Identifying the Areas in Production

After completing this lesson, you will be able to:

After completing this lesson, you will be able to:

  • Describe the systems used in Production
  • Name the functionalities used in the Bike Company

System Overview

Unit Overview

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System Overview

Before you learn more about the individual process steps in Production, you will familiarize yourself with the different applications that can be used in production in SAP.

Originally the entire production process took place in the SAP S/4HANA module PP (Production Planning).

Getting an Overview of SAP Integrated Business Planning (IBP)

Now there is functionality from the planning aspect that could be covered in SAP IBP.

SAP IBP enables an organization to bring all its Sales and Operations Planning processes together under one roof using the same data set: Reporting, Planning, and Executing.

SAP IBP is a completely scalable solution with a unified data model. It offers simplified data integration to and from SAP IBP with an easy implemented concept via Microsoft Excel and the web-based user interfaces. It offers easy collaboration within and between internal groups such as those created by Demand and Supply Planners, Finance team members, and Sales relevant employees. It provides what-if scenario capabilities and real-time Analytics to show the status of the key performance indicators of a Supply Chain at any given time.

Paul will give you an introduction into the SAP IBP landscape.


Since we have already talked about a possible planning cycle in Controlling, we would like to come back to this and see in which framework our planning now fits.

When we look back to these planning steps from Controlling, we see that there are two possible steps that could be processed in SAP S/4HANA from the perspective of Planning for Production. These could be Sales and Operations Planning (SOP) and Demand Management. We will process these steps in IBP and hand over the planning result to SAP S/4HANA.

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