What does a work center control?

In SAP Production Planning (PP), awork centeris a critical master data object that represents a specific location where production operations are performed. It plays a pivotal role in various aspects of production management, including costing, capacity planning, and scheduling. The primary controls associated with a work center are:

Calculation of Costs of Work Performed (A): Work centers are assigned to cost centers and have associated activity types. They utilize formulas to calculate operation costs based on parameters such as machine time and labor. This setup enables precise determination of production costs.

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Availability of Capacity (C): Work centers define available capacities, including labor and machine capacities. They store data and formulas necessary to calculate capacity requirements for operations, facilitating effective capacity planning and ensuring that production resources are optimally utilized.

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Regarding the other options:

Release of Production Orders (B): The release of production orders is managed at the order level and is not directly controlled by work centers.

Valuation of Bill of Material Components (D): The valuation of components in a Bill of Materials (BOM) is determined by material master data and valuation classes, not by work centers.