What is 'delta factor' in SAP PP - Production Planning and Control?

delta factor - Overview

• Component: PP

• Component Name: Production Planning and Control

• Description: A smoothing factor for the mean absolute deviation.

delta factor - Details

• 
  Key Concepts: 
  Delta factor is a term used in SAP Production Planning and Control (PP) to refer to the difference between the planned and actual production quantity. It is used to calculate the actual production costs and to determine the amount of material that needs to be produced. 
  
  How to use it: 
  The delta factor is calculated by subtracting the planned production quantity from the actual production quantity. This calculation can be done manually or automatically using SAP PP. Once the delta factor is calculated, it can be used to determine the actual production costs and the amount of material that needs to be produced. 
  
  Tips & Tricks: 
  It is important to keep track of the delta factor in order to ensure accurate production costs and material requirements. Additionally, it is important to monitor the delta factor over time in order to identify any potential issues with production planning or execution. 
  
  Related Information: 
  The delta factor is closely related to other terms such as planned order, actual order, and planned vs. actual costs. Additionally, it is important to understand how the delta factor affects other areas of production planning such as inventory management and capacity planning.