What is SAP PPDS?

With SAP PP/DS (the successor to SAP APO), companies plan their complex production processes down to the last detail, taking a wide range of aspects into account. This allows resources to be optimally utilised. Thanks to the integration of real-time data, SAP PPDS also makes it possible to react quickly to changes.

SAP PPDS (SAP Production Planning and Detailed Scheduling) is a software solution that has been specially developed for production planning and detailed scheduling in complex production environments.

The main task is to control production orders in manufacturing in such a way that machine capacities are utilised efficiently, material bottlenecks are avoided and delivery deadlines are met. SAP PPDS enables particularly precise optimisation of production processes by taking capacities and material availability into account in real time.

The solution is a further development of the former SAP APO PP/DS component and has been integrated directly into SAP S/4HANA as "Embedded PP/DS". As a result, companies benefit from

• better system performance,
• a standardised database and
• simplified integration with other SAP modules.

The need to operate a separate Advanced Planning and Optimisation (APO) system is eliminated, reducing complexity and maintenance costs.

Alternatively, SAP PPDS can also be used as an add-on in SAP ERP ECC 6.0 via SAP SCM (SAP Supply Chain Management). A HANA database is not required for this.

SAP PPDS has a wide range of functions aimed at improving production processes at both a strategic and operational level.

One of the central functions is capacity-orientated production planning. This function is used not only to create production orders according to parts lists or schedules, but also to optimise them depending on machine availability and working times.

Thanks to "pegging", the dependency of material requirements and demand coverage can also be planned across several production stages.

Also worth mentioning is the detailed planning at machine level, which allows individual production orders to be scheduled in detail and ensures the best utilisation of the machines.

This function not only reduces downtimes, but also helps to avoid changeover times and bottlenecks. Planners are supported by a detailed planning board, which also provides detailed information on product stocks.

Another important feature is dynamic rescheduling, which automatically processes changes in the production chain - whether due to machine breakdowns, material bottlenecks or last-minute requests - and integrates them into the production plan. This increases the flexibility of companies and enables them to react quickly to unforeseeable events.

SAP Production Planning and Detailed Scheduling also offers simulation options that can be used to test various planning scenarios. This allows companies to run through different strategies before making a final decision.

The range of functions is supplemented by automated order sequencing, which plans the sequence of production orders in such a way that set-up times are minimised and production processes are optimised.

SAP Production Planning and Detailed Scheduling is not a stand-alone Manufacturing Execution System (MES). However, the integration of SAP PPDS with an MES is a good way to optimise production control.

In this case, planning data from PPDS can be seamlessly transferred to the MES. Conversely, the MES can in turn provide real-time feedback on production progress to PPDS. This bidirectional communication enables dynamic adjustment of production plans based on current shop floor data, resulting in increased flexibility and responsiveness.

With SAP Manufacturing Execution (SAP ME), SAP offers its own MES solution that harmonises particularly well with SAP S/4HANA and PPDS. However, third-party MES systems can also be connected. SAP provides standardised interfaces and integration scenarios for this purpose.

The use of SAP PPDS leads to a number of improvements in production planning. A decisive advantage lies in the better utilisation of resources, as machines and workers can be optimally deployed. This not only helps to reduce costs, but also significantly improves productivity.

Another advantage is the reduction in stock levels. This is realised through close integration with MRP (Material Requirements Planning). Thanks to this interaction, SAP Production Planning and Detailed Scheduling is able to precisely calculate material requirements in production. As a result, unnecessary stocks can be avoided without causing bottlenecks in production. This improves liquidity and reduces warehousing costs.

Thanks to the greater planning reliability, companies benefit from better adherence to deadlines. Customer orders can be reliably honoured, which increases customer satisfaction and avoids possible contractual penalties due to late deliveries.

Automated optimisation relieves employees of manual planning activities and reduces the error rate. In addition, embedding in SAP S/4HANA enables smooth collaboration with other areas of the company, making the entire production process more transparent and efficient.

SAP PPDS is particularly suitable for companies that have complex production with high demands on production control and detailed planning. This includes the following industries, for example:

• Automotive industry
• Mechanical engineering
• Pharmaceutical and chemical industry
• Electronics production
• Food production

Companies with just-in-time or just-in-sequence production in particular benefit from the possibilities of real-time planning and the precise control of production orders. Companies that have to manage seasonal fluctuations or frequently changing product variants can also achieve a considerable increase in efficiency with the programme.

The details of the production planning and detailed planning process with SAP PPDS can be adapted to company-specific requirements. For a company with in-house production, it could be modelled as follows:

1. Master data integration

All relevant production data - including material masters, routings and capacities - are transferred from SAP S/4HANA to PPDS. This ensures that the planning basis is based on current and correct data.

2. Rough-cut planning in SAP S/4HANA

In rough-cut planning, capacity requirements and material requirements are determined in the long term. This involves an initial reconciliation between demand and available resources in order to identify and compensate for bottlenecks at an early stage.

3. Planning of receipts for products manufactured in-house

Planned receipts are then defined in PPDS for products manufactured in-house. These specify when which materials or intermediate products must be made available for production.

4. Transfer of receipts to SAP S/4HANA

The receipts planned in PPDS are transferred to SAP S/4HANA so that the ERP system can take them into account for downstream processes such as purchasing and inventory management.

5. Complete planning of the components in SAP S/4HANA

Parallel to the transfer of receipts, the complete planning of the required components is finalised in SAP S/4HANA. This ensures that all dependent materials are available at the right time.

6. Detailed planning in SAP PPDS

In this step, production orders are scheduled and optimised at machine level. Current capacity utilisation and material availability are taken into account. The optimum order sequence is also determined.

7. Problem solving and adjustment of planning

If bottlenecks or discrepancies occur during detailed planning, adjustments can be made in PPDS. This can include, for example, reallocating resources or changing production sequences.

8. Transfer and implementation in SAP S/4HANA

Once detailed planning has been completed, the final production plans are transferred to SAP S/4HANA. This is where the planned production orders are implemented and controlled by the system.

9. Execution in production

The released production orders are executed in SAP S/4HANA. Machines, employees and materials are used in accordance with the optimised production plan.

10. Dynamic rescheduling in the event of disruptions

Changes or disruptions in the production process, for example due to machine breakdowns or material bottlenecks, can be recorded in real time. Dynamic rescheduling in PPDS enables a rapid response and minimises disruption to the production flow.

PP stands for Production Planning and is a module within SAP ERP that is responsible for controlling production processes. It includes the planning of material requirements, capacity management, production control and the monitoring of production processes.

SAP PP and SAP PPDS differ mainly in their focus and level of detail. While SAP PP supports classic production planning with long-term requirements analysis and rough production control, SAP PPDS focuses on detailed planning and real-time optimisation of production processes.

SAP PPDS also enables detailed machine utilisation and takes into account capacity bottlenecks and material availability in real time. This leads to greater flexibility and more precise production control than with SAP PP alone.

SAP PP-PI is a function module for production planning and control in the process industry.

This PP submodule was created for the planning, control and monitoring of production processes in industries in which continuous production and batch processing are important.

These industries include chemicals, pharmaceuticals and food. For such companies, SAP PP-PI includes special features such as batch management, recipe management and traceability in addition to production planning.

In SAP PPDS, the term "routing" refers to the detailed description of the individual work steps required to manufacture a product.

A routing defines which operations must be carried out in which order at which work centres or machines in order to manufacture a product. It also contains information about the required resources, throughput times and specific work instructions for each operation.

The main components of a routing include

• Operations: individual work steps or activities that need to be performed
• Work centres: Locations or machines where the operations are performed
• Sequence of operations: the specific sequence in which the work steps are to be performed
• Time specifications: Information on set-up times, processing times and transition times between operations

Routings are used in SAP PPDS to plan and control the production process. They serve as the basis for scheduling production orders, capacity planning and cost calculation.

By integrating routings into production planning, companies can ensure that all the steps required to manufacture a product are carried out efficiently and in the correct sequence.

SAP Advanced Planning and Optimisation (APO) was a comprehensive solution within SAP SCM (Supply Chain Management) that comprised various modules for planning and optimising logistics processes. The main components included

• Demand Planning (DP): Forecasting and planning of customer demand
• Supply Network Planning (SNP): planning of the entire supply network, including inventory management and distribution logistics
• Global Available-to-Promise (GATP): functions for checking the global availability of products
• Production Planning and Detailed Scheduling (PP/DS): Production planning and detailed scheduling

With the introduction of SAP S/4HANA, many SAP APO functions were integrated directly into the new suite. The former PPDS module in SAP APO thus became Embedded PPDS in SAP S/4HANA.

Mainstream support for SAP APO (Advanced Planning and Optimisation) runs until the end of 2027, after which there is the option to take advantage of optional extended support until the end of 2030.

Companies currently using SAP APO should therefore develop a migration strategy to newer solutions such as SAP S/4HANA Embedded PPDS in good time to ensure the smooth continuation of their supply chain processes.