Plan 2 produce? What is it?
P2P, or Plan-to-Produce to give it its full name, is an end-to-end process focusing on the production of goods. It sets the rules and procedures for on the work floor and concentrates on the integration of different elements on the production process. Equally, it is an essential process in SAP ERP, in which an organization can align the supply and production capacity needs in order to create production and procurement plans for finished goods and component materials.
The process flow is made up of various sub-processes which are closely related to the production. The sub-processes generally concern the planning, the preparation of production and the operative production/manufacture, as well as the mandatory bookings. In most important interfaces are those of the production planning (from forecasting to planning), production inventory and storage (of incoming semi-finished products/components to outgoing finished products) and quality control (from inspection to quality).
Furthermore, this process plays a crucial role in the supply chain and can easily be integrated with other SAP ERP modules such as SAP MM, SAP SD, SAP PM, SAP QM and SAP FICO.
Why would you set it up?
The advantages of a well implemented Plan-to-Produce process are:
Increased customer satisfaction (and better relationships with suppliers), because one is better equipped to meets the customer’s delivery demands
Improved material- and production planning, whereby one can avoid out of stock issues
Clear view of the chain, whereby suppliers and customers can be more easily tracked and the whole history of the process can be analyzed
Production if of a higher quality as a consequence of improved quality control procedures
Improved reporting capabilities as a result of the automation of the inventory management
How is it implemented?
There are five fundamental pieces of master data required in the production planning module. Master data is the basis upon which an organization works and rarely need changing, depending on the requirements.
Material Master Data
The material master data contains information about all materials that an organization purchases, produces, stores and sells. It is linked to a unique number identifying the material master record, and therefore also the specific product concerned. It can be used for various reasons, but in production planning and control for the planning of material needs, planning and production confirmation processes.
Bill of Material (BOM)
A bill of material is a complete, formally structured list of the components, along with the quantities needed, to produce/assemble the final product. BOMs are used in the planning of material needs and for calculating the production cost.
A work center is one or multiple machines where the production takes place. Work centers are used in the routing. It includes the data for planning capacity and cost calculations.
Routings are the consecutive processes performed in the work center. It also specifies the machine time and the labor time to perform the process.
The production version is a combination of the BOM and the routing data for production and determined the production process. There can be multiple production versions based on different production processes to produce the product.
We can help!
Interested how we can introduce a solid plan 2 produce process in your organization? Contact us and we would be happy to help you.