Traditional SAP ERP systems utilize the classic MRP approach with separate capacity planning. This often requires multiple iterations to achieve a production plan that is balanced in terms of capacity, a process that is especially cumbersome in multi-level manufacturing and nearly impossible to manage manually in today's complex environments. The significant costs, integration challenges, and demands on IT support have frequently prevented mid-sized companies from implementing an external Advanced Planning System. Consequently, the limited capabilities for finite scheduling within the ERP system result in production plans that are often impractical in the manufacturing setting.

To bridge these gaps, companies may resort to using tools like Excel, which ultimately compromises data transparency due to a lack of integration with the ERP.

With SAP's embedded PP/DS (Production Planning and Detailed Scheduling), planners gain access to a robust set of tools that offer numerous benefits: cross-plant and cross-dispatch stage coordination results in smoothed and feasible production plans, reduced throughput times across the entire production chain, and setup-optimized scheduling that maximizes capacity utilization.

All manufacturing constraints—such as machine, labor, and auxiliary capacity, as well as availability—are simultaneously considered. A key innovation in S/4HANA is the full technical integration of ePP/DS, facilitating a seamless transition from detailed planning to production execution. In S/4HANA installations, PP/DS is already technically included and can be activated through simple configuration. Master data like material masters and work centers can be selectively enabled for detailed planning and optimization by setting specific indicators, allowing for a gradual deployment of PP/DS.