SAP Production Planning Overview

Site Integrated Planning Overview SAP R/3

Agenda
-What is Site Integrated Planning?
- Key Responsibilities
- Master Data Parameters
- Planning Strategies
- Integration Points
- Capacity Evaluation
- Demand Management
- DRP/MPS/MRP
- Reports & Measures
- Key SIP implementation challenges

R/3 Integration R/3 Client / Server ABAP/4 CO Controlling AM Fixed Assets Mgmt. PS Project System WF Workflow IS Industry Solutions MM Materials Mgmt. HR Human Resources SD Sales & Distribution PP Production Planning QM Quality Mgmt. FI Financial Accounting PM Plant Maintenance

Supply Chain Planning SIP Material Requirements Planning Derive material requirements by exploding the production plan through a bill of material (BOM) and inform the customers SIP DRP Deployment Develop transport recommendations based on available inventory and firm production plans and execute them. SIP Site Master Production Planning Create a feasible production plan including sequencing of runs, managing inventory and line capacities. CSP Rough Cut Capacity Planning Match supply & demand by leveling capacity over a longer horizon over different plants at an aggregated or detailed level. CSP SIP DRP Planning Net off the inventory and actual orders and roll-up the demand through a distribution network to the producing plant CSP Source Allocation Allocating the forecast to different DCs DP Demand Planning Creating a forecast per week and Country / Customer Group

Definition
Site Integrated Planning -
Is the process of developing realistic supply plans and schedules for all levels of the operation that support the business strategies and objectives .

Definition
… Realistic …
- Based on demonstrated performance
- Accounts for bottlenecks / constraints
- Accounts for known changes to the business plan
… Supply Plans and Schedules …
- Accounts for different levels of precision required for different parts of the horizons

Definition
… All Levels of the Operation …
- Plans and schedules for finished products, intermediates, and raw materials.
- Evaluate constraints at each level of the plan.

Definition
… Support the business strategies and objectives.
- Plans are consistent with business strategies and operating plans
- Are tied to the Sales and Operating Plan (S&OP)

Oliver Wight MRP II Chart Business Planning Demand Management Master Production Scheduling Detailed Capacity Planning and MRP Execution (Prod.&Purch.) Rough-Cut Capacity Planning Production & Supplier Scheduling Sales & Operations Planning Distribution Requirements Planning S I P APO - SNP A dvanced P lanner O ptimizer S upply N etwork P lanner

Plan  Strategy Improved Results Integrated Planning Work Processes Planning Parameters Business Operating Strategy

Agenda
- Demand Management
- DRP/MPS/MRP

SIP Key Responsibilities
Distribution Requirements (Replenishment, Resource) Planning Deployment
deploys finished product inventory into the DRP network
pursues Customer Service and Inventory objectives
Master Production Scheduling
sets the plan for the full horizon
manages schedule stability in the fixed MRPII zone
covers multiple production levels
Material Requirements Planning
determines component material requirements
manages schedule stability in the supplier’s fixed zone
issues schedules to suppliers

SIP Key Responsibilities
S&OP Support
develops site SPI plans given S&OP direction
brings site supply issues to S&OP via CSP
Category Operating Strategy
provides site supply input to strategy
translates strategy into site planning parameters
Initiative Planning and What Ifs
provides site input to plans
establishes site plans consistent with overall initiative plan

SIP Key Objectives & Principles
1. Effective Integration Across Planning
Demand Planning
Category Supply Planning
Site Integrated Planning
2. Fully Support MRPII Class A
single plan
supports integration of execution & planning
data accuracy & integrity
minimum 18 month horizon
supports planning reliability & schedule stability zones
clear responsibility & accountability
supports MRPII Measures
3. Take Full Advantage of SAP Capabilities
utilize standard and custom functionalities in SAP
build custom reports as required
pursue bolt-on functionality for critical needs
4. Effective Integration Beyond Planning
especially where SAP dependent
including Cost, Execution, Procurement, Order Management

Agenda
- Demand Management
- DRP/MPS/MRP

Project Master Data Coordinator
Ideally the same person who will continue as the On-going Master Data Coordinator after the Project.
Project Master Data Coordinator defines & executes the preparation and upload of Master Data for testing, trial cutovers, training and going live.
Must:
Understand the SAP master data map
Sequence & dependencies of data
Preparation time & complexities
Eliminate obsolete data
Provide data to the project for from SIT onwards

Master Data Coordination Material Master Basic Views Warehouse Purchases Cost Plant B Planning Warehouse Purchases Cost Plant A Planning Other Master Data Planning Cost Purchasing Work process for creating new materials in GMDB GMDB CPDB SAP Work process for creating new materials in CPDB Communicate to functional single points of contact Each Function monitors the "Missing Views" and "Material Views" reports CPDB distribution patterns items produced Initiative process new codes Raw, Pkg. & Intermediates Finished Products Trigger database Category Logistics

On-going Master Data Coordinator
The Category Master Data Coordinator (CMDC) owns the process for creating new material codes in SAP.
The process is:
Global data client feeds new material codes into SAP through interfaces
The interface creates the Basic Data View in SAP (code#, description and unit of measure)
The CMDC communicates to each row through a single point of contact that new master data is needed
CMDC is responsible to monitor “Material Master Missing Views” report

Agenda
- Demand Management
- DRP/MPS/MRP

How do we plan?
Parameter Management
Planning
Scheduling
Monitoring and adjusting

Parameter Management
The Site Integrated Planner maintains
planning parameters to:
Define the business to be planned
Specify how to plan the business
Enable SAP to generate a “rough plan” that supports the operating strategy

Parameter Management Parameters (Master Data) are used by SAP to create a supply plan by the MRP/MPS “calculator” Forecast Master Data Inventories Supply Plan & Projected Inventories When the calculation is started it re-evaluates the existing plan based on the changes since the last time the MRP/MPS calculations occurred.

Site Integrated Planning Processes Manage Master Data Perform Long-Term Planning Perform Short-Term Planning Perform Daily Planning Perform Special Planning Generate Reports Perform Integrated Planning Measures Related Work Processes

Master Data - Parameter Management
The term “master data” is frequently used to refer to such things as material master, BOM’s, resources, recipes, etc.
Master data contains planning parameters such as lead time, safety stock, order quantities, etc.

Master Data Parameters Material Master(s) Resource BOM Recipe Production Version - firm zones - lead times - lot sizing - safety stocks - scrap factors - hours available - planned downtime - efficiency - factory calendar - cost centers - material / resource combination - capacity data / rates (machine & labor) - sequence preference - formula card structures - usage quantities - alternate BOM - BOM / recipe combination - time-phase planning (i.e. change in raw material) - Quota Arrangement Allocate percentage of business: - Production Version allocation - Capacity allocation - Source allocation (vendor, plant)

Master Data Set Up MRP 1 View - 1

Master Data Parameters Material Master(s) Resource BOM Recipe Production Version - firm zones - lead times - lot sizing - safety stocks - scrap factors - hours available - planned downtime - efficiency - factory calendar - cost centers - material / resource combination - capacity data / rates (machine & labor) - sequence preference - formula card structures - usage quantities - alternate BOM - BOM / recipe combination - time-phase planning (e.g. change in raw material) Allocate percentage of business: - Production Version allocation - Capacity allocation - Source allocation (vendor, plant) Quota Arrangement

Master Data Set Up BOM - Material Item Overview

Master Data Parameters Material Master(s) Resource BOM Recipe Production Version - firm zones - lead times - lot sizing - safety stocks - scrap factors - hours available - planned downtime - efficiency - factory calendar - cost centers - material / resource combination - capacity data / rates (machine & labor) - sequence preference - formula card structures - usage quantities - alternate BOM - BOM / recipe combination - time-phase planning (change in row material eg.) Quota Arrangement Allocate percentage of business: - Production Version allocation - Capacity allocation - Source allocation (vendor, plant)

Master Data Set Up Resources: Intervals of Avail. Capacity

Master Data Parameters Material Master(s) Resource BOM Recipe Production Version - firm zones - lead times - lot sizing - safety stocks - scrap factors - hours available - planned downtime - efficiency - factory calendar - cost centers - material / resource combination - capacity data / rates (machine & labor) - sequence preference - formula card structures - usage quantities - alternate BOM - BOM / recipe combination - time-phase planning (change in row material eg.) Allocate percentage of business: - Production Version allocation - Capacity allocation - Source allocation (vendor, plant) Quota Arrangement

Master Data Set Up Master Recipes: Overview

Master Data Parameters Material Master(s) Resource BOM Recipe Production Version - firm zones - lead times - lot sizing - safety stocks - scrap factors - hours available - planned downtime - efficiency - factory calendar - cost centers - material / resource combination - capacity data / rates (machine & labor) - sequence preference - formula card structures - usage quantities - alternate BOM - BOM / recipe combination - time-phase planning (i.e. change in row material) Allocate percentage of business: - Production Version allocation - Capacity allocation - Source allocation (vendor, plant) Quota Arrangement

Master Data Set Up - Production Version

Master Data Parameters Material Master(s) Resource BOM Recipe Production Version - firm zones - lead times - lot sizing - safety stocks - scrap factors - hours available - planned downtime - efficiency - factory calendar - cost centers - material / resource combination - capacity data / rates (machine & labor) - sequence preference - formula card structures - usage quantities - alternate BOM - BOM / recipe combination - time-phase planning (i.e. change in row material) Allocate percentage of business: - Production Version allocation - Capacity allocation - Source allocation (vendor, plant) Quota Arrangement

Master Data Set Up - Quota Arrangement

Time Bucket & Evaluation Area
Work Process Focus Time Bucket Evaluate Area
Long-Term Planning 3-24 mo. Monthly/Weekly Superior WC
Short-Term Planning 0-3 mo. Weekly/Daily WC/Material
Daily Planning 0-1 mo. Daily Material

Long Term Planning
LTP is a set of work processes that are
performed monthly and focus on the
3-18 Month portion of the integrated plan to ensure it:
is feasible
is consistent with the S&OP
supports the operating plan
provides a basis for scheduling

Long Term Planning - Input/Output
Business operating strategy
Master data
Category demand plan verified against supply capacity (multi-sourced items)
S&OP interplant & inventory recommendations (if applicable)
Resource hierarchy groupings
Balanced long-term plan by superior resource, for alignment with the S&OP plan
Interplant plan created within the SAP system (if applicable)
INPUT OUTPUT

Long Term Planning

Short Term Planning & Scheduling
STP is a set of work processes that are performed at least weekly and focus on the 0-3 month portion of the integrated plan.
The processes are designed to:
Balance the capacity load at the resource level
Convert the plan to a detailed schedule
Generate supplier delivery schedules

Short Term Planning - Input/Output
Long Term plan balanced
Master data accurate
Planning parameters accurate
New Demand (0-3 months)
Balanced short -term plan by resource/material
Convert the weekly schedule to a daily schedule within the planning time fence
Communicate production schedule
Communicate vendor’s schedule
INPUT OUTPUT

Short Term Planning

Daily Planning
Monitor the execution of the short term schedules
Assess the on-going validity of the schedule and adjust as necessary
Daily Planning is a set of work processes that are performed daily to monitor the execution of the integrated plan. The processes are designed to :

Daily Planning - Input/Output
Short Term plan balanced
Master data accurate
Planning parameters accurate
Communication process across department established
Monitor the validity of the planning process (daily)
Make sure the production plan is consistent (daily)
Make sure the supplier scheduling are consistent (daily)
Provide a link between Planning and Execution
INPUT OUTPUT

Daily Planning

Summary Points
Site Integrated Planning helps link the plan to the operating strategy
All functions must work together and be aligned to the operating strategy
The business to be planned is defined by maintaining planning parameters & master data
The plan is generated by an MRP/MPS run that is based on the parameters & master data
The plan is a continuum that consists of scheduling and planning horizons

Agenda
- Demand Management
- DRP/MPS/MRP

Key Business Partners
Category Supply Planning
Site Integrated Planning
Production/Execution
Shipping/Receiving
Purchasing
Accounting
Maintenance
The effective execution of the operating strategy requires the coordinated efforts of:

Data „from“ SIP
Production Execution
line supply driven by Planning BOM’s
production as scheduled and recorded against the process order
planned downtime reflected in the production schedule
MPS performance measure data
Cost Accounting
annual budgeting and standard cost setting
Purchasing
planning data used by Purchasing with supply base
tight loop of plans / orders / receipts / invoices / payments
SSP and MRP performance measure data
Plant Maintenance
planned maintenance downtime reflected in the production schedule
Shipping & Receiving
stock transport/replenishment orders provided to shipping
material receipt plans provide an outlook for receiving planning

Data „to“ SIP
Production Execution
process order production confirmation (partials & finals)
component material usage recording either
backflush with staging area reconciliation
direct goods issue to the process order
Cost Accounting
variance reports provide data to aid BOM accuracy efforts
Purchasing
purchasing data drives component material acquisition (sourcing & pricing)
Plant Maintenance
planned maintenance built into work center available hour plans
Shipping & Receiving
planned shipments and resulting inventory reservations
ASNs provide visibility to Planning for incoming materials

SIP-SD
Sales documents consume logically IndReq
(i.e.: IndReq 100, Order 20, MRP run >> Order becomes an order of 20 and IndReq is reduced to 80. The total requirement is still 100)
Transfer of Requirements (TOR) is transmitted to SIP during the sales order creation. (TOR must be configured according to the MM and PP inputs)
Delivery consumes physically the stock
Define the consumption mode
Define the availability check functionality
Use Stock Requirement List/Monitoring tools
Make sure all business cases are covered

Processing Procedure Completion confirmations Production Receipt Archiving / Deleting Batch Number Assigned Staging Materials 11 Control recipe creation Operations PO header Phases Process Instructions Resource allocations Material components Release of process order Demand for process order (MRP ...) Relationships Relationships Process order execution Process order settlement Process order creation SIP-PP/PI 9 8 6 5 3 Costs 4 1 2 7 10 1

Data Flow in PP-PI Bill of Material Master Recipe Production Version Process order
Resources
Control Key
Printed Report
Production Execution Production rqmts Planned order Process control Manually
Order Type
SIP-PP/PI WH QA SIP PE CO

SIP-Purchasing
Purchasing Vision Planning
Purchasing Vision Execution
- Manual Delivery Schedules
- Automatic Delivery Schedules
- Manual Purchase Order
- Auto PO

Purchasing Vision Planning Vendor Master Material Master Request for Quotation Entry of quotation data Quotation Comparison Create Outline Agreement Create Source List Create Quota Arrangement SIP-Purchasing

Scheduling Agreement Delivery Schedules Send to Vendor Valid Source List Purchasing Vision Execution Manual Delivery Schedules Generation Manual Creation SIP-Purchasing

Purchasing Vision Execution Delivery Schedules MRP Sch. Agreement SIP Master Data Requirements Source List Automatic Delivery Schedules Generation SIP-Purchasing Send to Vendor

Approved Requisition Purchase Order Send to Vendor Allocate Source and process Purchasing Vision Execution Manual Purchase Order Generation (Assign&Process) SIP-Purchasing

Automatic Purchase Order Generation (Auto PO) Approved Requisition Quota Arrangement Send to Vendor Purchase Order Run Auto P.O. Program Source List Non-Sourced Requisition Purchasing Vision Execution SIP-Purchasing

Agenda
- Demand Management
- DRP/MPS/MRP

Capacity Evaluation
The planner can view the superior work
center capacity situation using two methods:
Capacity Evaluation
(Logistics/Production/Capacity Planning)
Planning Table
(Logistics/Production/Repetitive Manufacturing)

Capacity Planning

Capacity Leveling: Auto. Leveling

Planning Table

Graphical Planning Table orders include average setup time orders spread across the week 7 days cycle

Agenda
- Demand Management
- DRP/MPS/MRP

Use of Forecast Consumption
Determines plan’s responsiveness to actual order activity
Integrates Orders and Forecast
Evaluate impact of demand coming in early or late
Backward / Forward / Both, with set horizons
Key MRPII Stability Tool
Demand Management

Manage Demand Work Process

Agenda
- Demand Management
- DRP/MPS/MRP

MPS/MRP
What is it?
How does it work?
How shall we use it?

MPS/MRP
A set of SAP programs that are designed to calculate a production plan based on configuration settings, master data and raw data inputs.
What is it?

MPS/MRP
Processes one code at a time
Calculates from the present out into the future
The primary steps are
determine if orders are needed
calculate the quantity and timing of the orders
assign internal production versions or external sourcing based on the mrp quotas
schedule the orders (calculate start and stop times based on the recipe and the resource)
explode out dependent requirements based on the BOM
How does it work?

Inventory Strategy
Here are three methods that can be used
in SAP for inventory strategy (buffers):
Safety Time
Safety Stock
Coverage Profile

MPS/MRP Example 1 Impact of Safety Stock 42 40 45 44 43 42 40 41 42 41 41 40 40 50 60 Ending Inventory 12 0 6 6 6 12 9 24 21 15 21 15 0 0 Planned Order 30 40 39 38 37 30 31 17 21 26 20 25 40 50 Projected Inventory 10 5 5 5 5 10 10 25 20 15 20 15 10 10 Demand Su Sa F Th W T M Su Sa F Th W T M Lot for Lot Lot size type 3 Rounding Value 40 Safety Stock 6 Minimum Order Qty A Material Code Planning Table (days)

MPS/MRP Example 2 Impact of Safety Time 0 10 15 20 25 24 28 32 51 65 71 82 70 62 60 Ending Inventory 0 0 0 0 6 6 6 6 6 9 9 27 18 12 Planned Order 0 10 15 20 19 18 22 26 45 56 62 55 52 50 Projected Inventory 10 5 5 5 5 10 10 25 20 15 20 15 10 10 Demand Su Sa F Th W T M Su Sa F Th W T M Lot for Lot Lot size type 3 Rounding Value 4 Safety Time (days) 6 Minimum Order Qty A Material Code Planning Table (days)

MPS/MRP Example 3 Period Lot Size 41 0 5 10 15 20 30 40 -43 -23 -8 12 27 37 47 Ending Inventory 51 0 0 0 0 0 0 108 0 0 0 0 0 0 Planned Order -10 0 5 10 15 20 30 -68 -43 -23 -8 12 27 37 Projected Inventory 10 5 5 5 5 10 10 25 20 15 20 15 10 10 Demand Su Sa F Th W T M Su Sa F Th W T M 1W at end of week Lot size type 3 Rounding Value 40 Safety Stock 6 Minimum Order Qty A Material Code Planning Table (days)

MPS/MRP
MRP is run in a batch mode for all plants
It starts at 4:00 AM and completes by 6:00 AM eastern time
It is run Monday through Sunday
How shall we use MRP to generate our plans?

MPS/MRP - Running MRP

MPS/MRP - The MRP List

MPS/MRP
MRP List vs. Stock Requirements List
MRP List : 1. Is a static picture of the planning position as of the last mrp run 2. Has exception messages that provide useful information regarding the plan Stock Requirements List: 1. Is a dynamic list that reflects the most up to date picture of all the mrp elements 2. Does not have all the exception messages generated during the mrp run 3. Is the same as the mrp list at the end of the mrp run but then deviates as changes are made to the mrp elements.

MPS/MRP
MRP Elements and their relationships
Finished Product Intermediate Raw Material Demand: IndReqsCusReqs RelOrds Supply: PlOrd.PrOrd. SchlneShipNt Demand: Supply: DepReqOrdRes PlOrd.SchAgr RelOrd SchLneShipNt Demand: Supply: DepReqOrdRes PlOrd.PrOrd. RelOrd SchLneShipNt

DRP
What is it?
How does it work?
DRP master data

What is DRP?
Distribution Requirements Planning (DRP) is composed of work processes and tools in SIP that handle “distribution demand” across a specific network of Plants/Warehouse/DCs/Contract Manufacturing/Importers/Exporters/
Customers.

How does it work?
DRP in general is divided in 2 sub components:
Planning
Deployment
Planning
Determines how much and when inventory and planned supplies should be deployed to distribution centers, importers and direct customers taking into account of lead time, transportation mode, schedule, loadability, order mixing, and other constraints
Deployment
To optimize the distribution of available stock in the distribution network.

Planning Process
Establishing network sourcing strategy.
Parameters management – setting planning parameters to support operating strategy.
Uploading the demand forecast into SAP’s demand management module
Calculating replenishment orders for distributions centers through MRP run .
Feeding/aggregating net demand to production plant (MPS run)

Distribution Resource Planning Bill of Distribution Customer Orders Sales Forecasts Inventory Records In-Transit Shipments To: Master Production Scheduling No Yes Transportation Planning Warehouse Space & Resource Planning Distribution Requirements Planning Realistic?

Distribution Network Planning Tools Sales to Customers Sales to Customers Sales to Customers Sales To Customers MPS MRP Warehouse (A) DRP Warehouse (B) Warehouse (C) Puree Chemical Company Main Plant Warehouse

Parameter Management Planning Tools Sales to Customers Sales to Customers Sales to Customers Sales To Customers Inventory policy F/c Consumption logic Sourcing plant/DC Total Order Lead time Replenishment Frequency Local Repacking Warehouse (A) Warehouse (B) Warehouse (C) Puree Chemical Company Main Plant Warehouse MPS MRP DRP

Upload of Forecast Sales to Customers Sales to Customers Sales to Customers Planning Tools Sales To Customers Forecast Forecast Forecast Forecast Warehouse (A) Warehouse (B) Warehouse (C) Puree Chemical Company Main Plant Warehouse MPS MRP DRP

Generating Replenishment Plan Sales to Customers Sales to Customers Sales to Customers Planning Tools Sales To Customers Forecast Forecast Forecast Forecast Warehouse (A) Warehouse (B) Warehouse (C) Puree Chemical Company Main Plant Warehouse MPS MRP DRP

MRP Element Linkage MPS run MRP run MRP run

Deployment Process
Evaluating the day-to-day capability of the source sites to ship the required ideal DRP replenishment orders.
Simulating deployment plans and analyzing impact on individual markets/DCs if required*.
Developing priorities & alternatives plans when all of the DRP replenishment orders cannot be met.
Creating orders for properly weighted & cubed vehicles for shipping.

DRP - Planning Master Data
DRP Planning data is contained in MRP1, MRP2, MRP3, and MRP4 views
MRP1 view - general data, material owner, and lot size data
MRP2 view - lead time scheduling and inventory strategy
MRP3 view - planning and availability check
MRP4 view - enablers (BOM and material transition)

DRP - Material Master - MRP Group
Pre-set control parameters representing category specific planning strategy
MRP Group is set up in configuration
MRP Group is included as part of an MRP Profile
Key planning parameters in MRP group :
Planning Time Fence
Re-scheduling Period
Forecast Consumption

DRP - Quotas - Overview
Quota at plant with production facilities is used to determine how production will be allocate across multiple production version.
Quotas setup for DRP is used differently.
Quota for importers determine how supply will be allocated across multiple external source (exporters).
Importers’ quota setup also defines if ‘ Planned Stock Tr ansfer Order (STO)’ is used .

DRP - Quotas - Data Entry Screen
Quota Setup to enable Planned STO (net demand) link to supply site:
Special Procurement Type (S): U (Stock Transfer)
Populate both Plant (PPl) and vendor fields.

DRP - Special Procurement Type (1)
- The quota must be used where there are two
(or more) sources supporting a single location.
This the use of the special procurement key (or type) can be used in situations where there is a single source.
Just need to enter the newly defined SP type in MRP 2 will allow the link of demand without quota setup.
Maintained in customizing (OMD9)

DRP - Special Procurement Type (2) Receiving Plant Source Plant Special Proc. Type* F: External Procurement Defines the procurement more specifically

Agenda
- Demand Management
- DRP/MPS/MRP

Performs netting, lead time offsetting, lot sizing, BOM explosion, sourcing (according to Supply Parameters)
Works Multi-level, e.g. from FP to Intermediate to Raw/Pack materials
MPS: Master Production Scheduling
MRP: Material Requirements Planning
SIP’s MPS/MRP Engine

Site Integrated Planning Process
1. MRP Engine
drives multi-level/echelon planning
generates exception messages to review/fix plans
2. DRP Deployment (currently shared btw SAP and Legacy systems)
driven by DRP Planning parameters
replenishment recommendations
scarcity deployment & allocation
vehicle building capability (truck assignment tool, cube, weight, unit load capacities)

Site Integrated Planning Process
3. Master/Material Production Scheduling MPS
long term planning
short term planning & scheduling
driven by master data & planning parameters
production resource capacity balancing
use of MRP II fixed & firm zones
4. Material Requirements Planning MRP / Supplier Scheduling
driven by master data & planning parameters
driven by Procurement data (supplier data)
use of MRP II fixed & firm zones
5. Key Outputs
Production Schedules, Supplier Schedules (via fax)
SPI Plans - for site and CSP use

Aggregation Capabilities - through hierarchies and groups (very flexible), D/W/M views
Capacity Evaluation Analysis - user decision support provides work center loads (machine & people)
User controls resolution.
Use alternate line, build inventory, take inventory risk.
Automatic Leveling Functionality
Planning Tables - worksheet like capability with interactive work center loads (MF50, CM29)
Time Phased Functions to program supply parameter changes for the future, and plan/evaluate accordingly
Decision Support Reports (on line) - stock requirements list, MRP list & exception messages, SPI report, also What-If
Key Output Reports - production schedule (to Excel, e-mail), Supplier schedules (with auto fax), SPI report
Key Site Integrated Planning Tools

“ SIP Tools at work”
Below are listed the “SIP Tools at work“
1. Aggregation Capabilities
2. Capacity Evaluation
3. Automatic Leveling Tool
4. Planning Tables and Tools
5. Time Phased Functions
6. Decision Support Reports
7. Key Output Reports
8. SIP Measure Reports

Data Accuracy Audit Support
MRP Parameters Report
Bill of Material Accuracy
Recipe/Routing Accuracy
Recipe Rate Analysis
MPS Performance Measure
MRP Performance Measure
SSP Performance Measure
Key Site Integrated Planning Measures

Agenda
- Demand Management
- DRP/MPS/MRP

Planning Parameter Choices
Driven by Operating Strategy
Assessed across the Supply Chain
Building Organization Capability
Site Key Users
Site End Users
Master data coordinator
Organization Design
Site Integrated Planner concept
Site Supply Chain Leader
Key SIP Project Challenges (1)

Key SIP Project Challenges (2)
Allocating sufficient, experienced resources Full-time to the project as Key-Users.
Assigning End-Users Full-time during BAT, Q-pilot and Training.
Defining the “Final Organization Setup“ early in the project. (before BAT)
Preparing for the Matching Session.
Documenting all business cases thoroughly and in great detail
Documenting “future“ business cases which is in scope
Documenting current and future (if required) setup for the whole production (lines, etc.), material flow, and planning process
Preparing to convert to Site Integrated Planning.
- Migration Strategy
- Migration Tools

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SAP Production Planning Overview

by Rupesh Brahmankar on Aug 29, 2009

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SAP Production Planning Overview — Presentation Transcript