These are the basic configuration settings you need to maintain.

Apart from this, as per user's requirement you may

need do configure more.

Factory Calendar
Configuring SAP calendar
Define Public Holidays
Define Hoiliday Calendar
Creation of Factory Calendar

Basic Data
Bill of Material
Define Modification Parameters
Define BOM Usages
Define Material Types For BOM Header
Define Item Categories used for Item Data
Define allowed Material Types for BOM Items
Define Order of priority for alternative BOM usages

Work center
Define WorkCenter Category
Define Field Selection for Work Center
Define Task List Usage for Workcenters
Define Parameters for Standard Value Key

Define Standard Value Key

Define Person Responsible for work Centers
Define Move time Matrix
Define Default Work Center
Default Control Keys
Define Capacity Categories
Define Capacity Planners
Define Shift Sequence
Define Worcenter Formulas
Define Work Center Formulas for Costing

Routing
Define Number Ranges for Routings
Define Field Selection
Define Material Type Assignments
Select Automatically (Routing Selection)
Define Task List Usage
Configure Planner Group
Configure Control Keys
Define Reduction Strategy
Define Relevancy to Costing
Define (Standard) Trigger Point Usage
Define Automatic Selection of Routings

Production Planning
Demand Management
Define number ranges for planned independent requirements
Configuring Requirement Types and Requiremtent Classes
Define Strategy
Define Strategy Group
Define version numbers
Maintain consumption mode and period of adjustment

CRP

Define layout keys

Define layout
Define profile for capacity planning table
Define Overall profile

Material Requirement Planning

Plant Parameters

Carry Out Overall Maintenance of Plant Parameters

Scheduling Parameters for Purchasing
Number Range for Planned orders
Number Range for Puchase Requisitions
Define MRP Controllers
Define Missing Parts MRP Controller
Define Special Procurement Type

Maintain Planning Calendar

Define MRP Areas
Define Scope of Planning for Total Planning

Define Planning Horizon

Activate BOM Expllosion characteristics
Define Planning Time Fence and Roll Forward Period
Define Floats (Scheduling Margin Key)
Define Parallel processing for MRP
Define Receipt days Supply
Parameters for Determining the Basic Dates
Define scheduling parameters for planned orders
Define availability stock in Transfer/Blocked stock/Restricted stock
Define External Procurement
Define BOM Explosion Control
Define BOM Explosion for Sales Orders
Define BOM and Routing Selection
Activate MRP and Set Up Planning File
Define Planning File Entries for Goods Movements
Convert Planning File Entries for MRP Areas

Shop Floor Control

Master Data

Define Order Types

Define order type-dependent parameters

Production Status Profile
Define number ranges for orders
Define number ranges for confirmations
Define number ranges for reservations
Define production scheduler
Define production scheduling profile
Define Confirmation Parameters
Define Time for Confirmation Processes
Define Reasons for Variances
Define single screen entry
Define Field Selection for Confirmation
Define Reduction Strategies
Define Print Control
Batch Status Mangement
Batch Search Strategy to Production
Activate Batch Management

Availability Check
Define Checking Group
Define Checking Rule
Define Scope of Check
Define Checking Control
Checking Rule for Back order Processing

Scheduling
Specify Scheduling Type
Define Scheduling Parameters for Planned Orders
Define Scheduling Parameters for Production Orders

Master data reuired for capacity planning

1. work center

create CR01
Change CR02
Display CR03

SAP PP Capacity Requirement Planning

Overview Of How To Manage Resources
Efficiently
Cost Effective and optimized use of resources is a major objective of any
company. Resources could be man, machines, equipments, space etc. To
achieve this objective, SAP PP has integrated component called as SAP PP
CRP (Capacity Requirement Planning). SAP PP CRP helps to get answers
to mainly following questions:

What kind of capacity is needed?

How much is needed?
When is it needed?
Following are major steps in Capacity Planning:

1.
2.
3.
4.
5.
6.
7.

Make educated guess about future capacity requirements based on

planned order/production order etc.
Evaluate existing available capacity of resources
Analysis/compare requirements and available capacities i.e. evaluation
Find out alternatives/substitute capacity if any primary resource is full
with allocated requirements.
Select alternative capacity if need arises
Plan resources on alternative capacity
Monitor outcome of planning and take corrective action (i.e. leveling)
considering business requirements.
Main CRP elements introduced by SAP are:
Available capacity
Scheduling
Capacity Requirement
Capacity evaluations
Capacity Leveling
Capacity reduction
We need to maintain master data related to capacities in Work Center (CR01)
in Capacities Tab Page. There we maintain capacity category like Machine,
Labor, Processing unit, Electricity, Transport, external processing etc along
with formulas (i.e. Setup, processing, teardown, pooled capacities etc)
and Capacity requirement is based on these Set up, processing and
Teardown time factors all together based on actual process and requirement
of planned or production order. These different time factors are assigned to
operation via routing .And further resources is attached to operation and
finally Scheduling is used to determine the times of the capacity
requirements.
In production planning requirement is normally consists of Planned Order,
Production orders, Process Orders and SOP orders.

Other PP master such as Material master, BOMS, routing and factory

calendar are pre- requisites for capacity planning function. The capacity
planners responsible for machine loading are obliged to process the
scheduled capacity requirements in production on time.
Further standard available capacity is maintained in respective header
data of capacity category. Available capacity is the work that can be done by
a capacity at a work center per working day.
Operating time of capacity is calculated considering start time and finish
time of capacity category minus lengths of break considered for
resource/work center multiplied by capacity utilization percentages. For
available capacity calculation SAP consider Factory Calendar attached in
Header Data of work center capacity category.
For example, lets say Machine is capacity category. And it is available from
7.00 a.m to 7.00 p.m. and there is one hour break during this available time.
And Management anticipates 85% utilization of machine. And no of machine
are two nos of same specification.
So in this case available capacity will be calculated as followsShift hours [7.00 AM to 7.00 PM] less [Break 1 hour] * [No of Machine or
capacities 02 nos] *Capacity Utilization (85%)
So Available Capacity = (12-1) * 2 * 85/100 =18.7 hrs
Another important element of CRP is Capacity Evaluation which is used to
analyze capacity loads in company. In the capacity evaluations, requirements
can be compared with the available capacities.
Capacity Leveling function is used to dispatch operations. Operations are
dispatched in order to fix them at a point in time when there is sufficient
capacity for them to be carried out. The objectives of capacity leveling
include:

Leveling overloads and under loads at work centers

Achieving optimum commitment of machines and production lines

Selection of appropriate resources
And SAP has provided interface called capacity planning table which
enables to carry out detailed planning of capacity requirements continuously
over time. One can use planning table to carry out simulation.
Capacity reduction is necessary for accurate capacity planning functioning.
Capacity reduction occurs when operations are confirmed or order quantities
are reduced or cancelled.