Production Process (review)

1. Production Planning and Detailed Scheduling (PP/DS) in SCM EGN 5623 Enterprise Systems OptimizationFall, 2012

2. Production Planning and Detailed Scheduling (PP/DS) in SCM Theories & Concepts EGN 5623 Enterprise Systems OptimizationFall, 2012

3. 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 Production Process (review)

4. 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 Hierarchical Planning Framework (review) 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. 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 SNP

8. 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. PP/DS Scope in SNP

9. 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. SNP Heuristics used for PP

10. 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 Basics of PP/DS

11. Planned Order Life Cycle

12. 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 Planned Order Properties

13. Order Status for Planned Orders in PP/DS

14. Order Status for Production Orders in PP/DS

15. PP/DS categories

16. Indicator: • “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. Indicator and Schedule Status

17. 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 Scheduling Strategy Profile

18. 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) Scheduling Strategy Profile

19. Cross-Plant Planning

20. Use Fixing Horizon to Ensure Pegging Relation

21. 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. Bottom-up Heuristic

22. Bottom-up Heuristic

23. 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

24. Mode Linkage – no Mode Restriction

25. 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). Overlap for Orders: Continue Flow

26. Modelling of Production at the same location

27. 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 Production

28. Push Production

29. Production Planning and Detailed Scheduling (PP/DS) in SCM SAP Implementation EGN 5623 Enterprise Systems OptimizationFall, 2012

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

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

32. SCM Product View (Raw Materials)

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

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

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

36. Exercises: Release demand planning to supply network planning Access APO SNP planning book/data view Create selection ID Load demands into planning table Create supply network plan using heuristic-location Create supply network plan using heuristic-network.