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Introduction to the Production Planning Process with SAP - Presentation Preview Transcript

Introduction to the
Production Planning

Process with SAP

Iean Marc Prigent
Consultant L0-PP-MM-WM

July 2011

Table of Contents

Table of Contents 2
Introduction Errorl Bookmark not defined.
Objectives of the Production Planning process Errorl Bookmark not defined.
Definition of a few concepts Errorl Bookmark not defined.
The planning horizon Errorl Bookmark not defined.
The planning bucket Errorl Bookmark not defined.
The bottleneck Errorl Bookmark not defined.
The Materials Requirements Planning (MRP) Errorl Bookmark not defined.
Planned order versus Production orders Errorl Bookmark not defined.
Steps to implement the Production Planning process in an Information System Errorl Bookmark not
defined.
Definition of the structure of the Products, Routings and Bill Of Materials data 3
Customizing of the materials Errorl Bookmark not defined.
Prerequisites for the Production Planning Errorl Bookmark not defined.
The Production Planning Process in SAP Errorl Bookmark not defined.

The Procurement Process Errorl Bookmark not defined.

Definition of the structure of the Products, Roufings and Bill Of Materials data

It is a sensitive and important step. It is sensitive as the same data can sometimes be used for several
different objectives (Calculation of the Cost Of Goods Sold, declaration of production, valuation of the
work in process). It is important because the definition of these data will impact how easy it will be to

plan the production.

For instance you can define or not a safety stock, define some operations in parallel or not, divide an
operation between work centers, have simultaneously the control on the work centers before or after in

the process,...

As a consequence of this step, there will be Bill Of Materials with more or less levels, and the resulting

routings.

1st case: metal, chemical, pharmaceutical processes

The phase or operation linked to the process is the strategic one which requires some planning attention
(cast, lamination, tank to produce the active principles or tank for liquids in the food industry). It can be

a phase among others, or a level of the Bill Of Materials.

Once the planning is done on these strategic operations, it has to be transmitted to the upper and lower
levels of production. For the lower levels, it can be done via a MRP. For the upper level the case is

detailed later on.

An interesting technique to simplify the problem of synchronization of the different levels of the Bill Of
Materials consists in having a safety stock corresponding to the imprecision in the synchronization of the

semi finished products.

2nd case: production by manufacturing unit with final assembly

In this case there is not a level of the Bill Of Materials or a work center more strategic than the others.