What is direct production in SAP PP-MRP - Material Requirements Planning?

SAP Term: direct production

• Component: PP-MRP

• Component Name: Material Requirements Planning

• Description: The production without stockholding. Components are produced directly for the higher-level assembly and consumed. The aim of direct production is to jointly regard scheduling and costing procedures for finished products, assemblies and components in a BOM structure. The components that are produced directly are connected with each other in a multi-level collective order by entering the respective higher-level and leading planned order or production order. The collective order can be scheduled together and the costs incurred for the collective order can be processed together.

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• Key Concepts: 
  Direct production is a type of production planning in SAP's PP-MRP (Material Requirements Planning) module. It is used to plan and manage the production of finished goods directly from raw materials. This type of production planning is used when the production process is relatively simple and does not involve any intermediate steps. 
  
  How to use it: 
  Direct production can be used to plan and manage the production of finished goods from raw materials. The user can define the material requirements for each finished good, as well as the quantity and timing of the production process. The user can also define the resources needed for each step of the production process, such as machines, personnel, and materials. 
  
  Tips & Tricks: 
  When using direct production, it is important to ensure that all material requirements are accurately defined and that all resources are available when needed. It is also important to monitor the progress of the production process in order to ensure that it is running smoothly and efficiently. 
  
  Related Information: 
  Direct production is one of several types of production planning available in SAP's PP-MRP module. Other types of production planning include indirect production, mixed-mode production, and repetitive manufacturing.