SOP through Long Term Planning Transfer to LIS/PIS/Capacity

SAP Best Practices Baseline Package (France)

SAP Best Practices

Scenario Overview 1
Purpose and Benefits:
Purpose

Check if the budgeted sales quantities can be produced, assess material requirements and utilization of the manufacturing cost centers.

Benefits

Avoid bottlenecks, over- and under-absorption in production. Material requirements planning as a basis for purchasing contracts.

Key process flows covered

Create sales plan and transfer to SOP (Sales and Operations Planning). Rough matching of budgeted sales quantities and production resources in SOP. Create planning scenario in Long Term Planning to simulate production planning for the budgeted sales quantities. Based on simulated production and operative production data (bills of material, routings), work center capacity and material requirements are calculated. Use material requirements for AOP purchase material price planning. Use work centers capacity in AOP general cost center planning.

Scenario Overview 2
SAP Applications Required:
Required

EHP3 for SAP ERP 6.0 Revenue Planner Logistics Planner

Company roles involved in process flows

Scenario Overview 3
Detailed Process Description:
AOP SOP through Long Term Planning Transfer to LIS/PIS/Capacity

Please refer to specification 172 AOP - Sales Quantity Budget and Transfer to SOP for all steps concerning the planning of sales quantities. The current specification starts with the transfer of confirmed sales quantities to Sales and Operations Planning (SOP). In SOP rough cut capacity planning is carried out in order to verify whether the goods planned to be sold can run through the companys bottleneck resources needed for production. After the production plan has been proven feasible by SOP, it is passed on to a planning scenario in Long Term Planning module (LTP). In LTP, planned independent requirements (PIR) are created. Based on these PIRs, Materials Requirements Planning (MRP) is simulated to create and review planned requirements for all the materials (components, raw materials) and resources. Simulation of MRP also allows review of capacities of the plants. Capacity leveling can then be carried out to smooth out the bottlenecks. After having run MRP as described above, one of the key objectives of the logistics part of AOP is achieved: calculate the total utilization of the activity types assigned to the manufacturing work centers needed to produce the budgeted sales quantities. The utilization is based on the consumption of activity types indicated in the routings of the (semi finished and finished) products of the production plan.

Process Flow Diagram

SOP through Long Term Planning Transfer to LIS/PIS/Capacity

Event

Annual Operating Plan

AOP Standard Cost Calculation (178)

AOP Manufacturing Cost Center Planning (176)

AOP Purchased Material Price Planning (174)

Revenue Planner

AOP - Sales Quantity Budget and Transfer to SOP (172)

Yes

Logistics Planner

Operative Production Data

SOP Verification

Transfer to Inactive Demand Management

LTP

LTP MRP

Capacity Planning

Accepta ble Plan?

No

AOP= Annual Operating Planning

LTP= Long Term Planning

SOP= Sales and Operations Planning MRP= Materials Requirements Planning

Legend
Symbol Description Usage Comments
Role band contains tasks common to that role.

Symbol

Description

Usage Comments

<Function>

Band: Identifies a user role, such as Accounts Payable Clerk or Sales Representative. This band can also identify an organization unit or group, rather than a specific role. The other process flow symbols in this table go into these rows. You have as many rows as required to cover all of the roles in the scenario. External Events: Contains events that start or end the scenario, or influence the course of events in the scenario.

Diagram Connection

To next / From last Diagram: Leads to the next / previous page of the Diagram

Flow chart continues on the next / previous page

Hardcopy / Document

Hardcopy / Document: Identifies a printed document, report, or form

External to SAP

Does not correspond to a task step in a document; instead, it is used to reflect a document generated by a task step; this shape does not have any outgoing flow lines

Flow line (solid): Line indicates the normal sequence of steps and direction of flow in the scenario. Flow line (dashed): Line indicates flow to infrequentlyused or conditional tasks in a scenario. Line can also lead to documents involved in the process flow. Business Activity / Event: Identifies an action that either leads into or out of the scenario, or an outside Process that happens during the scenario

Connects two tasks in a scenario process or a non-step event

Financial Actuals: Indicates a financial posting document

Financial Actuals

Does not correspond to a task step in a document; instead, it is used to reflect a document generated by a task step; this shape does not have any outgoing flow lines

Business Activity / Event

Does not correspond to a task step in the document

Budget Planning: Indicates a budget planning document

Budget Planning

Does not correspond to a task step in a document; instead, it is used to reflect a document generated by a task step; this shape does not have any outgoing flow lines

Unit Process: Identifies a task that is covered in a step-by-step manner in the scenario

Corresponds to a task step in the document

Manual Process: Covers a task that is manually done

Unit Process

Manual Proces s
Process Reference: If the scenario references another scenario in total, put the scenario number and name here. Corresponds to a task step in the document

Does not generally correspond to a task step in a document; instead, it is used to reflect a task that is manually performed, such as unloading a truck in the warehouse, which affects the process flow. Does not generally correspond to a task step in a document; instead, this shape reflects data coming from an external source; this step does not have any incoming flow lines

Process Reference

SubProcess Reference

Sub-Process Reference: If the scenario references another scenario in part, put the scenario number, name, and the step numbers from that scenario here

Corresponds to a task step in the document

Existing Version / Data

Existing Version / Data: This block covers data that feeds in from an external process

Proces s Decisio n

Process Decision: Identifies a decision / branching point, signifying a choice to be made by the end user. Lines represent different choices emerging from different parts of the diamond.

Does not usually correspond to a task step in the document; Reflects a choice to be made after step execution

System Pass/F ail Decisio n

System Pass / Fail Decision: This block covers an automatic decision made by the software

Does not generally correspond to a task step in the document; instead it is used to reflect an automatic decision by the system that is made after a step has been executed.