ... Production Planning Reporting ... 1011
19.1 ... The Basics of Reporting ... 1011
19.2 ... Report Parameters ... 1012
19.3 ... Order Information System Reports ... 1023
19.4 ... Missing Parts Information System ... 1025
19.5 ... Summary ... 1026
20 ... Standard Planning Analysis ... 1027
20.1 ... Discrete Manufacturing/Production Order ... 1027
20.2 ... Process Manufacturing/Process Order ... 1033
20.3 ... Repetitive Manufacturing ... 1033
20.4 ... Additional Analysis Functions ... 1034
20.5 ... Summary ... 1037
21 ... SAP Fiori Apps for Production Planning ... 1039
21.1 ... SAP Fiori Launchpad and SAP Fiori Apps Reference Library ... 1039
21.2 ... SAP Fiori Applications ... 1040
21.3 ... Summary ... 1064
... The Author ... 1065
... Index ... 1067