This section gives you an overview of the integration of the application component Production Orders (PP-SFC) in the R/3 System and its integration in the component Production Planning and Control.

Production orders are a fundamental part of Production Planning and Control (PP). PP is fully integrated in the Logistics (LO) component and has, among others, interfaces to

• Sales and Distribution (SD)

The work processes within a company are executed using orders.

A production order defines which material is to be processed, at which location, at what time and how much work is required. It also defines which resources are to be used and how the order costs are to be settled.

As soon as a planned order or a company-internal requirement is generated from previous planning levels (material requirements planning) shop floor control takes over the information available and adds the order-relevant data to it to guarantee complete order processing.

Production orders are used to control production within a company and also to control cost accounting.

You can use the production order to specify:

• What is to be produced

• When production is to take place

• Which capacity is to process the order

• How much production costs

Production orders can be generated in the following ways:

• From a requirement generated in requirements planning, that is, by converting a planned order to a production order

• Using an assembly order

• Without any previous requirement, that is, by creating it manually

When a production order is created the following actions are carried out:

• A routing is selected, its operations and sequences are transferred to the order

• The bill of materials is exploded and the items in the bill of material are transferred to the order

• Reservations are generated for bill of material items held in stock

• The planned costs for the order are generated

• The capacity requirements are generated for the work centers

• Purchase requisitions are generated for non-stock items and externally-processed operations

Separate menus were developed for all the areas in the R/3 System. You can select all the data and evaluations that are needed from the menu. You also have the option of selecting specific processes or overviews using function keys.