Production Planning and Production Planning and Detailed Scheduling (PP/DS) Detailed Scheduling (PP/DS)

in SCMin SCM

EGN 5623 Enterprise Systems Optimization EGN 5623 Enterprise Systems Optimization(Professional MSEM)(Professional MSEM)

Fall, 2011 Fall, 2011

Production Planning and Production Planning and Detailed Scheduling (PP/DS) Detailed Scheduling (PP/DS)

in SCM in SCM

Theories & ConceptsTheories & Concepts

EGN 5623 Enterprise Systems Optimization EGN 5623 Enterprise Systems Optimization(Professional MSEM)(Professional MSEM)

Fall, 2011 Fall, 2011

Production Process (review)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 resourcesto low set up timeto minimise the stock, andto minimise the work in process (WIP)to improve stability of the plan

Hierarchical Planning Framework Hierarchical Planning Framework (review)(review)

Long term-Material programs- Supplier selection- Cooperation

- Plant location- Production systems- Subcontractors

- Physical distribution structure- Transportation strategy

- Product program- Strategic sales planning

-- 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

Information FeedbackFlow of goods

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

PP/DS Scope in SNPPP/DS Scope in SNP

PP/DS Scope in SNPPP/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 SNPPP/DS Scope in SNPAssumingly, 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 PPSNP Heuristics used for PPThree 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/DSBasics of PP/DSPP/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 CyclePlanned Order Life Cycle

Planned Order PropertiesPlanned 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 Order Status for for PlannedPlanned Orders Orders in PP/DSin PP/DS

Order Status Order Status for for ProductionProduction Orders in PP/DSOrders in PP/DS

PP/DS categoriesPP/DS categories

Indicator and Schedule StatusIndicator 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 scheduledFully 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 ProfileScheduling 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 ProfileScheduling Strategy ProfileA 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 ProfilesStrategy Profiles

Cross-Plant PlanningCross-Plant Planning

Use Fixing Horizon to Ensure Use Fixing Horizon to Ensure Pegging RelationPegging Relation

Bottom-up HeuristicBottom-up HeuristicBottom-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 HeuristicBottom-up Heuristic

Alternative Resource Modelling Alternative Resource Modelling using Classificationusing Classification

Alternative Resources in Routing & Alternative Resources in Routing & PPM/PDS using Resource ClassificationPPM/PDS using Resource Classification

Mode LinkageMode 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 Mode Linkage – no Mode RestrictionRestriction

Modelling of Production in a Modelling of Production in a Different LocationDifferent Location

Overlap for Orders: Continue FlowOverlap 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 Modelling of Production at the same locationsame location

Push ProductionPush 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 ProductionPush Production

Production Planning and Production Planning and Detailed Scheduling (PP/DS) Detailed Scheduling (PP/DS)

in SCM in SCM

SAP Implementation SAP Implementation

EGN 5623 Enterprise Systems Optimization EGN 5623 Enterprise Systems Optimization(Professional MSEM)(Professional MSEM)

Fall, 2011 Fall, 2011

SAP SCM ModulesSAP SCM Modules

THEORY AND PRACTICE OF ADVANCED PLANNER AND OPTIMIZER IN SUPPLY CHAIN DOMAIN by Sam Bansal

SCM Product View (Elements)SCM Product View (Elements)

APO – Production Planning – Interactive Production Planning – APO – Production Planning – Interactive Production Planning – Product View (APO/RRP3) Product View (APO/RRP3)

SCM Product View (Quantities)SCM Product View (Quantities)

APO – Production Planning – Interactive Production Planning – APO – Production Planning – Interactive Production Planning – Product View (APO/RRP3) Product View (APO/RRP3)

SCM Product View (Semi-finished SCM Product View (Semi-finished Product)Product)

SCM Product View (Raw Materials)SCM Product View (Raw Materials)

SCM Receipt View SCM Receipt View

APO – Production Planning – Interactive Production Planning – APO – Production Planning – Interactive Production Planning – Receipt View (APO/RRP4) Receipt View (APO/RRP4)

SCM Requirement View SCM Requirement View

APO – Production Planning – Interactive Production Planning – APO – Production Planning – Interactive Production Planning – Requirement View (APO/RRP1) Requirement View (APO/RRP1)

SCM Product OverviewSCM Product Overview

APO – Production Planning – Interactive Production Planning – APO – Production Planning – Interactive Production Planning – Product Overview (APO/POV1) Product Overview (APO/POV1)

SCM Reporting InterfaceSCM Reporting Interface

APO – Production Planning – Interactive Production Planning – APO – Production Planning – Interactive Production Planning – Product Overview (APO/POV1) Product Overview (APO/POV1)

SCM Reporting (Order List)SCM Reporting (Order List)

APO – Production Planning – Reporting– Order and Resource APO – Production Planning – Reporting– Order and Resource Reporting (APO/CDPS_REPT) Reporting (APO/CDPS_REPT)

SCM Reporting (Production SCM Reporting (Production Overview)Overview)

APO – Production Planning – Reporting– Order and Resource APO – Production Planning – Reporting– Order and Resource Reporting (APO/CDPS_REPT) Reporting (APO/CDPS_REPT)

SCM Reporting (Resource SCM Reporting (Resource Utilization)Utilization)

APO – Production Planning – Reporting– Order and Resource APO – Production Planning – Reporting– Order and Resource Reporting (APO/CDPS_REPT) Reporting (APO/CDPS_REPT)

SCM Production List (Interface)SCM Production List (Interface)

APO – Production Planning – Reporting– Production List APO – Production Planning – Reporting– Production List (APO/PPL1) (APO/PPL1)

SCM Production ListSCM Production List

APO – Production Planning – Reporting– Production List APO – Production Planning – Reporting– Production List (APO/PPL1) (APO/PPL1)

SCM Definition of Key Figures for SCM Definition of Key Figures for Plan MonitorPlan Monitor

APO – Supply Chain Monitoring– Current Settings– Define Current APO – Supply Chain Monitoring– Current Settings– Define Current Key Figure Schema (APO/PMONDEF) Key Figure Schema (APO/PMONDEF)

SCM Supply Chain CockpitSCM Supply Chain Cockpit

APO – Supply Chain Monitoring– Supply Chain Cockpit APO – Supply Chain Monitoring– Supply Chain Cockpit (APO/SCC02) (APO/SCC02)

Exercises:Exercises:Module 10: Supply Network Planning (SNP) - (Section 3)

10.5 Supply Network Planning Heuristic10.5.6 Location heuristic for multiple materials on multiple levels10.5.7 Run SNP heuristic – network at the plant level10.5.8 Run SNP heuristic – multilevel at the plant level 10.5.9 Review Production Plan in Product view10.5.10 Network planning with heuristic10.5.11 Network plan with multilevel heuristic10.5.12 The planning board

10.6 Check the results in SAP ERP