Presentation on theme: "SOP through Long Term Planning Transfer to LIS/PIS/Capacity"— Presentation transcript:
1 SOP through Long Term Planning Transfer to LIS/PIS/Capacity SAP Best Practices
2 Purpose, Benefits, and Key Process Steps Check if the budgeted sales quantities can be produced, assess material requirements and utilization of the manufacturing cost centers.BenefitsAvoid bottlenecks, over- and under-absorption in production. Material requirements planning as a basis for purchasing contracts.Key Process StepsCreate sales plan and transfer to SOP (Sales and Operations Planning).Rough matching of budgeted sales quantities and production resources in SOP.Create planning scenario in “Long Term Planning” to simulate production planning for the budgeted sales quantities.Based on simulated production and operative production data (bills of material, routings), work center capacity and material requirements are calculated.Use material requirements for AOP – purchase material price planning.Use work centers capacity in AOP – general cost center planning.
3 Required SAP Applications and Company Roles Enhancement package 5 for SAP ERP 6.0Company RolesStrategic Planner
4 Detailed Process Description AOP – SOP through Long Term Planning Transfer to LIS/PIS/CapacityPlease refer to specification 172 – AOP - Sales Quantity Budget and Transfer to SOP for all steps concerning the planning of sales quantities.The current specification starts with the transfer of confirmed sales quantities to Sales and Operations Planning (SOP). In SOP rough cut capacity planning is carried out in order to verify whether the goods planned to be sold can run through the company’s bottleneck resources needed for production.After the production plan has been proven feasible by SOP, it is passed on to a planning scenario in Long Term Planning module (LTP). In LTP, planned independent requirements (PIR) are created.Based on these PIRs, Materials Requirements Planning (MRP) is simulated to create and review planned requirements for all the materials (components, raw materials) and resources. Simulation of MRP also allows review of capacities of the plants. Capacity leveling can then be carried out to smooth out the bottlenecks.After having run MRP as described above, one of the key objectives of the logistics part of AOP is achieved: calculate the total utilization of the activity types assigned to the manufacturing work centers needed to produce the budgeted sales quantities. The utilization is based on the consumption of activity types indicated in the routings of the (semi finished and finished) products of the production plan.
5 SOP through Long Term Planning Transfer to LIS/PIS/Capacity Process Flow DiagramSOP through Long Term Planning Transfer to LIS/PIS/CapacityEventAOP – Standard Cost Calculation(178)AOP - Manufacturing Cost Center Planning(176)AOP - Purchased Material Price Planning (174)Annual Operating PlanStrategic PlannerAOP - Sales Quantity Budget and Transfer to SOP (172)YesOperative Production DataAcceptable Plan?SOP VerificationTransfer to Inactive Demand ManagementLTPLTP MRPCapacity PlanningNoAOP= Annual Operating Planning LTP= Long Term PlanningSOP= Sales and Operations Planning MRP= Materials Requirements Planning
6 Legend Symbol Description Usage Comments Symbol Description Band: Identifies a user role, such as Accounts Payable Clerk or Sales Representative. This band can also identify an organization unit or group, rather than a specific role.The other process flow symbols in this table go into these rows. You have as many rows as required to cover all of the roles in the scenario.Role band contains tasks common to that role.External Events: Contains events that start or end the scenario, or influence the course of events in the scenario.Flow line (solid): Line indicates the normal sequence of steps and direction of flow in the scenario. Flow line (dashed): Line indicates flow to infrequently-used or conditional tasks in a scenario. Line can also lead to documents involved in the process flow.Connects two tasks in a scenario process or a non-step eventBusiness Activity / Event: Identifies an action that either leads into or out of the scenario, or an outside Process that happens during the scenarioDoes not correspond to a task step in the documentUnit Process: Identifies a task that is covered in a step-by-step manner in the scenarioCorresponds to a task step in the documentProcess Reference: If the scenario references another scenario in total, put the scenario number and name here.Sub-Process Reference: If the scenario references another scenario in part, put the scenario number, name, and the step numbers from that scenario hereProcess Decision: Identifies a decision / branching point, signifying a choice to be made by the end user. Lines represent different choices emerging from different parts of the diamond.Does not usually correspond to a task step in the document; Reflects a choice to be made after step executionSymbolDescriptionUsage CommentsTo next / From last Diagram: Leads to the next / previous page of the DiagramFlow chart continues on the next / previous pageHardcopy / Document: Identifies a printed document, report, or formDoes not correspond to a task step in a document; instead, it is used to reflect a document generated by a task step; this shape does not have any outgoing flow linesFinancial Actuals: Indicates a financial posting documentBudget Planning: Indicates a budget planning documentManual Process: Covers a task that is manually doneDoes not generally correspond to a task step in a document; instead, it is used to reflect a task that is manually performed, such as unloading a truck in the warehouse, which affects the process flow.Existing Version / Data: This block covers data that feeds in from an external processDoes not generally correspond to a task step in a document; instead, this shape reflects data coming from an external source; this step does not have any incoming flow linesSystem Pass / Fail Decision: This block covers an automatic decision made by the softwareDoes not generally correspond to a task step in the document; instead it is used to reflect an automatic decision by the system that is made after a step has been executed.Diagram Connection<Function>External to SAPHardcopy / DocumentFinancial ActualsBusiness Activity / EventBudget PlanningUnit ProcessManual ProcessProcess ReferenceSub-Process ReferenceExisting Version / DataProcess DecisionSystem Pass/Fail Decision