High-Level OP Planning and Demand Management EGN 5622 Enterprise Systems Integration Spring, 2013...
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Transcript of High-Level OP Planning and Demand Management EGN 5622 Enterprise Systems Integration Spring, 2013...
High-Level OP Planning and High-Level OP Planning and Demand Management Demand Management
EGN 5622 Enterprise Systems Integration EGN 5622 Enterprise Systems Integration Spring, 2013Spring, 2013
Production Planning & ExecutionProduction Planning & Execution
January 2007 (v1.0)January 2007 (v1.0)
© 2007 by SAP AG. All rights © 2007 by SAP AG. All rights reserved. SAP University Alliance. reserved. SAP University Alliance. The Rushmore Group, LLCThe Rushmore Group, LLC 22
DemandManagement
Forecasting
Sales & OperationsPlanning
Sales Inf. System CO/PA
MPS
MRP/CRP
ManufacturingExecution/SFC
OrderSettlement
ProcurementProcess
Tactical Planning
Detailed Planning
Manufacturing Execution
January 2008January 2008
© SAP AG - University Alliances and © SAP AG - University Alliances and The Rushmore Group, LLC 2007. All The Rushmore Group, LLC 2007. All rights reserved.rights reserved. 33
High-Level OP PlanningHigh-Level OP PlanningPlanning activities:
1. CO/PA2. Forecasting3. Sales and Operations Planning
◦ Planning strategy for a product
4. Demand Management
Demand management feeds to MPS and in turn MRP/CRP
Operations Planning & ExecutionOperations Planning & Execution
Major Players:
◦ Tactical Planning (at corporate level) COO, CFO, Controller, Sales &
Marketing, Product Line mangers, Production Planner
◦ Detailed Planning (at plant level) Production Planner/Scheduler, MRP
Controller, Capacity Planners
◦ Execution (at shop floor level) Production Line Workers, Shop
Floor Supervisors
January 2007 (v1.0)January 2007 (v1.0)© 2007 by SAP AG. All rights reserved. SAP University Alliance. The Rushmore © 2007 by SAP AG. All rights reserved. SAP University Alliance. The Rushmore Group, LLCGroup, LLC 44
DemandManagement
Forecasting
Sales OP Planning
Sales Info CO/PA
MPS
MRP/CRP
ManufacturingExecution/SFC
OrderSettlement
ProcurementProcess
Tactical Planning
Detailed Planning
Execution
Costing-Based CO-PACosting-Based CO-PACO-PA is profitability analysis, based on cost-of-
sales accounting.
CO-PA can be viewed as a cube of 3 dimensions (representing product, country, and customer)
CO-PA data are collected from various areas, such as ◦sales orders or billing data from SD, ◦production costs and variance from PP, and ◦values of overhead cost controlling from controlling.
Pricing and Costing for mfg. goodsPricing and Costing for mfg. goodsCost components
◦Materials Costs◦Labor costs◦Equipment costs
Strategies to reduce costs◦Lean manufacturing◦Systems approach
Sales and Operations Planning Sales and Operations Planning (SOP)(SOP) Information
Origination◦ Sales◦ Marketing◦ Manufacturing◦ Accounting◦ Human Resources◦ Purchasing
Intra-firm Collaboration◦ Institutional Common
Sense
January 2007 (v1.0)January 2007 (v1.0)© 2007 by SAP AG. All rights reserved. SAP University Alliance. The Rushmore © 2007 by SAP AG. All rights reserved. SAP University Alliance. The Rushmore Group, LLCGroup, LLC 88
Master Data - Product GroupsMaster Data - Product GroupsAggregate planning that group together materials or
other product groups (Product Families)Multi- or Single- Level Product Groups
◦ the lowest level must always consist of materials
January 2007 (v1.0)January 2007 (v1.0)
© 2007 by SAP AG. All rights © 2007 by SAP AG. All rights reserved. SAP University Alliance. reserved. SAP University Alliance. The Rushmore Group, LLCThe Rushmore Group, LLC 99
Bikes
TouringMountain
24 Speed18 Speed 18 Speed 24 Speed
Red 24T Blue 24TRed 24M Blue 24M
Planning LevelsPlanning Levels
January 2007 (v1.0)January 2007 (v1.0)
© 2007 by SAP AG. All rights © 2007 by SAP AG. All rights reserved. SAP University Alliance. reserved. SAP University Alliance. The Rushmore Group, LLCThe Rushmore Group, LLC 1010
Bikes
55%
Touring45%
Mountain
70%
24 Speed30%
18 Speed40%
18 Speed60%
24 Speed
50%
Red 24T50%
Blue 24T40%
Red 24M60%
Blue 24M
Planning at Product Group Level
Planning at Material Level
Demand ManagementDemand Management Link between Strategic Planning (SOP) & Detailed Planning
(MPS/MRP) The results of Demand Mgmt is called the Demand Program, it is
generated from our independent requirements – PIR (Planned IR) and CIR (Customer IR)
January 2007 (v1.0)January 2007 (v1.0)
© 2007 by SAP AG. All rights © 2007 by SAP AG. All rights reserved. SAP University Alliance. reserved. SAP University Alliance. The Rushmore Group, LLCThe Rushmore Group, LLC 1111
Bikes
55%
Touring45%
Mountain
70%
24 Speed30%
18 Speed40%
18 Speed60%
24 Speed
50%
Red 24T50%
Blue 24T40%
Red 24M60%
Blue 24M
Disa
gg
rega
tion
Product Groups
Material
Demand ManagementDemand Management
January 2007 (v1.0)January 2007 (v1.0)
© 2007 by SAP AG. All rights © 2007 by SAP AG. All rights reserved. SAP University Alliance. reserved. SAP University Alliance. The Rushmore Group, LLCThe Rushmore Group, LLC 1212
PlannedIndependentRequirements
CustomerIndependentRequirements
SalesForecast
DemandProgram
MPS / MRP
Transfer from High Level to Detailed PlanningTransfer from High Level to Detailed Planning
January 2007 (v1.0)January 2007 (v1.0)
© 2007 by SAP AG. All rights © 2007 by SAP AG. All rights reserved. SAP University Alliance. reserved. SAP University Alliance. The Rushmore Group, LLCThe Rushmore Group, LLC 1313
Bikes
55%
Touring45%
Mountain
70%
24 Speed30%
18 Speed40%
18 Speed60%
24 Speed
50%
Red 24T50%
Blue 24T40%
Red 24M60%
Blue 24M
Demand Planning Data
Planning at Material Level
Disa
ggregation
Planned Independent Requirements
At Material and Plant Level
Transfer
Operative PlanningData
Planning at Group Level
January 2008January 2008
© SAP AG - University Alliances and © SAP AG - University Alliances and The Rushmore Group, LLC 2007. All The Rushmore Group, LLC 2007. All rights reserved.rights reserved. 1414
Creation of The Demand Creation of The Demand ProgramProgramStart with sales operation plan (SOP) after
forecast inputConvert SOP into (rough cut) production plan,
which consists of the following data elements.◦Time Buckets ◦Sales◦Production◦Stock levels◦Days supply
Translate production plan into demand program, via disaggregation
Enterprise Strategic Enterprise Strategic PlanningPlanning
SAP Implementation SAP Implementation
EGN 5622 Enterprise Systems Integration EGN 5622 Enterprise Systems IntegrationSpring, 2013Spring, 2013
Planning StrategiesPlanning Strategies
Planning strategies represent the business procedures for◦The planning of production quantities ◦Dates
SAP offers a range of PP strategies◦From those for MTS◦To those for MTO
January 2007 (v1.0)January 2007 (v1.0)
© 2007 by SAP AG. All rights © 2007 by SAP AG. All rights reserved. SAP University Alliance. reserved. SAP University Alliance. The Rushmore Group, LLCThe Rushmore Group, LLC 1616
Planning StrategiesPlanning Strategies
• Multiple types of planning strategies based upon environment– Make-To-Stock (MTS)– Make-To-order (MTO)
• Driven by sales orders
– Configurable materials• Mass customization of one
– Assembly orders
January 2007 (v1.0)January 2007 (v1.0)
© 2007 by SAP AG. All rights © 2007 by SAP AG. All rights reserved. SAP University Alliance. reserved. SAP University Alliance. The Rushmore Group, LLCThe Rushmore Group, LLC 1717
Planning Strategy for Make-to-StockPlanning Strategy for Make-to-Stock
Planning takes place using Independent Requirements◦Sales are covered by make-to-stock inventory
Strategies◦10 – Net Requirements Planning◦11 – Gross Requirements Planning◦30 – Production by Lot Size◦40 – Planning with Final Assembly
January 2007 (v1.0)January 2007 (v1.0)
© 2007 by SAP AG. All rights © 2007 by SAP AG. All rights reserved. SAP University Alliance. reserved. SAP University Alliance. The Rushmore Group, LLCThe Rushmore Group, LLC 1818
Planning Strategy for Make-to-OrderPlanning Strategy for Make-to-Order
Planning takes place using Customer Orders◦Sales are covered by make-to-order production
Strategies◦20 – Make to Order Production◦50 – Planning without Final Assembly◦60 – Planning with Planning Material
January 2007 (v1.0)January 2007 (v1.0)
© 2007 by SAP AG. All rights © 2007 by SAP AG. All rights reserved. SAP University Alliance. reserved. SAP University Alliance. The Rushmore Group, LLCThe Rushmore Group, LLC 1919
Forecasting set up in SAPForecasting set up in SAP
Forecasting Models◦ Trend◦ Seasonal◦ Trend and Seasonal◦ Constant
Selecting a Model◦ Automatically◦ Manually
January 2007 (v1.0)January 2007 (v1.0)© 2007 by SAP AG. All rights reserved. SAP University Alliance. The Rushmore © 2007 by SAP AG. All rights reserved. SAP University Alliance. The Rushmore Group, LLCGroup, LLC 2020
Sales and Operations Planning (SOP)Sales and Operations Planning (SOP)
Flexible forecasting and planning tool
Usually consists of three steps:◦ Sales Plan◦ Production Plan◦ Rough Cut Capacity Plan
Planned at an aggregate level in time buckets
January 2007 (v1.0)January 2007 (v1.0)© 2007 by SAP AG. All rights reserved. SAP University Alliance. The Rushmore © 2007 by SAP AG. All rights reserved. SAP University Alliance. The Rushmore Group, LLCGroup, LLC 2121
Statistics GraphicsStatistics Graphics
January 2007 (v1.0)January 2007 (v1.0)© 2007 by SAP AG. All rights reserved. SAP University Alliance. The Rushmore © 2007 by SAP AG. All rights reserved. SAP University Alliance. The Rushmore Group, LLCGroup, LLC 2222
Exercises:Exercises: (Due date: 1/28/2013)(Due date: 1/28/2013)1. Review material status for finished products2. Review bill of materials for executive pen set3. Display multi-level bill of materials for ESET4. Review routing for assembly EPEN5. Review routing/BOM in the engineering workbench6. Review work center and assigned capacity7. Create consumption values for finished products8. Create material master for finished products9. Create bill of material10. Create finished products routing11. Create material master for product group12. Assign members for production group13. Create sales and operations plan14. Transfer SOP to demand management15. Review demand management16. Run MPS with MRP17. Review stock/requirement list