Gain Experience with SAP S/4HANA – Logistics

Unit 4: Production Planning with Demand

Simulation and Finite Scheduling
Production planning with demand simulation and finite scheduling
Question 1

How do you manage

production planning from
future demand scenarios to a
feasible resource schedule in
SAP S/4HANA?

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Production planning with demand simulation and finite scheduling
Process overview

Requirements Material Requirements Advanced Planning

Predictive MRP
Management Planning (MRP) (embedded PP/DS)

Forecast and Customer Simulation of Forecast Create / Adjust Detailed Scheduling

Requirements Scenarios
▪ Planned independent requirements ▪ Simulate and evaluate different
(forecast), which can be assigned to forecast scenarios considering
active or inactive scenarios − Capacity constraints
▪ Customer requirements (sales − Flexible constraints on material
orders, schedule lines) and supplier
▪ All requirements relevant to MRP − Delivery performance
are considered by MRP and ▪ Adjust forecast and capacity in
embedded PP/DS. simulation mode
▪ Multilevel across all BOM levels
▪ Release scenario to productive
environment
Procurement Proposals
▪ Check material availability and create
planned orders or purchase
requisitions in case of material
shortage
▪ Flexible selection criteria including
stock transfers
▪ Monitoring of the stock/requirement
situation
▪ MRP Live considers materials for
both SAP S/4HANA and Advanced
Planning
▪ Nearly all APO PP/DS functionalities
have been integrated into
SAP S/4HANA
▪ New functionalities in SAP S/4HANA
▪ Interactive and automatic planning
tools to create a feasible production
plan.
▪ Planning boards, optimizer and
heuristics are available.
▪ Special planning functionalities like
campaign planning, block planning,
tank planning …

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Production planning with demand simulation and finite scheduling
Question 2

How can SAP S/4HANA

support you to identify potential
capacity and
component issues for future
demand scenarios and
evaluate possible solutions?

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Production planning with demand simulation and finite scheduling
Predictive MRP – simulate and evaluate forecast scenarios

Mid and long-term

simulation

Simplified propagation
across all BOM levels

Clickable simulative KPIs PIR Update

Issue lists
Solution proposals
MRP Live DDMRP
Simulation for all levels
Simulative adjustment of
available capacities

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Production planning with demand simulation and finite scheduling
System demo

System demo
SAP Fiori apps for predictive material and resource planning (pMRP)

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Production planning with demand simulation and finite scheduling
Question 3

How does MRP Live ensure

material availability?

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Production planning with demand simulation and finite scheduling
MRP Live: accelerated material requirements planning

MRP Run MRP Analysis

MRP Live

Performance improvement with SAP S/4HANA System analyzes the material flow of all materials in real time
» Based on traditional MRP concepts and identifies:

» New MRP run algorithm, leveraging SAP HANA capabilities » Use the MRP cockpit (on SAP Fiori)
for parallelization » Monitoring of the stock/requirement situation to cover product
» Scenario-dependent up to 10 times faster / requirements
data storage reduction by 5 times » Disruptions in the material flow and their impact
» Solution proposals for decision support
» Role-based KPI-driven entry

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Production planning with demand simulation and finite scheduling
Question 4

Which features are available

for detailed scheduling of
production resources in SAP
S/4HANA?

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Production planning with demand simulation and finite scheduling
Advanced planning: production planning / detailed scheduling

Production Planning Detailed Scheduling

PPDS

Create a feasible production plan considering capacity load Analyze the current material and capacity situation based on
and constraints. real-time information and comprehensive planning features in
PP/DS on SAP S/4HANA
Material Availability Alternative Resources
Network Transparency Alternative Plants

Capacity Load
Tank Resource
Lead Time

Setup Time /
Shelf Life
Costs Priorities

Breakdown Backlog Campaign Planning

Handling Block Planning

Continuous Input /
Production Layout
Output

Bottlenecks Optimization

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Production planning with demand simulation and finite scheduling
Opportunities / challenges valid in your organization?

Material Availability
Production Layout Shelf Life
Network Transparency

Capacity Load Campaign Planning

Bottlenecks
Lead Time Block Planning

Setup Time / Alternative Resources Continuous Input /

Costs Priorities Alternative Plants Output

Breakdown Backlog
Tank Resource Optimization
Handling

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Production planning with demand simulation and finite scheduling
System demo

System demo
SAP Fiori apps for Production Planning and Detailed Scheduling

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Production planning with demand simulation and finite scheduling
Key takeaways

▪ pMRP for a mid/long-term demand scenario simulation for

capacity, production, purchasing, and internal material flow
in production plants on detailed level across all levels.
▪ MRP Live to ensure material availability with automatic
creation of procurement proposals for purchasing and
production. Tools for monitoring the stock/requirement
situation.
▪ Production Planning and Detailed Scheduling (PP/DS) to
schedule and sequence orders considering constraints such
as resource and component availability, setup times,
priorities.
▪ Production Planning and Scheduling in one system:
SAP S/4HANA.

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