Page1
November 15th , 2012 plan4demand
SUPPLY PLANNING LEADERSHIP EXCHANGE PRESENTS:
The web event will begin momentarily with your host:
Overview
What are the PP/DS Components
What does PP/DS really accomplish
What should it mean?
– Optimizing , Block Planning
PP/DS – Step by Step
– PP Heuristics Planning
– DS Optimization
– Set up Matrix
Bottom Line
Clearly Define the PP/DS Components and
Functionality
Differentiate Between Heuristics and Optimizer
Identify common Block Planning and Set up Matrix
requirements
Discuss some specific actions that can help you start to
get this difficult process under control and understood
in your organization
Strategic
• Strat Plan
• CapEx Plan
• Portfolio Plan/Product Roadmap
• IT Roadmap
Operational
• S&OP Forecast
• Annual Operating Plan (Budget)
• Standard Cost
• Brand Plan
• Strategic Logistics Plan
Tactical
• Demand Plan
• Supply Plan
• Rough Cut Capacity Plan
• Production Plan
• Finite Plan & Schedule
• Labor Plan
• Materials Plan
• Set Up Matrix
Production Planning
Detailed Scheduling
PP/DS is primarily divided in two areas
Page 5
Release Demand
Plan to SNP
* PP heuristics
(Production Plan)
Interactive detailed planning in
DS planning board.
Convert supply elements Orders
(production or purchase )
Run SNP Optimizer to
produce Supply Plan
* DS Heuristics
(Detailed Feasible Plan)
* Depending on the business
requirement may require more than
one run
– Multi-Level Production Plan
– Capable-to-Promise
– Supports lot quantity calculations
– Supports the following business models
Make to Stock
Make to Order
Make to Order with Order BOM
Engineer to Order
Flow Manufacturing
– Order Pegging
– Integrated with Alert Monitor
– The How, When, and Where resources and materials should be deployed.
– Master Planning for Materials and capacity (Resource Loads)
– Realistic Delivery Date confirmation
Page 6
Features Key Benefits
– Scheduling Optimizer
– Optimal Sequencing
– Flexible & Graphical
Activity Scheduling
– Backlog Resolution
Planning
– What-If Analysis &
Simulation
– Forward & Backward
Scheduling
– Optimal production sequence
(feasible and executable)
– Allows simulation of planning
scenarios for optimal schedule
– Optimization based on actual
constraints
Page 7
Features Key Benefits
ECC
Release from SNP
to
PP/DS
PP Heuristic &
PP Optimizer
Evaluate the Planning
Results
Interactive Planning: Create,
Change, Reschedule Orders in
the Planning Board
Execution:
Process Order Release
& Production
Confirmation
Sales Orders
Stk. Trnsfr. Orders
Inventory
Process Orders
Purch. Orders
CIF
APO
Elements that compliment PP/DS
Alert Monitor (Exception Management)
Heuristic Framework (User Friendly Development Area)
Simulation versions (What If )
Standard Reports (Several Standard Reports)
5 1
time
2 3
4 6
Application of rules
Customer-specific rules using the Heuristic Framework
Scheduling result is easier to understand and influence
Mostly limited to one bottleneck resource (except
for Multi-Level Heuristics)
Only applicable to scheduling problems with limited
(modeled) complexity (e.g., no loops)
Better suited for workaround solutions if constraints
cannot be modeled properly
Page 10
Heuristic finds only one solution which is always a result of the sequence of products or resources planned.
There are winners and losers in Heuristics. It is a step by step procedure
Sequence Optimization
Simultaneous consideration of multiple operations, resources, and BOM levels
Suited for complex (modeled) scheduling problems
Better suited if there is an optimization potential which cannot be described by simple rules
– e.g., if the structure of the scheduling problem changes depending on the order mix
Scheduling result are more difficult to understand and influence
Helicopter view over all resources and products and plans.
– A problem at one end of the resource network
– Caused by a good solution on the other end of the resource network
– Optimizer can go back and solve the issue over the whole network and come up with a solution that is feasible for all resources in the network.
Page 11
Heuristic would have to have
reiterate runs with readjustment to runs and the problem moving around the resource network.
Optimizer – The benefit of minimizing sequence dependent setup times, reducing
lead-times and to schedule dependent demand according to the priority of the
demand.
Pegging Constraints & Shelf Life are the most common and complicated
requirements
Optimization: Change of Production dates/Sequences and resource assignment of
existing operations/activities with regard to the following criteria (no creation or
deletion of orders)
Page 12
© SAP 2012
13
Final Forecast (12 Months) per product family (CBF)
HEURISTICS
Run with a
predefined
Horizon
•Capacity
Leveling must
be run to
achieve a
somewhat
constrained
capacity plan
Prod. Qty is transferred to
PP/DS to create the Blocks PP/DS
Create Blocks in Resource Master. Generate week schedule for the Production Lines.
Demand Planning
OPTIMIZER
Run in the sequence of the pre-defined
production cycle considering the following:
*Storage cost
*Order Cost (production cost & setup cost)
*Profit Margin
*Penalty of Late orders
*Non-delivery
*Procurement cost
The result: the Optimal Production Quantity for
the Product Family
SNP Engine
The Optimal Production Quantity is the preliminary size of the block.
This determines the frequency of the block in the production cycle.
CAPABLE TO MATCH
• Plans the whole Network (Multilevel Planning)
• CTM can execute Bucket and Time Continuous Planning
• Mixed Resources can be used by SNP with bucket and
time continuous definitions
• Prioritize demand and categorize your supply accordingly
• Block Planning - considers characteristic values of orders
during planning and creates orders with corresponding
characteristic values relevant for variant configuration or
for characteristics-dependent planning (CDP)
• Planning with products configured for CDP, considers
block definitions of resources and fixed blocks.
SNP make the following decisions.
Source of Supply
Approximate Production Date
Quantity
SNP Orders
– Take place in Planning Periods or Buckets
– No defined sequence
– Lot sizes correspond to Maximum quantity for Planning Period
Private party on Saturday….. No Private party on Saturday….. No
PP/DS order - (continuous time scale with
start time and end time)
100
SNP: Planned orders in
weekly buckets
PPDS: Calculates daily, hourly
schedules
Today
PP/DS Horizon
SNP horizon
SNP horizon
W3 W5 W4
SNP order(Bucketed Order)
W2 W1
W3 W5 W4 W2 WK6
Last Week
PP/DS Horizon
100
Conversion of Detail Plan
to Process orders Optimization /
Sequencing
SNP planned orders in the SNP horizon will be
converted to detailed schedule (PPDS orders)
Page 15
The SNP and PP/DS differences
Are you running or planning to run PP/DS
on a single or multiple plants?
Answer on the right hand side of your screen
A. Single
B. Multiple
17
© SAP 2012
Page 18
© SAP 2012
t
Shift schedule
Blocks
© SAP 2012
Customer orders
Requirement get automatically scheduled
according to blocks schedule
A Matrix contains
– For each possible setup transition at a single resource
The setup times
The setup costs that are necessary to change the setup status of the resource to another setup status.
You can use a setup matrix to model sequence-dependent setup times and setup costs for a single resource.
Based on the setup matrix, the system will do the following:
– Determines the correct setup
– Determine optimal operation sequences (with regard to setup time or setup costs) during optimization
– Determine the production process model for creating a setup order and clean-out order during campaign optimization
Page 20
Prod A
Prod A
Prod B
Prod B
Prod C
Prod C
Prod B
Prod C
Prod A
Prod C
Prod A
Prod B
Time
Time
Time
Time
Time
Time
Maintain Setup Matrix-
/n/sapapo/cdpsc7
Display Setup Matrix-
/n/sapapo/cdps_setup
Setup Group: Classification of an operation according to a characteristic that is
relevant to planning and which the system should consider during scheduling and
rescheduling.
Group A
Group A
Group B
Group B
Group C
Group C
Group B
Group C
Group A
Group C
Group A
Group B
Time
Time
Time
Time
Time
Time
Maintain Setup Group-
/n/sapapo/cdpsc6
While performing detailed scheduling
– System will read the setup matrix that defines the sequence-
dependent setup time.
B A C Setup Setup
Finite Schedule
A
time 20 30 30
10 10
Setup time on resource
Prod. A B C
A 0 10 20
B 30 0 10
C 40 30 0
Setup time in minutes
Product A:
Product B:
Product C:
Setup
Set- up B A C A
Set- up
Optimal Schedule
A A C B Demand
What is the level of constraints you currently face
in your production environment ?
Answer on the right hand side of your screen
A. High Fixed Constraints
B. High Variable Constraints
C. Medium Fixed Constraints
D. Medium Variable Constraints
E. Low Fixed Constraints
F. Low Variable Constraints
Page 26
Graphical User Interface
– Drag and Drop
– Drill Down to the lowest Level
– Work Area
– Navigation Area
© SAP 2012
27
© SAP 2012
Shows the planning elements graphically in a highly customizable interface
Reports can be triggered on the fly.
Interactive What If analysis can be adopted for the
actual plan
28
© SAP 2012
Multiple schedules can be developed and then merged with the active plan
29
Custom Capacity Alert Sent to
the planner (e.g. 70% ).
Action 1. Do nothing.
2. Extend the block.
3. Fix the block.
4. Yell at Demand Planner for the forecast being too high.
Requirement/Receipt Alerts:
– Product Too Late/Early
Shelf Life Alerts:
– Shelf Life too short/ long
– Receipt with out Pegging Relationship
Orders in Past Alerts:
– Sales Order in the past
– Receipt due date/time in past.
Order Alerts-Product Dependent:
– Order creates surplus
– Order has shortage
Days’ Supply Alerts:
– Below minimum days’ supply
– Required days’ supply exceeded
Average Resource Utilization(PP/DS):
– Average resource overload
– Average resource underutilization
– Capacity overload on bucket resource
Inventory Alerts:
– Stock fallen below safety stock level
Setup PP/DS
Alert Profile
Run PP/DS
Planning
View Alerts
Analyze Alert
Situation Notify Person
Responsible
Adjust Plan
Interactively
Opt: Run what if analysis if extended the block
Re-schedule if the block is adjusted.
PP/DS fulfills the need of production planner by
– Creating feasible plan taking into consideration constraints
– Provides the tools needed to plan and schedule
Insure a crisp transition from SNP to PP/DS
– SNP should do the heavy lifting with PP/DS putting the icing on the cake
– Insure high transparency between SNP and PP/DS
Understand the type of scheduling you what to do
– Block, Campaign …
Understand the engine that will drive your PP/DS
– A large variety of heuristics are available to plan products
– The ability to build your own Heuristics
Page30
December 5th
S&OP Leadership Exchange:
S&OP KPIs & Metrics Setting a course to achieve ROI
December 14th Special Event
Join us on LinkedIn: Supply Planning Leadership Exchange Follow us on Twitter: @Plan4Demand
Complete our Survey & receive a $5 Starbucks Gift Card
Upcoming Leadership Exchanges Save the Date!