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  Production Process Model

Definition

Source of supply for procuring a product produced in-house.

Use

Using a source of supply for in-house production, the planning applications in SAP APO can create a planned order within procurement planning that stages this product. You can create a production process model (PPM) in SAP APO

  • By manually creating the PPM in SAP APO

  • By transferring relevant data from an OLTP system to SAP APO and then entering SAP APO specific planning data in the PPM, if required

    Example Example

    A PPM corresponds to a production version in SAP R/3. You can transfer a SAP R/3 production version to SAP APO as a production process model.

    End of the example.

Structure

A PPM is based on the PPM plan . The PPM plan describes which process steps and components are required to manufacture the output products from the plan on a non-order-specific basis. You define a PPM for each output product of a PPM plan. In the PPM, you define the validity conditions for the usage of the PPM plan. The system may only use a PPM (and thus also the PPM plan) for a planned order if the order data fulfills the following conditions:

  • Lot Size Margin

    The procurement quantity for the primary product of the planned order must be in the lot-size interval that you have defined in the PPM of the product.

  • Time Validity

    The availability date/time of the planned order must be in the PPM’s validity period. For the PPM, the system automatically uses the validity period that you have entered in the plan for the output product.

  • Planning Location

    The location in which you create the planned order must be entered in the PPM as planning location . A PPM is therefore always only valid for a specific location. The system creates the receipt for the primary product in the planning location.

    If you have entered a production location in the PPM that differs from the planning location, the system creates the dependent requirements for the components and the receipts for the co-products in the production location. The production location is relevant for production in another location .

    Note Note

    • In the case of planning with storage location MRP areas , the production location in the planned order may differ from the issuing location of the components. The system automatically determines the issuing location from the storage location and the production location.

    • The resources used in the plan determine the locations in which the capacity requirements arise. The capacity requirements may therefore be in different locations.

    End of the note.
Procurement Priority

You can define several PPMs for an output product. You use the procurement priority to define the priority the system uses when taking a PPM into consideration during source determination .