1. Production Planning and Detailed Scheduling (PP/DS) in SCM EGN Enterprise Systems Optimization (Professional MSEM) Fall, 2011

2. Production Planning and Detailed Scheduling (PP/DS) in SCM Theories & Concepts EGN Enterprise Systems Optimization (Professional MSEM) Fall, 2011

3. 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

4. Hierarchical Planning Framework (review)
Procurement
Production
Distribution
Sales
Material programs
Supplier selection
Cooperation
Plant location
Production systems - Subcontractors
Physical distribution structure - Transportation strategy
Product program - Strategic sales planning
Long term
- Personnel training
- Contracts
- Material Requirements Planning
- Master production Scheduling
- Capacity planning
- Distribution planning
- Mid-term sales planning
Mid term
- Personnel scheduling -- Material ordering
- lot-sizing - operations scheduling - shop floor control
- Warehouse replenishment - Transportation planning
- Mid-term sales planning
Short term
EXECUTION
Flow of goods
Information
Feedback

5. Process Chain for a Make-to Stock Production (review)

6. PP/DS Scope in SNP

7. 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.

8. 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.

9. SNP Heuristics used for PP
Three interactive PP planning methods:
The location heuristic
Only plans for selected products in a location on one level.
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.

10. 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

11. Planned Order Life Cycle

12. 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

13. Order Status for Planned Orders in PP/DS

14. Order Status for Production Orders in PP/DS

15. PP/DS categories

16. Indicator and Schedule Status
“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.

17. Scheduling Strategy Profile
Scheduling strategy profile defines the parameters as below:
Scheduling mode
(e.g. find slot, insert operation, etc)
Planning direction
(backwards, forwards, or reverse)
Priority restriction,
regarding the alternative PPM mode
Operation validity

18. 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)

19. Strategy Profiles

20. Cross-Plant Planning

21. Use Fixing Horizon to Ensure Pegging Relation
Sub-product B must be finished before product A starts. An increase of the fixing horizon for product A can be used to prevent the loss of pegging.

22. 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.

23. Bottom-up Heuristic

24. Alternative Resource Modelling using Classification

25. Alternative Resources in Routing & PPM/PDS using Resource Classification

26. 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.

27. Mode Linkage – no Mode Restriction

28. Modelling of Production in a Different Location

29. 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).

30. Modelling of Production at the same location

31. 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).

32. Push Production

33. Production Planning and Detailed Scheduling (PP/DS) in SCM SAP Implementation EGN Enterprise Systems Optimization (Professional MSEM) Fall, 2011

34. SAP SCM Modules
THEORY AND PRACTICE OF ADVANCED PLANNER AND OPTIMIZER IN SUPPLY CHAIN DOMAIN by Sam Bansal

35. SCM Product View (Elements)
APO – Production Planning – Interactive Production Planning – Product View (APO/RRP3)

36. SCM Product View (Quantities)
APO – Production Planning – Interactive Production Planning – Product View (APO/RRP3)

37. SCM Product View (Semi-finished Product)

38. SCM Product View (Raw Materials)

39. SCM Receipt View
APO – Production Planning – Interactive Production Planning – Receipt View (APO/RRP4)

40. SCM Requirement View
APO – Production Planning – Interactive Production Planning – Requirement View (APO/RRP1)

41. SCM Product Overview
APO – Production Planning – Interactive Production Planning – Product Overview (APO/POV1)

42. SCM Reporting Interface
APO – Production Planning – Interactive Production Planning – Product Overview (APO/POV1)

43. SCM Reporting (Order List)
APO – Production Planning – Reporting– Order and Resource Reporting (APO/CDPS_REPT)

44. SCM Reporting (Production Overview)
APO – Production Planning – Reporting– Order and Resource Reporting (APO/CDPS_REPT)

45. SCM Reporting (Resource Utilization)
APO – Production Planning – Reporting– Order and Resource Reporting (APO/CDPS_REPT)

46. SCM Production List (Interface)
APO – Production Planning – Reporting– Production List (APO/PPL1)

47. SCM Production List
APO – Production Planning – Reporting– Production List (APO/PPL1)

48. SCM Definition of Key Figures for Plan Monitor
APO – Supply Chain Monitoring– Current Settings– Define Current Key Figure Schema (APO/PMONDEF)

49. SCM Supply Chain Cockpit
APO – Supply Chain Monitoring– Supply Chain Cockpit (APO/SCC02)

50. Exercises: Module 10: Supply Network Planning (SNP) - (Section 3)
10.5 Supply Network Planning Heuristic
Location heuristic for multiple materials on multiple levels
Run SNP heuristic – network at the plant level
Run SNP heuristic – multilevel at the plant level
Review Production Plan in Product view
Network planning with heuristic
Network plan with multilevel heuristic
The planning board
10.6 Check the results in SAP ERP