A Product Group in SAP PP is a collection of similar materials or other product groups organized for long-term production planning. It simplifies planning processes by grouping items that share components, resources, and capacities. Product groups can be either single-level, containing only materials, or multi-level, comprising several product groups that cascade down to individual materials.
For example, a product group for “iPhone X” might include various variants differing in color or specifications. Planning at the product group level aggregates requirements, streamlining operations and reducing complexity.
Types of Product Groups
Product groups in SAP PP are classified as Single-Level or Multi-Level based on their structure.
- A single-level product group directly includes materials with proportional factors for planning, such as variants of “iPhone X.”
- A multi-level product group hierarchically combines multiple product groups, like grouping “iPhone X” and “iPhone 11” under a broader “iPhone” product group.
| Type | Description | Example |
|---|---|---|
| Single-Level | Contains materials directly as members. Each material is assigned a proportional factor for planning. | Variants of “iPhone X” grouped together under a single product group. |
| Multi-Level | Groups multiple product groups to form a hierarchy. The lowest level always contains materials as members. | Various iPhone models grouped under the “iPhone” product group, with sub-groups for “iPhone X” and “iPhone 11.” |
Creating a Product Group
A product group can be created using Transaction Code MC84 or by navigating to:
Logistics ➤ Production ➤ SOP ➤ Product Group ➤ Create.
| Field | Description |
|---|---|
| Product Group Name | A unique identifier for the product group. |
| Plant | Specifies the plant where the product group is applicable. |
| Base Unit of Measure | The unit used for planning, such as EA (Each) or KG. |
| Members | Defines whether the product group consists of materials or other product groups. |
Once created, the system allows users to assign member materials with proportional factors, either manually or automatically based on historical data. For example:
| Material | Proportional Factor (%) |
|---|---|
| CM_GEARBOX | 50 |
| CM_GEARBOX_01 | 50 |
Proportional factors determine how each material contributes to the product group’s overall demand or capacity.
Planning at the Product Group Level
Product groups are critical for Rough-Cut Capacity Planning (RCCP), used to estimate the resources and capacities needed to meet long-term production goals. Plans can be created at the product group level using Transaction Code MC81 or by navigating to:
Logistics ➤ Production ➤ SOP ➤ Planning ➤ For Product Group ➤ Create.
| Plan Type | Description |
|---|---|
| Sales Plan | Forecasts future sales volumes, which can be created manually or derived from historical data. |
| Production Plan | Aligns production output with the sales plan. Production plans can meet sales requirements, target stock levels, or target days’ supply. |
For instance, a sales plan for June 2022 to December 2022 can include projected monthly sales for each variant. A production plan can then synchronize production with sales requirements or target inventory levels.
Automating Proportional Factors
SAP provides options to calculate proportional factors based on historical data. Users can navigate to:
Logistics ➤ Production ➤ SOP ➤ Product Group ➤ Calculate Proportional Factors.
Alternatively, proportional factors can be distributed manually using Edit ➤ Distribute Proportional Factors.
Example: SuperGears Product Group
At SuperGears AG, the “Constant Mesh Gearbox” is a main product group. This group includes variants like CM_GEARBOX and CM_GEARBOX_01, each contributing equally (50%) to the group’s planning. A sales plan for the product group aggregates demand, simplifying forecasting and capacity planning.
| Month | Projected Sales (EA) | Target Stock Level (EA) | Production Plan (EA) |
|---|---|---|---|
| June 2022 | 1000 | 1000 | 2000 |
| July 2022 | 1200 | 1000 | 2200 |
The production plan aligns with the sales plan while maintaining a target stock level of 1000 EA.
Benefits of Using Product Groups
- Simplified Planning: Groups similar materials, reducing the complexity of forecasting and capacity estimation.
- Resource Optimization: Aggregates requirements, allowing efficient allocation of resources and capacities.
- Long-Term Focus: Supports rough-cut capacity planning, aligning production with sales trends over extended periods.
- Flexible Structure: Enables multi-level grouping for detailed planning across product ranges.
By leveraging product groups, organizations can streamline their planning processes, ensuring efficient resource use and accurate forecasting across production cycles.