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Process documentation Creation of PPMs for Use in Demand Planning Locate the document in its SAP Library structure


PPMs are used in demand planning solely as bills of material (BOM). Other information such as how and where a product is to be produced are of no importance. DP-PPMs only contain those materials that are relevant to demand planning. In general, you do not plan all the components of a product in demand planning, but only those components that:

Similarly the BOM hierarchy is not as important as in other applications.

As a result you can create special PPMs for use in demand planing. The same product can have several PPMs for use in different applications.



A bill of material can contain several different units of measure. For example in the BOM for an elevator you require

The unit for the elevator itself is PC. In order to be able to convert one unit to another, you must enter conversion factors in the product master record. The system uses these factors to convert all the units in the BOM to that of the product.


If you are working with bills of material that contain several units, SAP recommend that you set the UOM indicator for the respective key figures in planning area maintenance. You can find this indicator on the detail screen of the Key figs. tab page.


Process Flow

The hierarchy of a BOM is not relevant for demand planning. A DP-BOM should only contain those components that are to be planned (see above). SAP recommends that you only use single-level BOMs in demand planning.

For general information on PPMs refer to Structure link Production Process Model.

  1. You call up PPM maintenance by choosing Master Data ® Production Process Model.
  2. On the initial screen you enter a name for the plan and set the Usage field to D for demand planning.
  3. You create a dummy operation and activity for the plan.
  4. By double-clicking on the activity you arrive at the Component screen. Here you enter the name of the product and set the I/O indicator to O (Output). You also enter the number of items, which is usually 1 for the product, and validity dates if appropriate. You continue by entering the components, for which you set the I/O indicator to I (Input). You enter the quantity of a component that is required to manufacture the number of items of the product as previously specified.
  5. You assign the PPM to the output product. To do so, choose This graphic is explained in the accompanying text.
  6. You save and activate your PPM.


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