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SUPPLY PLANNING LEADERSHIP EXCHANGE

PRESENTS:

The web event will begin momentarily

with your host:

November 15th , 2012

plan4demand

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

 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

Operational

Strategic
Strat Plan
CapEx Plan
Portfolio Plan/Product
Roadmap
IT Roadmap

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PP/DS is primarily divided in two areas

Release Demand
Plan to SNP

Run SNP Optimizer to

produce Supply Plan

Production Planning

* Depending on the business

requirement may require more than
one run

* PP heuristics
(Production Plan)

Convert supply elements Orders

(production or purchase )

* DS Heuristics
(Detailed Feasible Plan)

Interactive detailed planning in

DS planning board.

Detailed Scheduling

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Features

Key Benefits

Multi-Level Production Plan

The How, When, and Where

Capable-to-Promise

resources and materials should

be deployed.
Master Planning for Materials
and capacity (Resource Loads)
Realistic Delivery Date
confirmation

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

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Features

Key Benefits

Scheduling Optimizer

Optimal production sequence

Optimal Sequencing

(feasible and executable)

Allows simulation of planning
scenarios for optimal schedule
Optimization based on actual
constraints

Flexible & Graphical

Activity Scheduling
Backlog Resolution
Planning
What-If Analysis &
Simulation
Forward & Backward
Scheduling

APO

ECC

Release from SNP

to
PP/DS

PP Heuristic
&
PP Optimizer

Execution:
Process Order Release
& Production
Confirmation

CIF

Sales Orders
Stk. Trnsfr. Orders
Inventory
Process Orders
Purch. Orders

Evaluate the Planning

Results

Interactive Planning: Create,

Change, Reschedule Orders in
the Planning Board

Elements that compliment PP/DS

Alert Monitor (Exception Management)
Heuristic Framework (User Friendly Development Area)
Simulation versions (What If )
Standard Reports (Several Standard Reports)

time

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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
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

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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.

Heuristic would have to have

reiterate runs with readjustment to runs and the problem moving around the resource network .

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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)

SAP 2012

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Demand Planning

SNP Engine

HEURISTICS
Run with a
predefined
Horizon
Capacity
Leveling must
be run to
achieve a
somewhat
constrained
capacity plan

PP/DS

Final Forecast (12 Months) per product family (CBF)

OPTIMIZER

CAPABLE TO MATCH
Plans the whole Network (Multilevel Planning)
CTM can execute Bucket and Time Continuous Planning

Run in the sequence of the pre-defined

production cycle considering the following:

Mixed Resources can be used by SNP with bucket and

time continuous definitions

*Storage cost

Prioritize demand and categorize your supply accordingly

*Profit Margin

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)

*Penalty of Late orders

Planning with products configured for CDP, considers

block definitions of resources and fixed blocks.

The result: the Optimal Production Quantity for

the Product Family

Prod. Qty is transferred to

PP/DS to create the Blocks

Create Blocks in Resource Master.

*Order Cost (production cost & setup cost)

*Non-delivery
*Procurement cost

The Optimal Production Quantity is the preliminary size of the block.

This determines the frequency of the block in the production cycle.

Generate week schedule for the Production Lines.

Private party on Saturday.. No

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

SNP: Planned orders in

PPDS: Calculates daily, hourly

weekly buckets

schedules

SNP order(Bucketed Order)

100
Last Week

PP/DS Horizon

W1

W2

W3

W4

W5

SNP horizon

SNP planned orders in the SNP horizon will be

converted to detailed schedule (PPDS orders)

PP/DS Horizon
SNP horizon

100

Today

W2

W3

Conversion of Detail Plan

to Process orders

W4

W5

Optimization /
Sequencing

WK6

PP/DS order - (continuous time scale with

start time and end time)

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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

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SAP 2012

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SAP 2012

Customer orders

Blocks
Shift schedule

Requirement get automatically scheduled

according to blocks schedule
SAP 2012

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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

Prod A

Maintain Setup Matrix/n/sapapo/cdpsc7

Display Setup Matrix/n/sapapo/cdps_setup

Time

Prod B

Prod A

Time

Prod C

Prod B

Time

Prod A

Prod B

Time

Prod C

Prod C

Time

Prod A

Prod C

Time

Prod B

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.

Maintain Setup Group/n/sapapo/cdpsc6

Group A

Time

Group B

Group A

Time

Group C

Group B

Time

Group A

Group B

Time

Group C

Group C

Time

Group A

Group C

Time

Group B

While performing detailed scheduling

System will read the setup matrix that defines the sequencedependent setup time.
A

Demand

Setup time on resource

Prod.
A
B
C

Finite Schedule
20
A

Setup

A
0
30
40

C
20
10
0

Product A:
Product B:
Product C:

30
C

Setup

Setup B
10

Setup C
10

time

30

Optimal Schedule
A

B
10
0
30

Setup time in minutes

Setup

What is the level of constraints you currently face

in your production environment ?
Answer on the right hand side of your screen
A.
B.
C.
D.
E.
F.

High Fixed Constraints

High Variable Constraints
Medium Fixed Constraints
Medium Variable Constraints
Low Fixed Constraints
Low Variable Constraints

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Graphical User Interface

SAP 2012

Drag and Drop

Drill Down to the lowest Level
Work Area
Navigation Area

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Shows the planning elements graphically in a highly customizable interface

Reports can be triggered on the fly.
SAP 2012

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Interactive What If analysis can be adopted for the

actual plan

Multiple schedules can be developed and then merged with the active plan
SAP 2012

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Requirement/Receipt Alerts:

Opt: Run what if analysis if extended the block

Re-schedule if the block is adjusted.

Product Too Late/Early

Setup PP/DS
Alert Profile

Shelf Life Alerts:

Shelf Life too short/ long
Receipt with out Pegging Relationship

Custom Capacity Alert Sent to

the planner (e.g. 70% ).

Run PP/DS
Planning

Orders in Past Alerts:

Sales Order in the past
Receipt due date/time in past.

Order Alerts-Product Dependent:

Adjust Plan
Interactively

View Alerts

Order creates surplus

Order has shortage

Days Supply Alerts:

Below minimum days supply
Required days supply exceeded

Notify Person
Responsible

Analyze Alert
Situation

Average Resource Utilization(PP/DS):

Average resource overload
Average resource underutilization
Capacity overload on bucket resource

Inventory Alerts:

Stock fallen below safety stock level

Action
1.
2.
3.
4.

Do nothing.
Extend the block.
Fix the block.
Yell at Demand Planner for the forecast being too high.

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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

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For More Information Contact:

Jaime Reints
412.733.5011
jaime.reints@plan4demand.com