Week 5: Production Planning (PP)

Question 1

What is the main focus of the Production Planning and Execution (PP) module in SAP?

A. Financial reporting
B. Sales forecasting
C. Manufacturing process management
D. Customer relationship management

Answer 1

C. Manufacturing process management

Explanation: The PP module in SAP focuses on managing and executing manufacturing processes.

Question 2

Which of the following is a key objective of learning the PP module?

A. Understanding customer service workflows
B. Learning how to manage a manufacturing process cycle
C. Creating marketing campaigns
D. Managing payroll systems

Answer 2

B. Learning how to manage a manufacturing process cycle

Explanation: One of the main objectives is to understand the manufacturing process cycle.

Question 3

Which SAP production type is best suited for the food and beverage industry?

A. Discrete Manufacturing
B. Repetitive Manufacturing
C. KANBAN
D. Process Industries

Answer 3

D. Process Industries

Explanation: Process Industries are designed for batch-oriented manufacturing like food and pharmaceuticals.

Question 4

Which of the following is NOT part of the PP process?

A. Material Planning
B. Manufacturing Execution
C. Customer Service
D. Production Planning

Answer 4

C. Customer Service

Explanation: Customer Service is not a core component of the PP process.

Question 5

What is the smallest organizational unit in SAP for maintaining a legal set of books?

A. Plant
B. Client
C. Company Code
D. Storage Location

Answer 5

C. Company Code

Explanation: The Company Code is the smallest unit for legal accounting in SAP.

Question 6

In the Global Bike structure, what does a Work Center Location represent?

A. A type of product
B. A storage unit
C. A place where operations are performed
D. A customer location

Answer 6

C. A place where operations are performed

Explanation: Work Center Locations are where specific operations like assembly or inspection are carried out.

Question 7

Which of the following is a valid SAP organizational unit for logistics?

A. Sales Region
B. Purchasing Group
C. Marketing Division
D. HR Department

Answer 7

D. HR Department

Explanation: Purchasing Groups are part of the logistics structure in SAP.

Question 8

In SAP PP, what does the Bill of Materials (BOM) represent?

A. The cost of production
B. The list of suppliers
C. The list of components needed to make a product
D. The sales forecast

Answer 8

C. The list of components needed to make a product

Explanation: BOM is like a recipe listing all components required to assemble a product.

Question 9

What is the purpose of the Material Master Record in SAP?

A. To store employee data
B. To manage customer orders
C. To store all information related to a material
D. To track financial transactions

Answer 9

C. To store all information related to a material

Explanation: The Material Master contains all relevant data for managing materials in SAP.

Question 10

Which of the following is NOT typically part of a bicycle’s BOM?

A. Handle Bar
B. Warranty Document
C. Engine
D. Brake Kit

Answer 10

C. Engine

Explanation: Bicycles do not have engines; this is not a component in their BOM.

Question 11

What is a Bill of Materials (BOM)?
A. A list of suppliers
B. A list of components needed to make a product
C. A financial report
D. A sales forecast

Answer 11

B. A list of components needed to make a product

Explanation: A BOM is like a recipe listing all components required to assemble a product.

Question 12

What is a single-level BOM?
A. A BOM with only one component
B. A BOM with multiple levels of components
C. A BOM for a single product
D. A BOM for multiple products

Answer 12

A. A BOM with only one component

Explanation: A single-level BOM lists only the immediate components required for assembly.

Question 13

What is a single-level BOM?
A. A BOM with only one component
B. A BOM with multiple levels of components
C. A BOM for a single product
D. A BOM for multiple products

Answer 13

A. A BOM with only one component

Explanation: A single-level BOM lists only the immediate components required for assembly.

Question 14

What is a variant BOM?
A. A BOM for a single product
B. A BOM for multiple products with identical parts
C. A BOM with only one component
D. A BOM for a financial report

Answer 14

B. A BOM for multiple products with identical parts

Explanation: A variant BOM is used for products with a large proportion of identical parts.

Question 15

What is a variant BOM?
A. A BOM for a single product
B. A BOM for multiple products with identical parts
C. A BOM with only one component
D. A BOM for a financial report

Answer 15

B. A BOM for multiple products with identical parts

Explanation: A variant BOM is used for products with a large proportion of identical parts.

Question 16

What does the item category in a BOM control?
A. Screen sequence
B. Field selection
C. Default values
D. All of the above

Answer 16

D. All of the above

Explanation: The item category controls screen sequence, field selection, default values, and more.

Question 17

What is the purpose of routings in production planning?
A. To manage financial transactions
B. To plan the production of materials
C. To create marketing campaigns
D. To manage customer orders

Answer 17

B. To plan the production of materials

Explanation: Routings enable the planning of the production of materials (products).

Question 18

What information does a routing contain?
A. What, Where, When, How
B. Who, What, Where, Why
C. When, Why, How, Who
D. What, Why, When, Who

Answer 18

A. What, Where, When, How

Explanation: Routings contain information on what, where, when, and how operations are performed.

Question 19

What is a work center in SAP?
A. A place where operations are performed
B. A storage unit
C. A type of product
D. A customer location

Answer 19

A. A place where operations are performed

Explanation: A work center is a location within a plant where value-added work (operations or activities) is performed.

Question 20

What can work centers represent?
A. People or groups of people
B. Machines or groups of machines
C. Assembly lines
D. A customer location

Answer 20

A. A place where operations are performed

Explanation: Work centers can represent people, machines, or assembly lines.

Question 21

What data do work centers capture and use?
A. Basic data
B. Scheduling information
C. Costing data
D. All of the above

Answer 21

D. All of the above

Explanation: Work centers can represent people, machines, or assembly lines.

Question 22

What is a product group in SAP?
A. A group of customers
B. A group of materials or other product groups
C. A group of suppliers
D. A group of financial reports

Answer 22

B. A group of materials or other product groups

Explanation: A product group is used for aggregate planning that groups together materials or other product groups.

Question 23

What is the purpose of forecasting in production planning?
A. To create marketing campaigns
B. To predict future sales and production needs
C. To manage customer orders
D. To track financial transactions

Answer 23

B. To predict future sales and production needs

Explanation: Forecasting is used to predict future sales and production needs.

Question 24

What is Sales and Operations Planning (SOP)?
A. A financial report
B. A flexible forecasting and planning tool
C. A customer service workflow
D. A marketing strategy

Answer 24

B. A flexible forecasting and planning tool

Explanation: SOP is a flexible forecasting and planning tool used in production planning.

Question 25

Who are the players in the production planning game? A. Strategic Planning B. Detailed Planning C. Execution D. All of the above

Answer 25

D. All of the above ## Footnote Explanation: The players in the production planning game include strategic planning, detailed planning, and execution roles.

Question 26

What is the foundation of a reliable SOP? A. Accurate forecasts B. Customer feedback C. Financial reports D. Marketing campaigns

Answer 26

A. Accurate forecasts ## Footnote Explanation: Accurate forecasts are essential for a reliable Sales and Operations Planning (SOP).

Question 27

What are the types of forecasting models? A. Trend B. Seasonal C. Trend and Seasonal D. All of the above

Answer 27

D. All of the above ## Footnote Explanation: Forecasting models can be trend, seasonal, trend and seasonal, or constant.

Question 28

What is the purpose of Demand Management? A. To manage customer orders B. To plan production quantities and dates C. To create marketing campaigns D. To track financial transactions

Answer 28

B. To plan production quantities and dates ## Footnote Explanation: Demand Management is used to plan production quantities and dates.

Question 29

What are the planning strategies in SAP? A. Make-To-Stock (MTS) B. Make-To-Order (MTO) C. Configurable materials D. All of the above

Answer 29

D. All of the above ## Footnote Explanation: Planning strategies in SAP include Make-To-Stock (MTS), Make-To-Order (MTO), and configurable materials.

Question 30

What is the purpose of Master Production Scheduling (MPS)? A. To manage financial transactions B. To distinguish planning methods between materials C. To create marketing campaigns D. To manage customer orders

Answer 30

B. To distinguish planning methods between materials ## Footnote Explanation: MPS allows a company to distinguish planning methods between materials that have a strong influence on profit or use critical resources.

Question 31

What is Material Requirement Planning (MRP)? A. A financial report B. A system to calculate net requirements C. A customer service workflow D. A marketing strategy

Answer 31

B. A system to calculate net requirements ## Footnote Explanation: MRP is used to calculate net requirements while considering available warehouse stock and scheduled receipts.

Question 32

What is the difference between independent and dependent demand? A. Independent demand is for finished products, dependent demand is for components B. Independent demand is for components, dependent demand is for finished products C. Both are the same D. None of the above

Answer 32

A. Independent demand is for finished products, dependent demand is for components ## Footnote Explanation: Independent demand is for finished products, while dependent demand is for component parts or subassemblies.

Question 33

What are the steps in MRP? A. Net Requirements Calculation B. Lot Size Calculation C. Procurement Type D. All of the above

Answer 33

D. All of the above ## Footnote Explanation: The steps in MRP include net requirements calculation, lot size calculation, procurement type, scheduling, and BOM explosion.

Question 34

What is the purpose of lot sizing in MRP? A. To manage financial transactions B. To determine the quantity of materials to be ordered or produced C. To create marketing campaigns D. To manage customer orders

Answer 34

B. To determine the quantity of materials to be ordered or produced ## Footnote Explanation: Lot sizing is used to determine the quantity of materials to be ordered or produced.

Question 35

What are the types of procurement in MRP? A. External Procurement B. Internal Procurement C. Both A and B D. None of the above

Answer 35

C. Both A and B ## Footnote Explanation: The types of procurement in MRP are external procurement and internal procurement.

Question 36

What is the purpose of scheduling in MRP? A. To manage financial transactions B. To determine production dates and capacity requirements C. To create marketing campaigns D. To manage customer orders

Answer 36

B. To determine production dates and capacity requirements ## Footnote Explanation: Scheduling in MRP is used to determine production dates and capacity requirements for all operations within an order.

Question 37

What is the purpose of a production order? A. To manage financial transactions B. To control production operations and associated costs C. To create marketing campaigns D. To manage customer orders

Answer 37

B. To control production operations and associated costs ## Footnote Explanation: Production orders are used to control production operations and associated costs.

Question 38

What information does a production order define? A. Material produced B. Quantity C. Location D. All of the above

Answer 38

D. All of the above ## Footnote Explanation: A production order defines the material produced, quantity, location, timeline, work involved, resources used, and cost settlement.

Question 39

What is the purpose of a goods receipt in production? A. To manage financial transactions B. To control production operations and associated costs C. To accept the confirmed quantity of output into stock D. To manage customer orders

Answer 39

C. To accept the confirmed quantity of output into stock ## Footnote Explanation: A goods receipt is used to accept the confirmed quantity of output from the production order into stock.

Question 40

What is the purpose of order settlement in production? A. To settle the actual costs incurred in the order B. To control production operations and associated costs C. To accept the confirmed quantity of output into stock D. To manage customer orders

Answer 40

A. To settle the actual costs incurred in the order ## Footnote Explanation: Order settlement consists of settling the actual costs incurred in the order to one or more receiver cost objects.