Production Planning and
Detailed Scheduling (PP/DS)
in SCM
EGN 5623
Enterprise Systems Optimization
(Professional MSEM)
Fall, 2011
Production Planning and
Detailed Scheduling (PP/DS)
in SCM
Theories & Concepts
EGN 5623
Enterprise Systems Optimization
(Professional MSEM)
Fall, 2011
Production Process (review)
Purposes for Production Planning:
to meet the demand
to consider the resource capacities and the
material availabilities
to improve utilisation of the resources
to low set up time
to minimise the stock, and
to minimise the work in process (WIP)
to improve stability of the plan
Hierarchical Planning Framework
(review)
Procurement
Long term
Mid term
Short term
-Material programs
- Supplier selection
- Cooperation
Distribution
Production
- Plant location
- Production systems
- Subcontractors
- Physical distribution
structure
- Transportation strategy
-- Personnel training
-- Contracts
-- Material Requirements
Planning
-- Master production Scheduling
-- Capacity planning
-- Distribution planning
-- Personnel scheduling
-- Material ordering
-- lot-sizing
- operations scheduling
- shop floor control
- Product program
- Strategic sales
planning
-- Mid-term sales planning
- Warehouse replenishment
- Transportation planning -- Mid-term sales planning
EXECUTION
Flow of goods
Sales
Information
Feedback
Process Chain for a Make-to Stock
Production (review)
PP/DS Scope in SNP
PP/DS Scope in SNP
SNP determines the sequence of the locations to be planned
and starts with the location that only has inbound
transportation lanes.
There is a demand at the customer location. The net
requirements calculation before planning does not find any
planned receipts to cover the demand at this location.
The product in a DC is procured externally. The system
analyzes the possible transportation lanes and comes to the
distribution center.
PP/DS Scope in SNP
Assumingly, there are no planned receipts at the
distribution center at the beginning of planning, SNP runs a
check using the possible transportation lanes which arrive
at the plant.
There are also no planned receipts available at the plant,
and the product is produced in-house, so the SNP
explodes PDS and creates planned orders for each
finished product, which is decomposed into dependent
demands for its components.
SNP turns the demand for components into purchase
requisitions using possible transportation lanes and quota
arrangements or priorities.
SNP Heuristics used for PP
Three interactive PP planning methods:
1. The location heuristic
• Only plans for selected products in a location on one
level.
2. The network heuristic
• Plans for all selected products in all locations on one
level.
• SNP defines the sequence of locations internally.
3. The multilevel heuristic
• Plans for selected products in all locations on all levels.
• The location sequence is determined automatically for
each product.
• Note that all components of the selected product are
planned. This corresponds to a multilevel cross-plant
MRP run.
Basics of PP/DS
PP/DS prerequisites:
• Master data for products
• Resources
• PPM or PDS
Planned order life cycle (see Figure 15.1)
• Creation of a planned order to balance demand
requirement
• Conversion to a production order
• Release of a production order
• Confirmation (completion) of production order
Planned Order Life Cycle
Planned Order Properties
Properties of planned orders and production orders (Tables
15.1 and 15.2):
•
•
•
•
Order Status & Category
Fixing indicators
Schedule status
Other flags reflecting order status
Order Status for Planned Orders
in PP/DS
Order Status for Production
Orders in PP/DS
PP/DS categories
Indicator and Schedule Status
Indicator:
• “PP Firmed” indicates either the output (target) or the
input (source) is firmed for the date.
Schedule status types:
Fully scheduled*
Partly scheduled
Fully de-allocated
*”full scheduled” means all operations of an order are
allocated with resources. “full de-allocated” means all
operations are de-allocated with resources.
Scheduling Strategy Profile
Scheduling strategy profile defines the parameters as below:
1. Scheduling mode
• (e.g. find slot, insert operation, etc)
2. Planning direction
• (backwards, forwards, or reverse)
3. Priority restriction,
• regarding the alternative PPM mode
4. Operation validity
Scheduling Strategy Profile
A strategy profile contains one or more strategies which are
processed in a given order until a solution is found.
• Schedule backwards or forwards, each with a finite
number of time intervals.
• Prioritise resources for production, e.g. automated
machines are loaded with a higher priority.
Note:
Each used strategy profile must be flagged, in order to
re-create the schedule. (see table 15.4)
Strategy Profiles
Cross-Plant Planning
Use Fixing Horizon to Ensure
Pegging Relation
Bottom-up Heuristic
Bottom-up heuristic reschedules dependent demands to the
earliest receipt date first for the fix pegged elements. The
dependent demands are sorted according to their
requirement dates.
The bottom-up heuristic should be executed from the lowest
level on which scheduling problems exists (see Figure 15.7).
For bottom-up heuristic, forward scheduling in profile
strategy is suggested.
Bottom-up Heuristic
Alternative Resource Modelling
using Classification
Alternative Resources in Routing &
PPM/PDS using Resource Classificatio
Mode Linkage
The mode linkage determines the dependencies between
adjacent operations regarding modes.
By default, the mode linkage is “0” and no mode restrictions
(see Figure 19.3).
If the duration of operation depends on the selected
resource, alternative sequences must be maintained in SAP
ERP (see Figure 19.4). The number of operations in the
alternative sequence must be the same as in the original
sequence.
Mode Linkage – no Mode
Restriction
Modelling of Production in a
Different Location
Overlap for Orders: Continue Flow
Continue flow is characterised by the output rate against the
consumption rate. It is calculated by the duration of the
operation, the quantity and the offset.
The total of consumed quantities has to be less than the
total of the produced quantities (see Figure 19.7).
Modelling of Production at the
same location
Push Production
Push production is a functionality that is mostly required in
the process industries, e.g. a semi-finished product (bulk) is
created with fixed or minimum lot sizes and needs to be
processed further due to technical or storage capacity issue.
Push production functionality provides a list of products that
have the bulk as input and allows creating orders for these
interactively (see Figure 19.13).
Push Production
Production Planning and
Detailed Scheduling (PP/DS)
in SCM
SAP Implementation
EGN 5623
Enterprise Systems Optimization
(Professional MSEM)
Fall, 2011
SAP SCM Modules
THEORY AND PRACTICE OF ADVANCED PLANNER AND OPTIMIZER IN SUPPLY CHAIN DOMAIN by Sam Bansal
SCM Product View (Elements)
APO – Production Planning – Interactive Production Planning –
Product View (APO/RRP3)
SCM Product View (Quantities)
APO – Production Planning – Interactive Production Planning –
Product View (APO/RRP3)
SCM Product View (Semi-finished
Product)
SCM Product View (Raw Materials)
SCM Receipt View
APO – Production Planning – Interactive Production Planning –
Receipt View (APO/RRP4)
SCM Requirement View
APO – Production Planning – Interactive Production Planning –
Requirement View (APO/RRP1)
SCM Product Overview
APO – Production Planning – Interactive Production Planning –
Product Overview (APO/POV1)
SCM Reporting Interface
APO – Production Planning – Interactive Production Planning –
Product Overview (APO/POV1)
SCM Reporting (Order List)
APO – Production Planning – Reporting– Order and Resource
Reporting (APO/CDPS_REPT)
SCM Reporting (Production
Overview)
APO – Production Planning – Reporting– Order and Resource
Reporting (APO/CDPS_REPT)
SCM Reporting (Resource
Utilization)
APO – Production Planning – Reporting– Order and Resource
Reporting (APO/CDPS_REPT)
SCM Production List (Interface)
APO – Production Planning – Reporting– Production List
(APO/PPL1)
SCM Production List
APO – Production Planning – Reporting– Production List
(APO/PPL1)
SCM Definition of Key Figures for
Plan Monitor
APO – Supply Chain Monitoring– Current Settings– Define Current
Key Figure Schema (APO/PMONDEF)
SCM Supply Chain Cockpit
APO – Supply Chain Monitoring– Supply Chain Cockpit
(APO/SCC02)
Exercises:
Module 10: Supply Network Planning (SNP) - (Section 3)
10.5 Supply Network Planning Heuristic
10.5.6 Location heuristic for multiple materials on multiple levels
10.5.7 Run SNP heuristic – network at the plant level
10.5.8 Run SNP heuristic – multilevel at the plant level
10.5.9 Review Production Plan in Product view
10.5.10 Network planning with heuristic
10.5.11 Network plan with multilevel heuristic
10.5.12 The planning board
10.6 Check the results in SAP ERP