SAP Production Planning
What is Production Planning?
Production planning is the process of ensuring the required materials are available for the anticipated demand of a product or service. If the forecast requires 100,000 semiconductor chips, for example, the production plan accounts for those materials from the supplier. A production schedule is then created to plan the manufacture of the final product.
Criticality of Production Planning
How critical is production planning in the supply chain? Since the COVID-19 pandemic and rapid increase in e-commerce, supply and demand dynamics have been turned on their head. The extreme volatility of material availability and product shipments is now the new normal. The “market of one” has been replaced by personalization and individual requirements with the expectation of next-day or same-day delivery.
What is Production Planning?
Production planning is the process of ensuring the required materials are available for the anticipated demand of a product or service. If the forecast requires 100,000 semiconductor chips, for example, the production plan accounts for those materials from the supplier. A production schedule is then created to plan the manufacture of the final product.
Criticality of Production Planning
How critical is production planning in the supply chain? Since the COVID-19 pandemic and rapid increase in e-commerce, supply and demand dynamics have been turned on their head. The extreme volatility of material availability and product shipments is now the new normal. The “market of one” has been replaced by personalization and individual requirements with the expectation of next-day or same-day delivery.
According to SAPinsider, manufacturers need more efficient, more effective manufacturing processes that can offer short delivery times without holding too many components in their production cycle or too much inventory in their warehouses. These sorts of processes require planning — and a lot of it.
“This is why SAP brought advanced production planning and scheduling (PP/DS) functionality directly into SAP S/4HANA,” SAPinsider says. “This functionality goes well beyond the basic planning features that were present in classical ERP systems and allows manufacturers to build constraint-based production plans and harness data from across the organization to produce the right products at the right times with optimal efficiency — and work within an end-to-end logistics scenario.”
Vendor partners for production planning include SAP Integrated Business Planning, Blue Yonder, and Anaplan.
Additional production planning resources for SAPinsiders include:
- Efficient Production Planning Using SKU Groups with the SNP Optimizer. Read how to overcome the limitations of Supply Network Planning’s aggregate and block planning capabilities.
- Control Manufacturing Cost Even when Production Planning Runs in a Non-SAP System. Read how to configure your SAP system to use CO production order functionality and learn tips about completing processes and transactions.
- How to Avoid the “Domino Effect” in Production Planning. Read how to use APO Production Planning/Detailed Scheduling to avoid the domino effect of making changes in the short-term planning horizon that cause challenges for the mid-term horizon.
1257 results
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Create Consignment Fill-Up Sales Orders Using SAP APO SNP
Follow these prerequisite, configuration, and implementation steps to model the automatic creation of consignment fill-up sales orders in SAP ERP Central Component (ECC) using Supply Network Planning (SNP) deployment functionality in SAP Advanced Planning and Optimization (SAP APO). This process enables the automatic planning and creation of sales orders from SAP APO. It minimizes the...…
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Improve Visibility of Critical Components Planning with SAP Integrated Business Planning for Sales and Operations
Learn how to meet the challenges of visibility and planning of critical components by leveraging SAP Integrated Business Planning for sales and operations. Key Concept SAP Integrated Business Planning for sales and operations is a solution powered by SAP HANA that supports an organization’s end-to-end sales and operations planning business process. In SAP Integrated Business...…
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Integrate Your SAP Data into SAP BusinessObjects Planning and Consolidation
The purpose and the semantics of transaction level data in SAP ERP can differ significantly from what business users expect to see in SAP BusinessObjects Planning and Consolidation when they perform their forecasting and consolidation activities. Taking these differences into account when integrating data into SAP BusinessObjects Planning and Consolidation is often more complex than...…
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Improve Runs for Products with Recurring Time Constraints Using SAP APO SNP
You can configure the SAP Advanced Planning & Optimization (SAP APO) Supply Network Planning (SNP) module to create a real-time shop floor plan based on production frequency. This approach is useful if a company has dedicated manufacturing lines and manufacturing weeks in a month for different product groups, and wants to generate the production plan...…
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Hone Your Manufacturing Cost Understanding for Better Decision Making
When a product is manufactured, an accounting entry is automatically made each time that a posting is made in the production process. Some of these postings take place in FI, while others are posted only in CO. Follow the flow of these accounting entries and understand the reconciliation process between FI and CO. Key Concept...…
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Effectively Manage Scrap in Your Production Processes
Discover how you can manage assembly and component scrap at various levels in an SAP system, including the master data and transactional data levels. In addition, see how to record scrap at the cost center level. Key Concept Successfully assigning assembly and component scrap in master data enables an SAP system to not only consider...…
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Express Planning Gives Managers Access to Plan Data in Multiple Systems
Express Planning is a self-service Web functionality in mySAP ERP 2005 that gives managers the ability to extract the data they need during the budgeting process, even if the data is in a different system. They also can write data back to various modules and monitor variances without any external help. Express Planning masks the...…
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Efficient Production Planning Using SKU Groups with the SNP Optimizer
SCMFind out how to overcome the limitations of Supply Network Planning’s aggregate and block planning capabilities. Key Concept Aggregate planning is a feature in Supply Network Planning (SNP) whereby net requirements calculation from medium to long term can be executed at a product group level using aggregate objects such as SKU groups, location groups, resource...…
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Control Manufacturing Cost Even when Production Planning Runs in a Non-SAP System
See how to configure your SAP system to use CO production order functionality and learn tips about completing processes and transactions with this functionality. Key Concept A CO production order is an internal order that is used to capture plan and actual manufacturing costs. Its functionality is similar to other manufacturing orders, such as production...…
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Improve Your Cost Center Planning with Driver-Based Planning
See how to plan cost center activities automatically with driver-based planning. Learn how it works in both manufacturing and service departments. Key Concept Driver-based planning is a best practice in the manufacturing industry, in which companies often use the sales plan as a starting point for the production plan and the production plan to determine...…
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