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Daily Planning
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18
18 Month Plan
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Concepts of Daily Planning
Plans/Schedules require continuous
monitoring to ensure they remain valid &
reflect reality
Where business conditions have significantly
changed, schedule adjustments inside the
PTF/Firm Zone may be required (linkage to
Short Term Planning)
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Work Process Elements
Review Exception Messages
Evaluate and make, if appropriate,
adjustments to the schedule
Convert Planned Orders to Process Orders
Analyze process measurement data
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Exception Messages in SAP
Exception messages are generated during the
MRP run
Attached to supply side MRP elements
Displayed on the MRP list
3 basic functions (what they tell us):
firm orders not consistent with inventory
parameters
master data/config problems
general plan changes to supply elements
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Exception Message Groups
1 - opening date in past (purchased items)
2 - start date in past (produced items)
3 - finish date in past
4 - order changes (info only)
5 - master data/customizing problems
6 - re-schedule in recommendations
7 - re-schedule out recommendations
8 - MRP termination
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Exception Messages
Work Process steps to find & evaluate
Exception Messages
Select collective display of MRP lists for
materials.
Review relevant messages for each material
and determine what schedule changes are
needed.
Identify materials requiring changes
Upon completion of review, set process
indicator for MRP list.
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Collective Display: Initial Screen
Recommend selection of all
materials by leaving all Exception
Groups unselected
Recommend selection of All
MRP lists in Processing
Indicator Tab
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MRP Lists - Collective Display
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MRP Lists Define Traffic Light
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MRP Lists - Sorting
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Find Past Due Elements
Click on icon to open Find window
Select Find MRP Elements tab
and enter latest date for search,
select all MRP elements and
click on Find MRP elements icon
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Find Exception Messages
Standard process is to review
exception messages following a
standard review process.
First select materials with messages
in exception group 3 (past due) then
group 6 (move in) and group 7
(move out/cancel).
Select the row selector and then
click the Find exceptions icon.
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Find Exception Messages
Result of using the Find feature is that all materials that have
the exception will be highlighted in the Collective List. Click
the icon to review the selected lists.
Us the Find next icon when on the individual lists to
move to each of the MRP elements that met the Find
conditions.
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MRP Lists Graphics
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MRP List
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MRP List Configurable Display
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Things Impacting Daily Plans
Unexpected supply failures or demand
surprises
Supply failures can result when suppliers do
not deliver on time or expected quantities.
Also, supply failures can result when the
production plant does not produce the
quantity on the schedule (high or low).
Demand failures can result when customer
orders are higher or lower than expected.

One tool that is used to help reduce some of the
nervousness on the demand side is called
forecast consumption.

mySAP
Forecast Consumption
SAP functionality that determines how MRP
will handle deviations between actual and
forecasted demand
used to stabilize the supply chain
controlled by a set of parameters that are
contained in the MRP group (configuration)
Forecast Consumption is:
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Consumption Settings
Consumption Mode
controls the direction (forward,
backward, or both) in which customer
orders will consume the forecast
Consumption Periods (horizons)
determines how far backward or
forward (in days) a customer order
should look to consume demand
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Forecast Consumption Example 1
Overshipping (no incremental demand)
=
Consumption Mode: Backwards/Forwards
Consumption Periods: 3 Back/ 3 Forward

Actuals
Day Forecast shipments orders consumed unconsumed
-2 100 0 100 0
-1 100 0 100 0
0 100 300 100 0
1 100 100 0
2 100 100 0
3 100 400 100 0
4 100 100 0
5 100 0 100
6 100 100
Totals 900 300 400 700 200
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Consumption Mode: Backwards/Forwards
Consumption Periods: 3 Back/ 3 Forward

Actuals
Day Forecast shipments orders consumed unconsumed
-2 100 0 100 0
-1 100 0 100 0
0 100 300 100 0
1 100 500 100 0
2 100 100 0
3 100 100 0
4 100 100 0
5 100 100
6 100 100
Totals 900 300 500 700 200
Forecast Consumption Example 2
Overshipping (with incremental demand)
>
End of the consumption
horizon for the order on day
1
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Forecast Consumption Example 3
Undershipping:
=
Consumption Mode: Backwards/Forwards
Consumption Periods: 3 Back/ 3 Forward

Actuals
Day Forecast shipments orders consumed unconsumed
-2 100 0 0 100
-1 100 0 50 50
0 100 150 100 0
1 100 0 100
2 100 100 0
3 100 200 100 0
4 100 0 100
5 100 0 100
6 100 100
Totals 900 150 200 350 550
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Adjustment Period
another set of forecast management
parameters controlled in the MRP group
determines when unconsumed forecast
will be ignored by MRP (becomes
irrelevant)
helps make the plan more sensitive to
undershipping scenarios
Adjustment Period for Independent
Requirements (APFIR) :
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APFIR Parameters
Adjustment Period
defines a period in which unconsumed
forecast will be excluded from the net
requirements calculation (irrelevant to
MRP)
Adjustment Period Indicator
defines the direction (in the future or in
the past) in which the adjustment
period is applied
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Consumption Mode: Backwards/Forwards APFIR: 3 days
Consumption Periods: 3 Back/ 3 Forward APFIR Indicator: in the Past

Actuals
Day Forecast shipments orders consumed unconsumed
-4 100 0 0 (100)
-3 100 0 0 100
-2 100 0 0 100
-1 100 0 50 50
0 100 150 100 0
1 100 0 100
2 100 100 0
3 100 200 100 0
4 100 0 100
5 100 0 100
6 100 100
Totals 1100 150 200 350 650
Forecast Consumption Example 4
Undershipping with an APFIR setting:
Irrelevant
Demand
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Forecast Consumption
Forecast Consumption on the Stock Requirements List
Consumption Parameters:
backward/forward (3,3)
Adjustment Parameters: 3
days (in the past)
Unconsumed
IndReq dates
outside APFIR
appear but are
irrelevant to MRP
Fully consumed
IndReq dates no
longer appear
(2/18 -2/21)
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Forecast Consumption
Summary
Understanding the consumption logic will allow
planners to better interpret their planning situations
and make better scheduling decisions
Forecast consumption settings affect the
responsiveness of the plan to forecast variations
Consumption settings are driven by the needs of the
business and will be made at the category level
Choosing the right settings will help balance the
responsiveness of the plan and the stability of the
supply chain
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Exception Messages
Tips for reviewing Exception Messages
Look for master data & termination problems (groups 5 & 8).
Watch out for old MRP elements that may be
mis-representing the planning situation.
Look inside PTF and firm zone for rescheduling messages.
Look at orders just outside the PTF that will come in during
the next mrp run and/or have rescheduling messages.
Look at available quantity on the line with EM and check
against inventory target.
Look for forecast consumption clues on reality of demand
(Orders vs. IndReqs in the near term).
For component material, understand materials firm zone
and safety strategy.
WI 20 Exercise 1
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Adjustments to Plan
Work Process Steps
Determine criticality of change
Identify potential options to address problem
Identify implications (e.g. MPS miss)
Decide which adjustments, if any, are required
Make adjustments to the plan
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Evaluating Need for Change
Key Questions to Answer
Do I have safety stock to cover this risk?
What is the risk of cutting actual customer
orders?
If I dont adjust the plan, when will I be healthy
again on this item?
Will a change likely cause problems in another
material?
Do I have any past experience to guide me for
this material?
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Options to Address Problem
Key Options inside the PTF
Capacity
Increase uptime (other shifts, weekend, OT)
Increase rate, if applicable
Inventory
Move production to an earlier date
Increase production of an existing order
Delay production of another material
Other (e.g. move production to another location)
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Assess Options
Process
Review inventory for all potentially-affected
brandcodes using available tools
Tools
Stock Curves
Stock Requirements List
SPI Report
Availability Checking
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Stock Curves
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Stock Requirements/SPI Reports
Stock Requirements List is helpful for a small
number of materials being reviewed in the near-
term horizon.
Summary view provides Days Forward
Coverage
SPI Report is helpful when many materials are
being reviewed and a longer horizon might be
required for the inventory evaluation (ie., long
production cycles).
The drill in capability of the SPI report
provides an easy way to look at DFC for
many materials
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Decide on the Adjustments
Points to Consider
Plan Stability
What are the least number of changes that
will solve the problems?
Total Supply Chain
What is the best solution for the entire supply
chain versus just one area?
Leverage Safeties and High Capability Systems
Safeties are intended for periodic use. The
higher the supply chain system capability, the
more risk you can take with those materials.
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Daily Planning - Rescheduling Techniques
Graphical Planning Table Options
Use Highlighting to find orders, patterns, etc.
Deallocate a previously dispatched order
Change an order in the Graphical Planning Table
Check material availability for a changed order
Manually insert order between dispatched orders
Automatically insert an order at the best time for
setup
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Order Highlighting on the GPT
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Insert a New Order
A A C B A C
M T W Th F S S
B
D
Before
After
not dispatched
dispatched
A A C B A C B D
Inserting an order into a string of dispatched orders will
move forward all orders after that unless there was
enough room to accommodate the new order entirely.

Therefore, think about the MPS fixed zone and supplier
schedules that might be affected!
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Availability Checking in SAP
Allows you to assess whether you have the
materials you need to support a change to the
schedule
Provides information on both if you have the
materials you need as well as when you will
have them
Can be run prior to saving changes to orders
Involves a collective batch job
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Inventory as seen by
Availability Checking Tool
Process Order
Material
Reservations
What Availability Checking Does
Process Order
Material
Reservations
Available
Inventory
Inventory as seen on
the MRP/SR Lists
Planned Order
Material Commitments
(in date order)
Changed Order -
New Commitments
Available
Inventory
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Change an Order
Uncheck here
before saving
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Availability Overview
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Confirmation Proposal
Exercise 2
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Automatic Insertion of an Order
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Conversion of Planned Orders
SIP hands off planned orders to Execution by
converting them to process orders.
Production confirmation is done against the
Process Order.
Production Execution owns confirmation of the
process orders.
MRP Element is PrcOrd.
When PlOrd. is converted to PrcOrd. - lower
level DepReq is converted to OrdRes
After production is confirmed, the PrcOrd
becomes a QMLot, if QA release is used
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Conversion of Planned Orders
PlOrd. can be converted to PrcOrd. :
individually
collectively
Recommendation:
convert PlOrd.s daily for the next 1-2 days
weekends may need to go out 3-4 days
Process orders that are generated in error can
not be deleted; must be technically completed.
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Individual PlOrd. conversion
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Individual PlOrd. conversion
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Process Order status indicators
Key status indicators relevant to planning
REL - Released
PCNF - Partial confirmation
CNF - Confirmed
APG - Approval granted
APNG - Approval not granted
TECO - Technically complete (canceled)
MSPT Material shortage
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Collective PlOrd. conversion
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Collective PlOrd. conversion
WI 21 & 22 Exercise 3 & 4
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Process Measurements in SAP
There are currently 3 deployed SIP process
measurements related to the Planning:
MPS Performance
Production scheduling stability
Production execution reliability
MRP Performance
Component material scheduling stability
Supplier Scheduling Performance (SSP)
Component material delivery reliability
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MPS Performance
Key Concepts
Measures changes made to the production schedule
inside the MPS fixed zone.
Measures production execution against the process
order expectations:
within quantity tolerance
within timing tolerance
Reason codes can be established to track causes of a
miss.
Reports available to summarize results.
Reason code analysis data also available.
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MPS Performance
Table & Data Maintenance
Establish resources to be measured in a table.
Establish lower level reason codes in a table.
Set up site in a nightly data collection job.
Review results and assign reason codes
to miss events (daily).
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MRP Performance
Key Concepts
Measures % of Delivery Schedule lines not
changed inside the materials firm zone
Changes include:
add new quantity
delay/cancel existing quantity
modify existing quantity on a delivery date
Reason codes can be assigned to miss events
Summary/detailed performance reports available
Reason code analysis reports available
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MRP Performance
Table & Data Maintenance
Establish vendors to be measured in a table
Establish standard reason codes in a table
Set up site in a nightly data collection job
Review results and assign reason codes
to miss events (daily)
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Supplier Scheduling Performance
Key Concepts
Measures cumulative deliveries of material within
time & quantity tolerances attach point where
deliveries are scheduled
Tolerances can be established by plant, vendor,
material
time: days (+ or -)
quantity: % (+ or -)
Reason codes can be assigned to miss events
Summary/detailed performance reports available
Reason code analysis reports available
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Supplier Scheduling Performance
Table & Data Maintenance
Establish vendors to be measured in a table
Tolerances can be defined at vendor or
material level
Establish standard reason codes in a table
Set up site in a nightly data collection job
Review results and assign reason codes
to miss events (daily)
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