Creating Self defined information Structure

Parameters for Info Structures and Key figures

Create Update Rules for Information Structure

SOP Updating Data in an Information Structure

SOP Creating Planning Hierarchy

SOP Creation of Planning Type

SOP Creation of Macros for Planning Type

SOP Understanding Versions in SAP SOP

SOP Overview of Planning Tables

There are strategies in Standard SOP for automatically generating a. b. c. d.

Production quantities are the same as sales quantities in each Production quantities are such that target stock levels are reac Production quantities are such that target days supplies are re Production quantities are such that the stock level at the end o

Version of data that is stored in the information structure.

To check the capacity situation in a planning table, when the roug

The planner can also transfer the data for the material level data a

SOP Creation of SOP Events

SOP Forecasting

Forecast with Seasonal trend based on winters mode is Mandatory

Forecast with Automatic Model Selection Forecast with Automatic Model Selection Process 2 - More

Historical Data Adopted

SOP Mass Processing

SOP Capacity Planning

SOP Transfer Key Figure Data to Demand Management

Planning is based on historical sales or production data fetched from information structures in SAP. Information structure is synonymous to a standard table in SAP self-defined information structure (created manually in configuration) can be used to gather the sales quantities (order quantities) or sales value for a given organization level combination for example - sales organization, Standard SOP uses a characteristics combination Product group + Plant + Production Version The data in an information structure is stored for a time reference date,week, month, year.

Set the flexible planning related configuration parameters for the structure.

Define the planning method . Consistent planning or level by level planning. Planning method determines the method of disaggregation of data and the storage of data at various levels of planning. Other parameters like the planning plant defines the plant and its resources that will be used for rough cut planning, unit of measure, currency, factory calendar to know the days of the month available for the plan

Executed right after the creating and activating the information structure

The characteristics and Key Figure the data is to be updated in the information structure Characteristics for the key figure (sales order quantity) should be configured SAP offers application areas such as sales, purchase, production, plant maintenance Creation of the information structure and activating the update rules, you can create the necessary transaction data in SAP development system to test the updation of the information structure from the SAP tables.

Planning hierarchy is created for a given information structure, it is created as a master data to define the characteristics values and their proportional engagement in the organizational. let the system know the characteristics values involved in sales and operational planning. let the system know the percentage proportional weight of each of the characteristics values in the organizational hierarchy (called as the disaggregation percentage).

Automatic Calculation of Proportions factors for the Planning Hierarchy for consistent planning

Standard SOP has been configured with three planning types, which are used automatically in standard SOP planning: Planning type for the planning of individual product groups. Planning type for the planning of individual materials. Planning type for the dual-level planning of product group hierarchies. Add mathematically formulas on the data pulled in from the information structure to arrive at the final values of a certain key figures through the use of macros. Macros can be run automatically in the planning table; for which they are used as default macros, initial macros and final macros. The Default macros are called during entry in the planning table, the Initial Macros are called at the start of planning in the planning table and the Final Macros are called at the end of planning in the planning Version that is created and for which data is stored in the planning table, all the values for each of the key figures & characteristics combinations entered manually or evaluated by macros or events or forecasts are directly updated in the information structure against the respective version number. The actual data is stored against the version number and the active data is stored against the version. Between the actual version and the active version, you can create as many inactive versions and save the data against them. The inactive version is a playfield for the planner; as a result of multiple trial and errors with the planning data and data plays, the planner finally tags a planning situation as the final planning situation; this final planning situation The planning type becomes the skeleton on which the data is held. The planning type brings in the key figures that are involved (which lie on left side of the screen) and the information structure used in creation of the planning type identifies the information structure thereby involving the required characteristics combinations (organizational A planning table is created with the use of the following data or information: Planning type There are strategies in Standard SOP for automatically generating a production plan: a. b. c. d. Production quantities are the same as sales quantities in each period ("synchronous to sales") Production quantities are such that target stock levels are reached Production quantities are such that target days supplies are reached Production quantities are such that the stock level at the end of each period is zero.

The planning hierarchy and the information structure used in creation of the planning type helps the system to know the characteristics combinations and the proportions between the levels. Version of data that is stored in the information structure.

With the information structure known through the planning type, the system should also know the version number of which the data is used to be pulled in the planning table. To check the capacity situation in a planning table, when the rough cut planning tool is used in SAP SOP

The planner can also transfer the data for the material level data as planned independent requirements Important Planning table features are explained in the below steps: Using Events in the planning table Forecasting Historical data in the planning table Capacity Planning Transfer to Demand Management Transfer to COPA

Major events, national occasions, planned promotions, and festivals, seasons, can affect the sales quantities (increase or decrease) and understanding them in advance will help you to plan the same. You can spike or Events can be maintained as cumulative events or proportional events. When you create an event, the system would ask for the following details as shown in the screen shot below. The options on the screen are pretty self When events are used as cumulative events, you are enter the actually entering the actual value for a period which will add to the plan quantities or subtract from the plan quantities in a given period. When events are used as proportional events, you are actually entering the percentage hike or percentage decrement that should be installed in the plan. See the figure below.

The use of SOP in SAP is mostly to use the historical data stored in the information structures and use it for forecasting the values of a period in future. Forecasting Models and Strategies: The forecasting types/models are categorized as constant constant across and stays very much at a mean value. Forecast with Constant Models

model where the historical data is pretty

Forecast with First Order Exponential Smoothing - Alpha Smoothing

value is

required

Forecast with Automatic Alpha Smoothing factor Adoption (First Order Exponential Smoothing) (12)

Mandatory Forecast with Weighted Moving Average Method - Weighting group is Mandatory
Forecast with Moving Average Method - Number of Historical Values is

The trend model is where; there is an evident trend in the consumption of the material (evident fall or rise). Forecast with First Order Exponential Smoothing - Alpha and Beta Smoothing value is required Forecast with Second Order Exponential Smoothing with or without model parameter optimization - Alpha and Beta Smoothing is required Forecast with value Automatic Alpha Smoothing factor Adoption (Second Order Exponential Smoothing with or without model parameter optimization) The seasonal model is where; the consumption pattern changes seasonally, where fall and rise is evident and seasonal. Forecast with Seasonal trend based on winters model - Alpha and Gamma Factors per Season is Mandatory The seasonal trend model is where; the consumption is seasonal and there is an apparent trend observed in the figures. Therefore this model is a combination of seasonal and trend. Forecast with Seasonal Trend Models using First Order exponential Trend Smoothing - Alpha, Beta and Gamma Factors per Season is Mandatory

The Automatic model is where; the system applies its own calculates the optimum smoothing factor values and applies the same on the historical data and run the historical data through forecasting formulas. SAP decides the Forecast with Automatic Model Selection Forecast with Automatic Model Selection Process 2 - More Precise but time consuming The historical data way is where; the historical data is identically pasted in the future period as the forecast values. This evidently is not a forecasting type or model but is available for use in Sales & Operational Planning. Historical Data Adopted

The mass processing function in SOP is used to execute the following functions in a background mode: a) Forecasting b) Executing Macros c) Copy Key Figure Information from One information structure to another. d) Transferring SOP Key Figure Data to Demand Management e) Transferring SOP Key Figure Data to Profitability Analysis (CO-PA) f) Defining

Specify scheduling parameters for the plant and production scheduler. Keep production scheduler as * if the scheduling parameters are the same across the production schedulers. Configure the routing automatic selection procedure to allow the system to automatically select the task lists specific to the capacity planning or rough cut capacity planning

Creation of a Rough Cut Planning Profile: It is created for a material at a plant or a product group at a plant or for the characteristics combinations of an information structure. In the resource table, you can include multiple work centers, these work centers will be shown in the planning table along with the capacity situation. Capacity Evaluation in a Planning Table: The work center/resource, which would be used in capacity planning, is selected in the resource table. The work center provides the available capacity in the capacity evaluation in the planning table.

Transferring Rough-Cut Production Plan to Inactive Demand Management

Transfer the inactive version of the production plan from SOP to Demand Management where the quantities are posted as plann The ultimate goal of the sales and operational planning is to transfer the SOP planned requirements to demand management as planned independent requirements and have them manufactured. The planned independent requirements are created at the plant level for a material or at the product group level, therefore it is preferable to have a plant in the planning hierarchy as characteristics (in the information structure). With the plant in the planning hierarchy, one can easily transfer planned requirements as planned independent requirements (PIR) to demand management without any additional configuration stating the proportional distribution

ities are posted as planned independent requirements.

Sales and Operations Planning Sales & Operation Planning (SOP) is the link between sales planning and manufacturing. It is a forecasting and planning transaction to enable sales, production, inventory targets to be reached on the basis To verify the sales (demand) plan coming from COPA or other sources To create a rough-cut production plan aimed to satisfy demand and to meet inventory targets

To visualize capacity utilization of the critical resources (usually the bottleneck resources) to verify the feasibility of SOP is particularly suitable for long- and medium-term planning. In this process, you view the SOP figures. This is done after sales figures have been transferred from CO-PA to SO You can visualize the following key figures: Sales plan Production plan Projected Stock Demand Verification (Checking Sales Plan)

Check the sales plan at material level. In this scenario it is assumed that the sales plan has been created at product Therefore you can disaggregate your sales figures to a material to verify demand at an aggregated level.

Creating Rough-Cut Production Plan Generate the rough cut production plan based on your sales forecast. a. b. c. d. Production quantities are the same as sales quantities in each period ("synchronous to sales") Production quantities are such that target stock levels are reached Production quantities are such that target days supplies are reached Production quantities are such that the stock level at the end of each period is zero.

Transferring Rough-Cutting Production Plan to Inactive Demand Management

Transfer the inactive version of the production plan from SOP to Demand Management where the quantities are pos For several purposes, you can post the production plan at first in an inactive version. In our scenario we use inactive versions for the following purposes: Version 001 for simulation and long term procurement purposes (forecast). Version 002: for supporting the annual budgeting process Evaluating Capacity Requirements

Sales and Operations Planning

Sales & Operation Planning (SOP) is the link between sales planning and manufacturing. It is a forecasting and planning transaction to enable sales, production, inventory targets to be reached on the basis of historical To verify the sales (demand) plan coming from COPA or other sources To create a rough-cut production plan aimed to satisfy demand and to meet inventory targets

To visualize capacity utilization of the critical resources (usually the bottleneck resources) to verify the feasibility of the plan at SOP is particularly suitable for long- and medium-term planning. In this process, you view the SOP figures. This is done after sales figures have been transferred from CO-PA to SOP. You can visualize the following key figures: Sales plan Production plan Projected Stock Demand Verification (Checking Sales Plan)

Check the sales plan at material level. In this scenario it is assumed that the sales plan has been created at product group level Therefore you can disaggregate your sales figures to a material to verify demand at an aggregated level.

Creating Rough-Cut Production Plan Generate the rough cut production plan based on your sales forecast. a. b. c. d. Production quantities are the same as sales quantities in each period ("synchronous to sales") Production quantities are such that target stock levels are reached Production quantities are such that target days supplies are reached Production quantities are such that the stock level at the end of each period is zero.

Transferring Rough-Cutting Production Plan to Inactive Demand Management

Transfer the inactive version of the production plan from SOP to Demand Management where the quantities are posted as plann For several purposes, you can post the production plan at first in an inactive version. In our scenario we use inactive versions for the following purposes: Version 001 for simulation and long term procurement purposes (forecast). Version 002: for supporting the annual budgeting process Evaluating Capacity Requirements

n the basis of historical, existing, and estimated future data. In the process described below we use SOP

feasibility of the plan at an aggregated level.

O-PA to SOP.

d at product group level.

ities are posted as planned independent requirements.

Distribution Resource Planning (DRP) The objectives of Distribution Resource Planning (DRP) in the SAP R/3 System are: To improve customer service levels by anticipating customer demand at distribution centers and providing finished products at the correct location when customer needs arise. To provide an accurate requirements plan for manufacturing. To optimize the distribution of available stock in the distribution network using the deployment function. Deployment lets you take action when a requirements shortage or surplus is calculated as a result of DRP runs. Deployment uses algorithms for "fair share" distribution when demand exceeds supply and "push," "pull," or "pull/push" distribution when supply exceeds demand. Distribution Resource Planning (DRP)

8-Apr-01
When demand is greater than supply, deployment calculates a fair share quantity based on the available-to-deploy (ATD) quantity and requirements in the distribution centers to be supplied. When supply is greater than demand, deployment calculates distribution of stock using pull or push logic within the distribution network according to planned requirements. Generates stock transport orders from suggested orders in the DRP plan. Prioritizes quantities supplied based on requirements types (customer order, forecast, and safety stock). Multi-Sourcing Using Quota Arrangements Lets multiple plants supply a percentage of the material required by a single location, which makes it possible to prioritize the deliveries made by plants and to specify maximum delivery quantities for particular time periods. Represents simple capacity constraints, and combines the percentage-based and maximum quantity approaches. Lets you establish minimum, maximum, and rounding profiles for lot sizing within the network. Lets you change the distribution network at future dates. Lets you offset delivery times for specific items from the sourcing location to the replenishment location. Maintain quota arrangements: Define the percentage of products or materials supplied by each plant to the distribution center (the quota arrangement). Preference edit: Define which DC is supplied first when one plant supplies multiple DCs. Maximum lot size : Define the maximum quantity to which the lot size is rounded down; the system does not group requirement quantities together that exceed the maximum lot size. Minimum lot size: Define the minimum quantity to which the lot size is

rounded up; the system does not group requirement quantities together that are less than the minimum lot size. Maximum quantity: Define the quantity of a material that cannot be exceeded for a particular plant. Planned delivery time: Define the number of days required to procure a material via external procurement Single-Sourcing Using Special Procurement Keys: Lets you define the procurement for particular materials.

Distribution Resource Planning (DRP) The objectives of Distribution Resource Planning (DRP) in the SAP R/3 System are: To improve customer service levels by anticipating customer demand at distribution centers and providing finished products at the correct location when customer needs arise. To provide an accurate requirements plan for manufacturing. To optimize the distribution of available stock in the distribution network using the deployment function. Deployment lets you take action when a requirements shortage or surplus is calculated as a result of DRP runs. Deployment uses algorithms for "fair share" distribution when demand exceeds supply and "push," "pull," or "pull/push" distribution when supply exceeds demand. Distribution Resource Planning (DRP)

8-Apr-01
When demand is greater than supply, deployment calculates a fair share quantity based on the available-to-deploy (ATD) quantity and requirements in the distribution centers to be supplied. When supply is greater than demand, deployment calculates distribution of stock using pull or push logic within the distribution network according to planned requirements. Generates stock transport orders from suggested orders in the DRP plan. Prioritizes quantities supplied based on requirements types (customer order, forecast, and safety stock). Multi-Sourcing Using Quota Arrangements Lets multiple plants supply a percentage of the material required by a single location, which makes it possible to prioritize the deliveries made by plants and to specify maximum delivery quantities for particular time periods. Represents simple capacity constraints, and combines the percentage-based and maximum quantity approaches. Lets you establish minimum, maximum, and rounding profiles for lot sizing within the network. Lets you change the distribution network at future dates. Lets you offset delivery times for specific items from the sourcing location to the replenishment location. Maintain quota arrangements: Define the percentage of products or materials supplied by each plant to the distribution center (the quota arrangement). Preference edit: Define which DC is supplied first when one plant supplies multiple DCs. Maximum lot size : Define the maximum quantity to which the lot size is rounded down; the system does not group requirement quantities together that exceed the maximum lot size. Minimum lot size: Define the minimum quantity to which the lot size is

rounded up; the system does not group requirement quantities together that are less than the minimum lot size. Maximum quantity: Define the quantity of a material that cannot be exceeded for a particular plant. Planned delivery time: Define the number of days required to procure a material via external procurement Single-Sourcing Using Special Procurement Keys: Lets you define the procurement for particular materials.