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Top 20 SAP PP Interview Questions and Answers Updated 2022

1. Explain what is SAP PP?

SAP PP process is related to production planning of a company and it encompasses all activities like MRP (Material Requirement Planning), BOM (Bills Of Material), Routing, Capacity planning, etc. but mainly it contains two segments

Material Planning: Material requirements planning, long-term planning.

Execution Planning: Creation of production order, workflow, conformations, technical completion, and good movement

2. Mention what is the production process in SAP?

There are three types of production processes in SAP

Discrete Manufacturing

Repetitive Manufacturing

Production- Process Industries

3. List out the activities carried out in Production Planning?

Activities involved in Production Planning includes

Processing material master

Creation of Bill of Material

Displaying work center and routing

Maintaining planning calendar

Maintaining production lot

Maintaining quota file

Defining the range of coverage profile and profile for safety time

Defining MRP views

4. Explain what is Routing in SAP PP?

Routing in SAP PP is referred to a list of activities that are required to produce any material. For example, when you do cost estimation for the material, the system triggers the relevant routing and activity rates for all those described in routing. Which will be helpful to calculate the processing cost in product costing.

5. What are the steps of the Production Execution Process?

Production Execution steps include

Converting planned order to production order

Releasing the production order

Goods issue for production order

Confirmation of production order

Goods receipt against production order

6. What are the reports generated in the product cost controlling information system?

Product Cost Controlling information system generates information for the following areas

Product cost planning

Cost object controlling with the subcomponents

Product cost by period

Product cost by an order

Product cost by the sales order

Costs for intangible goods and services

Actual costing / Material Ledger

7. How to insert an inspection checkpoint at the end of an operation? 

If the in-process sample is to be defined, assign inspection type 03 in the Material Master. Then create MICs and assign them in the Routings. The system automatically generates the Inspection Lots

8. Where do we have to specify the teardown time in one operation? 

 Teardown time can be defined as one of the Standard Parameters.

9. How the processing time is calculated in a WC when both labor, Machine categories exist? 

Scheduling is done based on the Capacity Category we define in the Workcenter.

10. Can MRP be carried out for one particular level of a bom( Level code : 0001/0002 etc). 

 Yes it can be done by running for specific materials (Single Material Single Level)

11. What is opening period? 

Opening period 

The opening period represents the number of workdays that are subtracted from the order start date in order to determine the order creation date. This time is used by the MRP controller as a float for converting planned orders into purchase requisitions or into production orders.

12. What is SLA ? Service Level Agreements

Service Level Agreements (SLA) define the attributes for service products (for example, maintenance, Hotline) that have been agreed upon with the customer in service contracts. The SLA confirms different parameters, such as response time, availability time, and system availability.

13. What are Basic Dates? 

Earliest date for the execution of the production order. This date takes into account the float before production. If, on order creation, a planned order exists for the production order or process order, then the order dates are taken from the planned order. When scheduling the production order the system tries to adhere to the order dates (if necessary, with reduction measures). 

If it is not possible to adhere to the basic dates and if the control parameter in Customizing allows the basic dates to be adjusted, the system adjusts the basic dates of the order during the scheduling run. If the control parameter in Customizing does not allow the basic dates to be adjusted, the order keeps the basic dates of the planned order. 

If the production order is created manually, you must enter at least one order date manually. The scheduling type determines, which order dates you must enter.

14. What is the planning time fence? 

The planning time fence specifies a period within which no automatic changes are to be made to the master plan. 

The planning time fence is maintained on workdays.

15. What is Planning Horizon? 

In this step, you define the planning horizon. This planning horizon specifies the period for the “Net change planning in the planning horizon”. 

In this kind of net change planning, only those materials that have undergone a change that is relevant to MRP within the planning horizon are included in the planning run. Such materials receive a net change planning indicator in the planning file. 

You make this specification for a plant. You can define an alternative planning horizon for MRP groups

16. How do you check the costing details in Production Order?

You can check this in CO02 select Cost → Analysis and you can check the cost of the Production Order.

17. What is Plan cost, Actual cost and Target cost?

Plan Cost = Planned Quantity X Planned Price

Actual Cost = Actual Quantity X Actual Price

Target Cost = Actual Quantity X Planned Price

18. What do you understand by Sales and Operational planning?

SOP is a forecasting tool that allows you to set the sales, production, and other supply chain targets based on existing, future, or historical data. SOP is most commonly used for finished goods.

19. What are the different components under SOP?

SPO consists of the following two components −

Standard SPO is predefined in the system.

Flexible SOP You can configure it in multiple ways.

20. Which Transaction code is used to cancel the Production Order?

Use T-code: CO13

Enter the order number and click on tick mark at the top. You will be prompted to confirm the action.

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