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SAP S/4HANA Production Planning


SAP S/4HANA Production Planning


In SAP S/4HANA, Process Industry (PPI / PP-PI) and Discrete Production Planning (PP) are two different manufacturing approaches within SAP Production Planning. They are used for different industries and production methods.


1. Discrete Production Planning

Discrete manufacturing produces individual units or batches of products that can be counted separately.

Key Characteristics

  • Products are assembled from components.

  • Production uses Production Orders.

  • Products are distinct and countable.

  • Usually involves assembly operations.

Typical Industries

  • Automotive

  • Electronics

  • Machinery manufacturing

Example: Producing 100 laptops where each laptop is assembled from CPU, RAM, motherboard, etc.

Main Objects

  • Bill of Materials (BOM)

  • Routing

  • Production Order

  • Work Centers

2. Process Industry (PPI / PP-PI)

Process manufacturing is used for industries where materials are mixed, blended, or processed in batches.

Key Characteristics

  • Products are not discrete pieces but bulk or liquid materials.

  • Production uses Process Orders.

  • Uses Recipes instead of Routings.

  • Supports process instructions and control recipes.

Typical Industries

  • Chemicals

  • Pharmaceuticals

  • Food & beverage

  • Oil & gas

Example: Producing 5000 litres of shampoo by mixing chemicals according to a formula.

Main Objects

  • Master Recipe

  • Process Order

  • Resources

  • Process Instructions


Key Differences

Simple way to remember

  • Discrete Production → Assemble products

  • Process Industry (PP-PI) → Mix or process materials


Simple Decision Rule

If your product is…

Use

Mixed, blended, or processed (liquids/powders)

PP-PI

Assembled from components

Discrete Production

 

Rajesh Sharma

SAP WM/EWM Functional Consultant


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