Material Planning In Production Process

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1b) Provide a one-two sentence summary of what the entire exercise was about. This SAP exercise revolves around the production logistics, emphasizing the regions involved in manufacturing the kites as well as the processes and steps required to do so. It portrays the significance of planning for materials in the process of procurement as it is essential to have the correct amount of materials required in order to finish the product. Through the exercise we can learn how to make planned orders using the bill of materials, converting planned order into orders for production, then creating a receipt and receiving the goods.

•PP07 (MRP): During this step of the process, material planning is in processes as the availability and requirement for
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During this step of the production process the actual quantity of the product that was finished is confirmed. The production order is a written permission to the shop floor to begin the production of the stated quantity of goods. There is physical flow of goods in this step because goods go through the whole routing process. This step is caused by the previously placed production order which will lead to the routing process. These steps are triggered by a shortage of material. Hence we can see that this is a made-to-stock order or else the company must wait until a customer places an order for the …show more content…
The goods receipt document specifies the fact that the goods have been delivered on the detailed date to the specified location detailed in the production order. This step is triggered by the completion of the production and the delivery of the products to the location. The receipt is made by the warehouse supervisor or by the person who is responsible for receiving the delivery. There is physical flow of the products taking place because the finished goods have been delivered to the location.
•PP13 (Settle costs of production): In this step of the production process the movement of funds or any variances in the costs are dealt with. An accountant is responsible for this procedure and checks for any inaccuracies in calculations through the whole process. This step is one of the most important steps this is because it is the only step in the whole production process that deals with money flow. The completion of and the delivery of the good are the triggers of this

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