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 If you have created a new MRP-relevant material that supports both in-house production and external procurement, you need to specify the procurement type for the material in the material master record. The procurement type determines how the material is procured, either in-house, externally, or both. If you do not specify the procurement type, the MRP run does not consider the material, and it has to be planned interactively using the MRP Live app or the MD04 transaction. In interactive planning, you can manually assign a procurement type to the material and create the corresponding order proposals, such as planned orders or purchase requisitions. Alternatively, you can maintain a production version for the material, which defines the procurement type and the BOM and routing to be used for in-house production or external procurement. The production version can be assigned to the material in the material master record or in the MRP Live app or the MD04 transaction. The production version allows the MRP run to plan the material automatically based on the specified procurement type123. References: Procurement Type | SAP Help Portal, Production Version | SAP Help Portal, Material Requirements Planning with SAP S/4HANA, page 79-80.

A routing operation is a step in the production process that defines the work center, the duration, and the sequence of the operation. A routing operation consists of several time elements that are used to calculate the operation start and finish dates, as well as the capacity requirements. The time elements that are part of a routing operation are:

• Move time: The time required to move the material from one work center to another, or from the storage location to the work center.
• Setup time: The time required to prepare the work center for the operation, such as changing tools, adjusting machines, or cleaning the work area.
• Processing time: The time required to perform the operation, such as machining, assembling, or testing the product.
• Teardown time: The time required to restore the work center to its original state after the operation, such as removing tools, resetting machines, or disposing of waste.
• Queue time: The time that the material waits at the work center before the operation starts, due to the work center being occupied by another operation or having a fixed start date.

The pick/pack time and the float before production are not part of a routing operation. The pick/pack time is the time required to pick the material from the storage location and pack it for delivery, which is usually part of the outbound logistics process. The float before production is the time buffer before the scheduled start date of the production order, which can be used to compensate for delays or changes in the production plan.

References: [Production Planning with SAP S/4HANA], pages 177-179; [SAP Help Portal: Routing Operation].

You can achieve planning only for specific resources in Advanced Planning (PP/DS) by using a resource group. A resource group is a collection of resources that share the same characteristics and can be used interchangeably for production. You can assign a resource group to a product or a production version, and then use the resource group as a selection criterion in the planning board or the product view. This way, you can restrict the planning to only those resources that belong to the resource group. References: SAP S/4HANA Manufacturing for Planning & Scheduling - Implementation Guide, page 25; [SAP S/4HANA Production Planning and Manufacturing Certification Guide], page 79.