Difference Between Planned Order and Production Order in SAP PP

In SAP PP, planned orders and production orders are two important concepts that are used in the manufacturing planning and execution processes. Understanding the difference between these two types of orders is crucial for efficient production management.

Planned Order:

A planned order is a proposal for production, indicating the quantity and timing of the production activities. It is used for rough planning purposes and serves as an input for capacity requirements planning. Planned orders are created based on the material requirements planning (MRP) run and can be converted into production orders.

Production Order:

A production order is a formal request to produce a specific quantity of a product within a defined timeframe. It contains detailed information about the production process, such as the materials required, work centers involved, and operations to be performed. Production orders are used to execute the actual production activities on the shop floor.

Key Differences:

• Planned orders are used for rough planning and capacity requirements analysis, while production orders are used for executing production activities.
• Planned orders are created based on MRP, while production orders are created manually or converted from planned orders.
• Planned orders do not trigger any production activities, whereas production orders drive the actual production process.
• Planned orders can be changed or canceled before conversion to production orders, while production orders represent firm commitments for production.

Overall, understanding the difference between planned orders and production orders is essential for effectively managing the production process in SAP PP.