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Uncovering the Reality of SAP's Production Planning & Detailed Scheduling Module
Many companies who have invested in SAP ECC/APO are just now starting to deploy at the plant level after heavily focusing on demand and supply network planning. As a part of the SAP journey PP/DS is the next logical solution to deploy or optimize. If you’re considering PP/DS, or already have it implemented but are struggling to harness it’s full potential, you’ll benefit from this webinar.
This presentation will help people better understand;
- What PP/DS really capable of accomplishing
- Where PP/DS interacts with SNP
- How PP/DS differs from SNP
- Ways to enhance Block planning
- Why PP/DS can help manage production resource, specifically related to lead times, setup costs, delays and modes
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Supply Planning Leadership Exchange: SAP PP/DS What You Need to Know Part 1
1. Page1
SUPPLY PLANNING LEADERSHIP EXCHANGE
PRESENTS:
The web event will begin momentarily
with your host:
November 15th , 2012
plan4demand
2. Overview
What are the PP/DS Components
What does PP/DS really accomplish
What should it mean?
– Optimizing , Block Planning
PP/DS – Step by Step
– PP Heuristics Planning
– DS Optimization
– Set up Matrix
Bottom Line
3. Clearly Define the PP/DS Components and
Functionality
Differentiate Between Heuristics and Optimizer
Identify common Block Planning and Set up Matrix
requirements
Discuss some specific actions that can help you start to
get this difficult process under control and understood
in your organization
4. • Demand Plan
• Supply Plan
• Rough Cut Capacity
Plan
• S&OP Forecast • Production Plan
• Annual Operating Plan Tactical • Finite Plan & Schedule
(Budget) • Labor Plan
• Standard Cost
• Brand Plan
• Materials Plan
• Strategic Logistics Plan • Set Up Matrix
Operational
Strategic
• Strat Plan
• CapEx Plan
• Portfolio Plan/Product
Roadmap
• IT Roadmap
5. Page 5
PP/DS is primarily divided in two areas
Release Demand Run SNP Optimizer to
Plan to SNP produce Supply Plan
* Depending on the business Production Planning
requirement may require more than * PP heuristics
one run (Production Plan)
Convert supply elements Orders * DS Heuristics
(production or purchase ) (Detailed Feasible Plan)
Interactive detailed planning in
DS planning board.
Detailed Scheduling
6. Page 6
Features Key Benefits
– Multi-Level Production Plan – The How, When, and Where
– Capable-to-Promise resources and materials should
be deployed.
– Supports lot quantity
calculations – Master Planning for Materials
and capacity (Resource Loads)
– Supports the following
business models – Realistic Delivery Date
confirmation
Make to Stock
Make to Order
Make to Order with Order
BOM
Engineer to Order
Flow Manufacturing
– Order Pegging
– Integrated with Alert Monitor
7. Page 7
Features Key Benefits
– Scheduling Optimizer – Optimal production sequence
– Optimal Sequencing (feasible and executable)
– Flexible & Graphical – Allows simulation of planning
scenarios for optimal schedule
Activity Scheduling
– Optimization based on actual
– Backlog Resolution
constraints
Planning
– What-If Analysis &
Simulation
– Forward & Backward
Scheduling
8. Release from SNP
to
PP/DS
ECC APO
PP Heuristic
&
PP Optimizer
CIF
Sales Orders
Stk. Trnsfr. Orders
Inventory
Process Orders Evaluate the Planning
Purch. Orders Results
Execution: Interactive Planning: Create,
Process Order Release Change, Reschedule Orders in
& Production the Planning Board
Confirmation
9. Elements that compliment PP/DS
Alert Monitor (Exception Management)
Heuristic Framework (User Friendly Development Area)
Simulation versions (What If )
Standard Reports (Several Standard Reports)
3
6 5 4 2 1
time
10. Page 10
Application of rules
Customer-specific rules using the Heuristic Framework
Scheduling result is easier to understand and influence
Mostly limited to one bottleneck resource (except
for Multi-Level Heuristics)
Only applicable to scheduling problems with limited
(modeled) complexity (e.g., no loops)
Better suited for workaround solutions if constraints
cannot be modeled properly
Heuristic finds only one solution which is always a result of the sequence of products or resources planned.
There are winners and losers in Heuristics. It is a step by step procedure
11. Page 11
Sequence Optimization
Simultaneous consideration of multiple operations, resources, and BOM
levels
Suited for complex (modeled) scheduling problems
Better suited if there is an optimization potential which cannot be
described by simple rules
– e.g., if the structure of the scheduling problem changes depending on the
order mix
Scheduling result are more difficult to understand and influence
Helicopter view over all resources and products and plans.
– A problem at one end of the resource network
– Caused by a good solution on the other end of the resource network
– Optimizer can go back and solve the issue over the whole network and come
up with a solution that is feasible for all resources in the network.
Heuristic would have to have
reiterate runs with readjustment to runs and the problem moving around the resource network .
13. 13
Demand Planning Final Forecast (12 Months) per product family (CBF)
SNP Engine HEURISTICS CAPABLE TO MATCH OPTIMIZER
Run with a • Plans the whole Network (Multilevel Planning) Run in the sequence of the pre-defined
predefined • CTM can execute Bucket and Time Continuous Planning production cycle considering the following:
Horizon *Storage cost
• Mixed Resources can be used by SNP with bucket and
time continuous definitions *Order Cost (production cost & setup cost)
•Capacity • Prioritize demand and categorize your supply accordingly *Profit Margin
Leveling must
be run to • Block Planning - considers characteristic values of orders *Penalty of Late orders
achieve a during planning and creates orders with corresponding
characteristic values relevant for variant configuration or *Non-delivery
somewhat
constrained for characteristics-dependent planning (CDP) *Procurement cost
capacity plan • Planning with products configured for CDP, considers The result: the Optimal Production Quantity for
block definitions of resources and fixed blocks. the Product Family
Prod. Qty is transferred to The Optimal Production Quantity is the preliminary size of the block.
PP/DS PP/DS to create the Blocks This determines the frequency of the block in the production cycle.
Create Blocks in Resource Master. Generate week schedule for the Production Lines.
14. Private party on Saturday….. No
SNP make the following decisions. SNP Orders
– Take place in Planning Periods or Buckets
Source of Supply
– No defined sequence
Approximate Production Date
– Lot sizes correspond to Maximum quantity
Quantity for Planning Period
SNP: Planned orders in PPDS: Calculates daily, hourly
weekly buckets schedules
SNP order(Bucketed Order)
100 SNP horizon
Last Week PP/DS Horizon SNP planned orders in the SNP horizon will be
converted to detailed schedule (PPDS orders)
W1 W2 W3 W4 W5
PP/DS Horizon
SNP horizon
Today 100
W2 W3 W4 W5 WK6
Conversion of Detail Plan Optimization / PP/DS order - (continuous time scale with
to Process orders Sequencing start time and end time)
20. Page 20
A Matrix contains
– For each possible setup transition at a single resource
The setup times
The setup costs that are necessary to change the setup status of the
resource to another setup status.
You can use a setup matrix to model sequence-dependent
setup times and setup costs for a single resource.
Based on the setup matrix, the system will do the following:
– Determines the correct setup
– Determine optimal operation sequences (with regard to setup time
or setup costs) during optimization
– Determine the production process model for creating a setup
order and clean-out order during campaign optimization
21. Prod A Prod B
Time
Maintain Setup Matrix- Prod A Time Prod C
/n/sapapo/cdpsc7
Display Setup Matrix- Prod B Time Prod A
/n/sapapo/cdps_setup
Prod B Time Prod C
Prod C Time Prod A
Prod C Time Prod B
22. Setup Group: Classification of an operation according to a characteristic that is
relevant to planning and which the system should consider during scheduling and
rescheduling.
Maintain Setup Group- Group A
Time Group B
/n/sapapo/cdpsc6
Group A Time Group C
Group B Time Group A
Group B Time Group C
Group C Time Group A
Group C Time Group B
23. While performing detailed scheduling
– System will read the setup matrix that defines the sequence-
dependent setup time.
Demand A C B A
Setup time on resource Setup time in minutes
Prod. A B C
Product A:
A 0 10 20
B 30 0 10 Product B:
C 40 30 0 Product C:
Finite Schedule
time
20 30 30
A Setup C Setup B Setup A
Optimal Schedule
Set- Set-
A A up B up C
10 10
24. What is the level of constraints you currently face
in your production environment ?
Answer on the right hand side of your screen
A. High Fixed Constraints
B. High Variable Constraints
C. Medium Fixed Constraints
D. Medium Variable Constraints
E. Low Fixed Constraints
F. Low Variable Constraints
28. 29
Opt: Run what if analysis if extended the block
Requirement/Receipt Alerts: Re-schedule if the block is adjusted.
– Product Too Late/Early Setup PP/DS
Shelf Life Alerts: Alert Profile Custom Capacity Alert Sent to
– Shelf Life too short/ long the planner (e.g. 70% ).
– Receipt with out Pegging Relationship
Run PP/DS
Orders in Past Alerts: Planning
– Sales Order in the past
– Receipt due date/time in past.
Adjust Plan
Order Alerts-Product Dependent: Interactively
View Alerts
– Order creates surplus
– Order has shortage
Days’ Supply Alerts: Notify Person Analyze Alert
– Below minimum days’ supply Responsible Situation
– Required days’ supply exceeded
Average Resource Utilization(PP/DS):
– Average resource overload Action
– Average resource underutilization 1. Do nothing.
– Capacity overload on bucket resource 2. Extend the block.
3. Fix the block.
Inventory Alerts: 4. Yell at Demand Planner for the forecast being too high.
– Stock fallen below safety stock level
29. Page30
PP/DS fulfills the need of production planner by
– Creating feasible plan taking into consideration constraints
– Provides the tools needed to plan and schedule
Insure a crisp transition from SNP to PP/DS
– SNP should do the heavy lifting with PP/DS putting the icing on
the cake
– Insure high transparency between SNP and PP/DS
Understand the type of scheduling you what to do
– Block, Campaign …
Understand the engine that will drive your PP/DS
– A large variety of heuristics are available to plan products
– The ability to build your own Heuristics
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31. For More Information Contact:
Jaime Reints
412.733.5011
jaime.reints@plan4demand.com