Role of Work Center in Production Planning.

Work center is defined as station in production process where different operations are to be performed.

Here we can define machine, prod line, assembly and employee or group of all as work center.

It is among the most important master data of production planning module, It is assigned with cost center for cost collection and accumulation purpose.

It is also used in process scheduling and capacity planning.

Here we have taken example of engine assembly line for describing work center defining process in details.

Work Center

The following types of work centers are defined :

1. Production Work Center, at least one for each cost center linked to production lines;

2. Overhead Work Center, one for each cost center ;

3.Work center lines, to manage production version.

Production Work Center

This type of work center relates to the work centers defined in the area of Production.

They are useful for production, scheduling and to calculate capacity. Activities provided by this work center are:

Direct labor

Production work centers defined in SAP will differ from the physical working stations as planning and costing don’t need that detail:

therefore the following work center will be defined :

Work Centers Engine Final Test (one for Petrol Engines and one for Diesel Engine)

Engine Assembly lines (one for Petrol Engines and one for Diesel Engine)

Work Center for Sub-assembly, grouping the 10 physical work stations.

Work Center for Casting,

Work Centers for reworking (one for Leader Engines and one for Diesel Engine).

Overhead Work Center

These are the dummy work centers defined in system to collect the overhead costs, in order to define total product cost.

Activities provided for these types of work centers are:


2. Indirect labor

3. Outside services

4.Generic depreciation

Auxiliary materials


SAP T Code Work Center

work centers can also be defined on basis of nature of operation, same type of machines group, alternative machine and same type of skilled labor.

Your feedback

Your feedback is important to us. Please mail your suggestions/issues to