A high level of thought and effort goes into the making of an efficient production plan. The right kind of production planning in SAP helps not only a business in reducing costs and maximizing profitability but also ensures that customers receive products of the highest quality. SAP Production Planning handles production-related activities, such as material requirement planning, bill of material, capacity planning, and much more. It records and tracks key manufacturing process flows; for example, movement of goods from the conversion of raw materials to semi-finished goods.