Day 2 — SAP PP Organizational Structure

Explain the Organizational Structure in SAP PP.

1. Organizational Structure defines how a manufacturing company is represented in SAP. 2. The highest level is the Client. 3. A Company Code represents the legal entity. 4. A Plant is the location where production takes place. 5. A Storage Location stores raw materials, semi-finished, and finished goods. 6. A Work Center represents machines, labor, or production resources. 7. An MRP Area is used for material planning within a plant. 8. These organizational units work together to manage the production process efficiently.

An electronics company manufactures laptops. 1. Company Code: ABC Pvt Ltd. 2. Plant: Hyderabad Manufacturing Plant. 3. Storage Location: Raw Material Store. 4. Work Center: Assembly Line 01. 5. MRP checks material availability. 6. Production Order is created for 200 laptops. 7. Workers assemble the laptops. 8. Finished laptops are moved to the Finished Goods warehouse.

1. What is a Plant in SAP PP? 2. What is the purpose of a Work Center? 3. What is the difference between Plant and Storage Location?