Create a Standard Cost Estimate. Hint: The marking allowance is done by the instructor.

Transcription

1 Unit 9 Exercise Create a Standard Cost Estimate Business Example Now that you have changed the BOM and the routing you need to calculate the cost for your finished product T-F1## again. You run a standard cost estimate to calculate the costs of good manufactured and the costs of goods sold. In this exercise, when the values include ##, replace ## with the number your instructor assigned to you. To perform this task. you will log on to the back-end system and use transactional processes. Hint: The marking allowance is done by the instructor. 1. Choose Marking Allowance. 2. Choose Company Code In the following dialog box, enter Costing Variant PPC1 and choose Save. 1. Run a standard cost estimate for your finished product and save it. Perform this task using a transaction. Use the following data: Field Material Value T-F1## Plant 1010 Costing Variant PPC1 Costing Lot Size 100 Costing Date from Today Copyright. All rights reserved. 493

2 Unit 9 Solution Create a Standard Cost Estimate Business Example Now that you have changed the BOM and the routing you need to calculate the cost for your finished product T-F1## again. You run a standard cost estimate to calculate the costs of good manufactured and the costs of goods sold. In this exercise, when the values include ##, replace ## with the number your instructor assigned to you. To perform this task. you will log on to the back-end system and use transactional processes. Hint: The marking allowance is done by the instructor. 1. Choose Marking Allowance. 2. Choose Company Code In the following dialog box, enter Costing Variant PPC1 and choose Save. 1. Run a standard cost estimate for your finished product and save it. Perform this task using a transaction. Use the following data: Field Material Value T-F1## Plant 1010 Costing Variant PPC1 Costing Lot Size 100 Costing Date from Today a) On the SAP Easy Access Screen, choose Accounting Controlling Product Cost Controlling Product Cost Planning Material Costing Cost Estimate with Quantity Structure Create. Alternatively, use transaction code CK11N. 494 Copyright. All rights reserved.

3 Lesson: Creating a Product Cost Estimate b) On the Initial screen of Create Material Cost Estimate with Quantity Structure, enter the following values provided in the table for the Material and Plant fields. c) On the Costing tab, enter the values provided in the table for the Costing Variant and Costing Lot Size fields. d) Choose the Dates and, choose Default value and, in the Costing Date from field, enter today s date. e) Press Enter. f) Check whether the lock has been included in the calculation. g) Save the data. Copyright. All rights reserved. 495

4 Unit 9: Plan to Produce Business Process in SAP S/4HANA 496 Copyright. All rights reserved.

5 Unit 9 Exercise Update Material Valuation Business Example You created a new standard cost estimate. The new calculated costs need to be transferred to the material master record. You will update the material price in the accounting view of the material master record. You will use a transaction for that. In this exercise, when the values include ##, replace ## with the number your instructor assigned to you. 1. Select the material for update and use the following details: Field Posting Period / Year Value Actual month / Actual Year Company Code 1010 Plant 1010 Material Test Run T-F1## Delimit 2. Open a second session and review the material master. What is the future price for the material? 3. Update the material valuation price in the material master of your finished product TT-F1## and release the cost estimate. Use the following data: Field Posting Period / Year Value Actual month / Actual Year Company Code 1010 Plant 1010 Material T-F1## Copyright. All rights reserved. 497

6 Unit 9: Plan to Produce Business Process in SAP S/4HANA Field Test Run Value Delimit Has the standard price been updated? 498 Copyright. All rights reserved.

7 Unit 9 Solution Update Material Valuation Business Example You created a new standard cost estimate. The new calculated costs need to be transferred to the material master record. You will update the material price in the accounting view of the material master record. You will use a transaction for that. In this exercise, when the values include ##, replace ## with the number your instructor assigned to you. 1. Select the material for update and use the following details: Field Posting Period / Year Value Actual month / Actual Year Company Code 1010 Plant 1010 Material Test Run T-F1## Delimit a) On the SAP Easy Access screen, choose Accounting Controlling Product Cost Controlling Product Cost Planning Material Costing Price Update. Alternatively, use transaction code CK24. b) In the Initial screen of Price Update: Mark Standard Price enter the data provided in the table. c) Choose Execute. 2. Open a second session and review the material master. a) Use transaction MM03 to go directly to the material master record of T-F1##. b) In the initial screen of Display material master, enter your material number. c) Press Enter. d) Choose the Costing 2 tab. e) Enter the Plant 1010 and press Enter again. Copyright. All rights reserved. 499

8 Unit 9: Plan to Produce Business Process in SAP S/4HANA What is the future price for the material? The future price is Update the material valuation price in the material master of your finished product TT-F1## and release the cost estimate. Use the following data: Field Posting Period / Year Value Actual month / Actual Year Company Code 1010 Plant 1010 Material Test Run T-F1## Delimit a) Go to the Price Update session. b) In the Price Update transaction, choose Release. c) In the Initial screen of Price Update: Release Standard Price enter the data provided in the table. d) Choose Execute. e) Go to the Display Material Master session. f) Exit the current material master and start the transaction again. g) In the initial screen of Display material master, enter your material number. h) Press Enter. i) Choose the Costing 2 tab. j) Enter the Plant 1010 and press Enter again. k) Leave both transactions. Has the standard price been updated? Yes, the future price has been transferred to the current price and as well to the standard price. 500 Copyright. All rights reserved.

9 Lesson: Creating a Product Cost Estimate LESSON SUMMARY You should now be able to: Create a product cost estimate Copyright. All rights reserved. 501

10 Unit 9 Lesson Planning Product Demand - Integrated Planning LESSON OBJECTIVES After completing this lesson, you will be able to: Plan product demand 502 Copyright. All rights reserved.

11 Unit 9 Exercise Manage Planned Independent Requirements Business Example Now that you changed the structure of your bicycle, you need to rebuild the existing production plan. Therefore, you want to gain an overview about the current production situation for the material T-F1##. Afterwards, you will rearrange the existing production plan for material T-F1##. In this exercise, when the values include ##, replace ## with the number your instructor assigned to you. This exercise requires the Material Master, created in the exercise, Create and Extend a Vendor Master Record. The PID created in this exercise is required for one or more subsequent exercises in this course. 1. Check the current situation for the bicycle T-F1##. Note: When using the Monitor Material Coverage for the first time, a dialog box appears, where you need to enter your MRP Controller. Choose the MRP Controller 0## in plant How much of the material is available in Stock? How much of the material is already planned? 2. Because there are no requirements in the system, create a production plan for the next 10 weeks. Use the following quantities starting in the actual week plus 2 weeks: W+2 W+3 W+4 W+5 W+6 W+7 W+8 W Copyright. All rights reserved. 503

12 Unit 9: Plan to Produce Business Process in SAP S/4HANA 3. Check the situation again. Write down the requirement dates and the quantities for the first four planned independent requirements as follows: Requirement MRP element Date Quantity What kind of MRP elements have been created for the Planned independent requirements? What is the current situation for the material T-F1##? 504 Copyright. All rights reserved.

13 Unit 9 Solution Manage Planned Independent Requirements Business Example Now that you changed the structure of your bicycle, you need to rebuild the existing production plan. Therefore, you want to gain an overview about the current production situation for the material T-F1##. Afterwards, you will rearrange the existing production plan for material T-F1##. In this exercise, when the values include ##, replace ## with the number your instructor assigned to you. This exercise requires the Material Master, created in the exercise, Create and Extend a Vendor Master Record. The PID created in this exercise is required for one or more subsequent exercises in this course. 1. Check the current situation for the bicycle T-F1##. Note: When using the Monitor Material Coverage for the first time, a dialog box appears, where you need to enter your MRP Controller. Choose the MRP Controller 0## in plant a) On the Launchpad, choose the Monitor Material Coverage tile. b) In the dialog box, enter the MRP Controller 0## in plant c) Choose the material Stock Availability and choose Check Material Coverage. How much of the material is available in Stock? How much of the material is already planned? 2. Because there are no requirements in the system, create a production plan for the next 10 weeks. Use the following quantities starting in the actual week plus 2 weeks: W+2 W+3 W+4 W+5 W+6 W+7 W+8 W+9 Copyright. All rights reserved. 505

14 Unit 9: Plan to Produce Business Process in SAP S/4HANA a) On the Launchpad, choose the Manage PIR tile. b) On the Manage PIR Material list, select the material T-F1## and click the line. c) In the Draft PIR column, enter the values provided in the table. d) Choose Release PIR. e) Go back to the Manage PIR screen. 3. Check the situation again. Write down the requirement dates and the quantities for the first four planned independent requirements as follows: Requirement MRP element Date Quantity a) On the Launchpad, choose the Monitor Material Coverage tile. The Stock Availability should be in red. b) Click the Stock Availability for material T-F1##. and choose Check Material Coverage. c) Write down the requirement dates and the quantities for the first 4 planned independent requirements in the spaces provided in the table. d) Go back to the Launchpad. What kind of MRP elements have been created for the Planned independent requirements? What is the current situation for the material T-F1##? 506 Copyright. All rights reserved.

15 Lesson: Planning Product Demand - Integrated Planning LESSON SUMMARY You should now be able to: Plan product demand Copyright. All rights reserved. 507

16 Unit 9 Lesson Defining the MRP Process LESSON OBJECTIVES After completing this lesson, you will be able to: Define the MRP process The MRP Process Figure 227: Full Blown Scope Scope Reduction no Longer Necessary SAP S/4HANA, on-premise edition 1511 no longer supports net change planning in the planning horizon (processing key NETPL). MRP always determines material shortages for all known material requirements. In other words, MRP can no longer cover only the material shortages inside a limited planning horizon. MRP Cockpit The figure, MRP Cockpit Entry Page, shows the MRP cockpit entry page. 508 Copyright. All rights reserved.

17 Lesson: Defining the MRP Process Figure 228: MRP Cockpit Entry Page The figure, Material Shortages, shows the Material Shortages page. Figure 229: Material Shortages Copyright. All rights reserved. 509

18 Unit 9: Plan to Produce Business Process in SAP S/4HANA Figure 230: Stock Requirement List with Solution Proposals The figure, Uncovered Sales Order with Solution Proposals, shows the uncovered sales order with solution proposals. Figure 231: Uncovered Sales Order with Solution Proposals 510 Copyright. All rights reserved.

19 Lesson: Defining the MRP Process Optimized MRP Run Figure 232: Optimized MRP Run First Optimization Step In the first optimization step of the MRP run, the read MRP data already exists. Comparing the classic implementation and the optimized SAP HANA-based implantation you can easily see that read/write activities are optimized by taking advantage of parallelization. Copyright. All rights reserved. 511

20 Unit 9: Plan to Produce Business Process in SAP S/4HANA New and Classic Mode Working Together Figure 233: New and Classic Mode Working Together The MRP run with the MRP Dispatcher covers the following: Automatic determination and selection of planning mode per material, dependent on functional requirements of the material regarding planning, that can be overruled manually. The functionality of the new mode will be enhanced continuously with that more materials can be planned in the new mode. Only very special functionality will remain in the classic mode. Existing customer enhancements will also be supported in the classic mode. The result is that the implementation of this planning run will not lead to loss of functionality, it can be used immediately in a compatible way. Advantages of MRP on SAP S/4HANA If a material is transferred from one plant to another, the stock-transfer requirement is not known in the supplying plant until after the material has been planned in the receiving plant. MRP Live determines the sequence in which materials have to be planned across several plants. MRP Live is a prerequisite for the future production planning and detailed scheduling PP/DS solution in SAP S/4HANA. Classic MRP is still available as an interim solution, which at the moment has to be used in the following cases: 512 Copyright. All rights reserved.

21 Lesson: Defining the MRP Process - To create capacity requirements with MRP (in a future release, MRP Live will also be able to create capacity requirements). Net Requirements Calculation Figure 234: Net Requirements Calculation In MRP, a net requirements calculation is executed in the planning run to determine whether a material shortage exists for a certain material. In addition, stock and fixed receipts that currently exist (for example, purchase orders, production orders, fixed purchase requisitions, and planned orders) are compared with the safety stock and requirements. The result of this comparison is the quantity available for planning. If the quantity available for planning is lower than zero, a material shortage exists. MRP reacts to material shortages by creating new procurement proposals (purchase requisitions and planned orders). The suggested procurement quantity results from the lot-sizing procedure that is set in the material master. Copyright. All rights reserved. 513

22 Unit 9: Plan to Produce Business Process in SAP S/4HANA 514 Copyright. All rights reserved.

23 Unit 9 Exercise Change the Material Master Record Business Example You want to gain an overview what kind of information is stored in a material master record. You will check the material master for the bicycle and see how a material master data record is structured. Iin this exercise, when the values include ##, replace ## with the number your instructor assigned to you. 1. To gain a first overview about the structure of a material master record, check the material master for the bicycle, T-F1##, to be produced. Check the Basic Data, the Sales Data, the Work Scheduling data and the Accounting data. Use the following information: Field Value Material number T-F1## Plant 1010 Sales Organization 1010 Distribution Channel Review whether the planning strategy is maintained correctly in the finished product by checking the material master for the bicycle T-F1##. Look at the MRP3 data, where you find the information from the perspective of preplanning. Check whether the planning with final assembly is maintained and note the Consumption mode, as well as the consumption periods. In the Forecast requirements section, which values are maintained for the Strategy Group, the Consumption Mode and the consumption periods? Write down the values in the following table: Field Strategy Group Consumption Mode Bwd. Consumption per. Fwd. Consumption per. Value Copyright. All rights reserved. 515

24 Unit 9: Plan to Produce Business Process in SAP S/4HANA What is the impact of these settings for the finished product? Write down an explanation. 516 Copyright. All rights reserved.

25 Unit 9 Solution Change the Material Master Record Business Example You want to gain an overview what kind of information is stored in a material master record. You will check the material master for the bicycle and see how a material master data record is structured. Iin this exercise, when the values include ##, replace ## with the number your instructor assigned to you. 1. To gain a first overview about the structure of a material master record, check the material master for the bicycle, T-F1##, to be produced. Check the Basic Data, the Sales Data, the Work Scheduling data and the Accounting data. Use the following information: Field Value Material number T-F1## Plant 1010 Sales Organization 1010 Distribution Channel 10 a) On the Launchpad, choose the Display Material tile. b) In the Initial screen of Display Material, in the Material field, enter T-F1##. c) Press Enter. d) In the dialog box, select the following views: Basic Data, Sales Data 1 and 2, Work Scheduling, and Accounting Data Review whether the planning strategy is maintained correctly in the finished product by checking the material master for the bicycle T-F1##. Look at the MRP3 data, where you find the information from the perspective of preplanning. Check whether the planning with final assembly is maintained and note the Consumption mode, as well as the consumption periods. a) To select the views relevant for the preplanning of the material, in the Select View dialog box, select the MRP 3 view, and press Enter. b) In the Organizational Levels dialog box, in the Plant field, enter your plant Copyright. All rights reserved. 517

26 Unit 9: Plan to Produce Business Process in SAP S/4HANA c) Press Enter. d) Look at the Forecast requirements section, and write down the values that are maintained for the Strategy Group, the Consumption Mode, and the consumption periods. In the Forecast requirements section, which values are maintained for the Strategy Group, the Consumption Mode and the consumption periods? Write down the values in the following table: Field Strategy Group Consumption Mode Bwd. Consumption per. Fwd. Consumption per. Value What is the impact of these settings for the finished product? Write down an explanation. 518 Copyright. All rights reserved.

27 Lesson: Defining the MRP Process LESSON SUMMARY You should now be able to: Define the MRP process Copyright. All rights reserved. 519

28 Unit 9 Lesson Processing MRP LESSON OBJECTIVES After completing this lesson, you will be able to: Process MRP Processing MRP Figure 235: MRP Key Features and Benefits SAP S/4HANA features MRP Live, an MRP run optimized for SAP HANA. MRP Live reads material receipts and requirements, calculates shortages, and creates planned orders and purchase requisitions all in one database procedure. This minimizes the volume of data that has to be copied from the database server to the application server and back, which considerably improves performance. MRP Live has some additional advantages including the following, for example: The definition of the planning scope is more flexible. MRP Live allows you to plan a set of materials with all components, materials for which a certain production planner is responsible, or one material across all plants. If a material is transferred from one plant to another then the stock-transfer requirement is not known in the supplying plant until after the material has been planned in the receiving 520 Copyright. All rights reserved.

29 Lesson: Processing MRP plant. MRP Live determines the sequence in which materials have to be planned across several plants. MRP Live is a prerequisite for the future production planning and detailed scheduling PP/DS solution in SAP S/4HANA. Main Function of MRP Figure 236: Main Function of MRP The main function of material requirements planning is to guarantee material availability, that is, it is used to procure or produce the requirement quantities on time both for internal purposes and for sales and distribution. This process involves the monitoring of stocks and, in particular, the automatic creation of procurement proposals for purchasing and production. Copyright. All rights reserved. 521

30 Unit 9: Plan to Produce Business Process in SAP S/4HANA Figure 237: MRP in In-House Production and External Procurement Material requirements planning takes current and future sales as its reference point. The planned requirement quantities trigger the MRP calculation. In MRP, the requirements elements include sales orders, planned independent requirements, material reservations, the dependent requirements created by exploding the BOM, and so on. If the MRP run determines shortage quantities, the system creates procurement proposals: Purchase requisitions and planned orders are internal planning elements that can be changed, rescheduled, or deleted at almost any time. With in-house production, the system creates planned orders for planning the production quantities. When planning is complete, planned orders can be converted into production orders. With external procurement, the system either uses a planned order or uses a purchase requisition directly to plan the external procurement quantity. When planning is complete, the planned order is converted into a purchase requisition, which is subsequently converted to a purchase order. Using the creation indicator for purchase requisitions on the initial screen of the planning run, you control whether the system immediately creates purchase requisitions directly, or first creates planned orders. If a scheduling agreement exists for a material and is relevant for MRP in the source list, you can also create schedule lines directly using MRP. You control this using the creation indicator for scheduling agreement delivery schedule lines on the initial screen of the planning run. 522 Copyright. All rights reserved.

31 Lesson: Processing MRP Improved MRP and PP with Suite on SAP HANA Figure 238: Improved MRP and PP with Suite on SAP HANA With SAP S/4HANA, the MRP live concept is enabled to get rid of the danger of planning with obsolete data. Figure 239: What is MRP? Material Requirements Planning (or MRP) is a supply chain planning process used with other planning process such as, Demand Planning, Supply Planning, Sales & Operations Planning, Production Planning, and Transportation Planning, all of which are used to manage the supply chain activity of the enterprise. MRP is the process of matching enterprise wide supply with actual and forecasted customer demand to identify potential material shortage situations and to recommend potential solutions. Copyright. All rights reserved. 523

32 Unit 9: Plan to Produce Business Process in SAP S/4HANA Examples of Supply includes material in inventory, planned stock transfers, purchase orders, and good receipts from manufacturing. Examples of Demand includes customer sales orders and forecasts of future customer demand. Supply and demand requirements are location specific and MRP matching is performed to ensure that the materials are in the right location at the right time to fulfill customer demand. MRP Today Batch-Driven Process and Multiple ERP Transactions Figure 240: MRP Today Batch-Driven Process and Multiple ERP Transactions The MRP Planning Run is a resource intensive batch process. It involves thousands of materials in hundreds of physical locations. It performs hundreds of thousands of database reads from across multiple database tables in ERP. The process typically takes hours to execute, so it is typically run once a week, once every couple of days or overnight. On completion, it creates a snapshot of the existing material situation across all the locations in an enterprise. 524 Copyright. All rights reserved.

33 Lesson: Processing MRP MRP Live Figure 241: MRP Live MRP Live refers to the migration of the traditional MRP Planning capability to run on SAP HANA. MRP on SAP HANA provides the ability to run MRP faster and, therefore, more frequently. This means more real-time visibility to a broader set of supply and demand data from across the enterprise, including the combination of sales order, inventory, and procurement information into a single view. The solution immediately calculates and highlights the material issues that need to be addressed across thousands of material stock situations. The new process is faster, is streamlined, and is less manually intensive. All of these factors allow the Material Planner to identify issues more quickly and find better solutions to material shortage issues. Copyright. All rights reserved. 525

34 Unit 9: Plan to Produce Business Process in SAP S/4HANA Smart Business for MRP Figure 242: Smart Business for MRP Traditionally, to identify solutions to materials shortages, a Material Planner had to investigate options across multiple ERP transactions, which was time consuming. With Smart Business for MRP, the ability to identify and make decisions to solve material shortage issues is greatly improved, as follows: More frequent MRP runs provides more timely and accurate material stock information It provides a single, real-time view of material shortage information across sites without having to navigate across multiple ERP transactions There are new views of material shortages from a sales order, inventory, and procurement point of view, instead of just a material view There is new ability to simulate recommended solution viability and effectiveness in real-time across sites and thousands of material situations As a result of these changes, the Material Planner is much more effective. 526 Copyright. All rights reserved.

35 Lesson: Processing MRP Improved Solution Identification and Resolution Figure 243: Improved Solution Identification and Resolution Smart Business for MRP is a new capability being developed to replace existing MRP UI and transactions in ERP, with the following features: For each material, it provides real-time visibility to the stock situation and indicates when a stock level will become insufficient or critical. It provides personalization capability to allow the Material Planner to filter on certain types of materials and get different and customized views of shortages. It performs re-calculation of thousands of material situations in real-time. It not only suggests potential solutions but, using SAP HANA, also allows the ability to evaluate the potential viability and results of a solution, before it is applied. Copyright. All rights reserved. 527

36 Unit 9: Plan to Produce Business Process in SAP S/4HANA SAP Fiori Apps for Production Planning Figure 244: SAP Fiori Apps for Production Planning In Suite on SAP HANA, there is also improved UI and processes for traditional Production Planning, Quality Management, and Enterprise Asset Maintenance. In Production Planning, planned orders and purchase requisitions inside the replenishment lead time have to be released to the shop floor and the purchasing department respectively. On completion of production, the amount of product produced and raw materials and resources consumed need to confirmed. In Suite on SAP HANA, new User interface exists to convert planned orders into production orders, to convert purchase requisitions into purchase orders, to release production orders and to confirm production upon completion. 528 Copyright. All rights reserved.

37 Lesson: Processing MRP Deployment Options and Architecture Figure 245: Deployment Options and Architecture Technically, there are two database deployment options: an integrated one with full deployment as part of Suite on SAP HANA (which is a prerequisite for MRP on SAP HANA), and a side-by side scenario of the SAP HANA database with a traditional database. The latter cannot be used for MRP on SAP HANA. Copyright. All rights reserved. 529

38 Unit 9: Plan to Produce Business Process in SAP S/4HANA APO on SAP HANA Figure 246: APO on SAP HANA MRP is the ERP side of Planning. APO has been migrated to SAP HANA and works side by side with ERP. Note that the APO role in the cloud still has to be determined. Figure 247: Running Materials Requirements Planning 530 Copyright. All rights reserved.

39 Lesson: Processing MRP You can execute the planning run at the following levels: Total planning for a plant You can execute a total planning run for several plants and MRP areas. Total planning for a plant encompasses all MRP-relevant materials for this plant, and includes the BOM explosion for materials with BOMs. Planning for an individual material You can execute a single-item planning run for a specific material (single-level) or for all BOM levels (multilevel). Interactive planning of a material is also possible. From the MRP menu, you can execute total planning online or as a background job. To execute the total planning run as a background job, select a report variant to restrict it to the relevant plant and schedule the job. You can use a user exit to restrict the total planning run to materials that fulfill certain freely definable criteria. For example, you can select all materials for which a particular MRP controller is responsible. MRP Control Parameters Figure 248: MRP Control Parameters The following control parameters for MRP are required when you start a planning run: Processing Key You can define the planning type as regenerative planning or net change planning within the total horizon or within the planning horizon only. Create Purchase Requisition and Scheduling Agreement Schedule Lines Copyright. All rights reserved. 531

40 Unit 9: Plan to Produce Business Process in SAP S/4HANA You can determine whether or in which period purchase requisitions and schedule lines are required as a result of the planning run. These indicators are only relevant for externally procured materials. Create MRP List You determine whether the planning run is to create MRP lists. It is possible to have the system create MRP lists only when certain exception messages are issued. You define the exception messages that are to trigger the generation of an MRP list in the Define and Group Exception Messages activity in Customizing. Planning mode You determine whether the existing planning data is adjusted and the BOMs and task lists reexploded or whether planning is started again from scratch. You can set the creation checkbox in the MRP group for purchase requisitions, scheduling agreement, schedule lines, and MRP lists. The materials assigned to this MRP group are then planned accordingly in the total planning run. Scope of Planning Run Figure 249: Scope of Planning Run With regenerative planning, the system plans all materials in a plant. This is useful for the first planning run and during day-to-day plant operations when data consistency cannot be guaranteed due to technical errors. Due to certain circumstances, such as goods issues, new sales orders, and changes to the BOM structure, it is recommended (particularly with a large number of materials) to execute MRP for only those materials to which MRP-relevant changes have been made. Because of its short runtime, net change planning, which is used to plan only these materials, allows you to execute the planning run at short intervals, yielding the most current planning result. 532 Copyright. All rights reserved.

41 Lesson: Processing MRP With net change planning in the planning horizon, the system only takes into account changes that are within the planning horizon, and only plans materials to which MRP-relevant changes have been made within the planning horizon. In addition, the materials are only planned within this horizon. You can set the planning horizon as a plant or MRP group parameter in MRP Customizing. The planning horizon must at least include the time period in which sales orders are received, the delivery times, and total lead times for the material. You specify the type of planning to be used in the Processing Key field on the initial screen. With single-item planning, you can decide between net change planning (NETCH) and net change planning in the planning horizon (NETPL). With total planning, in addition to NETCH and NETPL, you can select the NEUPL key to determine that all materials in the planning file are to be planned. Stock Requirements List Figure 250: Stock Requirements List The current stock requirements list is a dynamic list that shows the current levels of stock, requirements, and receipts. Changes are visible immediately when the current stock/ requirements list is called, or when the elements in the list display are read from the database using the Refresh function. The MRP list displays the result of the last planning run and is, therefore, static. Changes made after the planning run do not display. You can determine whether an MRP list is to be created during the planning run. The current stock/requirements and MRP list have the same basic structure. Additional similarities between the current stock/requirements and MRP list are as follows: The worklist of the MRP controller is in the form of a tree, on the left (optional). Copyright. All rights reserved. 533

42 Unit 9: Plan to Produce Business Process in SAP S/4HANA The header with the material number is above the list. More information displays above the header details. The list contains the individual MRP elements and the corresponding available quantities. Functions of the Stock Requirements List Figure 251: Functions of the Stock Requirements List 534 Copyright. All rights reserved.

43 Unit 9 Exercise Process an MRP Run Business Example After the changes to the planned independent requirements you need to schedule a MRP run. The MRP run should be done upon the finished product and include all components including your new lock. The MRP run should be a regenerative run and should be scheduled immediately. After the MRP run you check the log and see whether the requirements are fulfilled and the problems solved. In this exercise, when the values include ##, replace ## with the number your instructor assigned to you. 1. Run an MRP run. Schedule it to run immediately as a regenerative run. Plan your finished material T-F1## in plant 1010 and include all BOM components during the run. Name the Job with your user TS410-##. Use the following information: Field Job Template Job Description Value Material Requirements Planning (Default) TS410-## Plant 1010 Material BOM Components Regenerative run T-F1## Selected Selected Planning Mode 3 Start immediately Selected 2. Check the log of the MRP run. Use the Display MRP Key Figures app. How many materials have been planned? Copyright. All rights reserved. 535

44 Unit 9 Solution Process an MRP Run Business Example After the changes to the planned independent requirements you need to schedule a MRP run. The MRP run should be done upon the finished product and include all components including your new lock. The MRP run should be a regenerative run and should be scheduled immediately. After the MRP run you check the log and see whether the requirements are fulfilled and the problems solved. In this exercise, when the values include ##, replace ## with the number your instructor assigned to you. 1. Run an MRP run. Schedule it to run immediately as a regenerative run. Plan your finished material T-F1## in plant 1010 and include all BOM components during the run. Name the Job with your user TS410-##. Use the following information: Field Job Template Job Description Value Material Requirements Planning (Default) TS410-## Plant 1010 Material BOM Components Regenerative run T-F1## Selected Selected Planning Mode 3 Start immediately Selected a) On the Launchpad, choose the Schedule MRP Runs tile. b) In the overview of the scheduled jobs, choose New. c) On the Initial Screen New Job Material Requirements planning: Initial screen, in the Job Details section, enter the values provided in the table for Job Template and Job Description. d) In the Planning Scope section, enter the values provided in the table for Plant and Material. 536 Copyright. All rights reserved.

45 Lesson: Processing MRP e) In the Also to be Included in Planning section, select the BOM Components checkbox. f) In the Control Parameters section, select the Regenerative run checkbox, and, in the Planning Mode field, enter 3. g) Choose Schedule. You are back in the Job Overview. h) In the Job Overview, choose Go until the status changes to Finished. i) Choose Log Information. j) Leave the application and go back to the Launchpad. 2. Check the log of the MRP run. Use the Display MRP Key Figures app. a) On the Launchpad, choose the Display MRP Figures tile. b) In Display MRP Key Figures, select your MRP run and display the detailed information. c) Choose your entry. d) Note how many materials have been planned. e) Go back to the Launchpad. How many materials have been planned? Copyright. All rights reserved. 537

46 Unit 9: Plan to Produce Business Process in SAP S/4HANA 538 Copyright. All rights reserved.

47 Unit 9 Exercise Monitor Material Coverage Business Example After the MRP run, you want to check the result and the procurement proposals. You need to check whether planned orders have been created for your finished product and whether purchase requisitions have been created for the lock. For the finished product (T-F1##) you want to use the Monitor Material Coverage app. For the lock (T-R9##) you want to use the old stock / requirement list. In this exercise, when the values include ##, replace ## with the number your instructor assigned to you. 1. Check whether all of the requirements for the finished product been fulfilled. Write down the first four planned orders that have been created to fulfill the planned independent requirements Order 1 Order 2 Order 3 Order 4 Date MRP Element Quantity 2. Check the proposals for the lock (Material T-R9##) using the old stock requirement list. Use the following information: Field Material Value T-R9## Plant 1010 What has happened to your lock? 3. Are there purchase requisitions to fulfill the requirements for the lock? Write down the MRP element data for the purchase requisitions. Copyright. All rights reserved. 539

48 Unit 9: Plan to Produce Business Process in SAP S/4HANA Purchase Requisition 1 Purchase Requisition 2 Purchase Requisition 3 Date MRP Element Quantity 4. Go back to the Launchpad. 540 Copyright. All rights reserved.

49 Unit 9 Solution Monitor Material Coverage Business Example After the MRP run, you want to check the result and the procurement proposals. You need to check whether planned orders have been created for your finished product and whether purchase requisitions have been created for the lock. For the finished product (T-F1##) you want to use the Monitor Material Coverage app. For the lock (T-R9##) you want to use the old stock / requirement list. In this exercise, when the values include ##, replace ## with the number your instructor assigned to you. 1. Check whether all of the requirements for the finished product been fulfilled. Write down the first four planned orders that have been created to fulfill the planned independent requirements a) To check the proposal for the finished product on the Launchpad, choose the Monitor Material Coverage tile. b) In the material list, select the material T-F1## and choose Manage Materials. c) Write down the first four planned orders that have been created to fulfill the planned independent requirements in the table. d) When all your requirements are fulfilled, go back to the Launchpad. Order 1 Order 2 Order 3 Order 4 Date MRP Element Quantity 2. Check the proposals for the lock (Material T-R9##) using the old stock requirement list. Use the following information: Field Material Value T-R9## Copyright. All rights reserved. 541

50 Unit 9: Plan to Produce Business Process in SAP S/4HANA Field Value Plant 1010 a) On the Launchpad, choose the Monitor Stock / Requirements List tile. b) In the Stock / Requirement Lis: Initial screen, enter the data provided in the table. c) Press Enter. What has happened to your lock? [Correct answer] 3. Are there purchase requisitions to fulfill the requirements for the lock? Write down the MRP element data for the purchase requisitions. Purchase Requisition 1 Purchase Requisition 2 Purchase Requisition 3 Date MRP Element Quantity 4. Go back to the Launchpad. 542 Copyright. All rights reserved.

51 Lesson: Processing MRP LESSON SUMMARY You should now be able to: Process MRP Copyright. All rights reserved. 543

52 Unit 9 Lesson Advanced Planning LESSON OBJECTIVES After completing this lesson, you will be able to: Perform advanced planning Production Planning and Detailed Scheduling (PP/DS) Figure 252: Production Planning and Detailed Scheduling - Overview In previous releases, Production Planning and Detailed Scheduling (PP/DS) was a part of SAP SCM APO. Now, it is fully integrated in SAP S/4HANA. To know more about difference between standalone PP/DS as a part of PP/DS and PP/DS as a part of SAP S/4HANA, refer to the Simplification List provided in SAP note Copyright. All rights reserved.

53 Lesson: Advanced Planning Figure 253: Objectives of Production Planning & Detailed Scheduling PP/DS is used for (finite) planning with exact times in the production plant for both in-house production and external procurement. PP/DS covers requirements by generating planned orders to plan in-house production, as well as purchase requisitions or schedule lines to plan external procurement. The advanced planning functions that are available in PP/DS may not be required for all materials. Typically, critical products that are usually manufactured using bottleneck resources are planned in PP/DS while less critical materials that are usually consumption-based purchasing materials are planned with MRP Live. You must carefully define the choice of materials to be planned in PP/DS. For example, you should plan all products in PP/DS that are produced on same resources. Otherwise, practical capacity planning may not be achieved. Planning in PP/DS has a wide range of benefits. Lead times can be reduced by optimizing order sequences. Precise planning enables you to reduce stocks, and simultaneously achieve improved delivery reliability. Advantages of planning with PP/DS The advantages of planning with PP/DS include the following: PP/DS plans with exact times in hours and minutes, even for dependent requirements A wide range of standard heuristics can be used for the flexible design of planning processes, including a bottom-up heuristic for bidirectional planning A multilevel view of material availability and capacity availability (pegging) is possible Enhanced options for capacity planning are available Optimization procedures to minimize setup times, setup costs, scheduling delays, alternative resource selection, and so on, are conducted within Detailed Scheduling (DS) Dynamic exception messages (Alerts) are created Dependent requirements and orders are created with exact times. Bidirectional planning Copyright. All rights reserved. 545

54 Unit 9: Plan to Produce Business Process in SAP S/4HANA If a planned order has been started in SAP ECC for a component in the past, planning switches to forward scheduling. However, the overlying planned order for the end product is not rescheduled. For example, you can use a bottom-up heuristic to ensure that the planned order for the finished product does not begin until the component has been completed. You can define resources as finite resources in the resource master. Order operations are only created at these resources if there is sufficient capacity to fulfill the order quantity by the indicated due date. If the available capacity is insufficient, the system searches for a new date by taking the capacity situation into account. Machine scheduling optimization Over time, orders having an order sequence that is not optimal may have been generated. Therefore, you can change the sequence and resource assignment of existing orders in the optimization run. Figure 254: Production Planning & Detailed Scheduling - Master Data The PP/DS master data objects are different from those master data objects in SAP S/4HANA. During master data transfer, the relevant SAP S/4HANA PP master data objects are mapped to the corresponding planning master data objects in PP/DS. The PP/DS master data for which no equivalent is present in SAP S/4HANA is created directly in PP/DS. The integration via Core Interface (CIF) enables data to be exchanged between an ERP system, that is, SAP ERP, SAP ERP Enterprise, or SAP ERP Central Component (SAP ECC) and a connected SCM system. On the SCM side, CIF is part of SCM Basis and can be used by all systems that contain SCM Basis. Core Interface (CIF) is also used to integrate master data of SAP S/4HANA into PP/DS, but it is much easier to maintain. 546 Copyright. All rights reserved.

55 Lesson: Advanced Planning Figure 255: Integration Model A CIF Integration Model is required only for plants, and is needed for few master data, such as location master data (plant, customer, vendor, and so on) and External Procurement Relationships, such as Purchasing Info Records, Contracts and Scheduling Agreements. A corresponding transportation lane has to exist to transfer products between two locations in the supply chain. For example, from a production plant to a distribution center. Transportation lanes are created from CIF for this purpose in PP/DS. You can define the material-specific information, such as the special procurement keys, for stock transfers in the material master. You can transfer special procurement keys and purchasing info records for the stock transfer between plants to the transportation lane in PP/DS as a productspecific entry. You can also transfer purchasing info records or outline agreements used to create price agreements and supply agreements with particular suppliers as external procurement relationships. Simultaneously, a product-specific entry is created in the corresponding transportation lane. Copyright. All rights reserved. 547

56 Unit 9: Plan to Produce Business Process in SAP S/4HANA Figure 256: Creating Products and Resources To integrate Materials to Products and Workcenters to Resources, select Advanced Planning in Material and Work Center master data. Figure 257: Workcenter and Resource During the transfer of an SAP S/4HANA work center to PP/DS, each capacity category is mapped to the requisite resources. The transfer is carried out and is recorded with the following naming convention. First, a W for work center is added to the work center number. This is followed by the plant number from which the work center originates and the capacity category. 548 Copyright. All rights reserved.

57 Lesson: Advanced Planning SAP S/4HANA work center capacities are transferred as single-activity or multi-activity resources in the production category. Figure 258: Production Data Structure A routing and BOM are used to describe production. For this reason, BOM components can be assigned to a certain operation. You can then plan the procurement of these materials at the beginning of the particular operation. Components are assigned in the routing. BOM components that are not explicitly assigned are considered to be assigned to the first operation. In addition to BOM components, you can also assign production resources or tools assigned in the routing. Production resources or tools are operating facilities that are not bound to location but are necessary for production, such as a measuring instrument or a support. You can create a Production Data Structure (PDS) in PP/DS from the SAP S/4HANA production version that determines the detailed information required for producing a product. Each PDS has one or more operations. Each operation includes one or more activities, the components consumed by the activity and the resources are used in sequence within the operation. Copyright. All rights reserved. 549

58 Unit 9: Plan to Produce Business Process in SAP S/4HANA Figure 259: Models and Versions in PP/DS The supply chain model in PP/DS represents the master data for the supply chain from the vendors to the customers through production and the distribution locations. The model is a grouping of locations, transportation lanes, products, resources, and PDS. The master data from the SAP S/4HANA system is automatically assigned to the active model (model 000) when it is transferred to PP/DS. The active model represents supply chains that the company uses. In this way, the entire transferred master data is automatically available for operational planning model 000. You must assign the master data that you create manually in PP/DS explicitly to one model. One version is uniquely assigned to a model and manages the transaction data for the master data of the model. However, only planning version 000 for active model 000 can exchange transaction data with the execution system. For simulation purposes, you can create additional versions for the model. In these versions, you can change specific master data and the entire transaction data. For example, you can increase planned independent requirements (PIRs) and plan production based on increased demand. You can copy models and planning versions using version management, or you can create them manually. However, they must be clearly marked so that no two planning versions indifferent models have the same name. For example, active planning version 000 only exists for model Copyright. All rights reserved.

59 Lesson: Advanced Planning Figure 260: Planning Methods If you set the Indicator for Advanced Planning, the MRP Live planning run will execute the maintained Product Heuristic in PP/DS. Figure 261: Production Planning - Horizon Within the PP/DS horizon, the key focus of PP is lot size-orientated planning in the sense of quantity-orientated requirements planning. The viability or feasibility of planning is only decided when capacities are dispatched by DS within a short-term time-frame in which production also normally takes place. In many cases, this is typically well above the planning time fence. The planning time fence distinguishes the quality planning responsibility area (Material Requirements Planning (MRP) functionality) from the actual DS area, as internal elements cannot Copyright. All rights reserved. 551

60 Unit 9: Plan to Produce Business Process in SAP S/4HANA be changed by using a requirements planning run, while detailed planning with respect to deadlines is still possible. PP utilizes background planning runs and interactive work tools, such as the product view with PP heuristics that perform a net requirements calculation and replicate the lot-size procedure. This planning is infinite and does not take into account any overloads on resources that may occur. DS can then take place using background planning runs or interactively, using the DS planning board. DS heuristics and the PP/DS optimizer are also provided here as automated help. If DS leads to feasible plans where PP has been fixed in advance, it might be necessary to replan, repeat PP using different constraints, or repeat DS, for instance. Figure 262: Main processes in PP/DS You can plan the production of a product in make-to-stock production. Various planning strategies are available. The demand program is determined in make-to-stock production using PIRs, and using existing sales orders, if necessary. You can cover requirements using finite or infinite planning. Different optimization procedures can be used as part of capacity planning. In Make-to-Order (MTO) production, each sales order is planned in a separate segment. In addition to in-house production, you can also plan external procurement. You can also execute automatic source determination based on costs. In addition, you can model scheduling agreement processing and subcontracting. Forecast consumption is a central function in PP/DS and ERP systems. It is an integral part of the PP/DS planning process. In a general sense, consumption is the comparison of two order types. One or more order types that represent actual requirements can then use up or consume another order type. More specifically in PP/DS planned independent requirements are consumed by other order types, such as sales orders, dependent demand, or transfer requests. The purpose of consumption is to ensure that requirements are not duplicated in the system and that the most detailed requirements are used. Forecasts and sales orders are for instance both requirements. Since a forecast is less specific than a sales order, it is reduced when other more specific requirements, such as sales orders, exist for the same product. In this way if both forecasts and sales orders are used to generate receipt elements, for example planned orders, the correct quantity is always generated. 552 Copyright. All rights reserved.

61 Lesson: Advanced Planning Figure 263: Simultaneous Quantity and Capacity Planning The following are the characteristics of infinite planning: Resources are not checked when a planned order is created. The planned order is created even when there is a capacity overload. DS heuristics (capacity planning) subsequently produce a feasible production plan. Final optimization of the plan is possible. If a resource planned with finite planning is already exhausted on the desired date, the system searches for a new date on which the planned order can be created. You use the strategy profile to define how the system has to schedule orders (find slot, conduct infinite planning, and so on). You define a resource planned with finite planning using the finite resource indicator in the workcenter master. Order operations are created for these resources only when there is sufficient capacity available for the order quantity on the order date. A strategy profile is maintained in Customizing. In heuristics, planning methods or PP/DS global settings, you define the profile that is to be used to plan planned orders. Copyright. All rights reserved. 553

62 Unit 9: Plan to Produce Business Process in SAP S/4HANA Figure 264: Multilevel Backward Scheduling in PP/DS If there is insufficient stock or receipt quantities to cover a requirement, the PP run generates a planned order. The PDS is exploded and dependent requirements are created for the assemblies. Planning at the next Bill of Material (BOM) level takes place in the same way. If there are insufficient stock or receipt quantities, planned orders are also created here. These, in turn, may have dependent requirements, and so on. When the lot size of the planned order has been determined and the PDS has been exploded, the dates of the planned orders are calculated in PP runs. The operation times in the PDS and any goods receipt-processing times maintained in the product master are taken into account. The dependent requirements dates are moved to the dates of operations belonging to the PDS. This allows for operation-specific and on-time material staging. The system assumes material staging based on the assignment of components to operations in the PDS. The dependent requirements date of the BOM components is set on the production start date of the operations to which they are assigned. 554 Copyright. All rights reserved.

63 Lesson: Advanced Planning Figure 265: Pegging in PP/DS: General Idea Dynamic pegging is a function in which the system automatically links requirements for a location product with suitable stocks or receipts for the location product. If planning for the location product changes, for example, if you have created new requirements or receipts or changed dates, the system can use dynamic pegging to create new dynamic pegging relationships that are adjusted to the changed planning. In general, dynamic pegging relationships are not maintained for long. Dynamic pegging relationships are evaluated by various PP/DS applications. For example, to analyze the planning situation, to identify planning problems, or to perform specific planning tasks. Therefore, these applications perform dynamic pegging automatically, if required. Various PP/DS heuristics process pegging relationships, depending on their planning task, and therefore perform dynamic pegging in the heuristic run. For example, based on pegging relationships, the heuristics for sales order oriented planning SAP_PP_014, SAP_PP_015 and SAP_PP_016, can determine open planned independent requirements that have no sales orders, and reduce these planned independent requirements and the dependent planned orders accordingly on a multilevel basis. When you use fixed pegging, the assignment of a sales order item to a receipt element remains stable. Moreover, the component assignments can be kept stable over multiple levels. In other words, components that are assigned to an order via fixed pegging cannot be consumed by other, competing orders. This means that it is easier to keep the confirmation date that you have given to your customer. Copyright. All rights reserved. 555

64 Unit 9: Plan to Produce Business Process in SAP S/4HANA Figure 266: Pegging in PP/DS: Pegging Across the Entire BOM Structure A requirement element of an order can be linked with a receipt element or stock element of another order through a fixed or a dynamic pegging relationship. A planned order that requires a certain component can, for example, be linked with a purchase requisition for the component in external procurement. it can also be linked with a planned order for the component in in-house production. You may wish to consider the pegging relationships, if an order or an activity from an order is being scheduled or rescheduled. That is, the system must schedule or reschedule in a way that no requirement dates are violated. This can mean that the system has to schedule or reschedule objects that have pegging relationships accordingly. As a result, date values or date changes must, therefore, be propagated to the dependent objects. Figure 267: Complete Production Planning Process - Example 556 Copyright. All rights reserved.

65 Lesson: Advanced Planning You use PP planning procedures to specify which planning action the system executes for each product, if a planning-relevant event occurs for a product. For example, the system can automatically plan the product or write a planning file entry for the product when there is a change in requirement. You use the production planning run to execute heuristics, detailed scheduling functions, or optimization for a large number of objects online or as a background job. During the production planning run, several heuristics or functions can be executed one after the other. In a production planning run, you execute procurement planning in particular for products with planning file entries (net change planning). You can use interactive planning for important products that you wish to plan manually or to solve any planning problems that have arisen during automatic planning. Various tools are available for interactive planning, such as the detailed scheduling planning board or the product planning table. Detailed Scheduling occurs automatically on the resources, taking various planning conditions into account (such as the component or resource availability). Using the optimization tool, you can optimize the resource schedule according to certain criteria, such as setup times and setup costs, to improve the planning situation and solve particular detailed scheduling problems. PP/DS uses pegging to create relationships between the stock, receipt, and requirements elements of a product within a location. Based on these relationships, the system can identify quantity and date or time problems and forward date or time changes to other BOM levels. In the PP run, you can define several sequential processing steps for which the system executes various heuristics for the defined objects. You can define which objects need to be processed using which heuristics. The objects must be compatible with the selected heuristic. For example, PP heuristics can only be used to plan products. You can execute several heuristics in sequence. Heuristics such as optimization or scheduling can then be executed after a PP run. New orders in PP/DS are created through infinite planning using the SAP_MRP_001 heuristic. You make the relevant basic settings for this planning by using the strategy profile in PP/DS Customizing. Capacities are not checked in infinite PP. Planned orders are created on time, regardless of the capacity load with the defined lot-sizing procedure. Capacity planning takes place in a second step using special DS heuristics or optimization. You can automatically carry out all of the steps in the background in a PP run. The stage-numbering algorithm for determining the low-level codes must be used regularly to ensure consistent planning. It can be planned at the beginning of planning or separately (for example, weekly). Normal requirements planning (infinite planning) is carried out using heuristic SAP_MRP_001. You can then reschedule from the component level up (bottom up) to dissolve backlogs due to scheduling durations and to propagate delays to the final product. You can carry out the finite capacity planning step using the SAP001 DS heuristic schedule sequence. It usually relates to bottleneck resources (the assembly in our example) for which an exact scheduling sequence can be specified. You can fix orders to resources and date shifts propagated to the BOM structure using bottom-up planning (for the finished product) or topdown planning (for components). Copyright. All rights reserved. 557

66 Unit 9: Plan to Produce Business Process in SAP S/4HANA Alternatively, you can carry out capacity planning with the optimizer. For example, when many bottleneck resources or complex setup matrixes exist. When a planned order is created during finite planning, the availability of the capacities and components that are required for production is checked. You can create the planned order only when sufficient capacity is available. If there is no available capacity at the desired time, you can create the planned order later, if necessary, when capacity is available and this delay is indicated by a corresponding alert. You can also improve this production plan in a subsequent step using DS heuristics or optimization. For example, you could use this optimization to reduce the setup time, lead time, and delays resulting from the original schedule. A PP/DS planned order is finitely planned using Detailed Scheduling (DS); that is, it contains all operation dates. Procurement of the required components is also planned specifically for each operation. Figure 268: Production View: Pump The planning situation for a product in a certain location can be evaluated using the PP/DS product view. The Product View is a versatile and flexible tool that you can use to execute a range of functions where you can display and change individual MRP elements, plan interactively, access the alert monitor, and so on. The upper part of the Product View screen contains a header with a product number. On the left, there is an (optional) overview tree, while the list itself with the individual MRP elements and the corresponding available elements is displayed in the lower part of the screen. Additional tab pages provide more information. User-specific settings allow you to adjust the display to suit your needs. The product view is a dynamic list. For example, you can execute interactive planning, and as soon as you have saved the result, the new situation is then displayed. It is also possible to refresh the list, if after some time you need to display the current planning status. 558 Copyright. All rights reserved.

67 Lesson: Advanced Planning Figure 269: PP/DS Planned Orders If a strategy that envisages finite planning is used to plan a planned order, simultaneous quantity, and capacity planning takes place at the planned order level. The availability of the capacities required for production is thus automatically guaranteed. With infinite planning, capacity planning takes place at a later stage. Copyright. All rights reserved. 559

68 Unit 9: Plan to Produce Business Process in SAP S/4HANA Figure 270: PP/DS Areas The schedule is displayed graphically in the detailed scheduling planning board. The planning board is used for interactive planning. For example, the planning board is used for interactive processing of operations to resources and for dealing with alerts. You can call the planning board directly from the PP/DS menu or from order processing. You can choose your own preferred layout for the planning board. For example, you can determine that different charts, such as the resources and order charts, are displayed and specify the field selection and arrangement for the columns in the table section of the chart. You can map the objects that are displayed in the diagram section of the chart, such as operations and orders (graphical objects), histograms (curves for warehouse stock and resource loads), network views of operations and orders, and the time and pegging relationships between operations and orders. 560 Copyright. All rights reserved.

69 Lesson: Advanced Planning Figure 271: Optimization Using Setup Times As an alternative to planning with DS heuristics, you can optimize capacity planning in the production plan. For example, you can optimize the scheduling of single resources, based on the total setup time and the total setup costs. The system determines sequence-dependent setup times and setup costs from the setup matrix (which can only be maintained for single resources). You can use the objective function to determine the objective of optimization. Various objective functions, such as minimization of costs and delays, are available. In the example shown in the figure, Optimization Using Setup Times, the objective function is the total of the setup times. The setup times or setup costs are derived from the setup matrix for the objective functions. The setup time in the setup matrix can be any time unit, such as hours or minutes. The system uses seconds for the setup duration in the objective function. For example, if you enter a setup time of 10 minutes, the system uses the value 600 (seconds) in the objective function. Setup costs can also be entered in the setup matrix. Setup costs have no units. In the objective function, the system uses the value that has been entered in the setup matrix. Copyright. All rights reserved. 561

70 Unit 9: Plan to Produce Business Process in SAP S/4HANA Figure 272: PP/DS Orders PP/DS planned orders can be transferred to SAP S/4HANA PP. However, the corresponding SAP S/4HANA PP planned orders contain no operation dates. Instead, they contain the basic dates between which production should take place. In addition, they contain the dependent requirements for PP/DS and non-pp/ds components. You can plan the procurement of the components in SAP S/4HANA based on the dependent requirements. If PP is to take place in PP/DS, you convert the planned orders in PP/DS into production orders. The only difference between a PP/DS production order and SAP S/4HANA PP planned order is the conversion indicator. If you set the conversion indicator in PP/DS, a corresponding SAP S/ 4HANA production order is created. This order contains the production dates that have been determined in PP/DS. Like every SAP S/4HANA PP production order, it also contains all the functions required to execute production in SAP ECC printing of order documents, confirmations, and so on. 562 Copyright. All rights reserved.

71 Lesson: Advanced Planning Figure 273: Alert Monitor The Alert Monitor is a monitoring component that provides a single point of access to problems in PP/DS. The Alert Monitor informs you of exceptions. Any situation that has to be adjusted in planning is given as an alert. It is possible to send alerts by mail. The appearance of alerts depends on the context and is defined in the alert profiles. The display of alerts also depends on the version or the model. Alerts are automatically available in the Alert Monitor and are displayed in a standard presentation component. You can access the PP/DS alert object by carrying out a drill-down in the relevant application. Alerts are assigned different priority levels and are issued as one of the following types: information, warning, or error. Alert types are assigned automatically to a specific priority level, but can be changed in customizing to level 2 or 1. You can also set threshold values in the alert profiles. Alerts depend on the planning version. You can define standard alert types or your own alert types for every problem and you can prioritize alert types as the following: Information Warnings Errors You can also set threshold values in the alert types. You can nominate (time-dependent) substitutes for all your Favorites. This substitute can access the Alert Monitor and choose between their Favorites or your Favorites they are replacing (using Adopt Substitute in the Alert Monitor). Using the Alert Notification Engine from basis, you can automatically send alerts using the workflow. The Alert Notification Engine uses the functions from SAP NetWeaver Application Server 6.20 for this purpose. The type of notification is defined as using the notification profile and alert notification profile (settings for the Alert Notification Engine). Copyright. All rights reserved. 563

72 Unit 9: Plan to Produce Business Process in SAP S/4HANA Figure 274: Set up the Alert Monitor You can define which alerts the planner receives in the alert profiles. The alerts are displayed on the basis of an overall profile, which contains all the relevant selection conditions. You can define the overall profile by entering the following data: Selection of alert types Object selection variants Priority variants prioritized according to key figures such as Error, Warning, Information, and Ignore. User-specific alert profiles in various settings, such as the product view, product planning table, detailed scheduling planning board, and Supply Chain Cockpit. When you directly access the Alert Monitor, the overall profiles that you have assigned to your Favorites, or for which you are acting as a substitute, are available for selection. Alert Monitor profiles include the following: The planning version you wish to evaluate Period (relative or absolute) Application specific alert profiles You can use the Alert Monitor profile to select the objects for which alerts are to be displayed in the Alert Monitor. The Alert Monitor profile, therefore, filters the display of alerts. This enables you to maintain a user-specific selection of alerts for your task area. 564 Copyright. All rights reserved.