What is 'planning unit' in SAP PP - Production Planning and Control?

planning unit - Overview

• Component: PP

• Component Name: Production Planning and Control

• Description: The lowest level in the work center hierarchy and therefore the smallest plannable unit. One or more planning units form a work center. At planning unit level, differences in capacity can be updated decentrally, in other words, at the control station.

planning unit - Details

• 
  Key Concepts: 
  A planning unit is a unit of measure used in Production Planning and Control (PP) in SAP. It is used to define the quantity of a material that is planned and produced. The planning unit is defined in the material master record and can be changed at any time. 
  
  How to use it: 
  The planning unit is used to define the quantity of a material that is planned and produced. It is used in the production order, material requirements planning (MRP), and capacity planning. The planning unit can be changed at any time in the material master record. 
  
  Tips & Tricks: 
  When defining the planning unit, it is important to consider the size of the material, as well as the production process. For example, if a material is small and requires precise measurements, then a smaller planning unit should be used. On the other hand, if a material is large and requires less precise measurements, then a larger planning unit should be used. 
  
  Related Information: 
  The planning unit is closely related to other concepts in Production Planning and Control such as the base unit of measure, conversion factors, and lot sizes. It is also related to other concepts such as inventory management, warehouse management, and quality management.